1Providing for personal use of marijuana, for lawful operation of
2marijuana-related facilities, for general powers of the
3board, for regulation of marijuana and for employers, minors
4and control of property; and making related repeals.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Short title.

8This act shall be known and may be cited as the Regulate
9Marijuana Act.

10Section 2. Purpose, findings and declarations.

11(a) Findings and declarations.--In the interest of the
12efficient use of law enforcement resources, enhancing revenue
13for public purposes and individual freedom, the people of this
14Commonwealth find and declare that the use of marijuana should
15be legal for persons 21 years of age or older and taxed.

16(b) Additional findings and declarations.--In the interest
17of the health and public safety of our citizenry, the people of
18this Commonwealth further find and declare that marijuana should
19be regulated in a manner similar to alcohol so that:

1(1) individuals will have to show proof of age before
2purchasing marijuana;

3(2) selling, distributing or transferring marijuana to
4minors and other individuals under the age of 21 shall remain
5illegal;

6(3) driving under the influence of marijuana shall
7remain illegal;

8(4) legitimate, State-operated stores, and not criminal
9actors, will conduct sales of marijuana; and

10(5) marijuana sold in this Commonwealth will be labeled
11and subject to additional regulations to ensure that
12consumers are informed and protected.

13(c) Industrial hemp.--In the interest of enacting rational
14policies for the treatment of all variations of the cannabis
15plant, the people of this Commonwealth further find and declare
16that industrial hemp should be regulated separately from strains
17of cannabis with higher delta-9 tetrahydrocannabinol (THC)
18concentrations.

19(d) Matters of Statewide concern.--The people of this
20Commonwealth further find and declare that it is necessary to
21ensure consistency and fairness in the application of this
22section throughout this Commonwealth and that, therefore, the
23matters addressed by this act are, except as specified herein,
24matters of Statewide concern.

25Section 3. Definitions.

26The following words and phrases when used in this act shall
27have the meanings given to them in this section unless the
28context clearly indicates otherwise:

29"Board." The Pennsylvania Liquor Control Board.

30"Consumer." A person 21 years of age or older who purchases

1marijuana or marijuana products for personal use by persons 21
2years of age or older, but not for resale to others.

3"Industrial hemp." The plant of the genus cannabis and any
4part of such plant, whether growing or not, with a delta-9
5tetrahydrocannabinol concentration that does not exceed .03% on
6a dry weight basis.

7"Locality." A county, municipality or city.

8"Marijuana." The parts of the plant of the genus cannabis
9whether growing or not, the seeds thereof, the resin extracted
10from any part of the plant, and every compound, manufacture,
11salt, derivative, mixture or preparation of the plant, its seeds
12or resin, including marihuana concentrate. The term does not
13include industrial hemp and does not include fiber produced from
14the stalks, oil or cake made from the seeds of the plant,
15sterilized seed of the plant that is incapable of germination or
16the weight of another ingredient combined with marijuana to
17prepare topical or oral administrations, food, drink or other
18product.

19"Marijuana accessories." Equipment, products or materials
20that are used, intended or designed for use in planting,
21propagating, cultivating, growing, harvesting, composting,
22manufacturing, compounding, converting, producing, processing,
23preparing, testing, analyzing, packaging, repackaging, storing,
24vaporizing or containing marijuana or for ingesting, inhaling or
25otherwise introducing marijuana into the human body.

26"Marijuana cultivation facility." An entity licensed to
27cultivate, prepare and package marijuana and sell marijuana to a
28retail marijuana store, marijuana product manufacturing facility
29and other marijuana cultivation facility, but not consumers.

30"Marijuana establishment." A marijuana cultivation facility,

1a marijuana testing facility, a marijuana product manufacturing
2facility.

3"Marijuana product." A concentrated marijuana product and a
4marijuana product that is comprised of marijuana and other
5ingredients and is intended for use or consumption as, but not
6limited to, an edible product, ointment or tincture.

7"Marijuana product manufacturing facility." An entity
8licensed to:

9(1) purchase marijuana;

10(2) manufacture, prepare and package marijuana products;
11and

12(3) sell marijuana and marijuana products to other
13marijuana product manufacturing facilities and retail
14marijuana stores, but not consumers.

15"Marijuana testing facility." An entity licensed to analyze
16and certify the safety and potency of marijuana.

17"Retail marijuana store." A retail establishment run by the
18Pennsylvania Liquor Control Board as provided under section 6.

19Section 4. Personal use of marijuana.

20Notwithstanding any other provision of law, the following
21acts are not unlawful and are not an offense under Pennsylvania
22law or the law of a locality within this Commonwealth or a basis
23for seizure or forfeiture of an asset under Pennsylvania law for
24a person 21 years of age or older:

25(1) Possessing, using, displaying, purchasing or
26transporting marijuana accessories or marijuana.

27(2) Possessing, growing, processing or transporting no
28more than six marijuana plants, with three or fewer being
29mature, flowering plants, and possession of the marijuana
30produced by the plants on the premises where the plants were

1grown, provided that the growing takes place in an enclosed,
2locked space, is not conducted openly or publicly, and is not
3made available for sale.

4(3) Transfer of one ounce or less of marijuana without
5remuneration to a person who is 21 years of age or older.

6(4) Consumption of marijuana, provided that nothing in
7this section shall permit consumption that is conducted
8openly and publicly or in a manner that endangers others.

9(5) Assisting another person who is 21 years of age or
10older in an act described in paragraph (1), (2), (3) or (4).

11Section 5. Lawful operation of marijuana-related facilities.

12Notwithstanding any other provision of law, the following
13acts are not unlawful and are not an offense under Pennsylvania
14law or a basis for seizure or forfeiture of an asset under
15Pennsylvania law for a person 21 years of age or older:

16(1) Manufacture, possession or purchase of a marijuana
17accessory or the sale of a marijuana accessory to a person
18who is 21 years of age or older.

19(2) (i) possessing, displaying or transporting
20marijuana or a marijuana product;

21(ii) purchase of marijuana from a marijuana
22cultivation facility;

23(iii) purchase of marijuana or a marijuana product
24from a marijuana product manufacturing facility; or

25(iv) sale of marijuana or a marijuana product to a
26consumer, if the person conducting the activity described
27in this paragraph is acting in his capacity as an
28employee or agent of a retail marijuana store or the
29board.

30(3) (i) cultivating, harvesting, processing, packaging,

1transporting, displaying or possessing marijuana;

2(ii) delivery or transfer of marijuana to a
3marijuana testing facility;

4(iii) selling marijuana to a marijuana cultivation
5facility, a marijuana product manufacturing facility or a
6retail marijuana store; or

7(iv) the purchase of marijuana from a marijuana
8cultivation facility, if the person conducting the
9activity described in this paragraph has obtained a
10current, valid license to operate a marijuana cultivation
11facility or is acting in his or her capacity as an owner,
12employee or agent of a licensed marijuana cultivation
13facility.

14(4) (i) packaging, processing, transporting,
15manufacturing, displaying or possessing marijuana or
16marijuana products;

17(ii) delivery or transfer of marijuana or a
18marijuana product to a marijuana testing facility;

19(iii) selling marijuana or a marijuana product to a
20retail marijuana store or a marijuana product
21manufacturing facility;

22(iv) the purchase of marijuana from a marijuana
23cultivation facility; or

24(v) the purchase of marijuana or a marijuana product
25from a marijuana product manufacturing facility, if the
26person conducting the activities described in this
27paragraph has obtained a current, valid license to
28operate a marijuana product manufacturing facility or is
29acting in his capacity as an owner, employee or agent of
30a licensed marijuana product manufacturing facility.

1(5) Possessing, cultivating, processing, repackaging,
2storing, transporting, displaying, transferring or delivering
3marijuana or marijuana products if the person has obtained a
4current, valid license to operate a marijuana testing
5facility or is acting in his capacity as an owner, employee
6or agent of a licensed marijuana testing facility.

7(6) Leasing or otherwise allowing the use of property
8owned, occupied or controlled by a person, corporation or
9other entity for any of the activities conducted lawfully in
10accordance with paragraph (1), (2), (3), (4) or (5).

11Section 6. General powers of the board.

12In addition to sections 207 and 208 of the act of April 12,
131951 (P.L.90, No.21), known as the Liquor Code, the board has
14the following powers and duties:

15(1) To buy, import or have in its possession for sale
16and sell marijuana and marijuana products in the manner set
17forth in this act provided the purchases are made subject to
18the approval of the State Treasurer or the State Treasurer's
19designated deputy. The board shall buy marijuana and
20marijuana products at the lowest price and in the greatest
21variety reasonably obtainable.

22(2) To control the manufacture, possession, sale,
23consumption, importation, use, storage, transportation and
24delivery of marijuana and marijuana products in accordance
25with the provisions of this act and to fix the wholesale and
26retail prices at which marijuana and marijuana products will
27be sold at retail marijuana stores. Prices must be
28proportional with prices paid by the board to its suppliers
29and reflect any advantage obtained through volume purchases
30by the board. The board may establish a preferential price

1structure for marijuana produced within this Commonwealth for
2the promotion of the marijuana. The board shall require both
3a Pennsylvania marijuana product manufacturing facility and
4nonresident manufacturer of marijuana that sells marijuana to
5the board that is not manufactured in this Commonwealth to
6make application for and be granted a permit by the board
7before the marijuana is purchased from either manufacturer. A
8marijuana product manufacturing facility shall pay a fee for
9the permit which, in the case of a manufacturer of this
10Commonwealth, must be equal to that required to be paid, if
11any, by a manufacturer or wholesaler of the state, territory
12or country of origin of the marijuana, for selling marijuana
13manufactured in Pennsylvania, and in the case of a
14nonresident marijuana product manufacturing facility, must be
15equal to that required to be paid, if any, in the state,
16territory or country by a Pennsylvania marijuana product
17manufacturing facility doing business in the state, territory
18or country. If, in the opinion of the board, the marijuana
19product manufacturing facility sells or attempts to sell
20marijuana to the board through another person for the purpose
21of evading the provision relating to permits, the board shall
22require the person, before purchasing marijuana from him or
23it, to take out a permit and pay the same fee required to be
24paid by the marijuana product manufacturing facility. The
25permit fee collected must be paid into the State Stores Fund.
26The board may not purchase marijuana or a marijuana product
27that is produced in a state, territory or country prohibiting
28the importation of marijuana or a marijuana product that is
29produced in this Commonwealth.

30(3) To determine the municipalities within which retail

1marijuana stores shall be established and the locations of
2the stores within the municipalities.

3(4) To grant and issue the licenses and to grant, issue,
4suspend and revoke the permits authorized to be issued under
5this act.

6(5) Through the Department of General Services as its
7agent, to lease and furnish and equip buildings, rooms and
8other accommodations as required for the operation of this
9act.

10(6) To appoint, fix the compensation and define the
11powers and duties of the managers, officers, inspectors,
12examiners, clerks and other employees as required for the
13operation of this act, subject to the provisions of the act
14of April 9, 1929 (P.L.177, No.175), known as The
15Administrative Code of 1929, and act of August 5, 1941
16(P.L.752, No.286), known as the Civil Service Act.

17(7) To determine the nature, form and capacity of the
18packages and original containers to be used for containing
19marijuana and marijuana products.

20(8) Without limiting or being limited by the foregoing,
21to do the things and perform the acts as are deemed necessary
22or advisable for the purpose of carrying into effect the
23provisions of this act and the regulations made under this
24act.

25(9) From time to time, to make regulations that are
26consistent with this act as it may deem necessary for the
27efficient administration of this act. The board shall cause
28the regulations to be published and disseminated throughout
29this Commonwealth in the manner it deems necessary and
30advisable or as may be provided by law. A regulation adopted

1by the board has the same force as if it formed a part of
2this act.

3(10) By regulation, to provide for the use of a
4computerized referral system to assist consumers in locating
5special items at retail marijuana stores and for the use of
6electronic transfer of funds and credit cards for the
7purchase of marijuana and a marijuana product at a retail
8marijuana store.

9(11) To issue grants to various entities for marijuana
10education and prevention efforts.

11Section 7. Regulation of marijuana.

12(a) Regulations.--Not later than July 1, 2014, the board
13shall adopt regulations necessary for implementation of this
14section. The regulations may not prohibit the operation of a
15marijuana establishment, either expressly or through a
16regulation that makes its operation unreasonably impracticable.
17The regulations must include:

18(1) procedures for the issuance, renewal, suspension and
19revocation of a license to operate a marijuana establishment;

20(2) a schedule of application, licensing and renewal
21fees, provided that an application fee may not exceed $5,000
22with the upper limit adjusted annually for inflation, unless
23the board determines a greater fee is necessary to carry out
24its responsibilities under this section.

25(3) qualifications for licensure that are directly and
26demonstrably related to the operation of a marijuana
27establishment;

28(4) security requirements for a marijuana establishment;

29(5) requirements to prevent the sale or diversion of
30marijuana and a marijuana product to a person under the age

1of 21;

2(6) labeling requirements for marijuana and a marijuana
3product sold or distributed by a marijuana establishment;

4(7) health and safety regulations and standards for the
5manufacture of a marijuana product and the cultivation of
6marijuana;

7(8) restrictions on the advertising and display of
8marijuana and a marijuana product; and

9(9) civil penalties for the failure to comply with
10regulations made under this section.

11(b) Individual privacy.--In order to ensure that individual
12privacy is protected, notwithstanding subsection (a), the board
13may not require a consumer to provide a retail marijuana store
14with personal information other than government-issued
15identification to determine the consumer's age, and a retail
16marijuana store may not be required to acquire and record
17personal information about a consumer other than information
18typically acquired in a financial transaction conducted at a
19retail liquor store.

20(c) Excise tax.--The General Assembly shall:

21(1) enact an excise tax to be levied upon marijuana sold
22or otherwise transferred by a marijuana cultivation facility
23to a marijuana product manufacturing facility or to a retail
24marijuana store; and

25(2) direct the Department of Revenue to establish
26procedures for the collection of the tax levied.

27(d) Locality.--A locality shall enact an ordinance or
28regulation:

29(1) specifying the entity within the locality that is
30responsible for processing applications submitted for a

1license to operate a marijuana establishment within the
2boundaries of the locality; and

3(2) for the issuance of the licenses should the issuance
4by the locality become necessary because of:

5(i) a failure by the board to adopt regulations
6under subsection (a); or

7(ii) a failure by the board to process and issue
8licenses as required by subsection (f).

9(e) Ordinance or regulation.--A locality may enact an
10ordinance or regulation, not in conflict with this section or
11with a regulation or legislation enacted under this section:

12(1) governing the time, place, manner and number of
13marijuana establishment operations;

14(2) establishing procedures for the issuance, suspension
15and revocation of a license issued by the locality;

16(3) establishing a schedule of annual operating,
17licensing and application fees for marijuana establishments,
18provided, the application fee is only due if an application
19is submitted to a locality and a licensing fee is only due if
20a license is issued by a locality; and

21(4) establishing civil penalties for violation of an
22ordinance or regulation governing the time, place and manner
23of a marijuana establishment that may operate in the
24locality.

25(f) License application.--Each application for an annual
26license to operate a marijuana establishment must be submitted
27to the board. The board shall:

28(1) begin accepting and processing applications on
29October 1, 2014;

30(2) immediately forward a copy of each application and

1half of the license application fee to the locality in which
2the applicant desires to operate the marijuana establishment;

3(3) issue an annual license to the applicant between 45
4and 90 days after receipt of an application unless the board
5finds the applicant is not in compliance with regulations
6enacted under subsection (a) or the board is notified by the
7relevant locality that the applicant is not in compliance
8with ordinances and regulations in effect at the time of
9application, provided, where a locality enacted a numerical
10limit on the number of marijuana establishments and a greater
11number of applicants seek licenses, the board shall solicit
12and consider input from the locality as to the locality's
13preference or preferences for licensure; and

14(4) upon denial of an application, notify the applicant
15in writing of the specific reason for its denial.

16(g) Resubmission of application to locality.--If the board
17does not issue a license to an applicant within 90 days of
18receipt of the application filed and does not notify the
19applicant of the specific reason for its denial, in writing and
20within the time period, the applicant may resubmit its
21application directly to the locality, and the locality may issue
22an annual license to the applicant. A locality issuing a license
23to an applicant shall do so within 90 days of receipt of the
24resubmitted application unless the locality finds and notifies
25the applicant that the applicant is not in compliance with
26ordinances and regulations in effect at the time the application
27is resubmitted and the locality shall notify the board if an
28annual license has been issued to the applicant. If an
29application is submitted to a locality under this subsection,
30the board shall forward to the locality the application fee paid

1by the applicant to the board upon request by the locality. A
2license issued by a locality in accordance with this subsection
3has the same force and effect as a license issued by the board
4and the holder of the license is not subject to regulation or
5enforcement by the board during the term of that license. A
6subsequent or renewed license may be issued under this
7subsection on an annual basis only upon resubmission to the
8locality of a new application submitted to the board. This
9subsection does not limit the relief as may be available to an
10aggrieved party.

11Section 8. Employers, minors and control of property.

12(a) Employers.--This section is not intended to require an
13employer to permit or accommodate the use, consumption,
14possession, transfer, display, transportation, sale or growing
15of marijuana in the workplace or to affect the ability of
16employers to have policies restricting the use of marijuana by
17employees in the workplace. Given that marijuana remains
18detectable in blood tests for up to 30 days, however, a random
19drug test showing the mere presence of a nonintoxicating level
20of marijuana may not be the basis of the termination of
21employment or another disciplinary action against the employee.

22(b) Persons and other entities.--This act does not prohibit
23a person, employer, school, hospital, detention facility,
24corporation or another entity who occupies, owns or controls a
25property from prohibiting or otherwise regulating the
26possession, consumption, use, display, transfer, distribution,
27sale, transportation or growing of marijuana on or in the
28property.

29Section 19. Repeals.

30Repeals are as follows:

1(1) Section 4(1)(iii)16 and (iv) of the act of April 14,
21972 (P.L.233, No.64), known as The Controlled Substance,
3Drug, Device and Cosmetic Act, are repealed.

4(2) Section 13(a)(30) and (31) of The Controlled
5Substance, Drug, Device and Cosmetic Act are repealed insofar
6as they are inconsistent with this act.

7(3) All acts and parts of acts are repealed insofar as
8they are inconsistent with this act.

9Section 20. Effective date.

10This act shall take effect in 30 days.