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PRINTER'S NO. 2137
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1735
Session of
2025
INTRODUCED BY A. BROWN, GUZMAN AND MADDEN, JULY 14, 2025
REFERRED TO COMMITTEE ON HEALTH, JULY 16, 2025
AN ACT
Providing for cannabis; regulating the personal use and
possession of cannabis; establishing the Cannabis Control
Board; providing for powers and duties of the Cannabis
Control Board; establishing the Cannabis Regulation Fund;
providing for disproportionately impacted area, for
regulation of cannabis business establishments, for
enforcement and immunities, for laboratory testing, for
advertising, marketing, packaging and labeling and for
preparation, destruction and regulation of cannabis, edible
and infused products; imposing a sales tax and excise tax on
cannabis, edible and infused products; providing for cannabis
clean slate and for miscellaneous provisions; imposing
penalties; consolidating provisions relating to medical use
of cannabis; transferring powers and duties of the Department
of Health to the Cannabis Control Board; and making repeals.
TABLE OF CONTENTS
Chapter 1. Preliminary Provisions
Section 101. Short title.
Section 102. Definitions.
Chapter 2. Cannabis
Subchapter A. Cannabis Control Board
Section 201. Establishment of board.
Section 202. Code of conduct.
Section 203. Applicability of other statutes.
Section 204. Board meetings.
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Section 205. Board records.
Section 206. Regulations.
Section 207. Powers and duties of board.
Section 208. Confidentiality and public disclosure.
Section 209. Unauthorized activities and civil penalties.
Section 210. Cannabis Regulation Fund.
Section 211. Report of board.
Section 212. Authority.
Section 213. Transfer of authority.
Subchapter B. (Reserved)
Subchapter C. Lawful Use of Cannabis
Section 221. Lawful use of cannabis.
Section 222. Possession limits.
Section 223. Individuals younger than 21 years of age.
Section 224. Identification.
Section 225. Immunities and presumptions related to use of
cannabis by purchasers, patients and caregivers.
Section 226. Discrimination prohibited.
Section 227. Limitations.
Section 228. Employment and employer liability.
Subchapter D. (Reserved)
Subchapter E. Disproportionately Impacted Area and Small
Business
Section 241. Disproportionately impacted area and small
business.
Section 242. Grants and loans to disproportionately impacted
area and small business applicants.
Section 243. Transfer of permit awarded to qualified
disproportionately impacted area or small business
applicant.
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Subchapter F. Regulation of Cannabis Business Establishments
Section 251. Permit required.
Section 252. Authorization of current medical cannabis
organizations to commence dispensing cannabis to
purchasers.
Section 253. Issuance of dispensary permits to qualified
applicants in disproportionately impacted area.
Section 253.1. Issuance of small business dispensary permits.
Section 254. New dispensing organization permits.
Section 255. Selection criteria for new dispensing organization
permits.
Section 256. Dispensing organization operational requirements
and prohibitions.
Section 257. Dispensing cannabis.
Section 258. Agent-in-charge.
Section 258.1. Seed-to-sale tracking system.
Section 258.2. Storage requirements.
Section 258.3. Destruction and disposal of cannabis.
Section 258.4. Security measures.
Section 258.5. Recordkeeping.
Section 258.6. Issuance of cultivation center permits.
Section 258.7. Issuance of cultivation center permits to current
medical cannabis grower/processor permit holders.
Section 258.8. New cultivation center permits.
Section 258.9. Cultivation center requirements and prohibitions.
Section 258.10. Issuance of micro cultivation center permits.
Section 258.11. Micro cultivation center permit applications.
Section 258.12. Selection criteria for micro cultivation center
permits.
Section 258.13. Issuance of additional micro cultivation
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permits.
Section 258.14. Micro cultivation center requirements and
prohibitions.
Section 258.15. Cannabis business establishment agent
identification cards.
Section 258.16. Background check for cannabis business
establishment applicants.
Section 258.17. Renewal of cannabis business establishment
permits and cannabis business establishment agent
identification cards.
Section 258.18. Warehousing and distribution permits.
Section 259. Prices.
Subchapter G. Enforcements and Immunities
Section 261. Permit discipline.
Section 262. Immunities and presumptions relating to handling
of cannabis by cannabis business establishments and
agents.
Section 263. Commonwealth standards and requirements.
Section 264. Violation of tax acts and refusal, revocation or
suspension of permit or agent identification card.
Subchapter H. Laboratory Testing
Section 271. Laboratory testing requirements and prohibitions.
Subchapter I. Advertising, Marketing, Packaging and Labeling
Section 281. Advertising and promotions.
Section 282. Edible and non-edible infused product packaging
and labeling.
Subchapter J. Preparation, Destruction and Regulation of
Cannabis, Edible and Non-edible Infused Products
Section 291. Preparation of edible and non-edible infused
products.
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Section 292. Destruction of cannabis.
Section 293. Local ordinances.
Section 294. Confidentiality.
Section 295. Financial institutions.
Section 296. Contracts enforceable.
Section 297. Medical cannabis.
Subchapter K. Taxes
Section 299.1. Imposition of sales tax and excise tax.
Section 299.2. Administration of taxes and distribution of
revenue.
Section 299.3. (Reserved).
Subchapter L. Cannabis Clean Slate
Section 299.11. Cannabis clean slate.
Subchapter M. Miscellaneous Provisions
Section 299.21. Conflicts.
Section 299.22. (Reserved).
Section 299.23. Implementation.
Chapter 3. Medical Use of Cannabis
Subchapter A. Preliminary Provisions
Section 301. Scope of chapter.
Section 302. Declaration of policy.
Section 303. (Reserved).
Subchapter B. Program
Section 311. Program established.
Section 312. (Reserved).
Section 313. Lawful use of medical cannabis by patients.
Section 314. (Reserved).
Subchapter C. Practitioners
Section 321. Practitioner registration.
Section 322. Practitioner restrictions.
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Section 323. Issuance of certification.
Section 324. Certification form.
Section 325. Duration.
Subchapter D. Patients
Section 331. Identification cards.
Section 332. Caregivers.
Section 333. Notice.
Section 334. Verification.
Section 335. Special conditions.
Section 336. (Reserved).
Section 337. Minors.
Section 338. Caregiver authorization and limitations.
Section 339. Contents of identification card.
Section 339.1. Suspension.
Section 339.2. Prohibitions.
Subchapter E. (Reserved)
Subchapter F. (Reserved)
Subchapter G. Dispensaries
Section 361. Dispensing to patients and caregivers.
Section 362. Facility requirements.
Section 363. Posting.
Subchapter H. (Reserved)
Subchapter I. (Reserved)
Subchapter J. (Reserved)
Subchapter K. Offenses Related to Patients, Caregivers and
Providers
Section 393.1. Criminal diversion of medical cannabis by
practitioners.
Section 393.2. (Reserved).
Section 393.3. (Reserved).
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Section 393.4. (Reserved).
Section 393.5. Falsification of identification cards.
Section 393.6. Adulteration of cannabis by patient, caregiver or
practitioner.
Section 393.7. Disclosure of information prohibited.
Section 393.8. Additional penalties.
Section 393.9. Other restrictions.
Subchapter L. (Reserved)
Subchapter M. Academic Clinical Research Centers and
Clinical Registrants
Section 399.21. Legislative findings and declaration of policy.
Section 399.22. Definitions.
Section 399.23. Academic clinical research centers.
Section 399.24. Clinical registrants.
Section 399.25. Research study.
Subchapter N. Miscellaneous Provisions
Section 399.31. Conflict.
Section 399.32. (Reserved).
Section 399.33. Insurers.
Section 399.34. Protections for patients and caregivers.
Section 399.35. (Reserved).
Section 399.36. (Reserved).
Section 399.37. (Reserved).
Section 399.38. Notice.
Section 399.39. (Reserved).
Section 399.40. (Reserved).
Section 399.41. Repeals.
Section 399.42. Continuation.
Section 399.43. Effective date.
The General Assembly of the Commonwealth of Pennsylvania
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hereby enacts as follows:
CHAPTER 1
PRELIMINARY PROVISIONS
Section 101. Short title.
This act shall be known and may be cited as the Cannabis 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:
"Adult-use." Purchase and consumption of cannabis by an
individual who is at least 21 years of age.
"Advertise." To engage in promotional activities, including
through newspaper, radio, Internet and electronic media and
television advertising. The term includes the distribution of
fliers and circulars, billboard advertising and the display of
window signs. The term does not include interior dispensary
signage or exterior signage displaying the name of the permitted
cannabis business establishment.
"Agent" or "cannabis business establishment agent." A
principal officer, board member, employee or other agent of a
cannabis business establishment who is 21 years of age or older.
"Applicant." An individual or entity applying for a permit
under this act.
"Board." The Cannabis Control Board established under
Subchapter A of Chapter 2.
"Cannabis." As follows:
(1) Any of the following:
(i) Marijuana, hashish or other substances that are
identified as including any parts of the plant Cannabis
sativa and including derivatives or subspecies, such as
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indica, of all strains of cannabis, whether growing or
not, including the seeds, resin extracted from any part
of the plant and any compound, manufacture, salt,
derivative, mixture or preparation of the plant. The term
includes THC and all other naturally produced cannabinol
derivatives, whether produced directly or indirectly by
extraction, including, delta-7 THC, delta-8 THC, delta-9
THC or any structural, optical or geometric isomers of
tetrahydrocannabinol, cannabis flower, concentrate,
edible and infused products.
(ii) A product intended for human consumption with a
THC concentration, however derived, greater than the
allowable THC limit specified in this act.
(2) The term does not include 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, manufacture,
salt, derivative, mixture or preparation of the mature
stalks, the sterilized seed of the plant that is incapable of
germination or industrial hemp as defined in 3 Pa.C.S. § 702
(relating to definitions).
"Cannabis business establishment." An individual or entity
holding a permit issued by the board to cultivate, process,
dispense, infuse or transport cannabis, including a dispensing
organization, cultivation center, disproportionately impacted
area dispensing organization permit holder, small business
permit holder or micro cultivation center.
"Cannabis business establishment agent identification card"
or "agent identification card." An identification card held by
an authorized agent of a dispensing organization,
disproportionately impacted area dispensing organization permit
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holder, micro cultivation center, small business or cultivation
center.
"Cannabis concentrate." A product derived from cannabis that
is produced by extracting cannabinoids, including THC, with the
intended use of smoking, vaping or making an edible or infused
product. The term includes a product derived from cannabis that
is produced by means of heat and pressure or mechanical
separations.
"Cannabis flower." Marijuana, hashish or other substances
identified as including any parts of the plant Cannabis sativa
and including derivatives or subspecies, such as indica, of all
strains of cannabis, including raw kief, leaves and buds. The
term does not include resin that has been extracted from any
part of the plant or any compound, manufacture, salt,
derivative, mixture or preparation of the plant, the plant's
seeds or resin.
"Cannabis-infused edible product." A product meant to be
chewed, dissolved, taken sublingually or buccally or swallowed.
The term includes liquids, including beverages, food, oil,
tincture, capsule, tablet, gummies or other ingestible forms
containing cannabis or cannabis concentrate that are not
intended to be smoked or otherwise inhaled.
"Cannabis-infused non-edible product." A product meant to be
used topically or otherwise not intended to be ingested. The
term includes gels, creams, patches or ointments containing
cannabis or cannabis concentrate.
"Cannabis paraphernalia." Any equipment, product or material
of any kind which is primarily intended or designed for any of
the following:
(1) Use in vaporizing, ingesting, inhaling or otherwise
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introducing an edible or non-edible infused product into the
human body.
(2) Preparing, storing or containing cannabis.
"Cannabis seed-to-sale tracking system" or "seed-to-sale
tracking system." A system designated by the board as the
system of record or a secondary electronic tracking system used
by a cannabis business establishment or testing laboratory.
"Cannabis testing facility." An entity registered by the
board to test cannabis for potency and contaminants.
"Caregiver." The term includes the following entities
designated to deliver medical cannabis:
(1) An individual designated by a patient.
(2) If the patient is under 18 years of age, an
individual under section 337(2).
(3) Individuals designated in writing, for purposes of
section 332, by an organization that provides hospice,
palliative or home health care services and:
(i) are employed by an organization that is licensed
under the act of July 19, 1979 (P.L.130, No.48), known as
the Health Care Facilities Act;
(ii) have significant responsibility for managing
the health care and well-being of a patient; and
(iii) were designated by the organization to provide
care to a patient who has provided authorization for the
designation.
(4) Individuals designated in writing, for purposes of
section 332, by a residential facility, including a long-term
care nursing facility, skilled nursing facility, assisted
living facility, personal care home, independent long-term
care facility or intermediate care facility for individuals
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with intellectual disabilities that:
(i) are licensed by the board or the Department of
Human Services;
(ii) have significant responsibility for managing
the health care and well-being of the patient; and
(iii) were designated by the residential facility to
provide care to a patient who has provided authorization
for the designation.
"Certified medical use." The acquisition, possession, use or
transportation of medical cannabis by a patient, or the
acquisition, possession, delivery, transportation or
administration of medical cannabis by a caregiver, for use as
part of the treatment of the patient's serious medical
condition, as authorized in a certification under this act,
including enabling the patient to tolerate treatment for the
serious medical condition.
"Certified registered nurse practitioner." As defined in
section 2 of the act of May 22, 1951 (P.L.317, No.69), known as
The Professional Nursing Law.
"Change in control." The acquisition by a person or group of
persons acting in concert of a controlling interest in an
applicant or permittee either all at one time or over the span
of a 12-consecutive-month period.
"Chief medical officer." The chief medical officer hired
under section 207(a)(2).
"Clone." A plant section from a female cannabis plant not
yet root-bound, growing in a water solution or other propagation
matrix, that can develop into a new plant.
"Continuing care." Treating a patient, in the course of
which the practitioner has completed a full assessment of the
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patient's medical history and current medical condition,
including a consultation with the patient.
"Controlling interest." As follows:
(1) For a publicly traded entity, voting rights that
entitle a 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 entity.
(2) For a privately held entity, the ownership of any
security in the entity.
"Cultivation center." An organization that cultivates,
processes, cures, produces or performs other necessary
activities to make cannabis available to patients or purchasers,
including a micro cultivation center.
"Cultivation center permit." A permit issued by the board
that permits an entity to act as a cultivation center under this
act or any regulation promulgated in accordance with this act
and permits the entity to offer home delivery services where
cannabis, edibles and infused products, as approved by the
board, are delivered directly to a purchaser or patient.
"Curbside." The transfer or dispensing of cannabis or an
edible or non-edible infused product by an employee of a
cannabis business establishment to a vehicle located in the
parking area or to an individual at the entrance of the
facility.
"Department." The Department of Health of the Commonwealth.
"Dispensary." A person, including a natural person,
corporation, partnership, association, trust or other entity, or
any combination thereof, which holds a permit issued by the
board to dispense medical cannabis.
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"Dispensing organization." An organization, including a
person, that meets all of the following criteria:
(1) The organization is permitted by the board to
acquire cannabis from a cultivation center or micro
cultivation center or other dispensary for the purpose of
selling or dispensing cannabis, cannabis concentrates, edible
and non-edible infused products, cannabis seeds,
paraphernalia or related supplies to purchasers under this
chapter or to patients and caregivers under Chapter 3.
(2) The organization is a dual-use dispensary.
(3) The organization complies with the provisions of
Chapter 3.
"Dispensing organization permit." A permit issued by the
board that allows a person to act as a dispensing organization
under this chapter or any regulation promulgated in accordance
with this chapter and Chapter 3.
"Disproportionately impacted area." A census tract that
satisfies the criteria determined by the board and that meets at
least one of the following criteria:
(1) The area has a poverty rate of at least 20%
according to the most recent Federal decennial census.
(2) Seventy-five percent or more of the children in the
area participate in the National School Lunch Program
according to reported statistics from the State Board of
Education.
(3) At least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program.
(4) The area has an average unemployment rate, as
determined by the Department of Labor and Industry, that is
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more than 120% of the national unemployment average as
determined by the United States Department of Labor for a
period of at least 12 consecutive calendar months preceding
the date of the application for a permit under this act and
has a high rate of arrest, conviction and incarceration
related to the sale, possession, use, cultivation,
manufacture or transport of cannabis.
"Disproportionately impacted area applicant." An applicant
that does not generate an annual income of more than $75,000 or
have financial assets exceeding $250,000 and is composed of at
least 75% ownership and control by one or more individuals who
have resided for at least five of the preceding 10 years in a
disproportionately impacted area in this Commonwealth.
"Enclosed, locked facility." A room, greenhouse, building or
other enclosed area equipped with locks or other security
devices that permit access only to cannabis business
establishment agents working for the permitted cannabis business
establishment or acting under this act to cultivate, process,
store or distribute cannabis.
"Enclosed, locked space." Space within a facility, building
or other enclosed area equipped with locks or other security
devices that permit access only to authorized individuals under
this act.
"Excipients." Solvents, chemicals or materials reported by a
medical cannabis organization and approved by the board for use
in the processing of medical cannabis.
"Executive director." The executive director of the board.
"Family or household member." As defined in 23 Pa.C.S. §
6102 (relating to definitions).
"Financial backer." An investor, mortgagee, bondholder, note
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holder or other source of equity, capital or other assets, other
than a financial institution.
"Financial institution." As defined in section 3003.22(r) of
the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
Code of 1971.
"Flowering stage." The stage of cultivation where and when a
cannabis plant is cultivated to produce plant material for an
edible or non-edible infused 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
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.
"Form of medical cannabis." The characteristics of the
medical cannabis recommended or limited for a particular
patient, including the method of consumption and any particular
dosage, strain, variety and quantity or percentage of medical
cannabis or particular active ingredient.
"Identification card." A document issued under section 331
that authorizes access to cannabis for a patient under this
chapter.
"Individual dose." A single measure of medical cannabis.
"Limited access area." A room or other area under the
control of a dispensing organization where cannabis sales occur
with access limited to individuals who are 21 years of age or
older and qualified patients and caregivers or other individuals
as determined by the board's regulations.
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"Medical cannabis." Cannabis for certified medical use as
set forth in this act.
"Medical cannabis grower/processor." A person, including a
natural person, corporation, partnership, association, trust or
other entity, or any combination thereof, which holds a permit
from the board under this act to grow and process medical
cannabis.
"Medical cannabis organization." A dispensary or a
cultivation center.
"Micro cultivation center." A facility operated by an
individual or entity that is permitted to cultivate, dry, cure
and package cannabis and perform other necessary activities to
make cannabis available for sale at a dispensing organization.
"Micro cultivation center permit." A permit issued by the
board to an individual or entity to conduct activities of a
micro cultivation center under this act.
"Minority-owned business." As defined in 74 Pa.C.S. § 303(b)
(relating to diverse business participation).
"Ordinary public view." Within the sight line of a normal
visual range of an individual, unassisted by visual aids, from a
public street or sidewalk adjacent to real property or from
within an adjacent property.
"Patient." An individual who:
(1) has a serious medical condition;
(2) has met the requirements for certification under
this act; and
(3) is a resident of this Commonwealth.
"Permit" or "license." An authorization issued by the board
to a cannabis business establishment to conduct activities under
this act.
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"Permittee" or "licensee." An individual or entity granted a
permit under this act.
"Person." An individual, firm, partnership, association,
joint stock company, joint venture, public or private
corporation, limited liability company or a receiver, executor,
trustee, guardian or other representative appointed by order of
a court.
"Physician assistant." As defined in section 2 of the act of
December 20, 1985 (P.L.457, No.112), known as the Medical
Practice Act of 1985, and section 2 of the act of October 5,
1978 (P.L.1109, No.261), known as the Osteopathic Medical
Practice Act.
"Possession limit." The amount of cannabis that a purchaser
may possess at any one time, not including an individual who is
a patient or caregiver under Chapter 3.
"Practitioner." A physician who is registered with the board
under section 321.
"Prescription drug monitoring program." The Achieving Better
Care by Monitoring All Prescriptions Program (ABC-MAP).
"Principal." An officer, director or person who directly
owns a beneficial interest in or ownership of the securities of
an applicant or permittee, a person who has a controlling
interest in an applicant or permittee or who has the ability to
elect the majority of the board of directors of an applicant or
permittee or otherwise control an applicant or permittee, other
than a financial institution.
"Principal officer." Any of the following:
(1) An officer, director or person who directly owns
more than a 1% beneficial interest or ownership of the
securities of a cannabis business establishment applicant or
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permittee or more than a 10% beneficial interest or ownership
of the securities of a cannabis business establishment
applicant or permittee that is a publicly traded company.
(2) A person who has a controlling interest in a
cannabis business establishment applicant or permittee or who
has the ability to elect the majority of the board of
directors of a cannabis business establishment applicant or
permittee.
(3) A person who otherwise controls a cannabis business
establishment applicant or permittee, not including a
financial institution.
"Process lot." An amount of a cannabis product of the same
type and processed using the same cannabis extract, standard
operating procedures and the same or combination of different
harvest lots.
"Purchaser." An individual 21 years of age or older who
acquires cannabis for consideration. The term does not include a
cannabis business establishment agent identification card holder
as used in accordance with Chapter 3.
"Registry." The registry established by the board for
practitioners.
"Remediation." The reprocessing of a manufactured edible or
non-edible infused product batch that has failed laboratory
testing conducted by a cannabis testing facility or the
processing of a harvest lot that has failed laboratory testing
conducted by a cannabis testing facility.
"Restricted access area." An area of a permitted cannabis
business establishment where only cannabis business
establishment agents are allowed, with limited exceptions.
"Safety-sensitive position." A position that requires any
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activity that an employer reasonably believes presents a
potential risk of harm to the health or safety of an employee or
others while under the influence of medical cannabis, including:
(1) Duties performed at heights or in confined spaces,
including mining.
(2) The operation of a motor vehicle, other vehicle,
equipment, machinery or a power tool.
(3) Repairing, maintaining or monitoring the performance
or operation of any equipment, machinery or manufacturing
process, the malfunction or disruption of which could result
in injury or property damage.
(4) Performing firefighting duties as permitted under
Chapter 3.
(5) The operation, maintenance or oversight of critical
services and infrastructure, including electric, gas and
water utilities, power generation or distribution.
(6) The extraction, compression, processing,
manufacturing, handling, packaging, storage, disposal,
treatment or transport of potentially volatile, flammable or
combustible materials, elements, chemicals or other highly
regulated component.
(7) Dispensing pharmaceuticals.
(8) A position that requires the employee to carry a
firearm.
(9) Direct patient care or direct child care.
"Secretary." The Secretary of Health of the Commonwealth.
"Security." As defined in section 102(t) of the act of
December 5, 1972 (P.L.1280, No.284), known as the Pennsylvania
Securities Act of 1972.
"Serious medical condition." Any of the following:
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(1) Cancer, including remission therapy.
(2) Positive status for human immunodeficiency virus or
acquired immune deficiency syndrome.
(3) Amyotrophic lateral sclerosis.
(4) Parkinson's disease.
(5) Multiple sclerosis.
(6) Damage to the nervous tissue of the central nervous
system (brain-spinal cord) with objective neurological
indication of intractable spasticity and other associated
neuropathies.
(7) Epilepsy.
(8) Inflammatory bowel disease.
(9) Neuropathies.
(10) Huntington's disease.
(11) Crohn's disease.
(12) Posttraumatic stress disorder.
(13) Intractable seizures.
(14) Glaucoma.
(15) Sickle cell anemia.
(16) Severe chronic or intractable pain of neuropathic
origin or severe chronic or intractable pain.
(17) Autism.
(18) Other conditions that a certifying physician
determines may benefit a patient under their continuing care.
(19) Other conditions that are recommended by the chief
medical officer and approved by the board under section 207.
"Small business." An independently owned and operated for-
profit business employing 100 or fewer employees and not a
subsidiary or affiliate of a corporation.
"Smoking." The inhalation of smoke caused by the combustion
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of cannabis.
"Synchronous interaction." A two-way or multiple-way
exchange of information between a patient and a health care
provider that occurs in real time via audio or video
conferencing.
"Terminally ill." A medical prognosis of life expectancy of
approximately one year or less if the illness runs its normal
course.
"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,
hexahydrocannabinol and any other substance, however derived,
that has similar effects on the mind or body as determined by
the board.
"Tincture." A cannabis-infused solution, typically comprised
of alcohol, glycerin or vegetable oils derived either directly
from the cannabis plant or from a processed cannabis extract.
The term does not include an alcoholic liquor as used in the act
of April 12, 1951 (P.L.90, No.21), known as the Liquor Code. The
term shall include a calibrated dropper or other similar device
capable of accurately measuring servings.
"Under the influence." One or more of the following:
(1) A drug test resulting in:
(i) a level of tetrahydrocannabinolic acid in an
employee's urine that is equal to or greater than 15
nanograms per milliliter; or
(ii) an adulterated or substituted testing sample
provided by an employee.
(2) An employer's good faith determination that an
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employee is under the influence of cannabis based on
observable physical behavior or characteristics, provided
that the employee may rebut the determination by immediately
submitting to a drug test, the results of which demonstrate
that the level of tetrahydrocannabinolic acid in the
employee's urine is less than 15 nanograms per milliliter.
"Veteran-owned small business." As defined in 51 Pa.C.S. §
9601 (relating to definitions).
"Women-owned business." As defined in 74 Pa.C.S. § 303(b).
CHAPTER 2
CANNABIS
SUBCHAPTER A
CANNABIS CONTROL BOARD
Section 201. Establishment of board.
(a) Board established.--The Cannabis Control Board is
established as an independent board which shall be a body
corporate and politic.
(b) Membership.--The board shall consist of the following
members:
(1) Three members appointed by the Governor.
(2) One member appointed by each of the following:
(i) The President pro tempore of the Senate.
(ii) The Speaker of the House of Representatives.
(iii) The Minority Leader of the Senate.
(iv) The Minority Leader of the House of
Representatives.
(c) Removal.--A member of the board shall be removed from
office by the appointing authority:
(1) for misconduct in office, willful neglect of duty or
conduct evidencing unfitness for office or incompetence; or
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(2) upon conviction of an offense graded as a felony, an
infamous crime, an offense under Chapter 3 or an equivalent
offense under Federal law or the law of another jurisdiction.
(d) Initial appointments to board.--
(1) Gubernatorial appointees initially appointed under
subsection (b)(1) shall serve an initial term of one, two and
three years respectively as designated by the Governor at the
time of appointment and until their successors are appointed
and qualified.
(2) Legislative appointees initially appointed under
subsection (b)(2) shall serve until the third Tuesday in
January 2027 and until their successors are appointed and
qualified.
(3) An appointment to fill a vacancy created by a member
appointed in accordance with paragraph (1) or (2) shall be
for the remainder of the unexpired term.
(e) Terms of office.--Upon the expiration of a term of a
member appointed under subsection (d), the following shall
apply:
(1) The term of office of a gubernatorial appointee
shall be three years and until a successor is appointed and
qualified.
(2) The term of office of a legislative appointee shall
be two years and until a successor is appointed and
qualified.
(3) A gubernatorial appointee shall serve no more than
two full consecutive terms.
(4) A legislative appointee shall serve no more than
three full consecutive terms.
(5) An appointment to fill a vacancy shall be for the
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remainder of the unexpired term.
(6) A member appointed to fill a vacancy under paragraph
(3) may serve two full terms following the expiration of the
term related to the vacancy.
(7) A member appointed to fill a vacancy under paragraph
(4) may serve three full terms following the expiration of
the term related to the vacancy.
(f) Ex officio members.--The Secretary of Agriculture, the
Secretary of Health, the Secretary of Community and Economic
Development, the Attorney General and the Pennsylvania State
Police Commissioner, or their designees, shall serve on the
board as nonvoting ex officio members of the board. The designee
shall be a deputy secretary or an equivalent position within the
agency.
(g) Executive director of the board.--Within seven days of
the effective date of this subchapter, the Governor shall
nominate an interim executive director. The Governor's nominee
shall be subject to Senate confirmation and the Senate shall
hold the confirmation vote within seven days of the nomination.
If the Senate fails to hold the confirmation vote within seven
days of nomination, the Senate shall be deemed to have confirmed
the nominee. If the Senate rejects the nominee, the Governor
shall have five days to nominate a second proposed interim
executive director and the Senate shall have five days after the
nomination to hold a confirmation vote. If the Senate fails to
hold a confirmation vote within five days of the nomination, the
Senate shall be deemed to have confirmed the nominee. If the
Senate rejects the nominee, the Governor shall have three days
to nominate a third proposed interim executive director and the
Senate shall have three days after the nomination to hold a
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confirmation vote. The process for the third proposed interim
director shall continue until an interim executive director is
confirmed by the Senate. The following shall apply:
(1) The interim executive director may be the permanent
executive director and shall not be prohibited from
employment with the board in any other position.
(2) Between the effective date of this subchapter and
when the board is fully constituted, staffed and operational,
it is the intent of the General Assembly for regulated
materials and regulated activities to be administered by the
interim executive director on a temporary basis.
(3) The interim executive director and executive
director shall be considered employees of the board for
compensation purposes.
(h) Background investigation.--Appointees shall be subject
to a background investigation conducted by the Pennsylvania
State Police in accordance with this subchapter.
(i) Qualifications and restrictions.--
(1) Each member at the time of appointment shall be at
least 25 years of age and shall have been a resident of this
Commonwealth for a period of at least one year immediately
preceding appointment. Each member shall continue to remain a
resident of this Commonwealth during the term of membership
on the board.
(2) Except for ex officio members, a person may not be
appointed a member of the board or be employed by or be an
independent contractor of the board if that individual is a
public official or party officer, as those terms are defined
in 4 Pa.C.S. § 1512 (relating to financial and employment
interests), in this Commonwealth or any of its political
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subdivisions.
(3) Each member, employee and independent contractor of
the board shall sign an agreement to not disclose
confidential information.
(4) A member, employee or independent contractor of the
board or another agency having regulatory authority over the
board or cannabis business establishments may not be
employed, hold any office or position or be engaged in any
activity which is incompatible with the position, employment
or contract.
(5) A member may not engage in any business, employment
or vocation for which the member receives a salary,
compensation or fee for services rendered which is in excess
of 15% of the member's gross annual salary as a member of the
board. For purposes of this paragraph, the terms "salary,"
"compensation" and "fee" do not include any of the following:
(i) Passive or unearned income, including interest,
dividends or capital gains from the sale of assets or
securities held for investment purposes.
(ii) Health care benefits or retirement, pension or
annuity payments.
(iii) Amounts received from a family-controlled
trade or business in which both personal services and
capital are income-producing factors, provided that the
personal services actually rendered by the member do not
generate a significant amount of income.
(iv) Director's fees attributable to board
membership of a corporate or nonprofit body or board or
reimbursement for expenses incurred in connection with
board membership.
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(6) A member may not be paid or receive any fee or other
compensation for any activity related to the duties or
authority of the board other than the salary and expenses
provided by law.
(7) A member, employee or independent contractor of the
board may not participate in a hearing, proceeding or other
matter in which the member, employee or independent
contractor, or an immediate family member thereof, has a
financial interest in the subject matter of the hearing or
proceeding or other interest that could be substantially
affected by the outcome of the hearing or proceeding without
first fully disclosing the nature of the interest to the
board and other persons participating in the hearing or
proceeding. The board shall determine if the interest is a
disqualifying interest that requires the disqualification or
nonparticipation of an employee or independent contractor.
For the purposes of this paragraph, the term "immediate
family" shall mean a spouse, parent, brother, sister or
child.
(8) At the time of appointment and annually thereafter,
each member shall disclose the existence of any financial
interest in any applicant, permitted entity, intermediary,
subsidiary or holding company thereof held by the member or
known to be held by the member's immediate family. The
disclosure statement shall be filed with the executive
director of the board and with the appointing authority for
the member and shall be open to inspection by the public at
the office of the board during the normal business hours of
the board for the duration of the member's term and for two
years after the member leaves office. For the purposes of
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this paragraph, the term "immediate family" shall mean a
spouse, parent, brother, sister or child.
(9) Prior to being sworn as a member, an appointee and
the appointee's immediate family shall divest any financial
interest in any applicant, permitted entity, intermediary,
subsidiary or holding company thereof owned or held by the
appointee or known to be held by the appointee's immediate
family. For the duration of the member's term and for one
year thereafter, the member and the member's immediate family
may not acquire a financial interest in any applicant,
permitted entity, intermediary, subsidiary or holding company
thereof. For purposes of this paragraph, the term "immediate
family" shall mean a spouse and any minor or unemancipated
child.
(10) Prior to entering into employment or a contract
with the board and annually thereafter, an employee or
independent contractor shall disclose the existence of any
financial interest in any applicant, permitted entity,
intermediary, subsidiary or holding company thereof owned or
held by the employee or independent contractor or known to be
held by the immediate family of the employee or independent
contractor. The disclosure statement shall be filed with the
board and shall be open to inspection by the public at the
office of the board during the normal business hours of the
board and for two years after termination of employment or a
contract with the board. For purposes of this paragraph, the
term "immediate family" shall mean a spouse, parent, brother,
sister or child.
(11) Prior to entering into employment or contracting
with the board, an employee or independent contractor and the
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employee's or independent contractor's immediate family shall
divest any financial interest in any applicant, permitted
entity, intermediary, subsidiary or holding company thereof,
owned or held by the employee or independent contractor or
known to be held by the immediate family of the employee or
independent contractor. For the duration of the employee's
employment with the board or the independent contractor's
contract with the board and for one year thereafter, the
employee or independent contractor and the immediate family
thereof shall not acquire, by purchase, gift, exchange or
otherwise, any financial interest in any applicant, or
permitted entity, intermediary, subsidiary or holding company
thereof. For purposes of this paragraph, the term "immediate
family" shall mean a spouse and any minor or unemancipated
child.
(12) A member, employee or independent contractor of the
board may not directly or indirectly solicit, request,
suggest or recommend to any applicant, permitted entity,
intermediary, subsidiary or holding company thereof or to any
principal, employee, independent contractor or agent thereof,
the appointment or employment of any person in any capacity
by the applicant, permitted entity, intermediary, subsidiary
or holding company thereof for a period of two years from the
termination of term of office, employment or contract with
the board.
(13) A member may not accept employment with any
applicant, permitted entity or an affiliate, intermediary,
subsidiary or holding company thereof for a period of two
years from the termination of term of office.
(14) A former member may not appear before the board in
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any hearing or proceeding or participate in any other
activity on behalf of any applicant, permitted entity or an
affiliate, intermediary, subsidiary or holding company of an
applicant or permitted entity, or any other permittee, for a
period of two years from the termination of term of office.
(15) A member who has been convicted during the member's
term in any domestic or foreign jurisdiction of a felony
criminal offense related to the manufacture, delivery or
possession with intent to manufacture or deliver a controlled
substance in violation of the act of April 14, 1972 (P.L.233,
No.64), known as The Controlled Substance, Drug, Device and
Cosmetic Act, shall, upon conviction, be automatically
removed from the board and shall be ineligible to become a
member in the future. If an ex officio member is convicted
during the ex officio member's term in any domestic or
foreign jurisdiction of a felony criminal offense related to
the manufacture, delivery or possession with intent to
manufacture or deliver a controlled substance in violation of
the Controlled Substance, Drug, Device and Cosmetic Act, the
ex officio member shall, upon conviction, be automatically
removed from the board, and a designee shall be designated
under subsection (g) to serve the remainder of the ex officio
member's term.
(16) The following shall apply to an employee of the
board whose duties substantially involve licensing,
enforcement, development of law, promulgation of regulations
or development of policy relating to cannabis or who has
other discretionary authority which may affect or influence
the outcome of an action, proceeding or decision, including
the executive director, bureau directors and attorneys:
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(i) The individual may not, for a period of two
years following termination of employment, accept
employment with or be retained by an applicant or
permitted entity or by an affiliate, intermediary,
subsidiary or holding company of an applicant or
permitted entity.
(ii) The individual may not, for a period of two
years following termination of employment, appear before
the board in any hearing or proceeding or participate in
any activity on behalf of any applicant, permittee or
permitted entity or on behalf of an affiliate,
intermediary, subsidiary or holding company of any
applicant, permittee or permitted entity.
(iii) An applicant or a permitted entity or an
affiliate, intermediary, subsidiary or holding company of
an applicant or a permitted entity may not, until the
expiration of two years following termination of
employment, employ or retain the individual. Violation of
this subparagraph shall result in termination of the
individual's employment and subject the violator to
penalties determined by the board.
(iv) A prospective employee who, upon employment,
would be subject to this paragraph must, as a condition
of employment, sign an affidavit that the prospective
employee will not violate subparagraph (i) or (ii). If
the prospective employee fails to sign the affidavit, the
board shall rescind any offer of employment and may not
employ the individual.
(17) The following shall apply to an independent
contractor and to an employee of an independent contractor
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whose duties substantially involve consultation relating to
licensing, enforcement, development of law, promulgation of
regulations or development of policy, relating to cannabis:
(i) The person may not, for a period of one year
following termination of the contract with the board, be
retained by an applicant or a permitted entity or by an
affiliate, intermediary, subsidiary or holding company of
an applicant or a permitted entity.
(ii) The person may not, for a period of two years
following termination of the contract with the board,
appear before the board in a hearing or proceeding or
participate in activity on behalf of any applicant,
permittee or permitted entity or on behalf of an
affiliate, intermediary, subsidiary or holding company of
any applicant, permittee or permitted entity.
(iii) An applicant or a permitted entity or an
affiliate, intermediary, subsidiary or holding company of
an applicant or a permittee may not, until the expiration
of one year following termination of the contract with
the board, employ or retain the person. A knowing
violation of this subparagraph shall result in
termination of the person's employment and subject the
violator to penalties determined by the board.
(iv) Each contract between the board and an
independent contractor which involves the duties provided
under this paragraph shall contain a provision requiring
the independent contractor to sign an affidavit that the
independent contractor will not violate subparagraph (i)
or (ii). If the independent contractor fails to sign the
affidavit, the board may not enter into the contract.
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(v) An independent contractor shall require a
prospective employee whose employment would involve the
duties provided under this paragraph to sign an affidavit
that the prospective employee will not violate
subparagraph (i) or (ii). If the prospective employee
fails to sign the affidavit, the independent contractor
shall rescind any offer of employment and may not employ
the individual.
(18) Nothing under paragraph (16) or (17) shall prevent
a current or former employee of the board, a current or
former independent contractor or a current or former employee
of an independent contractor from appearing before the board
in any hearing or proceeding as a witness or testifying as to
any fact or information.
(19) The State Ethics Commission shall issue a written
determination of whether a person is subject to paragraph
(16) or (17) upon the written request of the person or the
person's employer or potential employer. A person that relies
in good faith on a determination issued under this paragraph
shall not be subject to any penalty for an action taken,
provided that all material facts provided in the request for
the determination are correct.
(20) The State Ethics Commission shall publish a list of
all employment positions within the board and employment
positions within independent contractors whose duties would
subject the individuals in those positions to the provisions
of paragraphs (16) and (17). The board and each independent
contractor shall assist the State Ethics Commission in the
development of the list, which shall be transmitted by the
State Ethics Commission to the Legislative Reference Bureau
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for publication in the Pennsylvania Bulletin biennially and
posted by the board on the board's publicly accessible
Internet website. Upon request, employees of the board and
each independent contractor 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. An individual who relies in good faith on the list
published by the State Ethics Commission shall not be subject
to any penalty for a violation of paragraph (16) or (17).
(21) If a member of the board violates any provision of
this section, the appointing authority may remove the
individual from the board. A member removed under this
paragraph shall, for a period of five years following
removal, be prohibited from future appointment to the board
and shall be prohibited from applying for a permit or other
authorization under Chapter 3 and from becoming an
independent contractor or registering as a permitted entity
representative.
(j) Fiduciary relationship.--A member or employee of the
board shall serve as a fiduciary of the Commonwealth.
(k) Standard of care.--Members shall exercise the standard
of care required by 20 Pa.C.S. Ch. 73 (relating to
municipalities investments) in the performance of their duties
under this subchapter.
(l) Liability.--Members shall not be personally liable for
any of the following:
(1) Obligations of the board.
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(2) Actions which were within the scope of their office
and made in good faith.
(m) Compensation.--
(1) The Executive Board as established in the act of
April 9, 1929 (P.L.177, No.175), known as The Administrative
Code of 1929, shall establish the compensation of the
members.
(2) Members shall be reimbursed for all necessary and
actual expenses.
(3) Members shall be eligible for retirement under the
State Employees' Retirement Code and shall, if the member
elects to participate, be considered a State employee for the
purposes of 71 Pa.C.S. Pt. XXV (relating to retirement for
State employees and officers).
(n) Chairperson.--The chairperson of the board shall be
selected by a majority vote of appointed and qualified members.
(o) Appointments.--The appointing authorities shall make
their initial appointments within 30 days of the effective date
of this subchapter. Appointments to fill a vacancy shall be made
within 30 days of the creation of the vacancy. No appointment
shall be final until receipt by the appointing authority of the
required background investigation of the appointee by the
Pennsylvania State Police which shall be completed within 15
days. A person who has been convicted in any domestic or foreign
jurisdiction of a felony, infamous crime or gaming offense may
not be appointed to the board.
(p) Prohibition against nepotism.--A member may not solicit,
request, suggest or recommend the employment by the board of any
individual related within the second degree of consanguinity to
the member as provided in 23 Pa.C.S. § 1304(e) (relating to
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restrictions on issuance of license) or the spouse of the
individual.
(q) Employment requirements.--
(1) Prospective employees shall submit an application
and a personal disclosure form to the board which shall
include a complete criminal history, including convictions
and current charges for all felonies and misdemeanors.
(2) Prospective employees shall be required to undergo
testing which detects the presence of illegal substances in
the body.
(3) The board shall obtain fingerprints and photographs
for each prospective employee consistent with the standards
adopted by the Pennsylvania State Police.
(4) The board shall verify the identification,
employment and education of each prospective employee,
including:
(i) Legal name, including any alias.
(ii) All educational institutions attended
regardless of graduation status.
(iii) Places of residence for the past 10 years.
(iv) Employment history for the past 15 years.
(5) The board may not hire a prospective employee if the
prospective employee:
(i) has been convicted of a crime that bears a close
relationship to the duties and responsibilities of the
position for which employment is sought;
(ii) has been dismissed from other employment for
gross misconduct; or
(iii) has intentionally made a false statement
concerning a material fact in connection with the
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application to the board.
(6) The board may not employ a person unless the
requirements of paragraphs (1), (2), (3) and (4) have been
met. This paragraph shall apply only to persons employed
after the effective date of this subsection.
(7) The board shall:
(i) Immediately refer any criminal matter involving
an employee to law enforcement.
(ii) Develop a disciplinary process for an employee
charged with a crime or with gross misconduct.
(iii) Immediately suspend from employment any
employee charged with a felony.
(iv) Develop a process to discipline all other
instances of misconduct.
(8) Disciplinary action shall be instituted promptly
against an employee who, while on or off duty, engages in
serious misconduct which may bring the board into disrepute.
(r) Budgetary impasse.--If, in the event of a budgetary or
other fiscal crisis, the Governor orders the furlough of
Commonwealth employees, the board and its employees whose duties
involve the regulation and oversight of cannabis shall not be
subject to furlough and shall continue to perform their duties
of employment.
(s) 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:
"Financial interest." An ownership, property, leasehold or
other beneficial interest in a cannabis business establishment.
The term does not include an interest which is held or deemed to
be held in any of the following:
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(1) Securities that are held in a pension plan, profit-
sharing individual retirement account, tax-sheltered annuity,
a plan established under 26 U.S.C. § 457 (relating to
deferred compensation plans of State and local governments
and tax-exempt organizations), deferred compensation plan
whether qualified or not qualified under 26 U.S.C. (relating
to Internal Revenue Code) or other retirement plan that:
(i) is not self-directed by the individual; and
(ii) is advised by an independent investment adviser
who has sole authority to make investment decisions with
respect to contributions made by the individual to these
plans.
(2) A tuition account plan organized and operated under
26 U.S.C. § 529 (relating to qualified tuition programs) that
is not self-directed by the individual.
(3) A mutual fund where the interest owned by the mutual
fund in a cannabis business establishment does not constitute
a controlling interest.
"Ownership interest." Owning or holding, or being deemed to
hold, debt or equity securities or other ownership interest or
profit interest.
Section 202. Code of conduct.
(a) Scope.--The board shall adopt a comprehensive code of
conduct prior to the consideration of any permit or registration
application. The code of conduct shall supplement all other
requirements under Chapter 3 and 65 Pa.C.S. Pt. II (relating to
accountability) and shall provide guidelines applicable to
members, employees, independent contractors of the board and the
immediate families of the members, employees and independent
contractors to enable them to avoid any perceived or actual
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conflict of interest and to promote public confidence in the
integrity and impartiality of the board. At a minimum, the code
of conduct adopted under this section shall include restrictions
under subsection (b).
(b) Restrictions.--A member of the board shall:
(1) Not accept any discount, gift, gratuity,
compensation, travel, lodging or other thing of value,
directly or indirectly, from any applicant, permittee or any
representative thereof.
(2) Disclose and disqualify the member from any
proceeding in which the member's objectivity, impartiality,
integrity or independence of judgment may be reasonably
questioned due to the member's relationship or association
with a party connected to any proceeding or a person
appearing before the board.
(3) Refrain from any financial or business dealing which
would tend to reflect adversely on the member's objectivity,
impartiality or independence of judgment.
(4) Not hold or campaign for public office, hold an
office in any political party or political committee,
contribute to or solicit contributions to a political
campaign, party, committee or candidate, publicly endorse a
candidate or actively participate in a political campaign.
(5) Not solicit funds for any charitable, educational,
religious, health, fraternal, civic or other nonprofit entity
from an applicant, cannabis business establishment,
subsidiary, intermediary or holding company of a cannabis
business establishment, interested party or cannabis business
establishment representative.
(6) Not meet or engage in discussions with any
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applicant, permitted entity or a cannabis business
establishment representative unless the meeting or discussion
occurs on the business premises of the board and is recorded
in a log maintained for this purpose. The log shall be
available for public inspection during the regular business
hours of the board. This paragraph shall not apply to
meetings of the board to consider matters requiring the
physical inspection of the equipment or premises of an
applicant or a cannabis business establishment at their
location.
(7) Avoid impropriety and the appearance of impropriety
at all times and observe standards and conduct that promote
public confidence in the oversight of cannabis.
(8) Comply with any other laws, rules or regulations
relating to the conduct of a member.
(c) Ex officio members.--The restrictions under subsection
(b)(5) shall not apply to ex officio members.
Section 203. Applicability of other statutes.
(a) General rule.--The board shall be subject to the
following acts:
(1) The act of July 19, 1957 (P.L.1017, No.451), known
as the State Adverse Interest Act.
(2) The act of February 14, 2008 (P.L.6, No.3), known as
the Right-to-Know Law.
(3) The provisions of 65 Pa.C.S. Chs. 7 (relating to
open meetings) and 11 (relating to ethics standards and
financial disclosure).
(b) Status of board.--
(1) The board shall be considered an independent agency
for the purposes of the following:
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(i) The act of October 15, 1980 (P.L.950, No.164),
known as the Commonwealth Attorneys Act.
(ii) 62 Pa.C.S. Pt. I (relating to Commonwealth
Procurement Code). The expediting of the payment of
revenue to the Commonwealth shall not be grounds for an
emergency procurement by the board.
(2) The board shall be considered an agency for the
purposes of the following:
(i) The act of July 31, 1968 (P.L.769, No.240),
referred to as the Commonwealth Documents Law.
(ii) The act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
Section 204. Board meetings.
(a) Meetings.--
(1) The board shall meet at the call of the chairperson.
(2) The board and each advisory committee or
subcommittee of the board shall meet as often as deemed
necessary.
(3) Within 30 days of the appointment of the initial
members of the board, the board shall conduct its first
meeting.
(b) Designees.--In the case of absence of the chairperson
during a meeting of the board, the chairperson of the board may
designate another member to serve as a substitute chairperson
for the meeting.
(c) Quorum.--
(1) A majority of the members of the board shall
constitute a quorum of the board for the purpose of
organizing the authority and conducting official business.
(2) Only members of the board who are physically present
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at a meeting of the board or able to participate fully in the
deliberations by appropriate telecommunications means shall
count toward a quorum of the board.
(3) If a quorum is not present, a hearing of the board
may still take place.
(d) Qualified majority vote.--
(1) Except as permitted in paragraphs (2) and (3), any
action, including the approval, issuance, denial or
conditioning of any permit by the board or the making of any
order or the ratification of any permissible act done or
order made by one or more of the members, shall require a
qualified majority vote consisting of at least one
gubernatorial appointee and the four legislative appointees.
(2) Any action to suspend or revoke, not renew, void or
require forfeiture of a permit, to impose any administrative
fine or penalty or to issue cease and desist orders or
similar enforcement actions shall require a majority vote of
all the members appointed to the board.
(3) In addition to the provisions of this subchapter or
65 Pa.C.S. § 1103(j) (relating to restricted activities), a
member shall disclose the nature of the member's
disqualifying interest, disqualify the member and abstain
from voting in a proceeding under this subchapter in which
the member's objectivity, impartiality, integrity or
independence of judgment may be reasonably questioned, as
provided in section 202(b)(7). If a legislative appointee has
disqualified themself, the qualified majority shall consist
of all the remaining legislative appointees and at least two
gubernatorial appointees.
Section 205. Board records.
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(a) Record of proceedings.--The board shall cause to be made
and kept a record of all proceedings held at public meetings of
the board. The verbatim transcript of the proceedings shall be
the property of the board and shall be prepared by the board
upon the request of any board member or upon the request of any
other person and the payment by that person of the costs of
preparation.
(b) Applicant information delivered to Governor and General
Assembly.--
(1) The board shall maintain a list of all applicants
for permits. The list shall include a record of all actions
taken with respect to each applicant. The list shall be open
to public inspection during the normal business hours of the
board.
(2) Information under paragraph (1) regarding any
applicant whose permit has been denied, revoked or not
renewed shall be removed from the list after seven years from
the date of the action.
(c) Other files and records.--The board shall maintain other
files and records as it may deem appropriate.
(d) Confidentiality of information.--All information
submitted by an applicant or obtained by the board as part of a
background investigation from any source shall be considered
confidential. Except as necessary to carry out the criminal
history investigation specified under this subchapter, the
information shall be withheld from public disclosure in whole or
in part, except that any information shall be released upon the
lawful order of a court of competent jurisdiction or, with the
approval of the Attorney General, to a duly authorized law
enforcement agency or shall be released to the public, in whole
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or in part, to the extent that the release is requested by an
applicant and does not otherwise contain confidential
information about another person. The board may not require an
applicant to waive any confidentiality provided for in this
subsection as a condition for the approval of a permit or any
other action of the board. Any person who violates this
subsection shall be administratively disciplined by discharge,
suspension or other formal disciplinary action as the board
deems appropriate.
(e) Notice.--Notice of the contents of any information,
except to a duly authorized law enforcement agency under this
section, shall be given to any applicant or permittee in a
manner prescribed by the rules and regulations adopted by the
board.
(f) Information held by department.--Files, records, reports
and other information in the possession of the department
pertaining to permits shall be made available to the board as
may be necessary to the effective administration of this
subchapter.
Section 206. Regulations.
(a) Temporary regulation.--The board shall promulgate
temporary regulations no later than 90 days from the effective
date of this subsection. The temporary regulations under this
subsection shall expire not later than two years after the
effective date of this subsection and shall not be subject to
any of the following:
(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
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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.
(a.1) Failure to promulgate regulations.--If the board fails
to promulgate regulations under subsection (a), regulations
promulgated under Chapter 3 shall apply.
(b) Compliance deadline.--A current cannabis business
establishment on the effective date of this subsection that is
authorized to cultivate, process, dispense or transport cannabis
shall have 90 days from the effective date of a new temporary
regulation promulgated by the board under subsection (a) to
comply with the temporary regulation.
(c) Regulations.--The board shall promulgate regulations,
with input from stakeholders, to implement the provisions of
this subchapter, including all of the following:
(1) Regulation of unregulated cannabis products that are
sold at unpermitted locations.
(2) The types of permits issued by the board, including
the following types of permits:
(i) Cultivation/processing.
(ii) Micro cultivation.
(iii) Dispensing.
(iv) Testing.
(v) Warehouse and distribution.
(3) The methods and forms of permit applications,
including timeline, fees and minimum requirements.
(4) The policies and procedures to prioritize, promote
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and encourage diversity and full participation by individuals
from communities that have been disproportionately harmed by
cannabis prohibition and cannabis enforcement prohibition.
(5) Procedures to process and competitively score permit
applications.
(6) Procedures to process administrative requests,
including changes of ownership and location.
(7) Security procedures for cannabis business
establishments.
(8) Enforcement procedures, including fines, suspensions
and revocations.
(9) Ownership and financial disclosure procedures and
requirements for cannabis business establishments, including
record keeping requirements.
(10) Procedures and requirements concerning the
divestiture of a beneficial ownership interest by a person
found unqualified.
(11) Procedures, processes and requirements for
transfers of ownership, including the involvement of a
publicly traded corporation.
(12) Seed-to-sale tracking system procedures. The system
shall be the record or a secondary electronic tracking system
used by a cannabis business establishment or testing
laboratory that meets all of the following criteria:
(i) The system shall capture everything that happens
to a cannabis plant from seed and cultivation through the
growth, harvest and manufacturing of cannabis and
cannabis-infused edible products and cannabis-infused
nonedible products, including testing and transportation,
to final sale.
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(ii) The system shall use unique plant
identification and unique batch identification.
(iii) The system shall track the involvement of an
agent or permittee with and cannabis-infused edible
products and cannabis-infused nonedible products.
(iv) The system shall integrate with a secondary
system used by a cannabis business establishment or a
cannabis testing facility, if applicable, in a form and
manner determined by the board.
(v) The system shall allow for two-way
communication, automation and a secure application-
programming interface with a cannabis business
establishment's enterprise resource planning, inventory,
accounting and point-of-sale software.
(vi) The system shall include a secure application
program interface capable of accessing all data required
to be transmitted to the authority to ensure compliance
with the operational reporting requirements specified
under this subchapter and any regulations promulgated by
the board.
(13) Procedures and requirements for curbside pickup
services offered by dispensing organizations.
(14) Transportation requirements, including:
(i) Establishing procedures and requirements for
home delivery services by dispensing organizations and
micro cultivation centers.
(ii) A requirement that transportation between
cannabis business establishments occurs in secured
vehicles but allowing for transportation in vehicles
other than those owned and operated by cannabis business
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establishments for purchasers to transport cannabis.
(iii) Details required on transportation manifests.
(iv) Policies encouraging bulk shipment where
appropriate.
(v) Requirements relating to shipping containers and
packaging.
(vi) The manner in which trucks, vans, trailers or
other carriers will be secured.
(vii) Security systems that include a numbered seal
on the trailer.
(viii) Obtaining copies of drivers' licenses and
registrations and other information related to security
and tracking.
(ix) Use of GPS systems.
(x) Number of drivers or other security required to
ensure against storage or in-transit losses.
(xi) Recordkeeping for delivery and receipt of
medical cannabis products.
(xii) Storing of cannabis temporarily at fulfillment
centers operated by third-party contractors contracted by
cultivation centers for transporting cannabis. A third-
party contractor may not hold a permit issued by the
board or be otherwise affiliated with a cannabis business
establishment or laboratory.
(15) Labeling requirements.
(16) Cannabis-infused edible or nonedible product
requirements, including the following:
(i) Ensuring that products are not likely to appeal
to minors.
(ii) Product safety provisions, including best
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manufacturing practices and appropriate testing.
(iii) Standards for creating clearly delineated
individual servings.
(17) Advertising and marketing regulations that balance
the ability of a cannabis business establishment to engage in
reasonable marketing and promotional activities that are not
directed at minors to promote the use of cannabis.
(18) Product safety regulations, including:
(i) Regulations consistent with best practices for
food products, except where necessary modifications are
required due to the active compounds in the cannabis
plant.
(ii) Standards for packaging to address freshness,
tamper evidence and limiting access to children.
(iii) Standard symbols and warnings where the board
shall review symbols and warnings from other
jurisdictions where cannabis sales are permitted. As
national standards are made available, the board shall
plan to adopt national standards.
(iv) A prohibition on packaging that is likely to
appeal to minors.
(19) Requirements that cannabis business establishments
use standards and practices that align with United States
Department of Agriculture and Food and Drug Administration
standards, when appropriate for the purposes of this
subchapter.
(20) Procedures for the investigation and enforcement of
unregulated and unpermitted cultivation, processing,
manufacturing, sale, dispensing or distribution of cannabis,
edible or nonedible infused products or products intended for
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consumption or inhalation.
(21) Registering practitioners and ensuring their
compliance with Chapter 3.
(22) Establishing and maintaining an electronic database
to include activities and information relating to cannabis
organizations, certifications and identification cards issued
and practitioner registration of all cannabis as required,
including:
(i) Ensuring that cannabis is not diverted or
otherwise used for unlawful purposes by a practitioner or
cannabis organization.
(ii) The ability to establish the authenticity of
identification cards.
(iii) Recording recommended forms of medical
cannabis provided in a certification filed by the
practitioner.
(23) Maintaining a directory of patients and caregivers
approved to use or assist in the administration of medical
cannabis within the board's database.
(24) Developing a four-hour training course for
physicians, pharmacists, certified registered nurse
practitioners and physician assistants regarding the latest
scientific research on cannabis for medical use, including
the risks and benefits of medical cannabis, and other
information deemed necessary by the board. Successful
completion of the course shall be approved as continuing
education credits as determined by:
(i) The State Board of Medicine and the State Board
of Osteopathic Medicine.
(ii) The State Board of Pharmacy.
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(iii) The State Board of Nursing.
(25) Developing a two-hour course for the principals and
employees of a cannabis organization who either have direct
contact with patients or caregivers or who physically handle
cannabis. Employees must successfully complete the course no
later than 90 days after commencing employment. Principals
must successfully complete the course prior to commencing
initial operation of the cannabis organization. The subject
matter of the course shall include the following:
(i) Methods to recognize and report unauthorized
activity, including diversion of cannabis for unlawful
purposes and falsification of identification cards.
(ii) Proper handling of cannabis and recordkeeping.
(iii) Any other subject required by the board.
(26) Establishing a program to authorize the use of
medical cannabis to conduct medical research relating to the
use of medical cannabis to treat serious medical conditions,
including the collection of data and the provision of
research grants.
(27) Establishing and maintaining public outreach
programs about the medical cannabis program, including:
(i) A dedicated telephone number for patients,
caregivers and members of the public to obtain basic
information about the dispensing of medical cannabis
under Chapter 3.
(ii) A publicly accessible Internet website with
similar information.
(28) Establishing a minimum of three regions within this
Commonwealth for the purpose of granting permits to
grower/processors and dispensaries and enforcing this chapter
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and Chapter 3. The board shall approve permits for
grower/processors and dispensaries in a manner which will
provide an adequate amount of cannabis to purchasers,
patients and caregivers in all areas of this Commonwealth.
The board shall consider the following when issuing a permit:
(i) Regional population.
(ii) The number of patients suffering from serious
medical conditions.
(iii) The types of serious medical conditions.
(iv) Access to public transportation.
(v) Any other factor the board deems relevant.
(29) Procedures for medical professionals in
dispensaries. A dispensary permittee shall have a physician,
pharmacist, physician assistant or certified nurse
practitioner available, either in person or by synchronous
interaction, to verify patient certifications and to consult
with patients and caregivers at all times during the hours
the dispensary is open to receive patients and caregivers. If
a dispensary permittee has more than one separate location, a
single physician, pharmacist, physician assistant or a
certified registered nurse practitioner may verify patient
certifications and consult with patients and caregivers,
either in person or by synchronous interaction, at up to
three locations if the locations are licensed under one
permit. The permittee shall have in place a plan to
demonstrate and maintain compliance with the labor laws of
the Commonwealth. A physician, a pharmacist, a physician
assistant or a certified registered nurse practitioner shall,
prior to assuming duties under this paragraph, successfully
complete the course established in section 301(a)(6) of the
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Medical Marijuana Act. A physician may not issue a
certification to authorize patients to receive medical
marijuana or otherwise treat patients at the dispensary.
(d) Compliance deadline.--A permittee shall have 180 days
from the effective date of a new regulation promulgated by the
board under this section to comply with the new regulation.
(e) Review of current regulations.--When promulgating
regulations under this section, the board shall review current
regulations promulgated under the former Medical Marijuana Act
and may implement or revise those regulations.
Section 207. Powers and duties of board.
(a) General powers.--
(1) The board shall have general and sole regulatory
authority over the conduct of cannabis business
establishments and related activities as described in this
subchapter.
(2) The board shall employ individuals, including a
chief medical officer and an executive director, 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 purposes of 71 Pa.C.S. Pt.
XXV (relating to retirement for State employees and
officers). For the purposes of this paragraph, the board
shall not be considered an executive or independent agency
under the act of October 15, 1980 (P.L.950, No.164), known as
the Commonwealth Attorneys Act.
(3) In addition to employees authorized by the board,
each member may employ one special assistant whose
classification and compensation shall be established by the
board. A special assistant shall be a State employee for
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purposes of 71 Pa.C.S. Pt. XXV, shall serve at the pleasure
of the member and may only be removed by the board for cause.
(4) The board shall establish a system of classification
and compensation of its employees and shall not be subject to
the provisions of the act of April 9, 1929 (P.L.177, No.175),
known as The Administrative Code of 1929, as to
classification and compensation for its employees and conduct
its activities consistent with the practices and procedures
of Commonwealth agencies.
(5) Within 90 days of the effective date of this
paragraph, the board shall transmit to the Legislative
Reference Bureau for publication in the next available issue
of the Pennsylvania Bulletin and publish on the board's
publicly accessible Internet website the classification
system for all employees of the board.
(6) A request for proposal to conduct investigations of
employees and applicants under this subchapter shall include
a requirement that an offeror provide the number of employees
of the offeror who will be engaged in the conduct of
investigations and who are residents of this Commonwealth and
annuitants of a Federal, State or local law enforcement
agency. Preference shall be given to an offeror with a
substantial number of employees who will be engaged in the
conduct of investigations and who are residents of this
Commonwealth and annuitants of a Federal, State or local law
enforcement agency.
(b) Specific powers.--The board shall have the specific
power and duty:
(1) To adopt, use and alter a corporate seal.
(2) To pay or satisfy obligations of the board.
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(3) To sue or be sued, implead and be impleaded or
interplead.
(4) To contract and execute instruments as necessary to
carry out the powers and duties of the board. Contracts for
the purchase of supplies, services and construction shall be
for a term not to exceed two years.
(5) To sell, transfer, convey and dispose of tangible or
intangible property owned by the board.
(6) To establish, charge and collect fees and fines as
authorized by Chapter 3.
(7) To administer oaths, examine witnesses and issue
subpoenas compelling the attendance of witnesses or the
production of documents and records or other evidence. This
paragraph shall apply to designated officers and employees.
(8) To purchase insurance against a loss related to the
board's property or assets.
(8.1) To retain attorneys, accountants, auditors and
financial and other experts to render services as necessary.
For the purposes of this paragraph, the board shall be
considered an independent agency for purposes of the
Commonwealth Attorneys Act.
(9) To require background investigations on applicants,
permittees, principals, key employees or permittees under the
jurisdiction of the board.
(10) To enter into an agreement with the Pennsylvania
State Police for the reimbursement of actual costs as
approved by the board to the Pennsylvania State Police for
the investigations. Investigations shall include information
in the possession of the Attorney General.
(11) For purposes of enforcement and for purposes of the
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background investigation, to receive information otherwise
protected by 18 Pa.C.S. Ch. 91 (relating to criminal history
record information).
(12) To require prospective and existing employees,
independent contractors, applicants and permittees to submit
to fingerprinting by the Pennsylvania State Police. The
Pennsylvania State Police shall submit the fingerprints to
the Federal Bureau of Investigation for purposes of verifying
the identity of the individual and obtaining records of
criminal arrests and convictions.
(13) To require prospective and existing employees,
independent contractors, applicants and permittees to submit
photographs consistent with the standards of the Commonwealth
Photo Imaging Network.
(14) Within six months after the effective date of this
subchapter, in a manner that does not impede the immediate
implementation of the duties and responsibilities of the
board under this subchapter during the immediate two years
after the effective date of this act, to develop and
implement an affirmative action plan to assure that all
persons are accorded equality of opportunity in employment
and contracting by the board, its contractors,
subcontractors, assignees, lessees, agents, vendors and
suppliers.
(15) To promulgate regulations pertaining to the
operation of the board. The board shall provide the employees
necessary for enforcement of this act.
(16) To transmit to the Legislative Reference Bureau for
publication each January in the Pennsylvania Bulletin and
publish on the board's publicly accessible Internet website a
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complete list of all persons or entities who applied for or
held a cannabis business establishment permit during the
preceding calendar year and all intermediaries, subsidiaries
and holding companies thereof and the status of the
application or permit.
(17) To prepare and, through the Governor, submit
annually to the General Assembly an itemized budget
consistent with Article VI of The Administrative Code of 1929
consisting of the amounts necessary to be appropriated by the
General Assembly out of the accounts established under this
act required to meet the obligations accruing during the
fiscal period beginning July 1 of the following year.
(18) If, in any year, appropriations for the
administration of this act are not enacted by June 30, any
funds appropriated for the administration of this act which
are unexpended, uncommitted and unencumbered at the end of a
fiscal year shall remain available for expenditure by the
board or other agency to which they were appropriated until
the enactment of appropriation for the ensuing fiscal year.
(19) To promulgate rules and regulations necessary for
the administration and enforcement of this act. Except for
temporary regulations authorized under this act, regulations
shall be adopted as provided under the act of July 31, 1968
(P.L.769, No.240), referred to as the Commonwealth Documents
Law, and the act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
(20) To award, deny, deny the renewal of, revoke,
condition or suspend any permit provided for in this act if
the board finds in its sole discretion that a permittee, or
its officers, employees or agents, have furnished false or
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misleading information to the board or failed to comply with
applicable laws or the rules and regulations of the board and
that it would be in the public interest to deny, deny the
renewal of, revoke, condition or suspend the permit.
(21) Restrict access to confidential information in the
possession of the board which has been obtained under this
act and ensure that the confidentiality of information is
maintained and protected. Records shall be retained by the
board for seven years.
(22) Prescribe and require periodic financial reporting
and internal control requirements for all cannabis business
establishments.
(23) Require that each cannabis business establishment
provide to the board its audited annual financial statements,
with additional detail as the board from time to time shall
require, which information shall be submitted not later than
60 days after the end of the cannabis business
establishment's fiscal year.
(24) Prescribe the procedures to be followed by cannabis
business establishments for any security breach or diversion
event that occurs in the operation of cannabis business
establishments.
(25) Require that each cannabis business establishment
prohibit persons under 21 years of age from accessing
cannabis business establishments, except for registered
patients or caregivers that hold a valid permit under Chapter
3.
(26) Establish procedures for the inspection and
certification of compliance of each cannabis business
establishment prior to being deemed operational.
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(27) Require each cannabis business establishment permit
applicant to provide detailed site plans of its proposed
facility which shall be reviewed and approved by the board
for the purpose of determining the adequacy of the proposed
security and surveillance measures inside and outside the
facility. Applicants shall cooperate with the board in making
changes to the plans suggested by the board and ensure that
the plans as modified and approved are implemented.
(28) Consult with members of the Pennsylvania State
Police, the Office of Attorney General, State agencies and
other persons the board deems necessary for advice regarding
the various aspects of the powers and duties imposed on it
under this subchapter and its jurisdiction over the
authorization and operation of cannabis business
establishment facilities.
(29) Enter into contracts with persons for the purposes
of carrying out the powers and duties of the board under this
subchapter.
(30) Appoint committees and subcommittees as necessary.
The following shall apply:
(i) The chairperson of the board may appoint
advisory committees that may consist of members,
nonmembers, outside experts and staff of the board.
(ii) Only a board member may be chairperson of an
advisory committee.
(iii) An advisory committee or subcommittee may be
formed to address and make recommendations on subjects
determined by the board, including any of the following
topics:
(A) Public health and wellness.
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(B) Community safety and well-being.
(C) Judicial and carceral systems.
(D) Education.
(E) Employment and labor.
(F) Business and entrepreneurship.
(G) Agriculture and food systems.
(H) Medical cannabis program efficiency.
(iv) A department, agency, office or other entity of
the Commonwealth may cooperate and provide the board or
its advisory committees or subcommittees with staff and
expertise to assist the board in carrying out the powers
and duties under this subchapter.
(v) Recognized experts in the subject matter of an
advisory committee or subcommittee of the board may be
appointed to advise and assist the advisory committee or
subcommittee by the board.
(31) Create a cannabis business establishment
registration. The following shall apply:
(i) A cannabis business establishment representative
shall register with the board in a manner prescribed by
the board, which shall include the name, employer or
firm, address, telephone number and the cannabis business
establishment being represented including any and all
aliases.
(ii) A cannabis business establishment
representative shall have an ongoing duty to update its
registration information on an ongoing basis.
(iii) The cannabis business establishment list shall
be available for public inspection at the offices of the
board and on the board's publicly accessible Internet
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website.
Section 208. Confidentiality and public disclosure.
(a) Exempt from access.--All personal information obtained
by the board relating to agents, patients or purchasers shall be
exempt from access under the act of February 14, 2008 (P.L.6,
No.3), known as the Right-to-Know Law.
(b) Public records.--The following records are public
records and shall be accessible for inspection and duplication
in accordance with the Right-to-Know Law:
(1) With exceptions for private, security-related and
trade secret information, applications for permits submitted
by a cannabis business establishment.
(2) Information relating to penalties or other
disciplinary actions taken against a cannabis business
establishment or agent by the board for violation of this
act.
Section 209. Unauthorized activities and civil penalties.
(a) Unauthorized activities.--In addition to any other
penalty provided by Federal or State law, a person who
cultivates, processes, distributes, sells or offers for sale
cannabis, edible or nonedible infused products, cannabis
concentrates, cannabis flower or any product intended for
consumption or inhalation without a permit issued by the board
shall be subject to a civil penalty not to exceed $10,000 for
each offense. Each day a person engages in unpermitted activity
under this subsection shall constitute a separate offense.
(b) Enforcement.--The Attorney General, the board, a State
or local law enforcement agency or a local government unit may
investigate an unpermitted activity under subsection (a) and
engage in enforcement measures, including entering into an
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intergovernmental agreement to prevent the conduct of an
unpermitted activity under subsection (a).
(c) Suspension or revocation.--In addition to any other
penalty provided by Federal or State law, upon the conduct of a
third or subsequent unpermitted activity under subsection (a), a
local government unit may suspend or revoke the permit of the
person who engaged in the unpermitted activity.
(d) Violations.--A violation of subsection (a) 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. All remedies, penalties and authority
granted to the Attorney General under that act shall be
available for the enforcement of this act.
(e) Actions.--In addition to the authority granted to the
Attorney General under this section, an organization or consumer
injured by a violation of subsection (a) may bring an action to
enjoin an organization retailing, cultivating, manufacturing,
distributing or possessing cannabis without a permit and to
recover actual damages sustained. A court shall enter judgment
in an amount equal to three times actual damages and may award
punitive damages in an amount commensurate with actual damages.
The court shall award attorney fees and costs to the prevailing
party.
Section 210. Cannabis Regulation Fund.
(a) Fund established.--The Cannabis Regulation Fund is
established as a separate fund in the State Treasury. Money in
the fund is appropriated as specified in subsection (c).
(b) Source of funds.--Fees payable under this act shall be
deposited into the fund. The money deposited into the fund may
only be used for the purposes specified in this section. Any
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interest accrued shall be deposited into the fund.
(c) Use of proceeds.--After any repayment made under
subsection (d), money in the fund is appropriated in accordance
with the following percentages:
(1) To the board, 55% of the revenue in the fund. Forty
percent of the revenue in the fund shall be expended for
operations of the board, including outreach efforts and other
projects, as required by this act. Fifteen percent of the
amount in the fund shall be used by the board to establish
the following:
(i) a program to assist patients with the cost of
providing medical marijuana to patients who demonstrate
financial hardship or need under this act, and the board
shall develop guidelines and procedures to ensure maximum
availability to individuals with financial need;
(ii) a program to assist patients and caregivers
with the cost associated with the waiver or reduction of
fees for identification cards under sections 331(c)(5)
and 332(a)(2); and
(iii) a program to reimburse caregivers for the cost
of providing background checks for caregivers.
(2) To the Department of Drug and Alcohol Programs, for
drug abuse prevention and counseling and treatment services,
10% of the revenue in the fund.
(3) To the Pennsylvania Commission on Crime and
Delinquency, for distribution to local police departments
which demonstrate a need relating to the enforcement of this
act, 10% of the revenue in the fund.
(4) Any other purpose specified under this act.
(5) The remainder shall be transferred to the General
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Fund to provide economic relief to this Commonwealth.
(d) Repayment of initial funding.--The board shall repay
from the fees and investment earnings of the fund to the General
Fund any money appropriated for the initial planning,
organization and administration by the board with respect to the
establishment of the program at the time of the original
enactment of this act.
(e) Transfers.--As soon as practical after the effective
date of this subsection, the State Treasurer shall transfer the
balance of the Medical Marijuana Program Fund into the Cannabis
Regulation Fund.
(f) Prohibition.--The Cannabis Regulation Fund shall not be
subject to sweeps, administrative charge-backs or any other
fiscal or budgetary maneuver that would transfer money from the
Cannabis Regulation Fund into any other fund of the
Commonwealth.
Section 211. Report of board.
(a) Issuance.--Eighteen months after the effective date of
this subchapter and every year on that date thereafter, the
board shall issue a report to the Governor and each member of
the General Assembly on the general operation of the board and
performance of the operations of cannabis entities and
permittees, including sales during the previous year, all taxes,
fees, fines and other revenues collected and, where appropriate,
disbursed, the costs of operation of the board, all hearings
conducted and the results of the hearings and other information
that the board deems necessary and appropriate.
(b) Reports to General Assembly.--The board shall conduct an
ongoing review of the operation of this act and the impact of
cannabis in this Commonwealth, including reviews of other
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jurisdictions, Federal laws and academic research. The board
shall submit an annual report to the General Assembly by
December 30. The report shall be submitted to the Majority
Leader and Minority Leader of the Senate and the Majority Leader
and Minority Leader of the House of Representatives and the
chairperson and minority chairperson of the standing committees
in the Senate and the chairperson and minority chairperson of
the standing committees in the House of Representatives with
jurisdiction over the board. The report shall be posted by the
board on its publicly accessible Internet website.
Section 212. Authority.
(a) Sole authority.--The board shall have general and sole
regulatory authority over the conduct of cannabis or related
activities as described in this act and shall administer and
enforce the provisions of this act. The board shall have all the
powers necessary or convenient to carry out and effectuate its
purposes in administering the cannabis program.
(b) Granted authority.--An authority granted to a
Commonwealth agency or Commonwealth employee or appointee under
this act shall be given to the Commonwealth agency or employee
or appointee empowered to permit, discipline, revoke, regulate
or make regulations under this act.
Section 213. Transfer of authority.
(a) Department of Health.--The Department of Health's
oversight of the medical marijuana program shall be transferred
to the board. All authority, permits, information, documents,
databases and necessary information of the medical marijuana
program shall be transferred to the board.
(b) Process.--The transfer under subsection (a) shall begin
on the earlier of 14 days after the effective date of this
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subchapter or the day after an interim executive director is
confirmed by the Senate and be completed within 180 days. The
following shall apply:
(1) The board shall exercise the authority and perform
the duties of the Department of Health.
(2) The executive director shall exercise the authority
and perform the duties of the Secretary of Health.
(3) Any reference to the Department of Health which
concerns the powers or duties specified shall be deemed a
reference to the board.
(4) Any reference to the Secretary of Health which
concerns the powers or duties specified shall be deemed a
reference to the executive director.
(5) The following are transferred to the board:
(i) All personnel, allocations, appropriations,
equipment, files, permits, records, contracts,
agreements, obligations and other materials which are
used, employed or expended by the Department of Health in
connection with the functions transferred under this
section to the board and as if the contracts, agreements
and obligations had been incurred or entered into by the
board.
(ii) The personnel, appropriations, equipment and
other items and material transferred to the board under
this section shall include an appropriate portion of the
general administrative, overhead and supporting
personnel, appropriations, equipment and other material
of the Department of Health and shall include, where
applicable, Federal grants and money and other benefits
from any Federal program.
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(iii) All personnel transferred under this section
shall retain any civil service employment status assigned
to the personnel.
(6) To provide an efficient and cost-minimizing
transition, licenses, contracts, deeds and other official
actions of the board shall not be affected by the use of the
designation as the Department of Health. The board may
continue to use the name "Department of Health" on badges,
licenses, contracts, deeds, stationery and other official
documents until existing supplies are exhausted or new
materials are produced.
(7) To provide an efficient and cost-minimizing
transition, licenses, contracts, deeds and other official
actions of the executive director shall not be affected by
the use of the designation as the Secretary of Health. The
executive director may continue to use the name "Secretary of
Health" on badges, licenses, contracts, deeds, stationery and
other official documents until existing supplies are
exhausted.
SUBCHAPTER B
(Reserved)
SUBCHAPTER C
LAWFUL USE OF CANNABIS
Section 221. Lawful use of cannabis.
Beginning 180 days after the effective date of this section,
notwithstanding any other provision of law and except as
otherwise specified under this chapter or Chapter 3, the
following acts shall not be a violation of this chapter and
shall not be a criminal or civil offense under State law or an
ordinance of a local government unit of this Commonwealth or be
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a basis for seizure or forfeiture of assets under State law for
an individual other than an individual younger than 21 years of
age, unless that individual, and the individual's caregiver, if
applicable, is authorized under Chapter 3 to:
(1) possess, consume, use, purchase, obtain or transport
cannabis in an amount for personal use that does not exceed
the possession limit or requirements;
(2) possess, use, obtain or transport cannabis
paraphernalia;
(3) transfer without remuneration, within lawful
possession limits, to an individual 21 years of age or older;
and
(4) control property if actions that are authorized by
this chapter occur on the property in accordance with this
chapter.
Section 222. Possession limits.
(a) Limits.--Except as otherwise authorized under this
chapter or Chapter 3, for an individual who is 21 years of age
or older who is not a patient, the possession limits for
cannabis shall be as follows and cumulative:
(1) Thirty grams of cannabis flower.
(2) No more than 1,000 milligrams of THC contained in
cannabis-infused edible products or cannabis-infused non-
edible products.
(3) Five grams of cannabis concentrate.
(b) Prohibitions.--The following acts are prohibited:
(1) Knowingly obtaining, seeking to obtain or possessing
an amount of cannabis from a dispensing organization that
would exceed the possession limit under this section,
including cannabis that is cultivated by a person under
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Chapter 3.
(2) Possession by an individual 21 years of age or older
of more than the possession limit of cannabis.
(3) 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.
(4) Cultivation or processing of cannabis or cannabis
product by a person that is not authorized to do so under
this act.
(5) Smoking or otherwise vaping 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.
(c) Civil penalty.--An individual who violates subsection
(b)(5) shall be assessed a civil penalty of not more than:
(1) $250 for a first offense.
(2) $1000 for a second or subsequent offense.
(d) Definition.--As used in this section, 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.
Section 223. Individuals younger than 21 years of age.
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(a) Prohibition.--An individual younger than 21 years of age
may not purchase, possess, use, process, transport, grow or
consume cannabis except as authorized under Chapter 3.
(b) Penalties for underage cannabis offenses.--
(1) An individual who violates subsection (a) may be
sentenced to pay a fine of not more than $250 for the first
offense and not more than $1,000 for a second offense and
each subsequent violation by a court of competent
jurisdiction.
(2) A State or local law enforcement agency shall keep a
record of a violation of subsection (a) in a repository or
database separate from a repository or database with other
law enforcement records. A record of a violation of
subsection (a) shall only be used to determine if an
individual committed a subsequent violation of subsection
(a). A State or local law enforcement agency shall destroy a
record of a violation of subsection (a) when the individual
who committed the offense attains 21 years of age.
(3) A State or local law enforcement agency responsible
for enforcing a violation of subsection (a) shall notify the
parent or guardian of the individual who committed the
offense if the individual is younger than 18 years of age.
(4) When an individual is charged for violating
subsection (a), the magisterial district judge may admit the
offender to the adjudication alternative as authorized under
42 Pa.C.S. § 1520 (relating to adjudication alternative
program) or any other preadjudication disposition if the
individual has not previously received a preadjudication
disposition for violating subsection (a).
Section 224. Identification.
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A purchaser must present a valid identification to purchase
cannabis under this chapter. A valid identification shall mean
an unexpired government-issued identification containing a
photograph and the date of birth of the individual.
Section 225. Immunities and presumptions related to use of
cannabis by purchasers, patients and caregivers.
(a) Penalty applicability.--A purchaser, patient or
caregiver who is 21 years of age or older shall not be subject
to arrest, prosecution, denial of a right or privilege or other
punishment, including, a civil penalty or disciplinary action
taken by an occupational or professional licensing or permitting
board based solely on any of the following:
(1) The use or possession of cannabis, if:
(i) the purchaser, patient or caregiver possesses an
amount of cannabis that does not exceed the possession
limit as specified in section 222 or under Chapter 3; and
(ii) the use of cannabis does not impair the
purchaser or patient when engaged in the practice of the
profession for which the purchaser is licensed,
permitted, certified or registered.
(2) Being in the presence or vicinity of the use of
cannabis or cannabis paraphernalia as authorized under this
chapter or Chapter 3.
(3) Possessing cannabis paraphernalia.
(b) Determination of probable cause.--
(1) Mere possession of or application for authorization
to work as a cannabis business establishment agent or the
agent identification card shall not:
(i) constitute probable cause or reasonable
suspicion to believe that a crime has been committed; or
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(ii) be used as the sole basis to support the search
of the person, property or residence of the individual
authorized to work as a cannabis business establishment
agent, possessing an agent identification card or
applying for authorization to work as an agent.
(2) The possession of or application for authorization
to work as a cannabis business establishment agent or
possession of an agent identification card shall not preclude
the existence of probable cause if probable cause exists
based on other grounds.
(c) Reliance.--An individual employed by the Commonwealth or
a local government unit shall not be subject to criminal or
civil penalties for taking an action in good faith in reliance
on the provisions of this chapter or Chapter 3 when acting
within the scope of employment.
(d) Law enforcement liability.--A law enforcement or
correctional agency, or an employee of a law enforcement or
correctional agency, shall not be subject to criminal or civil
liability, except for willful and wanton misconduct, as a result
of taking an action within the scope of the official duties of
the law enforcement or correctional agency or employee to
prohibit or prevent the possession or use of cannabis by any of
the following:
(1) An individual incarcerated at a correctional
institution, county jail or other facility under the
supervision of the Department of Corrections.
(2) An individual on parole or mandatory supervised
release or otherwise under the lawful jurisdiction of the law
enforcement or correctional agency or employee, except for
any use in accordance with Chapter 3.
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Section 226. Discrimination prohibited.
(a) Child welfare.--The presence of cannabinoid component or
metabolites in an individual's bodily fluids, possession of
cannabis-related paraphernalia, conduct related to the use of
cannabis or the participation in cannabis-related activities
authorized under this chapter by a custodial or noncustodial
parent, grandparent, legal guardian, foster parent or other
individual charged with the well-being of a child, may not form
the sole, primary basis or supporting basis for an action or
proceeding by a child welfare agency or family or juvenile
court. Unless the individual's actions in relation to cannabis
create an unreasonable danger to the 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 under this chapter
or Chapter 3:
(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
trusteeship.
(3) The execution of a will or the management of an
estate.
(b) Child custody.--The purchase or possession of cannabis
under this chapter or Chapter 3 shall not be a determining
factor in a child custody matter. The record of a legal purchase
of cannabis shall not be subject to disclosure solely due to a
custody action.
(c) Landlords.--A landlord may not be penalized or denied a
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benefit of leasing to an individual who uses cannabis under this
chapter or Chapter 3.
(d) Use in private area.--Nothing in this chapter or Chapter
3 may be construed to require a person or establishment in
lawful possession of property to allow a guest, client, lessee,
purchaser or visitor to use cannabis on or in that property,
including on land owned in whole or in part or managed in whole
or in part by the Commonwealth.
(e) Medical care.--For the purpose of receiving medical
care, including an organ transplant, an individual's use of
cannabis under this chapter or Chapter 3 shall not constitute
the use of an illicit substance or otherwise disqualify an
individual from medical care.
Section 227. Limitations.
(a) General limitations.--This chapter shall not permit an
individual to engage in and shall not prevent the imposition of
a civil, criminal, disqualification from purchasing cannabis as
authorized under this chapter and Chapter 3 or other penalty for
engaging in any of the following:
(1) Undertaking a task under the influence of cannabis
when doing so would constitute negligence, professional
malpractice or professional misconduct.
(2) Possessing cannabis:
(i) in a school bus, unless permitted for a patient
or caregiver under Chapter 3;
(ii) on the grounds of a preschool or primary or
secondary school, unless permitted for a patient or
caregiver under Chapter 3;
(iii) in a correctional institution, unless
permitted for a patient or caregiver under Chapter 3;
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(iv) in a vehicle, unless the cannabis is in a
cannabis container and reasonably inaccessible while the
vehicle is moving; or
(v) in a private residence that is used at any time
to provide permitted childcare or other similar social
service care on the premises, unless permitted for a
patient or caregiver under Chapter 3.
(3) Using cannabis:
(i) in a school bus, unless permitted for a patient
or caregiver under Chapter 3;
(ii) on the grounds of a preschool or primary or
secondary school, unless permitted for a patient or
caregiver under Chapter 3;
(iii) in a correctional institution, unless
permitted for a patient or caregiver under Chapter 3;
(iv) in a motor vehicle, unless permitted for a
patient or caregiver under Chapter 3;
(v) in a private residence that is used at any time
to provide permitted child care or other similar social
service care on the premises, unless permitted for a
patient or caregiver under Chapter 3; or
(vi) knowingly in close physical proximity to an
individual younger than 21 years of age.
(4) Operating, navigating or being in actual physical
control of any motor vehicle, aircraft, watercraft or
snowmobile while using or under the influence of cannabis.
(5) Facilitating the use of cannabis by an individual
who is not authorized to use cannabis under this chapter or
Chapter 3.
(6) Transferring cannabis to an individual in violation
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of this chapter or Chapter 3.
(7) The use of cannabis by a law enforcement officer,
constable, corrections officer, probation officer or
firefighter while on duty.
(8) The use of cannabis by an individual who has a
commercial driver's license while on duty.
(b) Supremacy implication.--Nothing in this chapter shall be
construed to authorize or otherwise require an individual or
business entity to violate Federal law, including the ability to
consume cannabis in public housing or on college or university
campuses.
Section 228. Employment and employer liability.
(1) An employer may not discharge, threaten, refuse to
hire or otherwise discriminate or retaliate against an
employee regarding an employee's compensation, terms,
conditions, location or privileges solely on the basis of the
employee's status as an individual who is certified to use
medical cannabis.
(2) Nothing in this act shall require an employer to
make any accommodation of the use of medical cannabis on the
property or premises of any place of employment.
(3) Nothing in this act shall require an employer to
commit or refuse to commit any act that would put the
employer or any person acting on its behalf in violation of
Federal law.
(4) An employer may require employees or job applicants
who have received a conditional offer of employment to submit
to a drug test, including a test for cannabis, for safety-
sensitive positions. An employer may make an adverse
employment decision against an employee or job applicant who
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has provided an adulterated or substituted testing sample or
has refused to submit to a lawful drug test required by an
employer.
(5) An employer or entity that provides employment
services or information may indicate that a job position is
safety sensitive and the job position's application process
or the job may require a drug test.
(6) An employer may require an employee or job applicant
who has received a conditional employment offer to disclose
and produce a valid identification card if the employee's
position, or the position for which the job applicant is
applying, is a safety-sensitive position. An employer may
make an adverse employment decision against an employee or
job applicant who fails to disclose and produce a valid
identification card under this act, and the employer shall
not be in violation of paragraph (1).
(7) An employer may make an adverse employment decision
against an employee or job applicant who discloses and
produces a valid identification card or who uses medical
cannabis if the employee's position, or the position for
which the job applicant is applying, is a safety-sensitive
position, and the employer shall not be in violation of
paragraph (1), if the employer has engaged in an interactive
process with the employee or applicant to evaluate the
individual's ability to perform the essential functions of
the position with or without reasonable accommodation.
(8) An employer may make an adverse employment decision
against an employee if the employee's use of medical cannabis
decreases or lessens the employee's job performance or
ability to perform the employee's job duties, and the
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employer shall not be in violation of paragraph (1) if the
employer has engaged in an interactive process with the
employee or applicant to evaluate the individual's ability to
perform the essential functions of the position with or
without reasonable accommodation.
(9) Nothing in this section shall be construed to
invalidate or void any rights, benefits or procedures
afforded to an employee under an existing collective
bargaining agreement.
(10) Nothing in this section shall be construed to
create or permit a cause of action for an employee or job
applicant against an employer for:
(i) Any claim that arises following an employee's or
job applicant's noncompliance with this section and which
the employee or job applicant may have prevented the
claim had they complied.
(ii) Actions taken pursuant to an employer's lawful
workplace drug policy, including subjecting an employee
or job applicant to a lawful drug and alcohol test,
lawful and nondiscriminatory random drug test and
discipline, termination of employment or withdrawal of a
job offer after a failure of a drug test.
(iii) Actions based on the employer's good faith
belief that an employee used or possessed medical
cannabis in the employer's workplace or while performing
the employee's job duties or while on call in violation
of the employer's lawful employment policies.
(iv) Actions based on the employer's good faith
belief that an employee was impaired as a result of the
use of cannabis, under the influence of cannabis while at
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the employer's workplace, under the influence while
performing the employee's job duties or under the
influence while on call in violation of the employer's
lawful workplace drug policy.
(11) If an employer makes an adverse employment decision
against an employee or job applicant under this act, the
employee or job applicant may not challenge the adverse
employment decision under any other State or local law.
SUBCHAPTER D
(Reserved)
SUBCHAPTER E
DISPROPORTIONATELY IMPACTED AREA AND SMALL BUSINESS
Section 241. Disproportionately impacted area and small
business.
(a) Partnership.--The board shall partner with the
Department of Community and Economic Development in facilitating
grants and loans under this chapter.
(b) Report.--Beginning the first year after the effective
date of this act, the board, with the assistance of the
Department of Community and Economic Development as necessary,
shall prepare and issue a public report that assesses the extent
of diversity in the cannabis industries and methods for reducing
or eliminating any identified barriers to entry, including
access to capital. The information reported shall include all of
the following:
(1) The number and percentage of permits provided to
disproportionately impacted area applicants, small business
applicants and businesses owned by minorities, women,
veterans and individuals with disabilities.
(2) The total number and percentage of employees in the
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cannabis industry who meet the definition of a
disproportionately impacted area applicant or small business
applicant or who are minorities, women, veterans or people
with disabilities.
(3) The total number and percentage of contractors and
subcontractors in the cannabis industry that meet the
criteria of disproportionately impacted area applicants or
small business applicants or that are owned by minority-owned
businesses, women-owned businesses, veteran-owned businesses
or owned by individuals with disabilities, if known to the
cannabis business establishment.
(4) Recommendations on reducing or eliminating any
identified barriers to entry, including access to capital, in
the cannabis industry.
Section 242. Grants and loans to disproportionately impacted
area and small business applicants.
(a) Grant and loan programs.--The Department of Community
and Economic Development shall establish grant and loan
programs, subject to appropriations from the Cannabis Regulation
Fund, for the purposes of providing financial assistance,
grants, loans and technical assistance to disproportionately
impacted area and small business applicants. The Department of
Community and Economic Development may:
(1) provide cannabis disproportionately impacted area
grants and loans from appropriations from the Cannabis
Regulation Fund to assist qualified disproportionately
impacted area applicants and small business applicants in the
Commonwealth's regulated cannabis marketplace;
(2) enter into agreements that state the terms and
conditions of the financial assistance, accept funds or
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grants and engage in cooperation with private entities and
Commonwealth agencies or local government to carry out the
purposes of this section;
(3) fix, determine, charge and collect any premiums,
fees, charges, costs and expenses, including application
fees, commitment fees, program fees, financing charges or
publication fees, in connection with the Department of
Community and Economic Development activities under this
section;
(4) coordinate assistance under loan programs with
activities of the board and other Commonwealth agencies as
needed to maximize the effectiveness and efficiency of this
chapter;
(5) provide staff, administration and related support
required to administer this section;
(6) take other necessary or appropriate actions to
protect the Commonwealth's interest in the event of
bankruptcy, default, foreclosure or noncompliance with the
terms and conditions of financial assistance provided under
this section, including the ability to recapture funds if the
recipient is found to be in noncompliance with the terms and
conditions of the financial assistance agreement;
(7) establish application, notification, contract and
other forms, procedures or regulations deemed necessary and
appropriate; and
(8) utilize vendors or contract work to implement this
chapter.
(b) Conditions of loans.--Loans made under this section
shall meet all of the following criteria:
(1) Only be made if, in the judgment of the Department
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of Community and Economic Development, the project furthers
the goals specified under this chapter.
(2) 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 Department of Community and Economic
Development shall determine appropriate to protect the public
interest and to be consistent with the purposes of this
section.
(c) Award of grants.--Grants made under this section shall
be awarded on a competitive and annual basis and shall further
and promote the goals of this chapter, job training and
workforce development and technical assistance to
disproportionately impacted area applicants.
(d) Annual report.--Beginning January 1, 2027, and each year
thereafter, the Department of Community and Economic Development
shall annually report to the Governor, the General Assembly and
the board on the outcomes and effectiveness of this section,
including all of the following:
(1) The number of persons or businesses receiving
financial assistance under this section.
(2) The amount in financial assistance awarded in the
aggregate, in addition to the amount of loans made that are
outstanding and the amount of grants awarded.
(3) The location of the project engaged in by the person
or business.
(4) If applicable, the number of new jobs and other
forms of economic output created as a result of the financial
assistance.
Section 243. Transfer of permit awarded to qualified
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disproportionately impacted area or small business
applicant.
(a) Transfer, sale or grant of permit.--In the event a
qualified disproportionately impacted area or small business
applicant seeks to transfer, sell or grant a cannabis business
establishment permit to an individual or entity that does not
qualify as a disproportionately impacted area or small business
applicant after one year from the date of operation and within
five years after operation, the transfer agreement shall require
the new permit holder to pay the board an amount equal to all
the following for deposit into the Cannabis Regulation Fund:
(1) Fees that were waived by any Commonwealth agency
based on the applicant's status as a disproportionately
impacted area or small business applicant, if applicable.
(2) The outstanding amount owed by the qualified
disproportionately impacted area or small business applicant
for a loan through the Cannabis Regulation Fund, if
applicable.
(3) The full amount of a grant that the qualified
disproportionately impacted area or small business applicant
received from the Department of Community and Economic
Development, if applicable.
(b) Applicability.--Transfers of a cannabis business
establishment permit awarded to a disproportionately impacted
area or small business applicant shall be subject to all other
provisions of this chapter.
SUBCHAPTER F
REGULATION OF CANNABIS BUSINESS ESTABLISHMENTS
Section 251. Permit required.
A person may not operate a cannabis business establishment
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for the purpose of cultivating, processing, dispensing or
transporting cannabis or cannabis-infused edible products or
cannabis-infused non-edible products without a permit issued
under this chapter. A person may not be an officer, director,
manager or agent of a cannabis business establishment without
having been authorized by the board.
Section 252. Authorization of current medical cannabis
organizations to commence dispensing cannabis to
purchasers.
(a) Dual-use permits.--A medical cannabis organization
holding a dispensary permit granted under this chapter on the
effective date of this subsection may submit an application for
a dual-use permit to commence selling cannabis to purchasers at
a dispensary operating under this chapter and Chapter 3.
(a.1) Prohibitions.--A current medical cannabis organization
and any principal officer of a medical cannabis organization may
not hold or be affiliated with more than 24 dispensary
storefronts under one or a combination of dispensary permit
types.
(b) Application requirements.--The application under
subsection (a) must be submitted by the same individual or
entity that holds the medical cannabis dispensary permit and
include the following:
(1) Payment of a nonrefundable application fee of
$100,000 per permit to be deposited into the Cannabis
Regulation Fund.
(2) Proof of registration as a medical cannabis
dispensary that is in good standing.
(3) Certification that the applicant will comply with
the requirements contained under this chapter and Chapter 3,
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except as provided in this chapter.
(4) The legal name of the dispensary permit holder.
(5) The physical address of the dispensary at each of
its locations.
(6) The name, address, Social Security number and date
of birth of each principal officer and board member of the
dispensary permit holder, each of whom must be at least 21
years of age.
(c) Delay or inhibit operations.--The failure of the board
to be seated or to promulgate regulations shall not delay or
inhibit the ability of a medical cannabis organization under
subsection (a) from commencing the sale of cannabis to
purchasers at a dispensary operating under this chapter. If the
board is not seated within 180 days from the effective date of
this subsection or if the board otherwise fails to authorize a
medical cannabis organization under subsection (a) from
commencing the sale of cannabis to purchasers at a dispensary
operating under this chapter within 180 days from the effective
date of this subsection, the medical cannabis organization
shall automatically be authorized to commence cannabis sales to
purchasers if the fee and application were submitted.
Section 253. Issuance of dispensary permits to qualified
applicants in disproportionately impacted area.
(a) Disproportionately impacted area dispensary permits.--In
addition to the dual-use permits authorized under section 252,
the board shall issue dispensary permits to qualified
disproportionately impacted area applicants. The permit shall
authorize the disproportionately impacted area dispensary permit
holder to operate at a single location to serve purchasers and
patients in this Commonwealth. The board may issue up to 15
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disproportionately impacted area dispensary permits.
(b) Limitation.--An applicant may file no more than three
applications for a disproportionately impacted area dispensary
permit in any single application period.
(c) Applications.--A qualified disproportionately impacted
area applicant seeking the issuance of a dispensing organization
permit shall submit an application on a form provided by the
board. The application shall include information in at least the
following categories as determined by the board:
(1) A payment of a nonrefundable application fee of
$50,000.
(2) A business plan that complies with the requirements
under this chapter.
(3) A security plan.
(4) A seed-to-sale tracking system.
(5) A plan for community engagement.
(6) Written policies and procedures regarding
recordkeeping, seed-to-sale tracking system, safety,
security, diversion and diversity.
(7) Facility plans, including the proposed physical
address, floor plans, security overlay and specifications of
the building exterior and interior layout.
(8) Documented ownership or control of the property.
(9) A copy of each relevant local zoning ordinance and
documentation, if necessary, of approval from the local
zoning office that the proposed dispensary location is in
compliance with each local zoning ordinance.
(10) Information regarding each principal officer.
(11) Evidence of the applicant's status as a
disproportionately impacted area applicant.
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(d) Deficiency notice.--If the board receives an application
that fails to provide the required elements contained in
subsection (c), other than information relevant to all of each
of the applicant's dispensary locations, the board shall issue a
deficiency notice to the applicant. The applicant shall have 30
calendar days from the date of the deficiency notice to submit
the complete information.
(e) Review.--
(1) Upon receipt of all of the required information and
documents under this section, the board shall review the
application of the qualified disproportionately impacted area
applicant.
(2) The board may request revisions over retail site
features.
(3) The board shall approve the permit, subject to
paragraph (4), if satisfied the application is complete.
(4) Final approval for each individual dispensary
location shall be contingent on the completion of
construction of the dispensary location, board inspections
and providing the board with any information relating to the
dispensary location that was not provided during the initial
application process.
(f) Authorization.--The board may only authorize the sale of
cannabis at a disproportionately impacted area dispensary permit
holder's dispensary location after the completion of a
successful inspection of the location. The board shall inspect
the location within 14 days of a written request by a
disproportionately impacted area dispensary permit holder.
(g) Successful inspection.--If the permit holder passes the
inspection under this section, the board shall authorize the
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sale of cannabis at the dispensary within 10 business days.
(h) Notification of opening date.--Once the board has
authorized the sale of cannabis at a disproportionately impacted
area dispensary location, the disproportionately impacted area
dispensary permit holder shall notify the board of the proposed
opening date.
(i) Deposit.--All fees collected under this section shall be
deposited into the Cannabis Regulation Fund, unless otherwise
specified.
Section 253.1. Issuance of small business dispensary permits.
(a) Small business dispensary permits.--In addition to the
dual-use permits authorized under sections 252 and 253, the
board shall issue dispensary permits to small business
applicants. The permit shall authorize the small business
dispensary permit holder to operate at a single location to
serve purchasers and patients in this Commonwealth. The board
may issue up to 15 small business dispensary permits.
(b) Limitation.--An applicant may file no more than three
applications for a small business dispensary permit in any
single application period.
(c) Applications.--A qualified small business applicant
seeking the issuance of a dispensing organization permit shall
submit an application on a form provided by the board. The
application shall include information in at least the following
categories as determined by the board:
(1) A payment of a nonrefundable application fee of
$50,000.
(2) A business plan that complies with the requirements
under this chapter.
(3) A security plan.
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(4) A seed-to-sale tracking system.
(5) A plan for community engagement.
(6) Written policies and procedures regarding
recordkeeping, seed-to-sale tracking system, safety,
security, diversion and diversity.
(7) Facility plans, including the proposed physical
address, floor plans, security overlay and specifications of
the building exterior and interior layout.
(8) Documented ownership or control of the property.
(9) A copy of each relevant local zoning ordinance and
documentation, if necessary, of approval from the local
zoning office that the proposed dispensary location is in
compliance with each local zoning ordinance.
(10) Information regarding each principal officer.
(11) Evidence of the applicant's status as a small
business applicant.
(d) Deficiency notice.--If the board receives an application
that fails to provide the required elements contained in
subsection (c), other than information relevant to all of each
of the applicant's dispensary locations, the board shall issue a
deficiency notice to the applicant. The applicant shall have 30
calendar days from the date of the deficiency notice to submit
the complete information.
(e) Review.--
(1) Upon receipt of all of the required information and
documents under this section, the board shall review the
application of the small business applicant.
(2) The board may request revisions over retail site
features.
(3) The board shall approve the permit, subject to
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paragraph (4), if satisfied the application is complete.
(4) Final approval for each individual dispensary
location shall be contingent on the completion of
construction of the dispensary location, board inspections
and providing the board with any information relating to the
dispensary location that was not provided during the initial
application process.
(f) Authorization.--The board may only authorize the sale of
cannabis at a small business dispensary permit holder's
dispensary location after the completion of a successful
inspection of the location. The board shall inspect the location
within 14 days of a written request by a small business
dispensary permit holder.
(g) Successful inspection.--If the permit holder passes the
inspection under this section, the board shall authorize the
sale of cannabis at the dispensary within 10 business days.
(h) Notification of opening date.--Once the board has
authorized the sale of cannabis at a small business dispensary
location, the small business dispensary permit holder shall
notify the board of the proposed opening date.
(i) Deposit.--All fees collected under this section shall be
deposited into the Cannabis Regulation Fund, unless otherwise
specified.
Section 254. New dispensing organization permits.
(a) Additional permits.--
(1) The board shall be the exclusive entity authorized
to issue new dispensing organization permits. Separate and
apart from any dispensing organization permits issued to a
medical cannabis organization under section 252 or 253, the
board shall conduct a comprehensive market analysis annually
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for the first three years and then at least once every three
years thereafter to determine whether a need exists to modify
or raise the number of dispensary permits.
(2) In determining whether to exercise the authority
granted under this subsection, the board shall consider the
following factors:
(i) Whether there is an adequate supply of cannabis
and cannabis-infused edible products and cannabis-infused
non-edible products to serve patients under Chapter 3 and
purchasers under this chapter.
(ii) Population increases or shifts.
(iii) The density of dispensaries in any area of
this Commonwealth.
(iv) Perceived security risks of increasing the
number or location of dispensaries.
(v) The past safety record of dispensary permittees.
(vi) The board's capacity to appropriately regulate
additional permittees.
(vii) Other criteria the board deems relevant.
(b) (Reserved).
Section 255. Selection criteria for new dispensing organization
permits.
(a) Incomplete application.--Failure by an applicant to
submit to the board all required information under this act may
result in the application being disqualified. If the board
receives an application that fails to provide the required
elements in a section, that section shall not be scored.
(b) Scoring criteria.--An applicant for a new dispensing
organization permit shall be awarded points on applications as
determined by the board.
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(c) Anonymity.--Applications for new dispensing organization
permits shall be scored by the board anonymously in accordance
with regulations promulgated by the board, which shall include
tie-breaker language that governs the process through which some
applicants are to be awarded permits when multiple applicants
receive the same application score and the awarding of permits
to all tied applicants would result in awarding more permits
than is permissible under this chapter. Any tie-breaking process
shall be designed to ensure clarity, transparency and fairness.
(d) Review.--Each application for a new dispensing
organization permit shall be reviewed and scored by three
individuals who score each application independently. An
applicant's score in each category under subsection (b) shall be
an average of the three scores awarded by each individual score.
An applicant may not receive full points simply for providing
responsive information on a section of the application.
Section 256. Dispensing organization operational requirements
and prohibitions.
A dispensing organization shall operate in accordance with
the representations made in its application and permit
materials. A dispensing organization shall be in compliance with
this chapter and the regulations promulgated under this chapter.
The following shall apply:
(1) All cannabis, cannabis concentrates, edible and non-
edible infused products and cannabis seeds shall be obtained
from a cultivation center, micro cultivation center or
another dispensary registered in this Commonwealth.
(2) A dispensing organization:
(i) Shall include the legal name of the dispensary
on the packaging of any edible or non-edible infused
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product the dispensing organization sells.
(ii) Shall inspect and count product received from a
micro cultivation center or other dispensing organization
before dispensing it.
(iii) Shall only accept cannabis deliveries into a
restricted access area. Deliveries may not be accepted
through the public or limited access areas unless
otherwise approved by the board.
(iv) Shall maintain compliance with Commonwealth and
local building, fire and zoning requirements or
regulations.
(v) Shall submit a list to the board of the names of
all service professional organizations that will work at
the dispensary. The list shall include a description of
the type of business or service provided. The board shall
be promptly notified of any changes to the service
professional list. No service professional shall work in
the dispensary until the name is provided to the board on
the service professional list.
(vi) May operate between 8 a.m. and 10 p.m. local
time or as determined by the local municipality.
(vii) Shall keep all lighting outside and inside the
dispensary in good working order and wattage sufficient
for security cameras.
(viii) Shall keep all air treatment systems that
will be installed to reduce odors in good working order.
(ix) Shall ensure that any building or equipment
used by a dispensing organization for the storage or sale
of cannabis is maintained in a clean and sanitary
condition.
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(x) Shall be free from infestation by insects,
rodents or pests.
(xi) Shall develop a recall policy and procedure as
approved by the board.
(3) A dispensing organization may not:
(i) Cultivate, process or manufacture cannabis.
(ii) Accept an edible or non-edible infused product
from a cultivation center, micro cultivation center or
dispensing organization unless it is prepackaged and
labeled in accordance with this chapter and regulations
that may be promulgated in accordance with this chapter.
(iii) Obtain cannabis, edible or non-edible infused
products from outside this Commonwealth.
(iv) Sell cannabis, edible or non-edible infused
products to a purchaser unless the individual is
registered under Chapter 3 or the purchaser has been
verified to be 21 years of age or older.
(v) Refuse to conduct business with a cultivation
center or micro cultivation center that can properly
deliver the product and is permitted by the board.
(vi) Operate a dispensary if the:
(A) Dispensary organization's video surveillance
equipment is inoperative.
(B) Point-of-sale equipment is inoperative.
(C) Cannabis seed-to-seed tracking system is
inoperative, unless the dispensing organization has
the ability to record transactions to upload to the
cannabis seed-to-seed tracking system once the system
is operational.
(vii) Have fewer than two individuals working at any
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time while the dispensary is open.
(viii) Sell clones or any other live plant material,
unless otherwise authorized by this chapter.
(ix) Violate any other requirements or prohibitions
specified by the board.
Section 257. Dispensing cannabis.
(a) Dispensing criteria.--Prior to a cannabis business
establishment agent dispensing cannabis to a purchaser, the
agent shall:
(1) Verify the age of the purchaser and validity of the
government-issued identification card of the purchaser or
patient identification card by use of an electronic reader or
electronic scanning device, unless otherwise permitted by the
board, to scan a purchaser's government-issued
identification, if applicable.
(2) Enter the following information into the seed-to-
sale tracking system:
(i) The cannabis business establishment agent
identification card and dispensing cannabis business
establishment agent's identification number.
(ii) The amount and type, including strain, if
applicable, of cannabis, edible or non-edible infused
product dispensed.
(iii) The date and time the cannabis, edible or non-
edible infused product was dispensed.
(b) Refusal to sell.--A dispensing organization shall refuse
to sell cannabis, edible or non-edible infused products under
any of the following circumstances:
(1) To an individual unless the individual produces
valid identification showing that the individual is 21 years
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of age or older. However, a dispensing organization under
Chapter 3 may sell cannabis, edible and non-edible infused
products to an individual who is younger than 21 years of age
if the sale complies with the provisions of Chapter 3.
(2) To an individual who is disqualified by the board.
Section 258. Agent-in-charge.
(a) Designation.--A dispensing organization shall designate,
at a minimum, one agent-in-charge for each permitted dispensary.
The designated agent-in-charge shall hold a cannabis business
establishment agent identification card. Maintaining an agent-
in-charge shall be a continuing requirement for the dispensary
organization permit, except as provided under subsection (e).
(b) Requirements.--The agent-in-charge shall be an on-site
manager or a full-time agent of the dispensing organization and
shall manage the dispensary. Managing the dispensary shall
include responsibility for opening and closing the dispensary,
delivery acceptance, oversight of sales and cannabis business
establishment agents, recordkeeping, inventory, cannabis
business establishment agent training and compliance with this
chapter, including the responsibility for maintaining all files
subject to audit or inspection by the board at the dispensary.
Except for a determination that a dispensary employee has
diverted cannabis, edible or non-edible infused products or has
intentionally dispensed cannabis, edible or non-edible infused
products in a manner not consistent with this chapter, which
shall be reported to the board within 48 hours, the agent-in-
charge shall, within 10 days, notify the board of a change of
information required to be reported to the board.
(c) Determination.--In determining whether an agent-in-
charge manages the dispensary, the board may consider the
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responsibilities identified in this section, the number of
cannabis business establishment agents under the supervision of
the agent-in-charge and the employment relationship between the
agent-in-charge and the dispensing organization, including the
existence of a contract for employment and any other relevant
fact or circumstance.
(d) Change in status.--The agent-in-charge shall be
responsible for notifying the board of a change in the
employment status of any cannabis business establishment agent
within 10 business days after the change, including notice to
the board if the termination of an agent was for diversion of
product or theft of currency.
(e) Vacancy.--In the event of the separation of an agent-in-
charge due to death, incapacity, termination or any other reason
and if the dispensary does not have an active agent-in-charge,
the dispensing organization shall immediately contact the board
and request temporary authority allowing the continuing
operation. The request shall include the name of an interim
agent-in-charge until a succeeding agent-in-charge is identified
or shall include the name of the replacement. The board may not
delay in granting the temporary authority, and the dispensing
organization shall be permitted to operate while obtaining board
approval for an interim agent-in-charge. A temporary authority
may not be valid for more than 90 days. The succeeding agent-in-
charge shall register with the board in compliance with this
section. Once the permanent succeeding agent-in-charge is
registered with the board, the temporary authority shall be
void.
(f) Registration.--The dispensing organization agent-in-
charge registration shall expire two years from the date of
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issuance. The agent-in-charge's registration shall be renewed
biannually.
(g) Termination.--Upon termination of an agent-in-charge's
employment, the dispensing organization shall immediately
reclaim the cannabis business establishment agent identification
card. The dispensing organization shall promptly return the
agent identification card to the board.
(h) Application denial.--The board may deny a new
application or a renewal or discipline or revoke an agent-in-
charge identification card for any of the following reasons:
(1) submission of misleading, incorrect, false or
fraudulent information in the application or renewal
application;
(2) violation of the requirements of this chapter or
regulations;
(3) fraudulent use of an agent identification card;
(4) selling, distributing, transferring in any manner or
giving cannabis to any unauthorized person;
(5) theft of cannabis, currency or any other items from
a dispensary;
(6) tampering with, falsifying, altering, modifying or
duplicating an agent-in-charge identification card;
(7) tampering with, falsifying, altering or modifying
the surveillance video footage, point-of-sale system,
cannabis seed-to-sale tracking system or the Commonwealth's
verification system;
(8) failure to notify the board immediately upon
discovery that the agent-in-charge identification card has
been lost, stolen or destroyed;
(9) failure to notify the board within 10 business days
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after a change in the information provided in the application
for an agent-in-charge identification card;
(10) intentionally dispensing to purchasers in amounts
above the limits provided in this chapter;
(11) delinquency in filing any required tax returns or
paying any amounts owed to the Commonwealth; or
(12) failure to notify the board within 48 hours after a
determination that a dispensary employee has diverted
cannabis, edible or non-edible infused products or has
intentionally dispensed cannabis, edible or non-edible
infused products in a manner not consistent with this
chapter.
Section 258.1. Seed-to-sale tracking system.
(a) Inventory.--A dispensing organization agent-in-charge
shall have primary oversight of the dispensing organization's
cannabis seed-to-sale tracking system. The seed-to-sale tracking
system shall be real-time, web-based, open API, two-way
communication and accessible by the board at any time. The
point-of-sale system shall track, at a minimum, the date of
sale, amount, price and currency.
(b) Account.--A dispensing organization shall establish an
account with the board's verification system that documents:
(1) Each sales transaction at the time of sale and each
day's beginning inventory, acquisitions, sales, disposal and
ending inventory.
(2) Acquisition of cannabis, edible and non-edible
infused products from a permitted cultivation center or micro
cultivation center, including:
(i) A description of the products, including the
quantity, strain, variety and batch number of each
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product received.
(ii) The name and registry identification number of
the permitted cultivation center or micro cultivation
center providing the cannabis, edible and non-edible
infused products.
(iii) The name and registry identification number of
the permitted cannabis business establishment agent
delivering the cannabis.
(iv) The name and registry identification number of
the cannabis business establishment agent receiving the
cannabis.
(v) The date of acquisition.
(3) The disposal of cannabis, including:
(i) A description of the products, including the
quantity, strain, variety, batch number and reason for
the cannabis disposal.
(ii) The method of disposal.
(iii) The date and time of disposal.
(c) Verification.--Upon cannabis delivery from a cultivation
center or a micro cultivation center, a dispensing organization
shall confirm that the product's name, strain name, weight and
identification number on the manifest matches the information on
the edible and non-edible infused product label and package. The
product name listed and the weight listed in the Commonwealth's
verification system shall match the product packaging.
(d) Inventory.--The agent-in-charge shall conduct a daily
inventory reconciliation documenting and balancing cannabis
inventory by confirming that the board's verification system
matches the dispensing organization's point-of-sale system and
the amount of physical product at the dispensary. The following
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shall apply:
(1) A dispensing organization shall provide a reason for
an inventory adjustment. Inventory adjustment documentation
shall be kept at the dispensary or maintained electronically
for two years from the date performed.
(2) If the dispensing organization identifies an anomaly
in the amount of cannabis after the monthly inventory
reconciliation due to a mistake, the dispensing organization
shall determine how the anomaly occurred and take and
document corrective action. The dispensing organization shall
work diligently to determine the reason for the anomaly and
document steps on how to address the anomaly.
(3) If the dispensing organization identifies a
discrepancy in the amount of cannabis after the monthly
inventory reconciliation or through other means due to theft,
criminal activity or suspected criminal activity, the
dispensing organization shall determine how the diversion
occurred and take and document corrective action. Within 48
hours after the first discovery of the diversion due to
theft, criminal activity or suspected criminal activity, the
dispensing organization shall inform the board and the
Pennsylvania State Police in writing.
(4) The dispensing organization shall file an annual
compilation report with the board, including a financial
statement that shall include an income statement, balance
sheet, profit and loss statement, statement of cash flow,
wholesale costs and sales and any other documentation
requested by the board in writing. The financial statement
shall include any other information the board deems necessary
in order to effectively administer this chapter and all
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regulations, orders and final decisions promulgated under
this chapter. Statements required by this section shall be
filed with the board within 60 days after the end of the
calendar year. The compilation report shall include a letter
authored by a licensed certified public accountant that it
has been reviewed and is accurate based on the information
provided. The dispensing organization, financial statement
and accompanying documents may not be audited unless
specifically requested by the board.
(e) Documentation.--A dispensing organization shall have all
of the following duties:
(1) Maintain the documentation required under this
section in a secure, locked location at the dispensing
organization, an off-site approved office or electronically,
for two years from the date on the document.
(2) Provide any documentation required to be maintained
in this section to the board for review upon request.
(3) If maintaining a bank account, retain for a period
of two years, electronically or otherwise, a record of each
deposit or withdrawal from the bank account.
(f) Return policy.--If a dispensing organization chooses to
have a return policy for cannabis, edible and non-edible infused
products, the dispensing organization shall seek prior approval
from the board, including written policies as to how returned
cannabis, edible or non-edible infused products will be stored
and quarantined from other inventory.
Section 258.2. Storage requirements.
(a) Authorized on-premises storage.--A dispensing
organization shall store inventory on its premises. All
inventory stored on the premises shall be secured in a
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restricted access area and tracked consistently with the
inventory tracking regulations. A dispensing organization shall
be of suitable size and construction to facilitate cleaning,
maintenance and proper operations and shall maintain adequate
lighting, ventilation, temperature, humidity control and
equipment.
(b) Tampered containers.--A cannabis container that has been
tampered with, damaged or opened shall be labeled with the date
opened, if known, and quarantined from other edible and non-
edible infused products in a vault until the edible and non-
edible infused products are disposed. Cannabis that was tampered
with, expired or damaged may not be stored at the premises for
more than 14 calendar days.
(c) Storage.--The dispensing organization storage areas
shall be maintained in accordance with the security requirements
in this chapter and any regulations promulgated by the board.
Cannabis shall be stored at appropriate temperatures and under
appropriate conditions to help ensure that the packaging,
strength, quality and purity are not adversely affected.
Section 258.3. Destruction and disposal of cannabis.
(a) Destruction.--Cannabis, edible and non-edible infused
products shall be destroyed by rendering the cannabis, edible
and non-edible infused products unusable using methods approved
by the board and promptly disposed in a manner that complies
with this chapter and regulations promulgated by the board.
Disposal of the cannabis waste rendered unusable may be
delivered to a permitted solid waste facility for final
disposition. Acceptable permitted solid waste facilities shall
include all of the following:
(1) Compostable facilities.
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(2) Noncompostable mixed-waste facilities.
(b) Waste inventory.--Waste and unusable cannabis, cannabis
concentrate or an edible or non-edible infused product shall be
weighed, recorded and entered into the seed-to-sale tracking
system prior to rendering it unusable. Verification of waste
inventory shall be performed by an employee who is a manager and
conducted in an area with video surveillance. Electronic
documentation of destruction and disposal shall be maintained
for a period of at least two years.
Section 258.4. Security measures.
(a) Measures.--A dispensing organization shall implement
security measures to protect the premises, patients and
purchasers and deter and prevent entry into and theft of
cannabis or currency in accordance with the regulations
promulgated under this chapter as determined by the board.
(b) Alternative provisions.--The board may approve
alternative security provisions that the board determines are an
adequate substitute for a security requirement specified by the
board in the regulations promulgated under this chapter.
Section 258.5. Recordkeeping.
(a) Record retention.--Dispensing organization records shall
be maintained electronically for two years and be available for
inspection by the board upon request. The required written
records shall include all of the following:
(1) Operating procedures.
(2) Inventory records, policies and procedures.
(3) Security records.
(4) Audit records.
(5) Staff training plans and completion documentation.
(6) Staffing plan.
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(7) Business records, including:
(i) Assets and liabilities.
(ii) Monetary transactions.
(iii) Written or electronic accounts, including bank
statements, journals, ledgers and supporting documents,
agreements, checks, invoices, receipts and vouchers.
(iv) Any other financial accounts reasonably related
to the dispensary operations.
(b) Storage and transfer of records.--If a dispensing
organization closes due to insolvency, revocation, bankruptcy or
for any other reason, all records required to be maintained
shall be preserved and provided to the board.
Section 258.6. Issuance of cultivation center permits.
(a) Modifications or changes.--Following the completion of a
comprehensive market analysis, the board may, by rule, do any of
the following:
(1) Modify or change the number of new cultivation
center permits available, which shall at no time exceed three
permits, other than those permits issued to current
grower/processors under this chapter.
(2) Modify or change the permitting application process
to reduce or eliminate the barriers to permits, particularly
for disproportionately impacted area applicants, and shall
make modifications to remedy evidence of discrimination.
(b) Additional permits.--If the board determines that
additional cultivation center permits should be issued other
than those permits issued to current cultivation centers,
grower/processors, the board shall ensure that micro cultivation
center permit holders are provided the first opportunity to
apply for and be awarded the additional permits prior to
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accepting additional applications.
Section 258.7. Issuance of cultivation center permits to
current medical cannabis grower/processor permit
holders.
(a) Dual-use cultivation center permits.--A medical cannabis
organization shall, within 90 days from the effective date of
this subsection, be authorized by the board to commence
cultivating cannabis at a grower/processor facility operating
under this chapter.
(b) Delay or inhibit operations.--The failure of the board
to be seated or to promulgate regulations shall not delay or
inhibit the ability of a medical cannabis organization under
subsection (a) from commencing the sale of cannabis at a
grower/processor facility operating under this chapter. If the
board is not seated within 90 days from the effective date of
this subsection or if the board otherwise fails to authorize a
medical cannabis organization under subsection (a) from
commencing the sale of cannabis at a grower/processor facility
operating under this chapter, the medical cannabis organization
shall automatically be authorized to commence cannabis sales to
purchasers.
(c) Cultivation center permittees.--A cultivation center
permittee may operate at up to two locations. The board shall
determine the process for opening a second cultivation center
location not already operational as a medical cannabis
grower/processor on the effective date of this subsection.
(d) Submission.--A medical cannabis grower/processor
authorized under this section to cultivate and process cannabis
shall have the following duties:
(1) Pay a nonrefundable fee of $250,000 to be deposited
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into the Cannabis Regulation Fund.
(2) Provide proof of holding a permit as a medical
cannabis organization that is in good standing.
(e) Construction.--Nothing in this section shall be
construed to prevent or constrain an existing medical cannabis
grower/processor that receives a cultivation center permit from
relocating its existing facility, before or after receiving its
cultivation center permit, in accordance with procedures for
relocation in this chapter or any regulations promulgated by the
board.
(f) Cultivation centers.--A cultivation center shall be
subject to the provisions of this chapter.
Section 258.8. New cultivation center permits.
If the board makes available an additional cultivation center
permit in excess of the permits authorized under section 258.7,
the board shall determine the requirements of an application for
the permit and selection criteria and promulgate regulations as
necessary to implement this section.
Section 258.9. Cultivation center requirements and
prohibitions.
(a) Requirements.--The operating documents of a cultivation
center shall include procedures for the oversight of the
cultivation center, tracking cannabis, including a physical
inventory recorded weekly, accurate recordkeeping and a staffing
plan.
(b) Security plan.--A cultivation center shall implement a
security plan that includes facility access controls, perimeter
intrusion detection systems, personnel identification systems, a
24-hour motion-activated surveillance system to monitor the
interior and exterior of the cultivation center facility and
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accessibility to authorized law enforcement and the board in
real time.
(c) Facility.--All cultivation of cannabis by a cultivation
center shall take place in an enclosed, locked facility at the
physical address provided to the board during the licensing
process. The cultivation center location shall only be accessed
by the agents working for the cultivation center, the board
staff performing inspections and State law enforcement or other
emergency personnel, contractors working on jobs unrelated to
cannabis, contracted vendors, elected officials or other
individuals as provided by rule.
(d) Sale prohibited.--A cultivation center may not sell or
distribute any cannabis, edible or non-edible infused products
to any person other than a dispensing organization or as
otherwise authorized by rule of the board, including home
delivery to purchasers and patients.
(e) Pricing.--A cultivation center may not either directly
or indirectly discriminate in price between different dispensing
organizations that are purchasing a like grade, strain, brand
and quality of cannabis, edible or non-edible infused product.
Nothing in this subsection shall prevent cultivation centers
from pricing cannabis differently based on differences in
cannabinoid content, in the cost of manufacturing or processing,
the quantities sold, including volume discounts, or the way the
products are delivered.
(f) Data collection system.--All cannabis harvested by an
cultivation center and intended for distribution to a dispensing
organization shall be entered into a data collection system,
packaged and labeled and placed into a cannabis container for
transport.
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(g) Random inspection.--A cultivation center shall be
subject to random inspections by the board.
(h) Loss notification.--A cannabis business establishment
agent shall notify local law enforcement, the Pennsylvania State
Police and the board within 24 hours of the discovery of any
loss or theft. Notification shall be made by phone, in person or
by written or electronic communication.
(i) Pesticides.--
(1) A cultivation center may use a pesticide that is
registered by the Department of Agriculture under the act of
March 1, 1974 (P.L.90, No.24), known as the Pennsylvania
Pesticide Control Act of 1973, and designated by the
Secretary of Agriculture in consultation with the secretary
for use by a grower/processor.
(2) The Secretary of Agriculture shall transmit a list
of pesticides which may be used by a cultivation center to
the Legislative Reference Bureau for publication in the next
available issue of the Pennsylvania Bulletin. The list shall
be posted on the board's publicly accessible Internet website
and shall be reviewed and updated by the Secretary of
Agriculture, in consultation with the secretary, at least
once annually and transmitted to the Legislative Reference
Bureau for publication in the next available issue of the
Pennsylvania Bulletin.
(j) Process.--A cultivation center may process cannabis,
cannabis concentrates, edible and non-edible infused products,
including tinctures, topicals and edibles. A cultivation center
may not sell, dispense, manufacture or distribute cannabis,
edible or non-edible infused products with a THC content limit
higher than 10 milligrams per serving and 1000 milligrams per
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package.
(k) Compliance.--A cultivation center shall comply with any
other requirements or prohibitions specified by regulations of
the board.
Section 258.10. Issuance of micro cultivation center permits.
(a) Limitation.--An applicant may file no more than one
application in any single application period.
(b) Issuance.--The board may issue up to 15 micro
cultivation center permits.
(c) Space.--A micro cultivation center may not contain more
than 3,000 square feet of canopy space for plants in the
flowering stage for cultivation of cannabis as provided in this
chapter. A micro cultivation center may share a premises with a
dispensing organization if each permittee stores currency and
cannabis, edible and non-edible infused products in a separate
secured vault to which any other permittee does not have access
or all permittees sharing a vault share more than 50% of the
same ownership.
Section 258.11. Micro cultivation center permit applications.
(a) Required information.--When applying for a permit, the
applicant for a micro cultivation center permit shall
electronically include information in at least the following
categories as determined by the board:
(1) A nonrefundable application fee of $5,000.
(2) A business plan that complies with the requirements
under this chapter.
(3) A security plan.
(4) An inventory control plan.
(5) A plan for community engagement.
(6) Written policies and procedures regarding
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recordkeeping, inventory control, safety, security, diversion
and diversity.
(7) Facility plans, including the proposed physical
address, floor plans, security overlay and specifications of
the building exterior and interior layout.
(8) Documented ownership or control of the property.
(9) A copy of each relevant local zoning ordinance and
documentation, if necessary, of approval from the local
zoning office that the proposed dispensary location is in
compliance with each local zoning ordinance.
(10) Information regarding each principal officer.
(11) Evidence of the applicant's status as a
disproportionately impacted area applicant, if applicable.
(b) Submission.--An applicant under subsection (a) shall
submit all required information to the board. Failure by an
applicant to submit all required information may result in the
application being disqualified.
Section 258.12. Selection criteria for micro cultivation center
permits.
(a) Incomplete application.--If the board receives an
application under section 258.11 that fails to provide the
required elements contained in a section, that section may not
be scored.
(b) Application scoring.--The board shall, by rule, develop
a merit-based scoring system in which to award micro cultivation
center permits.
(c) Scoring criteria.--An applicant for a micro cultivation
center permit shall be awarded points on an application as
determined by the board.
(d) Anonymity.--Applications for micro cultivation center
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permits shall be scored by the board anonymously in accordance
with regulations promulgated by the board, which shall include
tie-breaker language that governs the process through which some
applicants are to be awarded permits when multiple applicants
receive the same application score and the awarding of permits
to all tied applicants would result in awarding more permits
than is permissible under this chapter. A tie-breaking process
shall be designed to ensure clarity, transparency and fairness.
(e) Review.--Each application for a micro cultivation center
permit shall be reviewed and scored by three individuals who
score each application independently. An applicant's score in
each category under subsection (c) shall be an average of the
three scores awarded by each individual score. An applicant may
not receive full points simply for providing responsive
information on a section of the application.
(f) Award of points.--Except in the case when an applicant
for a micro cultivation center permit provides necessary
documentation of a status as a disproportionately impacted area,
a resident of this Commonwealth or an existing farming
operation, the scoring system developed by the board shall be
designed to ensure that the applicant does not receive full
points merely for providing responsive information on a section
of the application.
Section 258.13. Issuance of additional micro cultivation
permits.
(a) Marketing analysis.--Prior to issuing additional
permits, the board shall conduct a comprehensive market analysis
annually for the first three years, and then at least once every
three years thereafter, to determine whether a need exists to
modify or raise the number of micro cultivation permits.
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(b) Factors to consider.--In determining whether to exercise
the authority granted under this section, the board shall
consider the following factors:
(1) Whether there is an adequate supply of cannabis and
cannabis-infused edible products and cannabis-infused non-
edible products to serve patients under Chapter 3 and
purchasers under this chapter.
(2) Population increases or shifts.
(3) The density of dispensaries in any area of this
Commonwealth.
(4) Perceived security risks of increasing the number or
location of dispensaries.
(5) The board's capacity to appropriately regulate
additional permittees.
(6) Other criteria the board deems relevant.
Section 258.14. Micro cultivation center requirements and
prohibitions.
(a) Operating documents.--The operating documents of a micro
cultivation center shall include procedures for the oversight of
the micro cultivation center, tracking cannabis, including a
physical inventory recorded weekly, accurate recordkeeping and a
staffing plan.
(b) Security plan.--A micro cultivation center shall
implement a security plan that includes facility access
controls, perimeter intrusion detection systems, personnel
identification systems and a 24-hour motion-activated
surveillance system to monitor the interior and exterior of the
micro cultivation center that is accessible to authorized law
enforcement and the board in real time.
(c) Facility requirements.--All cultivation of cannabis by a
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micro cultivation center shall take place in an enclosed, locked
facility at the physical address provided to the board during
the permitting process. The micro cultivation center location
shall only be accessed by the cannabis business establishment
agents working for the micro cultivation center, the board staff
performing inspections, Commonwealth and local law enforcement
or other emergency personnel, contractors working on jobs
unrelated to cannabis, individuals in a mentoring or educational
program approved by the State or other individuals as provided
by rule. If a micro cultivation center shares a premises with a
dispensing organization, agents from those other permittees may
access the micro cultivation center portion of the premises if
the location point is a common area for access to bathrooms,
lunchrooms, locker rooms or other areas of the building where
work or cultivation of cannabis is not performed. At no time may
a dispensing organization agent perform work at a micro
cultivation center without being an employee of the micro
cultivation center.
(d) Sale and distribution limitation.--A micro cultivation
center may not sell or distribute cannabis to any person other
than a cannabis business establishment or as otherwise
authorized by rule of the board.
(e) Location limitation.--A micro cultivation center may not
be located in an area zoned for residential use or at, on or
adjacent to any other cultivation center, including another
micro cultivation center.
(f) Price discrimination.--A micro cultivation center may
not either directly or indirectly discriminate in price between
different cannabis business establishments that are purchasing a
like grade, strain, brand and quality of cannabis, edible or
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non-edible infused product. Nothing in this subsection shall
prevent a micro cultivation center from pricing cannabis
differently based on cannabinoid content, differences in the
cost of manufacturing, processing, quantities sold, such as
volume discounts, or the method of product delivery.
(g) Data collection system.--All cannabis harvested by a
micro cultivation center and intended for distribution to a
dispensing organization shall be entered into a data collection
system, packaged and labeled in compliance with this chapter and
any regulations promulgated by the board and, if the
distribution is to a dispensing organization that does not share
a premises with the dispensing organization receiving the
cannabis, placed into a cannabis container for transport.
(h) Random inspection.--A micro cultivation center shall be
subject to random inspections by the board.
(i) Notification of loss or theft.--A cannabis business
establishment agent shall notify local law enforcement, the
Pennsylvania State Police and the board within 24 hours of the
discovery of any loss or theft. A notification under this
subsection shall be made by phone, in person or by written or
electronic communication.
(j) Pesticides.--A micro cultivation center shall comply
with all Federal and State rules and regulations regarding the
use of pesticides in addition to any regulations promulgated by
the board.
(k) Transportation.--A micro cultivation center or cannabis
business establishment agent shall be permitted to transport
cannabis, edible or non-edible infused products to any other
cannabis business establishment. A micro cultivation center may
alternatively enter into a contract with a dispensing
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organization or a laboratory related to the transport of
cannabis.
(l) Compliance.--A micro cultivation center shall comply
with any other requirements or prohibitions specified by
regulations of the board.
Section 258.15. Cannabis business establishment agent
identification cards.
(a) Required form.--The board shall promulgate regulations
detailing the form required for an initial application or
renewal application for a cannabis business establishment agent
identification card submitted under this chapter. The form shall
include all of the following:
(1) A nonrefundable fee to accompany the initial
application or renewal application.
(2) A fingerprinting and background check requirement.
(3) Means to submit the initial application or renewal
application via electronic means.
(b) Verification.--The board shall verify the information
contained in an initial application or renewal application for a
cannabis business establishment agent identification card
submitted under this chapter and approve or deny the application
within 14 days of receiving the completed application and all
supporting documentation required by regulations of the board.
(c) Duties of establishment.--The cannabis business
establishment:
(1) shall print and issue a cannabis business
establishment agent identification card to a qualifying agent
within 14 business days of approving the initial application
or renewal application; and
(2) may allow a cannabis business establishment agent to
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work at a cannabis business establishment after the agent's
application has been approved but prior to issuance of the
cannabis business establishment agent identification card.
(d) Identification.--An agent shall keep the cannabis
business establishment agent identification card under this
section visible at all times when on the property of the
cannabis business establishment where the agent is employed,
unless the agent is working after being approved as an agent by
the board but prior to the receipt of the cannabis business
establishment agent's identification card.
(e) Identification card requirements.--The cannabis business
establishment agent identification card shall contain the
following:
(1) The name of the cardholder.
(2) The date of issuance and expiration date of the
cannabis business establishment agent identification card.
(3) A random 10-digit alphanumeric identification number
containing at least four numbers and at least four letters
that is unique to the holder.
(4) A photograph of the cardholder.
(f) Limitation.--The board may not issue a cannabis business
establishment agent identification card if the applicant is
delinquent in filing any required tax returns or paying any
amounts owed to the Commonwealth.
Section 258.16. Background check for cannabis business
establishment applicants.
(a) Background check.--The board shall require a criminal
history record check, through the Pennsylvania State Police, of
the prospective principal officers, board members and agents of
a cannabis business establishment applying for permits or
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identification cards under this chapter. The Pennsylvania State
Police shall charge a fee set by rule for conducting the
criminal history record check and may not exceed the actual cost
of the record check. In order to carry out the provisions of
this section, each cannabis business establishment's prospective
principal officer, board member or agents shall submit a full
set of fingerprints to the Pennsylvania State Police for the
purpose of obtaining a Federal and State criminal record check.
Fingerprints shall be checked against the fingerprint records
now and hereafter, to the extent allowed by law, filed in the
Pennsylvania State Police and Federal Bureau of Investigation
criminal history records databases. The Pennsylvania State
Police shall furnish, following positive identification, all
conviction information to the board. Background checks for all
prospective principal officers, board members and agents shall
be completed concurrent with submitting an application to the
board. An agent may begin working at a cannabis business
establishment while waiting for the result of any background
check. For agents affiliated with a medical cannabis
organization, the failure of the board to issue guidance for the
ability of an employee to also serve as a cannabis business
entity may not delay or inhibit the ability of a current medical
cannabis organization on the effective date of this subsection
from commencing operations.
(b) Construction.--Nothing in this section or chapter shall
be construed to prevent or otherwise inhibit the ability of an
otherwise qualified individual from serving as a principal
officer, board member or agent of a cannabis business
establishment on the sole basis of a nonviolent criminal
conviction related to cannabis.
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Section 258.17. Renewal of cannabis business establishment
permits and cannabis business establishment agent
identification cards.
(a) Renewal.--A permit or agent identification card issued
under this chapter shall be renewed every two years. A cannabis
business establishment and agent shall receive written or
electronic notice no later than 90 days before the expiration of
the permit or card. The board shall grant a renewal within 30
days of submission of a renewal application if:
(1) the cannabis business establishment submits the
required nonrefundable renewal fee;
(2) the permit or agent identification card has not been
suspended or revoked for violating this chapter or
regulations adopted under this chapter;
(3) the cannabis business establishment has continued to
operate in accordance with all plans submitted as part of its
application and approved by the board or any amendments to a
submitted plan that have been approved by the board; and
(4) the cannabis business establishment has submitted an
agent, employee, contracting and subcontracting diversity
report as required by the board.
(b) Failure to renew license.--If a cannabis business
establishment fails to renew the establishment's permit prior to
license expiration, the establishment shall cease operations
until the permit is renewed, unless otherwise permitted by the
board.
(c) Failure to renew identification card.--If a cannabis
business establishment or cannabis business establishment agent
fails to renew a cannabis business establishment permit or the
agent identification card prior to expiration, the cannabis
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business establishment or cannabis business establishment agent
shall cease to operate as a cannabis business establishment or
work as an agent of a cannabis business establishment, as
applicable, until the cannabis business establishment permit or
agent identification card is renewed, unless otherwise permitted
by the board.
(d) Disciplinary action and fines.--A cannabis business
establishment that continues to operate, or any cannabis
business establishment agent who continues to work as an agent,
after the applicable permit or cannabis business establishment
agent identification card has expired without renewal, absent
board permission, shall be subject to disciplinary action by the
board.
(e) Collection of fees and fines.--All fees or fines
collected from the renewal of a cannabis business establishment
permit or agent identification card shall be deposited into the
Cannabis Regulation Fund.
Section 258.18. Warehousing and distribution permits.
(a) Issuance.--The board shall issue warehousing and
distribution permits, which authorize the storage, inventory
management and transportation of cannabis and cannabis products
between cannabis business establishments, to eligible
applicants.
(b) Scope of permit.--A permit issued under this section
shall authorize a permittee to:
(1) Store cannabis and cannabis products in secure,
compliant facilities.
(2) Manage inventory, including tracking and reporting,
as required by the board.
(3) Transport cannabis and cannabis products between
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cultivators, manufacturers, retailers and other authorized
entities within this Commonwealth.
(c) Fees.--
(1) A one-time, nonrefundable application fee of $2,500
shall be payable to the board upon submission of the initial
application for a permit.
(2) An annual renewal fee of $5,000 shall be payable to
the board for a permit.
(d) Residency requirement.--At least 51% of the ownership
interest in the entity applying for a permit must be held by
individuals who have been residents of this Commonwealth for at
least two consecutive years immediately prior to the application
date.
(e) Restriction on other permits.--The holder of a permit,
including its owners, principals and operators, may not hold a
grower-processor permit or cultivation center permit.
(f) Employee background checks.--
(1) All employees of a permittee shall undergo a
criminal history background check conducted by the
Pennsylvania State Police prior to employment.
(2) A permittee shall submit employee background check
results to the board upon request and maintain records for
inspection.
(g) Regulatory oversight.--The board shall establish and
enforce rules governing the permitting, operation and compliance
of warehousing and distribution facilities, including:
(1) Security protocols for storage and transportation.
(2) Inventory tracking and reporting requirements.
(3) Compliance with health and safety standards.
(h) Inspections.--The board, or a designee, may conduct
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regular and unannounced inspections of permitted facilities to
ensure compliance.
(i) Penalties.--A violation of this section may result in
fines or permit suspension or revocation, as determined by the
board.
(j) 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:
"Permit." A permit issued under subsection (a).
"Permittee." The holder of a permit.
Section 259. Prices.
The board and the Department of Revenue shall monitor the
price of cannabis sold by grower/processors and by dispensaries,
including a per-dose price. If the board and the Department of
Revenue determine that the prices are unreasonable or excessive,
the board may implement a cap on the price of cannabis being
sold for a period of six months. The cap may be amended during
the six-month period. If the board and the Department of Revenue
determine that the prices become unreasonable or excessive
following the expiration of a six-month cap, additional caps may
be imposed for periods not to exceed six months.
SUBCHAPTER G
ENFORCEMENT AND IMMUNITIES
Section 261. Permit discipline.
(a) Board actions.--Notwithstanding any other civil or
criminal penalties related to the unlawful possession of
cannabis, the board may take disciplinary or nondisciplinary
action as the board deems proper with regard to a cannabis
business establishment or cannabis business establishment agent,
including fines not to exceed $10,000 for each violation of this
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chapter or regulations promulgated by the board.
(b) Determination.--The board shall consider permittee
cooperation in any investigation in its determination of
penalties imposed under this section. The procedures for
disciplining a cannabis business establishment or cannabis
business establishment agent and for administrative hearings
shall be determined by regulation of the board and shall provide
for the review of final decisions under 2 Pa.C.S. (relating to
administrative law and procedure).
Section 262. Immunities and presumptions relating to handling
of cannabis by cannabis business establishments and
agents.
(a) Immunities and presumptions.--A cannabis business
establishment or an agent shall not be subject to the following
based solely on conduct that is lawful under this chapter or any
regulations promulgated under this chapter:
(1) Prosecution.
(2) Search or inspection, except by the board or under
the authority of the board or a State or local law
enforcement agency under this chapter.
(3) Seizure.
(4) Denial of any right or privilege.
(5) Penalty in any manner, or denial of any right or
privilege, including civil penalty or disciplinary action by
a business permitting or licensing board or entity for
working for a cannabis business establishment under this
chapter and regulations adopted under this chapter.
(b) Prohibition.--Any cannabis, edible or non-edible infused
product, cannabis paraphernalia, legal property or interest in
legal property that is possessed, owned or used in connection
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with the use of cannabis as permitted under this chapter, or
acts incidental to that use, may not be seized or forfeited.
Nothing in this chapter shall be construed to prevent the
seizure or forfeiture of cannabis exceeding the amounts
permitted under this chapter or prevent seizure or forfeiture if
the basis for the action is unrelated to the cannabis that is
possessed, manufactured, transferred or used under this chapter.
(c) Laws of this Commonwealth.--Nothing in this chapter
shall be construed to preclude State or local law enforcement
from searching a cultivation center, micro cultivation center or
dispensing organization if there is probable cause to believe
that the laws of this Commonwealth have been violated and the
search is conducted in conformance with law.
(d) Attorney General investigation.--Nothing in this chapter
shall be construed to preclude the Attorney General or other
authorized government agency from investigating or bringing a
civil action against a cannabis business establishment or an
agent of a cannabis business establishment for a violation of
Commonwealth law, including civil rights violations and
violations of the act of December 17, 1968 (P.L.1224, No.387),
known as the Unfair Trade Practices and Consumer Protection Law.
Section 263. Commonwealth standards and requirements.
Any standards, requirements and regulations regarding the
health and safety, environmental protection, testing, security,
food safety and worker protections established by the
Commonwealth shall be the minimum standards for all permittees
under this chapter, where applicable. Knowing violations of any
Commonwealth or local law, ordinance or regulation conferring
worker protections or legal rights on the employees of a
permittee may be grounds for disciplinary action in addition to
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applicable penalties under this chapter.
Section 264. Violation of tax acts and refusal, revocation or
suspension of permit or agent identification card.
(a) General rule.--In addition to other grounds specified in
this chapter, the board, upon notification by the Department of
Revenue, shall refuse the issuance or renewal of a permit or
agent identification card or suspend or revoke the permit or
agent identification card of any person for any of the
following:
(1) Failure to file a tax return.
(2) The filing of a fraudulent tax return.
(3) Failure to pay all or part of any tax or penalty
determined to be due.
(4) Failure to keep books and records in accordance with
this chapter or the regulations promulgated by the board.
(5) Failure to secure and display a certificate or
related permitted document, if required.
(6) The willful violation of any rule or regulation of
the Department of Revenue relating to the administration and
enforcement of tax liability.
(b) Resolution.--The Department of Revenue, after a
violation under subsection (a) has been corrected or resolved,
shall, upon request of the subject of the violation, notify the
board that the violation has been corrected or resolved. Upon
receiving notice from the Department of Revenue that a violation
under subsection (a) has been corrected or otherwise resolved,
the board may issue or renew the permit or agent identification
card or vacate an order of suspension or revocation.
SUBCHAPTER H
LABORATORY TESTING
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Section 271. Laboratory testing requirements and prohibitions.
(a) Legality.--Notwithstanding any other provision of law,
the following actions, when performed by a cannabis testing
facility with a current, valid registration or an individual 21
years of age or older who is acting in official capacity as an
owner, employee or agent of a cannabis testing facility, may not
be determined to be unlawful and may not be an offense or be a
basis for seizure or forfeiture of assets under the laws of this
Commonwealth:
(1) possessing, repackaging, transporting or storing
cannabis, edible or non-edible infused products;
(2) receiving or transporting cannabis, edible or non-
edible infused products from a cannabis business
establishment; and
(3) returning or transporting cannabis, edible or non-
edible infused products to a cannabis business establishment.
(b) Prohibition.--A laboratory at a cannabis testing
facility may not handle, test or analyze cannabis unless
approved by the board in accordance with this section. A
laboratory at a cannabis testing facility may not be approved to
handle, test or analyze cannabis unless the laboratory:
(1) is accredited by a private laboratory accrediting
organization;
(2) does not have a direct or indirect financial,
management or other interest in a cultivation center, micro
cultivation center, dispensary or medical cannabis
grower/processor in this Commonwealth or is affiliated with a
certifying physician under Chapter 3;
(3) has employed at least one individual to oversee and
be responsible for the laboratory testing who has earned,
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from a college or university accredited by a national or
regional certifying authority, at least:
(i) a master's level degree in chemical or
biological sciences and a minimum of two years'
postdegree laboratory experience; or
(ii) a bachelor's degree in chemical or biological
sciences and a minimum of four years' postdegree
laboratory experience; and
(4) provides the board with a copy of the most recent
annual inspection report granting accreditation and every
annual report thereafter.
(c) Testing.--
(1) The board shall require all cannabis, edible, non-
edible or infused product or packaging cannabis for sale to a
dispensing organization, each batch shall be made available
by the cultivation center or micro cultivation center for an
employee of an approved laboratory at a cannabis testing
facility to be tested at harvest and at final processing,
which shall be tested by the approved laboratory for:
(i) microbiological contaminants;
(ii) mycotoxins;
(iii) pesticide active ingredients;
(iv) heavy metals;
(v) residual solvent;
(vi) an active ingredient analysis; and
(vii) THC potency.
(2) A laboratory shall perform stability testing to
ensure the cannabis product's potency and purity. A
grower/processor shall retain a sample from each cannabis
product derived from a harvest batch and request that a
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sample be identified and collected by a laboratory approved
by the board from each process lot to perform stability
testing under the following conditions:
(i) The cannabis product is still in inventory at a
dispensary in this Commonwealth as determined by the
seed-to-sale system.
(ii) The stability testing is done at six-month
intervals for the duration of the expiration date period
as listed on the medical cannabis product and once within
six months of the expiration date.
(d) Board sample.--The board may select a random sample that
shall, for the purposes of conducting an active ingredient
analysis, be tested by a laboratory chosen by the board for
verification of label information.
(e) Disposal of sample.--A laboratory at a cannabis testing
facility shall immediately return or dispose of any cannabis
upon the completion of any testing, use or research. Any
cannabis that is disposed of shall be done in accordance with
the board's regulations related to cannabis waste.
(f) Sample failure.--If a sample of cannabis does not pass
testing under subsection (c) based on the standards established
by the board, the following shall apply:
(1) The sample may be retested, with or without
remediation, up to three additional times after a failed
test.
(2) After a fourth failed test, or at the choosing of
the cannabis business establishment, the batch may be used to
make a CO2-based or solvent-based extract. After processing,
the CO2-based or solvent-based extract shall still pass final
form testing.
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(3) Seeds, immature cannabis plants, cannabis plants,
cannabis flowers, edible or non-edible infused products may
be remediated at any time prior to cannabis, edible or non-
edible infused products being provided to dispensaries for
sale to purchasers under this chapter or patients under
Chapter 3, including after any failed test performed by an
independent laboratory under subsection (c) based on the
standards established by the board, as long as the cannabis,
edible or non-edible infused products being provided to
dispensaries ultimately passes independent laboratory testing
under subsection (c) based on the standards established by
the board.
(g) Board testing standards.--The board shall establish
standards for contaminants under subsection (c) and shall
develop labeling requirements for contents and potency. The
board shall ensure standards under this subsection are
comparable to those set by other established cannabis and
medical cannabis markets and shall publicly disclose the basis
for any standards set. These standards shall be reviewed
biannually against other markets and forthcoming Federal
standards.
(h) Copy of test results.--A laboratory at a cannabis
testing facility shall file with the board an electronic copy of
each laboratory test result for any batch that does not pass
testing under subsection (c) at the same time that it transmits
those results to the cultivation center or micro cultivation
center. The testing laboratory shall maintain the laboratory
test results for at least five years and make test results
available at the board's request for the same period.
(i) Results.--A cultivation center or micro cultivation
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center shall provide to a dispensing organization the laboratory
test results for each batch of edible or non-edible infused
product purchased by the dispensing organization. Each
dispensing organization shall have those laboratory results
available upon request to purchasers and patients.
(j) Additional regulations permitted.--The board shall
promulgate regulations relating to testing in furtherance of and
consistent with this chapter.
SUBCHAPTER I
ADVERTISING, MARKETING, PACKAGING AND LABELING
Section 281. Advertising and promotions.
A cannabis business establishment shall be permitted to
advertise and market cannabis, edible and non-edible infused
products, including through discounts and promotional programs.
A cannabis business establishment may only be restricted in
advertising and marketing to the extent that any advertising or
marketing contains any statement or image that:
(1) is false or misleading;
(2) promotes over-consumption of cannabis, edible and
non-edible infused products;
(3) depicts a person under 21 years of age consuming
cannabis;
(4) makes any unsupported health claims about cannabis,
edible or non-edible infused products or cannabis
concentrates; or
(5) includes any image designed or likely to appeal to a
minor.
Section 282. Edible and non-edible infused product packaging
and labeling.
(a) Registration.--Each edible and non-edible infused
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product produced for sale shall be registered with the board in
a form and manner provided by the board. Each product
registration shall include a label containing all information
required by the board.
(b) Packaging.--Cannabis, edible or non-edible infused
products intended for distribution to a dispensing organization
for sale to purchasers or patients shall be packaged in a
sealed, child-resistant container or package and labeled in a
manner consistent with current standards, including the Consumer
Product Safety Commission standards referenced under 15 U.S.C.
Ch. 39A (relating to special packaging of household substances
for protection of children).
(c) Edible and non-edible infused product packaging.--Each
edible and non-edible infused product shall be wrapped or
packaged at the cultivation center or micro cultivation center.
(d) Edible and non-edible infused product labeling.--Each
edible and non-edible infused product shall be labeled prior to
sale to a dispensary. Each label shall be securely affixed to
the package and shall state in legible font the following:
(1) the common or usual name of the item and the
registered name of the edible and non-edible infused product
that was registered with the board under subsection (a);
(2) a unique serial number that matches the product with
a cultivation center or micro cultivation center batch and
lot number to facilitate any warnings or recalls the board or
cultivation center or micro cultivation center deems
appropriate;
(3) the date of final testing and packaging;
(4) the identification of the independent cannabis
testing facility;
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(5) the date of harvest for cannabis flower or the date
of manufacture for other forms of cannabis;
(6) a "use by" date;
(7) the quantity, in ounces or grams, of cannabis
contained in the product;
(8) a content list, including:
(i) The minimum and maximum percentage content by
weight for:
(A) delta-9-tetrahydrocannabinol (THC);
(B) tetrahydrocannabinolic acid (THCA);
(C) cannabidiol (CBD);
(D) cannabidiolic acid (CBDA); and
(E) all other ingredients of the item, including
any colors, artificial flavors and preservatives
listed in descending order by predominance of weight
shown with common or usual names.
(ii) (Reserved); and
(9) the acceptable tolerances for the minimum percentage
shall not be below 85% or above 115% of the labeled amount.
(e) Prohibition.--Cannabis product packaging may not contain
information that:
(1) is false or misleading;
(2) promotes excessive consumption;
(3) depicts a person under 21 years of age consuming
cannabis; or
(4) includes any image designed or likely to appeal to a
minor.
(f) Additional requirements.--The following shall apply to
an edible and non-edible infused product produced by
concentrating or extracting ingredients from the cannabis plant:
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(1) If solvents were used to create the concentrate or
extract, a statement that discloses the type of extraction
method, including any solvents or gases used to create the
concentrate or extract.
(2) Disclosure of any chemicals or compounds used to
produce or added to the concentrate or extract.
(3) Cannabis concentrates sold with greater than 70% THC
shall indicate the product is a high-THC product on the
product label.
(g) Product warning.--All cannabis, edible and infused
products and cannabis concentrates shall contain a warning on
its label stating: "Cannabis consumption may impair the ability
to drive or operate heavy machinery, is for adult use only and
should not be used by pregnant or breastfeeding women. Keep out
of reach of children."
(h) Servings.--Each edible or non-edible infused product
intended for consumption shall include on the packaging the
total milligram content of THC and CBD. Each package may not
include more than a total of 1,000 milligrams of THC per package
with respect to edible and non-edible infused products. A
package may contain multiple servings. An edible and non-edible
infused product that consists of more than a single serving
shall be marked, stamped or otherwise imprinted, by individual
single serving, with a symbol or easily recognizable mark
approved by the board indicating the package contains cannabis
and shall be either:
(1) scored or delineated to indicate one serving, if the
edible or non-edible infused product is in solid form. As
used in this paragraph, the term "delineated" includes
directly marking the product to indicate one serving or
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providing a means by which a patient or purchaser can
accurately identify one serving; or
(2) if the edible or non-edible infused product is not
in solid form, packaged in a manner so that a single serving
is readily identifiable or easily measurable.
(i) Delineation.--An edible or non-edible infused product
consisting of multiple servings shall be homogenized so that
each serving contains the same concentration of THC.
(j) Alternation or destruction of packaging.--No individual
other than the purchaser shall alter or destroy any labeling
affixed to the primary packaging of cannabis, edible or infused
products after the cannabis, edible or infused products have
been dispensed.
SUBCHAPTER J
PREPARATION, DESTRUCTION AND REGULATION
OF CANNABIS, EDIBLE AND NON-EDIBLE INFUSED PRODUCTS
Section 291. Preparation of edible and non-edible infused
products.
(a) Regulation.--The board may regulate the production of
edible and non-edible infused products, including edibles, by a
cultivation center or a micro cultivation center and establish
regulations related to refrigeration, hot-holding and handling
of edible and non-edible infused products. All edible and non-
edible infused products shall meet the packaging and labeling
requirements specified under this chapter and any regulation
promulgated by the board.
(b) Approval.--Edible and non-edible infused products for
sale or distribution at a dispensing organization shall be
prepared by an approved agent of a cultivation center or micro
cultivation center. A dispensing organization may not
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manufacture, process or produce an edible or infused product.
(c) (Reserved).
(d) Enforcement.--The board shall promulgate regulations for
the manufacture and processing of edible and non-edible infused
products and may at all times enter every building, room,
basement, enclosure or premises occupied or used, or suspected
of being occupied or used, for the production, preparation,
manufacture for sale, storage, processing, distribution or
transportation of edible or non-edible infused products. The
board may inspect the premises together with all utensils,
fixtures, furniture and machinery used for the preparation of
products under this section.
Section 292. Destruction of cannabis.
(a) Destruction.--All cannabis byproduct, scrap and
harvested cannabis not intended for distribution to a dispensing
organization shall be destroyed and disposed of under
regulations adopted by the board under this chapter.
Documentation of the destruction and disposal shall be retained
at the cultivation center, micro cultivation center or cannabis
testing facility as applicable for a period of not less than one
year.
(b) Notification prior to destruction.--A cultivation center
or micro cultivation center shall, prior to destruction, notify
the board. A dispensing organization shall notify the board
within 48 hours of any destruction. The cultivation center,
micro cultivation center or dispensing organization shall keep a
record of the date and quantity of destruction.
(c) Unsold cannabis.--A dispensing organization shall
destroy all cannabis, including edible and non-edible infused
products, not sold to purchasers. Documentation of destruction
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and disposal shall be retained at the dispensing organization
for a period of not less than one year.
Section 293. Local ordinances.
Unless otherwise provided by this chapter or law:
(1) A unit of local government, including a home rule
unit or any non-home-rule county within the unincorporated
territory of the county, may enact reasonable zoning
ordinances or resolutions, not in conflict with this chapter
or rules adopted pursuant to this chapter, regulating a
cannabis business establishment. No unit of local government,
including a home rule unit or any non-home-rule county within
the unincorporated territory of the county, may unreasonably
prohibit the use of cannabis authorized by this chapter.
(2) A unit of local government, including a home rule
unit or any non-home-rule county within the unincorporated
territory of the county, may enact ordinances or rules not in
conflict with this chapter or with rules adopted pursuant to
this chapter governing the time, place, manner and number of
cannabis business establishment operations, including minimum
distance limitations between cannabis business establishments
and locations it deems sensitive. A unit of local government,
including a home rule unit, may establish civil penalties for
violation of an ordinance or rules governing the time, place
and manner of operation of a cannabis business establishment
in the jurisdiction of the unit of local government. No unit
of local government, including a home rule unit or non-home-
rule county within an unincorporated territory of the county,
may unreasonably restrict the time, place, manner and number
of cannabis business establishment operations authorized by
this chapter.
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(3) A unit of local government, including a home rule
unit or any non-home-rule county within the unincorporated
territory of the county, may not regulate the activities
described in paragraph (1), (2) or (3) in a manner more
restrictive than the regulation of those activities by the
State under this chapter.
(4) A unit of local government, including a home rule
unit or any non-home-rule county within the unincorporated
territory of the county, may not enact ordinances to prohibit
a cannabis business establishment from locating within the
unit of local government entirely.
Section 294. Confidentiality.
(a) Disclosure.--Information provided by cannabis business
establishment permittees or applicants to the board, the
Department of Community and Economic Development, the
Pennsylvania State Police or other agency shall be limited to
information necessary for the purposes of administering this
chapter. The information shall be subject to the provisions and
limitations contained in the act of February 14, 2008 (P.L.6,
No.3), known as the Right-to-Know Law.
(b) Privacy.--The information received and records kept by
the board, the Department of Community and Economic Development
and the Pennsylvania State Police for purposes of administering
this chapter shall be subject to all applicable Federal privacy
laws and shall be confidential and exempt from disclosure under
5 U.S.C. § 552 (relating to public information; agency rules,
opinions, orders, records, and proceedings), except as provided
under this chapter. The information received and records kept by
the board, the Department of Community and Economic Development
and the Pennsylvania State Police for purposes of administering
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this chapter shall not be subject to disclosure to an individual
or a public or private entity, except to the board, the
Department of Community and Economic Development, the
Pennsylvania State Police and the Attorney General as necessary
to perform official duties under this chapter.
(c) Name and address.--The name and address of an individual
or entity holding each cannabis business establishment permit
shall be subject to disclosure under the Right-to-Know Law.
(d) Board information.--All information collected by the
board in the course of an examination, inspection or
investigation of a permittee or applicant, including any
complaint against a permittee or applicant filed with the board
and information collected to investigate any complaint, shall be
maintained for the confidential use of the board and shall not
be disclosed, except as otherwise provided under this chapter. A
formal complaint against a permittee by the board or any
disciplinary order issued by the board against a permittee or
applicant shall be public record, except as otherwise provided
by law. Complaints from consumers or members of the general
public received regarding a specific, named permittee or
complaints regarding conduct by entities without permits shall
be subject to disclosure under the Right-to-Know Law.
(e) Background check information.--The board, the Department
of Community and Economic Development and the Pennsylvania State
Police may not share or disclose any Pennsylvania or national
criminal history record information, or the nonexistence or lack
of any information, to any individual or entity not expressly
authorized by this chapter.
Section 295. Financial institutions.
(a) Exemption.--A financial institution that provides
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financial services customarily provided by financial
institutions to a cannabis business establishment authorized
under this chapter or to a person that is affiliated with a
cannabis business establishment shall be exempt from any
criminal law of the Commonwealth as it relates to cannabis-
related conduct authorized under State law.
(b) Confidentiality.--Information received by a financial
institution from a cannabis business establishment shall be
confidential. Except as otherwise required or permitted by
Federal or State law or regulation, a financial institution may
not make the information available to any person other than:
(1) the purchaser to whom the information applies;
(2) a trustee, conservator, guardian, personal
representative or agent of the purchaser to whom the
information applies;
(3) a Federal or State regulator when requested in
connection with an examination of the financial institution
or if otherwise necessary for complying with Federal or State
law;
(4) a Federal or State regulator when requested in
connection with an examination of the financial institution
or if otherwise necessary for complying with Federal or State
law; and
(5) a third party performing service for the financial
institution, provided the third party is performing services
under a written agreement that expressly or by operation of
law prohibits the third party's sharing and use of
confidential information for any purpose other than as
provided in its agreement to provide services to the
financial institution.
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Section 296. Contracts enforceable.
Contracts related to the operation of a lawful cannabis
business establishment under this chapter shall be enforceable.
No contract entered into by a lawful cannabis business
establishment or its agents on behalf of a cannabis business
establishment, or by those who allow property to be used by a
cannabis business establishment, shall be unenforceable on the
basis that cultivating, obtaining, manufacturing, processing,
distributing, dispensing, transporting, selling, possessing or
using cannabis is prohibited by Federal law.
Section 297. Medical cannabis.
(a) Construction.--Nothing in this chapter shall be
construed to limit any privileges or rights of a medical
cannabis patient, including minor patients, primary caregivers,
medical cannabis grower/processors or medical cannabis
dispensaries under Chapter 3. If there is conflict between this
chapter and Chapter 3 as they relate to medical cannabis
patients, the provisions of this chapter shall prevail.
(b) Sale permitted.--Dispensary locations permitted under
this chapter shall be authorized to sell cannabis to purchasers
and to qualified patients, and all dispensing organizations
shall be subject to the provisions under Chapter 3.
SUBCHAPTER K
TAXES
Section 299.1. Imposition of sales tax and excise tax.
(a) Rate of sales tax.--A sales tax is imposed at the rate
of 6% of the sales price for cannabis, edible and infused
products sold or otherwise transferred to any person other than
a cannabis business establishment.
(b) Rate of excise tax.--In addition to all other applicable
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taxes, an excise tax is imposed on each dispensary organization
at the rate of 8% of the sales price for cannabis sold or
otherwise transferred to any person other than a cannabis
business establishment. 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.
Section 299.2. Administration of taxes and distribution of
revenue.
(a) Administration.--The Department of Revenue shall
administer the taxes imposed under this chapter and Chapter 3,
and may promulgate regulations that prescribe a method and
manner for payment of the tax to ensure proper tax collection
under this chapter and Chapter 3.
(b) Disbursement.--Revenue from all taxes collected under
this chapter and Chapter 3 shall be disbursed as follows:
(1) Ten percent of the revenue shall be disbursed to
municipalities in which a cannabis business establishment is
located, disbursed in proportion to the number of cannabis
business establishments within the municipality;
(2) Ten percent of the revenue shall be disbursed to
counties in which a cannabis business establishment is
located in an unincorporated part of the county, disbursed in
proportion to the number of cannabis business establishments
within the unincorporated part of the county; and
(3) Eighty percent of the revenue shall be deposited in
the Cannabis Regulation Fund.
Section 299.3. (Reserved).
SUBCHAPTER L
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CANNABIS CLEAN SLATE
Section 299.11. Cannabis clean slate.
(a) Individual eligible for expungement.--
(1) An individual who has been arrested for, charged
with or convicted under section 13(a)(30) or (31) of the act
of April 14, 1972 (P.L.233, No.64), known as The Controlled
Substance, Drug, Device and Cosmetic Act, as it relates to
cannabis shall have the individual's criminal history related
to the criminal proceeding expunged in accordance with
subsection (b).
(2) This subsection shall only apply to nonviolent
offenses.
(b) Expungement process.--
(1) The Administrative Office of Pennsylvania Courts
shall, within six months of the effective date of this
paragraph, transmit to the Pennsylvania State Police central
repository all records related to an arrest or conviction
under subsection (a) for expungement.
(2) If the Pennsylvania State Police determines a record
transmitted under paragraph (1) is not eligible for
expungement, it shall notify the Administrative Office of
Pennsylvania Courts of the determination within 30 days of
receiving the information. Upon expiration of the 30-day
period, the Administrative Office of Pennsylvania Courts
shall provide to the court of common pleas in which the
arrest or adjudication occurred a list of all records
eligible for expungement. Within 30 days of receiving the
list, the court of common pleas shall order the expungement
of all criminal history records received under this section
and all administrative records of the Department of
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Transportation relating to the criminal history records
received under this section.
(c) Release of inmates.--A court of common pleas that has
received an expungement order for a person currently
incarcerated for the crime for which the court received the
expungement order shall transmit to the appropriate county
correctional institution or State correctional institution, as
defined under 61 Pa.C.S. § 102 (relating to definitions), an
order for the immediate release or discharge of the individual
whose record has been ordered to be expunged.
(d) Motor vehicle operation privileges.--The Bureau of Motor
Vehicles shall reinstate an individual's suspended or revoked
motor vehicle operation privileges that were suspended or
revoked as a result of the individual's conviction that has been
expunged under this section.
(e) Reinstatement of license or registration.--A license or
registration that has been suspended or revoked under section 23
of The Controlled Substance, Drug, Device and Cosmetic Act due
to an arrest or conviction that has been expunged under this
section shall be reinstated.
SUBCHAPTER M
MISCELLANEOUS PROVISIONS
Section 299.21. Conflicts.
The cultivation, processing, manufacture, acquisition,
transportation, sale, dispensing, distribution, possession and
consumption of cannabis permitted under this chapter shall not
be deemed to be a violation of the act of April 14, 1972
(P.L.233, No.64), known as The Controlled Substance, Drug,
Device and Cosmetic Act. If a provision of the Controlled
Substance, Drug, Device and Cosmetic Act relating to cannabis
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conflicts with a provision of this chapter, this chapter shall
take precedence.
Section 299.22. (Reserved).
Section 299.23. Implementation.
The issuance of licenses and other authorizations specified
under this chapter shall begin no later than 180 days after the
effective date of this section.
CHAPTER 3
MEDICAL USE OF CANNABIS
SUBCHAPTER A
PRELIMINARY PROVISIONS
Section 301. Scope of chapter.
This chapter relates to the regulation and use of medical
cannabis in this Commonwealth.
Section 302. Declaration of policy.
The General Assembly finds and declares as follows:
(1) Scientific evidence suggests that medical cannabis
is one potential therapy that may mitigate suffering in some
patients and also enhance quality of life.
(2) The Commonwealth is committed to patient safety.
Carefully regulating the program which allows access to
medical cannabis will enhance patient safety while research
into its effectiveness continues.
(3) It is the intent of the General Assembly to:
(i) Provide a program of access to medical cannabis
which balances the need of patients to have access to the
latest treatments with the need to promote patient
safety.
(ii) Provide a safe and effective method of delivery
of medical cannabis to patients.
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(iii) Promote high quality research into the
effectiveness and utility of medical cannabis.
(4) It is the further intention of the General Assembly
that any Commonwealth-based program to provide access to
medical cannabis serve as a temporary measure, pending
Federal approval of and access to medical cannabis through
traditional medical and pharmaceutical avenues.
Section 303. (Reserved).
SUBCHAPTER B
PROGRAM
Section 311. Program established.
A medical cannabis program for patients suffering from
serious medical conditions is established. The program shall be
implemented and administered by the board.
Section 312. (Reserved).
Section 313. Lawful use of medical cannabis by patients.
(a) General rule.--Notwithstanding any provision of law to
the contrary, use or possession of medical cannabis as set forth
in this chapter is lawful within this Commonwealth.
(b) Requirements.--The lawful use of medical cannabis is
subject to the following:
(1) Medical cannabis may only be dispensed to:
(i) a patient who receives a certification from a
practitioner and is in possession of a valid
identification card issued by the board; and
(ii) a caregiver who is in possession of a valid
identification card issued by the board.
(2) Subject to regulations promulgated under this
chapter, medical cannabis may only be dispensed to a patient
or caregiver in the following forms approved by the board:
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(i) Infused products.
(ii) Edible products.
(iii) Forms medically appropriate for administration
by vaporization or nebulization, including dry leaf and
plant material.
(3) (Reserved).
(4) A patient may designate up to two caregivers at any
one time.
(5) Medical cannabis that has not been used by the
patient shall be kept in the original package in which it was
dispensed.
(6) A patient or caregiver shall possess an
identification card whenever the patient or caregiver is in
possession of medical cannabis.
(7) Products packaged by a grower/processor or sold by a
dispensary shall only be identified by the name of the
grower/processor, the name of the dispensary, the form and
species of medical cannabis, the percentage of
tetrahydrocannabinol and cannabinol contained in the product
and any other labeling required by the board.
(c) Limitations on cultivating cannabis.--Cultivating
cannabis for personal use by a patient shall be subject to the
following limitations:
(1) A resident of this Commonwealth 21 years of age or
older who is a patient may cultivate cannabis plants, with a
limit of two mature cannabis plants and one immature cannabis
plant that are more than five inches tall, without a
cultivation center or micro cultivation center license. The
plant limitation specified under this paragraph shall be
cumulative for households in which more than one patient
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resides. As used in this paragraph, the term "resident" means
an individual who has been domiciled in this Commonwealth for
a period of 30 days prior to cultivation.
(2) Cannabis cultivation by a patient shall take place
in an enclosed, locked space.
(3) A patient 21 years of age or older shall purchase
cannabis seeds or clones from a dispensary for the purpose of
home cultivation. Seeds or clones may not be given or resold
to any other individual regardless of age.
(4) Cannabis plants may not be stored or placed in a
location where they are subject to ordinary public view. A
patient who cultivates cannabis shall take reasonable
precautions to ensure that the plants are secure from
unauthorized access, including unauthorized access by an
individual who is under 21 years of age.
(5) Cannabis cultivation for personal use by a patient
may occur only on residential property lawfully in possession
of the patient cultivating cannabis for personal use or with
the consent of the person in lawful possession of the
property. An owner or lessor of residential property may
prohibit the cultivation of cannabis by a lessee.
(6) Cannabis plants may only be tended by a patient who
resides at the residence or an individual authorized by a
patient attending to the residence for brief periods.
(7) A patient who cultivates more than the allowable
number of cannabis plants, or who sells or gives away
cannabis plants, cannabis, edible or infused products, shall
be liable for penalties as provided by State law in addition
to loss of home cultivation privileges as established by
regulation by the board.
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(8) Cannabis cultivated by a patient and cannabis
produced by cannabis plants grown, if the amount of cannabis
produced is in excess of 30 grams of raw cannabis, shall
remain secured within the residence or residential property
in which the cannabis is grown.
Section 314. (Reserved).
SUBCHAPTER C
PRACTITIONERS
Section 321. Practitioner registration.
(a) Eligibility.--A physician included in the registry is
authorized to issue certifications to patients to use medical
cannabis. To be eligible for inclusion in the registry:
(1) A physician must apply for registration in the form
and manner required by the board.
(2) The board must determine that the physician is, by
training or experience, qualified to treat a serious medical
condition. The physician shall provide documentation of
credentials, training or experience as required by the board.
(3) The physician must have successfully completed the
course under section 206(c)(24).
(b) Board action.--
(1) The board shall review an application submitted by a
physician to determine whether to include the physician in
the registry. The review shall include information maintained
by the Department of State regarding whether the physician
has a valid, unexpired, unrevoked, unsuspended Pennsylvania
license to practice medicine and whether the physician has
been subject to discipline.
(2) The inclusion of a physician in the registry shall
be subject to annual review to determine if the physician's
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license is no longer valid, has expired or been revoked or
the physician has been subject to discipline. If the license
is no longer valid, the board shall remove the physician from
the registry until the physician holds a valid, unexpired,
unrevoked, unsuspended Pennsylvania license to practice
medicine.
(3) The Department of State shall report to the board
the expiration, suspension or revocation of a physician's
license and any disciplinary actions in a timely fashion.
(c) Practitioner requirements.--A practitioner included in
the registry shall have an ongoing responsibility to immediately
notify the board in writing if the practitioner knows or has
reason to know that any of the following is true with respect to
a patient for whom the practitioner has issued a certification:
(1) The patient no longer has the serious medical
condition for which the certification was issued.
(2) Medical cannabis would no longer be therapeutic or
palliative.
(3) The patient has died.
Section 322. Practitioner restrictions.
(a) Practices prohibited.--The following apply with respect
to practitioners:
(1) A practitioner may not accept, solicit or offer any
form of remuneration from or to a prospective patient,
patient, prospective caregiver, caregiver or medical cannabis
organization, including an employee, financial backer or
principal, to certify a patient, other than accepting a fee
for service with respect to the examination of the
prospective patient to determine if the prospective patient
should be issued a certification to use medical cannabis.
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(2) A practitioner may not hold a direct or economic
interest in a medical cannabis organization.
(b) Unprofessional conduct.--A practitioner who violates
subsection (a) may not issue certifications to patients. The
practitioner shall be removed from the registry.
(c) Discipline.--In addition to any other penalty that may
be imposed under this chapter, a violation of subsection (a) or
section 323(f) shall be deemed unprofessional conduct under
section 41(8) of the act of December 20, 1985 (P.L.457, No.112),
known as the Medical Practice Act of 1985, or section 15(a)(8)
of the act of October 5, 1978 (P.L.1109, No.261), known as the
Osteopathic Medical Practice Act, and shall subject the
practitioner to discipline by the State Board of Medicine or the
State Board of Osteopathic Medicine, as appropriate.
Section 323. Issuance of certification.
(a) Conditions for issuance.--A certification to use medical
cannabis may be issued by a practitioner to a patient if all of
the following requirements are met:
(1) The practitioner has been approved by the board for
inclusion in the registry and has a valid, unexpired,
unrevoked, unsuspended Pennsylvania license to practice
medicine at the time of the issuance of the certification.
(2) The practitioner has determined that the patient has
a serious medical condition and has included the condition in
the patient's health care record.
(3) The patient is under the practitioner's continuing
care for the serious medical condition.
(4) In the practitioner's professional opinion and
review of past treatments, the practitioner determines the
patient is likely to receive therapeutic or palliative
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benefit from the use of medical cannabis.
(b) Contents.--The certification shall include:
(1) The patient's name, date of birth and address.
(2) The specific serious medical condition of the
patient.
(3) A statement by the practitioner that the patient has
a serious medical condition and the patient is under the
practitioner's continuing care for the serious medical
condition.
(4) The date of issuance.
(5) The name, address, telephone number and signature of
the practitioner.
(6) Any requirement or limitation concerning the
appropriate form of medical cannabis and limitation on the
duration of use, if applicable, including whether the patient
is terminally ill.
(c) Consultation.--A practitioner shall review the
prescription drug monitoring program prior to:
(1) Issuing a certification to determine the controlled
substance history of a patient.
(2) Recommending a change of amount or form of medical
cannabis.
(d) Other access by practitioner.--A practitioner may access
the prescription drug monitoring program to do any of the
following:
(1) Determine whether a patient may be under treatment
with a controlled substance by another physician or other
person.
(2) Allow the practitioner to review the patient's
controlled substance history as deemed necessary by the
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practitioner.
(3) Provide to the patient, or caregiver on behalf of
the patient if authorized by the patient, a copy of the
patient's controlled substance history.
(e) Duties of practitioner.--The practitioner shall:
(1) Provide the certification to the patient.
(2) Provide a copy of the certification to the board,
which shall place the information in the patient directory
within the board's electronic database. The board shall
permit electronic submission of the certification.
(3) File a copy of the certification in the patient's
health care record.
(f) Prohibition.--A practitioner may not issue a
certification for the practitioner's own use or for the use of a
family or household member.
Section 324. Certification form.
The board shall develop a standard certification form, which
shall be available to practitioners upon addition to the
physician registry. The form shall be available electronically.
The form shall include a statement that a false statement made
by a practitioner is punishable under the applicable provisions
of 18 Pa.C.S. Ch. 49 (relating to falsification and
intimidation).
Section 325. Duration.
Receipt of medical cannabis by a patient or caregiver from a
dispensary may not exceed a 90-day supply of individual doses.
During the last seven days of any 30-day period during the term
of the identification card, a patient may obtain and possess a
90-day supply for the subsequent 30-day period. Additional 90-
day supplies may be provided in accordance with this section for
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the duration of the authorized period of the identification card
unless a shorter period is indicated on the certification.
SUBCHAPTER D
PATIENTS
Section 331. Identification cards.
(a) Issuance.--The board may issue an identification card to
a patient who has a certification approved by the board and to a
caregiver designated by the patient. An identification card
issued to a patient shall authorize the patient to obtain and
use medical cannabis as authorized by this chapter. An
identification card issued to a caregiver shall authorize the
caregiver to obtain medical cannabis on behalf of the patient.
(b) Procedure for issuance.--The board shall develop and
implement procedures for:
(1) Review and approval of applications for
identification cards.
(2) Issuance of identification cards to patients and
caregivers.
(3) Review of the certification submitted by the
practitioner and the patient.
(c) Application.--A patient or a caregiver may apply, in a
form and manner prescribed by the board, for issuance or renewal
of an identification card. A caregiver must submit a separate
application for issuance or renewal. Each application must
include:
(1) The name, address and date of birth of the patient.
(2) The name, address and date of birth of a caregiver.
(3) The certification issued by the practitioner.
(4) The name, address and telephone number of the
practitioner and documentation from the practitioner that all
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of the requirements of section 323(a) have been met.
(5) A $50 processing fee. The board may waive or reduce
the fee if the applicant demonstrates financial hardship.
(6) The signature of the applicant and date signed.
(7) Other information required by the board.
(d) Forms.--Application and renewal forms shall be available
on the board's publicly accessible Internet website.
(e) Expiration.--An identification card of a patient or
caregiver shall expire within one year from the date of
issuance, upon the death of the patient or as otherwise provided
in this section.
(f) Separate cards to be issued.--The board shall issue
separate identification cards for patients and caregivers as
soon as reasonably practicable after receiving completed
applications, unless it determines that an application is
incomplete or factually inaccurate, in which case it shall
promptly notify the applicant.
(g) (Reserved).
(h) Change in name or address.--A patient or caregiver who
has been issued an identification card shall notify the board
within 10 days of any change of name or address. In addition,
the patient shall notify the board within 10 days if the patient
no longer has the serious medical condition noted on the
certification.
(i) Lost or defaced card.--In the event of a lost, stolen,
destroyed or illegible identification card, the patient or
caregiver shall apply to the board within 10 business days of
discovery of the loss or defacement of the card for a
replacement card. The application for a replacement card shall
be on a form furnished by the board and accompanied by a $25
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fee. The board may establish higher fees for issuance of second
and subsequent replacement identification cards. The board may
waive or reduce the fee in cases of demonstrated financial
hardship. The board shall issue a replacement identification
card as soon as practicable. A patient or caregiver may not
obtain medical cannabis until the board issues the replacement
card.
Section 332. Caregivers.
(a) Requirements.--
(1) If the patient designates a caregiver, the
application shall include the name, address and date of birth
of the caregiver, other individual identifying information
required by the board and the following:
(i) Federal and Commonwealth criminal history record
information as set forth in subsection (b).
(ii) If the caregiver has an identification card for
the caregiver or another patient, the expiration date of
the identification card.
(iii) Other information required by the board.
(2) The application shall be accompanied by a fee of
$50. The board may waive or reduce the fee in cases of
demonstrated financial hardship.
(3) The board may require additional information for the
application.
(4) The application shall be signed and dated by the
applicant.
(b) Criminal history.--A caregiver who has not been
previously approved by the board under this section shall submit
fingerprints for the purpose of obtaining criminal history
record checks, and the Pennsylvania State Police or its
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authorized agent shall submit the fingerprints to the Federal
Bureau of Investigation for the purpose of verifying the
identity of the applicant and obtaining a current record of any
criminal arrests and convictions. Any criminal history record
information relating to a caregiver obtained under this section
by the board may be interpreted and used by the board only to
determine the applicant's character, fitness and suitability to
serve as a caregiver under this chapter. The criminal history
record information provided under this subsection may not be
subject to the limitations under 18 Pa.C.S. § 9121(b)(2)
(relating to general regulations). The board shall also review
the prescription drug monitoring program relating to the
caregiver. The board shall deny the application of a caregiver
who has been convicted of a criminal offense that occurred
within the past five years relating to the sale or possession of
drugs, narcotics or controlled substances. The board may deny an
application if the applicant has a history of drug abuse or of
diverting controlled substances or illegal drugs.
Section 333. Notice.
An application for an identification card shall include
notice that a false statement made in the application is
punishable under the applicable provisions of 18 Pa.C.S. Ch. 49
(relating to falsification and intimidation).
Section 334. Verification.
The board shall verify the information in a patient or
caregiver's application and on any renewal form.
Section 335. Special conditions.
The following apply:
(1) If the practitioner states in the certification
that, in the practitioner's professional opinion, the patient
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would benefit from medical cannabis only until a specified
earlier date, then the identification card shall expire on
that date.
(2) If the certification so provides, the identification
card shall state any requirement or limitation by the
practitioner as to the form of medical cannabis for the
patient.
Section 336. (Reserved).
Section 337. Minors.
If a patient is under 18 years of age, the following shall
apply:
(1) The patient shall have a caregiver.
(2) A caregiver must be one of the following:
(i) A parent or legal guardian of the patient.
(ii) An individual designated by a parent or legal
guardian.
(iii) An appropriate individual approved by the
board upon a sufficient showing that no parent or legal
guardian is appropriate or available.
Section 338. Caregiver authorization and limitations.
(a) Age.--An individual who is under 21 years of age may not
be a caregiver unless a sufficient showing, as determined by the
board, is made to the board that the individual should be
permitted to serve as a caregiver.
(b) Changing caregiver.--If a patient wishes to change or
terminate the designation of the patient's caregiver, for
whatever reason, the patient shall notify the board as soon as
practicable. The board shall issue a notification to the
caregiver that the caregiver's identification card is invalid
and must be promptly returned to the board.
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(c) Denial in part.--If an application of a patient
designates an individual as a caregiver who is not authorized to
be a caregiver, that portion of the application shall be denied
by the board. The board shall review the balance of the
application and may approve that portion of it.
Section 339. Contents of identification card.
An identification card shall contain the following:
(1) The name of the caregiver or the patient, as
appropriate. The identification card shall also state whether
the individual is designated as a patient or as a caregiver.
(2) The date of issuance and expiration date.
(3) An identification number for the patient or
caregiver, as appropriate.
(4) A photograph of the individual to whom the
identification card is being issued, whether the individual
is a patient or a caregiver. The method of obtaining the
photograph shall be specified by the board by regulation. The
board shall provide reasonable accommodation for a patient
who is confined to the patient's home or is in inpatient
care.
(5) Any requirement or limitation set by the
practitioner as to the form of medical cannabis.
(6) Any other requirements determined by the board,
except the board may not require that an identification card
disclose the patient's serious medical condition.
Section 339.1. Suspension.
If a patient or caregiver intentionally, knowingly or
recklessly violates any provision of this chapter as determined
by the board, the identification card of the patient or
caregiver may be suspended or revoked. The suspension or
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revocation shall be in addition to any criminal or other penalty
that may apply.
Section 339.2. Prohibitions.
The following prohibitions shall apply:
(1) A patient may not operate or be in physical control
of any of the following while under the influence with a
blood content of more than 15 nanograms of active
tetrahydrocannabis per milliliter of blood in serum:
(i) Chemicals which require a permit issued by the
Federal Government or a state government or an agency of
the Federal Government or a state government.
(ii) High-voltage electricity or any other public
utility.
(2) A patient may not perform any employment duties at
heights or in confined spaces, including mining, while under
the influence of medical cannabis.
(3) A patient may be prohibited by an employer from
performing any task which the employer deems life-
threatening, to either the employee or any of the employees
of the employer, while under the influence of medical
cannabis. The prohibition shall not be deemed an adverse
employment decision even if the prohibition results in
financial harm for the patient.
(4) A patient may be prohibited by an employer from
performing any duty which could result in a public health or
safety risk while under the influence of medical cannabis.
The prohibition shall not be deemed an adverse employment
decision even if the prohibition results in financial harm
for the patient.
SUBCHAPTER E
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(Reserved)
SUBCHAPTER F
(Reserved)
SUBCHAPTER G
DISPENSARIES
Section 361. Dispensing to patients and caregivers.
(a) General rule.--A dispensary that has been issued a
permit under Chapter 2 may lawfully dispense medical cannabis to
a patient or caregiver upon presentation to the dispensary of a
valid identification card for that patient or caregiver. The
dispensary shall provide to the patient or caregiver a receipt,
as appropriate. The receipt shall include all of the following:
(1) The name, address and any identification number
assigned to the dispensary by the board.
(2) The name and address of the patient and caregiver.
(3) The date the medical cannabis was dispensed.
(4) Any requirement or limitation by the practitioner as
to the form of medical cannabis for the patient.
(5) The form and the quantity of medical cannabis
dispensed.
(b) Requirements.--A dispensary shall have a physician or a
pharmacist available, either in person or by synchronous
interaction, to verify patient certifications and to consult
with patients and caregivers at all times during the hours the
dispensary is open to receive patients and caregivers. If a
dispensary has more than one separate location, a physician
assistant or a certified registered nurse practitioner may
verify patient certifications and consult with patients and
caregivers, either in person or by synchronous interaction, at
each of the other locations in lieu of the physician or
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pharmacist. A physician, a pharmacist, a physician assistant or
a certified registered nurse practitioner shall, prior to
assuming duties under this paragraph, successfully complete the
course established in section 206(c)(24). A physician may not
issue a certification to authorize patients to receive medical
cannabis or otherwise treat patients at the dispensary.
(c) Filing with board.--Prior to dispensing medical cannabis
to a patient or caregiver, the dispensary shall file the receipt
information with the board utilizing the electronic tracking
system. When filing receipts under this subsection, the
dispensary shall dispose of any electronically recorded
certification information as provided by regulation.
(d) Limitations.--No dispensary may dispense to a patient or
caregiver:
(1) a quantity of medical cannabis greater than that
which the patient or caregiver is permitted to possess under
the certification; or
(2) a form of medical cannabis prohibited by this
chapter.
(e) Supply.--When dispensing medical cannabis to a patient
or caregiver, the dispensary may not dispense an amount greater
than a 90-day supply until the patient has exhausted all but a
seven-day supply provided under a previously issued
certification until additional certification is presented under
section 325.
(f) Verification.--Prior to dispensing medical cannabis to a
patient or caregiver, the dispensary shall verify the
information in subsections (e) and (g) by consulting the seed-
to-sale tracking system established under section 206(c)(12).
(g) Form of medical cannabis.--Medical cannabis dispensed to
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a patient or caregiver by a dispensary shall conform to any
requirement or limitation set by the practitioner as to the form
of medical cannabis for the patient.
(h) Safety insert.--When a dispensary dispenses medical
cannabis to a patient or caregiver for the first time, the
dispensary shall provide to that patient or caregiver, as
appropriate, a safety insert. The insert shall be developed and
approved by the board. The insert shall provide the following
information:
(1) Lawful methods for administering medical cannabis in
individual doses.
(2) Any potential dangers stemming from the use of
medical cannabis.
(3) How to recognize what may be problematic usage of
medical cannabis and how to obtain appropriate services or
treatment for problematic usage.
(4) How to prevent or deter the misuse of medical
cannabis by minors or others.
(5) Any other information as determined by the board.
(i) Sealed and labeled package.--Medical cannabis shall be
dispensed by a dispensary to a patient or caregiver in a sealed
and properly labeled package. The labeling shall contain the
following:
(1) The information required to be included in the
receipt provided to the patient or caregiver, as appropriate,
by the dispensary.
(2) The packaging date.
(3) Any applicable date by which the medical cannabis
should be used.
(4) A warning stating:
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This product is for medicinal use only. Women should
not consume during pregnancy or while breastfeeding
except on the advice of the practitioner who issued
the certification and, in the case of breastfeeding,
the infant's pediatrician. This product might impair
the ability to drive or operate heavy machinery. Keep
out of reach of children.
(5) The amount of individual doses contained within the
package and the species and percentage of
tetrahydrocannabinol and cannabidiol.
(6) A warning that the medical cannabis must be kept in
the original container in which it was dispensed.
(7) A warning that unauthorized use is unlawful and will
subject the person to criminal penalties.
(8) Any other information required by the board.
Section 362. Facility requirements.
The following shall apply:
(1) A dispensary may dispense medical cannabis in an
indoor, enclosed, secure facility located within this
Commonwealth or in accordance with a curbside delivery
protocol as determined by the board.
(2) For the purposes of paragraph (1), a dispensary
shall maintain continuous motion-activated video
surveillance. The dispensary is required to retain the
recordings electronically onsite or offsite for a period of
no less than 180 days, unless otherwise required for
investigative or litigation purposes.
(3) A dispensary may not operate on the same site as a
facility used for growing and processing medical cannabis.
(4) A dispensary may not be located within 1,000 feet of
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the property line of a public, private or parochial school or
a day-care center. The board may waive the prohibition under
this paragraph if it is shown by clear and convincing
evidence that the waiver is necessary to provide adequate
access to patients, including additional security, physical
plant of a facility or other conditions necessary to protect
children.
(5) A dispensary may sell medical devices and
instruments which are needed to administer medical cannabis
under this chapter.
(6) A dispensary may sell services approved by the board
related to the use of medical cannabis.
Section 363. Posting.
A dispensary shall post a copy of its permit in a location
within its facility in a manner that is easily observable by
patients, caregivers, law enforcement officers and agents of the
board.
SUBCHAPTER H
(Reserved)
SUBCHAPTER I
(Reserved)
SUBCHAPTER J
(Reserved)
SUBCHAPTER K
OFFENSES RELATED TO PATIENTS,
CAREGIVERS AND PROVIDERS
Section 393.1. Criminal diversion of medical cannabis by
practitioners.
In addition to any other penalty provided by law, a
practitioner commits a misdemeanor of the first degree if the
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practitioner intentionally, knowingly or recklessly certifies a
person as being able to lawfully receive medical cannabis or
otherwise provides medical cannabis to a person who is not
lawfully permitted to receive medical cannabis.
Section 393.2. (Reserved).
Section 393.3. (Reserved).
Section 393.4. (Reserved).
Section 393.5. Falsification of identification cards.
(a) Offense defined.--In addition to any other penalty
provided by law, a person commits an offense if, knowing the
person is not privileged to hold an identification card, the
person:
(1) possesses an identification card and either attempts
to use the card to obtain medical cannabis or obtains medical
cannabis;
(2) possesses an identification card which falsely
identifies the person as being lawfully entitled to receive
medical cannabis and either attempts to use the card to
obtain medical cannabis or obtains medical cannabis; or
(3) possesses an identification card which contains any
false information on the card and the person either attempts
to use the card to obtain medical cannabis or obtains medical
cannabis.
(b) Grading.--A first offense under this section constitutes
a misdemeanor of the second degree. A second or subsequent
offense under this section constitutes a misdemeanor of the
first degree.
Section 393.6. Adulteration of cannabis by patient, caregiver
or practitioner.
(a) General rule.--In addition to any other penalty provided
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by law, a person commits an offense if the person adulterates,
fortifies, contaminates or changes the character or purity of
cannabis from that set forth on the patient's or caregiver's
identification card.
(b) Grading.--A first offense under this section constitutes
a misdemeanor of the second degree. A second or subsequent
offense under this section constitutes a misdemeanor of the
first degree.
Section 393.7. Disclosure of information prohibited.
(a) Offense defined.--In addition to any other penalty
provided by law, an employee, financial backer, operator or
principal of any of the following commits a misdemeanor of the
third degree if the person discloses, except to authorized
persons for official governmental or health care purposes, any
information related to the use of cannabis by a patient or
caregiver:
(1) A medical cannabis organization.
(2) A clinical registrant or academic clinical research
center under Subchapter M.
(3) An employee or contractor of the board.
(b) Exception.--Subsection (a) shall not apply where
disclosure is permitted or required by law or by court order.
The board, including an authorized employee, requesting or
obtaining information under this chapter shall not be subject to
any criminal liability. The immunity provided by this subsection
shall not apply to any employee of the board who knowingly and
willfully discloses prohibited information under this chapter.
Section 393.8. Additional penalties.
(a) Criminal penalties.--In addition to any other penalty
provided by law, a practitioner, caregiver, patient, employee,
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financial backer, operator or principal of any medical cannabis
organization, and an employee, financial backer, operator or
principal of a clinical registrant or academic clinical research
center under Subchapter M who violates any of the provisions of
this chapter, other than those specified in section 393.1,
393.5, 393.6 or 393.7 or any regulation promulgated under this
chapter:
(1) For a first offense, commits a misdemeanor of the
third degree and shall, upon conviction, be sentenced to pay
a fine of not more than $5,000 or to imprisonment for not
more than six months.
(2) For a second or subsequent offense, commits a
misdemeanor of the third degree and shall, upon conviction,
be sentenced to pay a fine of not more than $10,000 or to
imprisonment for not less than six months nor more than one
year, or both.
(b) Civil penalties.--
(1) In addition to any other remedy available to the
board, the board may assess a civil penalty for a violation
of this chapter, a regulation promulgated under this chapter
or an order issued under this chapter. The following shall
apply:
(2) The board may assess a penalty of not more than
$10,000 for each violation and an additional penalty of not
more than $1,000 for each day of a continuing violation. In
determining the amount of each penalty, the board shall take
the following factors into consideration:
(i) The gravity of the violation.
(ii) The potential harm resulting from the violation
to patients, caregivers or the general public.
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(iii) The willfulness of the violation.
(iv) Previous violations, if any, by the person
being assessed.
(v) The economic benefit to the person being
assessed for failing to comply with the requirements of
this chapter, a regulation promulgated under this chapter
or an order issued under this chapter.
(3) If the board finds that the violation did not
threaten the safety or health of a patient, caregiver or the
general public and the violator took immediate action to
remedy the violation upon learning of it, the board may issue
a written warning in lieu of assessing a civil penalty.
(4) A person who aids, abets, counsels, induces,
procures or causes another person to violate this chapter, a
regulation promulgated under this chapter or an order issued
under this chapter shall be subject to the civil penalties
provided under this subsection.
(c) Sanctions.--
(1) In addition to the penalties provided in subsection
(b) and any other penalty authorized by law, the board may
impose the following sanctions:
(i) Revoke or suspend the permit of a person found
to be in violation of this chapter, a regulation
promulgated under this chapter or an order issued under
this chapter.
(ii) Revoke or suspend the permit of a person for
conduct or activity or the occurrence of an event that
would have disqualified the person from receiving the
permit.
(iii) Revoke or suspend the registration of a
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practitioner for a violation of this chapter or a
regulation promulgated or an order issued under this
chapter or for conduct or activity which would have
disqualified the practitioner from receiving a
registration.
(iv) Suspend a permit or registration of a person
pending the outcome of a hearing in a case in which the
permit or registration could be revoked.
(v) Order restitution of funds or property
unlawfully obtained or retained by a permittee or
registrant.
(vi) Issue a cease and desist order.
(2) A person who aids, abets, counsels, induces,
procures or causes another person to violate this chapter
shall be subject to the sanctions provided under this
subsection.
(d) Costs of action.--The board may assess against a person
determined to be in violation of this chapter the costs of
investigation of the violation.
(e) Minor violations.--Nothing in this section shall be
construed to require the assessment of a civil penalty or the
imposition of a sanction for a minor violation of this chapter
if the board determines that the public interest will be
adequately served under the circumstances by the issuance of a
written warning.
Section 393.9. Other restrictions.
Nothing in this chapter may be construed to permit any person
to engage in or prevent the imposition of any civil, criminal or
other penalty for the following:
(1) Undertaking any task under the influence of medical
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cannabis when doing so would constitute negligence,
professional malpractice or professional misconduct.
(2) Possessing or using medical cannabis in a State or
county correctional facility, including a facility owned or
operated or under contract with the Department of Corrections
or the county which houses inmates serving a portion of their
sentences on parole or other community correction program.
Nothing in this paragraph shall be construed to apply to
employees of the facilities set forth in this paragraph. The
Department of Corrections shall adopt a written policy no
later than October 17, 2027, regarding the possession and use
of medical cannabis by employees in State correctional
facilities. The governing authority of a county may adopt a
resolution no later than October 17, 2027, regarding the
possession and use of medical cannabis by employees in a
county correctional facility.
(3) Possessing or using medical cannabis in a youth
detention center or other facility which houses children
adjudicated delinquent, including the separate, secure State-
owned facility or unit utilized for sexually violent
delinquent children under 42 Pa.C.S. § 6404 (relating to
duration of inpatient commitment and review). As used in this
paragraph, the term "sexually violent delinquent child" shall
have the meaning given to it in 42 Pa.C.S. § 6402 (relating
to definitions). Nothing in this paragraph shall be construed
to apply to employees of the facilities set forth in this
paragraph.
SUBCHAPTER L
(Reserved)
SUBCHAPTER M
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ACADEMIC CLINICAL RESEARCH CENTERS
AND CLINICAL REGISTRANTS
Section 399.21. Legislative findings and declaration of policy.
(a) Legislative findings.--It is determined and declared as
a matter of legislative finding:
(1) Patients suffering from serious medical conditions
deserve the benefit of research conducted in conjunction with
the Commonwealth's medical schools to determine whether
medical cannabis will improve their conditions or symptoms.
(2) The Commonwealth has an interest in creating a
mechanism whereby this Commonwealth's medical schools and
hospitals can help develop research programs and studies in
compliance with applicable law.
(b) Declaration of policy.--The General Assembly declares as
follows:
(1) It is the intention of the General Assembly to
create a mechanism whereby this Commonwealth's medical
schools and hospitals may provide advice to grower/processors
and dispensaries in the areas of patient health and safety,
medical applications and dispensing and management of
controlled substances, among other areas. It is the further
intention of the General Assembly to create a mechanism
whereby the Commonwealth may encourage research associated
with medical cannabis.
(2) (Reserved).
Section 399.22. Definitions.
The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Academic clinical research center." An accredited medical
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school within this Commonwealth that operates or partners with
an acute care hospital licensed within this Commonwealth that
has been approved and certified by the board to enter into a
contract with a clinical registrant.
"Clinical registrant." An entity that:
(1) is approved by the board as a clinical registrant;
(2) has a contractual relationship with an academic
clinical research center under which the academic clinical
research center or its affiliate provides advice to the
entity, regarding, among other areas, patient health and
safety, medical applications and dispensing and management of
controlled substances; and
(3) is approved by the board to hold a permit as both a
grower/processor and a dispensary.
Section 399.23. Academic clinical research centers.
(a) General rule.--An academic clinical research center must
be approved and certified by the board before the academic
clinical research center may contract with a clinical
registrant. An academic clinical research center shall only
contract with one clinical registrant. The accredited medical
school that is seeking approval and certification from the board
as an academic clinical research center must provide all
information required by the board, including information for the
individual who will be the primary contact for the academic
clinical research center during the board's review of the
application. The accredited medical school must also provide all
information required by the board for any licensed acute care
hospital that the accredited medical school will operate or
partner with during the time that it may be approved and
certified as an academic clinical research center by the board.
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(b) Posting and publication of list.--The board shall post a
list containing the name and address of each certified academic
clinical research center on the board's publicly accessible
Internet website and transmit notice to the Legislative
Reference Bureau for publication in the next available issue of
the Pennsylvania Bulletin.
Section 399.24. Clinical registrants.
(a) Approval.--The board may approve additional clinical
registrants as determined by the board. Each clinical registrant
may provide medical cannabis at not more than six separate
locations. A clinical registrant may not hold more than one
grower/processor and one dispensary permit. Once the board
approves an entity as a clinical registrant, the entity shall
comply with this subchapter. The following shall apply:
(1) The board may:
(i) Open applications for the approval of up to two
additional academic clinical research centers and issue
approvals to qualified academic clinical research centers
by July 16, 2028.
(ii) Open applications for the approval of up to two
additional clinical registrants by August 15, 2028, and
issue permits to qualified clinical registrants within
180 days from the date when applications are posted.
(2) (Reserved).
(b) Requirements.--The following shall apply to clinical
registrants:
(1) An entity seeking approval as a clinical registrant
shall submit an application to the board in such form and
manner as the board prescribes. The board shall ensure that
the applicant meets the requirements of this chapter before
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approving the application to become a clinical registrant.
(2) An entity may be issued a permit as a
grower/processor or dispensary before seeking approval as a
clinical registrant. An entity may also apply for a permit as
a grower/processor or a dispensary at the same time the
entity seeks approval from the board as a clinical
registrant.
(3) An entity seeking approval as a clinical registrant
that does not already hold a permit as a grower/processor or
a dispensary shall submit the applications required under
Chapter 2. In reviewing an application, the board shall
ensure that the entity meets all of the requirements for the
issuance of a grower/processor permit or a dispensary permit,
as applicable.
(4) (Reserved).
(5) Except as provided in section 206(c)(2), an entity
seeking approval as a clinical registrant must pay the fees
and meet all other requirements under this chapter for
obtaining a permit as a grower/processor and a dispensary.
Upon approval of the board, a clinical registrant shall be
issued a grower/processor permit and a dispensary permit and
shall be a medical cannabis organization. As a medical
cannabis organization, a clinical registrant must comply with
all the provisions of this chapter relating to medical
cannabis organizations except as otherwise provided in this
subchapter.
(6) The clinical registrant must have a minimum of
$15,000,000 in capital. The board shall verify the capital
requirement.
(7) The clinical registrant shall have all of the same
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rights as a grower/processor permittee and must comply with
all other requirements of this chapter regarding growing,
processing and dispensing medical cannabis.
(8) A grower/processor facility owned by a clinical
registrant may sell its medical cannabis products to all
dispensary facilities. The facility may sell seeds, medical
cannabis plants and medical cannabis products to, or exchange
seeds, medical cannabis plants and medical cannabis products
with, any other grower/processor facility holding a permit
under Chapter 2 or this subchapter.
(9) A clinical registrant may petition the board, on a
form prescribed by the board, for approval to sell certain of
the medical cannabis products grown and processed by its
grower/processor facility to other medical cannabis
organizations holding dispensary permits under Chapter 2. The
petition must be accompanied by a written report of the
clinical registrant's research findings with respect to the
medical cannabis products which are the subject of the
petition. The board shall approve the petition if it has been
demonstrated that the medical cannabis products have a
practical effect on patients which changes a recommendation
within the medical field as indicated in the report submitted
by the clinical registrant.
(10) A dispensary owned by a clinical registrant may
dispense medical cannabis products to a patient or caregiver
who presents a valid identification card to an employee who
is authorized to dispense medical cannabis products at a
dispensary location operated by the clinical registrant,
regardless of whether the patient is a participant in a
research study or program.
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Section 399.25. Research study.
(a) Applicability.--The provisions of this section shall
apply upon publication of the notice under section 399.38.
(b) Procedures.--The board may, upon application, approve
the dispensing of medical cannabis by a clinical registrant to
the academic clinical research center for the purpose of
conducting a research study. The board shall develop the
application and standards for approval of such dispensing by the
clinical registrant. The following apply to the research study:
(1) The clinical registrant shall disclose the following
information to the board in its application:
(i) The reason for the research project, including
the reason for the trial.
(ii) The strain and strength of medical cannabis to
be used in the research study.
(iii) The anticipated duration of the study.
(iv) Evidence of approval of the trial by an
accredited institutional review board and any other
required regulatory approvals.
(v) Other information required by the board, except
that the board may not require disclosure of any
information that would infringe upon the academic
clinical research center's exclusive right to
intellectual property or legal obligations for patient
confidentiality.
(2) The academic clinical research center shall provide
its findings to the board within 365 days of the conclusion
of the research study or within 365 days of publication of
the results of the research study in a peer-reviewed medical
journal, whichever is later. The board shall make available
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all published research on the board's publicly accessible
Internet website within 180 days of receipt from the academic
clinical research center.
(3) The board shall allow the exchange of medical
cannabis seed between clinical registrants for the conduct of
research.
SUBCHAPTER N
MISCELLANEOUS PROVISIONS
Section 399.31. Conflict.
The growth, processing, manufacture, acquisition,
transportation, sale, dispensing, distribution, possession and
consumption of medical cannabis permitted under this chapter
shall not be deemed to be a violation of the act of April 14,
1972 (P.L.233, No.64), known as The Controlled Substance, Drug,
Device and Cosmetic Act. If a provision of the Controlled
Substance, Drug, Device and Cosmetic Act relating to cannabis
conflicts with a provision of this chapter, this chapter shall
take precedence.
Section 399.32. (Reserved).
Section 399.33. Insurers.
Nothing in this chapter shall be construed to require an
insurer or a health plan, whether paid for by Commonwealth funds
or private funds, to provide coverage for medical cannabis.
Notwithstanding any other provision of law, a self-insured
employer or other insurer in this Commonwealth may not be
required to provide coverage for or otherwise reimburse the cost
of medical cannabis.
Section 399.34. Protections for patients and caregivers.
None of the following shall be subject to arrest, prosecution
or penalty in any manner, or denied any right or privilege,
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including civil penalty or disciplinary action by a Commonwealth
licensing board or commission, solely for lawful use of medical
cannabis or manufacture or sale or dispensing of medical
cannabis, or for any other action taken in accordance with this
chapter:
(1) A patient.
(2) A caregiver.
(3) A practitioner.
(4) A medical cannabis organization.
(5) A clinical registrant or academic clinical research
center under Subchapter M.
(6) An employee, principal or financial backer of a
medical cannabis organization.
(7) An employee of a clinical registrant or an employee
of an academic clinical research center under Subchapter M.
(8) A pharmacist, physician assistant or certified
registered nurse practitioner under section 361(b).
Section 399.35. (Reserved).
Section 399.36. (Reserved).
Section 399.37. (Reserved).
Section 399.38. Notice.
Upon amendment of the Controlled Substances Act (Public Law
91-513, 84 Stat. 1236) removing cannabis from Schedule I of the
Controlled Substances Act, the board shall transmit notice of
the effective date of the amendment to the Legislative Reference
Bureau for publication in the next available issue of the
Pennsylvania Bulletin.
Section 399.39. (Reserved).
Section 399.40. (Reserved).
Section 399.41. Repeals.
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Repeals are as follows:
(1) The General Assembly declares that the repeals under
paragraph (2) are necessary to effectuate the addition of
Chapter 3.
(2) The following acts and parts of acts are repealed to
the extent specified:
(i) Sections 4(1)(iv) and 13(a)(31) of the act of
April 14, 1972 (P.L.233, No.64), known as The Controlled
Substance, Drug, Device and Cosmetic Act.
(ii) 18 Pa.C.S. § 7508(a)(1) and (f).
(3) The General Assembly declares that the repeal under
paragraph (4) is necessary to effectuate the addition of
Chapter 3.
(4) The act of April 17, 2016 (P.L.84, No.16), known as
the Medical Marijuana Act, is repealed.
(5) All other acts and parts of acts are repealed
insofar as they are inconsistent with the addition of
Chapters 2 and 3.
Section 399.42. Continuation.
The addition of Chapter 3 is a continuation of the act of
April 17, 2016 (P.L.84, No.16), known as the Medical Marijuana
Act. The following apply:
(1) Except as otherwise provided in Chapter 3, all
activities initiated under the Medical Marijuana Act, shall
continue and remain in full force and effect and may be
completed under Chapter 3. Orders, regulations, rules and
decisions which were made under the Medical Marijuana Act and
which are in effect on the effective date of section
399.41(4) shall remain in full force and effect until
revoked, vacated or modified under Chapter 3. Contracts,
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obligations and collective bargaining agreements entered into
under the Medical Marijuana Act are not affected nor impaired
by the repeal of the Medical Marijuana Act.
(2) Except as set forth in paragraph (3), any difference
in language between Chapter 3 and the Medical Marijuana Act
is intended only to conform to the style of the Pennsylvania
Consolidated Statutes and is not intended to change or affect
the legislative intent, judicial construction or
administration and implementation of the Medical Marijuana
Act.
(3) Paragraph (2) does not apply to the addition of the
following provisions:
The definitions of "board," "chief medical officer,"
"edible product," "executive director," "infused
product," "safety-sensitive position," "serious medical
condition" and "under the influence" in section 102.
Section 311.
Section 313(b)(2) and (c).
Section 324.
Section 361(f) and (h).
Section 362(a)(2).
Section 393.7(a).
Section 393.9(2).
Section 399.21(a)(2).
Section 399.24.
Section 399.25(b)(2).
Section 399.33.
Section 399.43. Effective date.
This act shall take effect immediately.
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