S0773B1191A02914 NES:EJH 11/13/23 #90 A02914
AMENDMENTS TO SENATE BILL NO. 773
Sponsor: REPRESENTATIVE HARKINS
Printer's No. 1191
Amend Bill, page 1, lines 1 through 21, by striking out all
of lines 1 through 20 and "definitions." in line 21 and
inserting
Amend Bill, page 1, line 21, by inserting before "
The"
Amending the act of April 17, 2016 (P.L.84, No.16), entitled "An
act establishing a medical marijuana program; providing for
patient and caregiver certification and for medical marijuana
organization registration; imposing duties on the Department
of Health; providing for a tax on medical marijuana
organization gross receipts; establishing the Medical
Marijuana Program Fund; establishing the Medical Marijuana
Advisory Board; establishing a medical marijuana research
program; imposing duties on the Department of Corrections,
the Department of Education and the Department of Human
Services; and providing for academic clinical research
centers and for penalties and enforcement," in preliminary
provisions, further providing for definitions; in medical
marijuana organizations, further providing for application
and issuance, for limitations on permits and providing for
additional dispensary and grower/processor permits
authorized, for application and issuance of additional
permits and for limitations on other additional permits or
licenses; and, in academic clinical research centers and
clinical registrants, further providing for definitions.
Amend Bill, page 1, lines 24 through 26; pages 2 through 14,
lines 1 through 30; page 15, lines 1 through 19; by striking out
all of said lines on said pages
Amend Bill, page 15, by inserting after line 19
Section 1. Section 103 of the act of April 17, 2016 (P.L.84,
No.16), known as the Medical Marijuana Act, is amended by adding
2023/90NES/SB0773A02914 - 1 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
definitions to read:
Section 103. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Change of control transaction." The consolidation, merger
or acquisition by a person or group of persons acting in concert
of more than 20% of:
(1) a medical marijuana organization's securities or
other ownership interests, with the exception of any
ownership interest of the person that existed:
(i) at the time of the issuance of the initial
medical marijuana organization's permit and payment of
the initial permit; or
(ii) prior to the effective date of this
subparagraph; or
(2) the securities or other ownership interests of a
corporation or other form of business entity which owns
directly or indirectly 20% of the securities or other
ownership interests of the medical marijuana organization.
* * *
"Diverse group." The term shall mean the same as under
section 615(d).
* * *
"Independent dispensary." A dispensary issued a permit to
operate in this Commonwealth and that meets all of the
following:
(1) Has not had the dispensary's permit revoked.
(2) Has not entered into a change of control transaction
with any other person that was issued a grower/processor
permit, dispensary permit or clinical registrant permit in
this Commonwealth.
(3) Is not materially the same as another medical
marijuana organization in this Commonwealth through a parent
company, subsidiary or shared affiliation with another entity
that holds a permit from the department under this act or
through the sharing of principals, officers or directors,
employees, facilities, equipment, finances or capital.
"Independent grower/processor." A grower/processor awarded a
permit to operate in this Commonwealth that meets all of the
following criteria as of the effective date of this definition:
(1) Has not had its permit revoked .
(2) Has not entered into a change of control transaction
with any other person that was issued a grower/processor
permit, dispensary permit or clinical registrant permit in
this Commonwealth.
(3) Is not materially the same as another medical
marijuana organization in this Commonwealth through a parent
company or subsidiary of another entity that holds a permit
from the department under this act or through the sharing of
2023/90NES/SB0773A02914 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
principals, officers or directors, employees, facilities,
equipment, finances or capital.
* * *
"Materially the same." A person who shares any of the
following with another person:
(1) Profits or losses.
(2) Common valuation, in the case of a publicly traded
company.
(3) Common ownership of more than 5%, including
subsidiaries.
(4) Common ownership of 5% or less if the persons with
voting rights to elect or appoint one or more members of the
board of directors or other governing board.
(5) Common management, policies, principals, officers,
directors, employees, equipment, finances or capital.
* * *
"Parent company." A company which directly or indirectly
controls any other permittee under this act.
* * *
"Person." A natural person, corporation, foundation,
organization, business trust, estate, limited liability company,
licensed corporation, trust, partnership, limited liability
partnership, association or other form of legal business entity.
* * *
Section 2. Sections 606(a)(1) and 616(5) of the act are
amended to read:
Section 606. Application and issuance.
(a) Duty to report.--An applicant to be a grower/processor
or to operate a dispensary is under a continuing duty to:
(1) Report to the department any change in facts or
circumstances reflected in the application or any newly
discovered or occurring fact or circumstance which is
required to be included in the application, including a
change in control or change of control transaction of the
medical marijuana organization.
* * *
Section 616. Limitations on permits.
The following limitations apply to approval of permits for
grower/processors and dispensaries:
* * *
(5) [No] Except as provided under section 617, no more
than five grower/processors may be issued permits as
dispensaries. [If the number of growers/processors is
increased under section 1202, no more than 20% of the total
number of growers/processors may also be issued permits as
dispensaries.]
* * *
Section 3. The act is amended by adding sections to read:
Section 617. Additional dispensary and grower/processor permits
authorized.
(a) Authorization.--
2023/90NES/SB0773A02914 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
(1) An independent grower/processor that applies and
meets the requirements under section 618 shall be issued one
dispensary permit.
(2) An independent dispensary that applies and meets the
requirements under section 618 shall be issued one
grower/processor permit.
(b) Rights and privileges.--The permits issued under this
section shall carry the same rights, privileges and obligations
as permits issued under this chapter.
(c) Suspension or revocation prohibited.--The department may
not suspend or revoke the permit of an entity that receives a
permit under this section due to the entity entering into a
change of control transaction with any person at least one year
after the holder of the dispensary permit becomes operational in
this Commonwealth. Nothing in this section shall prohibit the
department from taking action for a violation of section 618(a)
(4).
(d) Permit for clinical registrant.--Notwithstanding
subsection (c) or section 619, an independent grower/processor
or independent dispensary that applies for a permit to convert
to a clinical registrant under section 2002 shall surrender a
grower/processor permit or dispensary permit, or both,
previously issued to the independent grower/processor or
independent dispensary.
Section 618. Application and issuance of additional permits.
(a) Applications.--
(1) The department shall develop a standard application
form and open applications for permits authorized under
section 617 within 30 days of the effective date of this
paragraph.
(2) Applicants under this section shall submit
applications for permits authorized under section 617.
(3) The department shall review applications for permits
authorized under section 617 within 45 days of receipt of an
application under paragraph (1) from an eligible independent
grower/processor or independent dispensary.
(4) An application for a permit authorized under section
617 shall require:
(i) Supporting documentation and certification to
the department that the applicant qualifies as an
independent grower/processor or independent dispensary.
(ii) Certification to the department that the
applicant will not enter into a change of control
transaction with any other person for a duration of one
year from the date the first dispensary location or
grower/processor location is deemed operational by the
department, unless the change of control transaction
occurs after the holder of the permit becomes operational
and is between the applicant and a diverse group.
(iii) Any information required under section 602
that has significantly changed since the applicant
2023/90NES/SB0773A02914 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
received an initial permit.
(b) Issuance.--
(1) Except as provided under paragraph (3), the
department shall issue permits under section 617 within 60
days of the application submission deadline under subsection
(a)(2) to all applicants that meet the minimum requirements
for permitting under this chapter. The department shall
notify an applicant for permits authorized under section 617
of the approval of an application by certified mail or email.
(2) If an application under this section is incomplete,
the following apply:
(i) The department shall, within 15 days of
reviewing the application, notify the applicant by
certified mail or email of the missing application
materials.
(ii) An applicant shall have 15 days from when the
notice is received under this paragraph to provide
missing materials to the department.
(iii) An applicant's failure to complete the
application by the deadline under subparagraph (ii) shall
be grounds for denial of a permit.
(3) If an application under this section is complete but
does not meet the minimum criteria for a permit, the
department shall notify the applicant by certified mail or
email of the deficiencies in the application and the
following apply:
(i) An applicant shall have 30 days from the date
the notice is received under this paragraph to provide
supplemental application materials to the department.
(ii) An applicant's failure to provide the
supplemental application materials to the department by
the deadline will be grounds for denial of the issuance
of a permit.
(iii) An applicant's failure to meet the minimum
criteria for a permit after providing supplemental
application materials to the department shall be grounds
for denial of the issuance of a permit.
(iv) The department may use up to 30 additional days
to issue dispensary permits to applicants that meet the
minimum criteria for a permit after providing
supplemental application materials to the department.
(4) If the department denies an application for a
dispensary permit authorized under section 617, the
department shall notify the applicant of the denial by
certified mail or email. The notice shall include each
deficiency in the application that does not meet the minimum
criteria to be issued a dispensary permit.
(5) If an independent grower/processor or independent
dispensary receives a denial under paragraph (4), the
independent grower/processor or independent dispensary may
reapply for a permit authorized under section 617 30 days
2023/90NES/SB0773A02914 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
after receiving notice of a denial.
(6) Appeals to the issuance or denials of dispensary
permits under this section must be responded to by the
department within 45 days of submittal.
(7) An independent grower/processor or independent
dispensary issued a permit under section 617 shall notify the
department when the independent grower/processor or
independent dispensary location is operational.
(8) Upon notification under paragraph (7), the
department shall schedule an inspection to determine if the
medical marijuana organization facility is operational to the
satisfaction of the department. Nothing in this section shall
prohibit the department from determining that the inspected
location fails to be operational.
(c) Fees.--
(1) An independent grower/processor applying for a
dispensary permit shall pay :
(i) An ini tial application fee in the amount of
$5,000. The fee is nonrefundable.
(ii) A permit fee of $30,000 for each dispensary
location. The period of the permit shall be one year. An
applicant shall submit the permit fee at the time of
submission of the application. The fee shall be returned
if the application is not granted.
(iii) A renewal fee for the permit as a dispensary
in the amount of $5,000. The fee shall be returned if the
renewal is not granted and shall cover renewal for all
locations. 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.
(iv) A fee of $250 when amending the application to
indicate relocation within this Commonwealth or the
addition or deletion of approved activities by the
medical marijuana organization.
(2) An independent dispensary applying for a
grower/processor permit shall pay:
(i) An initial application fee in the amount of
$10,000. The fee is nonrefundable.
(ii) A permit fee of $200,000. The period of the
permit is one year. An applicant shall submit the permit
fee at the time of submission of the application. The fee
shall be returned if the application is not granted.
(iii) A renewal fee for the permit as a
grower/processor in the amount of $10,000. The fee shall
cover the renewal for all locations. The renewal fee
shall be returned if the renewal is not granted. An
application to review a permit must be filed with the
department not more than six months nor less than four
months prior to expiration.
(iv) A fee of $250 when amending the application to
indicate relocation within this Commonwealth or the
2023/90NES/SB0773A02914 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
addition or deletion of approved activities by the
medical marijuana organization.
(3) All fees under this subsection shall be paid by
certified check or money order.
(4) Fees payable under this subsection shall be
deposited into the fund.
(d) Regions.--An independent grower/processor may apply for
a dispensary permit under this section in any region established
under section 603(d).
(e) Certification violation.--If an independent
grower/processor or independent dispensary enters into a change
of control transaction with another entity in violation of this
act, the contract or agreement executed with the other entity
for the change of control transaction shall be void, unless the
change of control transaction occurs at least one year after the
permittee becomes operational or the merger is between a permit
holder and a diverse group.
Section 619. Limitations on other additional permits or
licenses.
Notwithstanding the provisions of section 617 or 618, nothing
in section 617 or 618 shall be construed to limit an entity that
qualifies as an independent grower/processor or independent
dispensary from applying for and receiving additional permits or
licenses under any other provisions of this act upon the release
of additional permits or licenses by the department or the
Commonwealth.
Section 4. Section 2001 of the act is amended by adding a
definition to read:
Section 2001. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Accredited medical school." An institution located within
this Commonwealth that is accredited by the Liaison Committee of
Medical Education or the Commission on Osteopathic College
Accreditation or has gained pre-accreditation or provisional
accreditation so that the institution is authorized to enroll
students and is affiliated with an accredited institution of
higher education located within this Commonwealth.
* * *
Section 5. This act shall take effect in 120 days.
2023/90NES/SB0773A02914 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
See A02914 in
the context
of SB0773