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PRINTER'S NO. 3037
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2309
Session of
2026
INTRODUCED BY MALAGARI, SANCHEZ, MADDEN, GIRAL, HILL-EVANS,
BRENNAN, KINKEAD AND BOROWSKI, MARCH 20, 2026
REFERRED TO COMMITTEE ON HEALTH, MARCH 20, 2026
AN ACT
Amending the act of April 12, 1951 (P.L.90, No.21), entitled "An
act relating to alcoholic liquors, alcohol and malt and
brewed beverages; amending, revising, consolidating and
changing the laws relating thereto; regulating and
restricting the manufacture, purchase, sale, possession,
consumption, importation, transportation, furnishing, holding
in bond, holding in storage, traffic in and use of alcoholic
liquors, alcohol and malt and brewed beverages and the
persons engaged or employed therein; defining the powers and
duties of the Pennsylvania Liquor Control Board; providing
for the establishment and operation of State liquor stores,
for the payment of certain license fees to the respective
municipalities and townships, for the abatement of certain
nuisances and, in certain cases, for search and seizure
without warrant; prescribing penalties and forfeitures;
providing for local option, and repealing existing laws," in
preliminary provisions, further providing for definitions; in
Pennsylvania Liquor Control Board, further providing for
general powers of board, for restrictions on members of the
board and certain employees of Commonwealth, for enforcement
and for biennial reports; in licenses and regulations,
liquor, alcohol and malt and brewed beverages, further
providing for malt and brewed beverages manufacturers',
distributors' and importing distributors' licenses, for
number and kinds of licenses allowed same licensee, for
responsible alcohol management, for surrender of restaurant,
eating place retail dispenser, hotel, club, catering club,
importing distributor and distributor license for benefit of
licensee, for unlawful acts relative to malt or brewed
beverages and licensees and for liability of licensees;
providing for hemp-derived cannabinoid beverages;
establishing the Local Hemp Sharing Fund; and imposing
penalties.
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The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "alcohol service personnel,"
"case," "catered function," "container" and "manufacture" in
section 102 of the act of April 12, 1951 (P.L.90, No.21), known
as the Liquor Code, are amended and the section is amended by
adding definitions to read:
Section 102. Definitions.--The following words or phrases,
unless the context clearly indicates otherwise, shall have the
meanings ascribed to them in this section:
* * *
"Alcohol service personnel" shall mean any employe of a
licensee such as a bartender, waiter or, in the case of a
distributor or importing distributor, a salesperson whose
primary responsibility includes the resale, furnishing or
serving of liquor or malt or brewed beverages. It shall also
mean any employe, such as a doorperson, whose primary
responsibility is to ascertain the age of individuals who are
attempting to enter the licensed premises. An employe of an
alcohol licensee, distributor or importing distributor may be
simultaneously considered to be cannabinoid service personnel.
* * *
"Cannabinoid service personnel" shall mean an employe of a
hemp-derived cannabinoid licensee such as a bartender, waiter
or, in the case of a hemp-derived cannabinoid beverage
distributor or hemp-derived cannabinoid beverage importing
distributor, a salesperson whose primary responsibility includes
the resale, furnishing or serving of hemp-derived cannabinoid
beverages. The term shall also mean an employe, such as a
doorperson, whose primary responsibility is to ascertain the age
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of individuals who are attempting to enter the licensed
premises. An employe of a hemp-derived cannabinoid licensee,
hemp-derived cannabinoid beverage distributor or hemp-derived
cannabinoid beverage importing distributor may be simultaneously
considered to be alcohol service personnel.
"Case" shall mean a package prepared by the manufacturer for
sale or distribution of twelve or more original containers
totaling two hundred sixty-four or more fluid ounces of malt or
brewed beverages excepting those packages containing twenty-four
or more original containers each holding seven fluid ounces or
more. In the context of hemp-derived cannabinoid beverages, the
term shall mean a package prepared by the manufacturer for sale
or distribution of four or more final containers, totaling at
least forty-eight fluid ounces of hemp-derived cannabinoid
beverage.
"Catered function" shall mean the furnishing of food prepared
on the premises or brought onto the premises already prepared in
conjunction with alcoholic beverages and hemp-derived
cannabinoid beverages for the accommodation of a person or an
identifiable group of people, not the general public, who made
arrangements for the function at least thirty days in advance.
* * *
"Container" shall mean and include any receptacle, vessel or
form of package, tank, vat, cask, barrel, drum, keg, can, bottle
or conduit used or capable of use for holding, storing,
transferring or shipment of alcohol, liquor [or], malt or brewed
beverages or hemp-derived cannabinoid beverages .
* * *
"Final container" shall mean a bottle, can, keg or other
suitable container that has been securely capped, sealed or
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corked by the manufacturer of a hemp-derived cannabinoid
beverage at the place of manufacture, with the name and address
of the manufacturer permanently affixed to the bottle, can, keg
or other suitable container or, in the case of a bottle or can,
to the cap or cork used in sealing the bottle or can or to a
label securely affixed to a bottle or can.
* * *
"Hemp" shall mean the plant Cannabis sativa L. and any part
of the plant, whether growing or not, with a delta-9
tetrahydrocannabinol concentration of not more than 0.3% on a
dry-weight basis.
"Hemp-derived cannabinoid beverage" shall mean a beverage
containing THC derived solely and exclusively from hemp.
* * *
"Manufacture", when the term is applied to malt or brewed
beverages, shall mean and include all means, methods and
processes used, employed and made use of, to produce, make and
manufacture for commercial purposes, malt or brewed beverages
from raw materials; when applied otherwise, it shall mean and
include all means, methods and processes used, employed and made
use of, to produce and make alcohol or liquor from raw
materials, and shall mean and include rectification and blending
of alcohol and liquor, the production, recovery or reuse of
alcohol in the making, developing, using in the process of
manufacture, denaturing, redistilling or recovering of any
alcohol or liquor in distilleries, denaturing plants and
wineries. When the term is applied to hemp-derived cannabinoid
beverages, the term shall mean and include all means, methods
and processes used, employed and made use of to derive THC from
hemp and blend or otherwise add the THC to other ingredients to
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make an ingestible mixture or preparation.
* * *
"THC" shall mean tetrahydrocannabinols.
* * *
Section 2. Sections 207(b)(1), 210(a) introductory
paragraph, 211(a)(1), (2), (3), (4) and (7), 217(a) and (b),
431(a.2), 438(b) and (c) and 471.1(a), (b), (d), (e), (f) and
(h) of the act are amended to read:
Section 207. General Powers of Board.--Under this act, the
board shall have the power and its duty shall be:
* * *
(b) The following shall apply:
(1) To control the manufacture, possession, sale,
consumption, importation, use, storage, transportation and
delivery of liquor, alcohol [and], malt or brewed beverages and
hemp-derived cannabinoid beverages in accordance with the
provisions of this act, and to fix the wholesale and retail
prices at which liquors and alcohol shall be sold at
Pennsylvania Liquor Stores.
* * *
Section 210. Restrictions on Members of the Board and
Certain Employes of Commonwealth.--(a) A member or employe of
the board or enforcement bureau or a member of the immediate
family of a member or employe of the board or enforcement bureau
shall not be directly or indirectly interested or engaged in any
other business or undertaking within the Commonwealth dealing in
liquor, alcohol, [or] malt or brewed beverages or hemp-derived
cannabinoid beverages, whether as owner, part owner, partner,
member of syndicate, holder of stock exceeding five percent (5%)
of the equity at fair market value of the business, independent
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contractor or manager of a licensed establishment required under
40 Pa. Code § 5.23 (relating to appointment of managers), and
whether for his own benefit or in a fiduciary capacity for some
other person. For the purpose of this subsection only, "employe
of the board or Enforcement Bureau" shall mean any individual
employed by the board or Enforcement Bureau who is responsible
for taking or recommending official action of a nonministerial
nature with regard to:
* * *
Section 211. Enforcement.--(a) There is created within the
Pennsylvania State Police a Bureau of Liquor Control Enforcement
which shall be responsible for enforcing this act and any
regulations promulgated pursuant thereto. Officers and
investigators assigned to the bureau shall have the power and
their duty shall be:
(1) To investigate whenever there are reasonable grounds to
believe liquor, alcohol [or], malt or brewed beverages or hemp-
derived cannabinoid beverages are being sold on premises not
licensed under the provisions of this act. If the investigation
produces evidence of the unlawful sale of liquor [or], malt or
brewed beverages or hemp-derived cannabinoid beverages or any
other violation of the provisions of this act, the officer
involved in the investigation shall institute criminal
proceedings against the person or persons believed to have been
criminally liable, as otherwise provided by law or rule of
court.
(2) To arrest on view, except in private homes, without
warrant, any person actually engaged in the unlawful sale,
importation, manufacture or transportation or having unlawful
possession of liquor, alcohol [or], malt or brewed beverages or
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hemp-derived cannabinoid beverages contrary to the provisions of
this act or any other law of this Commonwealth or any person
whom the officer/investigator, while in the performance of his
assigned duties under and pursuant to this act and any
regulations promulgated under this act, observes to be in
violation of any of the following provisions:
18 Pa.C.S. § 3302 (relating to causing or risking
catastrophe).
18 Pa.C.S. § 3304 (relating to criminal mischief).
18 Pa.C.S. § 4101 (relating to forgery).
18 Pa.C.S. § 5503 (relating to disorderly conduct).
18 Pa.C.S. § 5505 (relating to public drunkenness).
18 Pa.C.S. § 5512 (relating to lotteries, etc.).
18 Pa.C.S. § 5513 (relating to gambling devices,
gambling, etc.).
18 Pa.C.S. § 5514 (relating to pool selling and
bookmaking).
18 Pa.C.S. § 6307 (relating to misrepresentation of age
to secure liquor or malt or brewed beverages).
18 Pa.C.S. § 6308 (relating to purchase, consumption,
possession or transportation of liquor or malt or brewed
beverages).
18 Pa.C.S. § 6309 (relating to representing that minor is
of age).
18 Pa.C.S. § 6310.1 (relating to selling or furnishing
liquor or malt or brewed beverages to minors).
18 Pa.C.S. § 6310.3 (relating to carrying a false
identification card).
(3) Upon reasonable and probable cause, to search for and to
seize, without warrant or process, except in private homes, any
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liquor, alcohol [or], malt or brewed beverages or hemp-derived
cannabinoid beverages unlawfully possessed, manufactured, sold,
imported or transported and any stills, equipment, materials,
utensils, vehicles, boats, vessels, animals, aircraft, or any of
them, which are or have been used in the unlawful manufacture,
sale, importation or transportation of the same. Such liquor,
alcohol, malt or brewed beverages, hemp-derived cannabinoid
beverages, stills, equipment, materials, utensils, vehicles,
boats, vessels, animals or aircraft so seized shall be disposed
of as hereinafter provided.
(4) To investigate and issue citations for any violations of
this act or any laws of this Commonwealth relating to liquor,
alcohol [or], malt or brewed beverages or hemp-derived
cannabinoid beverages, or any regulations of the board adopted
pursuant to such laws or any violation of any laws of this
Commonwealth or of the Federal Government, relating to the
payment of taxes on liquor, alcohol [or], malt or brewed
beverages or hemp-derived cannabinoid beverages by any licensee,
his officers, servants, agents or employes.
* * *
(7) To arrange for the administration of chemical tests of
breath, blood or urine, including preliminary breath tests, to
persons for the purpose of determining the alcoholic content of
blood or the presence of a controlled substance by qualified
personnel of a State or local police department or qualified
personnel of a clinical laboratory licensed and approved by the
Department of Health. The following apply:
(i) The presence of THC in an individual tested by the
bureau shall be considered to be a result of the lawful use of
hemp-derived cannabinoid beverages as outlined in this act
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unless the totality of the circumstances indicates otherwise.
(ii) Nothing in this section shall be construed to prevent
officers of the bureau or investigators of the bureau from
investigating, detaining, taking into custody or conducting
other actions that are considered standard when interacting with
an individual intoxicated by alcohol when officers and
investigators interact with an individual intoxicated by hemp-
derived THC.
* * *
Section 217. Biennial Reports.--(a) The board's Bureau of
Alcohol Education shall prepare a report on [underage alcohol
drinking and high-risk college alcohol drinking] the underage
consumption of alcohol and hemp-derived cannabinoid beverages
in this Commonwealth.
(b) A report shall be prepared biennially and shall address
the following:
(1) Current levels and trends of underage [alcohol drinking]
and high-risk college [alcohol drinking] consumption of alcohol
and hemp-derived cannabinoid beverages in this Commonwealth.
(2) Current programs conducted by State agencies to prevent
underage alcohol drinking and high-risk college [alcohol
drinking] consumption of alcohol and hemp-derived cannabinoid
beverages.
(3) Current science that better defines and suggests proven
prevention strategies for underage [alcohol drinking] and high-
risk college [alcohol drinking] consumption of alcohol and hemp-
derived cannabinoid beverages.
* * *
Section 431. Malt and Brewed Beverages Manufacturers',
Distributors' and Importing Distributors' Licenses.--* * *
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(a.2) The board shall issue to a holder of a manufacturer's
license no more than [two] five storage licenses per
manufacturer to cover storage facilities separate from the
location of the manufacturing facility. A manufacturer may use
its storage facilities to receive, store, repackage, sell and
distribute malt or brewed beverages in the same manner as it can
at its place of manufacture or it may rent, lease or otherwise
acquire space from an importing distributor or bailee for hire
authorized by this act in the same manner as an out of State
manufacturer as set forth in subsection (a.1). A separate
written application must be filed to acquire storage licenses,
and the board is empowered to establish what information must be
provided on that application. Nothing in this act authorizing
off-site storage facilities for manufacturers is intended to
make any change in the manner malt or brewed beverages are
distributed through the three-tier system.
* * *
Section 438. Number and Kinds of Licenses Allowed Same
Licensee.--* * *
(b) No person shall possess or be issued more than one
distributor's or importing distributor's license[.], except that
a person may possess both a hemp-derived cannabinoid beverage
distributor's license and a distributor's license, or a person
may possess both a hemp-derived cannabinoid beverage importing
distributor's license and an importing distributor's license.
(c) No person shall possess more than one class of license,
except that [a]:
(1) A holder of a retail dispenser's license may also be a
holder of a retail liquor license: Provided, however, That
nothing contained in this section shall be construed to prohibit
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a member of the governing board of a public authority created
under subdivision (n) of Article XXIII of the act of August 9,
1955 (P.L.323, No.130), known as "The County Code," from having
an interest in a distributor or importing distributor license
notwithstanding the fact that the public authority has an
interest in one or more retail licenses or acts as a landlord
for one or more retail licenses: And, provided further, That,
notwithstanding any other provision of this section, an entity
may acquire both a manufacturer's license or a limited winery
license and a hotel, restaurant or retail dispenser license for
use at the same location and more than one location may be so
licensed. The licenses and a person's interest in the licenses
or in the entity holding the licenses shall not be subject to
this section.
(2) A holder of a license that grants the ability to
manufacture, sell, transport, distribute or import alcohol may
also hold a hemp-derived cannabinoid beverage license of the
same or equivalent class. The board shall promulgate regulations
clarifying equivalent classes between alcohol licenses and hemp-
derived cannabinoid beverages licenses.
Section 471.1. Responsible Alcohol Management.--(a) The
board is authorized to offer a responsible alcohol service
program to licensees. The program shall consist of four parts:
new employe orientation, training for [alcohol]
alcohol/cannabinoid service personnel, manager/owner training
and the displaying of responsible alcohol and hemp-derived
cannabinoid beverage service signage. New employe orientation
shall consist of orienting newly hired [alcohol]
alcohol/cannabinoid service personnel as to Pennsylvania law
relating to the sale, furnishing or serving of alcoholic
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beverages and hemp-derived cannabinoid beverages to minors and
visibly intoxicated persons. It shall also mean orienting newly
hired [alcohol] alcohol/cannabinoid service personnel to
responsible server practices, as the term is defined by the
board, through regulation. Training for [alcohol]
alcohol/cannabinoid service personnel shall be as set forth by
the board, but at minimum it shall consist of training to
prevent service of alcohol and hemp-derived cannabinoid
beverages to minors and to visibly intoxicated persons.
Manager/owner training shall be as set forth by the board, but
at a minimum it shall consist of training on how to monitor
employes, proper service of alcohol and hemp-derived cannabinoid
beverages and how to develop an appropriate alcohol and hemp-
derived cannabinoid beverage service policy. The responsible
alcohol and hemp-derived cannabinoid beverage service signage
shall be as set forth by the board and shall consist of signage
dealing with the licensee's policy against sales to minors and
visibly intoxicated persons. [Alcohol] Alcohol/cannabinoid
service personnel training may be conducted by the board or by
an entity certified by the board to conduct such training.
(b) The board shall be authorized to certify and decertify
entities that wish to offer training for [alcohol]
alcohol/cannabinoid service personnel. The training entity and
the board shall maintain records establishing the names of
individuals who have successfully undergone [alcohol]
alcohol/cannabinoid service personnel training.
* * *
(d) In order to be considered in compliance with this
section for purposes of section 471, a restaurant, retail
dispenser, eating place, hotel, club, catering club, distributor
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and importing distributor or hemp-derived cannabinoid beverage
retail licensee shall:
(1) have at least fifty per centum of its [alcohol]
alcohol/cannabinoid service personnel certified as having
successfully completed an [alcohol] alcohol/cannabinoid beverage
servers training;
(2) have its manager or owner certified as having
successfully completed manager/owner training;
(3) have all [alcohol] alcohol/cannabinoid service personnel
undergo new employe orientation; and
(4) have appropriate responsible [alcohol]
alcohol/cannabinoid service signage posted on the licensed
premises.
For purposes of this section, an owner is an individual who owns
at least twenty-five per centum of the licensed entity.
(e) Licensees ordered to comply with this act pursuant to
section 471 who change managers shall have sixty calendar days
to have the new manager trained as required by this section. If
a licensee ordered to comply with this act pursuant to section
471 hires additional [alcohol] alcohol/cannabinoid service
personnel, those additional employes shall be deemed to have
been certified from their date of hire if they successfully
complete an [alcohol] alcohol/cannabinoid serving program within
sixty days of their date of hire.
(f) Upon completion of a certified [alcohol]
alcohol/cannabinoid service personnel program or the board's
owner/manager training program, the participant will be
certified by the training entity or the board as having
successfully completed the program. Said certification will be
valid for two years. The licensee shall keep records of the
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certification status of its employes, managers and owners,
including the name of the employe, manager or owner and the date
of that individual's certification, in the same manner as it
keeps other business records pursuant to [section] sections
493(12) and 419-A. The licensee shall also keep records of its
new employe orientation program and records of its responsible
[alcohol] alcohol/cannabinoid service signage as set forth by
the board by regulation.
* * *
(h) Unless successfully completed prior to being hired, all
[alcohol] alcohol/cannabinoid service personnel shall be
required to complete the training for [alcohol]
alcohol/cannabinoid service personnel under subsection (b)
within six months of being hired by a licensed establishment.
Section 3. Section 474.1 heading, (a) and (g)(2) of the act,
amended July 15, 2024 (P.L.700, No.57), are amended and the
section is amended by adding a subsection to read:
Section 474.1. Surrender of Restaurant, Eating Place Retail
Dispenser, Hotel, Club, Catering Club, Importing Distributor
[and], Distributor, Hemp-Derived Cannabinoid Importing
Distributor, Hemp-Derived Cannabinoid Distributor and Hemp-
Derived Cannabinoid Retail License for Benefit of Licensee.--(a)
A restaurant, eating place retail dispenser, hotel, club,
catering club, importing distributor [and], distributor, hemp-
derived cannabinoid importing distributor, hemp-derived
cannabinoid distributor and hemp-derived cannabinoid retail
licensee whose licensed establishment is not in operation for
fifteen consecutive days shall return its license for
safekeeping with the board no later than at the expiration of
the fifteen-day period. The license may only be reissued from
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safekeeping in the manner set forth by the board through
regulation. The regulation shall not differ from regulation
outlining the reissuance of alcohol licenses from safekeeping.
(a.1) The surrender and reissuance of the license holder's
alcohol and hemp-derived cannabinoid beverage licenses may be
conducted together, and if a license holder surrenders both the
alcohol and hemp-derived cannabinoid beverage licenses, both
licenses shall be maintained, stored and otherwise safeguarded
together.
* * *
(g) * * *
(2) [(Reserved).] If a licensee has a hemp-derived
cannabinoid beverage license and an alcohol license in
safekeeping with the board and they request, under paragraph
(1), that the licenses remain in safekeeping for an additional
year, the board shall only charge a fee for one license.
Section 4. Sections 492(11) and 497 of the act are amended
to read:
Section 492. Unlawful Acts Relative to Malt or Brewed
Beverages and Licensees.--
It shall be unlawful--
* * *
(11) Delivery of Malt or Brewed Beverages With Other
Commodities. For any manufacturer, importing distributor or
distributor, or his servants, agents or employes, except with
board approval, to deliver or transport any malt or brewed
beverages in any vehicle in which any other commodity is being
transported. The term "commodity" does not include hemp-derived
cannabinoid beverages.
* * *
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Section 497. Liability of Licensees.--No licensee shall be
liable to third persons on account of damages inflicted upon
them off of the licensed premises by customers of the licensee
unless the customer who inflicts the damages was sold, furnished
or given liquor [or], malt or brewed beverages or hemp-derived
cannabinoid beverages by the said licensee or his agent, servant
or employe when the said customer was visibly intoxicated.
Section 5. The act is amended by adding an article to read:
ARTICLE IV-A
HEMP-DERIVED CANNABINOID BEVERAGES
Section 401-A. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Business associate." A person that is a customer or
supplier of goods or services to or for the benefit of a
legitimate hemp-derived cannabinoid beverage business or
licensed THC extractor or an officer or director, owner,
operator, shareholder, member, employee, agent or financial
backer of a legitimate hemp-derived cannabinoid beverage
business or THC extractor.
"Department." The Department of Revenue of the Commonwealth.
"Depository institution." As follows:
(1) a depository institution as defined in section 3(c)
of the Federal Deposit Insurance Act (64 Stat. 873, 12 U.S.C.
§ 1811 et seq.);
(2) a Federal credit union as defined in section 101 of
the Federal Credit Union Act (48 Stat. 1216, 12 U.S.C. § 1751
et seq.); or
(3) a State credit union as defined in section 101 of
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the Federal Credit Union Act.
"Distributor." A person licensed by the board to engage in
the purchase of hemp-derived cannabinoid beverages only from
Pennsylvania manufacturers of hemp-derived cannabinoid beverages
and from importing distributors of hemp-derived cannabinoid
beverages and the resale of hemp-derived cannabinoid beverages,
except to importing distributors and distributors.
"Federal financial regulatory agency." The Federal Reserve
System, the United States Treasury, the Comptroller of the
Currency, the National Credit Union Administration, the Federal
Deposit Insurance Corporation, the Securities and Exchange
Commission and the Consumer Financial Protection Bureau.
"Financial institution." A depository institution, trust
company, licensee, a person subject to the jurisdiction of a
Federal financial regulatory agency or a person subject to the
jurisdiction of the Department of Banking and Securities under
the act of December 5, 1972 (P.L.1280, No.284), known as the
Pennsylvania Securities Act of 1972.
"Financial services."
(1) A financial product or service:
(i) as defined by section 1002 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act (Public
Law 111-203, 12 U.S.C. § 5301 et seq.), regardless of
whether the customer receiving the product or service is
a consumer or a commercial entity; or
(ii) permitted to be provided under the authority
of:
(A) a national bank or a financial subsidiary
under 12 U.S.C. §§ 24 (42 Stat. 767), 24a (113 Stat.
1373) and 92a (76 Stat. 668);
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(B) a Federal credit union under the Federal
Credit Union Act;
(C) an incorporated institution under the act of
November 30, 1965 (P.L.847, No.356), known as the
Banking Code of 1965;
(D) a credit union under 17 Pa.C.S. (relating to
credit unions);
(E) a person registered, or exempt from
registration, to offer or sell a security or to act
as a broker, dealer, transfer agency, clearing agency
or investment company under the Investment Company
Act of 1940 (54 Stat. 789, 15 U.S.C. § 80a-1 et
seq.);
(F) a person registered, or exempt from
registration, to:
(I) offer or sell a security, under the
Securities Act of 1933 (48 Stat. 74, 15 U.S.C. §
77a et seq.);
(II) act as an exchange, a broker, dealer,
transfer agent or clearing agent under the
Securities Exchange Act of 1934 (48 Stat. 881, 15
U.S.C. § 78a et seq.);
(III) act as an investment adviser under the
Investment Advisers Act of 1940 (54 Stat. 847, 15
U.S.C. § 80b-1 et seq.); or
(IV) act as an investment company under the
Investment Company Act of 1940; or
(G) a person acting as a broker-dealer, agent,
investment adviser or investment adviser
representative in this Commonwealth under the
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Pennsylvania Securities Act of 1972.
(2) The term includes a service, whether performed
directly or indirectly, authorizing, processing, clearing,
settling, billing, transferring for deposit, transmitting,
delivering, instructing to be delivered, reconciling,
collecting or otherwise effectuating or facilitating the
payments of funds, where funds payments or funds are made or
transferred by any means, including by the use of credit
cards, debit cards or other access devices, accounts,
original or substitute checks or electronic funds transfers.
"Hemp-derived cannabinoid beverage licensee." A person who
holds a license under this article.
"Importing distributor." A person licensed by the board to
engage in:
(1) The purchase of hemp-derived cannabinoid beverages
from:
(i) manufacturers of hemp-derived cannabinoid
beverages;
(ii) other persons located outside this
Commonwealth;
(iii) persons licensed under this act as
manufacturers of hemp-derived cannabinoid beverages; and
(iv) importing distributors of hemp-derived
cannabinoid beverages.
(2) The resale of hemp-derived cannabinoid beverages.
"Insurance service." A service provided by an insurer in
this Commonwealth.
"Insurer." An entity or person authorized by the Insurance
Department to transact the business of insurance in this
Commonwealth or designated as an eligible surplus lines insurer
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as defined in section 1602 of the act of May 17, 1921 (P.L.682,
No.284), known as The Insurance Company Law of 1921. The term
includes a person licensed by the Insurance Department to sell,
solicit or negotiate insurance, and that person's officers,
directors, agents and employees.
"Manufacturer." A person, association or corporation engaged
in the production or manufacturing of hemp-derived cannabinoid
beverages in this Commonwealth or elsewhere.
"Principal display panel." As defined in 3 Pa.C.S. § 5722
(relating to definitions).
"Trust company." The term includes:
(1) a national bank authorized to exercise trust powers
as authorized by 12 U.S.C. § 92a;
(2) a trust company as defined by section 102 of the
Banking Code of 1965; or
(3) an interstate bank as defined in section 102 of the
Banking Code of 1965 authorized to exercise the powers of a
trust company in this Commonwealth.
Section 402-A. Authority to issue hemp-derived cannabinoid
beverage licenses and THC extraction licenses.
The board shall issue licenses regarding:
(1) the sale, manufacture, importation, distribution,
furnishing and transportation of hemp-derived cannabinoid
beverages; and
(2) the extraction of THC from hemp and the manufacture,
sale and transportation of emulsions, mixtures, concentrates
or other products made from THC as provided for in this
article.
Section 403-A. THC extraction license.
(a) Issuance.--The board shall issue to a resident of this
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Commonwealth of good repute who applies for, and pays the
license fee prescribed, a THC extraction license to extract
naturally occurring THC from hemp for use in hemp-derived
cannabinoid beverages.
(b) Production of beverages prohibited.--The granting of a
THC extraction license to an applicant does not entitle the
applicant to produce hemp-derived cannabinoid beverages for sale
to:
(1) the general public; or
(2) distributors for resale.
(c) Sale to manufacturer.--The licensee may produce
emulsions, mixes, concentrations or other products containing
THC extracted from hemp for sale to and use by a licensed
manufacturer of hemp-derived cannabinoid beverages.
(d) Sales to nonlicensed persons prohibited.--The licensee
shall not sell extractions, concentrations, mixes or other
ingredients containing THC to a nonlicensed person in or outside
of this Commonwealth, except that the licensee may sell
products to persons outside of this Commonwealth who are
licensed in their state, territory or country of origin.
(e) THC extraction prohibited without license.--It shall be
unlawful for a person who does not apply for, receive and hold a
THC extraction license to extract THC from hemp and produce
emulsions, mixtures, concentrations or other ingredients
containing THC. A person who does not apply for, receive and
hold a THC extraction license is not entitled to the exemptions
and protections offered by section 431-A.
(f) Requirements for licensure.--Requirements for and
information furnished in the application for a THC extraction
license shall mirror the requirements established in section
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410-A. An applicant who willfully furnishes false information in
the application and review process for a THC extraction license
shall be guilty of a misdemeanor and subject to the penalties
outlined in this article.
(g) Regulations.--The board shall promulgate regulations as
necessary to enforce this section.
Section 404-A. Records to be maintained by holders of THC
extraction license.
(a) Maintenance of records.--A THC extraction licensee shall
maintain, in addition to any other records required to be
maintained by this article, a complete and truthful record of
the licensee's operation that covers the preceding five-year
period.
(b) Records to be maintained.--The information and records
to be maintained are as follows:
(1) Dates of acquisition of raw hemp or other hemp
products, the amount received and from whom the material was
received.
(2) Amount of THC extracted daily and what the THC was
used for.
(3) Amount/volume of emulsions, concentrations or other
hemp-derived cannabinoid beverage ingredients produced from
the material received under paragraph (1).
(4) Sales of products produced from the material
received under paragraph (1), including to whom the products
were sold and how much was sold.
(5) Method of delivery of the products sold and delivery
manifests.
(6) Test results of batches of emulsions, concentrations
or other hemp-derived cannabinoid beverage ingredients that
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attest to the THC content of the ingredients or seek to
measure the number of contaminants in the ingredients, if the
tests are performed.
(c) Access to records.--The board, enforcement bureau and
their authorized representatives shall have full access to the
records outlined in this section. Records must be made available
to the board, enforcement bureau or their authorized
representatives within 72 hours of the request for access being
made.
(d) Regulations.--The board may promulgate regulations
concerning how information in subsection (b) is to be recorded
and may develop documents on which information is to be
recorded.
Section 405-A. Hemp-derived cannabinoid beverage retail license
and eligible establishments.
(a) Board authority.--The board may issue a hemp-derived
cannabinoid beverage retail license to an eligible applicant and
establishment. The license shall permit the holder to purchase
hemp-derived cannabinoid beverages and keep the beverages on the
premises and to sell the hemp-derived cannabinoid beverages to
guests, patrons or members for consumption on the licensed
establishment's premises and up to 192 fluid ounces for
consumption off-premises.
(b) Eligible establishments.--Eligible establishments for
hemp-derived cannabinoid beverage retail licenses shall include:
(1) Restaurants, hotels and clubs.
(2) Public venues, as defined by the board, with the
following restrictions on sales of hemp-derived cannabinoid
beverages:
(i) Sales may only be made one hour before, during
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and one hour after an athletic performance, performing
arts event, trade show, convention, banquet or any other
performance at the facility.
(ii) Sales may not be made from 2 a.m. to 7 a.m.
Sales may not occur prior to 11 a.m. on Sunday.
(3) Performing arts facilities, as defined by the board,
with the following restrictions on sales of hemp-derived
cannabinoid beverages:
(i) Sales may be made two hours before, during and
one hour after a performance at the facility.
(ii) Sales may not be made from 2 a.m. to 7 a.m.
Sales may not occur prior to 10 a.m. or after 10 p.m. on
Sunday.
(4) Continuing care retirement communities, as defined
by the board, with the following restrictions and privileges:
(i) Sales of hemp-derived cannabinoid beverages may
not occur from 2 a.m. to 7 a.m. Sales may not occur prior
to 1 p.m. or after 10 p.m. on Sunday.
(ii) Hemp-derived cannabinoid beverages sold or
furnished by the licensee may be possessed anywhere
within the continuing care retirement community
regardless of whether that portion of the premises is
licensed. Hemp-derived cannabinoid beverages sold or
furnished by the licensee may not be taken beyond the
confines of the continuing care retirement community.
(iii) Sales of hemp-derived cannabinoid beverages
may occur in those portions of the premises licensed by
the board as well as in rooms that are lived in or used
by residents of the continuing care retirement community.
Sales of hemp-derived cannabinoid beverages shall be
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limited to residents of the continuing care retirement
community and the guests of residents in conjunction with
the normal, regularly scheduled dining, entertainment or
social activities of the continuing care retirement
community.
(c) Catering licenses and temporary catering permits.--The
board may issue hemp-derived cannabinoid beverage catering
licenses and temporary hemp-derived cannabinoid beverage
catering permits, subject to the following:
(1) The holder of a hemp-derived cannabinoid beverage
catering license or temporary hemp-derived cannabinoid
beverage catering permit may engage in the sale of hemp-
derived cannabinoid beverages at places besides the physical
premises for which the license holder maintains a hemp-
derived cannabinoid beverage retail license. Sales made under
a hemp-derived cannabinoid beverage catering license or
temporary hemp-derived cannabinoid beverage catering permit
shall be for immediate consumption on the catered premises
only. A hemp-derived cannabinoid beverage catering license
shall only be issued to a holder of a hemp-derived
cannabinoid beverage retail permit. There shall be no
licensing prerequisite for obtaining a hemp-derived
cannabinoid beverage catering permit.
(2) Notice of the catered events must be submitted to
the board within seven days of the event taking place. The
board may promulgate regulations that require additional
information, as deemed necessary by the board, to be
furnished regarding the catered event. The board may deny a
hemp-derived cannabinoid beverage catering license holder or
temporary hemp-derived cannabinoid beverage catering permit
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holder the ability to engage in the sale of hemp-derived
cannabinoid beverages at a catered event if the board deems
that the sales will result in unlawful consumption, activity
or sales.
(3) A temporary hemp-derived cannabinoid catering permit
may not have a date of expiration later than 30 days from the
date of issue.
(4) The same restrictions that exist for operations of
and sales by hemp-derived cannabinoid beverage retail license
holders shall apply, as much as applicable as determined by
the board, to a hemp-derived cannabinoid beverage catering
license holder or temporary hemp-derived cannabinoid beverage
catering permit holder.
Section 405.1-A. Sunday sales.
(a) Authorization.--A hemp-derived cannabinoid beverage
licensee whose license allows the sale of hemp-derived
cannabinoid beverages for consumption off-premises or on-
premises may apply to the board for and receive a license
allowing sales of hemp-derived cannabinoid beverages from 9 a.m.
on Sunday until 2 a.m. on Monday. The license allowing Sunday
sales under this subsection shall be in addition to any license
or permit issued under this act allowing the sale of alcohol on
Sundays.
(b) Fees.--
(1) Each application under this section shall be
accompanied by a $100 filing fee.
(2) An annual renewal application of a license under
this section shall be accompanied by a $100 renewal fee.
(c) Action by board.--Upon receiving a proper application
and fee under this section, the board shall issue or renew a
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license unless the applicant is, or has in the preceding year,
been out of compliance with the provisions of this article.
(d) Appeal.--Section 424-A shall govern the appeal of an
adverse action taken by the board under this section.
Section 406-A. Application for hemp-derived cannabinoid
beverage retail license.
(a) Application.--
(1) An applicant for a hemp-derived cannabinoid beverage
retail license or the transfer of an existing license to
another premises not licensed or to another person shall file
a written application with the board in the form and
containing information that the board shall prescribe, which
shall be accompanied by a filing fee and an annual license
fee as prescribed in section 414-A.
(2) The application must:
(i) Contain a description of the part of the
establishment for which the applicant desires a license.
(ii) Specify other material information,
descriptions or plans of that part of the establishment
where it is proposed to keep and sell hemp-derived
cannabinoid beverages as may be required by the
regulations of the board.
(3) The descriptions, information and plans in paragraph
(2) must:
(i) Show the establishment, or the proposed location
for the construction of an establishment, at the time the
application is made.
(ii) Show alterations proposed to be made to the
establishment or the new building proposed to be
constructed after the approval by the board of the
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application for a license or transfer of an existing
license to another premises not licensed or to another
person.
(b) Physical alterations, improvements or changes to
establishments.--
(1) The board may not require physical alterations,
improvements or changes to be made to an establishment or the
construction of a new building for any purpose until approval
of the application for license or transfer of an existing
license to another premises not licensed or to another
person.
(2) (i) After approval of the application, the licensee
shall make the physical alterations, improvements and
changes to the licensed premises or shall construct the
new building in the manner specified by the board at the
time of approval.
(ii) The licensee may not transact any business
under the license until the board:
(A) has approved the completed physical
alterations, improvements and changes to the licensed
premises or the completed construction of the new
building as conforming to the specifications required
by the board at the time of issuance or transfer of
the license; and
(B) is satisfied that the establishment is
eligible for a hemp-derived cannabinoid beverage
license under section 405-A.
(3) The board may require that all alterations or
construction or conformity to definition be completed within
six months from the time of issuance or transfer of the
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license. The time between the approval of the initial
application and issuance of operating authority to the
licensee shall be considered as time in safekeeping.
(4) Failure to comply with the requirements of this
section shall be considered cause for revocation of the
license.
(5) A license shall not be transferable between the time
of issuance or transfer of the license and the approval of
the completed alterations or construction by the board and
full compliance by the licensee with the requirements of this
article, unless the transfer application is accompanied by a
surcharge, which shall be:
(i) $15,000 for a license located in a county of the
first class, county of the second class or county of the
third class.
(ii) $5,000 for a license located in a county not
enumerated in subparagraph (i).
(c) Conditions for applicants.--
(1) If the applicant is an individual, the applicant
must show that the individual is a citizen of the United
States and a resident of this Commonwealth.
(2) If the applicant is an association, the applicant
must state the names and addresses of the persons
constituting the association.
(3) If the applicant is a corporation, the applicant
must:
(i) State the names and addresses of the principal
officers of the corporation.
(ii) Show that:
(A) the corporation was created under the laws
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of this Commonwealth or holds a certificate of
authority to transact business in this Commonwealth;
(B) all officers, directors and stockholders of
the corporation are citizens of the United States;
and
(C) the manager of the hotel, restaurant or club
is a citizen of the United States.
(4) A club applicant shall file as a part of the
application a list of the names and addresses of the members,
directors, officers, agents and employees of the club,
together with the dates of their admission, election or
employment and other information with respect to the club
applicant's affairs as the board shall require.
(5) An application must be signed and verified by oath
or affirmation by any of the following persons, accompanied
by written evidence of the person's authority to do so:
(i) If the applicant is an individual, by the owner.
(ii) If the applicant is an association, by a member
or partner of the association.
(iii) If the applicant is a corporation, by an
executive officer of the corporation or a person
specifically authorized by the corporation to sign the
application.
(6) The board shall refuse to issue a license to a club
when it appears that the operation of the licensed business
would inure to the benefit of individual members, officers,
agents or employees of the club, rather than to the benefit
of the entire membership of the club.
(7) If a false statement is intentionally made in any
part of the application, the affiant shall be deemed guilty
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of a misdemeanor and subject to the penalties outlined in
this article.
(d) Notice of application.--
(1) An applicant for a new license or the transfer of an
existing license shall post a notice of the application:
(i) for a period of at least 30 days beginning with
the day the application is filed with the board; and
(ii) in a conspicuous place on the outside of the
premises or at the proposed new location for which the
license is applied.
(2) The notice under paragraph (1) must be in the form
and size and contain provisions that the board may require by
regulation.
(3) Proof of the posting of the notice under paragraph
(1) shall be filed with the board.
(4) The posting requirement imposed by this subsection
shall not apply to license applications submitted for public
venues.
(e) Notification to municipality.--Upon receipt of an
application for a new license or transfer of an existing license
to a new location, the board shall immediately notify in writing
the municipality in which the premises proposed to be licensed
are located.
Section 407-A. License hearings and license period.
(a) Hearings.--
(1) The board shall hold a hearing on an application for
a new license or transfer of an existing license to a new
location as the board deems necessary, at the time fixed for
the purpose of hearing testimony.
(2) The board shall hold a hearing on an application for
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a new hemp-derived cannabinoid beverage retail license or the
transfer of a license to a new location, upon the request of
a person with standing to testify under subsection (b) if the
request is filed with the board no later than 15 days after
posting of the notice of application under section 406-A(d).
(3) The board may provide for the holding of hearings by
hearing examiners learned in the law, to be appointed by the
Governor, who shall not be subject to 71 Pa.C.S. Pt. III
(relating to civil service reform). The hearing examiners
shall make a report to the board in each case with
recommendations.
(4) The board may fix the license period for each
separate license so that the expiration dates are staggered.
(b) Right to testify.--A resident residing within a radius
of 500 feet of the premises applying for a new hemp-derived
cannabinoid beverage license or the transfer of a license to a
new location shall have standing to testify at a hearing held
under subsection (a). The board and hearing examiner shall give
appropriate evidentiary weight to testimony of the residents
given at the hearing.
(c) Construction.--This section shall not be construed to
grant standing to residents residing within 500 feet of a public
venue or performing arts facility.
Section 408-A. Hemp-derived cannabinoid beverage distributor's
license.
(a) Issuance of license and operations generally.--The board
shall issue to a reputable person who applies and pays the
license fee prescribed in this article a hemp-derived
cannabinoid beverage distributor's license for the place which
the person desires to maintain for the sale of hemp-derived
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cannabinoid beverages, not for consumption on the premises where
sold, and in quantities of not less than a case or final
container containing not less than 128 ounces which may be sold
separately as prepared for the market by the manufacturer at the
place of manufacture. A hemp-derived cannabinoid beverage
distributor's license holder may sell hemp-derived cannabinoid
beverages in any amount to a person not licensed by the board
for off-premises consumption. The sales shall not be required to
be in the package configuration designated by the manufacturer.
(b) Refusal of license.--The board may refuse to issue a
hemp-derived cannabinoid beverage distributor's license to a
person, corporation, partnership or association if the person,
or officer or director of the corporation, or member or partner
of the partnership or association has been convicted or found
guilty of a felony within a period of five years immediately
preceding the date of application for the license.
(c) Licensing restrictions.--
(1) The board may refuse to approve a new hemp-derived
cannabinoid beverage distributor's license or the transfer of
a license to a new location if:
(i) the location proposed to be licensed is within
300 feet of a church, hospital, charitable institution,
school or public playground; or
(ii) the new hemp-derived cannabinoid beverage
distributor's license or the transfer of a license to a
new location is applied for a place within 200 feet of
any other premises which is licensed by the board.
(2) The board shall refuse an application for a new
hemp-derived cannabinoid beverage distributor's license or
the transfer of a license to a new location if, in the
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board's opinion, the new hemp-derived cannabinoid beverage
distributor's license or the transfer of a license to a new
location would be detrimental to the welfare, health, peace
and morals of the inhabitants of the neighborhood within a
radius of 500 feet of the location proposed to be licensed.
(3) The board may enter into an agreement with the
applicant concerning additional restrictions on the license
in question, subject to the following:
(i) If the board and the applicant enter into an
agreement, the agreement shall be binding on the
applicant.
(ii) Failure by the applicant to adhere to the
agreement will be sufficient cause to form the basis for
a citation under section 423-A and nonrenewal of the
license.
(iii) If the board enters into an agreement with an
applicant concerning additional restrictions, the
restrictions shall be binding on subsequent holders of
the hemp-derived cannabinoid beverage distributor's
license until the license is transferred to a new
location or until the board enters into a subsequent
agreement removing the restrictions.
(d) Notice required.--The board shall require notice to be
posted on the property or premises upon which the applicant
plans to engage in the sale of hemp-derived cannabinoid
beverages. The notice shall be similar to the notice required of
hemp-derived cannabinoid retail licensees.
(e) Authority of license.--A hemp-derived cannabinoid
beverage distributor's license authorizes the holder to sell or
deliver hemp-derived cannabinoid beverages in quantities
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specified in this article anywhere within this Commonwealth that
have been purchased only from persons licensed under this
article as a hemp-derived cannabinoid beverage manufacturer or
hemp-derived cannabinoid beverage importing distributor.
(f) Contracts.--
(1) Distributors, importing distributors and
manufacturers of hemp-derived cannabinoid beverages may enter
into contracts with one another in which both parties may:
(i) form a mutual agreement regarding distribution
of hemp-derived cannabinoid beverages in certain
geographic areas; and
(ii) place limits on distribution in certain
geographic areas.
(2) No other provisions of this act which may regulate
the distribution of beverages or other products produced by
licensees under this article based on geographic areas,
distribution agreements, franchise agreements or any other
analogous system shall apply to hemp-derived cannabinoid
beverage distributor's licenses.
Section 409-A. Hemp-derived cannabinoid beverage importing
distributor's license.
(a) Duty of board.--The board shall issue a hemp-derived
cannabinoid beverage importing distributor's license to a
reputable person who applies for, and pays the license fee
prescribed in this article, for the place that the person
desires to maintain for the sale of hemp-derived cannabinoid
beverages, not for consumption on the premises where sold, and
in quantities of not less than a case or final container
containing at least 128 ounces which may be sold separately as
prepared for the market by the manufacturer at the place of
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manufacture.
(b) Decision making.--In the board's decision making on the
issuing of a license under this article, section 408-A(b), (c)
and (d) apply.
(c) Scope of license.--A hemp-derived cannabinoid beverage
importing distributor's license authorizes the holder to sell or
deliver hemp-derived cannabinoid beverages in quantities
specified in this article anywhere within this Commonwealth that
have been purchased from manufacturers or importing distributors
licensed under this article, or from manufacturers and persons
outside this Commonwealth engaged in the sale of hemp-derived
cannabinoid beverages, if the sales are legal under the laws of
the state from which the beverages originate.
(d) Authority of license holder.--The holder of a hemp-
derived cannabinoid beverage importing distributor's license
shall be authorized to store and repackage hemp-derived
cannabinoid beverages owned by a manufacturer at a segregated
portion of a warehouse or other storage facility authorized by
this article. The license holder shall be authorized to deliver,
on behalf of the manufacturer, hemp-derived cannabinoid
beverages to other importing distributors. The license holder
may collect a fee from the manufacturer for related storage,
repackaging or delivery services.
Section 410-A. Application for hemp-derived cannabinoid
beverage distributor's and importing distributor's
license.
An application for a hemp-derived cannabinoid beverage
distributor's license and a hemp-derived cannabinoid beverage
importing distributor's license shall mirror the requirements in
section 436(a), (b), (c), (d), (e), (f), (g), (h), (i) and (j).
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Section 411-A. Hemp-derived cannabinoid beverage manufacturer's
license.
(a) Authority of board.--
(1) The board shall issue a hemp-derived cannabinoid
beverage manufacturer's license to a resident of this
Commonwealth of good repute who applies for and pays the
license fee prescribed in this article to produce and
manufacture hemp-derived cannabinoid beverages and to
transport, sell and deliver hemp-derived cannabinoid
beverages from the place of manufacture only in final
containers, in quantities of not less than a case or in final
containers of at least 128 ounces.
(2) The application for a license shall be in the form
and contain information as required by the board.
(3) Licenses shall be granted for a license period to be
determined by the board.
(b) Records.--A hemp-derived cannabinoid beverage
manufacturer's license holder shall keep at the principal place
of business within this Commonwealth daily permanent records
that include:
(1) The quantities of raw materials and hemp-derived THC
received and used in the manufacture of hemp-derived
cannabinoid beverages and the quantities of hemp-derived
cannabinoid beverages manufactured and stored.
(2) The sales of hemp-derived cannabinoid beverages.
(3) The quantities of hemp-derived cannabinoid beverages
stored for hire or transported for hire by or for the
licensee.
(4) The names and addresses of the purchasers or other
recipients.
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(c) Inspection of premises.--
(1) A hemp-derived cannabinoid beverage manufacturer
license holder's premises shall be subject to inspection by
members of the board or persons authorized and designated by
the board at any time as deemed necessary for the detection
of violations of this article or rules and regulations of the
board, or for the purpose of ascertaining the correctness of
the records required to be kept by a licensee.
(2) The books and records of a hemp-derived cannabinoid
beverage manufacturer license holder shall at all times be
open to inspection by members of the board or persons
authorized and designated by the board. Members of the board
and persons authorized and designated by the board shall have
the right, without hindrance, to enter any place subject to
inspection under this article or any place where records are
kept for the purpose of making inspections and making
transcripts of inspections.
(d) Out-of-State manufacturers.--A manufacturer of hemp-
derived cannabinoid beverages located outside this Commonwealth
may rent, lease or otherwise acquire space from an importing
distributor or bailee for hire authorized by this article at no
more than two locations per manufacturer for use of a segregated
portion of a warehouse or other storage facility owned or
operated by the importing distributor at which the out-of-State
manufacturer may store, repackage and sell hemp-derived
cannabinoid beverages to an importing distributor or a purchaser
outside this Commonwealth for delivery outside this
Commonwealth, if the sale is legal in the state to which the
beverages shall be delivered. The manufacturer may compensate
the importing distributor or bailee for hire for related
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storage, repackaging or delivery services.
(e) Storage licenses.--
(1) The board shall issue to a hemp-derived cannabinoid
beverage manufacturer license holder no more than five
storage licenses per manufacturer to cover storage facilities
separate from the location of the manufacturing facility.
(2) A manufacturer may use the storage facilities to
receive, store, repackage, sell and distribute hemp-derived
cannabinoid beverages in the same manner as at the
manufacturer's place of manufacture or the manufacturer may
rent, lease or otherwise acquire space from an importing
distributor or bailee for hire authorized by this article in
the same manner as an out-of-State manufacturer as specified
in subsection (d).
(3) A hemp-derived cannabinoid beverage manufacturer
license holder shall file a separate written application to
acquire storage licenses.
(4) The board shall determine what information shall be
provided on a storage license application.
(5) Nothing in this article authorizing off-site storage
facilities for a hemp-derived cannabinoid beverage
manufacturer license holder is intended to make any change in
the manner hemp-derived cannabinoid beverages are distributed
through the three-tier system.
(f) Sales to include food.--
(1) A hemp-derived cannabinoid beverage manufacturer
license holder under this section may sell, at the licensed
place of manufacture, hemp-derived cannabinoid beverages for
consumption on premises to nonlicensees if food is also
served and there are at least 10 seats for use by patrons.
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(2) Food must consist of at least potato chips, pretzels
and similar foods.
(3) Food may be prepared by the licensee or by a third
party.
(g) Sales of beverages not produced by license holder.--
(1) A hemp-derived cannabinoid beverage manufacturer
license holder under this section may sell hemp-derived
cannabinoid beverages not produced by the license holder if
the sales do not constitute more than 50% of the on-premises
sales of the manufacturer's hemp-derived cannabinoid
beverages for the preceding calendar year.
(2) If a hemp-derived cannabinoid beverage manufacturer
license holder did not operate for an entire calendar year
during the preceding year, the license holder's combined
sales of hemp-derived cannabinoid beverages produced by
another manufacturer may not, on a yearly basis, exceed 50%
of the on-premises sales of the manufacturer's hemp-derived
cannabinoid beverages for that year.
(h) Restaurant.--A hemp-derived cannabinoid beverage
manufacturer license holder under this section may apply for and
hold a hemp-derived cannabinoid beverage retail license for a
restaurant to be opened at or attached to the premises for which
they hold a manufacturer's license. The restaurant for which the
hemp-derived cannabinoid beverage retail license is held may
exceed the 50% sales threshold established in subsection (f).
Section 412-A. Application for hemp-derived cannabinoid
beverage manufacturer's license.
(a) Application.--
(1) An applicant for a hemp-derived cannabinoid beverage
manufacturer's license shall file with the board a written
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application in the form as the board shall require.
(2) The application shall be accompanied by a filing fee
of $100.
(3) The application must include:
(i) The legal names of the applicant and the owner
of the place where business under the license will be
carried on, along with the residence addresses by street
and number of the following:
(A) If the applicant is an individual, the
individual.
(B) If the applicant is a partnership, each
partner.
(C) If the applicant is a corporation, each
officer of the corporation.
(ii) All of the following:
(A) The exact location of the place of business
and of every place to be occupied or used in
connection with the business.
(B) The productive capacity of each plant where
a hemp-derived cannabinoid beverage is to be
manufactured, produced, blended or developed.
(C) The capacity of each warehouse or other
place where the beverages are to be held or stored
for hire or the equipment to be used where a
transportation business is to be carried on under the
license.
(iii) Proof that the applicant is a citizen of the
United States.
(iv) Other relevant information that the board shall
require by rule or regulation.
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(b) Verification by affidavit.--An application must be
verified by affidavit of the applicant made before an officer
legally qualified to administer oaths. If a false statement is
willfully made in any part of the application, the applicant
shall be guilty of a misdemeanor and subject to the penalties
outlined in this article.
Section 413-A. Expedited applications for holders of equivalent
classes of alcohol licenses.
(a) Duty of board.--The board shall promulgate regulations
that establish a process by which applications for hemp-derived
cannabinoid beverage licenses that are submitted by an applicant
who holds an alcohol license of an equivalent class may be
expedited for review and final determination.
(b) Regulations.--The regulations as promulgated by the
board under subsection (a) shall apply to applications for
alcohol licenses which are submitted by an applicant who holds a
hemp-derived cannabinoid beverage license of an equivalent
class.
(c) Applicability.--Subsections (a) and (b) shall apply to
hemp-derived cannabinoid beverage retail licenses and
restaurant, hotel and club liquor licenses if the licenses have
been first acquired through a transfer, auction or, in the case
of hemp-derived cannabinoid beverage retail licenses, an initial
offering under section 447-A.
(d) Construction.--Nothing in this section shall be
construed to allow for lower approval standards in the board's
review and final determination of expedited applications, or to
prioritize holders of alcohol or hemp-derived cannabinoid
beverage licenses over others in the auction process.
Section 414-A. License fees.
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(a) Fees.--The board shall charge fees for the following
purposes and in the following amounts:
(1) Hemp-derived cannabinoid beverage retail
licenses:
(i) Application filing fee $700
(ii) Renewal filing fee 30
(iii) License fee:
(A) Municipalities with a population of
less than 1,500 250
(B) Municipalities, except townships,
with a population of 1,500 - 9,999 300
(C) Municipalities, townships with a
population of 1,500 - 11,999 300
(D) Municipalities, except townships,
with a population of 10,000 - 49,999 400
(E) Municipalities, townships with a
population of 12,000 - 49,999 400
(F) Municipalities with a population of
50,000 - 99,999 500
(G) Municipalities with a population of
100,000 - 149,999 600
(H) Municipalities with a population of
150,000 or more 700
(iv) Transfer fee:
(A) Person to person 650
(B) Place to place 550
(C) Person to person and place to place
transfer 700
(2) Hemp-derived cannabinoid beverage importing
distributor:
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(i) Application filing fee 700
(ii) Renewal filing fee 30
(iii) License fee 1,350
(iv) Transfer fee:
(A) Person to person transfer 650
(B) Place to place 550
(C) Person to person and place to place
transfer 700
(3) Hemp-derived cannabinoid beverage
distributor:
(i) Application filing fee 700
(ii) Renewal filing fee 30
(iii) License fee 600
(iv) Transfer fee:
(A) Person to person 650
(B) Place to place 550
(C) Person to person and place to place
transfer 700
(4) THC extraction license:
(i) Application filing fee 2,000
(ii) Renewal filing fee 50
(iii) License fee 1,800
(iv) Transfer fee 800
(5) Hemp-derived cannabinoid beverage
manufacturer:
(i) Application filing fee 1,000
(ii) Renewal filing fee 30
(iii) License fee 1,500
(iv) Transfer fee 800
(6) Hemp-derived cannabinoid beverage catering
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license:
(i) Application filing fee 700
(ii) Renewal filing fee 30
(iii) License fee 250
(iv) Transfer fee:
(A) Person to person 650
(B) Place to place 550
(C) Person to person and place to place
transfer 700
(7) Hemp-derived cannabinoid beverage catering
permit:
(i) Application filing fee 300
(ii) Renewal filing fee before expiration of
previous permit 30
(iii) License fee:
(A) Less than 11 days 75
(B) 11 - 30 days 150
(b) Other fees.--A fee for a permit or license relating to
hemp-derived cannabinoid beverages that is not provided for in
this section shall have the same fees assigned to it as assigned
to its equivalent alcohol license or permit. The board shall
determine equivalency.
(c) Use of fees.--License fees authorized under this section
shall be collected by the board for the use of the
municipalities in which the fees were collected.
(d) Returned checks.--
(1) If a check issued in payment of a filing or license
fee under this article is returned to the board as
dishonored, the board shall charge a fee of $5 per $100, or a
fractional part thereof, plus all protest fees, to the maker
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of the check submitted to the board.
(2) Failure to make full payment or pay the face amount
of the check in full and all charges as required in this
section within 10 days after demand has been made by the
board upon the maker of the check, or upon notification to
the board by the Department of Revenue or the Department of
Labor and Industry of an objection, the license of the person
shall immediately become invalid and shall remain invalid
until payment and all charges are received by the board.
(e) Transfer.--If a license is transferred, no license or
other fees shall be required from the persons to whom the
transfer is made for the portion of the license period for which
the license fee has been paid by the transferor, except for
transfer fees provided in this section.
Section 415-A. License renewals.
(a) Time for filing.--An application for renewal of a
license issued under this article shall be filed at least 60
days before the the expiration date of the license, along with
any tax clearance that may be required by the board. The board
may accept a renewal application filed less than 60 days before
the expiration date of the license with the required fees, upon
reasonable cause shown and the payment of an additional filing
fee of $100 for late filing.
(b) Final determination.--If a license renewal application
is filed less than 60 days before the expiration date, or
subsequent to the expiration date, a license shall not be issued
upon the filing of the renewal application until the matter is
finally determined by the board and, if an appeal is taken from
the board's action, the courts shall not order the issuance of
the renewal license until final determination of the matter by
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the courts.
(c) Agreements and additional restrictions.--
(1) The board may enter into an agreement with the
applicant concerning additional restrictions on the license
or permit in question.
(2) If the board and the applicant enter into an
agreement, the agreement shall be binding on the applicant.
(3) Failure by the applicant to adhere to the agreement
will be sufficient cause to form the basis for a citation
under section 423-A and for nonrenewal of the license under
this section.
(d) Catering permit renewal.--An application for renewal of
a hemp-derived cannabinoid beverage catering permit shall be
filed at least:
(1) one day prior to expiration if the permit is valid
for less than 11 days; or
(2) five days prior to expiration if the permit is valid
for less than 31 days.
(e) License renewal.--
(1) A license renewal application will not be considered
filed unless accompanied by the requisite filing and license
fees and any additional filing fee required by this section.
(2) The license of a licensee shall be renewed unless:
(i) the board gave 10 days' previous notice to the
applicant of objections to the renewal of the license
based upon violation by the licensee or the licensee's
servants, agents or employees of any of the laws of this
Commonwealth or regulations of the board relating to the
manufacture, transportation, use, storage, importation,
possession or sale of hemp-derived cannabinoid beverages;
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(ii) the conduct of a licensed establishment is
deemed in violation of this article;
(iii) the applicant has by the applicant's own act
become a person of ill repute; or
(iv) the premises do not meet the requirements of
this article or the regulations of the board.
(3) A noise violation shall not be the sole basis for
objection by the board to the renewal of a license unless the
licensee has received three prior adjudicated noise citations
within a 24-month period.
(f) Fees.--A renewal of a hemp-derived cannabinoid beverage
catering permit will not be considered filed unless accompanied
by the requisite filing and license fees and any additional
filing fee required by this section. The board may decline to
renew a catering permit without cause.
Section 416-A. License to be displayed.
(a) License displayed.--
(1) A license issued under this article shall be
constantly and conspicuously displayed under transparent
substance on the licensed premises.
(2) A license shall not authorize sales until the
licensee complies with this section.
(b) Permit displayed.--A permit issued under this article
shall be constantly and conspicuously displayed adjacent to the
area of the catered premise that is serving hemp-derived
cannabinoid beverages. A permit may not authorize sales or
furnishment of hemp-derived cannabinoid beverages until the
permit holder complies with this section.
Section 417-A. Premises and records subject to inspections.
The premises of a license or permit holder where THC is
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extracted from hemp or hemp-derived cannabinoid beverage covered
by the license is manufactured, produced, developed, stored for
hire or in connection with a licensee's business shall be
subject to inspection by members of the board or by persons duly
authorized and designated by the board at any time as they may
deem necessary for:
(1) the detection of violations of this article or of
the rules and regulations of the board promulgated under the
authority of this article; or
(2) the purpose of ascertaining the correctness of the
records required by this article to be kept by licensees and
the books and records of licensees, and the books and records
of their customers as they relate to purchases from the
licensees, shall at all times be open to inspection by the
members of the board or by persons duly authorized and
designated by the board for the purpose of making inspections
as authorized by this section. Members of the board and the
persons duly authorized and designated by the board shall
have the right, without fee or hindrance, to enter any place
which is subject to inspection under this section, or any
place where records subject to inspection under this article
are kept, for the purpose of making inspections.
Section 418-A. Number and kinds of licensees allowed same
licensee.
(a) Number of licenses allowed.--
(1) A person shall not possess or be issued more than
one hemp-derived cannabinoid beverage distributor or hemp-
derived cannabinoid beverage importing distributor's license.
(2) A person may possess both a hemp-derived cannabinoid
beverage distributor's license and a distributor's license.
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(3) A person may possess both a hemp-derived cannabinoid
beverage importing distributor's license and an importing
distributor's license.
(4) A person may possess both a hemp-derived cannabinoid
beverage manufacturer's license and a THC extraction license.
(b) 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:
"Distributor." As defined in section 102.
"Importing distributor." As defined in section 102.
Section 419-A. Records to be kept.
(a) Complete and truthful records.--A person holding a hemp-
derived cannabinoid beverage retail license, hemp-derived
cannabinoid beverage distributor license or hemp-derived
cannabinoid beverage importing distributor license issued under
this article shall keep complete and truthful daily records
covering the operation of the licensed business, particularly
showing the date of all purchases of hemp-derived cannabinoid
beverages, the actual price paid and the name of the vendor.
(b) Time frame.--The records under this section must cover
at least the most recent two-year period.
(c) Maintenance location.--
(1) The records under this section from the most recent
six-month period must be maintained on the licensed premises.
(2) The records under this section for the remainder of
the two-year period may be kept off the licensed premises if
the records are returned to the licensed premises within 24
hours of a request by the board or enforcement bureau.
(d) Removal of records.--A licensee may remove the records
for the most recent six-month period from the licensed premises
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only for a lawful business purpose provided that they are
returned to the premises when that business is completed.
Section 420-A. Hemp-derived cannabinoid beverage licensees
restrictions on sales and storage.
(a) Applicable law.--
(1) Except as otherwise provided by this article, the
restrictions under section 406 that apply to the places, days
and times for sales by liquor licensees shall apply to hemp-
derived cannabinoid beverages retail licensees.
(2) The board may prescribe other conditions relating to
the places, days and times for the sale of hemp-derived
cannabinoid beverages, consistent with this article. In
prescribing other conditions, the board shall transmit notice
of the changes to the Legislative Reference Bureau for
publication in the next available issue of the Pennsylvania
Bulletin. The changes shall take effect upon the publication
in the Pennsylvania Bulletin.
(3) This section shall not be construed to expand the
type of eligible establishment that may apply for and hold a
hemp-derived cannabinoid beverage license as provided for in
section 405-A.
(4) A license or permit authorizing sales on Sunday in
the context of hemp-derived cannabinoid beverages shall be
governed by section 405.1-A.
(b) Restrictions.--Restrictions for distributors and
importing distributors are as follows:
(1) A distributor or importing distributor shall not
purchase, receive or resell hemp-derived cannabinoid
beverages except:
(i) in the original containers as prepared for the
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market by the manufacturer at the place of manufacture or
in the original cases as received by the manufacturer; or
(ii) in the case of identical containers repackaged
in the manner described in this section.
(2) Hemp-derived cannabinoid beverages sold or delivered
shall not be consumed upon the premises of the distributor or
importing distributor.
(3) A distributor or importing distributor shall not
maintain or operate any place where sales are made other than
that for which the license is granted.
(4) To salvage one or more salable cases from one or
more damaged cases, cartons or packages of hemp-derived
cannabinoid beverages, a distributor or importing distributor
may repackage consequent to inadvertent damage and sell a
case, carton or package of identical units of hemp-derived
cannabinoid beverages. Repackaging is permissible only to the
extent made necessary by inadvertent damage. Repackaging not
consequent to damage is prohibited. As used in this
paragraph, the term "identical units" means undamaged bottles
or cans of identical brand, package and volume.
(5) All hemp-derived cannabinoid beverages purchased by
an importing distributor from a Pennsylvania manufacturer of
hemp-derived cannabinoid beverages or from a person located
outside this Commonwealth for resale shall be invoiced to the
importing distributor, come physically into the possession of
the importing distributor and be unloaded into and
distributed from the licensed premises of the importing
distributor. The board may act to further define and control
the storage and distribution of hemp-derived cannabinoid
beverages in conformity with this section and this article.
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(6) A distributor or importing distributor may not be
required to collect the name, address or any other
identifying information of a private individual for the
purpose of keeping a record of the quantity of cases or
volume of hemp-derived cannabinoid beverages purchased.
Section 421-A. Unlawful acts relative to hemp-derived
cannabinoid beverages.
The following acts are unlawful:
(1) Sales of cannabinoid beverages. A person or employee
or agent of a person may not keep for sale, or directly or
indirectly, or upon any pretense or upon any device, sell or
offer to sell a hemp-derived cannabinoid beverage within this
Commonwealth, except in accordance with this article and the
regulations of the board. A person found to be in violation
is subject to section 422-A(a) in addition to any other
provision of law.
(2) Importation or delivery into the Commonwealth. A
person may not transport into this Commonwealth hemp-derived
cannabinoid beverages from another state, territory, foreign
country or insular possession of the United States for any
reason. This paragraph shall not apply to a person with a
hemp-derived cannabinoid beverage importer's license issued
by the board.
(3) Purchase of cannabinoid beverages. A person may not
purchase or attempt to purchase, barter, trade or otherwise
exchange something of value, perceived or tangible, for hemp-
derived cannabinoid beverages from any person or source other
than those licensed under this article or regulations of the
board.
(4) Sales by hemp-derived cannabinoid beverage retail
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licensees. A hemp-derived cannabinoid beverage retail
licensee and the licensee's servants, agents or employees may
not sell any hemp-derived cannabinoid beverages for
consumption on the licensed premises except in a room or
rooms or place on the licensed premises at all times
accessible to the use and accommodation of the general
public. This section shall not be interpreted to prohibit a
hemp-derived cannabinoid beverage retail licensee from
providing private affairs, the primary function of which is
for catering only to weddings or special occasions arranged
24 hours in advance, nor to prohibit a restaurant that holds
a hemp-derived cannabinoid beverage retail license that is
located in a hotel from selling hemp-derived cannabinoid
beverages in any room of the hotel occupied by a bona fide
guest.
(5) Sales by manufacturers. A manufacturer of hemp-
derived cannabinoid beverages may not sell or offer for sale
hemp-derived cannabinoid beverages to any person for any
reason except in accordance with this article and regulations
of the board.
(6) Manufacturing without license. A person may not
manufacture hemp-derived cannabinoid beverages unless the
person holds a valid hemp-derived cannabinoid beverage
manufacturer's license issued by the board.
(7) Transportation of cannabinoid beverages. A person
may not transport hemp-derived cannabinoid beverages except
in the original containers. A person may not transport hemp-
derived cannabinoid beverages for another person who is
engaged in selling hemp-derived cannabinoid beverages unless
the person holds a license to transport for hire alcohol,
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liquor and malt and brewed beverages or a permit issued by
the board. This paragraph shall not be construed to prohibit
transportation of hemp-derived cannabinoid beverages through
this Commonwealth and not for delivery in this Commonwealth
if the transporting is done in accordance with the rules and
regulations of the board.
(8) Transportation by licensee. A licensee shall deliver
or transport hemp-derived cannabinoid beverages in a vehicle
bearing the name and address and license number of the
licensee painted or affixed on each side of the vehicle in
letters no smaller than two inches in height.
(9) Selling to persons doing illegal business. A
licensee or the licensee's servants, agents or employees,
shall not knowingly sell hemp-derived cannabinoid beverages
to a person engaged in the business of illegally selling
hemp-derived cannabinoid beverages.
(10) Coercing distributors and importing distributors. A
manufacturer or an officer, agent or representative of a
manufacturer shall not coerce or persuade or attempt to
coerce or persuade a licensee to:
(i) sell or distribute hemp-derived cannabinoid
beverages wholesale or retail;
(ii) establish selling prices for the products;
(iii) enter into any contracts or agreements,
whether written or oral; or
(iv) take any action which will violate this article
or any of the rules or regulations promulgated by the
board under this article.
(11) Furnishing cannabinoid beverages to certain
persons. A licensee or an employee, servant or agent of the
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licensee shall not sell, furnish or give hemp-derived
cannabinoid beverages or to permit hemp-derived cannabinoid
beverages to be sold, furnished or given to a visibly
intoxicated person or to a minor.
(12) Failure to have records on premises. A licensee
shall properly maintain records as required under this
article or by regulation of the board.
(13) Employment of minors. The following shall apply:
(i) A hemp-derived cannabinoid beverage retail
licensee shall not employ or permit a minor under 18
years of age to serve any hemp-derived cannabinoid
beverages or employ or permit a minor under 16 years of
age to render any service in the licensed premises, nor
shall any entertainer under the age of 18 be employed or
permitted to perform in a licensed premises in violation
of the labor laws of this Commonwealth.
(ii) In accordance with board regulations, minors
between 16 and 18 years of age may be employed to serve
food, clear tables and perform other similar duties, not
including the dispensing or serving of hemp-derived
cannabinoid beverages.
(iii) A hemp-derived cannabinoid beverage retail
licensee may allow students receiving instruction in a
performing art to perform an exhibition if the students
are not compensated and are under proper supervision.
Written notice of the performance must be provided to the
enforcement bureau prior to the performance.
(14) Refusing the right of inspection. A licensee under
this article, or the licensee's servants, agents or
employees, shall not refuse the board or the enforcement
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bureau or any of their authorized employees the right to
inspect the entire licensed premises at any time during which
the premises are open for the transaction of business, or
when patrons, guests or members are in that portion of the
licensed premises where hemp-derived cannabinoid beverages
are sold.
(15) Consumption of cannabinoid beverages while tending
bar. A licensee or the licensee's servants, agents or
employees shall not consume hemp-derived cannabinoid
beverages while tending bar or otherwise serving hemp-derived
cannabinoid beverages. No action shall be taken against a
licensee under this paragraph unless the licensee is the
individual consuming hemp-derived cannabinoid beverages.
(16) Permitting undesirable persons or minors to
frequent premises. The following shall apply:
(i) A hemp-derived cannabinoid beverage retail
licensee or the licensee's servants, agents or employees
shall not permit persons of ill repute or prostitutes to
frequent the licensed premises or any premises operated
in connection with this article.
(ii) Minors may only frequent a licensed premises
if:
(A) they are accompanied by a parent;
(B) they are accompanied by a legal guardian;
(C) they are under proper supervision;
(D) they are attending a social gathering; or
(E) the hemp-derived cannabinoid beverage retail
licensee has gross sales of food and nonalcoholic
beverages equal to 50% or more of the licensee's
combined gross sale of both food and alcoholic
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beverages.
(iii) If a minor is frequenting a hemp-derived
cannabinoid beverage retail licensee under subparagraph
(ii)(E), the minor may not sit at the bar section of the
premises, nor may any hemp-derived cannabinoid beverages
be served at the table or booth at which the minor is
seated unless the minor is with a parent or legal
guardian or under proper supervision.
(iv) If a hemp-derived cannabinoid beverage retail
licensee is hosting a social gathering under subparagraph
(ii)(D), written notice at least 48 hours in advance of
the gathering shall be given to the Bureau of
Enforcement.
(v) If a minor is frequenting licensed premises with
proper supervision under subparagraph (ii)(C), each
supervisor can supervise up to 20 minors, except for
premises located in cities of the first class, where each
supervisor can supervise up to five minors.
(vi) If a minor is on the premises as part of a
school-endorsed function, each supervisor can supervise
50 minors. Nothing in this paragraph shall be construed
to make it unlawful for minors to frequent public venues
and performing arts facilities.
(17) Furnishing or delivering hemp-derived cannabinoid
beverages at unlawful hours. A licensee or the licensee's
servants, agents or employees shall not give, furnish, trade,
barter, serve or deliver hemp-derived cannabinoid beverages
to any person during hours or on days when the licensee is
prohibited by this article from serving hemp-derived
cannabinoid beverages.
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(18) Use of hemp-derived cannabinoid beverages while
underage. An individual under 21 years of age shall not
attempt to purchase, purchase, consume, possess or knowingly
and intentionally transport hemp-derived cannabinoid
beverages. A person who violates this paragraph shall be
subject to the penalty prescribed in section 422-A(c).
Section 422-A. Penalties.
(a) Misdemeanor.--A person convicted of a violation of this
article that is graded as a misdemeanor shall be sentenced as
follows:
(1) For a first offense, to pay a fine of not less than
$100 nor more than $500 and, upon failure to pay the fine, to
imprisonment for a period of not less than one month, nor
more than three months.
(2) For a second or subsequent offense, to pay a fine of
not less than $300 nor more than $500, or to imprisonment for
a period of not less than three months nor more than one
year, or both.
(b) Unlicensed sales.--A person convicted of selling or
offering to sell a hemp-derived cannabinoid beverage without
being licensed is in violation of this article and shall, in
addition to any other penalty described by law, be sentenced to
pay a fine of $10 per fluid ounce for each container of hemp-
derived cannabinoid beverage found on the premises where the
sale was made or attempted. The following apply:
(1) The amount of fine per container will be based upon
the capacity of the container when full, whether or not the
container is full at the time of the attempted sale.
(2) All hemp-derived cannabinoid beverages shall be
confiscated.
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(3) If a person fails to pay the full amount of the fine
levied under this subsection, the premises on which the hemp-
derived cannabinoid beverage was found shall be subject to a
lien in the amount of the unpaid fine if the premises are
owned by the person against whom the fine was levied or by
any other person who had knowledge of the proscribed
activity. The lien shall be superior to any other liens on
the premises other than a duly recorded mortgage.
(c) Summary offense.--A violation of section 421-A(18) is a
summary offense. A person convicted of a violation may be
sentenced to pay a fine of not more than $500 for the first
violation and not more than $1,000 for the second and each
subsequent violation. The following shall apply:
(1) When a person is charged with violating section 421-
A(18), the magisterial district judge may admit the offender
to the adjudication alternative as authorized in 42 Pa.C.S. §
1520 (relating to adjudication alternative program) or any
other preadjudication disposition if the offender has not
previously received a preadjudication disposition for
violating section 421-A(18).
(2) The use of a preadjudication disposition shall be
considered a first or subsequent offense, whichever is
applicable, for the purpose of further adjudication of
violations of section 421-A(18).
(d) Suspension and revocation.--The right to suspend and
revoke licenses granted under this article shall be in addition
to the penalty specified in this section.
Section 423-A. Revocation and suspension of hemp-derived
cannabinoid beverage licenses.
(a) Notice.--Upon learning of a violation of this article,
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any regulations of the board or any laws of this Commonwealth
relating to the payment of taxes on hemp-derived cannabinoid
beverages by a licensee or the licensee's officers, servants,
agents or employees, or upon any other sufficient cause shown,
the enforcement bureau may, within one year from the date of the
violation or cause appearing, cite the licensee to appear before
an administrative law judge, not less than 10 nor more than 60
days from the date of sending the licensee, by registered mail,
a notice addressed to the licensee at the licensed premises, to
show cause why the license should not be suspended or revoked or
a fine imposed, or both. The bureau shall send a copy of the
hearing notice to the municipality in which the premises is
located.
(b) Hearing.--
(1) A hearing on the citation shall be held in the same
manner as provided in section 407-A for hearings on
applications for license.
(2) If, as a result of the hearing, the administrative
law judge is satisfied that a violation has occurred or for
other sufficient cause, the administrative law judge shall
immediately suspend or revoke the license or impose a fine of
not less than $50 nor more than $1,000, or both.
(3) The administrative law judge shall notify the
licensee of the decision resulting from the hearing by
registered letter addressed to the licensee's licensed
premises.
(c) Violations.--If a licensee has been cited and found to
have violated section 421-A(11), (14), (16) or (17), or if the
owner or operator of the licensed premises or an authorized
agent of the owner or operator has been convicted of a violation
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of the act of April 14, 1972 (P.L.233, No.64), known as The
Controlled Substance, Drug, Device and Cosmetic Act or 18
Pa.C.S. § 5902 (relating to prostitution and related offenses)
or 6301 (relating to corruption of minors), the administrative
law judge shall immediately suspend or revoke the license or
impose a fine of not less than $1,000 nor more than $5,000, or
both.
(d) Partial compliance.--If a licensee has been cited and
found to have violated section 421-A(11) but at the time of the
sale the licensee was in compliance with the requirements
specified in section 471.1 and the licensee had not sold to
minors or visibly intoxicated persons in the previous four
years, the administrative law judge shall immediately suspend or
revoke the license or impose a fine of not less than $50 nor
more than $1,000, or both.
(e) Notification and time limit for payment.--The
administrative law judge shall notify the licensee by registered
mail, addressed to the licensed premises, of the suspension,
revocation or fine. If the fine is not paid within 20 days of
the adjudication, the administrative law judge shall suspend or
revoke the license and notify the licensee by registered mail
addressed to the licensed premises.
(f) Effect of suspensions and revocations.--Suspensions and
revocations shall not go into effect until 30 days after the
date of the adjudication during which time the licensee may take
an appeal as provided for in section 424-A.
(g) Time for ineligibility.--A hemp-derived cannabinoid
beverage licensee whose license is revoked shall be ineligible
for a hemp-derived cannabinoid beverage license or alcohol
license under this article until the expiration of three years
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from the date the license was revoked.
(h) Other license affected.--If a licensee holds both a
hemp-derived cannabinoid beverage license and an alcohol
license, and either license is revoked or suspended, the other
license shall also be revoked or suspended.
(i) No fines or penalties.--A license that is suspended or
revoked solely on the basis of a separate license's revocation
or suspension in accordance with subsection (h) shall not be
subject to fines or other monetary penalties.
(j) Time limit for license or transfer.--If a license is
revoked, a license shall not be granted for the premises or
transferred to the premises in which the license was conducted
for a period of at least one year after the date of the
revocation of the license conducted at the premises, except in
cases where the licensee or a member of the licensee's immediate
family is not the owner of the premises, in which case the board
may issue or transfer a license within the year.
(k) Prior citation history.--The administrative law judge
may consider the licensee's prior citation history when imposing
a penalty. If the violation in question is a third or subsequent
violation of an offense referred to in subsection (b) or 18
Pa.C.S. (relating to crimes and offenses) occurring within a
period of four years, the administrative law judge shall impose
a suspension or revocation. Violations related both to alcohol
licenses and hemp-derived cannabinoid beverage licenses may be
counted together.
(l) Responsible alcohol management.--If a licensee has been
cited and found to have violated section 421-A(11) regarding
sales to minors or visibly intoxicated person, the
administrative law judge shall require the licensee to comply
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with the requirements specified in section 471.1 pertaining to
responsible alcohol management.
(m) Nonpayment of fines.--If the fine is not paid within 20
days of the adjudication, the administrative law judge shall
suspend or revoke the license, and notify the licensee by
registered mail addressed to the licensed premises.
Section 424-A. Appeals for revocation or suspension of hemp-
derived cannabinoid beverage license.
(a) Appeal to board.--If the bureau or person who was fined
or whose license was suspended or revoked feels aggrieved by the
adjudication of the administrative law judge, there shall be a
right to appeal to the board. The appeal shall be based solely
on the record before the administrative law judge. The board
shall only reverse the decision of the administrative law judge
if the administrative law judge committed an error of law,
abused the administrative law judge's discretion or if the
decision is not based on substantial evidence.
(b) Appeal to court of common pleas.--If the bureau or
person who was fined or whose license was suspended or revoked
feels aggrieved by the decision of the board, there shall be a
right to appeal to the court of common pleas in the same manner
as provided for appeals from refusals to grant licenses in
section 464, except that the court of common pleas shall base
its decision on the administrative record and may not conduct a
de novo hearing as to questions of fact, administrative
discretion and other matters involved.
(c) Supersedeas.--An appeal shall act as a supersedeas
unless, upon sufficient cause shown, the reviewing authority
shall determine otherwise. If the licensee has been cited and
found to have violated section 421-A(11), (14), (16) or (17), or
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if the owner or operator of the licensed premises or an
authorized agent of the owner or operator has been convicted of
a violation of the act of April 14, 1972 (P.L.233, No.64), known
as The Controlled Substance, Drug, Device and Cosmetic Act, or
18 Pa.C.S. § 5902 (relating to prostitution and related
offenses) or 6301 (relating to corruption of minors), the
licensee's appeal shall not act as a supersedeas unless the
reviewing authority determines otherwise upon sufficient cause
shown.
(d) Consideration of authority.--In a hearing on an
application for a supersedeas under this section, the reviewing
authority may consider, in addition to other relevant evidence,
documentary evidence, including records of the bureau, showing
the prior history of citations, fines, suspensions or
revocations against the licensee. The reviewing authority may
also consider, in addition to other relevant evidence, evidence
of any recurrence of the unlawful activity occurring between the
date of the citation which is the subject of the appeal and the
date of the hearing. If the reviewing authority is the board, no
hearing shall be held on the application for a supersedeas, but
a decision shall be made based on the application, answer and
documentary evidence under this subsection.
Section 425-A. Hearings upon refusal of hemp-derived
cannabinoid beverage license renewal or transfer and
appeals.
If an applicant for a hemp-derived cannabinoid beverage
license or THC extraction license has the application or request
for license denied, the applicant is entitled to a hearing and
an appeal. The hearings and appeals process shall mirror the
process outlined in section 464.
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Section 426-A. Transportation of hemp-derived beverages.
(a) License required.--A person who transports hemp-derived
cannabinoid beverages for another who is engaged in selling
hemp-derived cannabinoid beverages shall hold a license to
transport for hire alcohol, liquor and malt or brewed beverages.
(b) Construction.--Nothing in this section shall be
construed as to prevent the transportation of malt or brewed
beverages together with hemp-derived cannabinoid beverages.
Section 427-A. Imposition of hemp-derived cannabinoid beverage
tax.
(a) Tax authorized.--There is imposed upon each purchase at
retail of hemp-derived cannabinoid beverages a tax of 12% of the
purchase price to be collected from the purchaser by the seller
of the beverage.
(b) Disposition of tax.--The amount collected under
subsection (a) shall be transmitted quarterly to the board by
the collector of the tax. The board shall pay the money
collected, along with money collected by the board under
subsection (a), into the State Treasury and 20% of the total
shall be transferred to the Local Hemp Sharing Fund. The
remainder shall be transferred to the General Fund.
(c) Receipt and tracking system.--The board shall promulgate
regulations that provide for an appropriate receipt and tracking
system to be utilized by all sellers of hemp-derived cannabinoid
beverages subject to the collection of the tax that provides the
municipality of origin from which the tax money paid originate
from.
(d) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
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"Purchase at retail."
(1) Purchases made by a person for any reason from a
licensed hemp-derived cannabinoid beverage distributor,
licensed hemp-derived cannabinoid beverage importing
distributor or Pennsylvania Liquor Store.
(2) The term includes purchases made by a hemp-derived
cannabinoid beverage retail license holder from a licensed
hemp-derived cannabinoid beverage manufacturer.
(3) The term does not include:
(i) Purchases made by a hemp-derived cannabinoid
beverage distributor, hemp-derived cannabinoid beverage
importing distributor, or Pennsylvania Liquor Store from
a hemp-derived cannabinoid beverage importing
distributor.
(ii) Purchases made by a person from a hemp-derived
cannabinoid beverage retail license holder for
consumption on premises.
Section 428-A. Exemption from sales tax.
Sales of hemp-derived cannabinoid beverages from a hemp-
derived cannabinoid beverage retail license holder to a person
for consumption on premises is exempt from the sales and use tax
imposed in section 202 of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971.
Section 429-A. Establishment of and disbursements from Local
Hemp Sharing Fund.
(a) Establishment.--The Local Hemp Sharing Fund is
established within the State Treasury. Money in the Local Hemp
Sharing Fund shall be appropriated on a continuing basis for the
purposes described under this section.
(b) Assessment by department.--The department shall annually
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assess the total amount of revenue raised by the tax imposed in
section 427-A and determine the amount received from each
municipality who has, in their jurisdiction, a vendor or
manufacturer of hemp-derived cannabinoid beverages that has
collected the tax.
(c) Disbursement.--The department shall disburse, on an
annual basis, to each municipality who has, in their
jurisdiction, a vendor or manufacturer of hemp-derived
cannabinoid beverages that has collected the tax under section
427-A in the preceding calendar year a portion equal to 10% of
the total tax received from vendors and manufacturers of hemp-
derived cannabinoid beverages located in the municipality.
Section 430-A. THC not to be considered adulterant.
THC that is derived solely and exclusively from hemp and used
in food and beverage preparations that are manufactured, sold,
transported or otherwise used in compliance with this article
shall not be considered by the Commonwealth or any of its
agencies to be an adulterant or poison or have any other
designation attached to the THC that would render it unfit or
unsafe for use in beverages and food meant for human
consumption.
Section 431-A. Exemption from existing law.
(a) Exemption from The Controlled Substance, Drug, Device
and Cosmetic Act.--Hemp, THC exclusively and solely derived from
hemp or mixtures, preparations and beverages containing THC that
are exclusively and solely derived from hemp that are used in
compliance with this article or were lawfully manufactured under
this article or lawfully manufactured in the jurisdiction of
another state shall not be subject to the act of April 14, 1972
(P.L.233, No.64), known as The Controlled Substance, Drug,
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Device and Cosmetic Act, or be subject to any other laws of this
Commonwealth, outside of this article, that would otherwise
prohibit the use, possession, sale, transport or manufacture of
hemp, beverages, mixtures or preparations on account of the
hemp, beverages, mixtures or preparations containing THC.
(b) Regulations.--The board shall promulgate regulations
that determine the actions that may be taken if a licensee has
its license revoked, suspended or otherwise removed, and the
former licensee still has in its possession hemp-derived
cannabinoid beverages, hemp, hemp-derived THC mixtures,
emulsions, concentrate or any other hemp-derived product
containing THC. The regulations shall include a reasonable
period of time for the former license holder to responsibly
dispose of the remaining stock. Sale, barter, trade, donation or
any other transfer of remaining stock, whether or not for
monetary gain, shall not be considered a method of responsible
disposal.
(c) Exemption for former license holder.--A former license
holder who is in compliance with the rules promulgated by the
board under subsection (b) may not be criminally charged or
otherwise subject to The Controlled Substance, Drug, Device and
Cosmetic Act or any other laws of this Commonwealth that would
otherwise prohibit the use, possession, sale, transport or
manufacture of the beverages on account of the beverages
containing THC, in relation to any remaining stock of hemp-
derived cannabinoid beverages, hemp, hemp-derived THC mixtures,
emulsions, concentrate or any other hemp-derived product
containing THC that the former license holder has in their
possession.
(d) Rules and regulations.--The board shall promulgate rules
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and regulations as necessary to protect licensees, former
licensees and applicants who are acting in good faith to comply
with this article from criminal or civil penalties that would be
levied by The Controlled Substance, Drug, Device and Cosmetic
Act or any other laws of this Commonwealth that would otherwise
prohibit the use, possession, sale, transport or manufacture of
hemp, THC or mixtures and preparations containing THC in
relation to hemp-derived cannabinoid beverages, or ingredients
containing THC used in the manufacture of the products that the
license holder or former license holder may have in their
possession.
(e) Violation by minor.--An individual under 21 years of age
who attempts to purchase, purchases, consumes, possesses or
knowingly and intentionally transports a hemp-derived
cannabinoid beverage shall not be subject to The Controlled
Substance, Drug, Device and Cosmetic Act in relation to the
attempted purchase, purchase, consumption, possession or
transportation of the hemp-derived cannabinoid beverages. The
individual shall only be subject to section 422-A(c) with regard
to the actions.
(f) Construction.--Nothing in this section shall be
construed to exempt an individual under the influence of hemp-
derived cannabinoid beverages from 75 Pa.C.S. § 3735.1 (relating
to aggravated assault by vehicle while driving under the
influence), 3802 (relating to driving under influence of alcohol
or controlled substance), 3803 (relating to grading), 3804
(relating to penalties) or 7726 (relating to operation in safe
manner). For the purposes of those sections only, hemp-derived
cannabinoid beverages, THC derived solely and exclusively from
hemp or a product made from the THC shall be considered a
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controlled substance.
Section 432-A. Federal cooperation prohibited.
(a) Prohibition.--A government official, government
employee, law enforcement officer, law enforcement agency or
government agency that has jurisdiction anywhere in this
Commonwealth shall not provide information, funding, material
support or any other assistance to Federal law enforcement,
Federal Government agencies, or other Federal bodies as it
relates to investigations and civil or criminal actions against
a person licensed under this article who is alleged to have
violated Federal laws or regulations related to hemp or THC.
(b) Investigations and actions.--The prohibition in
subsection (a) shall also apply to Federal investigations and
civil or criminal actions against a person who consumes,
possesses, transports, purchases or attempts to purchase hemp-
derived cannabinoid beverages lawfully manufactured under this
article or lawfully manufactured in the jurisdiction of another
state.
(c) Nonapplicability.--The prohibition in subsection (a)
does not apply to investigations and civil or criminal actions
concerning THC that is not derived solely and exclusively from
hemp, products made from THC that is not derived solely and
exclusively from hemp or marijuana as defined by section 2 of
the act of April 14, 1972 (P.L.233, No.64), known as The
Controlled Substance, Drug, Device and Cosmetic Act, or section
102 of the Controlled Substances Act (Public Law 91-513, 84
Stat. 1236).
Section 433-A. Financial and insurance services to licensees.
(a) Financial services.--A financial institution authorized
to engage in business in this Commonwealth may provide financial
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services to or for the benefit of a hemp-derived cannabinoid
beverage licensee and the business associates of a hemp-derived
cannabinoid beverage licensee, subject to:
(1) The laws and regulations applicable to the provision
of financial services to other customers of the financial
institution.
(2) Applicable consumer protection laws of this
Commonwealth.
(3) Additional requirements applicable to the
institution established for the provision of services to
hemp-derived cannabinoid beverage licensees or their business
associates by the Department of Banking and Securities or a
financial regulatory agency of the state under which the
institution is organized.
(4) The extent the institution is providing services to
a hemp-derived cannabinoid beverage licensee or their
business associates in another jurisdiction, additional
requirements applicable to the institution established for
the provision of the services by a financial regulatory
agency of that jurisdiction.
(b) Insurance services.--An insurer may provide insurance
services to or for the benefit of a hemp-derived cannabinoid
beverage licensee or their business associates, subject to:
(1) The laws and regulations applicable to the provision
of insurance services to other customers of the insurer.
(2) Applicable consumer protection laws of this
Commonwealth.
(3) Additional requirements applicable to the insurer
established for the provision of services to hemp-derived
cannabinoid beverage licensees or their business associates
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by the Insurance Department.
(4) The extent the insurer is providing services to
hemp-derived cannabinoid beverage licensees or their business
associates in another jurisdiction, additional requirements
applicable to the insurer established for the provision of
the services by an insurance regulatory agency of that
jurisdiction.
(c) No requirement.--Nothing in this article shall require a
depository institution, an entity performing a financial service
for or in association with a financial institution or an insurer
to provide financial or insurance services to hemp-derived
cannabinoid beverage licensees or the business associates of the
licensees or to any other business.
Section 434-A. Protections for financial institutions and
insurers.
(a) Restrictions.--An agency or political subdivision of
this Commonwealth may not:
(1) Prohibit, penalize or otherwise discourage a
financial institution or insurer from providing financial or
insurance services to a hemp-derived cannabinoid beverage
licensee or their business associates.
(2) Recommend, incentivize or encourage a financial
institution or insurer not to offer financial or insurance
services to an account holder, or downgrade or cancel
services provided to the account holder, solely because the
account holder is a hemp-derived cannabinoid beverage
licensee or a business associate of a hemp-derived
cannabinoid beverage licensee.
(3) Take adverse or corrective supervisory action on a
loan made to a hemp-derived cannabinoid beverage licensee or
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a business associate of a hemp-derived cannabinoid beverage
licensee solely because the loan has been made to a hemp-
derived cannabinoid beverage licensee or a business associate
of a hemp-derived cannabinoid beverage licensee.
(4) Prohibit or penalize a financial institution or
insurer performing financial or insurance services in
association with another financial institution or insurer
from providing financial or insurance services to a hemp-
derived cannabinoid beverage licensee or a business associate
of a hemp-derived cannabinoid beverage licensee.
(5) Subject the legal interest of a financial
institution in the collateral for a loan or another financial
service provided to a hemp-derived cannabinoid beverage
licensee or the business associates of a hemp-derived
cannabinoid beverage licensee to civil or criminal forfeiture
under any laws of this Commonwealth or initiate or
participate in proceedings for the civil or criminal
forfeiture of a legal interest under Federal law or under the
laws of another state.
(b) Enforcement actions.--Nothing in this article shall
prevent the Department of Banking and Securities, the Insurance
Department or the Attorney General, in a manner consistent with
the requirements of section 506 of the act of May 15, 1933
(P.L.565, No.111), known as the Department of Banking and
Securities Code, from undertaking an enforcement action for
compliance with section 433-A(a) and (b) in a manner consistent
with subsection (a).
(c) Not subject to criminal prosecution, sanction or
claim.--Subject to subsection (g), a financial institution or
insurer, or the directors, officers, employees, agents, owners,
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shareholders or members of a financial institution or insurer,
shall not be subject to criminal prosecution, sanction or claim
for damages or any equitable remedy, solely because the
institution or insurer is providing financial or insurance
services to or for the benefit of a hemp-derived cannabinoid
beverage licensee or the business associates of a hemp-derived
cannabinoid beverage licensee.
(d) Proceeds.--The proceeds of a transaction involving the
activities of a hemp-derived cannabinoid beverage licensee may
not be considered proceeds from an unlawful activity solely
because the transaction involves the proceeds from a hemp-
derived cannabinoid beverage licensee or a business associate of
a hemp-derived cannabinoid beverage licensee.
(e) Rights and privileges.--A hemp-derived cannabinoid
beverage licensee, or a business associate of a hemp-derived
cannabinoid beverage licensee, shall not be denied a right or
privilege by a State agency solely because of the licensee's or
business associate's status as a hemp-derived cannabinoid
beverage licensee or business associate of a hemp-derived
cannabinoid beverage licensee.
(f) Failure to provide notice.--If a hemp-derived
cannabinoid beverage licensee fails to provide the notice
required under subsection (h) to a financial institution or
insurer, the financial institution or insurer shall not be
deemed in violation of this chapter solely because the financial
institution or insurer was not notified and continued to provide
services beyond the date when the services should have been
terminated as a result of the suspension or revocation of the
license or permit.
(g) Compliance.--The protections provided by this section to
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a financial institution or insurer and to the directors,
officers, employees, agents, owners, shareholders or members of
the institution or insurer are subject to the institution's or
insurer's material compliance with the requirements of section
433-A(a) and (b) and reasonable due diligence to determine that
a hemp-derived cannabinoid beverage licensee or a business
associate of a hemp-derived cannabinoid beverage licensee is in
compliance with the laws of this Commonwealth and the laws of
other states in which the hemp-derived cannabinoid beverage
licensee is located that provide authorization for the operation
of hemp-derived cannabinoid beverage businesses.
(h) Notice.--If a hemp-derived cannabinoid beverage licensee
obtains financial or insurance services from a financial
institution or insurer doing business in this Commonwealth, the
licensee shall, within five business days, provide notice to the
financial institution or insurer if a hemp-derived cannabinoid
beverage related license or permit held by the licensee or their
affiliates under the laws of this Commonwealth or a law
established by another state is suspended or revoked.
(i) Policy and regulations.--The Department of Banking and
Securities and the Insurance Department may adopt statements of
policy or regulations to implement this section and section 433-
A and provide further protection and guidance for financial
institutions and insurers providing financial or insurance
services to a hemp-derived cannabinoid beverage licensee and
business associates of a hemp-derived cannabinoid beverage
licensee.
Section 435-A. Food and beverage facility oversight.
(a) Duty of department.--The Department of Agriculture, in
accordance with 3 Pa.C.S. (relating to agriculture), shall have
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oversight and inspection authority with regard to food safety of
a facility that manufactures, packages, stores or transports
hemp-derived cannabinoid beverages or any other food ingredient,
hemp product, hemp byproduct or THC product that is used in the
manufacture, mixing, blending or other creation of hemp-derived
cannabinoid beverages. The Department of Agriculture shall
promulgate food safety rules and regulations that provide for
the safe handling, storage, mixing and other activities related
to the manufacture of hemp-derived cannabinoid beverages.
(b) Inspection.--A person licensed under this article to
manufacture or produce hemp-derived cannabinoid beverages or
related ingredients may not manufacture or produce hemp-derived
cannabinoid beverages or related ingredients before passing a
facility inspection by the Department of Agriculture with regard
to food safety standards and hemp-derived cannabinoid beverage
manufacturing standards.
(c) Authority of board.--The board shall have inspection and
oversight authority of a facility that manufactures, packages,
stores or transports hemp-derived cannabinoid beverages or any
other food ingredient, hemp product, hemp byproduct or THC
product that is used in the manufacture, mixing, blending or
other creation of hemp-derived cannabinoid beverages with regard
to nonfood safety violations or suspected violations of this
article. This subsection shall not be construed to deny
oversight authority to other relevant State agencies concerning
their respective oversight duties.
(d) Referral to board.--The Department of Agriculture shall
refer any suspected nonfood safety violations the Department of
Agriculture finds, in the course of a food safety inspection or
investigation, to the board for investigation. The board shall
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refer any suspected food safety violations found in the course
of a nonfood safety inspection or investigation to the
Department of Agriculture for investigation.
Section 436-A. Packaging and labeling.
(a) Display information.--A licensed manufacturer of hemp-
derived cannabinoid beverages shall include the following on the
final container's principal display panel:
(1) A label that clearly indicates through text or
symbol that the product is only intended for use by
individuals 21 years of age and older.
(2) A statement of identity that includes the name of
the product.
(3) A clear description of the product, including:
(i) A statement that makes clear that the product
contains THC.
(ii) A statement that makes clear that the product
does not contain alcohol.
(4) The total milligram count of all cannabinoids in
each serving.
(5) A statement encouraging consumers to consume the
product slowly and consume products with lower THC content if
the consumer is not experienced in the consumption of such
products. Acceptable statements may include "Start low, go
slow" or "Please consume responsibly."
(6) A warning not to consume the product concurrently
with alcohol.
(b) Final container information.--A licensed manufacturer of
hemp-derived cannabinoid beverages shall include the following
on the final container's information panel:
(1) The total amount of cannabinoids in milligrams that
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the product contains.
(2) Any functional ingredients that may be in the
product, including caffeine.
(c) Label information.--A licensed manufacturer of hemp-
derived cannabinoid beverages shall include the following on the
final container's label:
(1) A link or scannable code that connects
electronically through the Internet to a certificate of
analysis and report of laboratory testing for the specific
product batch under section 438-A.
(2) The manufacturing batch number of the product.
(3) Statements that advise of the possible impacts of
consuming hemp-derived cannabinoid products, including:
(i) "Keep out of reach of children and pets."
(ii) "Consuming this product may result in a
positive drug test for THC."
(iii) "Do not consume this product if you are
nursing or pregnant."
(iv) "Do not operate a motor vehicle or heavy
machinery if under the influence of THC or using this
product."
(d) Variance.--The variance between what information is
listed on the nutrition label and what is actually present in
the product shall be whichever is the greater of:
(1) 0.25 milligrams of THC; or
(2) 10% of the label's stated cannabinoid potency.
(e) Dispensing of product.--If a hemp-derived cannabinoid
beverage is being served outside of the final container by a
person licensed under this article, the licensee must have
available upon request by the consumer the information outlined
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in subsections (a), (b) and (c). The dispensing of a hemp-
derived cannabinoid beverage from a spigot, fountain or other
similar device shall be considered to be served outside of the
final container.
(f) Tamper-evident containers.--Final containers of hemp-
derived cannabinoid beverages shall be tamper-evident and
indicate to a reasonable consumer if the final container has
been opened or compromised.
Section 437-A. Advertising of hemp-derived cannabinoid
beverages.
(a) Advertisements permitted.--Manufacturers, wholesalers,
retailers and shippers, whether from outside or inside this
Commonwealth, and licensees under this article are permitted to
advertise hemp-derived cannabinoid beverages and their prices in
this Commonwealth. Advertisements shall be subject to all other
State laws and regulations. The following apply:
(1) Advertisements shall not target or otherwise promote
or advertise hemp-derived cannabinoid beverages to
individuals under 21 years of age.
(2) Product labels or containers shall not include
designs, names or features designed to appeal to children or
individuals under 21 years of age.
(3) Product labels and marketing shall not be designed
in a way that a person could reasonably mistake the product
for a non-hemp-derived cannabinoid product.
(4) Product labels and marketing shall not be designed
in a way that infringes on third-party copyright or the
intellectual property of existing products.
(5) A licensee may not distribute, by mail, personally
or through servants, agents or employees, price lists,
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circulars or handbills off the licensed premises to the
general public as a means of advertising hemp-derived
cannabinoid beverages.
(6) Print advertisement of hemp-derived cannabinoid
beverages shall not be permitted within 300 feet of a church,
school or public playground. This prohibition shall not
preclude any point of sale advertisement, menus or other
print advertisement regarding hemp-derived cannabinoid
beverages inside the licensed premises.
(7) Advertisement shall not be permitted in any booklet,
program book, yearbook, magazine, newspaper, periodical,
brochure, circular or other similar publication published by,
for or on behalf of an educational institution.
(8) An advertisement may not contain statements that are
false, deceptive, or misleading.
(b) Definition.--For purposes of this section, the terms
"advertisement" and "marketing" shall mean advertising of hemp-
derived cannabinoid beverages through the medium of radio
broadcast, television broadcast, newspapers, periodicals or
other publication, outdoor advertisement, any form of electronic
transmission or any other printed or graphic matter, including
booklets, flyers or cards, or on the product label or attachment
itself.
Section 438-A. Testing requirements.
(a) Testing required.--A manufacturer of hemp-derived
cannabinoid beverages shall test every manufactured batch of
hemp-derived cannabinoid beverages using an independent, third-
party testing facility.
(b) Testing facility standards.--A testing facility used by
a manufacturer for the testing of hemp-derived cannabinoid
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beverages shall meet the following standards:
(1) Must be accredited by the state in which the testing
facility operates, maintain an International Organization for
Standardization/International Electrotechnical Commission
17025 accreditation for the facility and be licensed by the
state in which the testing facility operates to test cannabis
products.
(2) Must maintain a scope of accreditation for analytes
as required in subsection (c).
(3) Must maintain testing records, validation reports
and standard operating procedures for all tests performed for
at least 10 years after the date the test was performed.
(c) Concentrations.--A testing facility shall test for the
concentrations of the following analytes:
(1) Delta-9-tetrahydrocannabinol.
(2) Cannabidiol.
(3) Cannabidiolic Acid.
(4) Cannabigerol.
(5) Cannabinol.
(6) Delta-8-tetrahydrocannabinol.
(7) Other analytes prescribed by the Department of
Agriculture.
(d) Certificate of analysis.--A testing facility shall issue
a certificate of analysis that attests to the concentrations of
the analytes outlined in subsection (c).
(e) Location of testing facility.--A testing facility may or
may not reside in the same state in which the tested product is
produced or sold.
(f) Rules and regulations.--The Department of Agriculture
shall promulgate rules and regulations as necessary to provide
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for the health and safety of the public as it relates to testing
requirements for hemp-derived cannabinoid beverages.
(g) Adulterated product.--A hemp-derived cannabinoid
beverage for which a certificate of analysis cannot be presented
shall be considered to be adulterated and subject to detention
and condemnation under 3 Pa.C.S. § 5726 (relating to detention
and condemnation).
Section 439-A. Electronic tracking systems.
(a) Duty of grower and provider.--A grower and provider of
hemp to persons licensed under this article to manufacture hemp-
derived cannabinoid beverages or persons licensed to extract THC
from hemp shall implement an electronic seed-to-sale tracking
system that tracks the hemp from seed to plant until the hemp is
sold to a manufacturer or person licensed under this article to
extract THC from hemp. The following apply:
(1) The system shall include a daily log of each day's
beginning inventory, acquisitions, amounts purchased and
sold, disbursement, disposals and ending inventory. The
tracking system shall include prices paid and amounts
collected from manufacturers or persons licensed to extract
THC.
(2) The system shall include a mechanism for the recall
of defective hemp. For purposes of this paragraph, the term
"defective hemp" shall mean hemp with a THC content greater
than that specified under the definition of "hemp" under
section 102.
(b) Duty of manufacturer.--A manufacturer of hemp-derived
cannabinoid beverages shall implement an electronic tracking
system that tracks hemp or THC extracted from hemp, in whatever
form the hemp or THC is received in, from acquisition to
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production of a hemp-derived cannabinoid beverage to final
delivery to a distributor, importing distributor or other final
customer. The following apply:
(1) The system shall include a daily log of each day's
beginning inventory, acquisitions, amounts purchased and
sold, disbursement, disposals and ending inventory. The
tracking system shall include prices paid and amounts
collected from hemp providers or persons licensed to extract
THC.
(2) The system shall include a mechanism for the recall
of adulterated products.
(c) Duty of extractor.--A person licensed under this article
to extract THC from hemp shall implement an electronic tracking
system that tracks the hemp used in extraction from acquisition
to processing to sale to a manufacturer. The system shall
include a daily log of each day's beginning inventory,
acquisitions, amounts purchased and sold, disbursement,
disposals and ending inventory. The tracking system shall
include prices paid and amounts collected from manufacturers of
hemp-derived cannabinoid beverages.
(d) Adulterated product.--A manufacturer of hemp-derived
cannabinoid beverages or person licensed to extract THC from
hemp shall not accept any hemp or hemp-derived THC extraction
from a person who cannot provide appropriate records as outlined
in this section. A hemp or THC extract from hemp that cannot be
accounted for in an electronic tracking system as outlined in
this section, as well as hemp-derived cannabinoid beverages from
the hemp or THC extract from hemp shall be considered to be
adulterated and subject to detention and condemnation under 3
Pa.C.S. § 5726 (relating to detention and condemnation).
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(e) Out-of-state manufacturer information.--The board shall
determine what information manufacturers of hemp-derived
cannabinoid beverages that reside outside of this Commonwealth
must furnish, upon request, to satisfy the tracking and
recordkeeping requirements of this section. The determinations
shall not result in a lower standard of information and
recordkeeping than is outlined in this section.
(f) Rules and regulations.--The Department of Agriculture
shall promulgate rules and regulations as necessary to enforce
this section.
Section 440-A. Forms and applications may be aligned.
The board, for the convenience of the board, licensees and
applicants, may align relevant forms, notification requirements,
correspondence and applications as needed to include both
alcohol and hemp-derived cannabinoid beverages.
Section 441-A. Pennsylvania Hemp Marketing Board.
(a) Establishment.--The Pennsylvania Hemp Marketing Board is
established.
(b) Membership.--The Pennsylvania Hemp Marketing Board shall
be composed of the following members:
(1) One member appointed by the Governor.
(2) Four members appointed by the General Assembly as
follows:
(i) One individual appointed by the President pro
tempore of the Senate.
(ii) One individual appointed by the Minority Leader
of the Senate.
(iii) One individual appointed by the Speaker of the
House of Representatives.
(iv) One individual appointed by the Minority Leader
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of the House of Representatives.
(c) Qualifications.--A member of the board must be a
resident of this Commonwealth and have substantial experience or
expertise in the hemp or hemp-derived cannabinoid beverage
industry.
(d) Service.--A member shall serve at the pleasure of the
appointing authority.
(e) Powers and duties.--The Pennsylvania Hemp Marketing
Board has the following powers and duties:
(1) Make recommendations to the Secretary of Agriculture
to award grants to entities for the purpose of increasing the
production of Pennsylvania-made hemp-derived cannabinoid
beverages and foods and enhancing the Pennsylvania hemp
industry through promotion, marketing and research-based
programs and projects. Grants shall be awarded through a
competitive grant review process. The application for a grant
shall include the following information:
(i) Purpose for which the grant will be utilized.
(ii) Need for the grant.
(iii) Estimated budget.
(iv) Method for measuring outcome.
(v) Other criteria required by the Pennsylvania Hemp
Marketing Board.
(2) Require a grant recipient to provide full and
complete access to all records relating to the performance of
the grant and to submit accurate information.
(3) Conduct a thorough annual evaluation of a program
for which a grant under this section is made.
(4) Seek repayment of money upon a determination that
the money was not utilized for the original stated purpose.
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(5) Submit an annual report to the General Assembly
detailing all grants and other actions.
(f) Duties of department.--The Department of Agriculture
shall assist the Pennsylvania Hemp Marketing Board in carrying
out its powers and duties. Final decisions for awarding grants
under subsection (e)(1) shall be made by the Secretary of
Agriculture.
(g) Transfer.--Annually, the department shall transfer money
left in the Local Hemp Sharing Fund after disbursement in
compliance with section 403-A(c) to the Pennsylvania Hemp
Marketing Board account.
(h) Grants.--The Pennsylvania Hemp Marketing Board shall
allocate money under this subsection for the purpose of awarding
grants under subsection (e)(1). The following apply:
(1) The Pennsylvania Hemp Marketing Board may deduct
money from the allocation under this subsection to cover the
Department of Agriculture's expenses in assisting the
Pennsylvania Hemp Marketing Board.
(2) In a fiscal year when grant money authorized under
this section remains unallocated, the remaining amount of
money shall be made available for grants in subsequent fiscal
years.
(3) All of the obligations of the board under this
section are fulfilled by virtue of the transfer of the annual
allocation under this subsection to the Pennsylvania Hemp
Marketing Board.
Section 442-A. Restriction on contents.
(a) Potency.--A serving of hemp-derived cannabinoid beverage
shall not contain more than 10 milligrams of hemp-derived THC,
and no final container of hemp-derived cannabinoid beverage
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shall contain more than 20 milligrams of hemp-derived THC.
(b) Kegs exempt.--A keg or other container whose contents
are meant to be dispensed through a fountain, spigot, tap or
other similar device may contain more than two 10 milligram
servings as provided for in subsection (a). Kegs shall dispense
servings of at least 300 milliliters, and the total THC in a
serving shall not exceed 10 milligrams. A keg shall have uniform
milligram levels of THC throughout its contents.
(c) Alcohol.--A hemp-derived cannabinoid beverage or hemp-
derived cannabinoid food shall not contain alcohol in excess of
0.5% alcohol by volume, whether in the final container or mixed
with a noncannabinoid beverage and served by a person licensed
under this article.
(d) Cannabinoid content.--The following apply to hemp-
derived cannabinoid beverages:
(1) Cannabinoids used in hemp-derived cannabinoid
beverages must be derived from, naturally occurring in and
directly extracted from the hemp plant.
(2) The principal cannabinoid that shall be used in the
production of hemp-derived cannabinoid beverages shall be
delta-9-THC.
(3) Hemp-derived cannabinoid beverages shall not contain
delta-9(11) exo-tetrahydrocannabinol, delta-10 THC, THC-O
acetate, THC-O-phosphate or hexahydrocannabinol.
(4) Hemp-derived cannabinoid beverages shall not contain
synthetic cannabinoids or other artificially derived
cannabinoids, nor shall they contain any cannabinoids derived
from any cannabis plant other than hemp.
(5) Hemp-derived cannabinoid beverages shall be free of
microbials such as yeast, mold, bacteria and aspergillus.
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(6) Hemp-derived cannabinoid beverages shall be free of
contaminants such as mycotoxins, residual solvents, heavy
metals and foreign matter.
(e) Adulterated product.--A hemp-derived cannabinoid
beverage that fails to meet the standards outlined in this
section shall be considered adulterated and subject to detention
and condemnation under 3 Pa.C.S. § 5726 (relating to detention
and condemnation).
(f) Rules and regulations.--The Department of Agriculture
shall promulgate rules and regulations to enforce this section
and provide for the health and safety of the public with respect
to the contents of hemp-derived cannabinoid beverages.
Section 443-A. Training required before licensees can sell or
manufacture hemp-derived cannabinoid products.
(a) Training required.--A person licensed under this article
to sell or manufacture hemp-derived cannabinoid beverages or
hemp-derived cannabinoid beverage ingredients that contain hemp-
derived THC shall not sell or manufacture hemp-derived
cannabinoid beverages or hemp-derived cannabinoid beverage
ingredients that contain hemp-derived THC until completion of a
training program offered by the board.
(b) Training program.--The board shall develop a hemp-
derived cannabinoid beverage training program. The training
program shall include the following:
(1) An explanation of the provisions of this article as
they relate to hemp-derived cannabinoid beverages and hemp-
derived ingredients.
(2) An explanation of what is expected of the licensee,
depending on their licensure, to come into and remain in
compliance with this article as it relates to hemp-derived
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cannabinoid beverages and hemp-derived ingredients.
(3) A guide on how to encourage safe and responsible use
of hemp-derived cannabinoid beverages.
(4) A guide on how to keep minors from accessing hemp-
derived cannabinoid beverages.
(5) How to report suspected violations of the law to the
board or the Department of Agriculture.
Section 444-A. Hemp-derived cannabinoid beverages and alcohol
served or manufactured in same establishment.
(a) Sales of alcohol and hemp-derived cannabinoid
beverages.--A licensee who holds both a license to serve alcohol
for on-premise consumption and a license to serve hemp-derived
cannabinoid beverages for on-premise consumption, or who holds a
license allowing for the sale of alcohol for off-premise
consumption and a license allowing for the sale of hemp-derived
cannabinoid beverages for off-premises consumption, shall be
permitted to sell both alcohol and hemp-derived cannabinoid
beverages in the same physical areas and at the same points of
sale if each license would independently permit sales of alcohol
or hemp-derived cannabinoid beverages in the physical areas or
at the points of sale.
(b) Applicability.--This section shall apply to a holder of
a hemp-derived cannabinoid beverage catering license and permit
who also holds a catering license or permit or special occasion
permit that allows them to serve or sell alcohol.
(c) Construction.--Nothing in this article shall be
construed to prevent the manufacture of hemp-derived cannabinoid
beverages and alcohol at the same licensed establishment,
provided that the manufacturer of the hemp-derived cannabinoid
beverages and/or alcohol holds both a hemp-derived cannabinoid
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beverage manufacturer's license and a license to manufacture
alcohol.
(d) Calculation of fluid ounces.--In calculating total fluid
ounces in accordance with sections 401 and 405-A, fluid ounces
of hemp-derived cannabinoid beverages shall be calculated
separately from fluid ounces of malt and brewed beverages sold,
so that a licensee may sell 192 fluid ounces of hemp-derived
cannabinoid beverages and 192 fluid ounces of malt and brewed
beverages in the same transaction.
(e) Posted warning.--A licensee shall post, at the point of
sale for alcohol and hemp-derived cannabinoid beverages meant to
be consumed on premises, a warning that states that hemp-derived
cannabinoid beverages and alcohol should never be consumed
concurrently. The board shall promulgate rules dictating the
content, dimensions and form of the postings.
Section 445-A. Number of licenses to be issued.
(a) Additional licenses.--Additional hemp-derived
cannabinoid beverage retail licenses shall not be issued in a
county if the total number of hemp-derived cannabinoid beverage
retail licenses is greater than one license for each 2,000
inhabitants, except the board may issue licenses to public
venues, performing arts facilities, hotels and continuing care
retirement communities, which are not subject to the limitations
of this section.
(b) Consideration of licenses.--When determining the number
of hemp-derived cannabinoid beverage retail licenses already
issued in a county, for the purposes of this section, licenses
issued to public venues, performing arts facilities, hotels and
continuing care retirement communities shall not be considered.
(c) Hotels.--
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(1) As used in this section, the term "hotel" shall mean
a reputable place operated by a responsible person of good
reputation where the public may, for a consideration, obtain
sleeping accommodations, and which shall have the number of
bedrooms and requirements as specified in paragraph (2) and:
(i) at least one-half of the required number of
bedrooms shall be regularly available to transient guests
seven days weekly, except in resort areas;
(ii) at least one-third of the bedrooms shall be
equipped with hot and cold water, a lavatory, commode,
bathtub or shower and a clothes closet; and
(iii) an additional one-third of the total of the
required rooms shall be equipped with lavatory and
commode:
(2) Bedrooms and requirements:
(i) In municipalities having a population of less
than 3,000, a hotel shall have at least 12 permanent
bedrooms for the use of guests.
(ii) In municipalities having a population of at
least 3,000 but less than 10,000, a hotel shall have at
least 16 permanent bedrooms for the use of guests.
(iii) In municipalities having a population of at
least 10,000 but less than 25,000, a hotel shall have at
least 30 permanent bedrooms for the use of guests.
(iv) In municipalities having a population of at
least 25,000 but less than 100,000, a hotel shall have at
least 40 permanent bedrooms for the use of guests.
(v) In municipalities having a population of at
least 100,000, a hotel shall have at least 50 permanent
bedrooms for the use of guests.
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(vi) In a public dining room or rooms operated by
the same management accommodating at least 30 persons at
one time, a hotel shall have a kitchen, apart from the
dining room or rooms, in which food is regularly prepared
for the public.
(vii) Each room to be considered a bedroom under the
requirements of this section shall have an area of not
less than 80 square feet and an outside window.
Section 446-A. Hemp-derived cannabinoid beverage retail license
auctions.
(a) Conditions for auction.--A hemp-derived cannabinoid
beverage retail license shall become available for auction by
the board under the following conditions:
(1) the license has not been renewed under section 415-
A;
(2) the license has been revoked under section 423-A; or
(3) the licensee has failed to meet the requirements
under section 474.1.
(b) Unsold licenses.--A license not sold shall be available
for sale at a future auctions. No more than 50 licenses shall be
auctioned in any county per year.
(c) Applicability.--Subsection (b) shall not apply until the
auction of all initial offering licenses under section 447-A are
complete.
(d) Availability of licenses.--A license shall become
available for auction by the board the day after the deadline
has passed for appealing a decision revoking or not renewing the
license.
(e) Conduct of auction.--The auction shall be conducted in
the manner specified by the board and at the date and time
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selected by the board. After the auction, the board shall
provisionally award to the person making the highest bid for the
license the right to file an application for the license. The
board shall not accept a bid lower than $25,000.
(f) Time limit for payment.--The winning bidder shall pay to
the board the bid amount within two weeks. Payment shall be by
cashier's check, certified check or any other method acceptable
to the board. If the winning bidder does not pay the bid amount
within two weeks, the second highest bidder shall be awarded the
right to file an application for the license, as long as the bid
amount is in accordance with subsection (e). The board shall
hold the bid amount in escrow until the license is approved.
(g) Transfer of license.--Within six months of being awarded
the license, the bidder or its assignee shall file an
application to transfer the license. The application shall be
processed in the same manner as any other transfer application
and shall be subject to the same restrictions as any other
transfer application, including any conditional licensing
agreements and county quota restrictions under section 445-A.
The board shall only approve the transfer of a license under
this section to a municipality, other than the municipality it
last operated in, upon approval by the governing body of the
municipality.
(h) Unpaid fines, unserved suspensions, liens or judgments
not applicable.--Once a license has become available as
specified in this section, the license may no longer be subject
to unpaid fines, unserved suspensions, liens or judgments
accrued by the previous license holder. A winning bidder under
this section shall not be required to supply any information
about or secure any information from the previous license holder
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during the application process. A license acquired under this
section may subsequently be transferred subject to any
restrictions that would otherwise be applicable to the transfer
of the license.
Section 447-A. Hemp-derived cannabinoid beverage retail license
initial offering.
(a) Initial offering.--No later than one year after the
effective date of this article, the board shall hold in each
county an initial offering of hemp-derived cannabinoid beverage
retail licenses.
(b) Auctions.--The offering shall consist of an initial
auction with not less than one-third and not more than one-half
of the available hemp-derived cannabinoid beverage retail
licenses available for bidding. The second auction, which shall
be held no less than 30 days and no more than 45 days after the
initial auction, shall have all remaining licenses available for
bidding.
(c) Manner of auctions.--The auctions conducted under this
section shall be in the same manner as auctions conducted by the
board under section 446-A.
Section 448-A. Sales of hemp-derived cannabinoid beverages by
Pennsylvania Liquor Stores.
(a) Offering.--The board may offer for sale in Pennsylvania
Liquor Stores hemp-derived cannabinoid beverages for consumption
off-premises.
(b) Regulations.--The board may, in the context of retail
sales of hemp-derived cannabinoid beverages by Pennsylvania
Liquor Stores, adopt regulations regarding:
(1) The acquisition of hemp-derived cannabinoid
beverages for retail sale in Pennsylvania Liquor Stores.
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(2) The varieties and brands of hemp-derived cannabinoid
beverages to be kept and sold in Pennsylvania Liquor Stores.
(3) The pricing of hemp-derived cannabinoid beverages
sold in Pennsylvania Liquor Stores. The pricing scheme may
offer flexibility in maximizing the return on hemp-derived
cannabinoid beverage products sold by Pennsylvania Liquor
Stores and discounting discontinued items.
(4) The conduct of employees regarding the acquisition,
sale, transportation, handling, and storage of hemp-derived
cannabinoid beverages.
(5) The books and records to be kept regarding the sale,
transportation, handling and storage of hemp-derived
cannabinoid beverages.
(c) Special orders.--The board may choose not to accept
special orders for hemp-derived cannabinoid beverages. If the
board chooses to accept special orders, the process shall mirror
as close as possible the process for special orders of alcohol.
(d) Uniform prices.--The retail price of hemp-derived
cannabinoid beverages offered for sale by the board shall be
uniform across all Pennsylvania Liquor Stores.
(e) Pennsylvania Liquor Stores.--A hemp-derived cannabinoid
beverage final container shall not be opened on the premises of
a Pennsylvania Liquor Store. A manager or other employee of the
board employed in a Pennsylvania Liquor Store shall not allow
any hemp-derived cannabinoid beverages to be consumed on the
store premises.
Section 449-A. Regulations generally.
(a) Authorization.--In accordance with this article, the
board, the Department of Banking and Securities and the
Department of Agriculture shall each promulgate regulations as
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may be necessary and appropriate to carry out the provisions of
this article.
(b) Temporary regulations.--
(1) To facilitate the prompt implementation of this
article and in accordance with this article, the board, the
Department of Banking and Securities and the Department of
Agriculture shall each issue temporary regulations as may be
necessary and appropriate to carry out the provisions of this
article. The following shall apply to the temporary
regulations:
(i) The board, the Department of Banking and
Securities and the Department of Agriculture must issue
the temporary regulations within six months of the
effective date of this subsection. Regulations adopted
after this six-month period shall be promulgated as
provided by statute.
(ii) Upon the issuance of their respective temporary
regulations, the board, the Department of Banking and
Securities and the Department of Agriculture shall
transmit notice of the issuance of the temporary
regulations to the Legislative Reference Bureau for
publication in the next available issue of the
Pennsylvania Bulletin.
(iii) The board, the Department of Banking and
Securities and the Department of Agriculture shall post
their respective temporary regulations on their
respective publicly accessible Internet websites.
(iv) The temporary regulations shall expire no later
than two years following publication of the temporary
regulations in the Pennsylvania Bulletin.
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(2) The temporary regulations under paragraph (1) shall
be exempt from the following:
(i) Section 612 of the act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code of
1929.
(ii) Sections 201, 202, 203, 204 and 205 of the act
of July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(iii) Sections 204(b) and 301(10) of the act of
October 15, 1980 (P.L.950, No.164), known as the
Commonwealth Attorneys Act.
(iv) The act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(c) Permanent regulations.--Prior to the expiration of the
temporary regulations, the board, the Department of Banking and
Securities and the Department of Agriculture shall each propose
for approval permanent regulations as provided by statute.
Section 6. This act shall take effect as follows:
(1) The following shall take effect immediately:
The addition of section 449-A of the act.
This section.
(2) The remainder of this act shall take effect upon the
publication of the last of the temporary regulations issued
by the board, the Department of Banking and Securities and
the Department of Agriculture in accordance with section 449-
A of the act.
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