Regular Session 2019-2020 House Bill 2050 P.N. 3417

PRINTER'S NO. 3417

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2050

Session of

2020

INTRODUCED BY WHEATLEY, MADDEN, McNEILL, FRANKEL, KENYATTA,

McCLINTON, BURGOS, GAINEY, HARRIS, WILLIAMS, LEE, HILL-EVANS,

YOUNGBLOOD AND DALEY, MARCH 4, 2020

REFERRED TO COMMITTEE ON HEALTH, MARCH 4, 2020

AN ACT

Amending the act of April 17, 2016 (P.L.84, No.16), entitled "An

act establishing a medical marijuana program; providing for

patient and caregiver certification and for medical marijuana

organization registration; imposing duties on the Department

of Health; providing for a tax on medical marijuana

organization gross receipts; establishing the Medical

Marijuana Program Fund; establishing the Medical Marijuana

Advisory Board; establishing a medical marijuana research

program; imposing duties on the Department of Corrections,

the Department of Education and the Department of Human

Services; and providing for academic clinical research

centers and for penalties and enforcement," further providing

for title of act; providing for general provisions for act

and imposing duties on the Bureau of Liquor Control

Enforcement; in preliminary provisions for medical cannabis,

further providing for short title, for declaration of policy

and for definitions; in program, further providing for

program established, for confidentiality and public

disclosure, for lawful use of medical marijuana and for

unlawful use of medical marijuana; in practitioners, further

providing for practitioner registration, for practitioner

restrictions, for issuance of certification and for duration;

in patients, further providing for identification cards, for

caregivers, for special conditions, for contents of

identification card, for suspension and for prohibitions; in

medical marijuana organizations, further providing for

medical marijuana organizations, for permits, for granting of

permit, for application and issuance, for fees and other

requirements, for issuance, for relocation, for terms of

permit, for permit renewals, for suspension or revocation,

for convictions prohibited, for diversity goals and for

limitations on permits; in medical marijuana controls,

further providing for electronic tracking, for

grower/processors, for storage and transportation, for

laboratory and for prices; in dispensaries, further providing

for dispensing to patients and caregivers and for facility

requirements; in tax on medical marijuana, further providing

for tax on medical marijuana and for Medical Marijuana

Program Fund; in administration, further providing for

governing practice and procedure, for reports by medical

marijuana organizations, for law enforcement notification,

for evaluation, for report and for temporary regulations; in

Medical Marijuana Advisory Board, further providing for

advisory board; in offenses related to medical marijuana,

further providing for criminal diversion of medical marijuana

by practitioners, for criminal diversion of medical

marijuana, for criminal retention of medical marijuana, for

criminal diversion of medical marijuana by patient or

caregiver, for falsification of identification cards, for

adulteration of medical marijuana, for disclosure of

information prohibited, for additional penalties and for

other restrictions; in research program, further providing

for definitions, for establishment of medical marijuana

research program, for medical marijuana research program

administration, for approval, for requirements, for

restrictions, for regulations and for nonentitlement; in

academic clinical research centers and clinical registrants,

further providing for legislative findings and declaration of

policy, for clinical registrants and for research study; in

miscellaneous provisions, further providing for conflict, for

financial and employment interests, for insurers, for

protections for patients and caregivers, for schools, for

day-care centers, for notice and for applicability; providing

for adult-use cannabis; establishing the Commonwealth

Reinvestment Fund, the Student Loan Reimbursement Program,

the Mixed Income Housing Program, the After-school Program

and the Minority and Woman Cannabis Grant Program; imposing

duties on the Department of Education, the Department of

Community and Economic Development, the Pennsylvania Housing

Finance Agency; imposing penalties; making appropriations;

making repeals; and making editorial changes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The title of the act of April 17, 2016 (P.L.84,

No.16), known as the Medical Marijuana Act, is amended to read:

AN ACT

Establishing a [medical marijuana] cannabis program; providing

for patient and caregiver certification and for [medical

marijuana] cannabis organization registration; imposing

duties on the Department of Health; providing for a tax on

[medical marijuana] cannabis organization gross receipts;

establishing the Medical [Marijuana] Cannabis Program Fund;

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establishing the Medical [Marijuana] Cannabis Advisory Board;

establishing a medical [marijuana] cannabis research program;

establishing the Commonwealth Reinvestment Fund; imposing

duties on the Department of Corrections, the Department of

Education [and], the Department of Human Services, the

Pennsylvania Housing Finance Agency and the Bureau of Liquor

Control Enforcement; and providing for academic clinical

research centers and for penalties and enforcement.

Section 2. The act is amended by adding a part and a part

heading immediately before Chapter 1 of the act to read:

PART I

GENERAL PROVISIONS

CHAPTER 1

PRELIMINARY PROVISIONS

Section 101. Short title.

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

"Adult-use cannabis." Cannabis ingested for a reason other

than medical purposes.

"Adult-use cannabis dispensary." A dispensary holding a

permit from the department under this act to dispense adult-use

cannabis or cannabis products but not medical cannabis.

"Adult-use cannabis grower." A grower holding a permit from

the department under this act to grow adult-use cannabis but not

medical cannabis.

"Adult-use cannabis organization." A cannabis organization

for the dispensing, growing or processing of adult-use cannabis

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or cannabis products only and not of medical cannabis.

"Adult-use cannabis processor." A processor holding a permit

from the department under this act to process adult-use cannabis

or cannabis products but not medical cannabis.

"Cannabis." With respect to the plant of the genus cannabis,

as follows:

(1) Any of the following:

(i) The parts of the plant, whether growing or not.

(ii) The seeds of the plant.

(iii) The resin extracted from part of the plant.

(iv) Every compound, manufacture, salt, derivative,

mixture or preparation of the plant, its seeds or resin,

including cannabis concentrate.

(2) The term does not include industrial hemp or fiber

produced from the stalks, oil or cake made from the seeds of

the plant, sterilized seed of the plant that is incapable of

germination or the weight of another ingredient combined with

cannabis to prepare topical or oral administrations, food,

drink or other product.

"Cannabis product." A product that is comprised of cannabis

and other ingredients and is intended for use or consumption,

including as an edible product, ointment or tincture.

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

"Dispensary." As follows:

(1) A person, including an individual, corporation,

partnership, association, trust or other entity, or any

combination of these persons, which holds a permit from the

department to dispense medical cannabis, adult-use cannabis

or cannabis products.

(2) The term does not include:

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(i) A health care medical cannabis organization.

(ii) An academic clinical research center or

clinical registrant under Chapter 20 as it may pertain to

adult-use cannabis or cannabis products.

"Grower." As follows:

(1) A person, including an individual, corporation,

partnership, association, trust or other entity, or any

combination of these persons, which holds a permit from the

department under this act to grow medical cannabis or adult-

use cannabis.

(2) The term does not include:

(i) A health care medical cannabis organization.

(ii) An academic clinical research center or

clinical registrant under Chapter 20 as it may pertain to

adult-use cannabis or cannabis products.

"Grower/processor." As follows:

(1) A person, including an individual, corporation,

partnership, association, trust or other entity, or any

combination of these persons, which holds a permit from the

department under this act to grow and process medical

cannabis.

(2) The term does not include:

(i) A health care medical cannabis organization.

(ii) An academic clinical research center or

clinical registrant under Chapter 20 as it may pertain to

adult-use cannabis or cannabis products.

"Health care medical cannabis organization." A vertically

integrated health system approved by the department to dispense

medical cannabis or grow and process medical cannabis, or both,

in accordance with a research study under Chapter 19.

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"Medical cannabis." Cannabis for certified medical use as

specified under Part II.

"Medical cannabis dispensary." A dispensary holding a permit

from the department under this act to dispense medical cannabis

but not adult-use cannabis or cannabis products.

"Medical cannabis grower." A grower holding a permit from

the department under this act to grow medical cannabis but not

adult-use cannabis.

"Medical cannabis organization." A cannabis organization for

the dispensing, growing or processing of medical cannabis only

and not of adult-use cannabis or cannabis products.

"Medical cannabis processor." A processor holding a permit

from the department under this act to process medical cannabis

but not adult-use cannabis or cannabis products.

"Pennsylvania farm." An agricultural business incorporated

as a sole proprietorship, partnership, limited liability company

or Pennsylvania S corporation that operates an area of land and

building used for growing crops and rearing animals.

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

cannabis organization to conduct activities under this act.

"Processor." As follows:

(1) A person, including an individual, corporation,

partnership, association, trust or other entity, or any

combination of these persons, which holds a permit from the

department under this act to process medical cannabis, adult-

use cannabis or cannabis products.

(2) The term does not include:

(i) A health care medical cannabis organization.

(ii) An academic clinical research center or

clinical registrant under Chapter 20 as it may pertain to

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adult-use cannabis or cannabis products.

"Secretary." The Secretary of Health of the Commonwealth.

"Vertically integrated health system." A health care

facility licensed under the act of July 19, 1979 (P.L.130,

No.48), known as the Health Care Facilities Act, in which the

complete spectrum of care, including primary and specialty care,

hospitalization and pharmaceutical care, is provided within a

single organization.

CHAPTER 1-A

ENFORCEMENT

Section 101-A. 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:

"Bureau." The Bureau of Liquor Control Enforcement.

Section 102-A. Authority of bureau.

The bureau shall be responsible for enforcing this act,

including the development of enforcement procedures consistent

with this act, and any regulations promulgated under this act.

Officers and investigators assigned to the bureau shall have the

power and their duty shall be:

(1) To investigate whenever there are reasonable grounds

to believe that medical cannabis, adult-use cannabis or

cannabis products are being grown, processed, dispensed, sold

or used in violation of this act. If the investigation

produces evidence of the unlawful conduct under this act, the

officer involved in the investigation shall institute

criminal proceedings against a person believed to have been

criminally liable, as otherwise provided by law or rule of

court.

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(2) To arrest on view, without warrant, except in

private homes, a person actually engaged in unlawful conduct

under this act.

(3) Upon reasonable and probable cause, to search for

and seize, without warrant or process, except in private

homes, medical cannabis, adult-use cannabis or cannabis

products grown, processed, dispensed, sold or used in

violation of this act. The seized medical cannabis, adult-use

cannabis or cannabis products shall be disposed of as

provided in this chapter.

(4) To investigate and issue citations for a violation

of this act or another law of this Commonwealth relating to

medical cannabis, adult-use cannabis or cannabis products, or

a regulation adopted under this act or another law of this

Commonwealth or the Federal Government relating to medical

cannabis, adult-use cannabis or cannabis products by a

cannabis organization or other person covered by this act.

(5) To arrest a person who engages in any of the

following offenses when the offense is committed against the

officer or investigator or a person accompanying and

assisting the officer or investigator while the officer or

investigator is performing assigned duties under this act and

any regulation promulgated under this act:

(i) 18 Pa.C.S. § 2701 (relating to simple assault).

(ii) 18 Pa.C.S. § 2702 (relating to aggravated

assault).

(iii) 18 Pa.C.S. § 2705 (relating to recklessly

endangering another person).

(iv) 18 Pa.C.S. § 2706 (relating to terroristic

threats).

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(v) 18 Pa.C.S. § 2709 (relating to harassment).

(vi) 18 Pa.C.S. § 5104 (relating to resisting arrest

or other law enforcement).

(vii) 18 Pa.C.S. § 5501 (relating to riot).

(6) To serve and execute warrants issued by the proper

authorities for offenses referred to in this subsection and

to serve subpoenas.

Section 103-A. Confiscation.

Any equipment or appurtenance actually used in the commission

of the unlawful acts may be confiscated. The confiscation shall

not, in any manner, divest or impair the rights or interest of a

bona fide lienholder in the equipment or appurtenance.

Section 104-A. Prohibitions based on age.

A prohibition under this act involving an individual who is

under 21 years of age shall not apply if all of the following

apply:

(1) The individual is at least 18 years of age or older.

(2) T he individual is an officer, employee or intern of

the bureau.

(3) The individual has completed training specified by

the bureau.

(4) The individual is acting within the scope of

prescribed duties.

(5) The individual is acting under the direct control or

supervision of a bureau officer who is 21 years of age or

older.

PART II

MEDICAL CANNABIS

Section 3. Chapter 1 heading, sections 101, 102, 103, 301,

302(b), 303, 304, 401(a) introductory paragraph and (c)(2), 402,

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403(a) introductory paragraph and (4), (b)(6) and (c)(2), 405,

501(a) and (i), 502(b), 504, 508(5), 509 and 510, Chapter 6

heading, sections 601, 602, 603, 606, 607, 608, 609, 610, 612,

613, 614, 615 and 616, Chapter 7 heading, sections 701, 702, 703

introductory paragraph, (7) and (9), 704, 705, 801 and 802(a),

Chapter 9 heading, sections 901, 902, 1101, 1102, 1103, 1104,

1105 and 1107(a) and (c), Chapter 12 heading, section 1201(a)

introductory paragraph and (j), Chapter 13 heading and sections

1301, 1302, 1303, 1304, 1305(a), 1306(a), 1307(a) introductory

paragraph, (1) and (2), 1308, 1309, 1901, 1902, 1903(a), (b) and

(c)(1), 1904, 1905, 1906, 1907 and 1908 of the act are amended

to read:

CHAPTER [1] 2

PRELIMINARY PROVISIONS

Section [101. Short title.

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

Marijuana Act.] 201. Scope of part.

This part relates to medical cannabis.

Section [102] 202. Declaration of policy.

The General Assembly finds and declares as follows:

(1) Scientific evidence suggests that medical

[marijuana] cannabis is one potential therapy that may

mitigate suffering in some patients and also enhance quality

of life.

(2) The Commonwealth is committed to patient safety.

Carefully regulating the program which allows access to

medical [marijuana] cannabis will enhance patient safety

while research into its effectiveness continues.

(3) It is the intent of the General Assembly to:

(i) Provide a program of access to medical

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[marijuana] cannabis which balances the need of patients

to have access to the latest treatments with the need to

promote patient safety.

(ii) Provide a safe and effective method of delivery

of medical [marijuana] cannabis to patients.

(iii) Promote high quality research into the

effectiveness and utility of medical [marijuana]

cannabis.

(4) It is the further intention of the General Assembly

that any Commonwealth-based program to provide access to

medical [marijuana] cannabis serve as a temporary measure,

pending Federal approval of and access to medical [marijuana]

cannabis through traditional medical and pharmaceutical

avenues.

Section [103] 203. Definitions.

The following words and phrases when used in this [act] part

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Advisory board." The advisory board established under

section 1201.

"Caregiver." The individual designated by a patient or, if

the patient is under 18 years of age, an individual under

section 506(2), to deliver medical [marijuana] cannabis.

"Certified medical use." The acquisition, possession, use or

transportation of medical [marijuana] cannabis by a patient, or

the acquisition, possession, delivery, transportation or

administration of medical [marijuana] cannabis by a caregiver,

for use as part of the treatment of the patient's serious

medical condition, as authorized in a certification under this

[act] part, including enabling the patient to tolerate treatment

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for the serious medical condition.

"Certified registered nurse practitioner." As defined in

section 2 of the act of May 22, 1951 (P.L.317, No.69), known as

The Professional Nursing Law.

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

persons acting in concert of a controlling interest in an

applicant or permittee either all at one time or over the span

of a 12-consecutive-month period.

"Continuing care." Treating a patient, in the course of

which the practitioner has completed a full assessment of the

patient's medical history and current medical condition,

including an in-person consultation with the patient.

"Controlling interest." As follows:

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

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

members of the board of directors or other governing board or

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

securities of the publicly traded entity.

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

security in the entity.

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

"Dispensary." A person, including a natural person,

corporation, partnership, association, trust or other entity, or

any combination thereof, which holds a permit issued by the

department to dispense medical marijuana. The term does not

include a health care medical marijuana organization under

Chapter 19.]

"Family or household member." As defined in 23 Pa.C.S. §

6102 (relating to definitions).

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

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

than a financial institution.

"Financial institution." A bank, a national banking

association, a bank and trust company, a trust company, a

savings and loan association, a building and loan association, a

mutual savings bank, a credit union or a savings bank.

"Form of medical [marijuana] cannabis." The characteristics

of the medical [marijuana] cannabis recommended or limited for a

particular patient, including the method of consumption and any

particular dosage, strain, variety and quantity or percentage of

medical [marijuana] cannabis or particular active ingredient.

"Fund." The Medical [Marijuana] C annabis Program Fund

established in section 902.

["Grower/processor." A person, including a natural person,

corporation, partnership, association, trust or other entity, or

any combination thereof, which holds a permit from the

department under this act to grow and process medical marijuana.

The term does not include a health care medical marijuana

organization under Chapter 19.]

"Identification card." A document issued under section 501

that authorizes access to medical [marijuana] cannabis under

this [act] part.

"Individual dose." A single measure of medical [marijuana]

cannabis.

["Medical marijuana." Marijuana for certified medical use as

set forth in this act.

"Medical marijuana organization." A dispensary or a

grower/processor. The term does not include a health care

medical marijuana organization under Chapter 19.]

"Patient." An individual who:

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(1) has a serious medical condition;

(2) has met the requirements for certification under

this [act] part; and

(3) is a resident of this Commonwealth.

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

medical marijuana organization to conduct activities under this

act.]

"Physician assistant." As defined in section 2 of the act of

December 20, 1985 (P.L.457, No.112), known as the Medical

Practice Act of 1985, and section 2 of the act of October 5,

1978 (P.L.1109, No.261), known as the Osteopathic Medical

Practice Act.

"Practitioner." A physician who is registered with the

department under section 401.

"Prescription drug monitoring program." The Achieving Better

Care by Monitoring All Prescriptions Program (ABC-MAP).

"Principal." An officer, director or person who directly

owns a beneficial interest in or ownership of the securities of

an applicant or permittee, a person who has a controlling

interest in an applicant or permittee or who has the ability to

elect the majority of the board of directors of an applicant or

permittee or otherwise control an applicant or permittee, other

than a financial institution.

"Registry." The registry established by the department for

practitioners.

["Secretary." The Secretary of Health of the Commonwealth.]

"Security." As defined in section 102(t) of the act of

December 5, 1972 (P.L.1280, No.284), known as the Pennsylvania

Securities Act of 1972.

"Serious medical condition." Any of the following:

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(1) Cancer.

(2) Positive status for human immunodeficiency virus or

acquired immune deficiency syndrome.

(3) Amyotrophic lateral sclerosis.

(4) Parkinson's disease.

(5) Multiple sclerosis.

(6) Damage to the nervous tissue of the spinal cord with

objective neurological indication of intractable spasticity.

(7) Epilepsy.

(8) Inflammatory bowel disease.

(9) Neuropathies.

(10) Huntington's disease.

(11) Crohn's disease.

(12) Post-traumatic stress disorder.

(13) Intractable seizures.

(14) Glaucoma.

(15) Sickle cell anemia.

(16) Severe chronic or intractable pain of neuropathic

origin or severe chronic or intractable pain in which

conventional therapeutic intervention and opiate therapy is

contraindicated or ineffective.

(17) Autism.

"Terminally ill." A medical prognosis of life expectancy of

approximately one year or less if the illness runs its normal

course.

Section 301. Program established.

(a) Establishment.--A medical [marijuana] cannabis program

for patients suffering from serious medical conditions is

established. The program shall be implemented and administered

by the department. The department shall:

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(1) Issue permits to medical [marijuana] cannabis

organizations to authorize them to grow, process or dispense

medical [marijuana] cannabis and ensure their compliance with

this [act] part.

(2) Register practitioners and ensure their compliance

with this [act] part.

(3) Have regulatory [and enforcement] authority over the

growing, processing, sale and use of medical [marijuana]

cannabis in this Commonwealth.

(4) Establish and maintain an electronic database to

include activities and information relating to medical

[marijuana] cannabis organizations, certifications and

identification cards issued, practitioner registration and

electronic tracking of all medical [marijuana] cannabis as

required under this [act] part to include:

(i) Ensurance that medical [marijuana] cannabis is

not diverted or otherwise used for unlawful purposes by a

practitioner or medical [marijuana] cannabis

organization.

(ii) Ability to establish the authenticity of

identification cards.

(iii) Recording recommended forms of medical

[marijuana] cannabis provided in a certification filed by

the practitioner.

(iv) Monitoring all growth, transfer, possession,

processing, testing and dispensing of medical [marijuana]

cannabis in this Commonwealth.

(v) The tracking system under section 701 must

include information under section 801(a) and any other

information required by the department to be used by the

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department and dispensaries to enable a dispensary to

lawfully provide medical [marijuana] cannabis. The

tracking system and database shall be capable of

providing information in real time. The database shall be

capable of receiving information from a dispensary

regarding the disbursement of medical [marijuana]

cannabis to patients and caregivers. This information

shall be immediately accessible to the department and

other dispensaries to inhibit diversion and ensure

compliance with this [act] part.

(5) Maintain a directory of patients and caregivers

approved to use or assist in the administration of medical

[marijuana] cannabis within the department's database.

(6) Develop a four-hour training course for physicians,

pharmacists, certified registered nurse practitioners and

physician assistants regarding the latest scientific research

on medical [marijuana] cannabis, including the risks and

benefits of medical [marijuana] cannabis, and other

information deemed necessary by the department. Successful

completion of the course shall be approved as continuing

education credits as determined by:

(i) The State Board of Medicine and the State Board

of Osteopathic Medicine.

(ii) The State Board of Pharmacy.

(iii) The State Board of Nursing.

(7) Develop a two-hour course for the principals and

employees of a medical [marijuana] cannabis organization who

either have direct contact with patients or caregivers or who

physically handle medical [marijuana] cannabis. Employees

must successfully complete the course no later than 90 days

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after commencing employment. Principals must successfully

complete the course prior to commencing initial operation of

the medical [marijuana] cannabis organization. The subject

matter of the course shall include the following:

(i) Methods to recognize and report unauthorized

activity, including diversion of medical [marijuana]

cannabis for unlawful purposes and falsification of

identification cards.

(ii) Proper handling of medical [marijuana] cannabis

and recordkeeping.

(iii) Any other subject required by the department.

(8) [Develop enforcement procedures, including announced

and unannounced inspections of facilities of the

grower/processors and dispensaries and all records of the

medical marijuana organizations.] (Reserved).

(9) Establish a program to authorize the use of medical

[marijuana] cannabis to conduct medical research relating to

the use of medical [marijuana] cannabis to treat serious

medical conditions, including the collection of data and the

provision of research grants.

(10) Establish and maintain public outreach programs

about the medical [marijuana] cannabis program, including:

(i) A dedicated telephone number for patients,

caregivers and members of the public to obtain basic

information about the dispensing of medical [marijuana]

cannabis under this [act] part.

(ii) A publicly accessible Internet website with

similar information.

(11) Collaborate as necessary with other Commonwealth

agencies or contract with third parties as necessary to carry

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out the provisions of this [act] part.

(12) Determine the minimum number and type of medical

[marijuana] cannabis products to be produced by a

[grower/processor] processor and dispensed by a dispensary.

(13) Develop recordkeeping requirements for all books,

papers, any electronic database or tracking system data and

other information of a medical [marijuana] cannabis

organization. Information shall be retained for a minimum

period of four years unless otherwise provided by the

department.

(14) Restrict the advertising and marketing of medical

[marijuana] cannabis, which shall be consistent with the

Federal regulations governing prescription drug advertising

and marketing.

(b) Regulations.--The department shall promulgate all

regulations necessary to carry out the provisions of this [act]

part.

Section 302. Confidentiality and public disclosure.

* * *

(b) Public information.--The following records are public

records and shall be subject to the Right-to-Know Law:

(1) Applications for permits submitted by medical

[marijuana] cannabis organizations.

(2) The names, business addresses and medical

credentials of practitioners authorized to provide

certifications to patients to enable them to obtain and use

medical [marijuana] cannabis in this Commonwealth. All other

practitioner registration information shall be confidential

and exempt from public disclosure under the Right-to-Know

Law.

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(3) Information relating to penalties or other

disciplinary actions taken against a medical [marijuana]

cannabis organization or practitioner by the department for

violation of this [act] part.

Section 303. Lawful use of medical [marijuana] cannabis.

(a) General rule.--Notwithstanding any provision of law to

the contrary, use or possession of medical [marijuana] cannabis

as set forth in this [act] part is lawful within this

Commonwealth.

(b) Requirements.--The lawful use of medical [marijuana]

cannabis is subject to the following:

(1) Medical [marijuana] cannabis may only be dispensed

to:

(i) a patient who receives a certification from a

practitioner and is in possession of a valid

identification card issued by the department; and

(ii) a caregiver who is in possession of a valid

identification card issued by the department.

(2) Subject to regulations promulgated under this [act]

part, medical [marijuana] cannabis may only be dispensed to a

patient or caregiver in the following forms:

(i) pill;

(ii) oil;

(iii) topical forms, including gels, creams or

ointments;

(iv) a form medically appropriate for administration

by vaporization or nebulization, excluding dry leaf or

plant form until dry leaf or plant forms become

acceptable under regulations adopted under section 1202;

(v) tincture; or

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(vi) liquid.

(3) Unless otherwise provided in regulations adopted by

the department under section 1202, medical [marijuana]

cannabis may not be dispensed to a patient or a caregiver in

dry leaf or plant form.

(4) An individual may not act as a caregiver for more

than five patients.

(5) A patient may designate up to two caregivers at any

one time.

(6) Medical [marijuana] cannabis that has not been used

by the patient shall be kept in the original package in which

it was dispensed.

(7) A patient or caregiver shall possess an

identification card whenever the patient or caregiver is in

possession of medical [marijuana] cannabis.

(8) Products packaged by a [grower/processor] medical

cannabis processor or sold by a medical cannabis dispensary

shall only be identified by the name of the

[grower/processor] medical cannabis processor, the name of

the medical cannabis dispensary, the form and species of

medical [marijuana] cannabis, the percentage of

tetrahydrocannabinol and cannabinol contained in the product

and any other labeling required by the department.

Section 304. Unlawful use of medical [marijuana] cannabis.

(a) General rule.--Except as provided in section 303,

section 704, Chapter 19 or Chapter 20, the use of medical

[marijuana] cannabis is unlawful and shall, in addition to any

other penalty provided by law, be deemed a violation of the act

of April 14, 1972 (P.L.233, No.64), known as The Controlled

Substance, Drug, Device and Cosmetic Act.

20200HB2050PN3417 - 21 -

(b) Unlawful use described.--It is unlawful to:

(1) Smoke medical [marijuana] cannabis.

(2) Except as provided under subsection (c), incorporate

medical [marijuana] cannabis into edible form.

(3) Grow medical [marijuana] cannabis unless the

[grower/processor] medical cannabis grower has received a

permit from the department under this [act] part.

(4) Grow or dispense medical [marijuana] cannabis unless

authorized as a health care medical [marijuana] cannabis

organization [under Chapter 19].

(5) Dispense medical [marijuana] cannabis unless the

medical cannabis dispensary has received a permit from the

department under this [act] part.

[act] part shall be construed to preclude the incorporation of

medical [marijuana] cannabis into edible form by a patient or a

caregiver in order to aid ingestion of the medical [marijuana]

cannabis by the patient.

Section 401. Practitioner registration.

(a) Eligibility.--A physician included in the registry is

authorized to issue certifications to patients to use medical

[marijuana] cannabis. To be eligible for inclusion in the

registry:

* * *

the registry shall have an ongoing responsibility to immediately

notify the department in writing if the practitioner knows or

has reason to know that any of the following is true with

respect to a patient for whom the practitioner has issued a

certification:

20200HB2050PN3417 - 22 -

* * *

(2) Medical [marijuana] cannabis would no longer be

therapeutic or palliative.

* * *

Section 402. Practitioner restrictions.

(a) Practices prohibited.--The following apply with respect

to practitioners:

(1) A practitioner may not accept, solicit or offer any

form of remuneration from or to a prospective patient,

patient, prospective caregiver, caregiver or medical

[marijuana] cannabis organization, including an employee,

financial backer or principal, to certify a patient, other

than accepting a fee for service with respect to the

examination of the prospective patient to determine if the

prospective patient should be issued a certification to use

medical [marijuana] cannabis.

(2) A practitioner may not hold a direct or economic

interest in a medical [marijuana] cannabis organization.

(3) A practitioner may not advertise the practitioner's

services as a practitioner who can certify a patient to

receive medical [marijuana] cannabis.

(b) Unprofessional conduct.--A practitioner who violates

subsection (a) shall not be permitted to issue certifications to

patients. The practitioner shall be removed from the registry.

be imposed under this [act] part, a violation of subsection (a)

or section 403(e) shall be deemed unprofessional conduct under

section 41(8) of the act of December 20, 1985 (P.L.457, No.112),

known as the Medical Practice Act of 1985, or section 15(a)(8)

of the act of October 5, 1978 (P.L.1109, No.261), known as the

20200HB2050PN3417 - 23 -

Osteopathic Medical Practice Act, and shall subject the

practitioner to discipline by the State Board of Medicine or the

State Board of Osteopathic Medicine, as appropriate.

Section 403. Issuance of certification.

(a) Conditions for issuance.--A certification to use medical

[marijuana] cannabis may be issued by a practitioner to a

patient if all of the following requirements are met:

* * *

(4) In the practitioner's professional opinion and

review of past treatments, the practitioner determines the

patient is likely to receive therapeutic or palliative

benefit from the use of medical [marijuana] cannabis.

(b) Contents.--The certification shall include:

* * *

(6) Any requirement or limitation concerning the

appropriate form of medical [marijuana] cannabis and

limitation on the duration of use, if applicable, including

whether the patient is terminally ill.

prescription drug monitoring program prior to:

* * *

(2) Recommending a change of amount or form of medical

[marijuana] cannabis.

* * *

Section 405. Duration.

Receipt of medical [marijuana] cannabis by a patient or

caregiver from a medical cannabis dispensary may not exceed a

30-day supply of individual doses. During the last seven days of

any 30-day period during the term of the identification card, a

patient may obtain and possess a 30-day supply for the

20200HB2050PN3417 - 24 -

subsequent 30-day period. Additional 30-day supplies may be

provided in accordance with this section for the duration of the

authorized period of the identification card unless a shorter

period is indicated on the certification.

Section 501. Identification cards.

(a) Issuance.--The department may issue an identification

card to a patient who has a certification approved by the

department and to a caregiver designated by the patient. An

identification card issued to a patient shall authorize the

patient to obtain and use medical [marijuana] cannabis as

authorized by this [act] part. An identification card issued to

a caregiver shall authorize the caregiver to obtain medical

[marijuana] cannabis on behalf of the patient.

* * *

(i) Lost or defaced card.--In the event of a lost, stolen,

destroyed or illegible identification card, the patient or

caregiver shall apply to the department within 10 business days

of discovery of the loss or defacement of the card for a

replacement card. The application for a replacement card shall

be on a form furnished by the department and accompanied by a

$25 fee. The department may establish higher fees for issuance

of second and subsequent replacement identification cards. The

department may waive or reduce the fee in cases of demonstrated

financial hardship. The department shall issue a replacement

identification card as soon as practicable. A patient or

caregiver may not obtain medical [marijuana] cannabis until the

department issues the replacement card.

Section 502. Caregivers.

* * *

(b) Criminal history.--A caregiver shall submit fingerprints

20200HB2050PN3417 - 25 -

for the purpose of obtaining criminal history record checks, and

the Pennsylvania State Police or its authorized agent shall

submit the fingerprints to the Federal Bureau of Investigation

for the purpose of verifying the identity of the applicant and

obtaining a current record of any criminal arrests and

convictions. Any criminal history record information relating to

a caregiver obtained under this section by the department may be

interpreted and used by the department only to determine the

applicant's character, fitness and suitability to serve as a

caregiver under this [act] part. The department shall also

review the prescription drug monitoring program relating to the

caregiver. The department shall deny the application of a

caregiver who has been convicted of a criminal offense that

occurred within the past five years relating to the sale or

possession of drugs, narcotics or controlled substances. The

department may deny an application if the applicant has a

history of drug abuse or of diverting controlled substances or

illegal drugs.

Section 504. Special conditions.

The following apply:

(1) If the practitioner states in the certification

that, in the practitioner's professional opinion, the patient

would benefit from medical [marijuana] cannabis only until a

specified earlier date, [then] the identification card shall

expire on that date.

(2) If the certification so provides, the identification

card shall state any requirement or limitation by the

practitioner as to the form of medical [marijuana] cannabis

for the patient.

Section 508. Contents of identification card.

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An identification card shall contain the following:

* * *

(5) Any requirement or limitation set by the

practitioner as to the form of medical [marijuana] cannabis.

* * *

Section 509. Suspension.

If a patient or caregiver intentionally, knowingly or

recklessly violates any provision of this [act] part as

determined by the department, the identification card of the

patient or caregiver may be suspended or revoked. The suspension

or revocation shall be in addition to any criminal or other

penalty that may apply.

Section 510. Prohibitions.

The following prohibitions shall apply:

(1) A 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) Chemicals which require a permit issued by the

Federal Government or a state government or an agency of

the Federal Government or a state government.

(ii) High-voltage electricity or any other public

utility.

(2) A patient may not perform any employment duties at

heights or in confined spaces, including, but not limited to,

mining while under the influence of medical [marijuana]

cannabis.

(3) A patient may be prohibited by an employer from

performing any task which the employer deems life-

threatening, to either the employee or any of the employees

20200HB2050PN3417 - 27 -

of the employer, while under the influence of medical

[marijuana] cannabis. The prohibition shall not be deemed an

adverse employment decision even if the prohibition results

in financial harm for the patient.

(4) A patient may be prohibited by an employer from

performing any duty which could result in a public health or

safety risk while under the influence of medical [marijuana]

cannabis. The prohibition shall not be deemed an adverse

employment decision even if the prohibition results in

financial harm for the patient.

CHAPTER 6

MEDICAL [MARIJUANA] CANNABIS ORGANIZATIONS

Section 601. Medical [marijuana] cannabis organizations.

The following entities shall be authorized to receive a

permit to operate as a medical [marijuana] cannabis organization

to grow, process or dispense medical [marijuana] cannabis:

[(1) Grower/processors.

(2) Dispensaries.] (1 ) Medical cannabis growers.

(2 ) Medical cannabis processors.

(3) Grower/processors.

(4 ) Medical cannabis dispensaries.

Section 602. Permits.

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

dispensary permit] permit as a medical cannabis grower, medical

cannabis processor, grower/processor or medical cannabis

dispensary to grow, process or dispense medical [marijuana]

cannabis shall be in a form and manner prescribed by the

department and shall include:

(1) Verification of all principals, operators, financial

backers or employees of a medical [marijuana] cannabis

20200HB2050PN3417 - 28 -

grower, medical cannabis processor, grower/processor or

medical cannabis dispensary.

(2) A description of responsibilities as a principal,

operator, financial backer or employee.

(3) Any release necessary to obtain information from

governmental agencies, employers and other organizations.

(4) A criminal history record check. Medical [marijuana]

c annabis organizations applying for a permit shall submit

fingerprints of principals, financial backers, operators and

employees to the Pennsylvania State Police for the purpose of

obtaining criminal history record checks and the Pennsylvania

State Police or its authorized agent shall submit the

fingerprints to the Federal Bureau of Investigation for the

purpose of verifying the identity of the principals,

financial backers, operators and employees and obtaining a

current record of any criminal arrests and convictions. Any

criminal history record information relating to principals,

financial backers, operators and employees obtained under

this section by the department may be interpreted and used by

the department only to determine the principal's, financial

backer's, operator's and employee's character, fitness and

suitability to serve as a principal, financial backer,

operator and employee under this [act] part. This paragraph

shall not apply to an owner of securities in a publicly

traded corporation if the department determines that the

owner of the securities is not substantially involved in the

activities of the medical [marijuana] cannabis organization.

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

other authorization obtained in another jurisdiction,

including any suspensions, revocations or discipline in that

20200HB2050PN3417 - 29 -

jurisdiction.

(6) A description of the business activities in which it

intends to engage as a medical [marijuana] cannabis

organization.

(7) A statement that the applicant:

(i) Is of good moral character. For purposes of this

subparagraph, an applicant shall include each financial

backer, operator, employee and principal of the medical

[marijuana] cannabis organization.

(ii) Possesses the ability to obtain in an

expeditious manner the right to use sufficient land,

buildings and other premises and equipment to properly

carry on the activity described in the application and

any proposed location for a facility.

(iii) Is able to maintain effective security and

control to prevent diversion, abuse and other illegal

conduct relating to medical [marijuana] cannabis.

(iv) Is able to comply with all applicable

Commonwealth laws and regulations relating to the

activities in which it intends to engage under this [act]

part.

(8) The name, residential address and title of each

financial backer and principal of the applicant. Each

individual, or lawful representative of a legal entity, shall

submit an affidavit with the application setting forth:

(i) Any position of management or ownership during

the preceding 10 years of a controlling interest in any

other business, located inside or outside this

Commonwealth, manufacturing or distributing controlled

substances.

20200HB2050PN3417 - 30 -

(ii) Whether the person or business has been

convicted of a criminal offense graded higher than a

summary offense or has had a permit relating to medical

[marijuana] cannabis suspended or revoked in any

administrative or judicial proceeding.

(9) Any other information the department may require.

(a.1) Pennsylvania farms.--

(1) A medical cannabis grower may contract with a

Pennsylvania farm to use the land and buildings of the

Pennsylvania farm to grow medical cannabis. The applicant for

a medical cannabis grower shall include all applicable

information required under subsection (a) for the

Pennsylvania farm.

(2) A medical cannabis processor may contract with a

Pennsylvania farm to use the land and buildings of the

Pennsylvania farm to process medical cannabis. The applicant

for a medical cannabis processor shall include all applicable

information required under subsection (a) for the

Pennsylvania farm.

(3) A grower/processor may contract with a Pennsylvania

farm to use the land and buildings of the Pennsylvania farm

to grow and process medical cannabis. The applicant for a

grower/processor shall include all applicable information

required under subsection (a) for the Pennsylvania farm.

(4) Nothing in this subsection shall be construed to

classify a medical cannabis grower as a Pennsylvania farm

simply because the medical cannabis grower operates an area

of land and building used for growing medical cannabis.

(b) Notice.--An application shall include notice that a

false statement made in the application is punishable under the

20200HB2050PN3417 - 31 -

applicable provisions of 18 Pa.C.S. Ch. 49 (relating to

falsification and intimidation).

Section 603. Granting of permit.

(a) General rule.--The department may grant or deny a permit

to a medical cannabis grower, medical cannabis processor,

grower/processor or medical cannabis dispensary.

(a.1) Determination.--In making a decision under subsection

(a), the department shall determine that:

(1) The applicant will maintain effective control of and

prevent diversion of medical [marijuana] cannabis.

(2) The applicant will comply with all applicable laws

of this Commonwealth.

(3) The applicant is ready, willing and able to properly

carry on the activity for which a permit is sought.

(4) The applicant possesses the ability to obtain in an

expeditious manner sufficient land, buildings and equipment

to properly grow, process or dispense medical [marijuana]

cannabis.

(5) It is in the public interest to grant the permit.

(6) The applicant, including the financial backer or

principal, is of good moral character and has the financial

fitness necessary to operate.

(7) The applicant is able to implement and maintain

security, tracking, recordkeeping and surveillance systems

relating to the acquisition, possession, growth, manufacture,

sale, delivery, transportation, distribution or the

dispensing of medical [marijuana] cannabis as required by the

department.

(8) The applicant satisfies any other conditions as

determined by the department.

20200HB2050PN3417 - 32 -

(b) Nontransferability.--A permit issued under this chapter

shall be nontransferable.

a revocable privilege.

(d) Regions.--The department shall establish a minimum of

three regions within this Commonwealth for the purpose of

granting permits to medical cannabis growers, medical cannabis

processors, grower/processors and medical cannabis dispensaries

and enforcing this [act] part. The department shall approve

permits for medical cannabis growers, medical cannabis

processors, grower/processors and medical cannabis dispensaries

in a manner which will provide an adequate amount of medical

[marijuana] cannabis to patients and caregivers in all areas of

this Commonwealth. The department shall consider the following

when issuing a permit:

(1) Regional population.

(2) The number of patients suffering from serious

medical conditions.

(3) The types of serious medical conditions.

(4) Access to public transportation.

(5) Any other factor the department deems relevant.

Section 606. Application and issuance.

(a) Duty to report.--An applicant to be a medical cannabis

grower, medical cannabis processor, grower/processor or to

operate a medical cannabis dispensary is under a continuing duty

to:

(1) Report to the department any change in facts or

circumstances reflected in the application or any newly

discovered or occurring fact or circumstance which is

required to be included in the application, including a

20200HB2050PN3417 - 33 -

change in control of the medical [marijuana] cannabis

organization.

(2) Report to law enforcement, within 24 hours, any loss

or theft of medical [marijuana] cannabis.

(3) Submit to announced or unannounced inspections by

the department of the facilities for growing, processing,

dispensing or selling medical [marijuana] cannabis, including

all records of the organization.

(b) Additional information.--If the department is not

satisfied that the applicant should be issued a permit, the

department shall notify the applicant in writing of the factors

for which further documentation is required. Within 30 days of

the receipt of the notification, the applicant may submit

additional material to the department.

Section 607. Fees and other requirements.

The following apply:

(1) For a grower/processor:

(i) An initial application fee in the amount of

[$10,000] $1,500 shall be paid. The fee is nonrefundable.

(ii) A fee for a permit as a grower/processor in the

amount of [$200,000] $10,000 shall be paid. The permit

shall be valid for one year. Applicants shall submit the

permit fee at the time of submission of the application.

The fee shall be returned if the permit is not granted.

(iii) A renewal fee for the permit as a

grower/processor in the amount of [$10,000] $5,000 shall

be paid and shall cover renewal for all locations. The

renewal fee shall be returned if the renewal is not

granted.

(iv) An application to renew a permit must be filed

20200HB2050PN3417 - 34 -

with the department not more than six months nor less

than four months prior to expiration.

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

money order.

[(vi) Before issuing an initial permit under this

paragraph, the department shall verify that the applicant

has at least $2,000,000 in capital, $500,000 of which

must be on deposit with a financial institution.]

(2) For a medical cannabis dispensary:

(i) An initial application fee in the amount of

$5,000 shall be paid. The fee is nonrefundable.

(ii) A permit fee for a medical cannabis dispensary

shall be $30,000 for each location. The period of the

permit is one year. An applicant shall submit the permit

fee at the time of submission of the application. The fee

shall be returned if the application is not granted.

(iii) A renewal fee for the permit as a medical

cannabis dispensary in the amount of $5,000 shall be

paid. The fee shall be returned if the renewal is not

granted and shall cover renewal for all locations.

(iv) An application to renew a permit must be filed

with the department not more than six months nor less

than four months prior to expiration.

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

money order.

[(vi) Before issuing an initial permit under this

paragraph, the department shall verify that the applicant

has at least $150,000 in capital, which must be on

deposit with a financial institution.]

(2.1) For a medical cannabis grower:

20200HB2050PN3417 - 35 -

(i) An initial application fee in the amount of $750

shall be paid. The fee is nonrefundable.

(ii) A fee for a permit as a medical cannabis grower

in the amount of $5,000 shall be paid. The permit shall

be valid for one year. Applicants shall submit the permit

fee at the time of submission of the application. The fee

shall be returned if the permit is not granted.

(iii) A renewal fee for the permit as a medical

cannabis grower in the amount of $2,500 shall be paid and

shall cover renewal for all locations. The renewal fee

shall be returned if the renewal is not granted.

(iv) An application to renew a permit must be filed

with the department not more than six months nor less

than four months prior to expiration.

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

money order.

(2.2) For a medical cannabis processor:

(i) An initial application fee in the amount of $750

shall be paid. The fee is nonrefundable.

(ii) A fee for a permit as a medical cannabis

processor in the amount of $5,000 shall be paid. The

permit shall be valid for one year. Applicants shall

submit the permit fee at the time of submission of the

application. The fee shall be returned if the permit is

not granted.

(iii) A renewal fee for the permit as a medical

cannabis processor in the amount of $2,500 shall be paid

and shall cover renewal for all locations. The renewal

fee shall be returned if the renewal is not granted.

(iv) An application to renew a permit must be filed

20200HB2050PN3417 - 36 -

with the department not more than six months nor less

th an four months prior to expiration.

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

money order.

(3) A fee of $250 shall be required when amending the

application to indicate relocation within this Commonwealth

or the addition or deletion of approved activities by the

medical [marijuana] cannabis organization.

(4) Fees payable under this section shall be deposited

into the fund.

Section 608. Issuance.

A permit issued by the department to a medical [marijuana]

cannabis organization shall be effective only for that

organization and shall specify the following:

(1) The name and address of the medical [marijuana]

cannabis organization.

(2) The activities of the medical [marijuana] cannabis

organization permitted under this [act] part.

(3) The land, buildings, facilities or location to be

used by the medical [marijuana] cannabis organization.

(4) Any other information required by the department.

Section 609. Relocation.

The department may approve an application from a medical

[marijuana] cannabis organization to relocate within this

Commonwealth or to add or delete activities or facilities.

Section 610. Terms of permit.

A permit issued by the department under this part shall be

valid for one year from the date of issuance.

Section 612. Permit renewals.

(a) Renewal.--An application for renewal shall include the

20200HB2050PN3417 - 37 -

following information:

(1) Any material change in the information provided by

the medical [marijuana] cannabis organization in a prior

application or renewal of a permit.

(2) Any charge or initiated, pending or concluded

investigation, during the period of the permit, by any

governmental or administrative agency with respect to:

(i) any incident involving the theft, loss or

possible diversion of medical [marijuana] cannabis grown,

processed or dispensed by the applicant; and

(ii) compliance by the applicant with the laws of

this Commonwealth with respect to any substance listed in

section 4 of the act of April 14, 1972 (P.L.233, No.64),

known as The Controlled Substance, Drug, Device and

Cosmetic Act.

(b) Approval.--The department shall renew a permit unless

the department determines that:

(1) The applicant is unlikely to maintain or be able to

maintain effective control against diversion of medical

[marijuana] cannabis.

(2) The applicant is unlikely to comply with all laws of

this Commonwealth applicable to the activities in which it

may engage under the permit.

specify in detail how the applicant has not satisfied the

department's requirements for renewal. Within 30 days of the

department's decision, the applicant may submit additional

material to the department or demand a hearing, or both. If a

hearing is demanded, the department shall fix a date as soon as

practicable.

20200HB2050PN3417 - 38 -

Section 613. Suspension or revocation.

The department may suspend or revoke a medical [marijuana]

cannabis organization permit if:

(1) The department has evidence that the medical

[marijuana] cannabis organization has failed to maintain

effective control against diversion of medical [marijuana]

cannabis.

(2) The medical cannabis organization violates any

provision of this [act] part or a regulation of the

department.

(3) The medical cannabis organization has intentionally,

knowingly, recklessly or negligently failed to comply with

applicable laws of this Commonwealth relating to medical

[marijuana] cannabis.

Section 614. Convictions prohibited.

The following individuals may not hold volunteer positions or

positions with remuneration in or be affiliated with a medical

[marijuana] cannabis organization, including a clinical

registrant under Chapter 20, in any way if the individual has

been convicted of any criminal offense related to the sale or

possession of illegal drugs, narcotics or controlled substances:

(1) Financial backers.

(2) Principals.

(3) Employees.

Section 615. Diversity goals.

(a) Goals.--It is the intent and goal of the General

Assembly that the department promote diversity and the

participation by diverse groups in the activities authorized

under this [act] part. In order to further this goal, the

department shall adopt and implement policies ensuring the

20200HB2050PN3417 - 39 -

following:

(1) That diverse groups are accorded equal opportunity

in the permitting process.

(2) That permittees promote the participation of diverse

groups in their operations by affording equal access to

employment opportunities.

(b) Duties of department.--To facilitate participation by

diverse groups in the activities authorized under this [act]

part, the department shall:

(1) Conduct necessary and appropriate outreach

including, if necessary, consulting with other Commonwealth

agencies to identify diverse groups who may qualify for

participation in activities under this [act] part.

(2) Provide sufficient and continuous notice of the

participation opportunities afforded under this [act] part by

publishing notice on the department's publicly accessible

Internet website.

(3) Include in the applications for permit under this

[act] part language to encourage applicants to utilize and

give consideration to diverse groups for contracting or

professional services opportunities.

thereafter, the department shall submit a report to the

chairperson and minority chairperson of the [Public Health and

Welfare] Health and Human Services Committee of the Senate and

the chairperson and minority chairperson of the Health Committee

of the House of Representatives summarizing the participation

and utilization of diverse groups in the activities authorized

under this [act] part. The report shall include:

(1) The participation level, by percentage, of diverse

20200HB2050PN3417 - 40 -

groups in the activities authorized under this [act] part.

(2) A summary of how diverse groups are utilized by

permittees, including in the provision of goods or services.

(3) Any other information the department deems

appropriate.

(d) Definitions.--The following words and phrases when used

in this section shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Disadvantaged business." As defined in 74 Pa.C.S. § 303(b)

(relating to diverse business participation).

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

business, women-owned business, service-disabled veteran-owned

small business or veteran-owned small business that has been

certified by a third-party certifying organization.

"Minority-owned business." As defined in 74 Pa.C.S. §

303(b).

"Service-disabled veteran-owned small business." As defined

in 51 Pa.C.S. § 9601 (relating to definitions).

"Third-party certifying organization." As defined in 74

Pa.C.S. § 303(b).

"Veteran-owned small business." As defined in 51 Pa.C.S. §

9601.

"Women-owned business." As defined in 74 Pa.C.S. § 303(b).

Section 616. Limitations on permits.

The following limitations apply to approval of permits for

medical cannabis growers, medical cannabis process ors,

grower/processors and medical cannabis dispensaries:

(1) The department may not initially issue permits to

more than 25 [growers/processors] grower/processors.

(1.1) The department may not initially issue permits to

20200HB2050PN3417 - 41 -

more than 25 medical cannabis grower s.

(1.2) The department may not initially issue permits to

more than 25 medical cannabis process ors.

(2) The department may not initially issue permits to

more than 50 medical cannabis dispensaries. Each medical

cannabis dispensary may provide medical [marijuana] cannabis

at no more than three separate locations.

(3) The department may not issue more than five

individual medical cannabis dispensary permits to one person.

(4) The department may not issue more than one

individual [grower/processor] medical cannabis grower permit

to one person.

(4.1) The department may not issue more than one

individual medical cannabis process or permit to one person.

(5) No more than five grower/processors may be issued

permits as medical cannabis dispensaries. If the number of

[growers/processors] grower/processors is increased under

section 1202, no more than 20% of the total number of

[growers/processors] medical cannabis growers or medical

cannabis processors may also be issued permits as medical

cannabis dispensaries.

(6) A medical cannabis dispensary may only obtain

medical [marijuana] cannabis from a medical cannabis grower ,

medical cannabis process or or grower/processor holding a

valid permit under this [act] part.

(7) A medical cannabis grower , medical cannabis

process or or grower/processor may only provide medical

[marijuana] cannabis to a medical cannabis dispensary holding

a valid permit under this [act] part.

CHAPTER 7

20200HB2050PN3417 - 42 -

MEDICAL [MARIJUANA] CANNABIS CONTROLS

Section 701. Electronic tracking.

(a) Requirement.--A medical cannabis grower , medical

cannabis processor , grower/processor or medical cannabis

dispensary must implement an electronic inventory tracking

system which shall be directly accessible to the department

through its electronic database that electronically tracks all

medical [marijuana] cannabis on a daily basis. The system shall

include tracking of all of the following:

(1) For a medical cannabis grower , medical cannabis

processor or grower/processor, a seed-to-sale tracking system

that tracks the medical [marijuana] cannabis from seed to

plant until the medical [marijuana] cannabis is sold to a

medical cannabis dispensary.

(2) For a medical cannabis dispensary, medical

[marijuana] cannabis from purchase from the medical cannabis

grower , medical cannabis processor or grower/processor to

sale to a patient or caregiver and that includes information

that verifies the validity of an identification card

presented by the patient or caregiver.

(3) For a medical cannabis grower , medical cannabis

processor or grower/processor and a medical cannabis

dispensary, a daily log of each day's beginning inventory,

acquisitions, amounts purchased and sold, disbursements,

disposals and ending inventory. The tracking system shall

include prices paid and amounts collected from patients and

caregivers.

(4) For a medical cannabis grower , medical cannabis

processor or grower/processor and a medical cannabis

dispensary, a system for recall of defective medical

20200HB2050PN3417 - 43 -

[marijuana] cannabis.

(5) For a medical cannabis grower , medical cannabis

processor or grower/processor and a medical cannabis

dispensary, a system to track the plant waste resulting from

the growth of medical [marijuana] cannabis or other disposal,

including the name and address of any disposal service.

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

under subsection (a), each medical [marijuana] cannabis

organization shall track the following:

(1) Security and surveillance.

(2) Recordkeeping and record retention.

(3) The acquisition, possession, growing and processing

of medical [marijuana] cannabis.

(4) Delivery and transportation, including amounts and

method of delivery.

(5) Dispensing, including amounts, pricing and amounts

collected from patients and caregivers.

systems under subsection (a) shall be confidential and not

subject to the act of February 14, 2008 (P.L.6, No.3), known as

the Right-to-Know Law.

(d) Reports.--Within one year of the issuance of the first

permit to a medical cannabis grower , medical cannabis processor ,

grower/processor or medical cannabis dispensary, and every three

months thereafter in a form and manner prescribed by the

department, the following information shall be provided to the

department, which shall compile the information and post it on

the department's publicly accessible Internet website:

(1) The amount of medical [marijuana] cannabis sold by a

medical cannabis grower , medical cannabis processor or

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grower/processor during each three-month period.

(2) The price of amounts of medical [marijuana] cannabis

sold by grower/processors as determined by the department.

(3) The amount of medical [marijuana] cannabis purchased

by each medical cannabis dispensary in this Commonwealth.

(4) The cost of amounts of medical [marijuana] cannabis

to each medical cannabis dispensary in amounts as determined

by the department.

(5) The total amount and dollar value of medical

[marijuana] cannabis sold by each medical cannabis dispensary

in the three-month period.

Section 702. [Grower/processors] M edical cannabis g rowers,

medical cannabis processor s or grower/processors .

(a) Authorization.--Subject to subsection (b), a medical

cannabis grower , medical cannabis processor or grower/processor

may do all of the following in accordance with department

regulations:

(1) Obtain seed from outside this Commonwealth to

initially grow medical [marijuana] cannabis.

(2) Obtain seed and plant material from another medical

cannabis grower , medical cannabis processor or

grower/processor within this Commonwealth to grow medical

[marijuana] cannabis.

(b) Limitations.--

[(1)] A medical cannabis grower , medical cannabis

processor or grower/processor may only grow, store, harvest

or process medical [marijuana] cannabis in an indoor,

enclosed, secure facility which:

[(i)] (1) includes electronic locking systems,

electronic surveillance and other features required by the

20200HB2050PN3417 - 45 -

department; and

[(ii)] (2) is located within this Commonwealth.

[(2) (Reserved).]

Section 703. Storage and transportation.

The department shall develop regulations relating to the

storage and transportation of medical [marijuana] cannabis among

medical cannabis grower s, medical cannabis processor s or

grower/processors, testing laboratories and medical cannabis

dispensaries which ensure adequate security to guard against in-

transit losses. The tracking system developed by the department

shall include all transportation and storage of medical

[marijuana] cannabis. The regulations shall provide for the

following:

* * *

(7) Recordkeeping for delivery and receipt of medical

[marijuana] cannabis products.

* * *

(9) Transporting medical [marijuana] cannabis to a

medical cannabis grower , medical cannabis processor or

grower/processor, approved laboratory or medical cannabis

dispensary.

Section 704. Laboratory.

A medical cannabis grower , medical cannabis processor or

grower/processor shall contract with an independent laboratory

to test the medical [marijuana] cannabis produced by the medical

cannabis grower , medical cannabis processor or grower/processor.

The department shall approve the laboratory and require that the

laboratory report testing results in a manner as the department

shall determine, including requiring a test at harvest and a

test at final processing. The possession by a laboratory of

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medical [marijuana] cannabis shall be a lawful use.

Section 705. Prices.

The department and the Department of Revenue shall monitor

the price of medical [marijuana] cannabis sold by medical

cannabis grower s, medical cannabis processor s or

grower/processors and by medical cannabis dispensaries,

including a per-dose price. If the department and the Department

of Revenue determine that the prices are unreasonable or

excessive, the department may implement a cap on the price of

medical [marijuana] cannabis being sold for a period of six

months. The cap may be amended during the six-month period. If

the department and the Department of Revenue determine that the

prices become unreasonable or excessive following the expiration

of a six-month cap, additional caps may be imposed for periods

not to exceed six months.

Section 801. Dispensing to patients and caregivers.

(a) General rule.--A medical cannabis dispensary that has

been issued a permit under Chapter 6 may lawfully dispense

medical [marijuana] cannabis to a patient or caregiver upon

presentation to the medical cannabis dispensary of a valid

identification card for that patient or caregiver. The medical

cannabis dispensary shall provide to the patient or caregiver a

receipt, as appropriate. The receipt shall include all of the

following:

(1) The name, address and any identification number

assigned to the medical cannabis dispensary by the

department.

(2) The name and address of the patient and caregiver.

(3) The date the medical [marijuana] cannabis was

dispensed.

20200HB2050PN3417 - 47 -

(4) Any requirement or limitation by the practitioner as

to the form of medical [marijuana] cannabis for the patient.

(5) The form and the quantity of medical [marijuana]

cannabis dispensed.

(b) Requirements.--A medical cannabis dispensary shall have

a physician or a pharmacist onsite at all times during the hours

the medical cannabis dispensary is open to receive patients and

caregivers. If a medical cannabis dispensary has more than one

separate location, a physician assistant or a certified

registered nurse practitioner may be onsite at each of the other

locations in lieu of the physician or pharmacist. A physician, a

pharmacist, a physician assistant or a certified registered

nurse practitioner shall, prior to assuming duties under this

paragraph, successfully complete the course established in

section 301(a)(6). A physician may not issue a certification to

authorize patients to receive medical [marijuana] cannabis or

otherwise treat patients at the medical cannabis dispensary.

[marijuana] cannabis to a patient or caregiver, the medical

cannabis dispensary shall file the receipt information with the

department utilizing the electronic tracking system. When filing

receipts under this subsection, the medical cannabis dispensary

shall dispose of any electronically recorded certification

information as provided by regulation.

(d) Limitations.--No medical cannabis dispensary may

dispense to a patient or caregiver:

(1) a quantity of medical [marijuana] cannabis greater

than that which the patient or caregiver is permitted to

possess under the certification; or

(2) a form of medical [marijuana] cannabis prohibited by

20200HB2050PN3417 - 48 -

this [act] part.

(e) Supply.--When dispensing medical [marijuana] cannabis to

a patient or caregiver, the medical cannabis dispensary may not

dispense an amount greater than a 30-day supply until the

patient has exhausted all but a seven-day supply provided

pursuant to a previously issued certification until additional

certification is presented under section 405.

(f) Verification.--Prior to dispensing medical [marijuana]

cannabis to a patient or caregiver, the medical cannabis

dispensary shall verify the information in subsections (e) and

(g) by consulting the electronic tracking system included in the

department's electronic database established under section

301(a)(4)(v) and the medical cannabis dispensary tracking system

under section 701(a)(2).

(g) Form of medical [marijuana] cannabis.--Medical

[marijuana] cannabis dispensed to a patient or caregiver by a

medical cannabis dispensary shall conform to any requirement or

limitation set by the practitioner as to the form of medical

[marijuana] cannabis for the patient.

(h) Safety insert.--When a medical cannabis dispensary

dispenses medical [marijuana] cannabis to a patient or

caregiver, the medical cannabis dispensary shall provide to that

patient or caregiver, as appropriate, a safety insert. The

insert shall be developed and approved by the department. The

insert shall provide the following information:

(1) Lawful methods for administering medical [marijuana]

cannabis in individual doses.

(2) Any potential dangers stemming from the use of

medical [marijuana] cannabis.

(3) How to recognize what may be problematic usage of

20200HB2050PN3417 - 49 -

medical [marijuana] cannabis and how to obtain appropriate

services or treatment for problematic usage.

(4) How to prevent or deter the misuse of medical

[marijuana] cannabis by minors or others.

(5) Any other information as determined by the

department.

(i) Sealed and labeled package.--Medical [marijuana]

cannabis shall be dispensed by a medical cannabis dispensary to

a patient or caregiver in a sealed and properly labeled package.

The labeling shall contain the following:

(1) The information required to be included in the

receipt provided to the patient or caregiver, as appropriate,

by the medical cannabis dispensary.

(2) The packaging date.

(3) Any applicable date by which the medical [marijuana]

cannabis should be used.

(4) A warning stating:

"This product is for medicinal use only. Women should not

consume during pregnancy or while breastfeeding except on the

advice of the practitioner who issued the certification and,

in the case of breastfeeding, the infant's pediatrician. This

product might impair the ability to drive or operate heavy

machinery. Keep out of reach of children."

(5) The amount of individual doses contained within the

package and the species and percentage of

tetrahydrocannabinol and cannabidiol.

(6) A warning that the medical [marijuana] cannabis must

be kept in the original container in which it was dispensed.

(7) A warning that unauthorized use is unlawful and will

subject the person to criminal penalties.

20200HB2050PN3417 - 50 -

(8) Any other information required by the department.

Section 802. Facility requirements.

(a) General rule.--

(1) A medical cannabis dispensary may only dispense

medical [marijuana] cannabis in an indoor, enclosed, secure

facility located within this Commonwealth, as determined by

the department.

(2) A medical cannabis dispensary may not operate on the

same site as a facility used for growing and processing

medical [marijuana] cannabis.

(3) A medical cannabis dispensary may not be located

within 1,000 feet of the property line of a public, private

or parochial school or a day-care center.

(4) A medical cannabis dispensary may sell medical

devices and instruments which are needed to administer

medical [marijuana] cannabis under this [act] part.

(5) A medical cannabis dispensary may sell services

approved by the department related to the use of medical

[marijuana] cannabis.

* * *

CHAPTER 9

TAX ON MEDICAL [MARIJUANA] CANNABIS

Section 901. Tax on medical [marijuana] cannabis.

(a) Tax imposed.--A tax is imposed on the gross receipts of

a medical cannabis grower , medical cannabis processor or

grower/processor received from the sale of medical [marijuana]

cannabis by a medical cannabis grower , medical cannabis

processor or grower/processor to a medical cannabis dispensary,

to be paid by the medical cannabis grower , medical cannabis

processor or grower/processor, at the rate of 5%. The tax shall

20200HB2050PN3417 - 51 -

be charged against and be paid by the medical cannabis grower ,

medical cannabis processor or grower/processor and shall not be

added as a separate charge or line item on any sales slip,

invoice, receipt or other statement or memorandum of the price

paid by a medical cannabis dispensary, patient or caregiver.

(b) Payment of tax and reports.--The tax imposed under

subsection (a) shall be administered in the same manner as the

tax imposed under Article XI of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, except that

estimated tax payments under section 3003.2 of the Tax Reform

Code of 1971 shall not be required. A medical cannabis grower ,

medical cannabis processor or grower/processor shall make

quarterly payments under this section for each calendar quarter

at the rate prescribed in subsection (a) on the gross receipts

for the calendar quarter. The tax shall be due and payable on

the 20th day of January, April, July and October for the

preceding calendar quarter on a form prescribed by the

Department of Revenue.

(d) Deposit of proceeds.--All money received from the tax

imposed under subsection (a) shall be deposited into the fund.

(e) Exemption.--Medical [marijuana] cannabis shall not be

subject to the tax imposed under section 202 of the Tax Reform

Code of 1971.

(f) Information.--A medical cannabis grower , medical

cannabis processor or grower/processor that sells medical

[marijuana] cannabis shall provide to the Department of Revenue

information required by the department.

Section 902. Medical [Marijuana] Cannabis Program Fund.

(a) Fund established.--The Medical [Marijuana] Cannabis

20200HB2050PN3417 - 52 -

Program Fund is established as a special fund in the State

Treasury. Money in the fund is appropriated as set forth in

subsection (c). Any amount unspent at the end of a fiscal year

shall be appropriated to the department for its operations.

(b) Source of funds.--Fees and taxes payable under this

[act] part shall be deposited into the fund. The money deposited

into the fund may only be used for the purposes set forth in

this section. Any interest accrued shall be deposited into the

fund.

subsection (d), money in the fund is appropriated in accordance

with the following percentages:

(1) To the department, 55% of the revenue in the fund.

Forty percent of the revenue in the fund shall be expended

for operations of the department, including outreach efforts

and other projects, as required by this [act] part. Fifteen

percent of the amount in the fund shall be used by the

department to establish the following:

(i) a program to assist patients with the cost of

providing medical [marijuana] cannabis to patients who

demonstrate financial hardship or need under this [act]

part, and the department shall develop guidelines and

procedures to ensure maximum availability to individuals

with financial need;

(ii) a program to assist patients and caregivers

with the cost associated with the waiver or reduction of

fees for identification cards under sections 501(c)(5)

and 502(a)(2); and

(iii) a program to reimburse caregivers for the cost

of providing background checks for caregivers.

20200HB2050PN3417 - 53 -

(2) To the Department of Drug and Alcohol Programs, for

drug abuse prevention and counseling and treatment services,

10% of the revenue in the fund.

(3) To the department, for further research related to

the use of medical [marijuana] cannabis, including the

research program established under Chapter 19, 30% of the

revenue in the fund. Funding shall be provided for research

into the treatment of those serious medical conditions for

which medical [marijuana] cannabis is available for treatment

within this Commonwealth and for research into the use of

medical [marijuana] cannabis to treat other medical

conditions for which medical [marijuana] cannabis may have

legitimate medicinal value. Money shall be used to subsidize

the cost of, or provide, medical [marijuana] cannabis to

patients participating in the program. However, money in the

fund may not be expended on activity under Chapter 20.

(4) To the Pennsylvania Commission on Crime and

Delinquency, for distribution to local police departments

which demonstrate a need relating to the enforcement of this

[act] part, 5% of the revenue in the fund.

(d) Repayment of initial funding.--The department shall

repay from the fees, taxes and investment earnings of the fund

to the General Fund any money appropriated for the initial

planning, organization and administration by the department with

respect to the establishment of the program at the time of the

original enactment of this [act] part. Repayment shall take

place within a 10-year period commencing one year after the date

of publication in the Pennsylvania Bulletin of the final

regulations.

Section 1101. Governing practice and procedure.

20200HB2050PN3417 - 54 -

The provisions of 2 Pa.C.S. (relating to administrative law

and procedure) shall apply to all actions of the department

under this [act] part constituting an adjudication as defined in

2 Pa.C.S. § 101 (relating to definitions).

Section 1102. Reports by medical [marijuana] cannabis

organizations.

A medical [marijuana] cannabis organization shall

periodically file reports related to its activities. The

department shall determine the information required in and the

frequency of filing the reports.

Section 1103. Law enforcement notification.

Notwithstanding any provision of this [act] part or any other

law to the contrary, the department may notify any appropriate

law enforcement agency of information relating to any violation

or suspected violation of this [act] part. In addition, the

department shall verify to law enforcement personnel in an

appropriate case whether a certification, permit, registration

or an identification card is valid, including release of the

name of the patient.

Section 1104. Evaluation.

The department may provide for an analysis and evaluation of

the implementation and effectiveness of this [act] part,

including whether the intent and stated policy of the General

Assembly have been achieved. The department may enter into

agreements with one or more persons for the performance of an

evaluation of the implementation and effectiveness of this [act]

part.

Section 1105. Report.

(a) Report required.--The department shall submit a written

report under subsection (b) every two years, beginning two years

20200HB2050PN3417 - 55 -

after the effective date of this section, to the following:

[(1) The Governor.

(2) The President pro tempore of the Senate.

(3) The Majority Leader and the Minority Leader of the

Senate.

(4) The Speaker of the House of Representatives.

(5) The Majority Leader and the Minority Leader of the

House of Representatives.

(6) The chairman and minority chairman of the Judiciary

Committee of the Senate.

(7) The chairman and minority chairman of the Public

Health and Welfare Committee of the Senate.

(8) The chairman and minority chairman of the Judiciary

Committee of the House of Representatives.

(9) The chairman and minority chairman of the Health

Committee of the House of Representatives.

(10) The Attorney General of the Commonwealth.]

(1) The Governor.

(2) The Attorney General.

(3) The President pro tempore of the Senate.

(4) The Majority Leader and the Minority Leader of the

Senate.

(5) The Speaker of the House of Representatives.

(6) The Majority Leader and the Minority Leader of the

House of Representatives.

(7) The chairperson and minority chairperson of the

Judiciary Committee of the Senate.

(8) The chairperson and minority chairperson of the

Health and Human Services Committee of the Senate.

(9) The chairperson and minority chairperson of the

20200HB2050PN3417 - 56 -

Judiciary Committee of the House of Representatives.

(10) The chairperson and minority chairperson of the

Health Committee of the House of Representatives.

(b) Contents of report.--The following information shall be

included in the report:

(1) An assessment of the use of medical [marijuana]

cannabis as a result of the enactment of this [act] part.

(2) An assessment of the benefits and risks to patients

using medical [marijuana] cannabis under this [act] part,

including adverse events.

(3) Recommendations for amendments to this [act] part

for reasons of patient safety or to aid the general welfare

of the [citizens] residents of this Commonwealth.

Section 1107. Temporary regulations.

(a) Promulgation.--In order to facilitate the prompt

implementation of this [act] part, the department may promulgate

temporary regulations that shall expire not later than two years

following the publication of the temporary regulation. The

department may promulgate temporary regulations not 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.

* * *

provide notice of the temporary regulations to the Legislative

20200HB2050PN3417 - 57 -

Reference Bureau, which shall publish the notice in the

Pennsylvania Bulletin no later than six months after the

effective date of this section.

CHAPTER 12

MEDICAL [MARIJUANA] CANNABIS ADVISORY BOARD

Section 1201. Advisory board.

(a) Establishment.--The Medical [Marijuana] Cannabis

Advisory Board is established within the department. The

advisory board shall consist of the following members:

* * *

(j) Duties.--[The] In addition to the duties specified under

section 3701, the advisory board shall have the following

duties:

(1) To examine and analyze the statutory and regulatory

law relating to medical [marijuana] cannabis within this

Commonwealth.

(2) To examine and analyze the law and events in other

states and the nation with respect to medical [marijuana]

cannabis.

(3) To accept and review written comments from

individuals and organizations about medical [marijuana]

cannabis.

(4) To issue two years after the effective date of this

section a written report to the Governor, the Senate and the

House of Representatives.

(5) The written report under paragraph (4) shall include

recommendations and findings as to the following:

(i) Whether to change the types of medical

professionals who can issue certifications to patients.

(ii) Whether to change, add or reduce the types of

20200HB2050PN3417 - 58 -

medical conditions which qualify as serious medical

conditions under this [act] part.

(iii) Whether to change the form of medical

[marijuana] cannabis permitted under this [act] part.

(iv) [Whether to change, add or reduce the number of

growers/processors or dispensaries.] (Reserved).

(v) How to ensure affordable patient access to

medical [marijuana] cannabis.

(vi) Whether to permit medical [marijuana] cannabis

to be dispensed in dry leaf or plant form, for

administration by vaporization.

(6) The final written report under this section shall be

adopted at a public meeting. The report shall be a public

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

known as the Right-to-Know Law.

CHAPTER 13

OFFENSES RELATED TO MEDICAL [MARIJUANA] CANNABIS

Section 1301. Criminal diversion of medical [marijuana]

cannabis by practitioners.

In addition to any other penalty provided by law, a

practitioner commits a misdemeanor of the first degree if the

practitioner intentionally, knowingly or recklessly certifies a

person as being able to lawfully receive medical [marijuana]

cannabis or otherwise provides medical [marijuana] cannabis to a

person who is not lawfully permitted to receive medical

[marijuana] cannabis.

Section 1302. Criminal diversion of medical [marijuana]

cannabis.

In addition to any other penalty provided by law, an

employee, financial backer, operator or principal of any of the

20200HB2050PN3417 - 59 -

following commits a misdemeanor of the first degree if the

person intentionally, knowingly or recklessly sells, dispenses,

trades, delivers or otherwise provides medical [marijuana]

cannabis to a person who is not lawfully permitted to receive

medical [marijuana] cannabis:

(1) A medical [marijuana] cannabis organization.

(2) A health care medical [marijuana] cannabis

organization or university participating in a research study

under Chapter 19.

(3) A clinical registrant or academic clinical research

center under Chapter 20.

(4) A laboratory utilized to test medical [marijuana]

cannabis under section 704.

Section 1303. Criminal retention of medical [marijuana]

cannabis.

In addition to any other penalty provided by law, a patient

or caregiver commits a misdemeanor of the third degree if the

patient or caregiver intentionally, knowingly or recklessly

possesses, stores or maintains an amount of medical [marijuana]

cannabis in excess of the amount legally permitted.

Section 1304. Criminal diversion of medical [marijuana]

cannabis by patient or caregiver.

(a) Offense defined.--In addition to any other penalty

provided by law, a patient or caregiver commits an offense if

the patient or caregiver intentionally, knowingly or recklessly

provides medical [marijuana] cannabis to a person who is not

lawfully permitted to receive medical [marijuana] cannabis.

(b) Grading.--A first offense under this section constitutes

a misdemeanor of the second degree. A second or subsequent

offense constitutes a misdemeanor of the first degree.

20200HB2050PN3417 - 60 -

Section 1305. Falsification of identification cards.

(a) Offense defined.--In addition to any other penalty

provided by law, a person commits an offense if, knowing he is

not privileged to hold an identification card, the person:

(1) possesses an identification card and either attempts

to use the card to obtain medical [marijuana] cannabis or

obtains medical [marijuana] cannabis;

(2) possesses an identification card which falsely

identifies the person as being lawfully entitled to receive

medical [marijuana] cannabis and either attempts to use the

card to obtain medical [marijuana] cannabis or obtains

medical [marijuana] cannabis; or

(3) possesses an identification card which contains any

false information on the card and the person either attempts

to use the card to obtain medical [marijuana] cannabis or

obtains medical [marijuana] cannabis.

* * *

Section 1306. Adulteration of medical [marijuana] cannabis.

(a) General rule.--In addition to any other penalty provided

by law, a person commits an offense if the person adulterates,

fortifies, contaminates or changes the character or purity of

medical [marijuana] cannabis from that set forth on the

patient's or caregiver's identification card.

* * *

Section 1307. Disclosure of information prohibited.

(a) Offense defined.--In addition to any other penalty

provided by law, an employee, financial backer, operator or

principal of any of the following commits a misdemeanor of the

third degree if the person discloses, except to authorized

persons for official governmental or health care purposes, any

20200HB2050PN3417 - 61 -

information related to the use of medical [marijuana] cannabis:

(1) A medical [marijuana] cannabis organization.

(2) A health care medical [marijuana] cannabis

organization or university participating in a research study

under Chapter 19.

* * *

Section 1308. Additional penalties.

(a) Criminal penalties.--In addition to any other penalty

provided by law, a practitioner, caregiver, patient, employee,

financial backer, operator or principal of any medical

[marijuana] cannabis organization, health care medical

organization or university participating in a research study

under Chapter 19, and an employee, financial backer, operator or

principal of a clinical registrant or academic clinical research

center under Chapter 20, who violates any of the provisions of

this [act] part, other than those specified in section 1301,

1302, 1303, 1304, 1305, 1306 or 1307, or any regulation

promulgated under this [act] part:

(1) For a first offense, commits a misdemeanor of the

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

a fine of not more than $5,000, or to imprisonment for not

more than six months.

(2) For a second or subsequent offense, commits a

misdemeanor of the third degree and shall, upon conviction,

be sentenced to pay a fine of not more than $10,000, or to

imprisonment for not less than six months or more than one

year, or both.

(b) Civil penalties.--In addition to any other remedy

available to the department, the department may assess a civil

penalty for a violation of this [act] part, a regulation

20200HB2050PN3417 - 62 -

promulgated under this [act] part or an order issued under this

[act] part or regulation as provided in this subsection. The

following shall apply:

(1) The department may assess a penalty of not more than

$10,000 for each violation and an additional penalty of not

more than $1,000 for each day of a continuing violation. In

determining the amount of each penalty, the department shall

take the following factors into consideration:

(i) The gravity of the violation.

(ii) The potential harm resulting from the violation

to patients, caregivers or the general public.

(iii) The willfulness of the violation.

(iv) Previous violations, if any, by the person

being assessed.

(v) The economic benefit to the person being

assessed for failing to comply with the requirements of

this [act] part, a regulation promulgated under this

[act] part or an order issued under this [act] part or

regulation.

(2) If the department finds that the violation did not

threaten the safety or health of a patient, caregiver or the

general public and the violator took immediate action to

remedy the violation upon learning of it, the department may

issue a written warning in lieu of assessing a civil penalty.

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

procures or causes another person to violate this [act] part,

a regulation promulgated under this [act] part or an order

issued under this [act] part or regulation shall be subject

to the civil penalties provided under this subsection.

20200HB2050PN3417 - 63 -

(1) In addition to the penalties provided in subsection

(b) and any other penalty authorized by law, the department

may impose the following sanctions:

(i) Revoke or suspend the permit of a person found

to be in violation of this [act] part, a regulation

promulgated under this [act] part or an order issued

under this [act] part or regulation.

(ii) Revoke or suspend the permit of a person for

conduct or activity or the occurrence of an event that

would have disqualified the person from receiving the

permit.

(iii) Revoke or suspend the registration of a

practitioner for a violation of this [act] part or a

regulation promulgated or an order issued under this

[act] part or for conduct or activity which would have

disqualified the practitioner from receiving a

registration.

(iv) Suspend a permit or registration of a person

pending the outcome of a hearing in a case in which the

permit or registration could be revoked.

(v) Order restitution of funds or property

unlawfully obtained or retained by a permittee or

registrant.

(vi) Issue a cease and desist order.

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

procures or causes another person to violate this [act] part

shall be subject to the sanctions provided under this

subsection.

(d) Costs of action.--The department may assess against a

person determined to be in violation of this [act] part the

20200HB2050PN3417 - 64 -

costs of investigation of the violation.

(e) Minor violations.--Nothing in this section shall be

construed to require the assessment of a civil penalty or the

imposition of a sanction for a minor violation of this [act]

part if the department determines that the public interest will

be adequately served under the circumstances by the issuance of

a written warning.

Section 1309. Other restrictions.

This [act] part does not permit any person to engage in and

does not prevent the imposition of any civil, criminal or other

penalty for the following:

(1) Undertaking any task under the influence of medical

[marijuana] cannabis when doing so would constitute

negligence, professional malpractice or professional

misconduct.

(2) Possessing or using medical [marijuana] cannabis in

a State or county correctional facility, including a facility

owned or operated or under contract with the Department of

Corrections or the county which houses inmates serving a

portion of their sentences on parole or other community

correction program. Nothing in this paragraph shall be

construed to apply to employees of the facilities set forth

in this paragraph. The Department of Corrections shall adopt

a written policy no later than 18 months from the effective

date of this section regarding the possession and use of

medical [marijuana] cannabis by employees in State

correctional facilities. The governing authority of a county

may adopt a resolution no later than 18 months from the

effective date of this section regarding the possession and

use of medical [marijuana] cannabis by employees in a county

20200HB2050PN3417 - 65 -

correctional facility.

(3) Possessing or using medical [marijuana] cannabis in

a youth detention center or other facility which houses

children adjudicated delinquent, including the separate,

secure State-owned facility or unit utilized for sexually

violent delinquent children under 42 Pa.C.S. § 6404 (relating

to duration of inpatient commitment and review). As used in

this paragraph, the term "sexually violent delinquent

children" shall have the meaning given to it in 42 Pa.C.S. §

6402 (relating to definitions). Nothing in this paragraph

shall be construed to apply to employees of the facilities

set forth in this paragraph.

Section 1901. [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:

"Health care medical marijuana organization." A vertically

integrated health system approved by the department to dispense

medical marijuana or grow and process medical marijuana, or

both, in accordance with a research study under this chapter.

"Vertically integrated health system." A health delivery

system licensed under the act of July 19, 1979 (P.L.130, No.48),

known as the Health Care Facilities Act, in which the complete

spectrum of care, including primary and specialty care,

hospitalization and pharmaceutical care, is provided within a

single organization.] (Reserved).

Section 1902. Establishment of medical [marijuana] cannabis

research program.

(a) Program to be established.--The department shall

establish and develop a research program to study the impact of

20200HB2050PN3417 - 66 -

medical [marijuana] cannabis on the treatment and symptom

management of serious medical conditions. The program shall not

include a clinical registrant or academic clinical research

center under Chapter 20.

(b) Department duties.--The department shall:

(1) Review all serious medical conditions which are

cited by a practitioner upon the practitioner's certification

that a patient be granted an identification card.

(2) Create a database of all serious medical conditions,

including comorbidities, which are cited by practitioners in

the certifications of patients. The database shall also

include the form of medical [marijuana] cannabis certified to

treat each serious medical condition.

(3) When the database contains 25 or more patients with

the same serious medical condition, petition the United

States Food and Drug Administration and the United States

Drug Enforcement Administration for approval to study the

condition and the impact of medical [marijuana] cannabis on

the condition.

(4) Concurrent with the request to the United States

Food and Drug Administration and United States Drug

Enforcement Administration, publicly announce the formation

of a research study to which a vertically integrated health

system and a university within this Commonwealth may submit a

request to participate.

(5) Upon approval of a research study by the United

States Food and Drug Administration and the United States

Drug Enforcement Administration, select a vertically

integrated health system or systems to conduct the research

study and designate the form or forms of medical [marijuana]

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cannabis which will be used to treat the serious medical

condition.

(6) Notify a patient who has been issued an

identification card:

(i) that the patient has been selected to

participate, at the patient's option, in a research study

to study medical [marijuana] cannabis as a treatment; and

(ii) where the patient may secure medical

[marijuana] cannabis through a health care medical

[marijuana] cannabis organization at no cost to the

patient in accordance with subsection (c).

(7) If the United States Food and Drug Administration

and the United States Drug Enforcement Administration reject

the proposal for the research study, take all reasonable

steps to collect and collate data on the serious medical

condition and the use of medical [marijuana] cannabis as a

treatment for the serious medical condition and consider

submitting an additional request to the United States Food

and Drug Administration and United States Drug Enforcement

Administration for a research study on the same condition.

which is dispensed to patients in accordance with an approved

research study shall be paid for by the fund.

(d) Geographic accessibility.--The department shall take

into consideration the geographic location of the health care

medical [marijuana] cannabis organization when assigning a

patient to a health care medical [marijuana] cannabis

organization. The department shall make an effort to assign a

patient to a health care medical [marijuana] cannabis

organization that is located within 50 miles of the patient's

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residence.

(e) Data.--Data collected by the health care medical

[marijuana] cannabis organization shall be provided to the

university participating in the research study for analysis.

Section 1903. Medical [marijuana] cannabis research program

administration.

(a) General rule.--The department shall establish a research

study for each serious medical condition. The department shall

engage universities within this Commonwealth to participate in

the collection, collation, analysis and conclusive findings of

the research studies. The department shall, by regulation,

establish the procedure to be used by health care medical

[marijuana] cannabis organizations with respect to:

(1) Real time inventory tracking.

(2) Real time tracking of the medical [marijuana]

cannabis dispensed.

(3) Recall of defective medical [marijuana] cannabis.

(b) Request for distributions.--The department shall

establish a form and procedure for universities selected to

participate in a research study to request distributions from

the fund to conduct research on medical [marijuana] cannabis,

including administrative costs. These distributions shall also

be used to pay for the cost of the medical [marijuana] cannabis

so that it is not borne by the patient participating in the

research study. The forms shall include, at a minimum, the

following:

(1) The form or forms of medical [marijuana] cannabis to

be studied.

(2) The serious medical condition to be studied.

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(1) A vertically integrated health system shall report

on the effectiveness of the use of medical [marijuana]

cannabis for the treatment of the serious medical condition

studied and all counterindications and noted side effects.

* * *

Section 1904. Approval.

A vertically integrated health system located in this

Commonwealth may petition the department to participate in a

research study to study a serious medical condition under

section 1903. Approval of the vertically integrated health

system as a health care medical [marijuana] cannabis

organization by the department shall authorize access within a

region under section 603(d) to medical [marijuana] cannabis for

all patients included in an approved research study.

Section 1905. Requirements.

(a) Dispensing.--A health care medical [marijuana] cannabis

organization that dispenses medical [marijuana] cannabis shall:

(1) Maintain licensure with the department as required

under the act of July 19, 1979 (P.L.130, No.48), known as the

Health Care Facilities Act.

(2) Secure the medical [marijuana] cannabis within the

associated pharmacies of the health care medical [marijuana]

cannabis organization in a manner and method prescribed by

the department.

(3) Keep a daily log of the medical [marijuana] cannabis

dispensed and the research study with which the patient and

the medical [marijuana] cannabis are associated. Reports

shall be delivered to the department and the university

participating in the research study on a weekly basis.

(4) Report to the Pennsylvania Health Care Cost

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Containment Council the utilization rates of those patients

participating in the research of medical [marijuana] cannabis

and treatment options.

(5) Only dispense medical [marijuana] cannabis received

from a grower/processor or a health care medical [marijuana]

cannabis organization that is approved to grow and process

medical [marijuana] cannabis.

(6) Provide all patients or caregivers with the safety

insert, prepared by the department, which includes potential

dangers, recognition and correction of problematic dosage and

any other information required by the department or which the

department deems relevant for patient safety.

(b) Growing and processing.--A health care medical

[marijuana] cannabis organization that grows and processes

medical [marijuana] cannabis shall:

(1) Maintain licensure with the department as required

under the Health Care Facilities Act.

(2) Only make available medical [marijuana] cannabis to

health care medical [marijuana] cannabis organizations that

dispense medical [marijuana] cannabis.

(3) Keep a daily log of medical [marijuana] cannabis

intended for ultimate use by patients participating in a

research study.

Section 1906. Restrictions.

A health care medical [marijuana] cannabis organization may

not participate in a research study of any kind, including the

program established under this chapter, or dispense or grow and

process medical [marijuana] cannabis if it has violated its

licensure requirements under the act of July 19, 1979 (P.L.130,

No.48), known as the Health Care Facilities Act.

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Section 1907. Regulations.

The department shall, by regulation, establish the procedure

to be used by a health care medical [marijuana] cannabis

organization that grows and processes medical [marijuana]

cannabis with respect to:

(1) Real time inventory tracking, including a seed-to-

dispensing tracking system that tracks medical [marijuana]

cannabis from seed or immature plant stage until the medical

[marijuana] cannabis is provided to a patient in a research

study.

(2) Security, recordkeeping, record retention and

surveillance systems relating to every stage of growing and

processing medical [marijuana] cannabis.

(3) A daily log of each day's beginning inventory,

acquisitions, disbursements, disposals and ending inventory.

(4) A system to recall defective medical [marijuana]

cannabis.

(5) A system to track the plant waste resulting from the

growth of medical [marijuana] cannabis.

(6) Testing of medical [marijuana] cannabis by an

independent laboratory to test the medical [marijuana]

cannabis produced by the health care medical [marijuana]

cannabis organization, including requiring a test at harvest

and a test at final processing.

(7) Any other procedure deemed necessary by the

department.

Section 1908. Nonentitlement.

Nothing in this chapter shall be construed to create an

entitlement or right of a patient to receive medical [marijuana]

cannabis or to participate in a research study.

20200HB2050PN3417 - 72 -

Section 4. Sections 2000, 2002 and 2003(b) introductory

paragraph, (1)(ii) and (3) of the act, amended or added June 22,

2018 (P.L.322, No.43), are amended to read:

Section 2000. Legislative findings and declaration of policy.

(a) Legislative findings.--It is determined and declared as

a matter of legislative finding:

(1) Patients suffering from serious medical conditions

deserve the benefit of research conducted in conjunction with

the Commonwealth's medical schools to determine whether

medical [marijuana] cannabis will improve their conditions or

symptoms.

(2) The Commonwealth has an interest in creating a

mechanism whereby the Commonwealth's medical schools and

hospitals can help develop research programs and studies in

compliance with applicable law.

(b) Declaration of policy.--The General Assembly declares as

follows:

(1) It is the intention of the General Assembly to

create a mechanism whereby this Commonwealth's medical

schools and hospitals may provide advice to medical cannabis

grower s, medical cannabis processors, grower/processors and

medical cannabis dispensaries in the areas of patient health

and safety, medical applications and dispensing and

management of controlled substances, among other areas. It is

the further intention of the General Assembly to create a

mechanism whereby the Commonwealth may encourage research

associated with medical [marijuana] cannabis.

(2) It is the policy of the Commonwealth to allow, in

addition to the 25 medical cannabis grower s, 25 medical

cannabis processors, 25 grower/processors and 50 medical

20200HB2050PN3417 - 73 -

cannabis dispensaries initially authorized under section 616,

the operation of additional medical cannabis grower s, medical

cannabis processors, grower/processors and medical cannabis

dispensaries which will be approved by the department as

clinical registrants. A clinical registrant is a medical

cannabis grower , medical cannabis processor or

grower/processor and a medical cannabis dispensary which has

a contractual relationship with a medical school that

operates or partners with a hospital to provide advice about

medical [marijuana] cannabis so that patient safety may be

enhanced.

Section 2002. Clinical registrants.

(a) Approval.--The department may approve up to eight

clinical registrants. Each clinical registrant may provide

medical [marijuana] cannabis at not more than six separate

locations. The total number of locations authorized to dispense

medical [marijuana] cannabis under this section shall not exceed

48. The medical cannabis grower , medical cannabis processor,

grower/processor and medical cannabis dispensary permits issued

to clinical registrants approved under this section shall be in

addition to the 25 medical cannabis grower , 25 medical cannabis

processor, 25 grower/processor and 50 medical cannabis

dispensary permits issued by the department in accordance with

section 616(1) and (2). The limitations relating to number and

location in sections 616(1) and (2) and 603(d) do not apply. A

clinical registrant may not hold more than one medical cannabis

grower , one medical cannabis processor, one grower/processor and

one medical cannabis dispensary permit. Once the department

approves the entity as a clinical registrant, the entity shall

comply with this chapter.

20200HB2050PN3417 - 74 -

(b) Requirements.--The following shall apply to clinical

registrants:

(1) An entity seeking approval as a clinical registrant

shall submit an application to the department in such form

and manner as the department prescribes. The department shall

ensure that the applicant meets the requirements of this

[act] part before approving the application to become a

clinical registrant.

(2) An entity may be issued a permit as a medical

cannabis grower , medical cannabis processor, grower/processor

or medical cannabis dispensary before seeking approval as a

clinical registrant. An entity may also apply for a permit as

a medical cannabis grower , medical cannabis processor,

grower/processor or a medical cannabis dispensary at the same

time the entity seeks approval from the department as a

clinical registrant.

(3) An entity seeking approval as a clinical registrant

that does not already hold a permit as a medical cannabis

grower , medical cannabis processor, grower/processor or a

medical cannabis dispensary shall submit the applications

required under Chapter 6. In reviewing an application, the

department shall ensure that the entity meets all of the

requirements for the issuance of a medical cannabis grower

permit, medical cannabis processor permit, grower/processor

permit or a medical cannabis dispensary permit, as

applicable.

(4) When the department issues a permit as a medical

cannabis grower , medical cannabis processor, grower/processor

or a medical cannabis dispensary to an entity seeking

approval as a clinical registrant, the issuance shall not be

20200HB2050PN3417 - 75 -

construed to reduce the number of permits for

[growers/processors] medical cannabis grower s, medical

cannabis processors, grower/processors and medical cannabis

dispensaries authorized under section 616(1) and (2).

(5) [Except as provided in section 607(1)(vi) and (2)

(vi), an] An entity seeking approval as a clinical registrant

must pay the fees and meet all other requirements under this

[act] part for obtaining a permit as a grower/processor and a

medical cannabis grower , medical cannabis processor or

medical cannabis dispensary. Upon approval of the department,

a clinical registrant shall be issued a grower/processor

permit and a medical cannabis grower permit, medical cannabis

processor permit or medical cannabis dispensary permit and

shall be a medical [marijuana] cannabis organization. As a

medical [marijuana] cannabis organization, a clinical

registrant must comply with all the provisions of this [act]

part relating to medical [marijuana] cannabis organizations

except as otherwise provided in this chapter.

(6) The clinical registrant must have a minimum of

$15,000,000 in capital. The department shall verify the

capital requirement.

(7) The clinical registrant must comply with all other

requirements of this [act] part regarding growing, processing

and dispensing medical [marijuana] cannabis.

(8) A medical cannabis grower , medical cannabis

processor or grower/processor facility owned by a clinical

registrant may sell its medical [marijuana] cannabis products

only to the clinical registrant's medical cannabis dispensary

facilities and the medical cannabis dispensary facilities of

other clinical registrants. The facility may sell seeds,

20200HB2050PN3417 - 76 -

medical [marijuana] cannabis plants and medical [marijuana]

cannabis products to, or exchange seeds, medical [marijuana]

cannabis plants and medical [marijuana] cannabis products

with, any other medical cannabis grower , medical cannabis

processor or grower/processor facility holding a permit under

Chapter 6 or this chapter.

(9) A clinical registrant may petition the department,

on a form prescribed by the department, for approval to sell

certain of the medical [marijuana] cannabis products grown

and processed by its medical cannabis grower , medical

cannabis processor or grower/processor facility to other

medical [marijuana] cannabis organizations holding medical

cannabis dispensary permits under Chapter 6. The petition

must be accompanied by a written report of the clinical

registrant's research findings with respect to the medical

[marijuana] cannabis products which are the subject of the

petition. The department shall approve the petition if it has

been demonstrated that the medical [marijuana] cannabis

products have a practical effect on patients which changes a

recommendation within the medical field as indicated in the

report submitted by the clinical registrant.

(10) A medical cannabis dispensary owned by a clinical

registrant may dispense medical [marijuana] cannabis products

to a patient or caregiver who presents a valid identification

card to an employee who is authorized to dispense medical

[marijuana] cannabis products at a medical cannabis

dispensary location operated by the clinical registrant,

regardless of whether the patient is a participant in a

research study or program.

Section 2003. Research study.

20200HB2050PN3417 - 77 -

* * *

(b) Procedures.--The department may, upon application,

approve the dispensing of medical [marijuana] cannabis by a

clinical registrant to the academic clinical research center for

the purpose of conducting a research study. The department shall

develop the application and standards for approval of such

dispensing by the clinical registrant. The following apply to

the research study:

(1) The clinical registrant shall disclose the following

information to the department in its application:

* * *

(ii) The strain and strength of medical [marijuana]

cannabis to be used in the research study.

* * *

(3) The department shall allow the exchange of medical

[marijuana] cannabis seed between clinical registrants for

the conduct of research.

Section 5. Sections 2101, 2101.1, 2102, 2103, 2104, 2105,

2108 and 2109 of the act are amended to read:

Section 2101. Conflict.

The growth, processing, manufacture, acquisition,

transportation, sale, dispensing, distribution, possession and

consumption of medical [marijuana] cannabis permitted under this

[act] part shall not be deemed to be a violation of the act of

April 14, 1972 (P.L.233, No.64), known as The Controlled

Substance, Drug, Device and Cosmetic Act. If a provision of the

Controlled Substance, Drug, Device and Cosmetic Act relating to

[marijuana] cannabis conflicts with a provision of this [act]

part, this [act] part shall take precedence.

Section 2101.1. Financial and employment interests.

20200HB2050PN3417 - 78 -

(a) Financial interests.--Except as may be provided for the

judiciary by rule or order of the Pennsylvania Supreme Court, an

executive-level public employee, public official or party

officer, or an immediate family member thereof, shall not

intentionally or knowingly hold a financial interest in a

medical [marijuana] cannabis organization or in a holding

company, affiliate, intermediary or subsidiary thereof, while

the individual is an executive-level public employee, public

official or party officer and for one year following termination

of the individual's status as an executive-level public

employee, public official or party officer.

(b) Employment.--Except as may be provided by rule or order

of the Pennsylvania Supreme Court, no executive-level public

employee, public official or party officer, or an immediate

family member thereof, shall be employed by a medical

[marijuana] cannabis organization or by any holding company,

affiliate, intermediary or subsidiary thereof, while the

individual is an executive-level public employee, public

official or party officer and for one year following termination

of the individual's status as an executive-level public

employee, public official or party officer.

commits a misdemeanor and shall, upon conviction, be sentenced

to pay a fine of not more than $1,000 or to imprisonment for not

more than one year, or both.

(d) State Ethics Commission.--The State Ethics Commission

shall do all of the following:

(1) Issue a written determination of whether a person is

subject to subsection (a) or (b) upon the written request of

the person or any other person that may have liability for an

20200HB2050PN3417 - 79 -

action taken with respect to such person. A person that

relies in good faith on a determination made under this

paragraph shall not be subject to any penalty for an action

taken, provided that all material facts set forth in the

request for the determination are correct.

(2) Publish a list of all State, county, municipal and

other government positions that meet the definitions of

"public official" [or "executive-level public employee"] as

defined under 4 Pa.C.S. § 1512(b) (relating to financial and

employment interests) and "executive-level public employee"

as defined under 4 Pa.C.S. § 1103 (relating to definitions).

The Office of Administration shall assist the State Ethics

Commission in the development of the list, which shall be

published by the State Ethics Commission in the Pennsylvania

Bulletin biennially and posted by the department on the

department's publicly accessible Internet website. Upon

request, each public official shall have a duty to provide

the State Ethics Commission with adequate information to

accurately develop and maintain the list. The State Ethics

Commission may impose a civil penalty under 65 Pa.C.S. §

1109(f) (relating to penalties) upon any individual,

including any public official or executive-level public

employee, who fails to cooperate with the State Ethics

Commission under this subsection. A person that relies in

good faith on the list published by the State Ethics

Commission shall not be subject to any penalty for a

violation of this section.

(e) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection:

20200HB2050PN3417 - 80 -

"Financial interest." As defined in 4 Pa.C.S. § 1512(b).

"Immediate family." As defined in 4 Pa.C.S. § 1512(b).

"Party officer." As defined in 4 Pa.C.S. § 1512(b).

"Public official." The term shall include the following:

(1) The Governor, Lieutenant Governor, a member of the

Governor's cabinet, Treasurer, Auditor General and Attorney

General of the Commonwealth.

(2) A member of the Senate or House of Representatives

of the Commonwealth.

(3) An individual elected or appointed to any office of

a county or municipality that directly receives a

distribution of revenue from the fund.

(4) An individual elected or appointed to a department,

agency, board, commission, authority or other governmental

body not included in paragraph (1), (2) or (3) that directly

receives a distribution of revenue from the fund.

(5) An individual elected or appointed to a department,

agency, board, commission, authority, county, municipality or

other governmental body not included in paragraph (1), (2) or

(3) with discretionary power which may influence or affect

the outcome of an action or decision and who is involved in

the development of regulation or policy relating to a medical

[marijuana] cannabis organization or who is involved in other

matters under this [act] part.

The term does not include a member of a school board or an

individual who held an uncompensated office with a governmental

body prior to January 1, 2017, and who no longer holds the

office as of January 1, 2017.

Section 2102. Insurers.

Nothing in this [act] part shall be construed to require an

20200HB2050PN3417 - 81 -

insurer or a health plan, whether paid for by Commonwealth funds

or private funds, to provide coverage for medical [marijuana]

cannabis.

Section 2103. Protections for patients and caregivers.

(a) Licensure.--None of the following shall be subject to

arrest, prosecution or penalty in any manner, or denied any

right or privilege, including civil penalty or disciplinary

action by a Commonwealth licensing board or commission, solely

for lawful use of medical [marijuana] cannabis or manufacture or

sale or dispensing of medical [marijuana] cannabis, or for any

other action taken in accordance with this [act] part:

(1) A patient.

(2) A caregiver.

(3) A practitioner.

(4) A medical [marijuana] cannabis organization.

(5) A health care medical [marijuana] cannabis

organization or university participating in a research study

under Chapter 19.

(6) A clinical registrant or academic clinical research

center under Chapter 20.

(7) An employee, principal or financial backer of a

medical [marijuana] cannabis organization.

(8) An employee of a health care medical [marijuana]

cannabis organization or an employee of a university

participating in a research study under Chapter 19.

(9) An employee of a clinical registrant or an employee

of an academic clinical research center under Chapter 20.

(10) A pharmacist, physician assistant or certified

registered nurse practitioner under section 801(b).

(b) Employment.--

20200HB2050PN3417 - 82 -

(1) No employer may discharge, threaten, refuse to hire

or otherwise discriminate or retaliate against an employee

regarding an employee's compensation, terms, conditions,

location or privileges solely on the basis of such employee's

status as an individual who is certified to use medical

[marijuana] cannabis.

(2) Nothing in this [act] part shall require an employer

to make any accommodation of the use of medical [marijuana]

cannabis on the property or premises of any place of

employment. This [act] part shall in no way limit an

employer's ability to discipline an employee for being under

the influence of medical [marijuana] cannabis in the

workplace or for working while under the influence of medical

[marijuana] cannabis when the employee's conduct falls below

the standard of care normally accepted for that position.

(3) Nothing in this [act] part shall require an employer

to commit any act that would put the employer or any person

acting on its behalf in violation of Federal law.

certified to use medical [marijuana] cannabis and acting in

accordance with this [act] part shall not by itself be

considered by a court in a custody proceeding. In determining

the best interest of a child with respect to custody, the

provisions of 23 Pa.C.S. Ch. 53 (relating to child custody)

shall apply.

Section 2104. Schools.

The Department of Education shall promulgate regulations

within 18 months of the effective date of this section regarding

the following:

(1) Possession and use of medical [marijuana] cannabis

20200HB2050PN3417 - 83 -

by a student on the grounds of a preschool, primary school

and a secondary school.

(2) Possession and use of medical [marijuana] cannabis

by an employee of a preschool, primary school and a secondary

school on the grounds of such school.

Section 2105. Day-care centers.

The Department of Human Services shall promulgate regulations

within 18 months of the effective date of this section regarding

the following:

(1) Possession and use of medical [marijuana] cannabis

by a child under the care of a child-care or social service

center licensed or operated by the Department of Human

Services.

(2) Possession and use of medical [marijuana] cannabis

by an employee of a child-care or social service center

licensed or operated by the Department of Human Services.

(3) Possession and use of medical [marijuana] cannabis

by employees of a youth development center or other facility

which houses children adjudicated delinquent, including the

separate, secure State-owned facility or unit for sexually

violent children, as set forth in section 1309(3).

Section 2108. Notice.

Upon amendment of the Controlled Substances Act (Public Law

91-513, 84 Stat. 1236) removing [marijuana] cannabis from

Schedule I of the Controlled Substances Act, the department

shall [publish] provide notice of the effective date of the

amendment to the Legislative Reference Bureau, which shall

publish the notice in the Pennsylvania Bulletin.

Section 2109. Applicability.

(a) [Dispensaries] Medical cannabis dispensaries.--The

20200HB2050PN3417 - 84 -

provisions of this [act] part with respect to medical cannabis

dispensaries shall not apply beginning 1,095 days from the

effective date of an amendment to the Controlled Substances Act

(Public Law 91-513, 84 Stat. 1236) removing [marijuana] cannabis

from Schedule I of the Controlled Substances Act.

(b) Issuance.--The issuance of permits and other

authorizations shall begin upon publication of a notice by the

department in the Pennsylvania Bulletin that adequate temporary

or permanent regulations have been adopted to initiate the

program under this [act] part.

Section 6. The act is amended by adding a part to read:

PART III

ADULT-USE CANNABIS

CHAPTER 31

PRELIMINARY PROVISIONS

Section 3101. Scope of part.

This part relates to adult-use cannabis.

Section 3102. Definitions.

The following words and phrases when used in this part shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Fund." The Commonwealth Reinvestment Fund established in

section 3503.

CHAPTER 32

ADULT-USE CANNABIS ORGANIZATIONS

Section 3201. Adult-use cannabis organizations.

The following entities shall be authorized to receive a

permit to operate as an adult-use cannabis organization to grow,

process or dispense adult-use cannabis and cannabis products:

(1 ) Adult-use cannabis g rowers.

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(2 ) Adult-use cannabis p rocessors.

(3 ) Adult-use cannabis d ispensaries.

Section 3202. Permits.

(a) Application.--An application for an adult-use cannabis

grower, adult-use cannabis processor or adult-use cannabis

dispensary permit to grow, process or dispense adult-use

cannabis and cannabis products shall be in a form and manner

prescribed by the department and shall include:

(1) Verification of all principals, operators, financial

backers or employees of an adult-use cannabis grower, adult-

use cannabis processor or adult-use cannabis dispensary .

(2) A description of responsibilities as a principal,

operator, financial backer or employee.

(3) Any release necessary to obtain information from

governmental agencies, employers and other organizations.

(4) A criminal history record check. Adult-use cannabis

organizations applying for a permit shall submit fingerprints

of principals, financial backers, operators and employees to

the Pennsylvania State Police for the purpose of obtaining

criminal history record checks, and the Pennsylvania State

Police or its authorized agent shall submit the fingerprints

to the Federal Bureau of Investigation for the purpose of

verifying the identity of the principals, financial backers,

operators and employees and obtaining a current record of any

criminal arrests and convictions. Any criminal history record

information relating to principals, financial backers,

operators and employees obtained under this section by the

department may be interpreted and used by the department only

to determine the principal's, financial backer's, operator's

and employee's character, fitness and suitability to serve as

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a principal, financial backer, operator and employee under

this part. A criminal history related to the distribution or

use of cannabis shall not prevent an individual from

obtaining a permit. This paragraph shall not apply to an

owner of securities in a publicly traded corporation if the

department determines that the owner of the securities is not

substantially involved in the activities of the adult-use

cannabis organization.

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

other authorization obtained in another jurisdiction,

including any suspensions, revocations or discipline in that

jurisdiction.

(6) A description of the business activities in which

the applicant intends to engage as an adult-use cannabis

organization.

(7) A statement that the applicant:

(i) Is of good moral character. For purposes of this

subparagraph, an applicant shall include each financial

backer, operator, employee and principal of the adult-use

cannabis organization.

(ii) Possesses the ability to obtain in an

expeditious manner the right to use sufficient land,

buildings and other premises and equipment to properly

carry on the activity described in the application and

any proposed location for a facility.

(iii) Is able to maintain effective security and

control to prevent diversion, abuse and other illegal

conduct relating to adult-use cannabis and cannabis

products.

(iv) Is able to comply with all applicable

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Commonwealth laws and regulations relating to the

activities in which the applicant intends to engage under

this part.

(8) The name, residential address and title of each

financial backer and principal of the applicant. Each

individual, or lawful representative of a legal entity, shall

submit an affidavit with the application setting forth:

(i) Any position of management or ownership during

the preceding 10 years of a controlling interest in any

other business, located inside or outside this

Commonwealth, manufacturing or distributing controlled

substances.

(ii) Whether the person or business has been

convicted of a criminal offense graded higher than a

summary offense or has had a permit relating to adult-use

cannabis and cannabis products suspended or revoked in

any administrative or judicial proceeding.

(9) Any other information the department may require.

(b) Pennsylvania farms.--

(1) An adult-use cannabis grower may contract with a

Pennsylvania farm to use the land and buildings of the

Pennsylvania farm to grow adult-use cannabis. The applicant

for an adult-use cannabis grower shall include all applicable

information required under subsection (a) for the

Pennsylvania farm.

(2) An adult-use cannabis processor may contract with a

Pennsylvania farm to use the land and buildings of the

Pennsylvania farm to process adult-use cannabis. The

applicant for an adult-use cannabis processor shall include

all applicable information required under subsection (a) for

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the Pennsylvania farm.

(3) Nothing in this subsection shall be construed to

classify an adult-use cannabis grower as a Pennsylvania farm

simply because the adult-use cannabis grower operates an area

of land and building used for growing adult-use cannabis.

false statement made in the application is punishable under the

applicable provisions of 18 Pa.C.S. Ch. 49 (relating to

falsification and intimidation).

Section 3203. Granting of permit.

(a) General rule.--The department may grant or deny a permit

to an adult-use cannabis grower, adult-use cannabis processor or

adult-use cannabis dispensary .

(b) Determination.--In making a decision under subsection

(a), the department shall determine that:

(1) The applicant will maintain effective control of and

prevent diversion of adult-use cannabis and cannabis

products.

(2) The applicant will comply with all applicable laws

of this Commonwealth.

(3) The applicant is ready, willing and able to properly

carry on the activity for which a permit is sought.

(4) The applicant possesses the ability to obtain in an

expeditious manner sufficient land, buildings and equipment

to properly grow, process or dispense adult-use cannabis and

cannabis products.

(5) It is in the public interest to grant the permit.

(6) The applicant, including the financial backer or

principal, is of good moral character and has the financial

fitness necessary to operate.

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(7) The applicant is able to implement and maintain

security, tracking, recordkeeping and surveillance systems

relating to the acquisition, possession, growth, manufacture,

sale, delivery, transportation, distribution or the

dispensing of adult-use cannabis and cannabis products as

required by the department.

(8) Except as provided in section 3205(4) and (5), the

applicant has, at the time of the application, the capital

requirement of $100,000 in assets, of which $50,000 shall be

on deposit at a financial institution.

(9) The applicant satisfies any other conditions as

determined by the department.

shall be nontransferable.

(d) Privilege.--The issuance or renewal of a permit shall be

a revocable privilege.

Section 3204. Application and issuance.

(a) Duty to report.--An applicant to be an adult-use

cannabis grower or adult-use cannabis processor or to operate an

adult-use cannabis dispensary is under a continuing duty to:

(1) Report to the department any change in facts or

circumstances reflected in the application or any newly

discovered or occurring fact or circumstance which is

required to be included in the application, including a

change in control of the adult-use cannabis organization.

(2) Report to law enforcement, within 24 hours, any loss

or theft of adult-use cannabis or cannabis products.

(3) Submit to announced or unannounced inspections by

the department of the facilities for growing, processing,

dispensing or selling adult-use cannabis or cannabis

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products, including all records of the organization.

(b) Additional information.--If the department is not

satisfied that the applicant should be issued a permit, the

department shall notify the applicant in writing of the factors

for which further documentation is required. Within 30 days of

the receipt of the notification, the applicant may submit

additional material to the department.

Section 3205. Fees and other requirements.

The following apply:

(1) Except as provided in paragraph (4), for an adult-

use cannabis grower:

(i) An initial application fee in the amount of

$2,500 shall be paid. The fee is nonrefundable.

(ii) A fee for a permit as an adult-use cannabis

grower in the amount of $5,000 shall be paid. The permit

shall be valid for one year. An applicant shall submit

the permit fee at the time of submission of the

application. The fee shall be returned if the permit is

not granted.

(iii) A renewal fee for the permit as an adult-use

cannabis grower shall be as follows:

(A) If the adult-use cannabis grower has revenue

of less than $250,000 during the previous year as an

adult-use cannabis grower, the adult-use cannabis

grower must apply for a Grower I permit. The renewal

fee for the Grower I permit shall be in the amount of

$1,500 and shall cover renewal for all locations. The

renewal fee shall be returned if the renewal is not

granted.

(B) If the adult-use cannabis grower has revenue

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of at least $250,000 but less than $500,000 during

the previous year as an adult-use cannabis grower,

the adult-use cannabis grower must apply for a Grower

II permit. The renewal fee for the Grower II permit

shall be in the amount of $3,750 and shall cover

renewal for all locations. The renewal fee shall be

returned if the renewal is not granted.

of at least $500,000 but less than $1,000,000 during

the previous year as an adult-use cannabis grower,

the adult-use cannabis grower must apply for a Grower

III permit . The renewal fee for the Grower III permit

shall be in the amount of $7,250 and shall cover

renewal for all locations. The renewal fee shall be

returned if the renewal is not granted.

(D) If the adult-use cannabis grower has revenue

of at least $1,000,000 during the previous year as an

adult-use cannabis grower, the adult-use cannabis

grower must apply for a Grower IV permit. The renewal

fee for the Grower IV permit shall be in the amount

of $9,000 and shall cover renewal for all locations.

The renewal fee shall be returned if the renewal is

not granted.

(iv) An application to renew a permit must be filed

with the department not more than six months nor less

than four months prior to expiration.

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

money order.

(2) Except as provided in paragraph (4), for an adult-

use cannabis processor:

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(i) An initial application fee in the amount of

$2,500 shall be paid. The fee is nonrefundable.

(ii) A fee for a permit as an adult-use cannabis

processor in the amount of $5,000 shall be paid. The

permit shall be valid for one year. An applicant shall

submit the permit fee at the time of submission of the

application. The fee shall be returned if the permit is

not granted.

(iii) A renewal fee for the permit as an adult-use

cannabis processor shall be as follows:

(A) If the adult-use cannabis processor has

revenue of less than $250,000 during the previous

year as an adult-use cannabis processor, the adult-

use cannabis processor must apply for a Processor I

permit. The renewal fee for the Processor I permit

shall be in the amount of $1,250 and shall cover

renewal for all locations. The renewal fee shall be

returned if the renewal is not granted.

(B) If the adult-use cannabis processor has

revenue of at least $250,000 but less than $500,000

during the previous year as an adult-use cannabis

processor, the adult-use cannabis processor must

apply for a Processor II permit. The renewal fee for

the Processor II permit shall be in the amount of

$3,250 and shall cover renewal for all locations. The

renewal fee shall be returned if the renewal is not

granted.

revenue of at least $500,000 but less than $1,000,000

during the previous year as an adult-use cannabis

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processor, the adult-use cannabis processor must

apply for a Processor III permit. The renewal fee for

the Processor III permit shall be in the amount of

$6,750 and shall cover renewal for all locations. The

renewal fee shall be returned if the renewal is not

granted.

(D) If the adult-use cannabis processor has

revenue of at least $1,000,000 during the previous

year as an adult-use cannabis processor, the adult-

use cannabis processor must apply for a Processor IV

permit. The renewal fee for the Processor IV permit

shall be in the amount of $8,500 and shall cover

renewal for all locations. The renewal fee shall be

returned if the renewal is not granted.

(iv) An application to renew a permit must be filed

with the department not more than six months nor less

than four months prior to expiration.

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

money order.

(3) For an adult-use cannabis dispensary:

(i) An initial application fee in the amount of

$2,500 shall be paid. The fee is nonrefundable.

(ii) A fee for a permit as an adult-use cannabis

dispensary shall be $5,000 for each location. The permit

shall be valid for one year. An applicant shall submit

the permit fee at the time of submission of the

application. The fee shall be returned if the application

is not granted.

(iii) A renewal fee for the permit as an adult-use

cannabis dispensary shall be as follows:

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(A) If the adult-use cannabis dispensary has

revenue of less than $250,000 during the previous

year as an adult-use cannabis dispensary, the adult-

use cannabis dispensary must apply for a Dispensary I

permit. The renewal fee for the Dispensary I permit

shall be in the amount of $1,500 and shall cover

renewal for all locations. The renewal fee shall be

returned if the renewal is not granted.

(B) If the adult-use cannabis dispensary has

revenue of at least $250,000 but less than $500,000

during the previous year as an adult-use cannabis

dispensary, the adult-use cannabis dispensary must

apply for a Dispensary II permit. The renewal fee for

the Dispensary II permit shall be in the amount of

$3,750 and shall cover renewal for all locations. The

renewal fee shall be returned if the renewal is not

granted.

revenue of at least $500,000 but less than $1,000,000

during the previous year as an adult-use cannabis

dispensary, the adult-use cannabis dispensary must

apply for a Dispensary III permit. The renewal fee

for the Dispensary III permit shall be in the amount

of $7,500 and shall cover renewal for all locations.

The renewal fee shall be returned if the renewal is

not granted.

(D) If the adult-use cannabis dispensary has

revenue of at least $1,000,000 during the previous

year as an adult-use cannabis dispensary, the adult-

use cannabis dispensary must apply for a Dispensary

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IV permit. The renewal fee for the Dispensary IV

permit shall be in the amount of $10,000 and shall

cover renewal for all locations. The renewal fee

shall be returned if the renewal is not granted.

(iv) An application to renew a permit must be filed

with the department not more than six months nor less

than four months prior to expiration.

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

money order.

(4) A person shall apply for a combination permit under

this paragraph if the person seeks to become a multiple

permittee in any two or three areas specified under

paragraphs (1), (2) and (3) . The following apply:

(i) An initial application fee in the amount of

$10,000 shall be paid. The fee is nonrefundable.

(ii) A fee for a combination permit in the amount of

$75,000 shall be paid. The permit shall be valid for one

year. An applicant shall submit the permit fee at the

time of submission of the application. The fee shall be

returned if the permit is not granted.

(iii) No credit toward a combination permit shall be

given if a permit has been granted under paragraph (1),

(2) or (3) during an overlapping period in which the

combination permit is sought.

(iv) An applicant for a combination permit under

this paragraph shall, at the time of the application,

satisfy the capital requirement of $250,000 in assets, of

which $100,000 shall be on deposit at a financial

institution.

(v) A renewal fee for a combination permit shall be

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as follows:

(A) If a person has revenue of less than

$1,500,000 during the previous year as a combination

permittee, the person must apply for a Combination I

permit. The renewal fee for the Combination I permit

shall be in the amount of $5,000 and shall cover

renewal for all locations. The renewal fee shall be

returned if the renewal is not granted.

(B) If a person has revenue of at least

$1,500,000 but less than $3,000,000 during the

previous year as a combination permittee, the person

must apply for a Combination II permit. The renewal

fee for the Combination II permit shall be in the

amount of $10,000 and shall cover renewal for all

locations. The renewal fee shall be returned if the

renewal is not granted.

$3,000,000 but less than $5,000,000 during the

previous year as a combination permittee, the person

must apply for a Combination III permit. The renewal

fee for the Combination III permit shall be in the

amount of $15,000 and shall cover renewal for all

locations. The renewal fee shall be returned if the

renewal is not granted.

(D) If a person has revenue of at least

$5,000,000 during the previous year as a combination

permittee, the person must apply for a Combination IV

permit. The renewal fee for the Combination IV permit

shall be in the amount of $20,000 and shall cover

renewal for all locations. The renewal fee shall be

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returned if the renewal is not granted.

(vi) No more than 35 combination permits may be

issued .

(vii) A combination permittee may seek up to three

adult-use cannabis grower permits, up to five adult-use

cannabis processor permits and up to 10 adult-use

cannabis dispensary permits.

(viii) If a person seeks to become a permittee in an

additional area specified under paragraphs (1), (2) and

(3) after becoming a multiple permittee under this

paragraph, no further fees shall be collected regarding

that additional initial application or permit.

(ix) A combination permittee shall satisfy all the

requirements under this chapter for each of the two or

three permits that comprise the combination permit.

(5) A fee of $250 shall be required when amending the

application to indicate relocation within this Commonwealth

or the addition or deletion of approved activities by the

adult-use cannabis organization.

(6) Fees payable under this section shall be deposited

into the fund.

Section 3206. Issuance.

A permit issued by the department to an adult-use cannabis

organization shall be effective only for that adult-use cannabis

organization and shall specify the following:

(1) The name and address of the adult-use cannabis

organization.

(2) The activities of the adult-use cannabis

organization permitted under this part.

(3) The land, buildings, facilities or location to be

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used by the adult-use cannabis organization.

(4) Any other information required by the department.

Section 3207. Relocation.

The department may approve an application from an adult-use

cannabis organization to relocate within this Commonwealth or to

add or delete activities or facilities.

Section 3208. Terms of permit.

A permit issued by the department under this part shall be

valid for one year from the date of issuance.

Section 3209. Permit renewals.

(a) Renewal.--An application for renewal shall include the

following information:

(1) Any material change in the information provided by

the adult-use cannabis organization in a prior application or

renewal of a permit.

(2) Any charge or initiated, pending or concluded

investigation, during the period of the permit, by any

governmental or administrative agency with respect to:

(i) any incident involving the theft, loss or

possible diversion of adult-use cannabis or cannabis

products grown, processed or dispensed by the applicant;

and

(ii) compliance by the applicant with the laws of

this Commonwealth with respect to any substance listed in

section 4 of the act of April 14, 1972 (P.L.233, No.64),

known as The Controlled Substance, Drug, Device and

Cosmetic Act.

(b) Approval.--The department shall renew a permit unless

the department determines that:

(1) The applicant is unlikely to maintain or be able to

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maintain effective control against diversion of adult-use

cannabis or cannabis products.

(2) The applicant is unlikely to comply with all laws of

this Commonwealth applicable to the activities in which the

applicant may engage under the permit.

permit shall specify in detail how the applicant has not

satisfied the department's requirements for renewal. Within 30

days of the department's decision, the applicant may submit

additional material to the department or demand a hearing, or

both. If a hearing is demanded, the department shall fix a date

as soon as practicable.

Section 3210. Suspension or revocation.

The department may suspend or revoke an adult-use cannabis

organization permit if:

(1) The department has evidence that the adult-use

cannabis organization has failed to maintain effective

control against diversion of adult-use cannabis or cannabis

products.

(2) The adult-use cannabis organization violates any

provision of this part or a regulation of the department.

(3) The adult-use cannabis organization has

intentionally, knowingly, recklessly or negligently failed to

comply with applicable laws of this Commonwealth relating to

adult-use cannabis or cannabis products.

Section 3211. Convictions prohibited.

The following individuals may not hold volunteer positions or

positions with remuneration in or be affiliated with an adult-

use cannabis organization in any way if the individual has been

convicted of any criminal offense related to the sale or

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possession of illegal drugs, narcotics or controlled substances

other than cannabis:

(1) Financial backers.

(2) Principals.

(3) Employees.

Section 3212. Diversity goals.

(a) Goals.--It is the intent and goal of the General

Assembly that the department promote diversity and the

participation by diverse groups in the activities authorized

under this part. In order to further this goal, the department

shall adopt and implement policies ensuring the following:

(1) That diverse groups are accorded equal opportunity

in the permitting process.

(2) That permittees promote the participation of diverse

groups in their operations by affording equal access to

employment opportunities.

(b) Duties of department.--To facilitate participation by

diverse groups in the activities authorized under this part, the

department shall:

(1) Conduct necessary and appropriate outreach,

including, if necessary, consulting with other Commonwealth

agencies to identify diverse groups who may qualify for

participation in activities under this part.

(2) Provide sufficient and continuous notice of the

participation opportunities afforded under this part by

publishing notice on the department's publicly accessible

Internet website.

(3) Include in an application for a permit under this

part language to encourage applicants to utilize and give

consideration to diverse groups for contracting or

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professional services opportunities.

date of this subsection, the department shall submit a report to

the chairperson and minority chairperson of the Health and Human

Services Committee of the Senate and the chairperson and

minority chairperson of the Health Committee of the House of

Representatives summarizing the participation and utilization of

diverse groups in the activities authorized under this part. The

report shall include:

(1) The participation level, by percentage, of diverse

groups in the activities authorized under this part.

(2) A summary of how diverse groups are utilized by

permittees, including in the provision of goods or services.

(3) Any other information the department deems

appropriate.

(d) Definitions.--The following words and phrases when used

in this section shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Disadvantaged business." As defined in 74 Pa.C.S. § 303(b)

(relating to diverse business participation).

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

business, women-owned business, service-disabled veteran-owned

small business or veteran-owned small business that has been

certified by a third-party certifying organization.

"Minority-owned business." As defined in 74 Pa.C.S. §

303(b).

"Service-disabled veteran-owned small business." As defined

in 51 Pa.C.S. § 9601 (relating to definitions).

"Third-party certifying organization." As defined in 74

Pa.C.S. § 303(b).

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"Veteran-owned small business." As defined in 51 Pa.C.S. §

9601.

"Women-owned business." As defined in 74 Pa.C.S. § 303(b).

Section 3213. Limitations on permits.

The following limitations apply to approval of permits for

adult-use cannabis grower s, adult-use cannabis processor s and

adult-use cannabis dispensar ies:

(1) The department may not initially issue permits to

more than 50 adult-use cannabis grower s.

(2) The department may not initially issue permits to

more than 50 adult-use cannabis processor s.

(3) The department may not initially issue permits to

more than 100 adult-use cannabis dispensar ies. Each adult-use

cannabis dispensar y may provide adult-use cannabis at no more

than three separate locations.

(4) The department may not issue more than five

individual adult-use cannabis dispensar y permits to one

person.

(5) The department may not issue more than one

individual adult-use cannabis grower permit to one person.

(6) The department may not issue more than one

individual adult-use cannabis processor permit to one person.

(7) An adult-use cannabis dispensar y may obtain adult-

use cannabis only from an adult-use cannabis grower or adult-

use cannabis processor holding a valid permit under this

part.

(8) A n adult-use cannabis grower or adult-use cannabis

processor may provide adult-use cannabis only to an adult-use

cannabis dispensar y holding a valid permit under this part.

(9) Notwithstanding the other provisions of this

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section, upon review of market conditions, the department may

issue additional permits for adult-use cannabis grower s,

adult-use cannabis processor s or adult-use cannabis

dispensar ies if the department determines that underserved

regions exist in this Commonwealth and a clear demand exists

for the issuance of additional permits.

CHAPTER 33

ADULT-USE CANNABIS CONTROLS

Section 3301. Electronic tracking.

(a) Requirement.--An adult-use cannabis grower , adult-use

cannabis processor or adult-use cannabis dispensar y must

implement an electronic inventory tracking system which shall be

directly accessible to the department through its electronic

database that electronically tracks all adult-use cannabis and

cannabis products on a daily basis. The system shall include

tracking of all of the following:

(1) For an adult-use cannabis grower or adult-use

cannabis processor , a seed-to-sale tracking system that

tracks the adult-use cannabis from seed to plant until the

adult-use cannabis is sold to an adult-use cannabis

dispensar y.

(2) For an adult-use cannabis dispensar y, adult-use

cannabis and cannabis products from purchase from the adult-

use cannabis grower or adult-use cannabis processor to sale

to a client.

(3) For an adult-use cannabis grower or adult-use

cannabis processor and an adult-use cannabis dispensar y, a

daily log of each day's beginning inventory, acquisitions,

amounts purchased and sold, disbursements, disposals and

ending inventory. The tracking system shall include prices

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paid and amounts collected from clients.

(4) For an adult-use cannabis grower , adult-use cannabis

processor and adult-use cannabis dispensar y, a system for

recall of defective adult-use cannabis and cannabis products.

(5) For an adult-use cannabis grower , adult-use cannabis

processor and adult-use cannabis dispensar y, a system to

track the plant waste resulting from the growth of adult-use

cannabis or other disposal, including the name and address of

any disposal service.

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

under subsection (a), each adult-use cannabis organization shall

track the following:

(1) Security and surveillance.

(2) Recordkeeping and record retention.

(3) The acquisition, possession, growing and processing

of adult-use cannabis and cannabis products.

(4) Delivery and transportation, including amounts and

method of delivery.

(5) Dispensing, including amounts, pricing and amounts

collected from clients.

systems under subsection (a) shall be confidential and not

subject to the act of February 14, 2008 (P.L.6, No.3), known as

the Right-to-Know Law.

(d) Reports.--Within one year of the issuance of the first

permit to an adult-use cannabis grower , adult-use cannabis

processor or adult-use cannabis dispensar y, and every three

months thereafter in a form and manner prescribed by the

department, the following information shall be provided to the

department, which shall compile the information and post the

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information on the department's publicly accessible Internet

website:

(1) The amount of adult-use cannabis and cannabis

products sold by an adult-use cannabis grower or adult-use

cannabis processor during each three-month period.

(2) The price of amounts of adult-use cannabis and

cannabis products sold by adult-use cannabis grower s or

adult-use cannabis processor s as determined by the

department.

(3) The amount of adult-use cannabis and cannabis

products purchased by each adult-use cannabis dispensar y in

this Commonwealth.

(4) The cost of amounts of adult-use cannabis and

cannabis products to each adult-use cannabis dispensar y in

amounts as determined by the department.

(5) The total amount and dollar value of adult-use

cannabis and cannabis products sold by each adult-use

cannabis dispensar y in the three-month period.

Section 3302. A dult-use cannabis grower s and adult-use cannabis

processor s.

(a) Authorization.--Subject to subsection (b), an adult-use

cannabis grower or adult-use cannabis processor may do all of

the following in accordance with department regulations:

(1) Obtain seed from outside this Commonwealth to

initially grow adult-use cannabis.

(2) Obtain seed and plant material from another adult-

use cannabis grower or adult-use cannabis processor within

this Commonwealth to grow adult-use cannabis.

(b) Limitations.-- A n adult-use cannabis grower or adult-use

cannabis processor may only grow, store, harvest or process

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adult-use cannabis in an indoor, enclosed, secure facility

which:

(1) includes electronic locking systems, electronic

surveillance and other features required by the department;

and

(2) is located within this Commonwealth.

Section 3303. Storage and transportation.

The department shall develop regulations relating to the

storage and transportation of adult-use cannabis and cannabis

products among adult-use cannabis grower s, adult-use cannabis

processor s, testing laboratories and adult-use cannabis

dispensar ies that ensure adequate security to guard against in-

transit losses. The tracking system developed by the department

shall include all transportation and storage of adult-use

cannabis and cannabis products. 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

trailer.

(4) Obtaining copies of drivers' licenses and

registrations and other information related to security and

tracking.

(5) The use of GPS systems.

(6) The number of drivers or other security required to

ensure against storage or in-transit losses.

(7) Recordkeeping for delivery and receipt of cannabis

products.

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(8) R equirements to utilize any electronic tracking

system required by the department.

(9) T ransporting adult-use cannabis and cannabis

products to an adult-use cannabis grower, adult-use cannabis

processor, approved laboratory or adult-use cannabis

dispensar y.

Section 3304. Laboratory.

A n adult-use cannabis grower or adult-use cannabis processor

shall contract with an independent laboratory to test the adult-

use cannabis and cannabis products produced by the adult-use

cannabis grower or adult-use cannabis processor . The department

shall approve the laboratory and require that the laboratory

report testing results in a manner as the department shall

determine, including requiring a test at harvest and a test at

final processing. The possession by a laboratory of adult-use

cannabis and cannabis products shall be a lawful use.

Section 3305. Prices.

The department and the Department of Revenue shall monitor

the price of adult-use cannabis and cannabis products sold by

adult-use cannabis grower s or adult-use cannabis processor s and

by adult-use cannabis dispensar ies, including a per-dose price

and a 30-day average wholesale price. If the department and the

Department of Revenue determine that the prices are unreasonable

or excessive, the department may implement a cap on the price of

adult-use cannabis and cannabis products being sold for a period

of six months. The cap may be amended during the six-month

period. If the department and the Department of Revenue

determine that the prices become unreasonable or excessive

following the expiration of a six-month cap, additional caps may

be imposed for periods not to exceed six months.

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CHAPTER 34

ADULT-USE CANNABIS DISPENSARIES

Section 3401. Dispensing to clients.

(a) Authorization .-- An adult-use cannabis dispensar y that

has been issued a permit under this part may dispense adult-use

cannabis and cannabis products.

(b) Receipt.--The adult-use cannabis dispensar y shall

provide to the client a receipt, as appropriate. The receipt

shall include all of the following:

(1) The name, address and any identification number

assigned to the adult-use cannabis dispensar y by the

department.

(2) The date the adult-use cannabis or cannabis product

was dispensed.

(3) The form and the quantity of adult-use cannabis or

cannabis product dispensed.

Section 3402. Facility requirements.

(a) General rule.--

(1) An adult-use cannabis dispensar y may only dispense

adult-use cannabis and cannabis products in an indoor,

enclosed, secure facility located within this Commonwealth,

as determined by the department.

(2) In the absence of a valid combination permit under

this chapter, an adult-use cannabis dispensar y may not

operate on the same site as a facility used for growing and

processing adult-use cannabis or cannabis products.

(3) An adult-use cannabis dispensar y may not be located

within 1,000 feet of the property line of a public, private

or parochial school or a day-care center.

(b) Adjustment or waiver of prohibition.--The department may

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amend a prohibition under subsection (a)(3) if it is shown by

clear and convincing evidence that the amendment is necessary to

provide adequate access to clients. An amendment may include

additional security, physical plant of a facility or other

conditions necessary to protect children.

Section 3403. Posting.

An adult-use cannabis dispensar y shall post a copy of its

permit in a location within its facility in a manner that is

easily observable by clients, law enforcement officers and

agents of the department.

CHAPTER 35

TAX ON ADULT-USE CANNABIS AND CANNABIS PRODUCTS

Section 3501. 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:

"Annual income." An applicant's annual income as reported on

the applicant's W-2 tax form.

"Institution of higher education." Any of the following:

(1) A community college operating under Article XIX-A of

the act of March 10, 1949 (P.L.30, No.14), known as the

Public School Code of 1949.

(2) A university within the State System of Higher

Education.

(3) The Pennsylvania State University.

(4) The University of Pittsburgh.

(5) Temple University.

(6) Lincoln University.

(7) Another institution that is designated as "State

related" by the Commonwealth.

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(8) An accredited private or independent college or

university.

(9) A private licensed school as defined in the act of

December 15, 1986 (P.L.1585, No.174), known as the Private

Licensed Schools Act.

"Municipality." A city, borough, incorporated town, township

or home rule municipality.

"Previous taxable year." The taxable year immediately prior

to the year in which the individual is applying for

reimbursement of student loan payments.

Section 3502. Tax on adult-use cannabis and cannabis products.

(a) Wholesale tax.--

(1) Except as provided in paragraph (3), a tax at the

following rates is imposed on an adult-use cannabis grower or

adult-use cannabis processor on the sale of adult-use

cannabis or cannabis products as follows:

(i) Ten percent on the sale of adult-use cannabis by

an adult-use cannabis grower to another adult-use

cannabis grower or to an adult-use cannabis processor.

(ii) Ten percent on the sale of cannabis products by

an adult-use cannabis processor to another adult-use

cannabis processor or to an adult-use cannabis

dispensary.

(iii) Ten percent on the value of the transfer of

adult-use cannabis by an adult-use cannabis grower

operating under a combination permit under section

3205(5) to an adult-use cannabis processor operating

under that same combination permit based upon the 30-day

average wholesale price as monitored under section 3305.

(iv) Ten percent on the value of the transfer of

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cannabis products by an adult-use cannabis processor

operating under a combination permit under section

3205(5) to an adult-use cannabis dispensary operating

under that same combination permit based upon the 30-day

average wholesale price as monitored under section 3305.

(2) The tax under paragraph (1):

(i) Shall be charged against and paid by the adult-

use cannabis grower or adult-use cannabis processor that

is selling or transferring the adult-use cannabis or

cannabis product.

(ii) Shall not be added as a separate charge or line

item on any sales slip, invoice, receipt or other

statement or memorandum of the price paid by an adult-use

cannabis dispensar y.

(3) The tax under paragraph (1) shall not be levied on

an adult-use cannabis grower or adult-use cannabis processor

that partners with a Pennsylvania farm to grow or process

cannabis for the adult-use cannabis grower or adult-use

cannabis processor .

(4) The tax imposed under paragraph (1) shall be

administered in the same manner as the tax imposed under

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

as the Tax Reform Code of 1971 .

(5) The Department of Revenue shall deposit money

received from the tax imposed under paragraph (1) into the

fund.

(b) Excise tax.--

(1) The following rate of excise tax is imposed at the

point of sale of adult-use cannabis or cannabis products from

an adult-use cannabis dispensary or a person holding a valid

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combination permit specified under section 3205(5) that

involves an adult-use cannabis dispensary:

(i) Six percent for the first two years that the

adult-use cannabis dispensary or other person is

operating under the permit.

(ii) Twelve percent for the third and fourth years

that the adult-use cannabis dispensary or other person is

operating under the permit.

(iii) Nineteen percent for the fifth and each

subsequent year that the adult-use cannabis dispensary or

other person is operating under the permit.

(2) A person required to collect the tax imposed under

paragraph (1) shall clearly provide notice of the assessment

of the tax to the consumer through advertising or separate

listing on a sales receipt or invoice.

(3) The tax imposed under paragraph (1) shall be in

addition to the tax imposed under section 202 of the Tax

Reform Code of 1971.

(4) The tax imposed under paragraph (1) shall be

administered in the same manner as the tax imposed under

Article II of the Tax Reform Code of 1971.

(5) The Department of Revenue shall deposit money

received from the tax imposed under paragraph (1) into the

fund.

imposed in subsection (b), within 60 days after the effective

date of this subsection, the governing body of a municipality

may adopt an ordinance to impose a tax at the point of sale of

adult-use cannabis or cannabis products at the rate of no more

than 3%. The following apply:

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(1) The ordinance imposing the tax under this subsection

shall be clear and in language that is readily understandable

by a layperson and shall be in substantially the following

form:

The municipality of (insert name) hereby imposes a

(insert percentage) tax at the point of sale of all

adult-use cannabis and cannabis products.

(2) A person required to collect the tax under this

subsection shall clearly provide notice of the assessment of

the tax to the consumer through advertising or a separate

listing on the sales receipt or invoice.

(3) The tax under this subsection shall be collected by

the municipality in accordance with the ordinance and

distributed as follows:

(i) Forty-five percent of the money received from

the tax under this subsection shall be deposited into the

general fund of the municipality.

(ii) Forty-five percent of the money received from

the tax under this subsection shall be used to support

the following in the county in which the municipality is

located:

(A) The office of public defender for the legal

representation of indigent criminal defendants.

(B) Services provided by the county children and

youth social service agency.

by the county or recognized by the municipality as

having demonstrated the ability to provide any of the

following:

(I) Improved social, emotional, academic and

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career readiness competencies of school-age

children.

(II) The reduction of negative behaviors,

such as violence and crime, adolescent

pregnancies, tobacco, alcohol and substance

abuse, disengagement from school, school

suspension and truancy and health-compromising

behaviors.

(III) A safe after-school environment for

children of working families.

(iii) Ten percent of the money received from the tax

under this subsection shall be used by the municipal

police to enforce the adult-use cannabis provisions under

this part. For purposes of this subparagraph, the term

"m unicipal police":

(A) means a public agency of a municipality

having general police powers and charged with making

arrests in connection with the enforcement of the

criminal or traffic laws; and

(B) includes any regional police department from

which the municipality receives police services or

any police department that provides the municipality

with police services pursuant to agreement or

contract.

Section 3503. Commonwealth Reinvestment Fund.

(a) Establishment.--The Commonwealth Reinvestment Fund is

established as a restricted account in the State Treasury.

(b) Source of money.--

(1) Money received under section 3502(a)(5) and (b)(5)

shall be deposited into the fund.

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(2) Any interest accrued on money received under section

3502(a)(5) and (b)(5) shall be deposited into the fund.

(1) The money deposited into the fund may only be used

for the purposes specified under this chapter.

(2) The State Treasurer shall disburse money from the

fund in accordance with the regulations promulgated under

this chapter and published in the Pennsylvania Bulletin.

(d) Appropriations.--Money from the fund:

(1) Is hereby appropriated on a continuing basis and

shall not lapse at the end of a fiscal year.

(2) Shall be allocated in the following manner:

(i) Forty percent to the Department of Education for

the Student Loan Reimbursement Program under section

3504.

(ii) Forty percent to the Pennsylvania Housing

Finance Agency for the Mixed Income Housing Program under

section 3505.

(iii) Ten percent to the Department of Education for

the After-school Program under section 3506.

(iv) Eight percent to the Department of Community

and Economic Development for the Minority and Woman

Cannabis Grant Program under section 3507.

(v) One percent to the department for a public

information and education campaign regarding adult-use

cannabis in this Commonwealth and the provisions of this

part.

(vi) One percent to the advisory board established

under section 1201 for its operations.

Section 3504. Student Loan Reimbursement Program.

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(a) Establishment.--The Student Loan Reimbursement Program

is established within the Department of Education.

(b) Rules and regulations.--No later than six months after

the effective date of this section , the Department of Education

shall promulgate rules and regulations, including an application

form, for the Student Loan Reimbursement Program in accordance

with this section.

reimbursement of student loan payments under the Student Loan

Reimbursement Program:

(1) A student enrolled in an institution of higher

education in this Commonwealth.

(2) A resident of this Commonwealth.

(d) Reimbursement amount.--In accordance with the

calculation under subsection (e), the Department of Education

shall reimburse no more than $2,000 or the total amount of an

applicant's entire student loan amount, whichever is less, in

each calendar year.

(e) Calculation.--The Department of Education shall use the

following calculation to determine the reimbursement amount for

an applicant:

(1) Subtract:

(i) an applicant's total annual income from the

preceding taxable year; from

(ii) the total amount of an applicant's student

loans.

(2) Divide the difference under paragraph (1) by 10.

(3) Multiply the quotient under paragraph (2) by the

following equation:

(i) the number of days the applicant lived in this

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Commonwealth during the previous calendar year; divided

(ii) 365.

(4) Multiply the product under paragraph (3) by the

following equation:

(i) an applicant's annual income earned during the

previous taxable year while working in this Commonwealth;

divided by

(ii) an applicant's total annual income from the

previous taxable year.

(f) Maximum amount.--The product under subsection (e)(4)

shall be the maximum amount eligible for reimbursement.

(g) Limitations.--

(1) If an applicant's total annual income equals the

applicant's total amount of student loans, the Department of

Education shall use the amount of $1,000 in place of the

difference under subsection (e)(1).

(2) An applicant whose total annual income is greater

than the applicant's total student loan amount shall not be

eligible to participate in the Student Loan Reimbursement

Program.

(h) Frequency of applications.--An individual may apply for

student loan reimbursement under the Student Loan Reimbursement

Program once each calendar year.

(i) Rolling basis.--Reimbursements under the Student Loan

Reimbursement Program shall be provided on a rolling basis based

on when an application is approved.

(j) Availability of money.--The Student Loan Reimbursement

Program shall cease approving applications or providing

reimbursements upon the depletion of the money specified under

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section 3503(d)(2)(i).

Section 3505. Mixed Income Housing Program.

(a) Establishment.--The Mixed Income Housing Program is

established within the Pennsylvania Housing Finance Agency.

(b) Rules and regulations.--No later than six months after

the effective date of this section , the Pennsylvania Housing

Finance Agency shall promulgate rules and regulations for the

Mixed Income Housing Program in accordance with this section,

which shall include:

(1) A grant application form.

(2) Written standards regarding the submission of grant

applications, review of grant applications and approval or

disapproval of grant applications.

(3) Criteria used to evaluate whether or not to approve

grants.

(4) Specific components of mixed income housing,

including the required percentages of lower income and higher

income thresholds for occupants of the existing or proposed

mixed income housing development.

administered by the Pennsylvania Housing Finance Agency to

develop or renovate mixed income housing units within the

municipality.

(d) Considerations.--In reviewing a grant application, the

Pennsylvania Housing Finance Agency shall consider the needs of

the municipality seeking the grant, geographic diversity and

demonstrated or anticipated outcomes achieved as a result of the

approval of the grant.

(e) Availability of money.--The Mixed Income Housing Program

shall be dependent on the availability of money specified under

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section 3503(d)(2)(ii).

(f) Existing resources.--Money distributed through the Mixed

Income Housing Program shall not supplant existing resources

dedicated to affordable housing activities or other programs

administered by the Pennsylvania Housing Finance Agency.

(g) Limitations.--The Pennsylvania Housing Finance Agency

may limit the number of grants or the amount of grant money

approved for a municipality based on the total number of grant

applications submitted or the total amount of grant money

requested by municipalities.

S ection 3506. After-school Program.

(a) Establishment.--The After-school Program is established

within the Department of Education.

(b) Rules and regulations.--No la ter than six months after

the effective date of this section , the Department of Education

shall promulgate rules and regulations, including an application

form, for the After-school Program in accordance with this

section, which shall include:

(1) A grant application form.

(2) Written standards regarding the submission of grant

applications, review of grant applications and approval or

disapproval of grant applications.

(3) Criteria used to evaluate whether or not to approve

grants.

(4) Specific components of local after-school programs,

which shall include evidence-based outcomes and shall relate

to one or more of the following:

(i) The improvement of social, emotional, academic

and vocational competencies of school-age children.

(ii) The prevention and reduction of out-of-wedlock

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adolescent pregnancies.

(iii) The reduction of other negative behaviors such

as violence and crime, tobacco, alcohol and substance

abuse, disengagement from school, school suspension and

truancy and health-compromising behaviors.

(iv) Providing parents with a safe after-school

environment for their children.

apply for grants administered by the Department of Education for

local after-school programs under this section.

(d) Considerations.--In reviewing a grant application, the

Department of Education shall consider the needs of the

community, geographic diversity and demonstrated or anticipated

outcomes achieved as a result of the approval of the grant.

(e) Availability of money.--The After-school Program shall

be dependent on the availability of money specified under

section 3503(d)(2)(iii).

(f) Existing resources.--Money distributed through the

After-school Program shall not supplant existing resources

dedicated to local after-school programs or other programs

administered by the Department of Education.

(g) Limitations.--The Department of Education may limit the

number of grants or the amount of grant money approved based on

the total number of grant applications submitted or the total

amount of grant money requested.

Section 3507. Minority and Woman Cannabis Grant Program.

(a) Establishment.-- The Minority and Woman Cannabis Grant

Program is established within the Department of Community and

Economic Development.

(b) Rules and regulations.--No later than six months after

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the effective date of this section, the Department of Community

and Economic Development shall promulgate rules and regulations

for the Minority and Woman Cannabis Grant Program in accordance

with this section, which shall include:

(1) A grant application form.

(2) W ritten standards regarding the submission of grant

applications, review of grant applications and approval or

disapproval of grant applications.

(3) Criteria used to evaluate whether or not to approve

grants.

apply for grants administered by the Department of Community and

Economic Development to create and develop a business related to

the cannabis industry.

(d) Considerations.--In reviewing a grant application, the

Department of Community and Economic Development shall consider

the needs of the individual seeking the grant and demonstrated

or anticipated outcomes achieved as a result of the approval of

the grant.

(e) Availability of money.--The Minority and Woman Cannabis

Grant Program shall be dependent on the availability of money

specified under section 3503(d)(2)(iv).

(f) Limitations.--The Department of Community and Economic

Development may limit the number of grants or the amount of

grant money approved for an individual based on the total number

of grant applications submitted or the total amount of grant

money requested by individuals.

(g) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

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"Minority." A citizen or lawful permanent resident of the

United States who is an ethnic person of color and who is any of

the following:

(1) Black, defined as an individual having origins in

any of the Black racial groups of Africa.

(2) Hispanic, defined as an individual of Mexican,

Puerto Rican, Cuban, Central or South American or other

Spanish or Portuguese culture or origin, regardless of race.

(3) Native American, defined as an American Indian,

Eskimo, Aleut or Native Hawaiian.

(4) Pacific-Asian, defined as an individual whose

origins are from Japan, China, Taiwan, Korea, Vietnam, Laos,

Cambodia, the Philippines, Samoa, Guam or the United States

Trust Territories of the Pacific, including the Northern

Mariana Islands.

(5) Asian-Indian, defined as an individual whose origins

are from India, Pakistan or Bangladesh.

(6) An individual of any other group of natural persons

identified as minorities in the respective project

specifications of an awarding department or participating

local agency.

CHAPTER 36

ADMINISTRATION

Section 3601. Governing practice and procedure.

The provisions of 2 Pa.C.S. (relating to administrative law

and procedure) shall apply to all actions of the department

under this part constituting an adjudication as defined in 2

Pa.C.S. § 101 (relating to definitions).

Section 3602. Reports by adult-use cannabis organizations.

An adult-use cannabis organization shall periodically file

20200HB2050PN3417 - 123 -

reports related to its activities. The department shall

determine the information required in and the frequency of

filing the reports.

Section 3603. Law enforcement notification.

Notwithstanding any provision of this part or any other law

to the contrary, the department may notify any appropriate law

enforcement agency of information relating to a violation or

suspected violation of this part. The department shall verify to

law enforcement personnel in an appropriate case whether a

permit is valid.

Section 3604. Evaluation.

The department may provide for an analysis and evaluation of

the implementation and effectiveness of this part. The

department may enter into agreements with one or more persons

for the performance of an evaluation of the implementation and

effectiveness of this part.

Section 3605. Report.

(a) Report required.--The department shall submit a written

report under subsection (b) every two years, beginning two years

after the effective date of this section, to the following:

(1) The Governor.

(2) The Attorney General.

(3) The President pro tempore of the Senate.

(4) The Speaker of the House of Representatives.

(5) The Majority Leader and the Minority Leader of the

Senate.

(6) The Majority Leader and the Minority Leader of the

House of Representatives.

(7) The chairperson and minority chairperson of the

Judiciary Committee of the Senate.

20200HB2050PN3417 - 124 -

(8) The chairperson and minority chairperson of the

Judiciary Committee of the House of Representatives.

(9) The chairperson and minority chairperson of the

Health and Human Services Committee of the Senate.

(10) The chairperson and minority chairperson of the

Health Committee of the House of Representatives.

(b) Contents of report.--The following information shall be

included in the report:

(1) An assessment of the use of adult-use cannabis as a

result of the enactment of this part.

(2) An assessment of the benefits and risks to patients

using adult-use cannabis under this part, including adverse

events.

(3) Recommendations for amendments to this part for

reasons of client safety or to aid the general welfare of the

residents of this Commonwealth.

Section 3606. Temporary regulations generally.

(a) Promulgation.--In order to facilitate the prompt

implementation of this part, the department may promulgate

temporary regulations that shall expire not later than two years

following the publication of the temporary regulation. The

department may promulgate temporary regulations not 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) Sections 204(b) and 301(10) of the act of October

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

Attorneys Act.

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

the Regulatory Review Act.

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(b) Expiration.--The department's authority to adopt

temporary regulations under subsection (a) shall expire two

years after the effective date of this section. Regulations

adopted after this period shall be promulgated as provided by

law.

( c) Publication.--The department shall transmit notice of

the temporary regulations under this section to the Legislative

Reference Bureau, which shall publish the notice in the

Pennsylvania Bulletin no later than six months after the

effective date of this section.

Section 3607. Special permitting circumstances.

Upon the effective date of this section and with the payment

by a person holding a valid permit under Part II of applicable

fees in accordance with this part, the department shall issue a

permit for the person to engage in activities as an adult-use

cannabis grower, adult-use cannabis processor or adult-use

cannabis dispensary, in accordance with this part.

CHAPTER 37

ADVISORY BOARD

Section 3701. Duties of advisory board.

In addition to the duties specified under section 1201(j),

the Medical Cannabis Advisory Board shall:

(1) Examine and analyze the statutory and regulatory law

relating to the use of adult-use cannabis and cannabis

products within this Commonwealth.

(2) Determine the number of permits the department shall

issue for adult-use cannabis growers, adult-use cannabis

processors and adult-use cannabis dispensaries.

CHAPTER 38

OFFENSES RELATED TO ADULT-USE CANNABIS AND

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CANNABIS PRODUCTS

Section 3801 . Criminal diversion of adult-use cannabis and

cannabis products.

(a) Individual under 21 years of age.--A person commits a

misdemeanor of the first degree if the person intentionally,

knowingly or recklessly provides adult-use cannabis or cannabis

products to an individual under 21 years of age.

(b) Adult-use cannabis organization.--In addition to any

other penalty provided by law, an employee, financial backer,

operator or principal of an adult-use cannabis organization

commits a misdemeanor of the first degree if the person

intentionally, knowingly or recklessly sells, dispenses, trades,

delivers or otherwise provides adult-use cannabis or cannabis

products to a person who is not lawfully permitted to receive

adult-use cannabis or cannabis products.

Section 3802. Additional penalties.

(a) Criminal penalties.--In addition to any other penalty

provided by law, an employee, financial backer, operator or

principal of an adult-use cannabis organization who violates a

provision of this part, other than those specified in section

3801, or a regulation promulgated under this part:

(1) For a first offense, commits a misdemeanor of the

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

a fine of not more than $5,000, or to imprisonment for not

more than six months.

(2) For a second or subsequent offense, commits a

misdemeanor of the third degree and shall, upon conviction,

be sentenced to pay a fine of not more than $10,000, or to

imprisonment for not less than six months nor more than one

year, or both.

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(b) Civil penalties.--In addition to any other remedy

available to the department, the department may assess a civil

penalty as provided in this subsection for a violation of this

part, a regulation promulgated under this part or an order

issued under this part or the regulation. The following shall

apply:

(1) The department may assess a penalty of not more than

$10,000 for each violation and an additional penalty of not

more than $1,000 for each day of a continuing violation. In

determining the amount of each penalty, the department shall

take the following factors into consideration:

(i) The gravity of the violation.

(ii) The potential harm resulting from the violation

to clients or the general public.

(iii) The willfulness of the violation.

(iv) Previous violations, if any, by the person

being assessed.

(v) The economic benefit to the person being

assessed for failing to comply with the requirements of

this part, a regulation promulgated under this part or an

order issued under this part or the regulation.

(2) If the department finds that the violation did not

threaten the safety or health of a client or the general

public and the violator took immediate action to remedy the

violation upon learning of the violation, the department may

issue a written warning in lieu of assessing a civil penalty.

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

procures or causes another person to violate this part, a

regulation promulgated under this part or an order issued

under this part or the regulation shall be subject to the

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civil penalties provided under this subsection.

(1) In addition to the penalties provided in subsection

(b) and any other penalty authorized by law, the department

may impose the following sanctions:

(i) Revoke or suspend the permit of a person found

to be in violation of this part, a regulation promulgated

under this part or an order issued under this part or

regulation.

(ii) Revoke or suspend the permit of a person for

conduct or activity or the occurrence of an event that

would have disqualified the person from receiving the

permit.

(iii) Suspend a permit of a person pending the

outcome of a hearing in a case in which the permit could

be revoked.

(iv) Order restitution of funds or property

unlawfully obtained or retained by a permittee.

(v) Issue a cease and desist order.

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

procures or causes another person to violate this part shall

be subject to the sanctions provided under this subsection.

(d) Costs of action.--The department may assess against a

person determined to be in violation of this part the costs of

investigation of the violation.

(e) Minor violations.--Nothing in this section shall be

construed to require the assessment of a civil penalty or the

imposition of a sanction for a minor violation of this part if

the department determines that the public interest will be

adequately served under the circumstances by the issuance of a

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written warning.

Section 3803. Other restrictions.

This part does not permit a person to engage in and does not

prevent the imposition of a civil, criminal or other penalty for

the following:

(1) Undertaking a task under the influence of adult-use

cannabis, when doing so would constitute negligence,

professional malpractice or professional misconduct.

(2) Possessing or using adult-use cannabis in a State or

county correctional facility, including a facility owned or

operated or under contract with the Department of Corrections

or the county which houses inmates serving a portion of their

sentences on parole or other community correction program.

Nothing in this paragraph shall be construed to apply to

employees of the facilities specified in this paragraph. The

Department of Corrections shall adopt a written policy no

later than 18 months from the effective date of this section

regarding the possession and use of adult-use cannabis by

employees in State correctional facilities. The governing

authority of a county may adopt a resolution no later than 18

months from the effective date of this section regarding the

possession and use of adult-use cannabis by employees in a

county correctional facility.

(3) Possessing or using adult-use cannabis in a youth

detention center or other facility which houses children

adjudicated delinquent, including the separate, secure State-

owned facility or unit utilized for sexually violent

delinquent children under 42 Pa.C.S. § 6404 (relating to

duration of inpatient commitment and review). As used in this

paragraph, the term "sexually violent delinquent child" shall

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have the meaning given to it in 42 Pa.C.S. § 6402 (relating

to definitions). Nothing in this paragraph shall be construed

to apply to employees of the facilities set forth in this

paragraph.

Section 3804. Lawful conduct.

Notwithstanding any other provision of law, the following

acts are not unlawful and are not an offense under the laws of

this Commonwealth or the law of a locality within this

Commonwealth or a basis for seizure or forfeiture of an asset

under the laws of this Commonwealth for a person 21 years of age

or older:

(1) Possessing, using, displaying, purchasing or

transporting cannabis accessories, cannabis or cannabis

products.

(2) Any of the following:

(i) Possessing or growing not more than the

equivalent of 50 square feet of mature, flowering

cannabis plants within a private residence.

(ii) Possessing the cannabis produced by the plants

under subparagraph (i) on the premises where the plants

were grown, so long as the growing takes place in an

enclosed and locked space and is not conducted openly or

publicly and the cannabis is not made available for sale.

(3) Growing cannabis under paragraph (2)(i) and

transferring no more than one ounce of the cannabis produced

under paragraph (2)(i) without remuneration or other

consideration to a person who is 21 years of age or older.

(4) Consuming cannabis or cannabis products, provided

that nothing in this section shall permit consumption that is

conducted openly and publicly or in a manner that endangers

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others.

(5 ) Assisting another person who is 21 years of age or

older in an act described under paragraph (1), (2), (3) or

(4).

CHAPTER 39

MISCELLANEOUS PROVISIONS

Section 3901. Regulations.

The department shall promulgate all regulations necessary to

carry out the provisions of this part.

Section 3902. Financial and employment interests.

(a) Financial interests.--Except as may be provided for the

judiciary by rule or order of the Pennsylvania Supreme Court, an

executive-level public employee, public official or party

officer, or an immediate family member of any of these

individuals, shall not intentionally or knowingly hold a

financial interest in an adult-use cannabis organization or in a

holding company, affiliate, intermediary or subsidiary of an

adult-use cannabis organization while the individual is an

executive-level public employee, public official or party

officer and for one year following termination of the

individual's status as an executive-level public employee,

public official or party officer.

(b) Employment.--Except as may be provided by rule or order

of the Pennsylvania Supreme Court, no executive-level public

employee, public official or party officer shall be employed by

an adult-use cannabis organization or by a holding company,

affiliate, intermediary or subsidiary of an adult-use cannabis

organization while the individual is an executive-level public

employee, public official or party officer and for one year

following termination of the individual's status as an

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executive-level public employee, public official or party

officer.

commits a misdemeanor and shall, upon conviction, be sentenced

to pay a fine of not more than $1,000 or to imprisonment for not

more than one year, or both.

(d) State Ethics Commission.--The State Ethics Commission

shall do all of the following:

(1) Issue a written determination of whether a person is

subject to subsection (a) or (b) upon the written request of

the person or any other person that may have liability for an

action taken with respect to the person. A person that relies

in good faith on a determination made under this paragraph

shall not be subject to a penalty for an action taken,

provided that all material facts set forth in the request for

the determination are correct.

(2) Publish a list of all State, county, municipal and

other government positions that meet the definitions of

"public official" as defined under 4 Pa.C.S. § 1512(b)

(relating to financial and employment interests) and

"executive-level public employee" as defined under 4 Pa.C.S.

§ 1103 (relating to definitions). The Office of

Administration shall assist the State Ethics Commission in

the development of the list. The State Ethics Commission

shall provide notice of the development of the list to the

Legislative Reference Bureau, which shall publish the list in

the Pennsylvania Bulletin. The list shall be published

biennially in the Pennsylvania Bulletin and posted by the

department on the department's publicly accessible Internet

website. Upon request, each public official shall have a duty

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to provide the State Ethics Commission with adequate

information to accurately develop and maintain the list. The

State Ethics Commission may impose a civil penalty under 65

Pa.C.S. § 1109(f) (relating to penalties) upon an individual,

including a public official or executive-level public

employee, who fails to cooperate with the State Ethics

Commission under this subsection. A person that relies in

good faith on the list published by the State Ethics

Commission shall not be subject to a penalty for a violation

of this section.

(e) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Financial interest." As defined in 4 Pa.C.S. § 1512(b).

"Immediate family." As defined in 4 Pa.C.S. § 1512(b).

"Party officer." As defined in 4 Pa.C.S. § 1512(b).

"Public official." The term shall include the following:

(1) The Governor, Lieutenant Governor, a member of the

Governor's cabinet, State Treasurer, Auditor General and

Attorney General.

(2) A member of the Senate or House of Representatives.

(3) An individual elected or appointed to an office of a

county or municipality that directly receives a distribution

of revenue from the fund.

(4) An individual elected or appointed to a department,

agency, board, commission, authority or other governmental

body not included in paragraph (1), (2) or (3) that directly

receives a distribution of revenue from the fund.

(5) An individual elected or appointed to a department,

agency, board, commission, authority, county, municipality or

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other governmental body not included in paragraph (1), (2) or

(3) with discretionary power which may influence or affect

the outcome of an action or decision and who is involved in

the development of regulation or policy relating to an adult-

use cannabis organization or who is involved in other matters

under this part.

The term does not include a member of a school board or an

individual who held an uncompensated office with a governmental

body prior to the first January 1 after the effective date of

this subsection, and who no longer holds the office as of the

first January 1 after the effective date of this subsection.

Section 3903. Employers and control of property.

(a) Employers.--

(1) This section is not intended to require an employer

to permit or accommodate the use, consumption, possession,

transfer, display, transportation, sale or growing of adult-

use cannabis or cannabis products in the workplace or to

affect the ability of employers to have policies restricting

the use of adult-use cannabis and cannabis products by

employees in the workplace.

(2) The following shall apply to drug screening tests:

(i) A random drug screening test showing the mere

presence of a nonintoxicating level of cannabis may not

be the basis of the termination of employment or any

other disciplinary action against the employee.

(ii) Except as otherwise specifically provided by

law:

(A) An employer may not fail or refuse to hire a

prospective employee because the prospective employee

submitted to a drug screening test and the results of

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the drug screening test indicate the presence of

cannabis.

(B) If an employer requires an employee to

submit to a drug screening test within the first 30

days of employment, the employee shall have the right

to submit to an additional drug screening test, at

the employee's own expense, to rebut the results of

the initial drug screening test. The employer shall

accept and give appropriate consideration to the

results of the additional drug screening test.

(iii) The provisions of subparagraph (ii) shall not

apply:

(A) to the extent that the provisions are

inconsistent or otherwise in conflict with the

provisions of an employment contract or collective

bargaining agreement regarding the employee;

(B) to the extent that the provisions are

inconsistent or otherwise in conflict with Federal

law; or

by a Federal grant.

(iv) As used in this paragraph, the following words

and phrases shall have the meanings given to them in this

subparagraph unless the context clearly indicates

otherwise:

"Drug screening test." A test of an individual's

blood, urine, hair or saliva to detect the general

presence of a controlled substance or any other drug.

(b) Persons and other entities.--This part does not prohibit

a person, employer, school, hospital, detention facility,

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corporation or another entity who occupies, owns or controls a

property from prohibiting or otherwise regulating the

possession, consumption, use, display, transfer, distribution,

sale, transportation or growing of cannabis on or in the

property.

Section 3904. Cannabis clean slate.

(a) General rule.--A person who has been arrested for,

charged with or convicted under section 13(a)(30), (31), (32) or

(33) of the act of April 14, 1972 (P.L.233, No.64), known as The

Controlled Substance, Drug, Device and Cosmetic Act, shall have

the person's criminal history related to the criminal proceeding

expunged in accordance with subsection (b).

(b) Expungement process.--The following shall apply:

(1) The Administrative Office of Pennsylvania Courts

shall, within 10 days of the effective date of this

subsection, transmit to the Pennsylvania State Police central

repository all records related to an arrest or conviction

under subsection (a) for expungement.

(2) If the Pennsylvania State Police determines a record

transmitted under paragraph (1) is not eligible for

expungement, it shall notify the Administrative Office of

Pennsylvania Courts of the determination within 20 days of

receiving the information. Upon expiration of the 20-day

period, the Administrative Office of Pennsylvania Courts

shall provide to the court of common pleas in the county in

which the arrest or adjudication occurred a list of all

records eligible for expungement. Immediately upon receipt of

the list, the court of common pleas shall order the

expungement of all criminal history records received under

this section and all administrative records of the Department

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of Transportation relating to the criminal history records

received under this section.

received an expungement order for a person currently

incarcerated for the crime for which the court received the

expungement order shall transmit to the appropriate county

correctional institution or State correctional institution, as

defined under 61 Pa.C.S. § 102 (relating to definitions), an

order for the immediate release or discharge of the person whose

record has been ordered to be expunged.

(d) Motor vehicle operation privileges.--The Bureau of Motor

Vehicles shall reinstate a person's motor vehicle operation

privileges that were suspended or revoked as a result of a

person's conviction that has been expunged under this section.

(e) Reinstatement of license or registration.--A license or

registration that has been suspended or revoked under section 23

of The Controlled Substance, Drug, Device and Cosmetic Act due

to an arrest or conviction that has been expunged under this

section shall be reinstated.

Section 7. The act is amended by adding a part heading and a

chapter heading to read:

PART IV

MISCELLANEOUS PROVISIONS

CHAPTER 91

IMPLEMENTATION

Section 8. Section 2110 of the act is renumbered to read:

Section [2110] 9101. Effective date.

This act shall take effect in 30 days.

Section 9. Repeals are as follows:

(1) Section 4(1)(iii)16 and (iv) of the act of April 14,

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1972 (P.L.233, No.64), known as The Controlled Substance,

Drug, Device and Cosmetic Act, are repealed.

(2) Section 13(a)(30) and (31) of The Controlled

Substance, Drug, Device and Cosmetic Act are repealed insofar

as they are inconsistent with this act.

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

they are inconsistent with this act.

Section 10. The following apply:

(1) Within 10 days of the development of the rules and

regulations under section 3504(b) of the act, the Department

of Education shall provide notice of the development of the

rules and regulations to the Legislative Reference Bureau,

which shall publish the notice in the Pennsylvania Bulletin.

(2) Within 10 days of the development of the rules and

regulations under section 3505(b) of the act, the

Pennsylvania Housing Finance Agency shall provide notice of

the development of the rules and regulations to the

Legislative Reference Bureau, which shall publish the notice

in the Pennsylvania Bulletin.

(3) Within 10 days of the development of the rules and

regulations under section 3506(b) of the act, the Department

of Education shall provide notice of the development of the

rules and regulations to the Legislative Reference Bureau,

which shall publish the notice in the Pennsylvania Bulletin.

Section 11. This act shall take effect as follows:

(1) The following shall take effect immediately:

(i) This section.

(ii) Section 10 of this act.

(iii) The addition of sections 3501, 3503, 3504,

3505, 3506, 3507 and 3901 of the act.

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(2) The remainder of this act shall take effect in 60

days.

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