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PRINTER'S NO. 2333
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2050
Session of
2021
INTRODUCED BY WHEATLEY, FRANKEL, HILL-EVANS, ZABEL, McNEILL,
N. NELSON, MALAGARI, SANCHEZ, HOHENSTEIN, BURGOS, SIMS,
HARRIS, DALEY, STURLA, GUZMAN, A. DAVIS, KINSEY, D. WILLIAMS,
FITZGERALD, GUENST, KINKEAD AND SHUSTERMAN, OCTOBER 27, 2021
REFERRED TO COMMITTEE ON JUDICIARY, OCTOBER 27, 2021
AN ACT
Providing for the regulation of cannabis and cannabis products
for personal use and for exemptions related to the personal
use of cannabis and cannabis products; establishing a
cannabis regulatory control board and providing for its
powers, duties and restrictions; conferring powers and
imposing duties on the Department of Revenue, the Department
of Agriculture, the Department of Health and the Office of
Attorney General; regulating the cultivation, processing,
distribution, testing, transporting, sale and offering for
sale of cannabis and cannabis products; providing for
licensing and permitting of cannabis entities, cannabis
microbusinesses, cannabis testing laboratories and other
persons engaged in a regulated activity, for certification or
registration of essential employees, officers, principals and
other persons and for social and economic equity;
establishing the Office of Social and Economic Equity and the
Cannabis Business Development Fund; providing for diverse
business development and a grant and loan program;
establishing the Cannabis Revenue Fund; providing for
Communities Reimagined and Reinvestment Program, for
Community Reimagined and Reinvestment Account and for
Substance Abuse Prevention, Treatment and Education Fund;
imposing fees, taxes and assessments on cannabis entity
licensees, permittees and persons engaged in a regulated
activity; and providing for enforcement, for prohibited acts,
for penalties, for sanctions and immunities, for certain
expungements, for transfer of functions of the Department of
Health and for medical marijuana.
TABLE OF CONTENTS
Chapter 1. Preliminary Provisions
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Section 101. Short title.
Section 102. Legislative findings and intent.
Section 103. Definitions.
Chapter 2. Exemptions Related to Personal Use of Cannabis and
Cannabis Products
Section 201. Personal use of cannabis and cannabis products
and exemptions.
Chapter 3. Cannabis Regulatory Control Board
Section 301. Cannabis Regulatory Control Board established.
Section 302. Qualifications and restrictions.
Section 303. Code of conduct.
Section 304. Powers and duties of board.
Section 305. Regulatory authority of board.
Section 306. Additional regulatory authority.
Section 307. Temporary regulations.
Section 308. Cannabis entity application appeals from board.
Section 309. Hearing process.
Section 310. Board minutes and records.
Section 311. Selection criteria.
Section 312. Collection of fees and fines.
Section 313. Cannabis entity license fees.
Chapter 4. Social and Economic Equity
Section 401. Office of Social and Economic Equity.
Section 402. Cannabis Business Development Fund.
Section 403. Social and Economic Equity Loan and Grant Program.
Section 404. Fee waivers.
Section 405. Transfer of cannabis entity license.
Section 406. Required reports.
Chapter 5. Regulation of Cannabis
Section 501. Regulation of cannabis.
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Section 502. Order of initial issuance of cannabis entity
licenses.
Section 503. Expedited approval of cannabis entity license.
Section 504. Authorization for secondary site.
Section 505. Cannabis entity license application.
Section 506. Application requirements.
Section 507. Additional license requirements.
Section 508. Change in ownership or control of cannabis entity
licensee.
Section 509. Licensing of principals.
Section 510. Registration of essential employees.
Section 511. Divestiture of disqualifying person.
Section 512. Financial fitness requirements.
Section 513. Alternative licensing standards.
Section 514. Bond for issuance of cannabis entity license.
Section 515. Required content of license, permit or other
authorization.
Section 516. Renewals.
Section 517. Home cultivation.
Chapter 6. License, Permit or Other Authorization
Section 601. Additional requirements for issuance.
Section 602. Conditional cannabis entity license.
Section 603. Licensure of cannabis microbusinesses.
Section 604. Cannabis cultivator license.
Section 605. Cannabis cultivator grow canopy.
Section 606. Cannabis processor license.
Section 607. Cannabis retailer license.
Section 608. Inventory verification system; cannabis retailer
licensee.
Section 609. Storage requirements.
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Section 610. Cannabis transporter license.
Section 611. Cannabis handler certificate.
Section 612. Cannabis responsible training required.
Section 613. Provisions governing cultivation and processing of
cannabis and cannabis products.
Section 614. Provisions governing cannabis retailer licensees.
Section 615. Provisions governing cannabis transporter
licensees.
Section 616. Need for additional licenses.
Chapter 7. Packaging, Labeling, Testing and Special Use Permits
Section 701. Packaging and labeling.
Section 702. Laboratory testing.
Section 703. Cannabis laboratory testing permit.
Section 704. Special use permits.
Chapter 8. Recordkeeping, Tracking, Inspection and Advertising
Section 801. Recordkeeping and tracking.
Section 802. Inspections.
Section 803. Advertising.
Chapter 9. Administration and Enforcement
Section 901. Authority and duties of department and Department
of Agriculture.
Section 902. Liens and suits for taxes.
Section 903. No eminent domain authority.
Section 904. Cannabis establishment zoning and land-use
appeals.
Section 905. Labor hiring preferences.
Section 906. Financial and employment interests.
Section 907. Additional restrictions.
Section 908. Investigation and enforcement.
Section 909. Additional authority and Office of Enforcement
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Counsel.
Section 910. Prohibited acts and penalties.
Section 911. Administrative sanctions.
Section 912. General immunities and presumptions.
Section 913. Adoption of State standards and requirements.
Chapter 10. Fees and Taxes
Section 1001. Cannabis cultivator and processor privilege tax.
Section 1002. Cannabis excise tax.
Section 1003. Registration required.
Section 1004. Unlawful disclosure and penalty.
Section 1005. Violation of tax requirements and administrative
penalty.
Chapter 11. Revenue
Section 1101. Cannabis Revenue Fund.
Section 1102. Communities Reimagined and Reinvestment
Restricted Account.
Section 1103. Substance Use Disorder Prevention, Treatment and
Education Account.
Section 1104. Small business recovery grants.
Chapter 12. Municipalities
Section 1201. Provisions specific to municipalities.
Section 1202. Local opt-out and municipal control and
preemption.
Section 1203. Preemptions.
Section 1204. Local cannabis taxation.
Chapter 13. Protections
Section 1301. Protections for personal use of cannabis.
Section 1302. Lawful actions.
Section 1303. Access to criminal history information through
Pennsylvania State Police.
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Section 1304. Cannabis clean slate.
Chapter 20. Miscellaneous Provisions
Section 2001. Transfer of powers and duties.
Section 2002. Repeals.
Section 2003. Effective date.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
CHAPTER 1
PRELIMINARY PROVISIONS
Section 101. Short title.
This act shall be known and may be cited as the Cannabis
Regulatory Control Act.
Section 102. Legislative findings and intent.
(a) Findings.--The General Assembly finds and declares as
follows:
(1) The criminalization of marijuana has not been
effective in reducing arrests, prosecutions and convictions
for simple marijuana offenses but has, instead, resulted in
collateral social and economic damage, including mass
incarcerations, which serves to inhibit the ability of some
otherwise law-abiding citizens of this Commonwealth to access
employment, housing, business ownership, traditional banking
systems and capital, quality health care and other vital
services and, juxtaposed with the "war on drugs," has
disproportionately impacted the long-term social and economic
well-being of communities and people of color.
(2) The criminalization of marijuana served as one, if
not the primary, catalyst that triggered the growth of the
illicit marijuana market, which continues to flourish,
threaten public health and safety and obstruct legislative
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and societal efforts to deter possession and use by children.
(3) The implementation of the Commonwealth's Medical
Marijuana Program reveals that additional efforts are needed
to manage barriers to participation in this Commonwealth's
regulated cannabis industry. As of May 15, 2020, 22 marijuana
grower/processor permits and 80 marijuana dispensary permits
had been issued by the Department of Health authorizing the
holders to grow, process or sell medical marijuana. In
transitioning to a regulated cannabis industry for adult
cannabis consumers, the General Assembly seeks to ensure that
opportunities for entrepreneurship and jobs exist so that
businesses and individuals within the cannabis industry
reflect the diverse population of this Commonwealth. In the
interest of inclusion and equity, a regulated cannabis
industry should be equitable and accessible to individuals
and communities adversely impacted by enforcement of
marijuana laws in this Commonwealth.
(4) The regulation of personal use cannabis authorized
under this act is intended to provide broad economic
opportunities to the residents of this Commonwealth and shall
be implemented in a manner as to prevent possible
monopolization by establishing reasonable restrictions on the
control of multiple cannabis entity licenses in this
Commonwealth.
(5) Participation in the commercial cannabis industry
under this act by a licensee, permittee or other person
authorized to engage in a regulated activity shall be deemed
a privilege, conditioned upon the proper and continued
qualification of the licensee, permittee or other person and
upon the discharge of the affirmative responsibility of each
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licensee, permittee or other person to provide the regulatory
and investigatory authorities of the Commonwealth with
assistance and information necessary to assure that the
policies declared by this act are achieved.
(6) Strictly monitored and enforced control over all
aspects of the regulation of cannabis authorized under this
act shall be provided through regulation, licensing and
appropriate enforcement actions of specified locations,
persons, associations, practices, activities, licensees,
permittees and other persons authorized to engage in a
regulated activity as under this act.
(7) The public interest of the residents of this
Commonwealth and the social effects of the personal use of
cannabis shall be taken into consideration in any decision or
order made by the Cannabis Regulatory Control Board under
this act.
(8) The Commonwealth has a compelling State interest in
protecting the integrity of a regulated cannabis industry by
preventing corruption and the appearance of corruption, which
may arise from the regulation of cannabis for personal use in
this Commonwealth.
(9) It is therefore necessary to maintain the integrity
of the regulatory control and legislative oversight over the
operation of a regulated cannabis industry, to ensure the
bipartisan administration of this act and avoid actions which
may erode public confidence in the regulatory and legislative
process and, thereby, the system of representative
government.
(10) In the interest of allowing law enforcement to
focus on violent and property crimes, generating revenue for
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social justice programs, small businesses, substance use
disorder prevention and treatment, freeing public resources
to invest in communities and other public purposes and
individual freedom, the General Assembly further finds and
declares that the personal use of cannabis should be legal
for individuals 21 years of age or older and should be taxed
in a manner designed to enhance the conditions of daily
living for marginalized individuals in this Commonwealth
while, simultaneously, effectuating tax revenues for the
Commonwealth and the Commonwealth's political subdivisions.
(b) Objectives.--The General Assembly declares that
paramount among the objectives of this act, to which all other
objectives and purposes are secondary, is to keep marijuana out
of the hands of children and to keep profits out of the hands of
criminals, including organized criminal enterprises. Other
principal objectives of this act are to:
(1) Reduce the burden on law enforcement and the
criminal justice system associated with simple marijuana
possession offenses.
(2) Prevent children from entering the criminal justice
system due to convictions for simple marijuana offenses.
(3) Protect public health and safety by strengthening,
where appropriate, laws and enforcement measures which deter
and punish more serious marijuana offenses, specifically,
trafficking controlled substances to children, selling
outside of the regulatory framework authorized under this act
and operating a motor vehicle while under the influence of
marijuana.
(4) Ensure that the residents of this Commonwealth are
well-informed through sustained and appropriate public health
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campaigns and ensure that the risks are understood,
especially for children.
(5) Establish and enforce a strict system of
cultivation, processing, distribution, testing and sales of
cannabis and cannabis products, emphasizing public health and
safety, with regulation of quality and safety.
(6) Promote ownership and participation by individuals
who reside or have resided in areas of high poverty, high
unemployment and high enforcement of cannabis-related laws to
foster the development and growth of an equitable cannabis
industry in this Commonwealth.
(7) Ensure that the provisions of this act are not
construed to diminish the Commonwealth's obligation and
commitment to individuals suffering from serious medical
conditions as provided under the Medical Marijuana Act, nor
alter the privileges and protections granted to individuals
suffering from serious medical conditions as provided under
the Medical Marijuana Act.
(c) Intent.--The following apply:
(1) The General Assembly finds and declares that the
intent of this act is to:
(i) Create a new industry in this Commonwealth
through the regulation, control and taxation of cannabis
for personal use by adults 21 years of age or older,
thereby:
(A) Generating significant new tax revenue.
(B) Requiring certain entities to make
substantial financial investments in people and
communities traditionally and adversely impacted by
the criminalization of marijuana to help address the
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social and economic consequences of marijuana
criminalization.
(C) Preventing access to cannabis by children.
(D) Eliminating or reducing illicit cannabis
markets.
(E) Ending the racially disparate impact of
existing cannabis laws.
(ii) Regulate the personal use of cannabis and
medical marijuana under the regulatory supervision of an
independent board, to be known as the Cannabis Regulatory
Control Board, in order to facilitate the prompt
implementation of this act.
(2) The regulation of cannabis, as authorized under this
act, is intended to:
(i) Promote economic development by providing new
business and employment opportunities across this
Commonwealth, including opportunities for diverse
businesses and small disadvantaged businesses, veteran-
owned and disabled-veteran-owned small businesses,
farmers and farmer-owned small businesses and other
persons involved in this Commonwealth's agriculture
industry.
(ii) Provide business ownership and employment
opportunities for individuals who have been adversely
impacted by the enforcement of marijuana laws.
(iii) Provide funding mechanisms for the Communities
Reimagined and Reinvestment Restricted Account programs,
small businesses and drug and alcohol programs.
(3) In the interest of remedying the harms resulting
from the disproportionate enforcement of cannabis-related
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laws, the General Assembly further finds and declares that a
social and economic equity program is an essential component
of a regulated cannabis industry and should be designed to
offer, among other things, financial assistance and license
application benefits to individuals who have traditionally
and directly been adversely impacted by the criminalization
of cannabis and who are interested in participating in a
regulated activity under this act.
(4) Nothing in this act is intended to limit the
authority of any municipality or employer to:
(i) Enact and enforce policies pertaining to
cannabis in the workplace.
(ii) Authorize driving while under the influence of
cannabis.
(iii) Allow an individual to engage in conduct which
would endanger another individual.
(iv) Authorize the smoking or vaping of cannabis in
a public place or location where smoking tobacco is
prohibited.
(v) Require an individual to engage in conduct which
violates Federal law, exempt any individual from any
requirements of Federal law or pose any obstacle to the
Federal enforcement of Federal law.
Section 103. 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:
"Advertise." To engage in promotional activities, including,
but not limited to, newspaper, radio, Internet and electronic
media and television advertising, the distribution of fliers and
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circulars and the display of window and interior signs.
"Affiliate" or "affiliated." A person that, directly or
indirectly, through one or more intermediaries, controls, is
controlled by or is under common control with a specified
person, including a person that is an affiliate of or a person
that is affiliated with a specified person.
"Applicant." The following apply:
(1) An individual who is a citizen of the United States
or an individual lawfully admitted for permanent residency in
the United States, who is 21 years of age or older and who is
applying for a license, permit or other authorization to
engage in a regulated activity under this act.
(2) In the case of an applicant that is a person other
than an individual, the affiliated persons whose
qualifications may be subject to review and approval by the
board as a precondition to authorizing the person to engage
in a regulated activity.
"Authority." An authority created by the Commonwealth to
purchase State cannabis receipts under section 304.
"Background investigation." A security, criminal, financial,
credit and suitability investigation of an applicant. The term
shall include an investigation into the status of taxes owed to
the United States, the Commonwealth and any political
subdivision of the Commonwealth.
"Batch number." The unique, sequential alphanumeric
identifier assigned to each batch of cannabis or cannabis
products, including each cultivation and production batch, by a
cannabis entity licensee for the purposes of production
tracking, product labeling and product recalls.
"Board." The Cannabis Regulatory Control Board established
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under section 301.
"Bureau." The Bureau of Cannabis Investigations and
Enforcement established under section 908.
"Cannabinoid." Any of several compounds produced by cannabis
plants that have medical and psychotropic effects.
"Cannabinoid profile." The amounts, expressed as the dry-
weight percentages, of delta-nine-tetrahydrocannabinol,
cannabidiol, tetrahydrocannabinolic acid and cannabidiolic acid
of cannabis or cannabis products.
"Cannabis." The term:
(1) Includes marijuana, hashish and other substances
that include any parts of the plant cannabis sativa and
derivatives or subspecies, including cannabis indica, of all
strains of cannabis, including growing the seeds, extracting
the resin from any part of the plant and producing any
compound, manufacture, salt, derivative, mixture or
preparation of the plant, seeds or resin, including THC, with
a THC concentration greater than 0.3% on a dry weight basis,
and all other naturally produced cannabinol derivatives,
whether produced directly or indirectly by extraction and any
concentrate or cannabis product. The term shall include
industrial hemp cultivated in this Commonwealth.
(2) Does not include:
(i) The mature stalks of the plant, fiber produced
from the stalks, oil or cake made from the seeds of the
plant and any other compound, manufacture, salt,
derivative, mixture or preparation of the mature stalks,
except the resin extracted from mature stalks, fiber, oil
or cake or the sterilized seed of the plant which is
incapable of germination.
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(ii) The weight of any other ingredient combined
with cannabis to prepare topical or oral administrations,
food, drink or other products.
(iii) Medical marijuana dispensed to a certified
patient or caregiver as those terms are defined in
section 103 of the Medical Marijuana Act.
(iv) Marijuana as defined in section 2 of the act of
April 14, 1972 (P.L.233, No.64), known as The Controlled
Substance, Drug, Device and Cosmetic Act, or hashish as
applied to a criminal offense related to marijuana or
hashish under section 13 of The Controlled Substance,
Drug, Device and Cosmetic Act.
(v) Marijuana or hashish as applied to any criminal
offense or civil violation specified in the applicable
provisions of 18 Pa.C.S. (relating to crimes and
offenses).
"Cannabis concentrate." A product, including a cannabis
extract or resin, derived from cannabis that is produced by
using a solvent or nonsolvent product to extract cannabinoids,
including THC, from the cannabis plant by the following means:
(1) the use of propylene glycol, glycerin, butter, olive
oil or other typical cooking fats, water, ice or dry ice;
(2) a chemical extraction process using a hydrocarbon-
based solvent, including butane, hexane or propane;
(3) a chemical extraction process using the hydrocarbon-
based solvent carbon dioxide if the process uses high heat or
pressure;
(4) a chemical extraction process using ethanol or
isopropanol;
(5) mechanical separation; or
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(6) any other process identified and approved by the
board by regulation. The use of any other solvent shall be
expressly prohibited unless and until the solvent or
nonsolvent product is approved for use by regulation of the
board.
"Cannabis consumer." An individual 21 years of age or older
who purchases, acquires, owns, holds or uses cannabis or
cannabis products for personal consumption.
"Cannabis cultivator" or "cannabis cultivator licensee." A
person, including a cannabis microbusiness, licensed by the
board to grow, produce or otherwise cultivate cannabis in this
Commonwealth and to sell cannabis to other cannabis cultivators,
cannabis processors, cannabis microbusinesses or cannabis
retailers, but not to cannabis consumers.
"Cannabis entity" or "cannabis entity licensee." The term
includes:
(1) A cannabis cultivator.
(2) A cannabis processor.
(3) A cannabis microbusiness.
(4) A cannabis retailer.
(5) A cannabis transporter.
"Cannabis entity representative." The term includes an
owner, director, officer, manager, essential employee, agent or
other representative of a cannabis entity licensee, to the
extent that the individual acts in a representative capacity.
"Cannabis establishment." The physical location specified in
an application for a cannabis entity license which is owned or
in possession of the applicant or cannabis entity licensee and
within which the applicant or licensee is seeking or has been
granted authorization to cultivate, process, manufacture,
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distribute, store, transport, sell or offer for sale cannabis or
cannabis products as provided under this act and regulations of
the board. The term includes all public and private enclosed
areas of the cannabis establishment, offices, kitchens,
restrooms, storage rooms and all enclosed, locked facilities or
areas outside the cannabis establishment which the board has
specifically approved for the cultivation, processing, storage,
transportation, sale or offering for sale of cannabis or
cannabis products. For a location that the board has
specifically licensed for the cultivation of cannabis outside a
building, the term shall include the entire lot or parcel that
the cannabis cultivator owns, leases or has a right to occupy.
The term includes a secondary site under section 504.
"Cannabis extract." A material, preparation, mixture,
compound or other substance that contains more than 3% by weight
of delta-9 tetrahydrocannabinol or any of its isomer, delta-8
dibenzopyran numbering system or delta-1 tetrahydrocannabinol or
its isomer, delta 1 (6) monoterpene numbering system, including
cannabis concentrates or resins, whether crude or purified,
produced from cannabis.
"Cannabis flower." The flower of the plant genus Cannabis
that has been harvested, dried and cured prior to processing
whereby the plant material is transformed into a concentrate,
including, but not limited to, concentrated cannabis, or an
edible or topical product containing cannabis or concentrated
cannabis and other ingredients. The term does not include leaves
or stems.
"Cannabis handler." A person employed by a cannabis entity
licensee who is not an essential employee but who is required to
obtain a cannabis handler certificate from the board to
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participate in the activities of employment specified in section
611.
"Cannabis handler certificate." A certificate issued by the
board under section 611.
"Cannabis leaves" or "cannabis trim." All parts of the plant
of the genus Cannabis other than cannabis flower that have been
harvested, dried and cured prior to further processing.
"Cannabis microbusiness" or "cannabis microbusiness
licensee." A person licensed by the board to cultivate, dry,
cure, process or package cannabis or cannabis products or to
sell or offer for sale cannabis or cannabis products to cannabis
consumers and perform other necessary activities as provided
under this act and regulations of the board to make cannabis and
cannabis products available for sale by a cannabis retailer
licensee or another cannabis microbusiness licensee or for use
by a cannabis processor licensee.
"Cannabis paraphernalia." Notwithstanding section 2 of The
Controlled Substance, Drug, Device and Cosmetic Act, the term
shall include any device, equipment, products or materials of
any kind which are used, intended for use or designed for use in
planting, propagating, cultivating, growing, harvesting,
composting, compounding, converting, producing, processing,
preparing, testing, analyzing, packaging, repackaging, storing,
vaporizing, or containing cannabis, or for ingesting, inhaling
or otherwise introducing cannabis or a cannabis product into the
human body. The term shall not be construed to mean or include
"drug paraphernalia" as defined in section 2 of The Controlled
Substance, Drug, Device or Cosmetic Act, which is used or
intended for use to commit a violation of The Controlled
Substance, Drug, Device and Cosmetic Act or of any applicable
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provision of 18 Pa.C.S. (relating to crimes and offenses).
"Cannabis plant." A plant that is not an immature cannabis
plant.
"Cannabis plant canopy." The area of a cannabis
establishment operated by a cannabis cultivator licensee that is
dedicated to live cannabis plant cultivation, including
maintaining mature cannabis plants, propagating cannabis plants
from seed to plant tissue or cloning and maintaining a
vegetative or flowering area or the bench area or space used to
cultivate cannabis in the flowering stage. The term does not
include areas of a licensed cannabis establishment used for
storage of fertilizers, pesticides, herbicides or other
products, tools or equipment used in the cultivation of
cannabis, quarantine areas, office space, walkways, work areas
or similar areas.
"Cannabis plant monitoring system" or "plant monitoring
system." An electronic data collection system maintained by a
licensed cannabis cultivator, cannabis processor and cannabis
microbusiness engaged in the cultivation or processing of
cannabis and cannabis products for the purposes of documenting
each cannabis plant and monitoring plant development throughout
the life cycle of a cannabis plant cultivated for the intended
use by cannabis consumers, from seed planting or cloning to
final packaging, and to document testing. The cannabis plant
monitoring system shall be available to the board, the
department, the Department of Agriculture and the Pennsylvania
State Police.
"Cannabis processor" or "cannabis processor licensee." A
person, including a cannabis microbusiness licensee, licensed by
the board to extract constituent chemicals or compounds from
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cannabis to produce cannabis concentrate or to incorporate
cannabis or cannabis concentrate into a product formulation to
produce a cannabis product.
"Cannabis product" or "cannabis infused product." A product
that has been processed and contains cannabis or a cannabis
concentrate, including concentrated forms of cannabis and
products composed of cannabis and other ingredients that are
intended for human consumption or use, including edible
products, beverages, topical products, ointments, oils and
tinctures.
"Cannabis resin." A cannabis concentrate extracted from a
cannabis plant and any compound, manufacture, salt, derivative,
mixture or preparation of resin processed and used as provided
under this act. The term shall not include hashish as applied to
any offense under The Controlled Substance, Drug, Device and
Cosmetic Act or a civil violation described under 18 Pa.C.S.
"Cannabis retail store." The cannabis establishment of a
cannabis retailer licensee approved by the board for the sale
and offering for sale of cannabis and cannabis products to
cannabis consumers.
"Cannabis retailer" or "cannabis retailer licensee." A
person, including a cannabis microbusiness, licensed by the
board to purchase cannabis or cannabis products from a cannabis
cultivator or cannabis processor and sell the cannabis or
cannabis product to cannabis consumers from a cannabis retail
store.
"Cannabis testing laboratory" or "laboratory." An
independent, third-party entity issued a permit by the board to
conduct sampling and analyses of cannabis and cannabis products,
including the employees, specialized apparatus, equipment and
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instruments necessary to analyze cannabis and cannabis products
to ensure compliance with this act, regulations of the board and
applicable health and safety standards established by the board.
"Cannabis transporter." A person licensed by the board to
possess cannabis and cannabis products for the sole purpose of
transporting, temporary storage and distribution of cannabis,
cannabis products and cannabis paraphernalia, to cannabis
entities, but not to cannabis consumers. The term shall include
a person licensed as a cannabis cultivator, cannabis processor,
cannabis retailer or cannabis microbusiness.
"Clone." A clipping from a cannabis plant that can be rooted
and grown.
"Commonwealth agency." A department, board, commission or
any other agency or office of the Commonwealth under the
jurisdiction of the Governor.
"Conditional license." A license issued by the board under
section 602.
"Consumption." The act of ingesting, inhaling or otherwise
introducing cannabis or a cannabis product into the human body.
"Cultivation." The growing, cloning, harvesting, drying,
curing, grading and trimming of cannabis plants for sale to
cannabis cultivators, cannabis processors, cannabis
microbusinesses or cannabis retailers.
"Cultivation batch." A collection of cannabis or cannabis
plants from the same seed or plant stock that are cultivated and
harvested together and receive an identical propagation and
cultivation treatment, including, but not limited to, growing
media, ambient conditions, watering and light regimes and
agricultural or hydroponic inputs. Clones that come from the
same plant are one batch.
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"Department." The Department of Revenue of the Commonwealth.
"Designated opportunity zone" or "opportunity zone." A
census tract or comparable geographic area in existence on or
before the effective date of this act that:
(1) Meets at least one of the following criteria:
(i) the area has a poverty rate of at least 20%
according to the latest Federal decennial census;
(ii) 75% or more of the children in the area
participate in the Federal free lunch program according
to statistics reported by the Department of Education;
(iii) at least 20% of the households in the area
receive assistance under the Supplemental Nutrition
Assistance Program; or
(iv) the area has an average unemployment rate, as
determined by the Department of Labor and Industry, that
is more than 120% of the national unemployment average,
as calculated by the United States Department of Labor,
for a period of at least two consecutive calendar years
preceding the date of the application.
(2) Has high rates of arrest, conviction and
incarceration related to the sale, possession, use,
cultivation, delivery or transport of cannabis.
"Disadvantaged farmer-owned small business." A small
business as defined in 62 Pa.C.S. § 2102 (relating to
definitions), as approved by the board in consultation with the
Department of Agriculture, that:
(1) Is a farm engaged in agricultural production,
including the cultivation of crops or horticulture products,
the production of food and fiber or the raising of livestock
or aquaculture and has been in operation for no less than two
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seasons in the past five years and the owner of which has
been a resident of this Commonwealth for at least two years.
(2) Is any other small business which is an agricultural
enterprise actively engaged in agricultural production for no
less than two seasons in the past five years and the owner of
which has been a resident of this Commonwealth for at least
two years.
"Dispensary." As defined in section 103 of the Medical
Marijuana Act.
"Electronic cannabis smoking device." An electronic device
that delivers a cannabis or a cannabis product through
vaporization and inhalation. The term shall not include a device
designed to inhale nicotine or an "electronic cigarette" as
defined in 18 Pa.C.S. § 6305(k) (relating to sale of tobacco
products).
"Electronically" or "electronic notification." A notification
sent by the board to an applicant, cannabis entity licensee, an
employee or agent of an applicant or cannabis entity licensee or
other person or which is sent by an applicant, cannabis entity
licensee, an employee or agent of an applicant or cannabis
entity licensee or other person to the board which is:
(1) Transmitted by email, facsimile, text message or by
any other similar electronic means of communications approved
by the board.
(2) Transmitted to the email address or telephone number
at or through which the board, applicant or cannabis entity
licensee has authorized the receipt of electronic
notifications.
(3) Provides evidence of transmission and receipt.
"Enclosed, locked facility or area." A room, greenhouse,
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building, or other enclosed area used to cultivate, process,
store or distribute cannabis and cannabis products, which is
equipped with locks or other security devices and which is
accessible only by the board, the bureau, the department, the
Department of Agriculture or designated employees of the board,
the bureau, the department and the Department of Agriculture and
by agents and employees of a cannabis entity licensee or other
authorized persons acting as provided under this act.
"Essential employee." The term includes, but may not be
limited to, an individual employed by a cannabis entity
licensee, permittee or other person authorized to engage in a
regulated activity under this act, as determined by the board to
be an officer, director, manager or supervisor or an individual
otherwise empowered to make discretionary decisions related to
the operations and conduct of a cannabis establishment and whose
duties are essential to the effective and continual operation of
a cannabis establishment as provided under this act and
regulations of the board.
"Ex parte communication." An off-the-record communication
engaged in or received by a member or hearing officer of the
board regarding the merits of or any fact in issue relating to a
pending matter before the board or hearing officer or which may
reasonably be expected to come before the board or hearing
officer in a contested on-the-record proceeding. The term does
not include off-the-record communications by or between a member
or hearing officer of the board, the Department of Revenue, the
Office of Attorney General or other law enforcement official
prior to the beginning of the proceeding solely for the purpose
of seeking clarification or correction to evidentiary materials
intended for use in the proceedings or communications between
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the board or a member of the board and the office of chief
counsel.
"Expedited approval cannabis entity license." A cannabis
entity license issued by the board under section 503 which
permits a medical marijuana organization that holds a valid
dispensary permit or grower/processor permit as provided under
the Medical Marijuana Act on the effective date of this section
to begin cultivating, processing, packaging, distributing,
transporting, selling or offering for sale cannabis and cannabis
products to cannabis entity licensees upon approval of the
application by the Cannabis Regulatory Control Board.
"Expedited approval cannabis entity license at a secondary
site." A cannabis entity license issued by the board under
section 504 which permits a medical marijuana organization that
holds a valid permit as provided under the Medical Marijuana Act
on the effective date of this section to begin cultivating,
processing, packaging, distributing, transporting, selling or
offering for sale cannabis and cannabis products to cannabis
entity licensees or, in the case of a dispensary, to begin
selling or offering for sale cannabis and cannabis products to
cannabis consumers at a location or site that is different from
the physical location of the medical marijuana organization's
existing medical marijuana dispensary facility location under
section 504.
"Grower/processor." As defined in section 103 of the Medical
Marijuana Act.
"Hashish." The resin extracted from any part of the plant
Genus Cannabis L. and any compound, manufacture, salt,
derivative, mixture or preparation of the resin.
"Hemp." The plant of the genus Cannabis or any part of the
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plant, whether growing or not, with a delta-9-
tetrahydrocannabinol concentration that does not exceed 0.3% on
a dry weight basis or any part of the plant, or per volume or
weight of cannabis product, or the combined percent of delta-9-
tetrahydrocannabinol and tetrahydrocannabinolic acid in any part
of the plant, regardless of moisture content.
"Home cultivation." The cultivation and processing of
cannabis or cannabis products by an individual who holds a valid
home cultivation certificate and a valid identification card
issued to the individual under section 501 of the Medical
Marijuana Act.
"Home cultivation certificate." A certificate issued to an
individual to cultivate and process cannabis or a cannabis
product under section 517.
"Immature cannabis plant." A cannabis plant that is not in
the cannabis flower stage.
"Label." A display of written, printed or graphic matter
affixed to or appearing upon the immediate package or container
holding cannabis or a cannabis product.
"Labeling." All labels and other written, printed or graphic
matter:
(1) That is affixed to or appears upon cannabis or
cannabis products or on any packages, containers or wrappings
of cannabis or cannabis products.
(2) Accompanies cannabis or cannabis products in
commerce, such as packaging, product inserts and other
promotional materials.
"License." A written authorization issued by the board
permitting a person to engage in a specific regulated activity
authorized under this act. The term includes a conditional
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license.
"Licensed representative." The term includes an owner,
director, officer, manager, employee, agent or other
representative of a cannabis entity licensee, to the extent that
the person acts in a representative capacity.
"Licensee." A holder of a cannabis entity license under this
act, including a holder of an expedited approval cannabis entity
license and a holder of an expedited approval cannabis entity
license at a secondary site.
"Limited access area." An indoor or outdoor area on the
premises of a cannabis establishment where cannabis and cannabis
products or byproducts are cultivated, stored, weighed,
packaged, processed or disposed of under the control of the
cannabis entity licensee, with access limited only to employees
or other persons designated by the cannabis entity licensee or
employees of a cannabis testing laboratory or other persons as
designated by the holder of a cannabis entity license or a
testing laboratory permit.
"Local government entity." A municipality.
"Lot." A definite quantity of cannabis or a cannabis product
identified by a lot number, every portion or package of which is
uniform within recognized tolerances for the factors that appear
in the labeling.
"Lot number." The number issued by the board that identifies
the cannabis entity licensee by business or trade name and which
includes the date of harvest or processing for each lot of
cannabis or cannabis product.
"Medical Marijuana Act." The act of April 17, 2016 (P.L.84,
No.16), known as the Medical Marijuana Act.
"Medical marijuana facility location." The physical address
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where a medical marijuana organization that holds a permit under
the Medical Marijuana Act is located.
"Medical marijuana organization." As defined in section 103
of the Medical Marijuana Act.
"Member of an impacted family." An individual who has a
parent, legal guardian, child, spouse or dependent, or was a
dependent of an individual who, on, before or after the
effective date of this section, was arrested for, convicted of
or adjudicated delinquent for any offense that is eligible for
expungement as provided under this act.
"Municipality." A county, city, borough, incorporated town
or township.
"Mycotoxin." A secondary metabolite of a microfungus that is
capable of causing death or illness in humans and other animals.
For purposes of section 702(a)(1)(i), the term shall include
aflatoxin B1, aflatoxin B2, aflatoxin G1, aflatoxin G2 and
ochratoxin A.
"Office." The Office of Social and Economic Equity
established in section 401.
"Opportunity zone." A designated opportunity zone.
"Package" or "container." A container, receptacle or
wrapping in which cannabis or cannabis products are enclosed for
delivery to a cannabis entity licensee or display to cannabis
consumers. The term shall not include:
(1) Shipping containers or wrappings for the
transportation of cannabis in bulk or quantity by a cannabis
cultivator to cannabis processors.
(2) Containers used for tray pack displays in cannabis
establishments.
(3) Transparent containers or wrappings which do not
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bear written, printed or graphic matter which obscures
information required to be displayed on the label.
"Permit." A written authorization issued by the board as
provided under this act.
"Permittee." A person that holds a permit to engage in a
regulated activity under this act.
"Person." A natural person, corporation, foundation,
organization, business trust, estate, limited liability company,
partnership, limited liability partnership, association or any
other form of legal business entity.
"Personal use." The acquisition and possession of cannabis
or a cannabis product by a cannabis consumer for use by the
cannabis consumer making the purchase if there is no evidence of
an intent to resell, distribute or transfer or to facilitate the
resale, distribution or transfer of the cannabis or cannabis
product.
"Pesticide." The following apply:
(1) A substance or mixture of substances intended for
preventing, destroying, repelling or mitigating any pest, and
a substance or mixture of substances intended for use as a
plant regulator, defoliant or desiccant.
(2) The term shall not include any substance that is a
"new animal drug" under section 201(v) of the Federal Food,
Drug and Cosmetic Act (52 Stat. 1040, 21 U.S.C. § 301 et
seq.), or that has been determined by the Secretary of the
United States Department of Health and Human Services not to
be a new animal drug by a regulation establishing conditions
of use.
(3) The term shall not include "animal feed" under
section 201(w) of Federal Food, Drug and Cosmetic Act.
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"Principal." The term includes:
(1) An officer, director or other person directly
holding a beneficial interest in or ownership of 5% or less
of the securities of an applicant or licensee.
(2) A significantly involved person that has a
controlling interest in an applicant or licensee or has the
ability to elect a majority of the board of directors of an
applicant or licensee or to otherwise control the licensee.
(3) A lender or other licensed financial institution of
an applicant or licensee, other than a bank or lending
institution, which makes a loan or holds a mortgage or other
lien acquired in the ordinary course of business.
(4) An underwriter of an applicant or licensee.
(5) Another person or employee of an applicant or
licensee deemed to be a principal by the board.
"Process." The processing, compounding or conversion of
cannabis, cannabis products or cannabis extracts. The term does
not include the packaging or labeling of cannabis or cannabis
products.
"Production batch." A batch of finished plant material,
cannabis resin, cannabis concentrate or cannabis product made at
the same time using the same methods, equipment and ingredients,
which is traceable to one or more cannabis cultivation batches.
"Program." The Social and Economic Equity Loan and Grant
Program established under section 403.
"Propagation." The reproduction of cannabis plants by seeds,
cuttings, cloning or grafting.
"Public place." A place to which the public has access that
is not privately owned or a place to which the public has access
where alcohol consumption is not allowed, including, but not
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limited to, a public street, road, thoroughfare, sidewalk,
bridge, alley, plaza, park, playground, swimming pool, shopping
area, public transportation facility, vehicle used for public
transportation, parking lot, public library or any other public
building, structure or area.
"Qualified social and economic equity applicant." A social
and economic equity applicant that has been approved for and
issued a cannabis entity license, permit or other authorization
to engage in a regulated activity under this act.
"Regulated activity." An activity conducted or proposed to
be conducted under this act related to the cultivation,
processing, distribution, delivery, handling, testing,
transportation, sale or offering for sale of cannabis or
cannabis products, as determined by the board, for which a
person would be required to secure regulatory approval through
the issuance of a license, permit, registration, certification
or other authorization from the board as provided under this act
and regulations of the board.
"Restricted access area." A designated and secure area
within a cannabis entity licensee's cannabis establishment where
cannabis or cannabis products are cultivated, processed, stored,
sold or offered for sale and where no cannabis consumer or other
person, except as otherwise provided in this act, is permitted,
unless the individual is a designated employee of the cannabis
entity licensee.
"Sample." The term includes:
(1) An amount of cannabis or a cannabis product provided
to a cannabis testing laboratory by a cannabis cultivator
licensee, cannabis processor licensee or other person for
testing purposes as provided under this act and regulations
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of the board.
(2) An amount of cannabis or a cannabis product
collected from a cannabis cultivator licensee, cannabis
processor licensee or cannabis microbusiness licensee by the
board or the Department of Agriculture or a designated
employee or agent of the board or the Department of
Agriculture for the purposes of testing for product quality
control purposes.
(3) An amount of cannabis or cannabis product provided
by a cannabis cultivator licensee or cannabis processor
licensee to another cannabis entity licensee for business or
marketing purposes.
"Significantly involved person." A person that holds at
least a 20% investment interest in a proposed or licensed
cannabis entity or who is a decisionmaking member of a group
that holds at least a 20% investment interest in a proposed or
licensed cannabis entity in which no member of that group holds
more than a 5% interest in the total group investment interest,
and the person makes controlling decisions regarding the
proposed or licensed cannabis entity.
"Smoking." The burning of a lighted cigarette, cigar, pipe
or any other matter or substance which contains cannabis or a
cannabis product, including the use of an electronic cannabis
smoking device that creates an aerosol or vapor.
"Social and economic equity applicant." A person that is a
resident of this Commonwealth applying for a license, permit or
other authorization to engage in a regulated activity under this
act and who is:
(1) An applicant with at least 51% ownership and control
by one or more individuals who have resided for at least five
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of the preceding 10 years in a designated opportunity zone.
(2) An applicant with at least 51% ownership and control
by one or more individuals who:
(i) Have been arrested for, convicted of or
adjudicated delinquent for any offense that is eligible
for expungement as provided under this act. Nothing in
this definition or any other provision of this act shall
be construed to authorize an employer to require an
employee to disclose an arrest, conviction or
adjudication which is sealed or expunged.
(ii) Are members of an impacted family.
(3) An applicant that is a disadvantaged farmer-owned
small business or other person engaged in agricultural
production, as determined by the board in consultation with
the Department of Agriculture.
"THC." Delta-9-tetrahydrocannabinol, the main psychoactive
chemical contained in the cannabis plant.
"Transport." The transportation of cannabis, cannabis
products or cannabis paraphernalia or related supplies as
provided under this act.
"Unreasonably impracticable." Measures which are necessary
to comply with regulations promulgated by the board under this
act which require such a high investment of risk, money, time,
or any other resource or asset that the operation of a cannabis
establishment is not worthy of being carried out in practice by
a reasonably prudent person.
"Verification system." An Internet-based system established
and maintained by the board that is accessible by the
department, the Attorney General, the Pennsylvania State Police,
cannabis retailers and designated employees and agents of
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cannabis retailers on a 24-hour basis for the verification and
tracking of cannabis and cannabis products.
CHAPTER 2
EXEMPTIONS RELATED TO PERSONAL USE OF
CANNABIS AND CANNABIS PRODUCTS
Section 201. Personal use of cannabis and cannabis products
and exemptions.
(a) Exemption from criminal or civil penalties.--
Notwithstanding any applicable provision of the act of April 14,
1972 (P.L.233, No.64), known as The Controlled Substance, Drug,
Device and Cosmetic Act, or 18 Pa.C.S. (relating to crimes and
offenses) or any other law or regulation to the contrary and
except as provided in this act, the following acts shall not be
unlawful and shall not be an offense under the Controlled
Substance, Drug, Device and Cosmetic Act, 18 Pa.C.S. or any
other provision of law or a basis for the seizure or forfeiture
of assets under 42 Pa.C.S. §§ 5803 (relating to asset
forfeiture), 5805 (relating to forfeiture procedure), 5806
(relating to motion for return of property), 5807 (relating to
restrictions on use), 5807.1 (relating to prohibition on
adoptive seizures) and 5808 (relating to exceptions) or any
other law or regulation, including any ordinance, law or
regulation of a municipality, for the personal use of cannabis
or cannabis products as authorized under this act:
(1) Purchasing, possessing, consuming or otherwise
using, displaying or transporting:
(i) The equivalent of one ounce or 28.38 grams or
less of cannabis.
(ii) Cannabis paraphernalia.
(iii) The equivalent of one ounce or 28.38 grams or
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less of a cannabis product in solid, liquid or
concentrated form based upon an equivalency calculation
for different product forms as established by the board
by regulation. The board may use academic research
conducted as provided under the Medical Marijuana Act and
research conducted in other states on the issue of
product equivalency calculations when setting equivalency
calculations under this subparagraph.
(iv) Five grams or 0.176 ounces or less of cannabis
resin.
(2) Possessing, displaying, purchasing or transporting
at any one time any amount of cannabis or cannabis resin in
an amount greater than permitted under this subsection, or a
cannabis product in solid, liquid or concentrate form with
more than the equivalency permitted under this subsection
shall be considered a violation of The Controlled Substance,
Drug, Device and Cosmetics Act and any applicable provisions
of 18 Pa.C.S., and subject the person to prosecution as if
the person possessed, displayed, purchased or transported
cannabis, a cannabis product or cannabis resin in violation
of applicable provisions of The Controlled Substance, Drug,
Device and Cosmetics Act or 18 Pa.C.S.
(b) Smoking or consumption in public or other places.--
Except as provided in this subsection, the following acts shall
be lawful:
(1) Smoking or consumption of lawfully possessed
cannabis or cannabis products. Nothing in this section shall
permit an individual to smoke or otherwise consume cannabis
in public or in a public place, including the smoking of
cannabis or the consumption of a cannabis product in a public
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place under the act of June 13, 2008 (P.L.182, No.27), known
as the Clean Indoor Air Act, or any other law enacted or
regulation adopted relating to vaping or the use of
electronic cigarettes or electronic cannabis smoking devices
in public or an indoor public place or portion of the public
place, even if the smoking of tobacco or vaping is otherwise
permitted in the public place or portion of the public place
under the Clean Indoor Air Act.
(2) (i) Notwithstanding 68 Pa.C.S. (relating to real
and personal property) or any other provision of law or
regulation, the smoking of cannabis or the consumption of
a cannabis product may be permitted by the person that
owns or controls a lodging establishment as defined in 48
Pa.C.S. § 1311(g) (relating to hotelkeepers and
campground owners) in up to 20% of the lodging
establishment's guest rooms.
(ii) The smoking of cannabis or the consumption of a
cannabis product may also be prohibited or otherwise
regulated in a tenement building, apartment or multiple
dwelling premise as those terms are defined in the act of
April 6, 1951 (P.L.69, No.20), known as The Landlord and
Tenant Act of 1951, if the right to smoke cannabis or use
cannabis products is included in the lease agreement
between the lessee and the person that owns or controls
the tenement building, apartment or multiple dwelling
building.
(3) In the case of the smoking or consumption of
cannabis or cannabis products using an electronic cannabis
smoking device, a person that owns or controls a property,
except for a tenement building, apartment or multiple
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dwelling premises, as defined in the Landlord and Tenant Act,
may prohibit or otherwise regulate the smoking or consumption
of cannabis or cannabis products using an electronic cannabis
smoking device in the premises of or on or around the real
property.
(4) Notwithstanding section 6 of the Clean Indoor Air
Act or any other law or regulation to the contrary, penalties
that may be assessed for the smoking of tobacco where
prohibited under the Clean Indoor Air Act shall be applicable
to the smoking of cannabis where prohibited under this act or
any ordinance enacted by the governing body of a
municipality.
(5) Assisting another individual who is 21 years of age
or older in purchasing, possessing, consuming or otherwise
using, displaying or transporting cannabis or a cannabis
product.
(c) Additional acts declared lawful.--Notwithstanding any
other provision of law or regulation, if a person holds a
current and valid license, permit or other authorization to
engage in a regulated activity under this act or is acting in
the capacity as an owner, employee or agent of the person duly
licensed, permitted or authorized to engage in a regulated
activity, the following acts are declared lawful and shall not
be criminal offenses under the Controlled Substance, Drug,
Device and Cosmetic Act, 18 Pa.C.S. or any other provision of
law or a basis for seizure or forfeiture of assets as provided
under subsection (a) or under any other law or regulation,
including any ordinance, law or regulation of a municipality:
(1) Manufacturing, purchasing or possessing cannabis
paraphernalia or the sale of cannabis paraphernalia to a
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person 21 years of age or older.
(2) Possessing, displaying or transporting cannabis or
cannabis products.
(3) Purchasing cannabis or cannabis products from any of
the following:
(i) A cannabis cultivator.
(ii) A cannabis processor.
(iii) A cannabis microbusiness.
(iv) A cannabis retailer.
(4) Selling cannabis or cannabis products to cannabis
consumers.
(5) Cultivating, harvesting, processing, packaging,
repackaging, storing, transporting, displaying or possessing
cannabis or cannabis products.
(6) Delivering or transferring cannabis or cannabis
products to a cannabis testing laboratory.
(7) Selling cannabis to a cannabis cultivator, cannabis
processor, cannabis microbusiness or cannabis retailer.
(8) Purchasing cannabis from a cannabis cultivator.
(9) Packaging, processing, distributing, transporting,
displaying or possessing cannabis or cannabis products and
delivering or transferring cannabis products to a cannabis
testing laboratory.
(10) Selling cannabis and cannabis products to a
cannabis processor or cannabis retailer.
(11) Purchasing cannabis products from a cannabis
processor.
(12) Cultivating, processing, distributing, packaging,
repackaging, storing, transporting, displaying, transferring
or delivering of cannabis or cannabis products.
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(13) Leasing or otherwise allowing the use of property
owned, occupied or controlled by any person for cultivating,
processing, distributing, storing, transporting, selling or
offering for sale cannabis and cannabis products as provided
under this act.
(d) Unlawful acts.--The following acts shall be a violation
of The Controlled Substance, Drug, Device and Cosmetic Act and
subject the individual to prosecution as if the individual
distributed the cannabis, cannabis resin or cannabis product in
violation of The Controlled Substance, Drug, Device and Cosmetic
Act:
(1) Selling or transferring at any one time any amount
of cannabis or cannabis resin in an amount greater than that
permitted under this section, or a cannabis product in solid,
liquid or concentrate form with more than the equivalency
permitted under this section.
(2) Selling or transferring cannabis, cannabis resin or
a cannabis product in solid, liquid or concentrate form to an
individual who is under 21 years of age.
(3) Smoking, using and consuming cannabis and cannabis
products in the premises and on and around the property of a
licensed facility, licensed racetrack or hotel, as those
terms are defined under 4 Pa.C.S. § 1103 (relating to
definitions).
CHAPTER 3
CANNABIS REGULATORY CONTROL BOARD
Section 301. Cannabis Regulatory Control Board established.
(a) Establishment.--The Cannabis Regulatory Control Board is
established as an independent board and shall be a body
corporate and politic.
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(b) Membership.--The board shall consist of seven members
appointed as follows:
(1) Three members appointed by the Governor.
(2) One member appointed by each of the following:
(i) The President pro tempore of the Senate.
(ii) The Minority Leader of the Senate.
(iii) The Speaker of the House of Representatives.
(iv) The Minority Leader of the House of
Representatives.
(c) Requirements.--The following apply:
(1) Individuals appointed to the board under subsection
(b) must:
(i) Be residents of this Commonwealth.
(ii) Possess education, training or experience and
expertise in agriculture crop production, botany or plant
physiology, corporate management, finance or public
health.
(2) Individuals appointed to the board shall reflect the
geographic, racial, ethnic and gender diversity of this
Commonwealth.
(d) Removal.--A member of the board shall be removed from
office by the appointing authority for any of the following:
(1) misconduct in office, willful neglect of duty or
conduct evidencing unfitness for office or incompetence; or
(2) upon conviction of an offense graded as a felony, an
infamous crime, an offense under this act or an equivalent
offense under Federal law or the laws of any other state or
jurisdiction, domestic or foreign.
(e) Terms of office.--The following apply:
(1) Members of the board appointed by the Governor under
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subsection (b)(1) shall serve an initial term of one, two or
three years, respectively, as designated by the Governor at
the time of appointment, and until their successors are
appointed and qualified under this section. A gubernatorial
appointee shall serve no more than two full consecutive
terms.
(2) Legislative appointees appointed under subsection
(b)(2) shall serve a term of two years and until their
successors are appointed and qualified under this section. A
legislative appointee shall serve no more than three full
consecutive terms.
(f) Time frame for appointments.--The appointing authorities
shall make the initial appointments to the board within 45 days
of the effective date of this subsection. The following apply:
(1) No appointment shall be final until receipt by the
appointing authority of the background investigation of the
appointee conducted by the Pennsylvania State Police, which
shall be completed by the Pennsylvania State Police within 30
days of receipt of an application for a background
investigation.
(2) Appointments to fill a vacancy shall be made within
60 days of the date the vacancy was created.
(3) An individual who has been convicted in any
jurisdiction, domestic or foreign, of a felony, infamous
crime or crime under the act of April 14, 1972 (P.L.233,
No.64), known as The Controlled Substance, Drug, Device and
Cosmetic Act, or 18 Pa.C.S. § 7508 (relating to drug
trafficking sentencing and penalties) may not be appointed to
the board.
(g) Vacancy.--The following apply:
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(1) A vacancy on the board occurring for any reason,
except for the expiration of a term, shall be filled for the
remainder of the unexpired term in the same manner as the
original appointment.
(2) An appointing authority may elect to reappoint a
member appointed to fill a vacancy on the board as follows:
(i) A member appointed to fill a vacancy caused by a
legislative appointee may be reappointed by the
appointing authority to serve three full terms following
the expiration of the unexpired term associated with the
vacancy.
(ii) A member appointed to fill a vacancy caused by
a gubernatorial appointee may be reappointed by the
Governor to serve two full terms following the expiration
of the unexpired term associated with the vacancy.
(h) Chairperson.--The chairperson of the board shall be
appointed by the Governor.
(i) Ex officio members.--The Secretary of Agriculture,
Secretary of Revenue, Secretary of Health, Secretary of
Environmental Protection and State Treasurer or a designee of
the secretaries shall serve on the board as nonvoting ex officio
members. Each designee shall be a deputy secretary or hold an
equivalent position within the department represented.
(j) Qualified majority vote.--The following apply:
(1) Except as authorized in paragraphs (2) and (3), any
action, including, but not limited to, the approval,
issuance, denial or conditioning of a license, permit,
certification or other authorization to engage in a regulated
activity under this act, the making of an order or the
ratification of any permissible act done or order made by one
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or more of the members, shall require a qualified majority
vote consisting of at least one gubernatorial appointee and
the four legislative appointees.
(2) Any action to suspend or revoke, not renew, void or
require forfeiture of a license, permit or other
authorization to engage in a regulated activity under this
act, impose any administrative sanction, fine or penalty
under this act or issue cease and desist orders or similar
enforcement actions shall require a majority vote of all the
members of the board.
(3) Notwithstanding any other provision of this act or
65 Pa.C.S. § 1103(j) (relating to restricted activities), a
member shall disclose the nature of any disqualifying
interest which would disqualify the member and require the
member to abstain from voting in a hearing or proceeding
under this act in which the member's objectivity,
impartiality, integrity or independence of judgment may be
reasonably questioned, as provided in sections 302 and 303(c)
(2). If a legislative appointee disqualifies themselves, the
qualified majority shall consist of all of the remaining
legislative appointees and at least two gubernatorial
appointees.
(k) Background investigation.--Appointees to the board shall
be subject to a background investigation conducted by the
Pennsylvania State Police as provided under this chapter. The
results of a background investigation conducted under this
subsection may be submitted by the Pennsylvania State Police to
the appointing authority electronically.
(l) Quorum.--A majority of the members of the board
appointed under subsection (b) shall be required to establish a
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quorum and a majority of members shall be required to exercise
the board's powers at any meeting of the board.
(m) Fiduciary duty.--Each member and employee of the board
shall serve as a fiduciary of the Commonwealth.
Section 302. Qualifications and restrictions.
The following apply:
(1) Each member at the time of appointment to the board
shall be at least 25 years of age. A member appointed under
section 301(b) shall have been a resident of this
Commonwealth for a period of at least two years immediately
preceding appointment. Each member shall continue to remain a
resident of this Commonwealth during the term of membership
on the board.
(2) Except for ex officio members, no individual shall
be appointed a member of the board or be employed by or be an
independent contractor of the board if that person is a
public official or party officer as defined in section
906(g).
(3) Each member, employee and independent contractor of
the board shall sign an agreement not to disclose
confidential information, including proprietary information.
(4) A member, employee or independent contractor of the
board or other agency whose duties are directly related to
the licensure, permitting or authorization of persons to
engage in a regulated activity under this act may not be
employed, hold any office or position or be engaged in any
activity which is incompatible with the position, employment
or contract.
(5) A member may not engage in a business, employment or
vocation for which the member receives a salary, compensation
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or fee for services rendered which is in excess of 15% of the
member's gross annual salary as a member of the board. For
purposes of this paragraph, the terms "salary,"
"compensation" and "fee" do not include any of the following:
(i) Passive or unearned income, including interest,
dividends or capital gains from the sale of assets or
securities held for investment purposes.
(ii) Health care benefits or retirement, pension or
annuity payments.
(iii) Amounts received from a family-controlled
trade or business in which both personal services and
capital are income-producing factors if the personal
services actually rendered by the member do not generate
a significant amount of income.
(iv) Director's fees attributable to board
membership of a corporate or nonprofit body or board or
reimbursement for expenses incurred in connection with
board membership.
(6) A member may not be paid or receive any fee or other
compensation for any activity related to the duties or
authority of the board other than salary and expenses
provided by law.
(7) The following apply:
(i) A member, employee, independent contractor or
employee of an independent contractor of the board may
not participate in a hearing, proceeding or other matter
in which the member, employee, independent contractor or
employee of an independent contractor, or an immediate
family member, has a financial interest in the subject
matter of the hearing or proceeding or other interest
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that could be substantially affected by the outcome of
the hearing or proceeding without first fully disclosing
the nature of the interest to the board and other persons
participating in the hearing or proceeding.
(ii) The board shall determine if the interest is a
disqualifying interest that requires the disqualification
or nonparticipation of a member, employee, independent
contractor or employee of an independent contractor.
(iii) For purposes of this paragraph, the term
"immediate family" shall mean spouse, parent, brother,
sister or child.
(8) The following apply:
(i) At the time of appointment and annually
thereafter, each member shall disclose the existence of
any financial interest in any applicant, licensee,
permittee or other person authorized to engage in a
regulated activity under this act or in any affiliate,
intermediary, subsidiary or holding company of the
applicant, licensee, permittee or other person held by
the member or known to be held by the member's immediate
family.
(ii) The disclosure statement shall be filed with
the executive director of the board and with the
appointing authority of the member and shall be open to
inspection by the public at the office of the board
during the normal business hours of the board for the
duration of the member's term and for two years after the
termination or expiration of the member's term of office.
(iii) For purposes of this paragraph, the term
"immediate family" shall mean spouse, parent, brother,
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sister or child.
(9) The following apply:
(i) Prior to being sworn in as a member, an
appointee and immediate family members of the appointee
shall divest any financial interest in any applicant,
licensee, permittee or other person authorized to engage
in a regulated activity under this act or in any
affiliate, intermediary subsidiary or holding company of
the applicant, licensee, permittee or other person owned
or held by the appointee or known to be held by the
appointee's immediate family.
(ii) For the duration of the member's term and for
two years thereafter, the member and the member's
immediate family may not acquire a financial interest in
an applicant, licensee, permittee or other person
authorized to engage in a regulated activity or in an
affiliate, intermediary, subsidiary or holding company of
an applicant, or cannabis entity licensee, permittee or
other person.
(iii) For purposes of this paragraph, the term
"immediate family" shall mean spouse and any minor or
unemancipated child.
(10) The following apply:
(i) Prior to entering into employment or a contract
with the board and annually thereafter, an employee of
the board, independent contractor or employee of an
independent contractor shall disclose the existence of
any financial interest in an applicant, licensee,
permittee or other person authorized to engage in a
regulated activity under this act or in any affiliate,
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intermediary, subsidiary or holding company of the
applicant, licensee, permittee or other person owned or
held by the employee, independent contractor or employee
of an independent contractor or known to be held by the
immediate family of the employee, independent contractor
or employee of an independent contractor.
(ii) The disclosure statement shall be filed with
the board and shall be open to inspection by the public
at the office of the board during the normal business
hours of the board and for two years after termination of
employment or a contract with the board.
(iii) For purposes of this paragraph, the term
"immediate family" shall mean spouse, parent, brother,
sister or child.
(11) The following apply:
(i) Prior to entering into employment or a contract
with the board, an employee, independent contractor or
employee of an independent contractor and the employee's,
independent contractor's or employee of an independent
contractor's immediate family shall divest any financial
interest in an applicant, licensee, permittee or other
person authorized to engage in a regulated activity under
this act or in any affiliate, intermediary, subsidiary or
holding company of the applicant, licensee, permittee or
other person owned or held by the employee, independent
contractor or employee of an independent contractor or
known to be held by the immediate family of the employee,
independent contractor or employee of an independent
contractor.
(ii) For the duration of the employee's employment
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with the board or the independent contractor's contract
with the board and for one year thereafter, the employee,
independent contractor or employee of an independent
contractor and their immediate family members shall not
acquire, by purchase, gift, exchange or otherwise, any
financial interest in an applicant, licensee, permittee
or other person engaged in a regulated activity under
this act or in any affiliate, intermediary, subsidiary or
holding company of the applicant, licensee, permittee or
other person.
(iii) For purposes of this paragraph, the term
"immediate family" shall mean spouse and any minor or
unemancipated child.
(12) A member, employee, independent contractor or
employee of an independent contractor of the board may not,
directly or indirectly, solicit, request, suggest or
recommend to any applicant, licensee, permittee or other
person authorized to engage in a regulated activity under
this act, to any affiliate, intermediary, subsidiary or
holding company of the applicant, licensee, permittee or
other person or to a principal, employee, independent
contractor or agent of the applicant, licensee, permittee or
other person, the appointment or employment of a person in
any capacity by the applicant, licensee, permittee or other
person or any affiliate, intermediary, subsidiary or holding
company of the applicant, licensee, permittee or other person
for a period of two years from the termination of term of
office, employment or contract with the board.
(13) A member may not accept employment with an
applicant, licensee, permittee or other person authorized to
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engage in a regulated activity under this act or with any
affiliate, intermediary, subsidiary or holding company of the
applicant, licensee, permittee or other person, for a period
of two years from the termination of term of office.
(14) A former member may not appear before the board in
any hearing or proceeding or participate in any other
activity on behalf of an applicant, licensee, permittee or
other person authorized to engage in a regulated activity
under this act or an affiliate, intermediary, subsidiary or
holding company of the applicant, licensee, permittee or
other person, for a period of two years from the termination
of the term of office.
(15) A member, employee of the board, independent
contractor or employee of an independent contractor may not
accept a complimentary service from an applicant, licensee,
permittee or other person authorized to engage in a regulated
activity under this act or from an affiliate, intermediary,
subsidiary or holding company of the applicant, licensee,
permittee or other person for the duration of their term of
office, employment or contract with the board and for a
period of two years from the termination of the term of
office, employment or contract with the board.
(16) The following apply:
(i) A member who has been convicted during the
member's term of office of a felony, infamous crime or a
felony offense indictable under section 13 of the act of
April 14, 1972 (P.L.233, No.64), known as The Controlled
Substance, Drug, Device and Cosmetic Act, or a felony
offense under 18 Pa.C.S. (relating to crimes and
offenses) or an equivalent Federal statute or equivalent
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statue in any jurisdiction, foreign or domestic, shall,
upon conviction, be automatically removed from the board
and shall be ineligible to become a member of the board
in the future.
(ii) If an ex officio member is indicted for an
offense enumerated in subparagraph (i) during the ex
officio member's term of office, the ex officio member
shall be suspended from the duties of membership on the
board and, upon conviction, be automatically removed from
the board.
(iii) A designee who is a deputy secretary or holds
an equivalent position with the department represented
shall be designated to serve as an ex officio member of
the board in place of the ex officio member who was
removed.
(17) The following shall apply to an employee of the
board whose duties substantially involve licensing,
enforcement, development of law, promulgation of regulations
or development of policy relating to the regulation of
cannabis for personal use under this act or who has other
discretionary authority which may affect or influence the
outcome of an action, proceeding or decision of the board
under this act, including the executive director, bureau
directors and attorneys of the board:
(i) The employee may not, for a period of two years
following termination of employment, accept employment
with or be retained by an applicant, licensee, permittee
or other person authorized to engage in a regulated
activity under this act, or with any affiliate,
intermediary, subsidiary or holding company of an
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applicant, licensee, permittee or other person.
(ii) The employee may not, for a period of two years
following termination of employment, appear before the
board in a hearing or proceeding or participate in
activity on behalf of an applicant, licensee, permittee
or other person authorized to engage in a regulated
activity under this act or on behalf of an affiliate,
intermediary, subsidiary or holding company of an
applicant, licensee, permittee or other person.
(iii) An applicant, licensee, permittee or other
person authorized to engage in a regulated activity under
this act or an affiliate, intermediary, subsidiary or
holding company of an applicant, licensee, permittee or
other person may not, until the expiration of two years
following termination of employment with the board,
employ or retain the individual. Violation of this
subparagraph shall result in termination of the
employee's employment and subject the applicant,
licensee, permittee or other person to sanctions by the
board under section 911.
(iv) A prospective employee who, upon employment,
would be subject to this paragraph must, as a condition
of employment, sign an affidavit that the prospective
employee will not violate subparagraph (i) or (ii). If
the prospective employee fails to sign the affidavit, the
board shall rescind any offer of employment and shall not
employ the individual.
(18) The following apply:
(i) A person that is an independent contractor or
employee of an independent contractor whose duties
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substantially involve consultation relating to licensing,
enforcement, development of law, promulgation of
regulations or the development of policy relating to the
regulation of cannabis under this act may not:
(A) For a period of one year following
termination of the contract with the board, be
retained by an applicant, licensee, permittee or
other person authorized to engage in a regulated
activity under this act or by an affiliate,
intermediary, subsidiary or holding company of an
applicant, licensee, permittee or other person.
(B) For a period of two years following
termination of the contract with the board, appear
before the board in a hearing or proceeding or
participate in activity on behalf of an applicant,
licensee, permittee or other person authorized to
engage in a regulated activity under this act or on
behalf of an affiliate, intermediary, subsidiary or
holding company of an applicant, licensee, permittee
or other person.
(ii) An applicant, licensee, permittee or other
person authorized to engage in a regulated activity under
this act or an affiliate, intermediary, subsidiary or
holding company of an applicant, licensee, permittee or
other person may not employ a person who is an
independent contractor or an employee of an independent
contractor until the expiration of one year following
termination of the contract with the board. A willful
violation of this subparagraph shall result in
termination of the person's employment and may subject
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the applicant, licensee, permittee or other person to
sanctions under section 911.
(iii) Each contract between the board and an
independent contractor which involves the duties
specified in this paragraph shall contain a provision
requiring the independent contractor to sign an affidavit
that the independent contractor will not violate
subparagraph (i)(A) or (B). If the independent contractor
fails to sign the affidavit, the board shall not enter
into the contract.
(iv) An independent contractor shall require a
prospective employee whose employment would involve the
duties specified in this paragraph to sign an affidavit
that the prospective employee will not violate
subparagraph (i)(A) or (B). If the prospective employee
fails to sign the affidavit, the independent contractor
shall rescind any offer of employment and shall not
employ the individual.
(19) Nothing under paragraph (17) or (18) shall prevent
a current or former employee of the board, a current or
former independent contractor or a current or former employee
of an independent contractor from appearing before the board
in a hearing or proceeding as a witness or testifying as to
any fact or information.
(20) The State Ethics Commission shall issue a written
determination of whether a person is subject to paragraph
(17) or (18) upon the written request of the person or the
person's employer or potential employer. A person that relies
in good faith on a determination issued under this paragraph
shall not be subject to any penalty for an action taken,
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provided that all material facts stated in the request for
the determination are correct.
(21) The following apply:
(i) The State Ethics Commission shall publish a list
of all employment positions within the board and
employment positions with independent contractors whose
duties would subject employees holding those positions to
the provisions of paragraphs (17) and (18).
(ii) The board and each independent contractor shall
assist the State Ethics Commission in the development of
the list.
(iii) The State Ethics Commission shall transmit the
list to the Legislative Reference Bureau for publication
in the Pennsylvania Bulletin biennially and post the list
on the State Ethics Commission's publicly accessible
Internet website.
(iv) Upon request, employees of the board and each
independent contractor shall have a duty to provide the
State Ethics Commission with adequate information to
accurately develop and maintain the list.
(v) The State Ethics Commission may impose a civil
penalty under 65 Pa.C.S. § 1109(f) (relating to
penalties) upon an employee or independent contractor who
fails to cooperate with the State Ethics Commission under
this paragraph.
(vi) An employee of the board or of an independent
contractor who relies in good faith on the list published
by the State Ethics Commission shall not be subject to
any penalty for a violation of paragraph (17) or (18).
(22) If a member of the board violates this section, the
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appointing authority may remove the person from the board. A
member removed under this paragraph shall, for a period of
five years following removal, be prohibited from appointment
to the board and shall be prohibited from applying for a
license, permit or other authorization to engage in a
regulated activity under this act and from becoming an
independent contractor or registering as a licensed
representative.
Section 303. Code of conduct.
(a) Adoption.--The board shall adopt and maintain a
comprehensive code of conduct prior to the consideration of any
application for a license, permit or other authorization to
engage in a regulated activity under this act. The code of
conduct shall be modeled after the Code of Judicial Conduct of
the American Bar Association, as amended and adopted by the
Pennsylvania Supreme Court. The code of conduct shall supplement
all other requirements under this act and 65 Pa.C.S. Pt. II
(relating to accountability) and shall provide guidelines
applicable to members, employees, independent contractors,
employees of independent contractors and the immediate family of
the members, employees, independent contractors and employees of
independent contractors to enable them to avoid any perceived or
actual conflict of interest and to promote public confidence in
the integrity and impartiality of the board. At a minimum, the
code of conduct:
(1) May not conflict with the laws of this Commonwealth
but may be more restrictive than the laws of this
Commonwealth.
(2) Shall be submitted, including any amendments or
restatements of the code of conduct, to the State Ethics
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Commission for approval.
(3) Shall include registration of cannabis entity
representatives under subsection (b) and the restrictions
under subsections (c).
(b) Registration.--The following apply:
(1) A cannabis entity representative shall register with
the board in a manner prescribed by the board, which shall
include the name, employer or firm, business address and
business telephone number of the cannabis entity
representative and an applicant, licensee, permittee or other
person represented.
(2) A cannabis entity representative shall have an
affirmative duty to update the cannabis entity
representative's registration information on an ongoing
basis. The failure to update registration information shall
be punishable by the board.
(3) The board shall maintain a registration list of all
cannabis entity representatives. The registration list shall:
(i) contain the information required under paragraph
(1); and
(ii) be available for public inspection at the
office of the board during normal business hours, as
established by regulation, and on the board's publicly
accessible Internet website.
(c) Restrictions.--In addition to the other prohibitions
provided in this act, a member of the board:
(1) May not accept any discount, gift, gratuity,
compensation, travel, lodging, complimentary service or other
thing of value, directly or indirectly, from any applicant,
licensee, permittee or other person authorized to engage in a
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regulated activity under this act or an affiliate, subsidiary
or intermediary of an applicant, licensee, permittee or other
person.
(2) Must disclose and recuse the member from any hearing
or other proceeding in which the member's objectivity,
impartiality, integrity or independence of judgment may be
reasonably questioned due to the member's relationship or
association with a party connected to the hearing or
proceeding or person appearing before the board.
(3) Shall refrain from any financial or business dealing
with an applicant, licensee, permittee or other person
engaged in a regulated activity under this act which would
tend to reflect adversely on the member's objectivity,
impartiality or independence of judgment.
(4) Except as provided in this act, may not:
(i) hold or campaign for public office;
(ii) hold an office in any political party or
political committee;
(iii) contribute to or solicit contributions to a
political campaign, political party, political committee
or candidate;
(iv) publicly endorse a candidate for a political
office; or
(v) actively participate in a political campaign.
(5) May not solicit money for a charitable, educational,
religious, health, fraternal, civic or other nonprofit entity
from an applicant, licensee, permittee or other person
authorized to engage in a regulated activity under this act
or from an affiliate, subsidiary, intermediary or holding
company of any applicant, licensee, permittee or other
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person. Subject to section 301, a member may serve as an
officer, employee or member of the governing body of a
nonprofit entity and may attend, make personal contributions
to and plan or preside over the nonprofit entity's
fundraising events. A member may permit the member's name to
appear on the letterhead used for fundraising events if the
letterhead contains only the member's name and position with
the nonprofit entity.
(6) (i) May not meet or engage in discussions with an
applicant, licensed representative, licensee, permittee
or any other person authorized to engage in a regulated
activity under this act who provides goods, property or
services to a cannabis entity licensee, permittee or any
other person under the jurisdiction of the board unless
the meeting or discussion occurs on the business premises
of the board and is recorded in a log. The log shall:
(A) Include the name of the participants.
(B) Identify the person the participant
represents, if applicable.
(C) Include a summary of the nature of the
meeting and subject discussed.
(D) Include the date and time of the meeting or
discussion.
(E) Be available for public inspection during
the regular business hours of the board.
(F) Be posted on the board's publicly accessible
Internet website.
(ii) This paragraph shall not apply to meetings to
consider matters requiring the physical inspection of a
cannabis establishment or operations of an applicant or
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cannabis entity licensee, permittee or other person
authorized to engage in a regulated activity under this
act, if the meeting is recorded in the log.
(7) Shall avoid impropriety and the appearance of
impropriety at all times and observe standards and conduct
that promote public confidence in the oversight of the
cultivation, processing, distribution, storing, transporting,
delivery, sale or offering for sale of cannabis and cannabis
products.
(8) May not enter or be permitted to enter and engage in
any activities, nor have any interest, directly or
indirectly, in an applicant, cannabis entity licensee or
permittee or other person authorized to engage in a regulated
activity under this act, except in the course of performing
the member's or employee's duties under this act.
(9) Shall comply with any other laws, rules or
regulations relating to the conduct of a member.
(d) Ex parte communications.--The following apply:
(1) A member or hearing officer of the board may not
engage in any ex parte communication with any person. An
attorney, including the chief counsel, advising the board on
a particular issue or proceeding involving the licensing,
permitting or other authorization to engage in a regulated
activity under this act may not engage in any ex parte
communication with any person.
(2) An attorney representing the board or an office or
bureau established by the board under this act or an attorney
representing an applicant, licensee or permittee or other
person authorized to engage in a regulated activity under
this act may not engage in an ex parte communication with a
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member, attorney of the board or an attorney of an office or
bureau of the board who is advising the board on a proceeding
or hearing of the board.
(3) An employee of the bureau or the Office of
Enforcement Counsel may not engage in an ex parte
communication with a member, attorney of the Office of Chief
Counsel who is advising the board on a proceeding or hearing
officer of the board.
(e) Procedures relating to ex parte communications.--The
following apply:
(1) An ex parte communication received or engaged in by
a member or hearing officer shall be recorded in a log. The
log shall be available for public inspection during the
regular business hours of the board and shall be posted on
the board's publicly accessible Internet website. The log
shall include:
(i) The name of the individual documenting the ex
parte communication.
(ii) The date and time of the ex parte
communication.
(iii) The names of all individuals involved in the
ex parte communication.
(iv) The subject discussed.
(2) In addition to documenting an ex parte communication
in the log under paragraph (1), notification of the substance
of the ex parte communication and an opportunity to respond
shall be provided to all parties to a hearing or other
proceeding directly affected by the anticipated vote or
action of the hearing officer or board related to the ex
parte communication.
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(f) Recusal.--The following apply:
(1) A member or hearing officer who engaged in or
received an ex parte communication shall recuse themselves
from any hearing or other proceeding related to the ex parte
communication if the context and substance of the ex parte
communication creates substantial reasonable doubt as to the
member or hearing officer's ability to act objectively,
independently or impartially.
(2) A member or hearing officer who engaged in or
received an ex parte communication who elects not to recuse
themselves from a hearing or other proceeding shall state the
reasons for not recusing themselves on the record prior to
the commencement of the hearing or proceeding.
(3) Failure of a hearing officer who engaged in or
received an ex parte communication to recuse themselves from
a hearing or other proceeding when required under paragraph
(1) shall be grounds for appeal to the board.
(4) Failure of a member or hearing officer who engaged
in or received an ex parte communication to recuse themselves
from a hearing or other proceeding when required under
paragraph (1) shall be grounds for appeal to a court of
competent jurisdiction if the board action being appealed
could not have occurred without the participation of the
member or hearing officer.
(5) Nothing in this subsection shall be construed to
preclude or prevent a member from consulting with other
members individually if the consultation complies with 65
Pa.C.S. Ch. 7 (relating to open meetings) or with employees
or independent contractors or employees of independent
contractors whose functions are to assist the board in
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carrying out the board's adjudicative functions.
(g) Conflict of interest.--Except as specifically provided
under this act, the provisions of 65 Pa.C.S. Ch. 11 (relating to
ethics standards and financial disclosure) shall apply to
members of the board and to all employees of the board.
(h) Ex officio members.--The restrictions under subsection
(c)(4) shall not apply to ex officio members.
Section 304. Powers and duties of board.
(a) General powers.--The following apply:
(1) The board shall have general and sole regulatory
authority to administer the provisions of this act and over
the development, regulation and enforcement of activities
related to the cultivation, processing, distribution,
storing, testing, transporting, delivery, sale and offering
for sale at retail of cannabis and cannabis products for
personal use in this Commonwealth. The board shall ensure
safety in the cultivation, processing, distribution, storing,
testing, transporting, delivery and sale or offering for sale
of cannabis and cannabis products and integrity in the
acquisition, distribution and sale or offering for sale of
cannabis and cannabis products in this Commonwealth under
this act and regulations promulgated by the board.
(2) The board shall employ individuals as necessary to
carry out the powers and duties of the board, who shall serve
at the board's pleasure. An employee of the board shall be
considered a State employee for purposes of 71 Pa.C.S. Pt.
XXV (relating to retirement for State employees and
officers). For the purposes of this paragraph, the board
shall not be considered an executive agency or independent
agency under the act of October 15, 1980 (P.L.950, No.164),
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known as the Commonwealth Attorneys Act. The board shall not
take final action to fill a vacancy in the position of
executive director of the board, director of the bureau,
chief counsel of the board or director of the Office of
Enforcement Counsel until receipt and review of the results
of the individual's background investigation.
(3) In addition to employees authorized by the board,
each member may employ one special assistant whose
classification and compensation shall be established by the
board. A special assistant shall be a State employee for
purposes of 71 Pa.C.S. Pt. XXV, shall serve at the pleasure
of the member and may only be removed by the board for cause.
(4) The board shall establish a system of classification
and compensation of the board's employees and shall not be
subject to the act of April 9, 1929 (P.L.177, No.175), known
as The Administrative Code of 1929, as to classification and
compensation for the board's employees. The board shall
conduct the board's activities consistent with the practices
and procedures of Commonwealth agencies.
(5) Within 45 days of the effective date of this
paragraph, the board shall transmit notice of the
classification system to the Legislative Reference Bureau for
publication in the Pennsylvania Bulletin and publish the
classification system on the board's publicly accessible
Internet website.
(6) A request for proposal to conduct investigations of
employees and applicants under this act shall include a
requirement that an offeror provide the number of employees
of the offeror who will be engaged in the conduct of
investigations who are residents of this Commonwealth and
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annuitants of a Federal, State or local law enforcement
agency. Preference shall be given to an offeror with a
substantial number of employees who will be engaged in the
conduct of investigations and who are residents of this
Commonwealth and annuitants of a Federal, State or local law
enforcement agency.
(b) Specific powers.--The board shall have the specific
power and duty:
(1) To adopt, use and alter a corporate seal.
(2) To pay or satisfy obligations of the board.
(3) To sue or be sued, implead and be impleaded, or
interplead.
(4) To contract and execute instruments as necessary to
carry out the powers and duties of the board. Contracts for
the purchase of supplies, services and construction shall be
for a term not to exceed two years.
(5) To sell, transfer, convey and dispose of tangible or
intangible property owned by the board.
(6) To administer oaths, examine witnesses and issue
subpoenas compelling the attendance of witnesses or the
production of documents and records or other evidence, or to
designate officers or employees to perform these duties.
(7) To purchase insurance against a loss related to the
board's property or assets.
(8) To appoint an executive director and employ
attorneys, investigators, accountants, auditors and financial
and other experts to render services to the board. For the
purposes of this paragraph, the board shall be considered an
independent agency for purposes of the Commonwealth Attorneys
Act.
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(9) To require background investigations of applicants,
licensees, permittees, persons authorized to engage in a
regulated activity, principals, essential employees and other
persons subject to the jurisdiction of the board.
(10) To enter into an agreement with the Pennsylvania
State Police for the reimbursement of actual costs, as
approved by the board, incurred by the Pennsylvania State
Police for the conduct of background investigations.
Background investigations shall include information in the
possession of the Attorney General.
(11) For purposes of licensing and enforcement and for
purposes of the background investigation, to receive
information otherwise protected by 18 Pa.C.S. Ch. 91
(relating to criminal history record information).
(12) At the board's discretion, to issue, approve,
renew, revoke, suspend, condition or deny issuance or renewal
of a license, permit or other authorization to engage in a
regulated activity under this act.
(13) At the board's discretion, to issue, approve,
renew, revoke, suspend, condition or deny issuance or renewal
of a license, permit, certificate or other authorization for
various classes of employees as required under this act.
(14) At the board's discretion, to issue, approve,
renew, revoke, suspend, condition or deny issuance or renewal
of any additional licenses, permits or other authorization to
engage in a regulated activity under this act, which may be
required by the board.
(15) At the board's discretion, to impose administrative
sanctions and levy fines for any violation of this act.
(16) To require prospective and existing employees,
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independent contractors, employees of independent
contractors, applicants, licensees, permittees and other
persons authorized to engage in a regulated activity under
this act to submit to fingerprinting by the Pennsylvania
State Police or an authorized agent of the Pennsylvania State
Police. The Pennsylvania State Police or an authorized agent
of the Pennsylvania State Police shall submit the
fingerprints to the Federal Bureau of Investigation for
purposes of verifying the identity of the individual and
obtaining records of criminal arrests and convictions.
(17) To require prospective and existing employees,
independent contractors, employees of independent
contractors, applicants, licensees, permittees and other
persons authorized to engage in a regulated activity under
this act to submit photographs consistent with the standards
established by the board.
(18) To develop procedures for notifying law enforcement
for investigation of any licensee, permittee or other person
authorized to engage in a regulated activity under this act
who cultivates, processes, distributes, stores, tests,
delivers, transports, uses, sells or offers for sale any
cannabis or cannabis product in a manner which constitutes a
violation of this act.
(19) In addition to the power of the board regarding
applicants for a license, permit, certificate or other
authorization to engage in a regulated activity under this
act, to determine at the board's discretion the suitability
of a person to engage, directly or indirectly, in a regulated
activity under this act. The board may require a person to
comply with the requirements of this act and regulations of
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the board and may prohibit a person from engaging in a
regulated activity under this act.
(20) Within six months of the effective date of this
section, in a manner that does not impede the immediate
implementation of the duties and responsibilities of the
board specified in this act during the immediate two years of
the effective date of this act, to develop and implement a
diversity and inclusion plan to assure that all persons are
accorded equality of opportunity in employment with and
contracting by the board and the board's contractors,
subcontractors, assignees, lessees, agents, vendors and
suppliers.
(21) The board shall not approve an application for or
issue or renew a license, permit, certification or other
authorization to engage in a regulated activity under this
act unless it is satisfied that the applicant has
demonstrated by clear and convincing evidence that the
applicant does not pose a threat to the public interest or
the effective regulation and control of cannabis and cannabis
products in this Commonwealth or create or enhance
unsuitable, unfair or illegal practices, methods and
activities in the cultivation, processing, producing,
distribution, storing, transporting, delivery, testing, sale
or offering for sale of cannabis and cannabis products in
this Commonwealth or the carrying on of the business and
financial arrangements associated with the business.
(22) The following apply:
(i) Notwithstanding any other provision of law, to
sell, in whole or in part, the Commonwealth's right,
title and interest in State cannabis receipts to the
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authority. The sale shall be subject to the terms and
conditions contained in agreements between the board and
the authority.
(ii) Proceeds from the sale of State cannabis
receipts shall be allocated and used in the manner
otherwise provided under this act for the distribution of
State cannabis receipts or in a manner authorized by an
act of the General Assembly.
(iii) The authority is authorized to purchase State
cannabis receipts upon terms and conditions agreed to by
the board and to issue bonds to fund the purchase of
State cannabis receipts in the manner provided for the
issuance of authority indebtedness in the law
establishing the authority.
(iv) The State Treasurer is authorized and directed
to enter into agreements with the board and the authority
and establish accounts and funds, that shall not be in
the State Treasury, as the authority may direct as being
necessary or appropriate to affect the sale of State
cannabis receipts to the authority and the collection and
transfer of the State cannabis receipts sold to the
authority.
(v) State cannabis receipts sold to the authority
shall be the property of the authority and shall not be
the property of the Commonwealth.
(23) To enter into an agreement with the district
attorneys of the counties where cannabis establishments are
located and the Office of Attorney General for the
reimbursement of actual costs for prosecutions of criminal
violations and for investigating a person applying for a
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determination that an individual has been rehabilitated under
this act.
(24) On December 31 following the one-year period after
the effective date of this paragraph, and every December 31
thereafter, transmit to the Legislative Reference Bureau for
publication in the Pennsylvania Bulletin and publish on the
board's publicly accessible Internet website a complete list
of:
(i) All persons or entities who applied for or held
a license, permit, certification or other authorization
to engage in a regulated activity under this act at any
time during the preceding calendar year.
(ii) All affiliates, intermediaries, subsidiaries
and holding companies of the persons or entities.
(iii) The status of the application, license,
permit, certification or other authorization to engage in
a regulated activity under this act.
(25) To prepare and, through the Governor, submit
annually to the General Assembly an itemized budget
consistent with Article VI of The Administrative Code of
1929, consisting of the amounts necessary to be appropriated
by the General Assembly to meet the obligations accruing
during the fiscal period beginning July 1 of the following
year. The budget shall include itemized recommendations for
the Attorney General, the department, the Department of
Community and Economic Development and the Department of
Agriculture needed to meet their obligations under this act.
(26) In the event that, in any year, appropriations for
the administration of this act are not enacted by June 30,
any money appropriated for the administration of this act
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unexpended, uncommitted and unencumbered at the end of a
fiscal year shall remain available for expenditure by the
board or other agency to which money was appropriated until
the enactment of appropriation for the ensuing fiscal year.
(27) To promulgate rules and regulations necessary for
the administration and enforcement of this act. Except as
provided in section 307, regulations shall be adopted in
accordance with the act of July 31, 1968 (P.L.769, No.240),
referred to as the Commonwealth Documents Law, and the act of
June 25, 1982 (P.L.633, No.181), known as the Regulatory
Review Act.
(28) To collect and post information on the board's
publicly accessible Internet website with sufficient detail
to inform the public of each person with a controlling
interest or ownership interest in an applicant, licensee,
permittee or other person authorized to engage in a regulated
activity under this act and an affiliate, intermediary,
subsidiary or holding company of an applicant or cannabis
entity licensee. The posting shall include:
(i) If the applicant, licensee, permittee or other
person authorized to engage in a regulated activity under
this act or an affiliate, intermediary, subsidiary or
holding company of the applicant, licensee, permittee or
other person is a publicly traded domestic or foreign
corporation, partnership, limited liability company or
other legal entity, the names of all persons with a
controlling interest.
(ii) If the applicant or cannabis entity licensee or
an affiliate, intermediary, subsidiary or holding company
of the applicant or cannabis entity licensee is a
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privately held domestic or foreign corporation,
partnership, limited liability company or other legal
entity, the names of all persons with an ownership
interest greater than 5%.
(iii) The name of any person entitled to cast the
vote of a person named under subparagraph (i) or (ii).
(iv) The names of all officers, directors and
principals of the applicant or cannabis entity licensee.
(29) To adopt regulations governing the postemployment
limitations and restrictions applicable to members and to
employees of the board subject to section 301. In developing
these regulations, the board may consult with the State
Ethics Commission, other governmental agencies and the
disciplinary board of the Supreme Court of Pennsylvania
regarding postemployment limitations and restrictions on
members and employees of the board who are members of the
Pennsylvania Bar.
(30) To review detailed site plans identifying an
applicant's floor plan for a proposed cannabis establishment
to determine the adequacy of the proposed security and
surveillance measures inside and outside the cannabis
establishment.
(31) In the case of a cannabis establishment operated by
a cannabis retailer licensee, to ensure that the proposed
site plan is suitable for public access and that the layout
promotes the safe sale of cannabis and cannabis products,
facilitates safe and secure product handling and storage and
is compliant with the Americans with Disabilities Act of 1990
(Public Law 101-336, 104 Stat. 327).
(32) To adopt regulations authorizing the purchase or
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acquisition of hemp by a cannabis entity licensee from hemp
farmers or other persons engaged in the legal cultivation and
production of hemp in this Commonwealth. Nothing in this
paragraph shall be construed to give the board the authority
to assess a fee or charge on hemp farmers or other persons
who sell or offer hemp for sale to a cannabis entity licensee
for use in cannabis products or to otherwise regulate the
cultivation and production activities of hemp farmers or
other persons.
Section 305. Regulatory authority of board.
(a) Scope.--The board shall have all the duties, functions
and powers necessary and appropriate to enable the board to
administer and enforce this act. The regulatory authority of the
board extends to the regulation and control of persons that hold
a cannabis entity license or permit and any other person
authorized to engage in a regulated activity under this act.
(b) Regulatory authority.--The duties, functions and powers
of the board shall include, but not be limited to, the
following:
(1) Regulate the cultivation, processing, distribution,
transfer, storing, testing, transportation, delivery and sale
or offering for sale of cannabis and cannabis products under
this act.
(2) Fix, in consultation with the Department of
Agriculture, the standards of cultivation and processing of
cannabis and cannabis products to be sold or offered for sale
to cannabis consumers in this Commonwealth.
(3) Grant, suspend or revoke any license or conditional
license for the cultivation, processing, distribution,
storing, transporting, delivering, sale or offering for sale
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of cannabis and cannabis products or any other authorization
to engage in a regulated activity under this act and to
authorize the transfer of a cannabis entity license to
another person as provided under this act.
(4) Deny the renewal of, condition, suspend or revoke a
license, permit, certification or other authorization to
engage in a regulated activity under this act, if the board
finds in the board's sole discretion that a licensee,
permittee or holder of a certification or authorization to
engage in a regulated activity under this act or an officer,
employee or agent of the licensee, permittee or holder of a
certification or authorization have furnished false or
misleading information to the board or failed to comply with
this act or regulations of the board and that it would be in
the public interest to deny, deny the renewal of, revoke,
condition or suspend the license, permit, certification or
other authorization.
(5) Adopt, amend or rescind regulations as necessary and
appropriate to carry out the intent and provisions of this
act.
(6) Restrict access to confidential and proprietary
information and data in the possession of the board which has
been obtained under this act and ensure that the
confidentiality of information is maintained and protected.
Records shall be retained by the board for seven years.
(7) Prescribe and require periodic financial reporting
and internal and external security and accounting control
requirements for all cannabis entity licensees, permittees
and holders of an authorization to engage in a regulated
activity under this act.
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(8) Require each cannabis entity licensee to provide the
board with the cannabis entity licensee's audited annual
financial statements, with any additional financial details
that the board may request. The audited financial statements
shall be submitted not later than 90 days after the end of
the cannabis entity licensee's fiscal year.
(9) Enforce prescribed hours for the operation of
cannabis retailers on any day during the year in order to
meet the needs of patrons and competition or market demand.
(10) The following apply:
(i) Require that each cannabis retailer prohibit
persons under 21 years of age from entering the premises
of the cannabis retailer's cannabis establishment and
from purchasing cannabis or cannabis products.
(ii) Nothing in this paragraph shall be construed to
prohibit a cannabis retailer or any other cannabis entity
licensee from employing a person 18 years of age or older
or to prohibit a person 18 years of age or older from
entering a cannabis establishment in the performance of
the duties as an employee of a cannabis retailer licensee
or member of a first responder organization.
(iii) For the purposes of this paragraph, the term
"first responder organization" shall have the meaning
given to it under 35 Pa.C.S. § 7714(b) (relating to
soliciting by first responder organizations).
(11) Require each applicant for a cannabis entity
license to provide detailed site plans of the applicant's
proposed cannabis establishment, which shall be reviewed and
approved by the board for the purpose of determining the
adequacy of the proposed security and surveillance measures
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inside and outside the cannabis establishment. Applicants
shall cooperate with the board in making modifications or
adjustments to site plans and ensure that the modified site
plans, as approved by the board, are made.
(12) Inspect or provide authorization for the inspection
at any time of any cannabis establishment where cannabis is
cultivated, processed, stored, distributed, tested,
transported, sold or offered for sale.
(13) Prescribe forms of applications for licenses,
permits and any other authorization to engage in a regulated
activity under this act and of all reports deemed necessary
by the board.
(14) Appoint advisory groups and committees to provide
assistance to the board to carry out the purposes and
objectives of this act.
(15) Exercise the powers and perform the duties in
relation to the administration of the board as are necessary
but not specifically vested under this act, including, but
not limited to, budgetary and fiscal matters.
(16) Develop and establish minimum criteria for
certifying or registering employees to work in the cannabis
industry in positions requiring advanced training and
education.
(17) If public health, safety or welfare imperatively
requires emergency action and the board incorporates a
finding to that effect in an order, suspend a cannabis entity
license, effective on the date specified in the order or upon
service of a certified copy of the order on the cannabis
entity licensee, whichever is later, pending proceedings for
revocation or other action. The proceedings shall be promptly
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instituted and determined by the board. In addition, the
board may order the administrative seizure of cannabis or
cannabis products, issue a cease and desist order or take any
other action necessary to protect public health and safety
and effectuate and enforce the policy and purpose of this
act.
(18) Adopt and promulgate regulations and issue
declaratory rulings, guidance and industry advisories.
(19) No later than January 1, 2022, and by January 1 of
each year thereafter, compile an annual report on the
effectiveness of this act. In compiling the annual report,
the board may consult with the department, the Department of
Agriculture, the Office of the Attorney General, the
Pennsylvania State Police, the Department of Health, the
Department of Community and Economic Development and the
Department of Drug and Alcohol Programs. The report shall
include, but not be limited to, the following information:
(i) The number of licenses, permits and other
authorizations to engage in a regulated activity under
this act applied for by geographic region of this
Commonwealth and the number of licenses, permits and
other authorizations approved and issued or denied by
geographic region.
(ii) The economic and fiscal impacts associated with
this act, including tax revenue and revenue collected
from the payment of fees, fines and penalties related to
the regulation of cannabis under this act.
(iii) Specific programs implemented and progress, if
any, made by the board in achieving the goals of social
and economic equity and other social justice goals,
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including, but not limited to, restorative justice and
ensuring inclusion and participation by diverse
businesses and disadvantaged small businesses,
disadvantaged farmer-owned small businesses and service-
disabled-veteran-owned and veteran-owned small
businesses.
(iv) Demographic data on owners and employees in the
cannabis industry.
(v) Impacts to public health and safety, including
substance use disorder.
(vi) Impacts associated with public safety,
including, but not limited to, traffic-related issues,
law enforcement, underage prevention in relation to
accessing cannabis and cannabis products and efforts to
eliminate illicit cannabis and the market for illicit
cannabis and cannabis products in this Commonwealth.
(vii) Any other information or data deemed
significant.
(20) The following apply:
(i) The board may biennially make a report of
recommendations regarding the appropriate level of
taxation of cannabis and cannabis products, as well as
changes necessary to:
(A) promote and encourage inclusion and
participation by social and economic equity
applicants; and
(B) improve and protect the public health and
safety of the residents of this Commonwealth to
improve access and availability for substance use
disorder treatment programs.
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(ii) The initial report shall be submitted to the
Governor, the Majority Leader of the Senate, the Minority
Leader of the Senate, the Speaker of the House of
Representatives and the Minority Leader of the House of
Representatives no later than January 1, 2023, and
biennially thereafter.
(21) Consult with the department, the Department of
Agriculture, the Office of Attorney General, the Department
of Health, any other board, agency, commission or office of
the Commonwealth, representatives of the cannabis industry or
other persons the board deems necessary with respect to the
various aspects of the powers and duties of the board and the
regulation and control of cannabis under this act.
(22) Enter into contracts for the purposes of carrying
out the powers and duties of the board under this act.
(23) Investigate, through the bureau, any suspected or
actual violation of this act by a licensee, permittee or
other person authorized to engage in a regulated activity
under this act.
(24) Limit or prohibit, at the time of a declaration of
disaster emergency or other public health emergency or
natural disaster and without previous notice or
advertisement, the cultivation, processing, distribution,
storage, transportation, delivery or sale of any or all
cannabis and cannabis products for the period of an emergency
declaration.
(25) Hold hearings, subpoena witnesses, compel
attendance of witnesses, administer oaths and examine a
person under oath and to require the production of books or
records relative to the hearing or inquiry. A subpoena issued
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under this section shall be governed by the applicable
provisions of 42 Pa.C.S. (relating to judiciary and judicial
procedure).
(26) Inspect or provide authorization for the inspection
at any time of any cannabis establishment where cannabis or
cannabis products are cultivated, processed, stored,
transported, tested, distributed, sold or offered for sale.
(27) Enter into memoranda of understanding or agreements
with the Department of Agriculture, Department of Health,
Pennsylvania State Police or any other Commonwealth agency as
deemed appropriate to effectuate the policy and purposes of
this act.
(28) Assist in the prosecution of violations of this act
and other laws of this Commonwealth related to the legal
possession or sale of cannabis and cannabis products and to
cooperate with the prosecution of a violation of this act and
other laws.
(29) In addition to any fees established under this act,
establish fees that are reasonably calculated not to exceed
the cost of the activity for which the fee is imposed.
(30) Except as provided under this act, adopt
regulations prohibiting advertisements by cannabis entity
licensees that:
(i) depict cannabis and cannabis products in a
manner that is appealing to minors;
(ii) promote excessive use;
(iii) promote illegal activity; or
(iv) otherwise present a significant risk to public
health and safety.
(31) Establish the circumstances under which the board
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may purchase, seize, possess and dispose of cannabis and
cannabis products. The board may purchase, possess, seize or
dispose of cannabis and cannabis products as may be necessary
to ensure compliance with and the enforcement of this act.
(32) Provide for the development and use of a seed-to-
sale cannabis tracking system, which shall include a secure
application program interface capable of accessing all data
required to be transmitted to the board to ensure compliance
with the operational reporting requirements established under
this act and regulations of the board.
(33) Ensure that the seed-to-sale tracking system
utilizes a unique plant identification and unique batch
identification. Any secondary system used by a cannabis
entity licensee shall be configured to integrate with the
seed-to-sale tracking system of record in a form and manner
approved by the board.
(34) Ensure that the seed-to-sale tracking system is
configured to track the transfer of cannabis and cannabis
products between licensed cannabis entities. The tracking
system must be configured to include, but not be limited to,
procedures to:
(i) Prevent the diversion of cannabis and cannabis
products to criminal enterprises, gangs, cartels and
other states or jurisdictions.
(ii) Prevent persons from substituting,
adulterating, contaminating or tampering with cannabis
and cannabis products.
(iii) Ensure an accurate accounting of the
cultivation, processing and sale of cannabis and cannabis
products.
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(iv) Assist the department with ensuring that taxes
imposed under this act are collected and distributed as
provided under this act.
(v) Ensure that cannabis and cannabis products
undergo laboratory testing by a cannabis testing
laboratory and that test results are accurately reported
to the cannabis entity licensee that provided the sample
for testing.
(vi) Ensure compliance with the rules and
regulations adopted under this act.
(vii) Be capable of tracking, at a minimum:
(A) The propagation of immature cannabis plants
and the cultivation of cannabis by a cannabis
cultivator.
(B) The processing of cannabis and cannabis
products by a cannabis processor.
(C) The sale of cannabis and cannabis products
by a cannabis retailer to a cannabis consumer.
(D) The purchase and sale of cannabis and
cannabis products between cannabis entity licensees.
(E) The transfer or delivery of cannabis and
cannabis products between licensed cannabis entities
and licensed cannabis establishments.
(F) Licensees, employees and other persons
involved with cannabis and cannabis products.
(G) The amount of taxes imposed upon the retail
sale of cannabis and cannabis products.
(H) Any other information that the board
determines necessary to administer and enforce this
paragraph.
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(35) The following apply:
(i) Require each cannabis entity licensee to develop
and implement a workplace safety plan designed to inform
and prepare employees on how to respond during a fire,
accident or other emergency and to submit the specifics
of the plan to the board.
(ii) The plan may include a workplace first aid
training program, a fire safety plan, including periodic
fire drills, evacuation procedures and access
requirements for members of first responder
organizations.
(iii) Notwithstanding any other provision of this
act, employees and members of first responder
organizations may enter a cannabis establishment to
conduct fire drills and advise licensees and employees on
fire safety and effective evacuation procedures.
(iv) In developing a fire safety plan, a cannabis
entity licensee may adopt the guidance developed by the
National Fire Protection Association to govern marijuana
growing, processing and extraction facilities.
Section 306. Additional regulatory authority.
(a) Rules and regulations.--In addition to the board's
regulatory authority under section 305 and other provisions of
this act, the board shall adopt and promulgate regulations that
specify:
(1) The qualifications and selection criteria for
licensing, permitting, registration, certification or other
authorization to engage in a regulated activity under this
act.
(2) The books and records to be created and maintained
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by cannabis entity licensees, including the reports to be
made to the board, and the inspection of any and all books
and records maintained by each licensed cannabis entity,
including the books and records that must be maintained for
inspection on the premises of the cannabis entity's cannabis
establishment.
(3) The methods of cultivating or producing, processing
and packaging of cannabis and cannabis products, including
concentrated cannabis.
(4) The conditions of sanitation and sanitation
standards, including, but not limited to, the standards of
ingredients and quality and identity of cannabis cultivated,
processed, packaged, distributed, stored, sold or offered for
sale by cannabis entity licensees in this Commonwealth. The
board shall consult with the Department of Agriculture in
adopting sanitation standards and may incorporate any
standards or requirements adopted by the Department of
Agriculture to govern food safety, including the misbranding
and adulteration of food under 3 Pa.C.S. (relating to
agriculture).
(5) The security and surveillance standards for cannabis
establishments and safety and security protocols for
employees, cannabis consumers and other persons patronizing a
cannabis establishment.
(6) Hearing procedures and additional causes consistent
with the provisions of this act for the suspension or
revocation of a license, permit or other authorization to
engage in a regulated activity under this act.
(7) Procedures to prevent the sale and distribution of
cannabis and cannabis product to individuals under 21 years
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of age, including the modification of tobacco vaping products
for use with cannabis or cannabis products.
(8) Procedures to prevent the diversion of revenue from
the sale of cannabis and cannabis products to criminal
enterprises.
(9) Provisions to prevent the diversion of cannabis and
cannabis products from this Commonwealth to other states.
(10) In consultation with the Attorney General,
procedures to prevent cannabis and cannabis products that are
legal in this Commonwealth from being used as a cover or
pretext for the trafficking of other illegal controlled
substances or other illegal activity.
(11) In consultation with the Department of
Transportation, provisions to inform the public about drugged
driving and driving while impaired and the possible
exacerbation of other adverse public health consequences
associated with the use of cannabis and cannabis products.
(12) Requirements to prevent the cultivation of cannabis
on public lands.
(13) Provisions to inform the public about the
prohibition on the possession and use of cannabis and
cannabis products on land or property owned by the United
States.
(14) In consultation with the Department of Agriculture
and the Department of Environmental Protection, provisions to
govern the cultivation of cannabis, including water, electric
and energy usage and disposal and recycling methods,
restrictions on the use of fertilizers, pesticides and
herbicides and best practices for water and energy
conservation.
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(15) In consultation with the Department of Agriculture,
standards to govern the designation and labeling of cannabis
as being natural or a naturally cultivated agricultural crop.
(b) Employee identification cards.--The following apply:
(1) The board shall adopt and promulgate regulations to
require each cannabis entity licensee, permittee or other
person issued a license, permit or authorization to engage in
a regulated activity under this act to furnish identification
cards to the employees, contractors or subcontractors of the
licensee, permittee or other person. The board shall adopt a
standardize format for employee identification cards to
include:
(i) The name and license number of the cannabis
entity licensee, permittee or other person authorized to
engage in a regulated activity under this act employing
or contracting with the person.
(ii) The name of the cardholder.
(iii) The date of issuance and expiration.
(iv) A random 10-digit alphanumeric identification
number containing at least four numbers and at least four
letters which shall be unique to the individual issued
the identification card.
(v) A photograph of the cardholder.
(vi) A statement that the unauthorized use or
possession of an identification card could subject a
person to criminal prosecution.
(2) The regulations shall require that an employee,
contractor or subcontractor issued an identification card
under this subsection:
(i) Keep the identification card visible at all
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times when on the premises of a cannabis entity's
cannabis establishment or the premises of a permittee or
other person authorized to engage in a regulated activity
under this act.
(ii) Immediately report a lost or stolen
identification card to the cannabis entity licensee,
permittee or other person engaged in a regulated activity
under this act that issued the card to the employee,
contractor or subcontractor. The cannabis entity
licensee, permittee or other person shall, within 24
hours of notification of a lost or stolen identification
card, report the lost or stolen identification card to
the board and the Pennsylvania State Police.
(iii) Immediately return the identification card to
the cannabis entity licensee, permittee or other person
that employs the employee, contractor or subcontractor
upon termination of employment or performance of the
contract.
(iv) Restrict the use of identification cards to
work purposes only. A cannabis employee identification
card may not be used outside the premises of a cannabis
establishment to confirm the identity of the
identification cardholder.
Section 307. Temporary regulations.
(a) Promulgation.--In order to facilitate the prompt
implementation of this act, regulations promulgated by the board
shall be deemed temporary regulations which shall expire no
later than three years following the effective date of this
section. The board may promulgate temporary regulations, which
shall not be subject to:
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(1) Sections 201, 202 and 203 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.
(b) Expiration.--The authority provided to the board to
adopt temporary regulations under subsection (a) shall expire
three years after the effective date of this subsection.
Regulations adopted after the three-year period under subsection
(a) shall be adopted and promulgated as provided by law.
Section 308. Cannabis entity application appeals from board.
The Supreme Court shall be vested with exclusive appellate
jurisdiction to consider appeals of a final order, determination
or decision of the board involving the approval, issuance,
denial or conditioning of a cannabis entity license.
Notwithstanding 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial
review of Commonwealth agency action) and 42 Pa.C.S. § 763
(relating to direct appeals from government agencies), the
Supreme Court shall affirm all final orders, determinations or
decisions of the board involving the approval, issuance, denial
or conditioning of a cannabis entity license, unless the Court
finds that the board committed an error of law or that the
order, determination or decision of the board was arbitrary and
there was a capricious disregard of the evidence.
Section 309. Hearing process.
The board's consideration and resolution of all issues
relating to licenses, permits or other authorizations to engage
in a regulated activity under this act shall be conducted under
2 Pa.C.S. (relating to administrative law and procedure) or with
procedures adopted by order of the board. Notwithstanding the
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requirements of 2 Pa.C.S. §§ 504 (relating to hearing and
record) and 505 (relating to evidence and cross-examination) as
those provisions relate to the conduct of oral hearings, the
board may adopt procedures to provide parties before the board
with a documentary hearing. The board may resolve disputed
material facts without conducting an oral hearing where
constitutionally permissible.
Section 310. Board minutes and records.
(a) Record of proceedings.--The board shall cause to be made
and kept a record of all proceedings held at public meetings of
the board. The verbatim transcript of board proceedings shall be
the property of the board and shall be prepared by the board
upon the request of a board member or other person and the
payment by that person of the costs of preparation, which costs
shall be specified by the board by regulation.
(b) Applicant information.--The following apply:
(1) The board shall maintain a list of all applicants
for licenses, permits and other authorizations to engage in a
regulated activity under this act. The list shall include a
record of all actions taken with respect to each applicant.
The list shall be open to public inspection during the normal
business hours of the board.
(2) Information under paragraph (1) regarding an
applicant whose license, permit, certification or other
authorization has been denied, revoked or not renewed shall
be removed from the list after seven years from the date of
the action.
(c) Other files and records.--The board shall maintain
other files and records as the board determines necessary and
appropriate to administer and enforce this act.
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(d) Confidentiality of information.--The following apply:
(1) The following information submitted by an applicant,
licensee, permittee or other person engaged in a regulated
activity under this act or obtained by the board or the
bureau as part of a background investigation or other
investigation or inquiry from any source shall be
confidential and withheld from public disclosure:
(i) All information relating to character, honesty
and integrity, including family, habits, reputation,
history of criminal activity, business activities,
financial affairs and business, and professional and
personal associations submitted to or otherwise obtained
by the board or the bureau.
(ii) Nonpublic personal information, including home
addresses, telephone numbers and other personal contact
information, Social Security numbers, educational
records, memberships, medical records, tax returns and
declarations, actual or proposed compensation, financial
account records, creditworthiness or financial condition
relating to an applicant, licensee, permittee or other
person engaged in a regulated activity under this act or
the immediate family of the applicant, licensee,
permittee or other person.
(iii) Information relating to proprietary
cultivation information, cultivation or processing
methods, trade secrets, patents or exclusive licenses,
architectural and engineering plans and information
relating to competitive marketing materials and
strategies, which may include customer-identifying
information.
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(iv) Security and surveillance information or plans,
including risk prevention plans, detection and
countermeasures, location of cultivation or processing
restricted access areas, information technology
facilities or redundancy technology facilities, emergency
management plans, safety protocols and theft and fraud
prevention plans and countermeasures.
(v) Information with respect to which there is a
reasonable possibility that public release or inspection
of the information would constitute an unwarranted
invasion into personal privacy of an individual as
determined by the board.
(vi) Financial information deemed confidential by
the board upon a showing of good cause by the applicant,
licensee or other person.
(2) A claim of confidentiality may not be made regarding
criminal history record information that is available to the
public under 18 Pa.C.S. § 9121(b) (relating to general
regulations).
(3) A claim of confidentiality may not be made regarding
a record in possession of the board that is otherwise
publicly available from a Commonwealth agency, local agency
or another jurisdiction or is subject to disclosure under the
act of February 14, 2008 (P.L.6, No.3), known as the Right-
to-Know Law.
(4) The following apply:
(i) Except as provided in this act and under
subparagraph (ii), information made confidential under
this section shall be withheld from public disclosure in
whole or in part.
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(ii) Confidential information shall be released upon
order of a court of competent jurisdiction or to the
Attorney General and may be released to the public, in
whole or in part, to the extent that the release is
requested by an applicant, licensee, permittee or other
person engaged in a regulated activity under this act and
does not otherwise contain confidential information about
another person.
(5) The board may seek a voluntary waiver of
confidentiality from an applicant, licensee, permittee or
other person engaged in a regulated activity under this act
but may not require an applicant, licensee, permittee or
other person to waive any confidentiality provided for in
this subsection as a condition for the approval of an
application or the issuance or renewal of a license or permit
or any other authorization or action of the board.
(6) The following apply:
(i) A current or former member and a current or
former employee, agent, independent contractor or
employee of an independent contractor of the board, the
department, the Department of Agriculture, the Office of
Attorney General or any other Commonwealth agency or
office who has obtained confidential information in the
performance of duties under this act may not
intentionally and publicly disclose the information to
any person, knowing that the information being disclosed
is confidential under this subsection, unless the person
to whom the information is disclosed is authorized by law
to receive the information.
(ii) A violation of this subsection constitutes a
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