Regular Session 2015-2016 Senate Bill 0003 P.N. 0224

PRINTER'S NO. 224

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

Session of

2015

INTRODUCED BY FOLMER, LEACH, TEPLITZ, WILEY, BLAKE, FONTANA,

YUDICHAK, SCARNATI, BOSCOLA, YAW, ARGALL, SMITH, COSTA,

FARNESE, WAGNER, BARTOLOTTA, WILLIAMS, TARTAGLIONE,

VULAKOVICH, WHITE, SCHWANK, RAFFERTY, STEFANO, WOZNIAK AND

MCGARRIGLE, JANUARY 26, 2015

REFERRED TO STATE GOVERNMENT, JANUARY 26, 2015

AN ACT

Providing for the medical use of cannabis in the Commonwealth of

Pennsylvania.

TABLE OF CONTENTS

CHAPTER 1. PRELIMINARY PROVISIONS

Section 101. Short title.

Section 102. Definitions.

CHAPTER 3. STATE BOARD OF MEDICAL CANNABIS

LICENSING AND ADMINISTRATIVE PROCEDURE

Section 301. License.

Section 302. State Board of Medical Cannabis Licensing.

Section 303. Powers and duties of board.

Section 304. Subpoena power.

Section 305. Hearing examiners.

Section 306. Civil penalties.

Section 307. Confidentiality.

Section 308. Financing.

CHAPTER 5. LICENSING

Section 501. Medical cannabis growers.

Section 502. Medical cannabis processors.

Section 503. Medical cannabis dispensers.

Section 504. Applications.

Section 505. Licensing of owner or operator.

Section 506. Occupation permit for medical cannabis employees

and certain patient representatives.

Section 507. Change in ownership.

Section 508. Location.

Section 509. Storage and transportation.

Section 510. Disposal and donation.

Section 511. Testing laboratories.

Section 512. Licensee prohibitions.

CHAPTER 7. MEDICAL CANNABIS ACCESS

Section 701. Medical cannabis access card.

Section 702. Expansion of medical conditions.

Section 703. Medical use permitted.

Section 704. Health insurance.

Section 705. Sovereign immunity.

CHAPTER 9. PROTECTION, PROHIBITIONS,

ENFORCEMENT AND PENALTIES

Section 901. Civil discrimination protection.

Section 902. Prohibitions and use.

Section 903. Unlawful activities.

Section 904. Criminal penalties and fines.

CHAPTER 11. MEDICAL CANNABIS SURCHARGE

Section 1101. Definitions.

Section 1102. Incidence and rate of surcharge.

Section 1103. Limitation of surcharge.

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Section 1104. Remittance of surcharge to department.

Section 1105. Procedures for claiming refund.

Section 1106. Sales or possession of medical cannabis when

surcharge not paid.

Section 1107. Assessment.

Section 1108. Failure to file return.

Section 1109. False or fraudulent return.

Section 1110. Extension of limitation period.

Section 1111. Failure to furnish information, returning false

information or failure to permit inspection.

Section 1112. Records of shipments and receipts of medical

cannabis required.

Section 1113. Licensing of medical cannabis purveyors.

Section 1114. License fees and issuance and display of license.

Section 1115. Electronic filing.

Section 1116. Expiration of license.

Section 1117. Administration powers and duties.

Section 1118. Sales without license.

Section 1119. Violations and penalties.

Section 1120. Property rights.

Section 1121. Information exchange.

CHAPTER 51. MISCELLANEOUS PROVISIONS

Section 5101. Regulations.

Section 5102. Appropriations.

Section 5103. Applicability of other statutes.

Section 5104. Repeals.

Section 5105. Effective date.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

CHAPTER 1

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PRELIMINARY PROVISIONS

Section 101. Short title.

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

Cannabis Act.

Section 102. 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:

"Account." The Professional Licensure Augmentation Account

established under and used in accordance with the act of July 1,

1978 (P.L.700, No.124), known as the Bureau of Professional and

Occupational Affairs Fee Act.

"Board." The State Board of Medical Cannabis Licensing.

"Change in control." The acquisition by a person or group of

persons acting in concert of at least 20% of an interest in a

licensed entity.

"Department." The Department of State of the Commonwealth.

"Health care facility." A facility that provides health care

to patients. The term includes:

(1) A hospital, as defined under the act of July 19,

1979 (P.L.130, No.48), known as the Health Care Facilities

Act.

(2) A clinic operated by the hospital.

(3) An ambulatory or surgical facility.

(4) A long-term care nursing facility.

(5) A cancer treatment center.

(6) A hospice care facility.

"Health care practitioner." An individual as defined under

section 2 of the act of December 20, 1985 (P.L.457, No.112),

known as the Medical Practice Act of 1985, who is authorized to

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prescribe Schedule III drugs under the act of April 14, 1972

(P.L.233, No.64), known as The Controlled Substance, Drug,

Device and Cosmetic Act. The term shall not include an

individual licensed under the act of May 1, 1933 (P.L.216,

No.76), known as The Dental Law.

"Medical cannabis." Plants containing cannabidiol,

tetrahydrocannabinol or delta-9-tetrahydrocannabinol acid or any

part of a cannabis plant, including cannabis processed by

extracting oil from the plant, intended for medical purposes.

The term includes extracted oil, edible products, ointments and

tinctures.

"Medical cannabis access card." A document issued by the

Department of Health to authorize a patient or patient

representative to purchase and possess medical cannabis in this

Commonwealth.

"Medical cannabis dispenser." A for-profit or nonprofit

entity licensed under section 503 to dispense medical cannabis.

"Medical cannabis employee." An individual who is eligible

to receive an occupation permit by meeting one of the following:

(1) An individual who meets all of the following:

(i) Is employed by a medical cannabis grower,

medical cannabis processor, medical cannabis dispenser or

certified laboratory with the authority to make a

discretionary decision relating to the growing,

processing, dispensing or testing of medical cannabis,

including a manager, supervisor or an individual who

directly handles or controls cannabis.

(ii) Is responsible for tracking the amount and

transportation of medical cannabis.

(2) Any other employee position designated by the board.

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"Medical cannabis grower." A for-profit or nonprofit entity

licensed under section 501 that grows or cultivates cannabis for

distribution to authorized medical cannabis processors and

medical cannabis dispensers in accordance with this act.

"Medical cannabis processor." A for-profit or nonprofit

entity licensed under section 502 authorized to purchase medical

cannabis from a medical cannabis grower for the purpose of

processing the medical cannabis for distribution to a medical

cannabis dispenser in accordance with this act.

"Medical cannabis strains." The three types of pure cannabis

utilized for medical purposes. The term includes cannabis

sativa, cannabis indica and the hybrid created by the

combination of both cannabis sativa and cannabis indica.

"Medical use." The acquisition, possession or use of medical

cannabis by a registered patient or patient representative. The

term does not include the smoking or vaporization of cannabis.

"Occupation permit." A permit issued by the board

authorizing an individual to be employed as a medical cannabis

employee.

"Owner or operator." Any of the following:

(1) An officer or director of the medical cannabis

grower, processor or dispenser licensed under section 505.

(2) A person who directly holds a beneficial interest in

or has a controlling interest in an applicant or licensee.

(3) A person who has the ability to elect a majority of

the board of directors of a licensee or to otherwise control

a licensee.

"Patient." An individual who has an established

practitioner-patient relationship and has been diagnosed with a

qualified medical condition.

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"Patient representative." Any of the following:

(1) A parent or guardian of a registered patient.

(2) An individual who:

(i) is at least 18 years of age; and

(ii) receives a medical cannabis access card which

authorizes:

(A) purchase, possession, transport and transfer

of medical cannabis from a medical cannabis

dispenser; and

(B) proper administration of the medical

cannabis to a registered patient in accordance with

the recommendation of the registered patient's health

care practitioner.

"Practitioner-patient relationship." The relationship

established between a patient and health care practitioner

following an assessment of the patient's medical history and

current condition and the conduct of a personal examination.

"Qualified medical condition." Any of the following,

including treatment:

(1) Cancer.

(2) Epilepsy and seizures.

(3) Amyotrophic lateral sclerosis.

(4) Cachexia/wasting syndrome.

(5) Parkinson's disease.

(6) Traumatic brain injury and postconcussion syndrome.

(7) Multiple sclerosis.

(8) Spinocerebellara Ataxia (SCA).

(9) Posttraumatic stress disorder.

(10) Severe fibromyalgia.

(11) A condition authorized by the department under

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section 702.

"Testing laboratory." A clinical laboratory or testing

facility located within this Commonwealth, certified by the

board under section 511.

CHAPTER 3

STATE BOARD OF MEDICAL CANNABIS

LICENSING AND ADMINISTRATIVE PROCEDURE

Section 301. License.

(a) Medical cannabis.--A person may not conduct an activity

related to the growing, processing or dispensing of medical

cannabis or operating a testing laboratory unless the person is

licensed or certified by the board under this act.

(b) Employee.--A licensed medical cannabis grower, medical

cannabis processor or a medical cannabis dispenser may not

employ an individual to directly participate in the growing,

processing, delivery or dispensing of medical cannabis unless

the individual receives an occupation permit from the board

under this act.

Section 302. State Board of Medical Cannabis Licensing.

(a) Establishment.--There is hereby established the State

Board of Medical Cannabis Licensing within the department.

(b) Composition.--The board shall consist of the following:

(1) The Secretary of Health or a designee who is an

employee of the Department of Health.

(2) Commissioner of Professional and Occupational

Affairs or a designee who is an employee of the Bureau of

Professional and Occupational Affairs.

(3) The Secretary of Public Welfare or a designee who is

an employee of the Department of Public Welfare.

(4) Two public members.

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(5) One member representing hospitals.

(6) Two members who are medical doctors representing

specialties which utilize medical cannabis to treat patients.

(7) Two members who are registered nurses.

(8) A licensed pharmacist.

confirmation of the members and shall:

(1) Establish procedures to operate the board.

(2) Develop applications and other forms for licensure

and occupation permits and enforcement of this act and

certifications for testing laboratories.

(3) Promulgate regulations, as necessary, to implement

and enforce this act.

(d) Appointment and qualifications.--Each professional and

public member shall be appointed by the Governor with the advice

and consent of a majority of the Senate. Each member must comply

with all of the following:

(1) Be a citizen of the United States and a resident of

this Commonwealth.

(2) Not hold any other public office during the term on

the board.

(e) Terms.--

(1) A member under subsection (b)(1), (2) or (3) shall

serve ex officio.

(2) For a member under subsection (b)(4) through (8),

the following apply:

(i) Initial appointments shall be as follows:

(A) Three members shall serve for a term of four

years.

(B) Three members shall serve for a term of

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three years.

years.

(ii) Each subsequent term shall be for four years or

until a successor has been appointed and qualified, which

may not be longer than six months beyond the four-year

period.

(iii) A member may not serve more than two

consecutive terms.

(f) Quorum.--A majority of the members of the board shall

constitute a quorum. Each member must be physically in

attendance to be counted as part of a quorum or to vote on an

issue. A majority of the members present shall be necessary for

a vote to be considered binding.

(g) Chairperson.--The board shall annually select a

chairperson from the members of the board.

(h) Expenses.--With the exception of ex officio members,

each member of the board shall receive $100 per diem when

attending to the work of the board. A member shall also receive

the amount of reasonable travel, hotel and other necessary

expenses incurred in the performance of the member's duties in

accordance with Commonwealth regulations.

(i) Forfeiture.--A member who fails to attend three

consecutive meetings shall forfeit the member's seat unless the

chairman, upon written request from the member, finds that the

member should be excused because of illness or death of a family

member.

(j) Frequency of meetings.--The board shall meet at least

once per month for the first 12 months, including and after the

initial meeting required by section 302(c). After the first

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12months following the establishment of the board, the board

shall meet at least six times a year and may meet at additional

times as necessary to conduct the business of the board.

Section 303. Powers and duties of board.

The board shall have the following powers and duties:

(1) To provide for and regulate the licensing of the

following:

(i) A medical cannabis grower under section 501.

(ii) A medical cannabis processor under section 502.

(iii) A medical cannabis dispenser under section

503.

(2) To issue occupation permits to medical cannabis

employees.

(3) To issue certifications to testing laboratories

under section 511.

(4) To issue, deny, renew, reinstate or refuse to renew,

suspend and revoke licenses, certifications of testing

laboratories and occupation permits in accordance with this

act.

(5) To implement procedures to allow the expansion of

qualified medical conditions for which a patient may obtain

medical cannabis under section 702.

(6) To administer and enforce the provisions of this

act.

(7) To investigate and conduct background checks for

each application for a license or occupation permit to

determine the fitness and eligibility of a person applying

for a license or occupation permit.

(8) To establish fees for application and renewal of

licenses and occupation permits and the due dates for all

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fees.

(9) To charge for services related to the inspection and

oversight of this act. Billings shall be submitted at least

quarterly and all charges shall be itemized.

(10) To keep minutes and records of each transaction and

proceeding.

(11) To provide standards for the appearance of

dispensers to ensure a professional atmosphere.

(12) To require utilization of any prescription

monitoring program established by the Commonwealth by a

health care practitioner to review a patient's pharmaceutical

history.

(13) To develop a system to ensure medical cannabis

dispensers are able to verify medical cannabis access cards.

(14) To establish a medical cannabis registry to ensure

adequate availability of different strains and concentrations

of medical cannabis.

(15) To develop regular inspection schedules,unannounced

inspections, procedures and other enforcement measures to

regulate all medical cannabis growers, processors and

dispensers.

(16) To inspect, at any time, premises occupied or used

for the production, preparation, testing, packaging,

processing, storage, sale, distribution and transport of

medical cannabis.

(17) To develop standards and requirements for the

implementation, use and maintenance of security systems.

(18) To submit annually to the department an estimate of

financial requirements of the board, including

administrative, legal and other expenses.

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(19) To develop a system for mandatory and voluntary

recall of defective products or medical cannabis.

(20) To develop an inventory tracking system to be used

by all licensees and certified laboratories.

(21) To promulgate regulations to implement this act,

including:

(i) The receipt of medical cannabis for study and

research of the health benefits of medical cannabis by

accredited research institutions, universities and

colleges in this Commonwealth.

(ii) Determination of required quality and safe

clinical strength of medical cannabis.

(iii) Print advertising and marketing of medical

cannabis.

(iv) Containers, tracking and testing.

(v) Packaging and labeling by licensed growers,

licensed processors and licensed dispensers. Regulations

under this subparagraph shall require labeling to

specify:

(A) date of packaging;

(B) use-by date;

package;

(D) warnings related to use, including pregnancy

and medical conditions;

(E) warnings to keep medical cannabis out of

children's reach;

(F) other warnings deemed appropriate by the

board;

(G) recommended dosages;

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(H) appropriate methods to administer medical

cannabis for authorized diseases; and

(22) To provide for the form and content of the

authority given to a registered patient by a health care

provider to obtain medical cannabis.

(23) To consult information published by the American

Herbal Pharmacopeia, in the promulgation of regulations.

(24) To enforce regulations under this act.

(25) To submit an annual report to the Secretary of the

Senate and the Chief Clerk of the House of Representatives.

Section 304. Subpoena power.

The General Counsel of the Commonwealth, or the General

Counsel's designee, shall have the power to issue a subpoena on

behalf of the board in disciplinary and licensing matters before

the board in order to investigate an alleged violation in

accordance with the following:

(1) The power shall not apply to patient records without

order of a court of competent jurisdiction showing that the

records are reasonably necessary for the conduct of an

investigation.

(2) The court may impose limitations on the scope of a

subpoena as necessary to prevent unnecessary intrusion into

patient confidential information.

(3) The attorney representing the Commonwealth in a

disciplinary matter before the board may apply to

Commonwealth Court to enforce the subpoenas.

(4) Nothing in this section shall be construed to excuse

a person from producing documents and records as requested by

the board under any other provision of law.

Section 305. Hearing examiners.

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(a) Appointment.--The Commissioner of Professional and

Occupational Affairs, after consultation with the board, shall

appoint hearing examiners as necessary to conduct hearings in

disciplinary matters before the board.

(b) Regulation.--Regulations promulgated by the board shall

include the procedural rules to be followed by hearing examiners

under this act. Each proceeding shall be conducted in accordance

with 2 Pa.C.S. (relating to administrative law and procedure).

powers:

(1) To conduct hearings.

(2) To issue subpoenas requiring:

(i) The attendance and testimony of individuals.

(ii) The production of pertinent records or other

papers by persons whom the examiner believes have

information relevant to matters pending before the

examiner.

(3) To issue decisions.

Section 306. Civil penalties.

(a) Authorization.--The board shall adopt a schedule of

civil penalties for operating without a current, registered,

unsuspended and unrevoked license, certificate or occupation

permit and for violations of this act. The schedule shall be

published in the Pennsylvania Bulletin.

(b) Imposition.--An agent of the board may issue citations

and impose penalties for a violation of this chapter. A penalty

may be appealed to a hearing examiner or the board pursuant to

regulations promulgated by the board. If the matter is initially

referred to a hearing examiner, the board shall render a

decision on an exception to the decision of the hearing examiner

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or on any applications for review under 2 Pa.C.S. (relating to

administrative law and procedure).

(1) In addition to any other penalty authorized by law,

the board may impose the following sanctions:

(i) Revocation of the license, permit or certificate

of a person convicted of a criminal offense or violation

of this act or regulations of the board which would

disqualify the holder from growing, processing or

dispensing medical cannabis.

(ii) Revocation of the license of a person for

willfully and knowingly violating or attempting to

violate an order of the board directed to the person.

(iii) Revocation of an occupation permit or

certificate of a person for willfully and knowingly

violating or attempting to violate an order of the board

directed to the person.

(iv) Suspension of the license, permit or

certificate of a person pending the outcome of a hearing

in a case in which a license, occupation permit or

certification revocation could result.

(v) Suspension of the license of a licensed grower,

processor or dispenser for a violation or attempt to

violate any provisions of this act.

(vi) Assessment of an administrative penalty as

necessary to address misconduct and deter future

violations.

(vii) Ordering of restitution of funds or property

unlawfully obtained or retained by a licensee.

(viii) Entrance of a cease and desist order which

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specifies the conduct which is to be discontinued,

altered or implemented by the licensee.

(2) If the board refuses to issue or renew a license,

certificate or occupation permit or imposes a penalty under

paragraph (1), the board shall provide the applicant,

licensee, certificate holder or permit holder with written

notification of the decision, including a statement of the

reasons for the decision by certified mail within five

business days of the decision of the board. The applicant,

licensee, certificate holder or permittee shall have the

right to appeal the decision in accordance with 2 Pa.C.S.

Chs. 5 (relating to practice and procedure) and 7 (relating

to judicial review).

(3) A person who aids, abets, counsels, induces,

procures or causes another person to violate this act shall

be subject to all sanctions and penalties provided under this

subsection.

(d) Additional powers.--In addition to the penalties under

subsections (b) and (c), the board shall have the power to do

the following:

(1) Levy a civil penalty of not more than $25,000 for a

violation of this act.

(2) Impose a civil penalty of up to $15,000 per

violation if a person aids and abets the unlicensed growing,

processing, distribution or dispensing of medical cannabis.

The penalty may not be levied against a person solely as a

consequence of that person being a registered patient of the

unlicensed person.

(3) Assess against a respondent determined to be in

violation of this act the costs of investigation underlying

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that disciplinary action. The cost of investigation shall not

include costs incurred by the board after the filing of

formal actions or disciplinary charges against a respondent.

(e) Judgment.--A civil penalty imposed under this section

shall be a judgment in favor of the board upon the person or

property of the person upon whom the civil penalty is imposed.

The Attorney General shall be responsible for enforcing the

judgments in courts of competent jurisdiction in accordance with

the provisions of 42 Pa.C.S. (relating to judiciary and judicial

procedure).

Section 307. Confidentiality.

(a) General rule.--Investigative records of the board,

including prosecutorial memos and transcripts of deposition on

behalf of the board or concerning a licensure-related complaint

filed with the department, shall be confidential and privileged.

The following shall apply:

(1) No person who has investigated or has access to or

custody of documents, materials or information which is

confidential and privileged under this section may be

required to testify in a judicial or administrative

proceeding without the written consent of the board unless

directed to do so by a court of competent jurisdiction.

(2) This subsection shall not preclude or limit

introduction of the contents of an investigative file or

related witness testimony in a hearing or proceeding before

the board.

(3) This section shall not apply to a letter or other

document to a licensee, occupation permittee or certificate

holder that discloses the final outcome of an investigation

or to a final adjudication or order of the board.

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(b) Disclosure permitted.--Except as provided in subsection

(a), this section shall not prevent disclosure of documents,

materials or information pertaining to the status of a license,

certificate or occupation permit or the sharing of information

with law enforcement officials or similar regulatory boards in

other jurisdictions. A violation of this section shall subject

an employee or agent of the board to administrative discipline,

including discharge, suspension or other formal or appropriate

disciplinary action.

execute a confidentiality affidavit which provides that

documents, materials or information in subsection (a) obtained

by the employee or agent shall be considered confidential and

may be disclosed only as permitted under this section.

(d) Waiver.--The board may not require an applicant to waive

any confidentiality under this section as a condition for the

approval of a license or other action of the board.

Section 308. Financing.

(a) Setting of fees.--Beginning two years after the

effective date of this subsection, all fees required under this

act shall be fixed by the board by regulation. If revenue raised

by fees, fines and civil penalties imposed under this act are

not sufficient to meet expenditures over a two-year period, the

board shall increase those fees by regulation under section

303(21) so that the projected revenues will meet or exceed

projected expenditures.

(b) Renewal fees.--Beginning two years after the effective

date of this subsection, all renewal fees shall be deposited

into the account.

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Occupational Affairs determines that the fees established by the

board under subsection (a) are inadequate to meet the minimum

enforcement efforts required by this act, then the bureau, after

consultation with the board, shall increase the fees by

regulation under section 303(21) in an amount that adequate

revenues are raised to meet the required enforcement effort.

(d) Disposition.--Fees, fines and civil penalties imposed

and collected under this act shall be for the exclusive use of

the board in carrying out this act and shall be annually

appropriated from the account for that purpose. This subsection

shall not apply to an initial license fee.

(e) Charging of fees.--The board may charge a reasonable

fee, as set by the board by regulation under section 303(21),

for all examinations, registrations, certificates, licensures or

applications permitted by this act or a regulation under this

act.

(f) Civil penalties.--All civil penalties shall be deposited

into the account.

(g) Reports to department.--The board shall submit annually

to the department an estimate of the financial requirements of

the board for its administrative, investigative, legal and

miscellaneous expenses.

(h) Reports to the Appropriations Committee of the Senate

and the Appropriations Committee of the House of

Representatives.--The board shall submit annually to the

Appropriations Committee of the Senate and the Appropriations

Committee of the House of Representatives, 15 days after the

Governor has submitted his budget to the General Assembly, a

copy of the budget request for the upcoming fiscal year which

the board previously submitted to the department.

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(i) Reports to other legislative committees.--The board

shall submit annually a report to the Consumer Protection and

Professional Licensure Committee of the Senate and to the

Professional Licensure Committee of the House of Representatives

containing a description of the types of complaints received,

status of cases, board action which has been taken and the

length of time from the initial complaint to final board

resolution. The report shall also include a statement of the

numbers and types of licenses granted.

CHAPTER 5

LICENSING

Section 501. Medical cannabis growers.

(a) Licensing.--The board shall license not more than 65

medical cannabis growers to supply medical cannabis for

distribution to medical cannabis processors and medical cannabis

dispensers under this act.

(b) Imposition.--At the time of license issuance, the board

shall impose a licensing fee in the amount of $50,000. The board

shall impose an initial $5,000 annual renewal fee for each year

immediately following the year the license was issued. Renewal

fees shall thereafter be subject to adjustment under section

308.

grower's license shall be in effect unless suspended, revoked or

not renewed by the board for good cause.

(d) Update.--A licensee under this section must notify the

board of a change relating to the status of its license or other

information contained in its application and other information

filed with the board.

(e) Deposit.--The licensure fee under subsection (b) shall

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be deposited into the General Fund. Renewal fees under

subsection (b) shall be deposited into the account.

(f) Restriction.--There shall be no restriction on specific

strains of medical cannabis that may be grown under this act.

Use of genetically modified organisms or an organism whose

genetic material has been altered using genetic engineering may

not be used in the cultivation of medical cannabis.

(g) Requirements.--A medical cannabis grower shall:

(1) Only grow medical cannabis using conventional

growing methods approved by the board in consultation with

the Department of Agriculture.

(2) Submit to preoperational and postoperational

announced and unannounced inspections by the board or the

department.

(3) Grow cannabis only in an indoor, enclosed, secure

facility.

(4) Conduct quality testing utilizing a testing

laboratory certified by the board prior to the sale of

medical cannabis and submit to random testing of medical

cannabis conducted by the board.

(5) Package and label medical cannabis products in

accordance with regulations of the board.

(6) Only sell, transport or deliver medical cannabis to

a medical cannabis processor, certified laboratory or medical

cannabis dispenser.

(7) Provide information relating to the enclosed, secure

facility where medical cannabis will be grown, harvested or

stored, including electronic locking systems, limited access

areas, secure storage and disposal procedures, electronic

surveillance and other features required by the board.

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(8) Provide a cultivation, inventory and packaging plan

and procedures for the oversight of the cultivation area,

including a plant monitoring system, container tracking

system and staffing plan.

(9) Maintain daily records of plants, sales and other

activities, as required by the board.

(10) Perform a weekly physical inventory of all plants

and containers.

(11) Notify law enforcement within 24 hours of any loss

or theft of medical cannabis.

(h) Prohibitions.--A medical cannabis grower may not do any

of the following:

(1) Be located within 1,000 feet of the property line of

a public, private or parochial school or a day-care center.

(2) Be located in a residential dwelling or an area

zoned for residential use.

(3) Acquire cannabis from outside this Commonwealth or

otherwise in violation of regulations of the board.

(4) Permit an individual to consume cannabis on its

property.

(5) Advertise medical cannabis on radio or television.

(i) Exchange.--The board shall promulgate regulations for

the exchange of medical cannabis seed and plant materials

between growers.

Section 502. Medical cannabis processors.

(a) Licensing.--The board shall license not more than 65

medical cannabis processors to process medical cannabis into

oil-based medical cannabis products, including oil, edible

products, ointments and tinctures. The licensees shall be

geographically dispersed throughout this Commonwealth to allow

20150SB0003PN0224 - 23 -

access to processed medical cannabis by medical cannabis

dispensers.

(b) Imposition.--At the time of license issuance, the board

shall impose a licensing fee in the amount of $50,000. The board

shall impose an initial $5,000 annual renewal fee for each year

immediately following the year the license was issued. Renewal

fees shall be subject to adjustment and deposit under section

308.

processor's license shall be in effect unless suspended, revoked

or not renewed by the board for good cause.

(d) Update.--A licensee under this section must notify the

board of a change relating to the status of its license or other

information contained in its application and other information

filed with the board.

(e) Deposit.--The license fee under subsection (b) shall be

deposited into the General Fund. Renewal fees shall be deposited

into the account.

(f) Requirements.--A medical cannabis processor shall do all

of the following:

(1) Only use extraction and processing methods approved

by the board.

(2) Submit to preoperational and postoperational

announced and unannounced inspections by the board and the

department.

(3) Conduct quality testing utilizing a certified

testing laboratory approved by the board prior to delivery to

a dispenser and submit to random testing conducted by the

board.

(4) Only sell, transport or deliver medical cannabis to

20150SB0003PN0224 - 24 -

a testing laboratory or to a medical cannabis dispenser.

(5) Conduct processing activity in a board-approved

facility that is indoor, enclosed and secure, and includes an

electronic locking system, a limited access area, secure

storage and disposal procedures, electronic surveillance and

other features required by the board.

(6) Provide information relating to the facility and

features under paragraph (5).

(7) Provide a processing, inventory and packaging plan

and procedures for the oversight of the processing facility,

including a plant and product monitoring system, container

tracking system and staffing plan.

(8) Perform a weekly physical inventory of all plants,

containers and processing materials.

(9) Maintain a daily log of access to medical cannabis

received and products shipped.

(10) Only sell medical cannabis approved by a certified

laboratory to a licensed medical cannabis dispenser.

(11) Notify law enforcement within 24 hours of a loss or

theft of medical cannabis.

(12) Maintain daily records of all sales and other

activities as required by the board.

(13) Comply with the regulations of the Department of

Agriculture relating to food safety when manufacturing edible

products.

(g) Prohibitions.--A medical cannabis processor may not do

any of the following:

(1) Be located within 1,000 feet of the property line of

a public, private or parochial school or a day-care center.

(2) Be located in a residential dwelling or an area

20150SB0003PN0224 - 25 -

zoned for residential use.

(3) Acquire cannabis from anyone other than a licensed

medical cannabis grower.

(4) Obtain cannabis from outside this Commonwealth.

(5) Process cannabis for any purpose except to provide

medical cannabis to a licensed medical cannabis dispenser.

(6) Advertise medical cannabis on radio or television.

Section 503. Medical cannabis dispensers.

(a) Licensing.--The board shall license not more than 130

medical cannabis dispensers to accept medical cannabis access

cards and dispense medical cannabis to a registered patient or

patient representative in accordance with the instructions of a

health care practitioner. The licensees shall be geographically

dispersed throughout this Commonwealth to allow all registered

patients reasonable proximity and access to medical cannabis by

a medical cannabis dispenser.

(b) Imposition.--At the time of license issuance, the board

shall impose a licensing fee in the amount of $50,000. The board

shall impose an initial $5,000 annual renewal fee for each year

immediately following the year the license was issued. Renewal

fees shall be subject to adjustment under section 308.

dispenser's license shall be in effect unless suspended, revoked

or not renewed by the board for good cause.

(d) Update.--A licensee under this section must notify the

board of a change relating to the status of its license,

operation or other information contained in its application and

other information filed with the board.

(e) Deposit.--The license fee under subsection (b) shall be

deposited into the General Fund. Renewal fees shall be deposited

20150SB0003PN0224 - 26 -

into the account.

(f) Requirements.--A medical cannabis dispenser shall do all

of the following:

(1) Maintain a system to verify medical cannabis access

cards.

(2) Submit to preoperational and postoperational

announced and unannounced inspections by the board and the

department.

(3) Maintain a daily log of all medical cannabis

purchased and dispensed. The log shall include:

(i) The name of the registered patient or a patient

representative that holds the medical cannabis access

card.

(ii) The amount of medical cannabis dispensed.

(iii) The date of each dispensing to the cardholder.

(4) Provide reports as required by the board relating to

amounts dispensed.

(5) Maintain an enclosed, secure physical premises that

meets the regulations of the board. Medical cannabis may not

be visible from the entryway to an individual who is not an

occupation-permitted employee, owner or operator of the

licensed premises.

(6) Dispense no more than a 30-day supply of the dosage

recommended by the health care practitioner unless the

registered patient receives a waiver from the department

authorizing a larger amount. A new 30-day supply may be

dispensed during the seven days prior to the end of the 30-

day period under this paragraph.

(7) Only accept authorizations from a health care

practitioner for no more than the 30-day supply periods.

20150SB0003PN0224 - 27 -

Thereafter, a new authorization from the health care

practitioner shall be required.

(8) Comply with recommendations of the health care

practitioner as to strain, dosage and amount of medical

cannabis dispensed.

(9) Provide all registered patients and patient

representatives with a safety insert developed by the

Department of Health which includes:

(i) Methods for administering medical cannabis.

(ii) Potential dangers.

(iii) Recognition and correction of problematic

dosage.

(iv) Other information required by the department.

(10) Sell only medical cannabis that has received

approval from the certified laboratory.

(11) Maintain an electronic security system, including

all of the following:

(i) Electronic surveillance.

(ii) An electronic locking system.

(iii) A locked door or barrier between the entry and

a limited access area for patients, storage, disposal and

other processes.

(12) Provide for the supervision of the dispensing of

medical cannabis at all times by an individual with

qualifications required by the board.

(13) Display appropriate signage as required by the

board.

(14) Provide the proposed address of the enclosed,

secure facility where medical cannabis will be dispensed.

(15) Provide an inventory and packaging plan and

20150SB0003PN0224 - 28 -

procedures for the oversight of the dispensing facility,

including a plant and product monitoring system, container

tracking system, staffing plan and security plan.

(16) Perform a weekly physical inventory of all medical

cannabis and medical cannabis products.

(17) Obtain medical cannabis only from a medical

cannabis processor.

(18) Notify law enforcement within 24 hours of a loss or

theft of medical cannabis.

(g) Prohibitions.--A medical cannabis dispenser may not do

any of the following:

(1) Be located within 1,000 feet of the property line of

a public, private or parochial school or a day-care center.

(2) Be located in a residential dwelling or an area

zoned for residential use.

(3) Obtain cannabis from outside this Commonwealth.

(4) Sell medical cannabis for any purpose except to a

registered patient or a patient representative.

(5) Permit an individual to consume cannabis on its

property.

(6) Sell products which contain nicotine or alcohol.

(7) Sell medical cannabis over the Internet or to a

person not physically present at its location.

(8) Advertise medical cannabis on radio or television.

Section 504. Applications.

(a) Application.--An application for a grower, processor or

dispenser license must be submitted on a form and in a manner as

required by the board. In reviewing an application, the board

shall confirm that all applicable fees have been paid.

(b) Information.--An applicant for a grower, processor or

20150SB0003PN0224 - 29 -

dispenser license under this act must do all of the following:

(1) Disclose the following information:

(i) Each arrest and citation for a nontraffic

summary offense of the applicant.

(ii) The name, address and photograph of the

applicant and each principal and the principal's position

within the corporation or organization.

(iii) Any financial information required by the

board.

(iv) The proposed location of the growing,

processing or dispensing operation.

(v) The details of each loan obtained to finance the

growing, processing or dispensing operation.

(vi) The details of any civil judgment against the

applicant or the applicant's owners or operators relating

to:

(A) security regulation laws of the Federal

Government;

(B) laws relating to the regulation of

pharmaceuticals; or

corporations and unincorporated associations).

(vii) Any other information required by the board.

(2) Consent to the conduct of a background investigation

by the board, the scope of which shall be determined by the

board consistent with this act. Consent shall include a

release signed by each person subject to the investigation of

information required to complete the investigation.

under this section or to consent to a background investigation

20150SB0003PN0224 - 30 -

shall result in the immediate denial of a license.

(d) Character requirements.--Each application for a grower,

processor or dispenser license shall include information,

documentation and assurance required to establish by clear and

convincing evidence that the applicant is a person of good

character, honesty and integrity, has appropriate financial

suitability and is eligible and suitable to be an owner or

operator. Information shall include information pertaining to

associates during the 10-year period immediately preceding the

filing date of the application.

(e) Privilege.--The issuance or renewal of a license under

this section shall be a revocable privilege.

Section 505. Licensing of owner or operator.

(a) License required.--Each owner or operator of an

applicant for licensure under this act must obtain an owner or

operator license from the board. An owner or operator may only

have an interest in the activity under this act for which

licensure is sought.

(b) Application.--An owner or operator license application

shall be in a form prescribed by the board and shall include the

following:

(1) Verification of status as an owner or operator from

a medical cannabis dispenser, grower or processor.

(2) A description of responsibilities as an owner or

operator.

(3) Each release necessary to obtain information from

governmental agencies, employers and other organizations.

(4) Fingerprints, which shall be submitted to the

Pennsylvania State Police. The Pennsylvania State Police

shall submit fingerprint data to and receive national

20150SB0003PN0224 - 31 -

criminal history record information from the Federal Bureau

of Investigation for use in investigating an applicant for an

owner or operator license.

(5) A photograph that meets the standards of the

Commonwealth Photo Imaging Network.

(6) Details relating to a similar license, permit or

other authorization obtained in another jurisdiction.

(7) Any additional information required by the board.

background investigation, the board may issue an owner or

operator license if the applicant has proven by clear and

convincing evidence that the applicant is a person of good

character, honesty and integrity and is eligible and suitable to

be licensed as an owner or operator.

(d) Nontransferability.--A license issued under this section

shall be nontransferable.

(e) Owner or operator.--An individual who receives an owner

or operator license need not obtain an occupation permit.

(f) Waiver.--The board may waive licensure requirements for

an owner of securities in a publicly traded corporation if the

board determines that the holder of the securities is not

significantly involved in the activities of the applicant.

Section 506. Occupation permit for medical cannabis employees

and certain patient representatives.

(a) Permit required.--Each medical cannabis employee, and

each patient representative who is not a parent or guardian of a

patient, shall obtain an occupation permit from the board.

(b) Application.--An occupation permit application shall be

in a form prescribed by the board and shall include the

following:

20150SB0003PN0224 - 32 -

(1) Verification of one of the following:

(i) The status as a medical cannabis employee or

potential medical cannabis employer from a medical

cannabis grower, processor or dispenser.

(ii) From a health care facility that the patient

representative is an employee designated to purchase,

possess, transport, deliver and properly administer

medical cannabis to a patient with a medical cannabis

access card who is unable to obtain the medical cannabis.

(2) A description of employment responsibilities.

(3) Each release necessary to obtain information from

governmental agencies, employers and other organizations.

(4) Fingerprints, which shall be submitted to the

Pennsylvania State Police. The Pennsylvania State Police

shall submit fingerprint data to and receive national

criminal history record information from the Federal Bureau

of Investigation for use in investigating an applicant for an

occupation permit.

(5) A photograph that meets the standards of the

Commonwealth Photo Imaging Network.

(6) Details relating to a similar license, permit or

other authorization obtained in another jurisdiction.

(7) Any additional information required by the board.

background investigation, the board may issue an occupation

permit if the applicant has proven by clear and convincing

evidence that the applicant is a person of good character,

honesty and integrity and is eligible and suitable to be an

occupation permit holder.

(d) Nontransferability.--An occupation permit issued under

20150SB0003PN0224 - 33 -

this section shall be nontransferable.

(e) Privilege.--The issuance or renewal of a permit under

this section shall be a revocable privilege.

Section 507. Change in ownership.

The following apply to notification and approval:

(1) A medical cannabis grower, processor or dispenser

must notify the board upon becoming aware of a proposed or

contemplated change of ownership or control of the licensee.

The new owner must pay the licensing fee required under this

chapter.

(2) The purchaser of the assets of a medical cannabis

grower, processor or dispenser must independently qualify for

a license in accordance with this act and must pay the

license fee required under this chapter.

(3) If the ownership of the operation of a licensed

grower, processor or dispenser or its affiliate is changed,

the new owner must pay the annual renewal fee for each

applicable license.

Section 508. Location.

(a) General rule.--Except as otherwise provided under this

act, each grower, processor and dispenser license shall be valid

for the specific physical location within the municipality and

county for which it was originally granted. A person may not

distribute medical cannabis from a location other than a

licensed facility.

(b) Zoning.--The following shall apply:

(1) The growing of medical cannabis shall be classified

as a normal agricultural operation as defined under section 2

of the act of June 10, 1982 (P.L.454, No.133), referred to as

the Right-to-Farm Law.

20150SB0003PN0224 - 34 -

(2) Facilities for the manufacturing, preparation and

production of medical cannabis shall meet the same municipal

zoning and land use requirements as other manufacturing,

preparation and production facilities.

(3) Facilities for the dispensing of medical cannabis

shall meet the same municipal zoning and land use

requirements as other commercial facilities.

this act may petition the board to relocate its facility. In

determining whether to grant a petition to relocate, the board

shall do all of the following:

(1) Evaluate the proposed new location and the reason

for relocation.

(2) Evaluate community support and compliance with local

ordinances.

(3) Consider any other information submitted by the

petitioner or required by the board.

Section 509. Storage and transportation.

The board shall develop regulations relating to the storage

and transportation of medical cannabis among growers,

processors, testing laboratories and medical cannabis dispensers

which ensure adequate security to guard against in-transit

losses. The tracking system developed by the board shall include

all transportation and storage of medical cannabis. The

regulations shall provide for the following:

(1) Requirements relating to shipping containers and

packaging.

(2) The manner in which trucks, vans, trailers or other

carriers will be secured.

(3) Security systems that include a numbered seal on the

20150SB0003PN0224 - 35 -

trailer.

(4) Obtaining copies of driver's licenses and

registrations and other information related to security and

tracking.

(5) Use of GPS systems.

(6) Number of drivers or other security required to

ensure against storage or in-transit losses.

(7) Recordkeeping for delivery and receipt of medical

cannabis products.

Section 510. Disposal and donation.

(a) Disposal.--The board shall promulgate regulations

relating to disposal of medical cannabis by medical cannabis

growers, processors, dispensers and law enforcement.

(b) Donation.--A medical cannabis dispenser, grower and

processor may donate medical cannabis that has been purchased or

produced and tested in this Commonwealth in accordance with this

act and is in new and unopened condition and can only be donated

for research purposes to an accredited research institution,

university or college within this Commonwealth and recognized by

the Commonwealth.

Section 511. Testing laboratories.

(a) Certification.--The board shall certify accredited

laboratories to test medical cannabis in accordance with

regulations of the board.

(b) Requirement.--A medical cannabis grower and a medical

cannabis processor must utilize a certified laboratory to test

the quality of medical cannabis before the sale or transport of

medical cannabis is made as required by the board.

content of information required to certify laboratories,

20150SB0003PN0224 - 36 -

including security requirements.

Section 512. Licensee prohibitions.

(a) Inspection.--A licensee or certified laboratory may not

refuse to allow an authorized employee of the department to

inspect a licensed premises at any time.

(b) Other prohibitions.--A licensee or certified laboratory

may be cited under this act for:

(1) An unlawful act prohibited by State law which occurs

on the licensed premises.

(2) An unlawful act which involves a licensee or the

licensee's agent or employee.

(3) The sale or purchase of an illegal drug by the

licensee or by the licensee's agent or employee.

CHAPTER 7

MEDICAL CANNABIS ACCESS

Section 701. Medical cannabis access card.

(a) Department of Health.--A patient with a qualified

medical condition may register with the Department of Health and

be issued a medical cannabis access card.

(b) Enforcement.--The department shall develop regulations

to enforce the provisions of this chapter, including revocation

or suspension of an access card for violations of this act.

access card shall be developed by the Department of Health.

Applications for renewal shall be required on an annual basis. A

patient representative may obtain a medical cannabis access card

on behalf of a registered patient.

(d) Certification.--Applications and renewals must include

written certification from a health care practitioner under

subsection (l) that the applicant has a qualified medical

20150SB0003PN0224 - 37 -

condition.

(e) Verification.--The Department of Health shall verify the

information in the application and renewal form. Verification

shall include verification of the certification under subsection

(d).

(f) Time.--The Department of Health must approve or deny an

application within 90 business days.

(g) Fee.--The Department of Health shall charge an

application fee of not more than $100 and an annual renewal fee

of not more than $50.

(h) Residency.--Except as provided in subsection (i), a

patient must reside in this Commonwealth to receive a medical

cannabis access card.

(i) Reciprocity.--A patient registered in another state that

authorizes medical cannabis and recognizes medical cannabis

access cards from patients who are residents of this

Commonwealth may submit to the Department of Health the

patient's credentials to utilize medical cannabis. The

department shall develop a system for confirming an out-of-State

patient's status as a medical cannabis user in each state with

legalized medical cannabis and only grant a medical cannabis

access card to a person with a qualified medical condition.

After the Department of Health investigates and approves the

patient's credentials, the Department of Health shall issue the

patient a medical cannabis access card allowing the patient to

utilize medical cannabis in this Commonwealth.

(j) Patient representative.--

(1) A patient representative must be:

(i) at least 18 years of age; and

(ii) a resident of this Commonwealth.

20150SB0003PN0224 - 38 -

(2) A patient representative shall do all of the

following:

(i) Register with the department in a manner

prescribed by the department.

(ii) Present, from the registered patient's health

care practitioner who prescribed the medical cannabis,

certification that the patient is unable to obtain or

administer medical cannabis for a good faith medical or

physical reason.

(iii) Notify the department within 10 business days

after:

(A) a change to the information that the

provider, registered patient or patient

representative was required to submit to the

department; and

(B) the patient representative discovers that

the registry identification has been lost or stolen.

(iv) Notify the department by telephone and in

writing within 10 days following the death of the patient

representative's registered patient. The department shall

provide instruction to the patient representative

regarding the duty to dispose of and means by which the

remaining medical cannabis may be disposed.

(3) A patient representative may do any of the

following:

(i) Transport a registered patient to and from a

licensed medical cannabis dispenser.

(ii) Obtain and transport an adequate supply of

medical cannabis from a medical cannabis dispenser on

behalf of a registered patient.

20150SB0003PN0224 - 39 -

(iii) Prepare medical cannabis for consumption by a

registered patient.

(iv) Administer medical cannabis to a registered

patient as recommended by the registered patient's health

care practitioner.

(4) A patient representative may not do any of the

following:

(i) Receive payment or other compensation for

services provided as a patient representative other than

reimbursement for reasonable expenses incurred in the

provision of services as a patient representative. In the

case of an employee of a health care facility serving as

a patient representative, the individual may not receive

payment or compensation above or beyond the individual's

regular wages.

(ii) Consume medical cannabis which has been

dispensed on behalf of a registered patient.

(iii) Sell, provide or otherwise divert medical

cannabis which has been dispensed to a registered

patient.

(iv) Grow or cultivate medical cannabis on behalf of

any individual.

(v) Purchase medical cannabis from an unlicensed

source.

(vi) Obtain medical cannabis from a registered

patient or a patient representative.

(5) If a patient representative previously employed by a

health care facility is no longer employed by the health care

facility, the authority to obtain medical cannabis using a

medical cannabis access card or other form of authorization

20150SB0003PN0224 - 40 -

issued by the department shall be void. A health care

facility that employs a patient representative to pick up,

deliver or administer medical cannabis to registered patients

shall notify the department immediately upon termination of

the patient representative's employment.

(6) The department shall promulgate regulations relating

to patient representatives, including the form of

authorization to be utilized.

(k) Confidentiality.--The Department of Health shall

maintain a confidential list of each individual who has been

issued a medical cannabis access card or authorized to act as a

patient representative. Other identifying information on the

list shall be confidential and shall not be considered a public

record under the act of February 14, 2008 (P.L.6, No.3), known

as the Right-to-Know Law. The list may not be disclosed except

to any of the following:

(1) Authorized employees of the board and the Department

of Health as necessary to perform official duties of the

board and the Department of Health.

(2) Authorized employees of the board and the Department

of Health, as necessary to verify that a person who is

engaged in the suspected or alleged medical use of cannabis

is lawfully in possession of a medical cannabis access card.

(l) Health care practitioners.--

(1) A health care practitioner may recommend the use of

medical cannabis to a patient if the health care practitioner

complies with all of the following:

(i) Has a good faith practitioner-patient

relationship with the patient, not limited to a

certification for the patient to use medical cannabis or

20150SB0003PN0224 - 41 -

a consultation simply for that purpose.

(ii) Practices within this Commonwealth at an

established place of practice.

(iii) Registers with the department if required by

department regulation.

(iv) Has responsibility for the ongoing care and

treatment of the patient as long as the ongoing care

treatment is not limited to or for the primary purpose of

certifying a qualifying medical condition.

(v) Has completed and documented an in-person full

assessment of the patient's medical history and current

medical condition not more than 90 days prior to making

the certification for medical cannabis. The assessment

shall include a review of medical records from other

treating health care practitioners from the previous 12

months.

(vi) Certifies that the patient is under the

physician's care for, and that the physician has

expertise in, the patient's qualifying medical condition.

(vii) Certifies that in the physician's professional

opinion, the patient is likely to receive therapeutic or

palliative benefit from the medical use of cannabis to

treat or alleviate the patient's qualifying medical

condition or symptoms associated with the condition.

(viii) Bases each authorization to receive medical

cannabis on generally accepted standards of medical

practice.

(ix) Has adopted a recordkeeping system for all

patients for whom the physician has recommended the use

of medical cannabis.

20150SB0003PN0224 - 42 -

(2) A health care practitioner may not do any of the

following:

(i) Accept, solicit or offer a form of remuneration

from or to:

(A) a patient, except normal medical examination

costs, patient representative, licensed grower,

licensed processor or licensed dispenser; or

(B) any principal officer, employee or agent of

a person listed in clause (A).

(ii) Offer a discount or an item of value to a

patient who uses or agrees to use a particular patient

representative or medical cannabis dispenser to obtain

medical cannabis.

(iii) Conduct an examination of a patient for

purposes of diagnosing a qualifying medical condition at

a location where medical cannabis is sold or distributed.

(iv) Hold a direct or indirect economic interest in,

or serve on the board of, a licensed medical cannabis

grower, licensed medical cannabis processor or licensed

medical cannabis dispenser.

(v) Refer a patient to a particular licensed medical

cannabis grower, licensed medical cannabis processor or

licensed medical cannabis dispenser.

(vi) Advertise in a facility of a licensed medical

cannabis grower, licensed medical cannabis processor or

licensed medical cannabis dispenser.

(vii) Issue an authorization to receive medical

cannabis to a member of the health care practitioner's

family.

Section 702. Expansion of medical conditions.

20150SB0003PN0224 - 43 -

(a) Petition.--Beginning in 2015, the board may accept

petitions from a resident of this Commonwealth to add additional

qualified medical conditions to those conditions for which a

patient may receive medical cannabis.

(b) Requirements.--A petition under subsection (a):

(1) must be limited to a single proposed qualified

medical condition;

(2) must be in a form prescribed by the board;

(3) must include a description of the specific medical

condition which is the subject of the petition; and

(4) must not request approval for broad categories of

illnesses.

(a), the board shall do all of the following:

(1) Review the petition received for the addition of a

qualified medical condition which would benefit from the use

of medical cannabis. The board may consolidate petitions for

the same or similar condition.

(2) Review new or current medical and scientific

evidence pertaining to currently approved conditions.

(3) Consult medical and scientific experts as necessary

to adequately review the petition.

(4) Analyze the following:

(i) Information about why conventional medical

therapies are not sufficient to treat or alleviate the

impact of the condition or disease.

(ii) The proposed benefits from the use of medical

cannabis.

(iii) Evidence from the medical community and other

experts supporting the use of medical cannabis to

20150SB0003PN0224 - 44 -

alleviate suffering caused by the condition or disease or

its treatment.

(iv) Letters of support from licensed health care

providers knowledgeable about the condition or disease,

including letters from physicians with whom the

petitioner has a physician-patient relationship.

(v) Medical or scientific documentation.

(d) Action.--The board shall approve or deny a petition in

accordance with regulations promulgated by the board.

Section 703. Medical use permitted.

(a) General rule.--The cultivation, possession, acquisition,

use, delivery, processing, dispensing or transportation of

medical cannabis by a person who, at the time the cultivation,

possession, acquisition, use, delivery, processing, dispensing

or transportation occurs, possesses a valid license,

occupational permit, certificate or medical cannabis access card

under this act and is in compliance with all applicable terms

under this act shall not be unlawful under any provision of law.

(b) Access card.--

(1) Possession of or application for a medical cannabis

access card may not alone constitute probable cause to search

a person, the person's property or otherwise subject the

person or property to inspection by a governmental agency.

(2) Paragraph (1) does not apply to a patient under 18

years of age unless all of the following have occurred:

(i) The minor's health care practitioner has

explained to the minor and the minor's custodial parent,

guardian or person having legal custody the potential

risks and benefits of medical cannabis.

(ii) The custodial parent, guardian or person having

20150SB0003PN0224 - 45 -

legal custody consents in writing to:

(A) Allow the minor's use of medical cannabis.

(B) Serve as the minor's patient representative.

frequency of the minor's use of medical cannabis.

adjudicated delinquent or granted accelerated rehabilitative

disposition or who pleads guilty or nolo contendere for any

offense shall not be disqualified from obtaining or possessing a

valid medical cannabis access card on the basis of the offense.

Section 704. Health insurance.

Nothing in this act shall be construed to require a State

government medical assistance program or private health insurer

to reimburse a person for costs associated with the medical use

of cannabis or an employer to accommodate the medical use of

cannabis in a workplace.

Section 705. Sovereign immunity.

The Commonwealth may not be held liable for any deleterious

outcomes resulting from the medical use of cannabis by a

registered patient.

CHAPTER 9

PROTECTION, PROHIBITIONS,

ENFORCEMENT AND PENALTIES

Section 901. Civil discrimination protection.

The following shall apply:

(1) For the purposes of medical care, a patient's

authorized use of medical cannabis under this act shall be

considered the equivalent of the use of other medication

under the direction of a health care practitioner. Medical

cannabis, when used in accordance with this act, may not be

20150SB0003PN0224 - 46 -

considered an illicit substance or otherwise disqualify a

patient from medical care.

(2) An individual may not be penalized in any of the

following ways due to the individual's use of medical

cannabis under this act:

(i) Denied custody, visitation or parenting time

with a minor child.

(ii) Presumed to neglect or endanger a minor child

unless the individual's behavior creates an unreasonable

danger to the safety of the minor by clear and convincing

evidence.

(3) A landlord may not refuse to lease or otherwise

penalize a patient solely for having a medical cannabis

access card or using medical cannabis in accordance with this

act unless the landlord would lose a monetary or licensing-

related benefit under Federal law or regulation.

(4) A school may not refuse to enroll or otherwise

penalize a patient solely for having a medical cannabis

access card or using medical cannabis in accordance with this

act unless the school would lose a monetary or licensing-

related benefit under Federal law or regulation.

(5) An employer may not discriminate against an

individual in the hiring or termination of benefits or

otherwise penalize the individual for being a medical

cannabis access cardholder. The following shall apply:

(i) The employer may take an individual's status as

a cardholder into account only if the employer can prove

the employee is abusing or misusing the employee's

medical cannabis on the premises of the place of

employment during ordinary hours of employment or if

20150SB0003PN0224 - 47 -

failure to do so would cause an employer to lose a

licensing benefit under Federal law or regulation.

(ii) An individual's positive drug test for cannabis

components or metabolites may not be considered by an

employer unless the individual unlawfully used, possessed

or was impaired by the medical cannabis while on the

premises of the place of employment or during the hours

of employment.

Section 902. Prohibitions and use.

(a) Prohibitions.--

(1) A registered patient may not operate or be in

physical control of any of the following while under the

influence with a blood content of more than 10 nanograms of

active tetrahydrocannabis per milliliter of blood in serum:

(i) A motor vehicle.

(ii) An aircraft.

(iii) A motor boat.

(iv) Heavy machinery.

(v) A mode of transportation in a manner that would

constitute an offense under 75 Pa.C.S. Ch. 38 (relating

to driving after imbibing alcohol or utilizing drugs).

(2) A registered patient may not undertake any task

under the influence of cannabis when doing so would

constitute negligence or professional malpractice.

(3) A person may not allow cannabis obtained by a

registered patient to be used by an individual who is not

authorized to use medical cannabis under this act.

(4) An individual may not smoke cannabis or utilize a

vaporizer to ingest or inhale cannabis.

(b) Use.--Except as provided under subsection (a), a

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registered patient may utilize medical cannabis in any public

place, including the following:

(i) Public transportation.

(ii) On school grounds if the registered patient is

a student or an employee of the school in accordance with

the Department of Education regulations regarding

medication on school grounds.

(iii) In a correctional facility in accordance with

Department of Corrections regulations regarding

medications in correctional facilities.

(iv) At a public park or public beach.

and processing operations approved by the board, a person may

not adulterate, fortify, contaminate or change the character or

purity of medical cannabis from the original sold by a licensed

medical cannabis grower, processor or dispenser.

Section 903. Unlawful activities.

In addition to any other applicable provision of law, it

shall be a criminal offense to intentionally or knowingly do any

of the following:

(1) Grow, process or dispense medical cannabis without a

license under this act.

(2) Transport medical cannabis from or between an

unlicensed grower, processor or dispenser.

(3) Participate in the growing, processing, testing or

dispensing of medical cannabis in violation of this act.

(4) Fail to report, pay or truthfully account for and

pay any license fee, authorization fee or an assessment

imposed under this act.

(5) Violate any regulation of the board.

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Section 904. Criminal penalties and fines.

(a) Offense.--Except as provided under subsections (b) and

(c), a violation of the act shall be graded as a misdemeanor of

the second degree.

(b) Unauthorized actions.--A medical cannabis grower,

processor or dispenser that distributes, gives, sells or

provides medical cannabis to a person other than a person

authorized under this act commits a felony of the third degree.

or certification under section 511 commits a misdemeanor of the

first degree.

(d) Other violations.--A person that is convicted of a

second or subsequent violation of this act commits a felony of

the third degree.

CHAPTER 11

MEDICAL CANNABIS SURCHARGE

Section 1101. 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:

"Department." The Department of Revenue of the Commonwealth.

"Medical cannabis." Plants containing cannabidiol,

tetrahydrocannabinol or delta-9-tetrahydrocannabinol acid or any

part of a cannabis plant, including cannabis processed by

extracting oil from the plant, intended for medical purposes.

The term includes extracted oil, edible products, ointments and

tinctures.

"Medical cannabis purveyor." A medical cannabis dispenser,

medical cannabis grower, medical cannabis processor or any other

person licensed under this chapter who, in the usual course of

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business, sells medical cannabis to a medical cannabis

dispenser.

"Person." An individual, unincorporated association,

corporation, limited liability corporation, joint stock company,

group, committee, agency, syndicate, trust or trustee, receiver,

fiduciary, partnership or conservator. Whenever used in this

chapter to establish or impose penalties, the term "person" when

applied to a partnership, unincorporated association or other

joint venture means the partners or members thereof and when

applied to a corporation means all officers and directors

thereof.

"Purchase price." The total value of anything paid or

delivered, or promised to be paid or delivered, whether it be

money or otherwise, in complete performance of a sale or

purchase, without a deduction on account of the cost or value of

the property sold, cost or value of transportation, cost or

value of labor or service, interest or discount paid or allowed

after the sale is consummated, other taxes or surcharges imposed

by the Commonwealth or other expense.

"Sale." A transfer of ownership, custody or possession of

medical cannabis for consideration; an exchange, barter or gift;

or an offer to sell or transfer the ownership, custody or

possession of medical cannabis for consideration.

"Surcharge payer." A person subject to the surcharge under

this chapter.

"Unclassified importer." A person in this Commonwealth that

acquires medical cannabis from a source on which the surcharge

imposed by this chapter was not paid and that is not a person

otherwise required to be licensed under the provisions of this

chapter. The term includes a patient who purchases medical

20150SB0003PN0224 - 51 -

cannabis outside this Commonwealth for personal possession or

use in this Commonwealth.

Section 1102. Incidence and rate of surcharge.

(a) Imposition.--A medical cannabis surcharge is imposed on

a medical cannabis purveyor or other person at the time the

medical cannabis is first sold to a medical cannabis dispenser

in this Commonwealth at the rate of 6% on the purchase price

charged to the medical cannabis dispenser for the purchase of

medical cannabis. The surcharge shall be collected from the

medical cannabis dispenser by the seller of the medical cannabis

to the medical cannabis dispenser and remitted to the

department. A person required to collect this surcharge shall

separately state the amount of surcharge on an invoice or other

sales document.

(b) Medical cannabis dispenser.--If the surcharge is not

collected by the seller from the medical cannabis dispenser, the

surcharge is imposed on the medical cannabis dispenser at the

time of purchase at the same rate as in subsection (a) based on

the medical cannabis dispenser's purchase price of the medical

cannabis. The medical cannabis dispenser shall remit the

surcharge to the department.

unclassified importer at the time of purchase at the same rate

as in subsection (a) based on the unclassified importer's

purchase price of the medical cannabis. The unclassified

importer shall remit the surcharge to the department.

(d) Exceptions.--The surcharge shall not be imposed on

medical cannabis that:

(1) is exported for sale outside this Commonwealth; or

(2) is not subject to surcharge or taxation by the

20150SB0003PN0224 - 52 -

Commonwealth pursuant to any laws of the United States.

(e) Article II.--Unless otherwise specifically noted, the

provisions of Article II of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, shall apply to the

returns, payment, penalties, enforcement, collections and

appeals of the surcharge imposed on medical cannabis.

Section 1103. Limitation of surcharge.

Only one sale shall be surcharged and used in computing the

amount of surcharge due under this chapter.

Section 1104. Remittance of surcharge to department.

Medical cannabis purveyors and unclassified importers shall

file monthly reports on a form prescribed by the department by

the 20th day of the month following the sale or purchase of

medical cannabis from another source on which the surcharge

levied by this chapter has not been paid. The surcharge is due

at the time the report is due. The department may require the

filing of reports and payments of surcharges on a less frequent

basis at its discretion.

Section 1105. Procedures for claiming refund.

A claim for a refund of the surcharge imposed by this chapter

shall be in accordance with section 3003.1 and Article XXVII of

the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform

Code of 1971, and shall be in the form and contain the

information prescribed by the department by regulation.

Section 1106. Sales or possession of medical cannabis when

surcharge not paid.

(a) Sales or possession.--A person who sells or possesses

medical cannabis for which the proper surcharge has not been

paid commits a summary offense and shall, upon conviction, be

sentenced to pay costs of prosecution and a fine of not less

20150SB0003PN0224 - 53 -

than $100 nor more than $1,000 or to imprisonment for not more

than 60 days, or both, at the discretion of the court. Medical

cannabis purchased from a medical cannabis purveyor properly

licensed under this chapter shall be presumed to have the proper

surcharges paid.

(b) Surcharge evasion.--A person that falsely or

fraudulently, maliciously, intentionally or willfully, with

intent to evade the payment of the surcharge imposed by this

chapter, sells or possesses medical cannabis for which the

proper surcharge has not been paid commits a misdemeanor of the

third degree and shall, upon conviction, be sentenced to pay

costs of prosecution and a fine of not more than $5,000 or to

imprisonment for not more than one year, or both, at the

discretion of the court.

Section 1107. Assessment.

The department is authorized to make the inquiries,

determinations and assessments of the surcharge, including

interest, additions and penalties, imposed by this chapter.

Section 1108. Failure to file return.

Where no return is filed, the amount of the surcharge due may

be assessed and collected at any time as to chargeable

transactions not reported.

Section 1109. False or fraudulent return.

Where the surcharge payer willfully files a false or

fraudulent return with intent to evade the surcharge imposed by

this chapter, the amount of surcharge due may be assessed and

collected at any time.

Section 1110. Extension of limitation period.

Notwithstanding any other provision of this chapter, where,

before the expiration of the period prescribed for the

20150SB0003PN0224 - 54 -

assessment of a surcharge, a surcharge payer has consented, in

writing, that the period be extended, the amount of surcharge

due may be assessed at any time within the extended period. The

period so extended may be extended further by subsequent

consents, in writing, made before the expiration of the extended

period.

Section 1111. Failure to furnish information, returning false

information or failure to permit inspection.

(a) Penalty.--A surcharge payer who fails to keep or make a

record, return, report, inventory or statement, or keeps or

makes a false or fraudulent record, return, report, inventory or

statement required by this chapter, commits a misdemeanor and

shall, upon conviction, be sentenced to pay costs of prosecution

and a fine of $500 and to imprisonment for not more than one

year, or both, at the discretion of the court.

(b) Examination.--The department is authorized to examine

the books and records, the stock of medical cannabis and the

premises and equipment of a surcharge payer in order to verify

the accuracy of the payment of the surcharge imposed by this

chapter. The person subject to an examination shall give to the

department or its duly authorized representative the means,

facilities and opportunity for the examination. Willful refusal

to cooperate with or permit an examination to the satisfaction

of the department shall be sufficient grounds for suspension or

revocation of a surcharge payer's license issued under this

chapter.

maintain for a period of four years records in the form

prescribed by the department. The records shall be maintained at

the location for which the license under this chapter is issued.

20150SB0003PN0224 - 55 -

(d) Reports.--A medical cannabis purveyor shall file reports

at times and in the form prescribed by the department.

(e) Medical cannabis purveyor.--A medical cannabis purveyor

located or doing business in this Commonwealth who sells medical

cannabis in this Commonwealth shall keep records showing:

(1) The amount and kind of medical cannabis sold.

(2) The date the medical cannabis was sold.

(3) The name and license number issued under Chapter 5

of the medical cannabis dispenser to which the medical

cannabis was sold.

(4) The total price of the medical cannabis sold to the

medical cannabis dispenser.

(5) The place where the medical cannabis was shipped.

(6) The name of the common carrier.

(f) Medical cannabis purveyor.--A medical cannabis purveyor

shall file with the department, on or before the 20th day of

each month, a report showing the information listed in

subsection (e) for the previous month.

Section 1112. Records of shipments and receipts of medical

cannabis required.

The department may, in its discretion, require reports from a

common or contract carrier who transports medical cannabis to

any point or points within this Commonwealth, and from a bonded

warehouseman or bailee who has in the possession of the

warehouseman or bailee any medical cannabis. The reports shall

contain the information concerning shipments of medical cannabis

that the department determines to be necessary for the

administration of this chapter. All common and contract

carriers, bailees and warehousemen shall permit the examination

by the department or its authorized agents of records relating

20150SB0003PN0224 - 56 -

to the shipment or receipt of medical cannabis.

Section 1113. Licensing of medical cannabis purveyors.

(a) Prohibition.--No person, unless all sales of medical

cannabis are exempt from the medical cannabis surcharge in this

Commonwealth, shall sell, transfer or deliver medical cannabis

in this Commonwealth without first obtaining the proper license

provided for in this chapter.

(b) Application.--An applicant for a medical cannabis

purveyor's license shall complete and file an application with

the department. The application shall be in the form and contain

information prescribed by the department and shall set forth

truthfully and accurately the information required by the

department. If the application is approved, the department shall

license the medical cannabis purveyor for a period of one year

and the license may be renewed annually thereafter.

purveyor's license or renewal of that license shall meet the

following requirements:

(1) The premises on which the applicant proposes to

conduct business are adequate to protect the revenue.

(2) The applicant is a person of reasonable financial

stability and reasonable business experience.

(3) The applicant, or a shareholder controlling more

than 10% of the stock if the applicant is a corporation or an

officer or director if the applicant is a corporation, shall

not have been convicted of a crime involving moral turpitude.

(4) The applicant shall not have failed to disclose

material information required by the department, including

information that the applicant has complied with this chapter

by providing a signed statement under penalty of perjury.

20150SB0003PN0224 - 57 -

(5) The applicant shall not have made any material false

statement in the application.

(6) The applicant shall not have violated a provision of

this chapter.

(7) The applicant shall have filed all required State

tax reports and paid State taxes not subject to a timely

perfected administrative or judicial appeal or subject to a

duly authorized deferred payment plan.

(d) Multiple locations.--The medical cannabis purveyor's

license shall be valid for one specific location only. Medical

cannabis purveyors with more than one location shall obtain a

license for each location.

Section 1114. License fees and issuance and display of license.

(a) Fees.--At the time of making an application or license

renewal application, an applicant for a medical cannabis

purveyor's license shall pay the department a license fee of

$75.

(b) Proration.--Fees shall not be prorated.

and payment of the fees, the department shall issue the proper

license which must be conspicuously displayed at the location

for which it has been issued.

Section 1115. Electronic filing.

The department may, at its discretion, require that any or

all returns, reports or registrations that are required to be

filed under this chapter be filed electronically.

Section 1116. Expiration of license.

(a) Expiration.--A license shall expire on the last day of

June next succeeding the date upon which it was issued unless

the department at an earlier date suspends, surrenders or

20150SB0003PN0224 - 58 -

revokes the license.

(b) Violation.--After the expiration date of the license or

sooner if the license is suspended, surrendered or revoked, it

shall be illegal for a medical cannabis purveyor to engage

directly or indirectly in the business conducted by the medical

cannabis purveyor for which the license was issued. A licensee

who shall, after the expiration date of the license, engage in

the business conducted by the licensee either by way of

purchase, sale, distribution or in any other manner directly or

indirectly engaged in the business of dealing with medical

cannabis shall be in violation of this chapter and be subject to

the penalties provided in this chapter.

Section 1117. Administration powers and duties.

(a) Department.--The administration of this chapter is

vested in the department. The department shall adopt rules and

regulations for the enforcement of this chapter.

(b) Joint administration.--The department is authorized to

jointly administer this chapter with other provisions of the act

of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of

1971, including joint reporting of information, forms, returns,

statements, documents or other information submitted to the

department.

Section 1118. Sales without license.

(a) Penalty.--A person who shall, without being the holder

of a proper unexpired medical cannabis purveyor's license,

engage in purchasing, selling, distributing or in another manner

directly or indirectly engage in the business of dealing with

medical cannabis commits a summary offense and shall, upon

conviction, be sentenced to pay costs of prosecution and a fine

of not less than $250 nor more than $1,000, or to imprisonment

20150SB0003PN0224 - 59 -

for not more than 30 days, or both, at the discretion of the

court.

(b) Prima facie evidence.--Open display of medical cannabis

in any manner shall be prima facie evidence that the person

displaying such medical cannabis is directly or indirectly

engaging in the business of dealing medical cannabis.

Section 1119. Violations and penalties.

(a) Suspension.--The license of a person who violates this

chapter may be suspended after due notice and opportunity for a

hearing for a period of not less than five days nor more than 30

days for a first violation and shall be revoked or suspended for

any subsequent violation.

(b) Fine.--In addition to the provisions of subsection (a),

upon adjudication of a first violation, the person shall be

fined not less than $2,500 nor more than $5,000. For subsequent

violations, the person shall, upon adjudication, be fined not

less than $5,000 nor more than $15,000.

Section 1120. Property rights.

(a) Incorporation.--Subject to subsection (b), section 1285

of the act of March 4, 1971 (P.L.6, No.2), known as the Tax

Reform Code of 1971, is incorporated by reference into and shall

apply to this chapter.

(b) Alterations.--

(1) References to cigarettes in section 1285 of the Tax

Reform Code of 1971 shall apply to medical cannabis in this

chapter.

(2) References to 2,000 or more unstamped cigarettes in

section 1285 of the Tax Reform Code of 1971 shall apply to

medical cannabis worth at least $1,000 in this chapter.

(3) References to more than 200 unstamped cigarettes in

20150SB0003PN0224 - 60 -

section 1285 of the Tax Reform Code of 1971 shall apply to

medical cannabis worth at least $100 in this chapter.

Section 1121. Information exchange.

The department is authorized to exchange information with any

other Federal, State or local enforcement agency for purposes of

enforcing this chapter.

CHAPTER 51

MISCELLANEOUS PROVISIONS

Section 5101. Regulations.

(a) Requirement.--The board shall promulgate regulations as

necessary to implement this act.

(b) Temporary regulations.--In order to facilitate the

implementation of this act, regulations promulgated by the board

shall be deemed temporary regulations which shall expire not

later than two years following the publication of the temporary

regulation. Temporary regulations shall not be subject to:

(1) 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.

(2) The act of June 25, 1982 (P.L.633, No.181), known as

the Regulatory Review Act.

(3) Sections 204(b) and 301(10) of the act of October

15, 1980 (P.L.950, No.164), known as the Commonwealth

Attorneys Act.

regulations under subsection (b) shall expire two years after

the effective date of this section. Regulations adopted after

this period shall be promulgated as provided by law.

(d) Publication.--The board shall begin publishing temporary

regulations in the Pennsylvania Bulletin no later than six

20150SB0003PN0224 - 61 -

months following the effective date of this section.

Section 5102. Appropriation.

The sum of $1.3 million or as much thereof as may be

necessary is appropriated from the General Fund to the Bureau of

Professional and Occupational Affairs within the Department of

State for the start-up and initial operation of the State Board

of Medical Cannabis Licensing.

Section 5103. Applicability of other statutes.

The following acts shall apply to the board:

(1) The act of February 14, 2008 (P.L.6, No.3), known as

the Right-to-Know Law.

(2) The act of July 19, 1957 (P.L.1017, No.451), known

as the State Adverse Interest Act.

(3) 65 Pa.C.S. Chs. 7 (relating to open meetings) and 11

(relating to ethics standards and financial disclosure).

Section 5104. Repeals.

The following shall apply:

(1) Sections 4 and 13 of the act of April 14, 1972

(P.L.233, No.64), known as The Controlled Substance, Drug,

Device and Cosmetic Act, are repealed insofar as they are

inconsistent with this act.

(2) All acts and parts of acts are repealed insofar as

they are inconsistent with this act.

Section 5105. Effective date.

This act shall take effect in 60 days.

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