H1024B1596A01132 DMS:JSL 05/25/21 #90 A01132
AMENDMENTS TO HOUSE BILL NO. 1024
Sponsor: REPRESENTATIVE SHUSTERMAN
Printer's No. 1596
Amend Bill, page 1, line 14, by inserting after "for"
program established, for
Amend Bill, page 1, line 14, by inserting after "marijuana"
and for unlawful use of medical marijuana
Amend Bill, page 1, line 17, by inserting after "for" where
it occurs the first time
medical marijuana organizations, for
Amend Bill, page 1, line 17, by striking out "AND" and
inserting
, for granting of permit, for application and issuance, for fees
and other requirements,
Amend Bill, page 1, line 18, by inserting after "RELOCATION"
and for limitations on permits
Amend Bill, page 1, line 19, by inserting after "FOR" where
it occurs the first time
electronic tracking, for
Amend Bill, page 1, line 19, by inserting after
"GROWER/PROCESSOR"
and for storage and transportation
Amend Bill, page 1, lines 21 and 22, by striking out "and, in
miscellaneous provisions, further providing" and inserting
in tax on medical marijuana, further providing for tax on
medical marijuana; in Medical Marijuana Advisory Board,
further providing for advisory board; in academic clinical
research centers and clinical registrants, further providing
for clinical registrants; and, in miscellaneous provisions,
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further providing for zoning and
Amend Bill, page 1, lines 25 and 26, by striking out
""caregiver" and "continuing care"" and inserting
"caregiver," "continuing care" and "medical marijuana
organization"
Amend Bill, page 2, line 1, by striking out "a definition"
and inserting
definitions
Amend Bill, page 2, by inserting between lines 15 and 16
"Farmer-grower." A small business as defined in 62 Pa.C.S. ยง
2102 (relating to definitions) that:
(1) is a farm engaged in agricultural production,
including the cultivation of crops or horticulture products,
the production of food and fiber or the raising of livestock
or aquaculture and has been in operation in this Commonwealth
for no less than two seasons in the past five years and the
owner of which has been a resident of this Commonwealth for
at least two years;
(2) is an agricultural enterprise actively engaged in
agricultural production for no less than two season in the
past five years and the owner of which has been a resident of
this Commonwealth for at least two years; or
(3) holds a permit issued by the Department of Health to
grow or otherwise cultivate medical marijuana in this
Commonwealth.
* * *
"Medical marijuana organization." A dispensary, farmer-
grower or a grower/processor. The term does not include a health
care medical marijuana organization under Chapter 19.
* * *
Amend Bill, page 2, lines 21 through 23, by striking out all
of said lines and inserting
Section 2. Sections 301(a)(8), 303(b)(4), 304(b)(3), 405,
502(b), 601, 602(a) introductory paragraph, (1) and (4), 603(a)
and (d) and 606(a) introductory paragraph of the act are amended
to read:
Section 301. Program established.
(a) Establishment.--A medical marijuana program for patients
suffering from serious medical conditions is established. The
program shall be implemented and administered by the department.
The department shall:
* * *
(8) Develop enforcement procedures, including announced
and unannounced inspections of facilities of the
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grower/processors, farmer-growers and dispensaries and all
records of the medical marijuana organizations.
* * *
Amend Bill, page 3, by inserting between lines 1 and 2
Section 304. Unlawful use of medical marijuana.
* * *
(b) Unlawful use described.--It is unlawful to:
* * *
(3) Grow medical marijuana unless the grower/processor
or farmer-grower has received a permit from the department
under this act.
* * *
Amend Bill, page 4, by inserting between lines 6 and 7
Section 601. Medical marijuana organizations.
The following entities shall be authorized to receive a
permit to operate as a medical marijuana organization to grow,
process or dispense medical marijuana:
(1) Grower/processors.
(2) Dispensaries.
(3) Farmer-growers.
Amend Bill, page 4, line 8, by inserting after
"grower/processor"
, farmer-grower
Amend Bill, page 4, by inserting between lines 11 and 12
(1) Verification of all principals, operators, financial
backers or employees of a medical marijuana grower/processor,
farmer-grower or dispensary.
Amend Bill, page 5, line 6, by inserting after
"organization."
This paragraph shall not apply to an employee of a
farmer-grower, if the department determines that the employee
is not involved, either directly or indirectly, in the
business activities of the farmer-grower or in any activity
related to the growth, cultivation or harvesting of medical
marijuana. It shall be the duty of the farmer-grower to
provide evidence or proof, as the department may require,
that the employee is not engaged in business activities or in
any activity related to the growth, cultivation or harvesting
of medical marijuana conducted by the farmer-grower under
this act.
Amend Bill, page 5, by inserting between lines 7 and 8
Section 603. Granting of permit.
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(a) General rule.--The department may grant or deny a permit
to a grower/processor, farmer-grower or dispensary.
* * *
(d) Regions.--
(1) The department shall establish a minimum of three
regions within this Commonwealth for the purpose of granting
permits to grower/processors, farmer-growers and dispensaries
and enforcing this act. The department shall approve permits
for grower/processors and dispensaries in a manner which will
provide an adequate amount of medical marijuana to patients
and caregivers in all areas of this Commonwealth. The
department shall consider the following when issuing a
permit:
[(1) Regional population.
(2) The number of patients suffering from serious
medical conditions.
(3) The types of serious medical conditions.
(4) Access to public transportation.
(5) Any other factor the department deems relevant.]
(i) Regional population.
(ii) The number of patients suffering from serious
medical conditions.
(iii) The types of serious medical conditions.
(iv) Access to public transportation.
(v) Any other factor the department deems relevant.
(2) Notwithstanding paragraph (1), the department shall
establish criteria to govern the issuance of permits to
farmer-growers, provided that the department may issue a
minimum of 75 farmer-grower permits in a manner that ensures
participation by farmer-growers in all regions of this
Commonwealth.
(3) In issuing farmer-grower permits in accordance with
paragraph (2), the department shall consider:
(i) The percent increase or decrease in patients
seeking medical marijuana in this Commonwealth;
(ii) The need for additional supply of medical
marijuana to satisfy increases in the number of medical
marijuana patients;
(iii) Patient demand;
(iv) The availability and consistency in marijuana
products, including the availability of a particular form
of medical marijuana, including strains or new strains of
medical marijuana and medical marijuana products;
(v) Competition, including competition involving
illegal markets; and
(vi) other criterion that will ensure an adequate
supply of medical marijuana for patients and caregivers.
Section 606. Application and issuance.
(a) Duty to report.--An applicant to be a grower/processor
or farmer-grower or to operate a dispensary is under a
continuing duty to:
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* * *
Section 3. Section 607 of the act is amended by adding a
paragraph to read:
Section 607. Fees and other requirements.
The following apply:
* * *
(2.1) For a farmer-grower:
(i) An initial application fee in the amount of
$2,500 shall be paid. The fee is nonrefundable.
(ii) A fee for a permit as a farmer-grower in the
amount of $2,500 shall be paid. The permit shall be valid
for one year. Applicants shall submit the permit fee at
the time of submission of the application. The fee shall
be returned if the permit is not granted.
(iii) A renewal fee for the permit as a
grower/processor in the amount of $2,500 shall be paid
and shall cover renewal for all locations. The renewal
fee shall be returned if the renewal is not granted.
(iv) An application to renew a permit must be filed
with the department not more than six months nor less
than four months prior to expiration.
(v) All fees shall be paid by certified check or
money order.
(vi) Before issuing an initial permit under this
paragraph, the department shall verify that the applicant
has enough capital as determined by the department, which
must be on deposit with a financial institution.
* * *
Section 3.1. Section 609 of the act is amended to read:
Amend Bill, page 5, by inserting between lines 19 and 20
Section 4. Section 616 introductory paragraph of the act is
amended and the section is amended by adding paragraphs to read:
Section 616. Limitations on permits.
The following limitations apply to approval of permits for
grower/processors, farmer-growers and dispensaries:
* * *
(8) Notwithstanding section 603(d)(2), the number of
farmer-grower permits issued shall be determined by the
department.
(9) The department shall determine the maximum number of
farmer-grower permits that shall be issued to any natural
person, partnership, corporation, association, trust or other
entity or combination thereof.
(10) A farmer-grower may only provide medical marijuana
to a grower/processor holding a valid permit under this act.
Section 5. Section 701(d) introductory paragraph of the act
is amended, subsections (a) and (d) are amended by adding
paragraphs and the section is amended by adding a subsection to
read:
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Section 701. Electronic tracking.
(a) Requirement.--A grower/processor or dispensary must
implement an electronic inventory tracking system which shall be
directly accessible to the department through its electronic
database that electronically tracks all medical marijuana on a
daily basis. The system shall include tracking of all of the
following:
* * *
(6) For a grower/processor, a purchase-to-sale tracking
system that tracks medical marijuana procured from a farmer-
grower for processing until the medical marijuana is sold to
a dispensary.
(a.1) Requirement for farmer-growers.--A farmer-grower must
implement an inventory tracking system which shall be accessible
to the department. The system shall include tracking of all of
the following:
(1) The number of medical marijuana plants located on a
site used for growing or cultivating medical marijuana.
(2) The number of medical marijuana plants located on a
site used for growing or cultivating medical marijuana that
have been successfully cultivated for sale to a
grower/processor.
(3) The number of medical marijuana plants located on a
site used for growing or cultivating medical marijuana that
are unfit for cultivation and marked for disposal as plant
waste.
(4) A system to track the plant waste resulting from the
growth of medical marijuana or other disposal, including the
name and address of any disposal service.
(5) A weekly log of each week's beginning inventory,
acquisitions, amounts sold, disbursements, disposals and
ending inventory. The tracking system shall include prices
paid and amounts collected from grower/processors.
(6) Sites, including farmland, used for growing or
cultivating medical marijuana must be certified, inspected
and permitted by and registered with the department. The
failure to permit inspection by the department shall be a
violation of this chapter.
* * *
(d) Reports.--Within one year of the issuance of the first
permit to a grower/processor, farmer-grower or dispensary, and
every three months thereafter in a form and manner prescribed by
the department, the following information shall be provided to
the department, which shall compile the information and post it
on the department's publicly accessible Internet website:
* * *
(2.1) The amount of medical marijuana sold by a farmer-
grower during each three-month period.
(2.2) The price of amounts of medical marijuana sold by
a farmer-grower.
* * *
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Section 6. Section 702 of the act is amended to read:
Amend Bill, page 7, by inserting between lines 20 and 21
Section 6.1. The act is amended by adding a section to read:
Section 702.1. Farmer-growers.
(a) Authorization.--Subject to subsection (b), a farmer-
grower may obtain seed and plant material from a
grower/processor within this Commonwealth to grow medical
marijuana in accordance with department regulations.
(b) Limitations.--A farmer-grower may only grow, store or
harvest medical marijuana in an enclosed, secure area which:
(1) is delineated to a single site at the address
identified on the permit issued by the department;
(2) does not exceed two acres of land;
(3) includes locking systems and other security and
surveillance features required by the department; and
(4) is located within this Commonwealth.
(c) Use of farmland.--
(1) Notwithstanding any provisions of this act,
regulation of the department or any other law to the
contrary, a farmer-grower may grow or otherwise cultivate
medical marijuana on farmland owned and operated by the
grower-farmer. If farmland is jointly owned, each person
holding an amount of ownership interest or control over the
farmland, including a natural person, partnership,
corporation, association, trust or other such entity or
combination thereof, shall be subject to section 602.
(2) The department, in consultation with the Department
of Agriculture, shall adopt and promulgate regulations to
govern the use of farmland to grow medical marijuana in
accordance with the requirements of this act.
Section 7. Section 703 introductory paragraph and (9) of the
act are amended to read:
Section 703. Storage and transportation.
The department shall develop regulations relating to the
storage and transportation of medical marijuana among
grower/processors and farmer-growers, testing laboratories and
dispensaries which ensure adequate security to guard against in-
transit losses. The tracking system developed by the department
shall include all transportation and storage of medical
marijuana. The regulations shall provide for the following:
* * *
(9) Transporting medical marijuana to a grower/processor
or farmer-grower, approved laboratory or dispensary.
Section 8. Sections 704, 801(a) and (e), 802(a), 901(a) and
(f), 1201(j)(5)(iv), 2002(b)(8), 2107 and 2109(a) of the act are
amended to read:
Amend Bill, page 8, by inserting between lines 28 and 29
Section 901. Tax on medical marijuana.
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(a) Tax imposed.--A tax is imposed on the gross receipts of
a grower/processor received from the sale of medical marijuana
by a grower/processor to a dispensary, to be paid by the
grower/processor, at the rate of 5%[.], unless the medical
marijuana was purchased from a farmer-grower, in which case the
tax imposed on the gross receipts shall be at a rate of 1%. The
tax shall be charged against and be paid by the grower/processor
and shall not be added as a separate charge or line item on any
sales slip, invoice, receipt or other statement or memorandum of
the price paid by a dispensary, patient or caregiver.
* * *
(f) Information.--A grower/processor or farmer-grower that
sells medical marijuana shall provide to the Department of
Revenue information required by the department.
Section 1201. Advisory board.
* * *
(j) Duties.--The advisory board shall have the following
duties:
* * *
(5) The written report under paragraph (4) shall include
recommendations and findings as to the following:
* * *
(iv) Whether to change, add or reduce the number of
growers/processors, farmer-growers or dispensaries.
* * *
Section 2002. Clinical registrants.
* * *
(b) Requirements.--The following shall apply to clinical
registrants:
* * *
(8) A grower/processor facility owned by a clinical
registrant may sell its medical marijuana products only to
the clinical registrant's dispensary facilities and the
dispensary facilities of other clinical registrants. The
facility may sell seeds, medical marijuana plants and medical
marijuana products to, or exchange seeds, medical marijuana
plants and medical marijuana products with, any other
grower/processor facility or farmer-grower holding a permit
under Chapter 6 or this chapter.
* * *
Section 2107. Zoning.
The following apply:
(1) A grower/processor shall meet the same municipal
zoning and land use requirements as other manufacturing,
processing and production facilities that are located in the
same zoning district.
(1.1) A farmer-grower shall meet the same municipal
zoning and land use requirements as other normal agricultural
operations that are located in the same zoning district.
(2) A dispensary shall meet the same municipal zoning
and land use requirements as other commercial facilities that
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are located in the same zoning district.
Amend Bill, page 9, line 6, by striking out "3" and inserting
9
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See A01132 in
the context
of HB1024