Regular Session 2023-2024 House Bill 1942 P.N. 2476

PRINTER'S NO. 2476

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1942

Session of

2024

INTRODUCED BY MADSEN, HILL-EVANS, SANCHEZ, MADDEN, BULLOCK,

CEPEDA-FREYTIZ, KHAN, KRAJEWSKI, NEILSON, CERRATO,

SCHLOSSBERG, MAYES, DONAHUE, KAZEEM, GERGELY, McNEILL,

FLEMING, WAXMAN AND OTTEN, JANUARY 3, 2024

REFERRED TO COMMITTEE ON HEALTH, JANUARY 3, 2024

AN ACT

Providing for independent local dispensaries.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Independent

Local Dispensaries Act.

Section 2. 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:

"Board." The Medical Marijuana Advisory Board established by

section 1201 of the Medical Marijuana Act.

"Controlling interest." As follows:

(1) For a publicly traded entity, voting rights that

entitle a person to elect or appoint one or more of the

members of the board of directors or other governing board or

the ownership or beneficial holding of 5% or more of the

securities of the publicly traded entity.

(2) For a privately held entity, the ownership of any

security in the company.

"Department." The Department of Health of the Commonwealth.

"Disadvantaged business." A business that is owned or

controlled by a majority of persons, not limited to members of

minority groups, who are subject to racial or ethnic prejudice

or cultural bias.

"Dispensary." As defined in section 103 of the Medical

Marijuana Act.

"Diverse business." A disadvantaged business, minority-owned

or women-owned business or service-disabled veteran-owned or

veteran-owned small business that has been certified by a third-

party certifying organization.

"Financial backer." An investor, mortgagee, bondholder, note

holder or other source of equity, capital or other assets, other

than a financial institution.

"Grower/processor." As defined in section 103 of the Medical

Marijuana Act.

"Independent local dispensary." An organization that meets

the conditions under section 3(a) and holds a dispensary license

under the Medical Marijuana Act.

"Medical marijuana." Marijuana certified for medical use as

provided for under the Medical Marijuana Act.

"Medical Marijuana Act." The act of April 17, 2016 (P.L.84,

No.16), known as the Medical Marijuana Act.

"Medical marijuana organization." As defined in section 103

of the Medical Marijuana Act.

"Parent entity." An entity which owns or has a controlling

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interest in a sister company or subsidiary.

"Patient." As defined in section 103 of the Medical

Marijuana Act.

"Permit." An authorization issued by the department to a

medical marijuana organization to conduct activities under this

act.

"Region." An area of this Commonwealth established by the

department for the purpose of granting permits to

grower/processors and dispensaries and enforcing the Medical

Marijuana Act.

"Sister company." Two or more subsidiaries that are related

to one another by virtue of being owned or controlled by the

same parent company.

"Small business." An independently owned and operated for-

profit business employing 100 or fewer employees and not a

subsidiary or affiliate of a corporation.

"Subsidiary." An entity which is wholly or partially owned

or controlled by a parent entity.

"Underserved area." A geographic area, as defined annually

by the department, where there is a demonstrated patient need

for a dispensary to ensure reasonable access to medical

marijuana products.

Section 3. Independent local dispensaries.

(a) Additional permits.--Notwithstanding the provisions of

section 616 of the Medical Marijuana Act, the department shall

issue two additional dispensary permits in each medical

marijuana region to applicants who meet the qualifications of

section 602 of the Medical Marijuana Act and one of the

following qualifications:

(1) Is a Pennsylvania-based small business with the

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majority of its financial backers being residents of the

region in which the business is seeking a permit.

(2) Is a diverse business or disadvantaged business.

(3) Does not have an owner or financial backer that is

also an owner or financial backer of another medical

marijuana organization.

(b) Additional application information.--In addition to the

application information required of a dispensary application

under the Medical Marijuana Act, applications for a dispensary

permit under this section shall also include a statement that

the applicant possesses the ability to obtain in an expeditious

manner the right to use sufficient land, buildings and other

premises to carry on the activity described in the application

at no less than two locations, one of which must be located in

an underserved area.

section shall be considered independent local dispensaries.

(d) Fees.--Fees shall be in accordance with the following:

(1) The department shall charge the following fees for

an application for a dispensary permit, which shall be valid

for one year, under this section:

(i) A nonrefundable initial application fee of

$2,500.

(ii) A permit fee of $15,000 for each location that

shall be submitted with the application. The fee shall be

returned if the application is not granted.

(iii) A renewal fee of $2,500 that shall be paid

upon submission of a renewal application. The fee shall

be returned if the renewal is not granted. The amount

shall cover renewal for all locations.

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(iv) A fee of $125 that shall be required when

amending an application to indicate relocation within

this Commonwealth or the addition or deletion of approved

activities by the medical marijuana organization.

(2) The following shall apply:

(i) 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.

(ii) All fees shall be paid by certified check or

money order.

(iii) Before issuing an initial permit under this

section, the department shall verify that the applicant

has at least $75,000 in capital, which must be on deposit

with a financial institution.

Section 4. Responsibilities of department.

The department shall annually publish a report that includes

the following information on its publicly accessible Internet

website:

(1) The number of patients in each county.

(2) The number of patients per 100,000 residents in this

Commonwealth.

(3) The number and locations of dispensaries.

Section 5. Underserved areas.

Within 90 days of the effective date of this section and

every February 1 thereafter, the department shall:

(1) Solicit information from the public, medical

marijuana organizations and applicants identifying potential

underserved areas.

(2) Evaluate the information received to determine which

regions of this Commonwealth meet the definition of an

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underserved area.

(3) Publish the location of all underserved areas on the

department's publicly accessible Internet website.

(4) Open applications for available dispensary permits

in the underserved areas under section 3.

Section 6. Additional board members.

Four additional members shall be appointed to the board as

follows:

(1) One member, who shall hold a dispensary permit,

appointed by the President pro tempore of the Senate or a

designee.

(2) One member, who shall be a diverse or disadvantaged

business who holds a dispensary permit, appointed by the

Minority Leader of the Senate or a designee.

(3) One member, who shall be a current grower/processor,

appointed by the Speaker of the House of Representatives or a

designee.

(4) One member, who shall be a financial backer of an

independent local dispensary, appointed by the Minority

Leader of the House of Representatives or a designee.

Section 7. Effective date.

This act shall take effect in 90 days.

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