See other bills
under the
same topic
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
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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. ยง 2701 (relating to simple assault).
(ii) 18 Pa.C.S. ยง 2702 (relating to aggravated
assault).
(iii) 18 Pa.C.S. ยง 2705 (relating to recklessly
endangering another person).
(iv) 18 Pa.C.S. ยง 2706 (relating to terroristic
threats).
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(v) 18 Pa.C.S. ยง 2709 (relating to harassment).
(vi) 18 Pa.C.S. ยง 5104 (relating to resisting arrest
or other law enforcement).
(vii) 18 Pa.C.S. ยง 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. ยง
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.
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(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.
(c) Edible medical [marijuana] cannabis.--Nothing in this
[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:
* * *
(c) Practitioner requirements.--A practitioner included in
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:
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* * *
(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.
(c) Discipline.--In addition to any other penalty that may
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
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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.
(c) Consultation.--A practitioner shall review the
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
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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
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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
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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
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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
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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.
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(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
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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.
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(b) Nontransferability.--A permit issued under this chapter
shall be nontransferable.
(c) Privilege.--The issuance or renewal of a permit shall be
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
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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
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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:
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(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
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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
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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.
(c) Nonrenewal decision.--The denial or nonrenewal 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.
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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
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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.
(c) Reports.--No later than March 1, 2018, and each March 1
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
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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. ยง 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. ยง
303(b).
"Service-disabled veteran-owned small business." As defined
in 51 Pa.C.S. ยง 9601 (relating to definitions).
"Third-party certifying organization." As defined in 74
Pa.C.S. ยง 303(b).
"Veteran-owned small business." As defined in 51 Pa.C.S. ยง
9601.
"Women-owned business." As defined in 74 Pa.C.S. ยง 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
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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
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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
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[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.
(c) Access.--Information maintained in electronic tracking
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
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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.
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(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.
(c) Filing with department.--Prior to dispensing medical
[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
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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
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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.
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(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
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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.
(c) (Reserved).
(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
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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.
(c) Use of proceeds.--After any repayment made under
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.
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(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.
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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. ยง 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
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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
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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.
* * *
(c) Publication.--The department shall [begin publishing]
provide notice of the temporary regulations to the Legislative
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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
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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
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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.
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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
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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
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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.
(c) Sanctions.--
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(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
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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
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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. ยง 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. ยง
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
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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.
(c) Costs.--The cost of the medical [marijuana] cannabis
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.
(c) Research reports.--
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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.
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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
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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.
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(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
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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,
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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.
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* * *
(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.
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(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.
(c) Grading.--An individual who violates this section
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
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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. ยง 1512(b) (relating to financial and
employment interests) and "executive-level public employee"
as defined under 4 Pa.C.S. ยง 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. ยง
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:
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"Financial interest." As defined in 4 Pa.C.S. ยง 1512(b).
"Immediate family." As defined in 4 Pa.C.S. ยง 1512(b).
"Party officer." As defined in 4 Pa.C.S. ยง 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
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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.--
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(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.
(c) Custody determination.--The fact that an individual is
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
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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
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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.
(c) Notice.--An application shall include notice that a
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.
(c) Nontransferability.--A permit issued under this chapter
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.
(C) If the adult-use cannabis grower has revenue
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.
(C) If the adult-use cannabis processor has
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.
(C) If the adult-use cannabis dispensary has
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.
(C) If a person has revenue of at least
$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.
(c) Nonrenewal decision.--The denial or nonrenewal of a
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.
(c) Reports.--No later than each March 1 after the effective
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. ยง 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. ยง
303(b).
"Service-disabled veteran-owned small business." As defined
in 51 Pa.C.S. ยง 9601 (relating to definitions).
"Third-party certifying organization." As defined in 74
Pa.C.S. ยง 303(b).
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"Veteran-owned small business." As defined in 51 Pa.C.S. ยง
9601.
"Women-owned business." As defined in 74 Pa.C.S. ยง 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.
(c) Access.--Information maintained in electronic tracking
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.
(c) Taxation by municipality.--In addition to the tax
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.
(C) After-school programs that are established
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.
(c) Use of money.--
(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.
(c) Applicants.--The following individuals may apply for
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
by
(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.
(c) Purpose.--A municipality may apply for grants
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.
(c) Applications.--A school district or other entity may
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.
(c) Purpose.--An individual who is a minority or a woman may
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. ยง 101 (relating to definitions).
Section 3602. Reports by adult-use cannabis organizations.
An adult-use cannabis organization shall periodically file
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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.
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(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.
(c) Sanctions.--
(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. ยง 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. ยง 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.
(c) Grading.--An individual who violates this section
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. ยง 1512(b)
(relating to financial and employment interests) and
"executive-level public employee" as defined under 4 Pa.C.S.
ยง 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. ยง 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. ยง 1512(b).
"Immediate family." As defined in 4 Pa.C.S. ยง 1512(b).
"Party officer." As defined in 4 Pa.C.S. ยง 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
(C) to a position of employment that is funded
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.
(c) Release of inmates.--A court of common pleas that has
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. ยง 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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