Regular Session 2021-2022 Senate Bill 0473 P.N. 1148

PRINTER'S NO. 1148

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

473

Session of

2021

INTRODUCED BY LAUGHLIN, STREET, BOSCOLA, KANE, KEARNEY, SCHWANK

AND COMITTA, OCTOBER 18, 2021

REFERRED TO LAW AND JUSTICE, OCTOBER 18, 2021

AN ACT

Amending Titles 35 (Health and Safety) and 75 (Vehicles) of the

Pennsylvania Consolidated Statutes, providing for adult use

cannabis, for medical marijuana, for lawful use and authority

and for personal use of cannabis, establishing the Cannabis

Regulatory Control Board, providing for regulation of

cannabis business establishment, for advertising, marketing,

packaging and labeling, for taxes and for cannabis clean

slate; and, in driving after imbibing alcohol or utilizing

drugs, further providing for driving under influence of

alcohol or controlled substance and for authorized use not a

defense.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Title 35 of the Pennsylvania Consolidated

Statutes is amended by adding a part to read:

PART VII

CANNABIS

Chapter

92. Adult Use

94. Medical Marijuana

CHAPTER 92

ADULT USE

Subchapter

A. Preliminary Provisions

B. Lawful Use and Authority

C. Personal Use of Cannabis

D. Cannabis Regulatory Control Board

E. Social and Economic Equity

F. Regulation of Cannabis Business Establishment

G. Enforcement and Immunities

H. Laboratory Testing

I. Advertising, Marketing, Packaging and Labeling

J. General Provisions

K. Taxes

L. Cannabis Clean Slate

M. Miscellaneous Provisions

SUBCHAPTER A

PRELIMINARY PROVISIONS

Sec.

9201. Scope of chapter.

9202. Definitions.

§ 9201. Scope of chapter.

This chapter relates to the adult use of marijuana in this

Commonwealth.

§ 9202. Definitions.

The following words and phrases when used in this chapter

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

context clearly indicates otherwise:

"Adult use cultivation center." A facility operated by an

organization or business that is permitted by the board to

cultivate, process, transport and perform other necessary

activities to provide cannabis and cannabis-infused products to

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cannabis business establishments.

"Adult use cultivation center permit." A permit issued by

the board that permits an entity to act as a cultivation and

processing center under this chapter or any regulation

promulgated in accordance with this chapter and may also offer

home delivery services where cannabis and cannabis-infused

products, with board approval, are delivered directly to a

customer or patient.

"Adult use dispensary." A dispensary licensed under this

chapter.

"Adult use dispensing organization." A facility operated by

an organization or business that is permitted by the board to

acquire cannabis from a cultivation center or other dispensary

for the purpose of selling or dispensing cannabis, cannabis

concentrates, cannabis-infused products, cannabis seeds,

paraphernalia or related supplies under this chapter to

purchasers or to qualified registered medical cannabis patients

and caregivers. The term includes a registered dispensary as

defined under Chapter 94 (relating to medical marijuana) that

has obtained an adult use dispensing organization permit.

"Adult use dispensing organization permit." A permit issued

by the board that permits a person to act as an adult use

dispensing organization under this chapter or any regulation

promulgated in accordance with this chapter.

"Advertise." To engage in promotional activities, including

newspaper, radio, Internet and electronic media and television

advertising. The term includes the distribution of fliers and

circulars, billboard advertising and the display of window

signs. The term does not include exterior signage displaying

only the name of the permitted cannabis business establishment.

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"Agent." A principal officer, board member, employee or

other agent of a cannabis business establishment who is 21 years

of age or older.

"Applicant." An individual or entity applying for a permit

under this chapter.

"Appointing power." A person holding one of the five

positions entitled to appoint a board member.

"Board." The Cannabis Regulatory Control Board established

under Subchapter D (relating to Cannabis Regulatory Control

Board).

"Cannabis." Marijuana, hashish and other substances that are

identified as including any parts of the plant Cannabis sativa

and including derivatives or subspecies, such as indica, of all

strains of cannabis, whether growing or not, including the

seeds, resin extracted from any part of the plant and any

compound, manufacture, salt, derivative, mixture or preparation

of the plant. The term includes tetrahydrocannabinol (THC) and

all other naturally produced cannabinol derivatives, whether

produced directly or indirectly by extraction, including any

structural, optical or geometric isomers of

tetrahydrocannabinol, cannabis flower, concentrate and cannabis-

infused products. The term does not include the mature stalks of

the plant, fiber produced from the stalks, oil or cake made from

the seeds of the plant, any other compound, manufacture, salt,

derivative, mixture or preparation of the mature stalks, the

sterilized seed of the plant that is incapable of germination or

industrial hemp as defined in 3 Pa.C.S. § 702 (relating to

definitions).

"Cannabis Business Development Fund." The fund established

under section 9227 (relating to Cannabis Business Development

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Fund).

"Cannabis business establishment." An individual or entity

holding a permit issued by the board to cultivate, process,

dispense, infuse or transport cannabis, including adult use

dispensing organizations, adult use cultivation centers and

social and economic equity dispensing organization charter

permit holders .

"Cannabis business establishment agent identification card."

An identification card held by an authorized agent of an adult

use dispensing organization, a social and economic equity

dispensing organization charter permit holder, a micro

cultivation center or an adult use cultivation center.

"Cannabis concentrate." A product derived from cannabis that

is produced by extracting cannabinoids, including

tetrahydrocannabinol (THC), from the plant through the use of

propylene glycol, glycerin, butter, olive oil or other typical

cooking fats, water, ice, dry ice, butane, propane, CO2, ethanol

or isopropanol with the intended use of smoking, vaping or

making a cannabis-infused product. The term includes a product

derived from cannabis that is produced by means of heat and

pressure or mechanical separations.

"Cannabis container." A sealed, resealable, child-resistant

and traceable container or package used for the purpose of

containment of cannabis, cannabis concentrate or a cannabis-

infused product during transportation.

"Cannabis flower." Marijuana, hashish and other substances

identified as including any parts of the plant Cannabis sativa

and including derivatives or subspecies, such as indica, of all

strains of cannabis, including raw kief, leaves and buds. The

term does not include resin that has been extracted from any

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part of the plant or any compound, manufacture, salt,

derivative, mixture or preparation of the plant, the plant's

seeds or resin.

"Cannabis-infused product." A beverage, food, oil, ointment,

tincture, topical formulation or another product containing

cannabis or cannabis concentrate that is not intended to be

smoked or otherwise inhaled. The term includes edibles.

"Cannabis paraphernalia." Equipment, products or materials

intended to be used for planting, propagating, cultivating,

growing, harvesting, manufacturing, producing, processing,

preparing, testing, analyzing, packaging, repackaging, storing,

containing, concealing, ingesting or otherwise introducing

cannabis into the human body.

"Cannabis plant monitoring system" or "plant monitoring

system." A system that includes testing and data collection

established and maintained by the cultivation center or craft

grower and that is available to the Department of Revenue, the

board and the Pennsylvania State Police 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 a customer from seed planting to final

packaging.

"Cannabis Regulation Fund." The fund established under

section 9287 (relating to Cannabis Regulation Fund and

distribution of taxes).

"Cannabis testing facility." An entity registered by the

board to test cannabis for potency and contaminants.

"Charter agent identification card." A document issued by

the social and economic equity dispensing charter permittee that

identifies an individual as a social and economic equity

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dispensing charter agent.

"Charter agreement." An agreement between a social and

economic equity applicant and an adult use dispensing

organization in which the adult use dispensing organization

agrees to provide financial, mentorship, training, operational

and other support to the social and economic equity applicant.

"Clone." A plant section from a female cannabis plant not

yet rootbound, growing in a water solution or other propagation

matrix, that can develop into a new plant.

"Controlled substance." The term shall not include cannabis

or cannabis products as defined in this chapter or Chapter 94.

"Cultivation center agent." A principal officer, board

member, employee or other agent of a cultivation center who is

21 years of age or older.

"Cultivation center agent identification card." A document

authorized by the board that identifies a person as a

cultivation center agent.

"Curbside." The transfer or dispensing of cannabis or a

cannabis product by an employee of a cannabis business

establishment to a vehicle located in the parking area or to an

individual at the entrance of the facility.

"Dispensary." A facility operated by an adult use dispensing

organization under this chapter.

"Dispensing organization agent." A principal officer,

employee or agent of an adult use dispensing organization who is

21 years of age or older.

"Dispensing organization agent identification card." A

document authorized by the board that identifies a person as an

adult use dispensing organization agent.

"Disproportionately impacted area." A census tract that

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satisfies criteria as determined by the board and that meets at

least one of the following criteria:

(1) the area has a poverty rate of at least 20%

according to the latest Federal decennial census;

(2) 75% or more of the children in the area participate

in the Federal free lunch program according to reported

statistics from the State Board of Education;

(3) at least 20% of the households in the area receive

assistance under the Supplemental Nutrition Assistance

Program; or

(4) 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

determined by the United States Department of Labor, for a

period of at least 12 consecutive calendar months preceding

the date of the application and has high rates of arrest,

conviction and incarceration related to the sale, possession,

use, cultivation, manufacture or transport of cannabis.

"Edibles." Includes a cannabis-infused product intended for

human consumption by oral ingestion, in whole or part, including

products dissolved in the mouth.

"Enclosed locked facility." A room, greenhouse, building or

other enclosed area equipped with locks or other security

devices that permit access only to cannabis business

establishment agents working for the permitted cannabis business

establishment or acting under this chapter to cultivate,

process, store or distribute cannabis.

"Enclosed locked space." Space within a facility, building

or other enclosed area equipped with locks or other security

devices that permit access only to authorized individuals under

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this chapter.

"Financial institution." A bank, national banking

association, bank and trust company, trust company, savings and

loan association, building and loan association, mutual savings

bank, credit union or savings bank.

"Flowering stage." The stage of cultivation where and when a

cannabis plant is cultivated to produce plant material for a

cannabis product. The term includes mature plants as follows:

(1) if more than two stigmas are visible at each

internode of the plant; or

(2) if the cannabis plant is in an area that has been

intentionally deprived of light for a period of time intended

to produce flower buds and induce maturation, from the moment

the light deprivation began through the remainder of the

cannabis plant growth cycle.

"Individual." A natural person.

"Limited access area." A room or other area under the

control of an adult use dispensing organization where cannabis

sales occur with access limited to individuals who are 21 years

of age or older, purchasers, adult use dispensing organization

owners, other dispensing organization agents, service

professionals conducting business with the dispensing

organization, registered patients and caregivers or other

individuals as provided by rule.

"Medical marijuana dispensary permit." The term shall have

the same meaning as "permit" under section 9403 (relating to

definitions).

"Medical marijuana grower/processor." The term shall have

the same meaning as "grower/processor" under section 9403.

"Medical marijuana organization." As defined under section

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9403.

"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, prior to the effective date of

this chapter, was arrested for, convicted of or adjudicated

delinquent for any offense that is eligible for expungement

under this chapter.

"Micro cultivation center." A facility operated by an

individual or entity that is permitted to cultivate, dry, cure

and package cannabis and perform other necessary activities to

make cannabis available for sale at an adult use dispensing

organization.

"Micro cultivation center agent." A principal officer, board

member, employee or other agent of a craft grower who is 21

years of age or older.

"Micro cultivation center permit." An authorization issued

by the board to an individual or entity to conduct activities of

a micro cultivation center under this chapter.

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

(relating to diverse business participation).

"Mother plant." A cannabis plant that is cultivated or

maintained for the purpose of generating clones and that will

not be used to produce plant material for sale to a cannabis

business establishment.

"Ordinary public view." Within the sight line with normal

visual range of a person, unassisted by visual aids, from a

public street or sidewalk adjacent to real property or from

within an adjacent property.

"Ownership and control." Ownership of at least 51% of the

business, including corporate stock if a corporation, and

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control over the management and day-to-day operations of the

business and an interest in the capital, assets, profits and

losses of the business proportionate to percentage of ownership.

"Patient." As defined in section 9403.

"Permit." An authorization issued by the board to a cannabis

business establishment to conduct activities under this chapter.

"Permittee." An individual or entity granted a permit under

this chapter.

"Person." An individual, firm, partnership, association,

joint stock company, joint venture, public or private

corporation, limited liability company or a receiver, executor,

trustee, guardian or other representative appointed by order of

any court.

"Possession limit." The amount of cannabis that may be

possessed at any one time by an individual 21 years of age or

older or who is a registered patient or caregiver under Chapter

94.

"Primary residence." A dwelling where a person usually stays

or stays more often than other locations as determined by

presence, tax filings, drivers license or permit address, voter

registration or other State issued identification card. The term

may not include more than one dwelling address.

"Principal officer." Includes a cannabis business

establishment applicant or permitted cannabis business

establishment's board member, owner with more than 1% interest

of the total cannabis business establishment or more than 5%

interest of the total cannabis business establishment of a

publicly traded company, president, vice president, secretary,

treasurer, partner, officer, member, manager member or person

with a profit sharing, financial interest or revenue sharing

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arrangement. The term includes a person with authority to

control the cannabis business establishment and a person who

assumes responsibility for the debts of the cannabis business

establishment.

"Purchaser." An individual 21 years of age or older who

acquires cannabis for consideration. The term does not include a

cardholder as used under C hapter 94.

"Remediation." The reprocessing of a manufactured cannabis

product batch that has failed laboratory testing or the

processing of a harvest batch that has failed any laboratory

test.

"Resided." The location of an individual's primary residence

within the relevant geographic area as established by two of the

following:

(1) a signed lease agreement that includes the

applicant's name;

(2) a property deed that includes the applicant's name;

(3) school records;

(4) a voter registration card;

(5) a Pennsylvania driver's permit, a State

identification card or a Pennsylvania Person with a

Disability Identification Placard;

(6) a paycheck stub;

(7) a utility bill;

(8) tax records; or

(9) any other proof of residency or other information

necessary to establish residence as provided by rule.

"Restricted access area." An area of a licensed cannabis

business establishment where only cannabis business

establishment agents are permitted, with limited exceptions.

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"Smoking." The inhalation of smoke caused by the combustion

of cannabis. The smoking of cannabis shall be permitted anywhere

cigarette smoking is permitted, including under the act of June

13, 2008 (P.L.182, No.27), known as the Clean Indoor Air Act.

"Social and economic equity applicant." An applicant that is

a resident of this Commonwealth and meets one of the following

criteria:

(1) has at least 75% ownership and control of cannabis

business establishment by one or more individuals who have

resided for at least 5 of the preceding 10 years in a

disproportionately impacted area; or

(2) has at least 75% ownership and control of a cannabis

business establishment by one or more individuals who:

(i) have been arrested for, convicted of or

adjudicated delinquent for any offense that is eligible

for expungement under this chapter; or

(ii) is a member of an impacted family.

(3) holds no more than a 5% ownership interest in a

cannabis business establishment claiming status as a social

and economic equity applicant under this chapter and does not

individually meet the qualifications under paragraph (1) or

(2). The applicant under this paragraph may not generate an

annual income of more than $75,000 or have financial assets

exceeding $250,000.

"Social and economic equity dispensing organization charter

agent." A principal officer, employee or agent of a social and

economic equity dispensing organization permittee who is 21

years of age or older.

"Social and economic equity dispensing organization charter

permit." An adult use dispensing organization permit issued to

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a social and economic equity applicant that has entered into a

charter agreement with an adult use dispensing organization to

provide financial, mentorship, training and other support to the

social and economic equity applicant.

"Tincture." A cannabis-infused solution, typically comprised

of alcohol, glycerin or vegetable oils derived either directly

from the cannabis plant or from a processed cannabis extract.

The term does not include an alcoholic liquor as used in the act

of April 12, 1951 (P.L.90, No.21), known as the Liquor Code. The

term shall include a calibrated dropper or other similar device

capable of accurately measuring servings.

"Unit of local government." Any county, city, municipality,

borough, township or incorporated town.

"Vegetative stage." The stage of cultivation in which a

cannabis plant is propagated to produce additional cannabis

plants or reach a sufficient size for production. The term

includes seedlings, clones, mother plants, other immature

cannabis plants and the following:

(1) A cannabis plant that has no more than two stigmas

visible at each internode of the cannabis plant if the

cannabis plant is in an area that has not been intentionally

deprived of light for a period of time intended to produce

flower buds and induce maturation.

(2) A cannabis plant that is cultivated solely for the

purpose of propagating clones and is never used to produce

cannabis.

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

9601 (relating to definitions).

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

SUBCHAPTER B

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LAWFUL USE AND AUTHORITY

Sec.

9205. Lawful use.

9206. Sharing of authority.

9207. Background checks.

§ 9205. Lawful use.

Notwithstanding any provision of law to the contrary, use or

possession of cannabis as set forth in this chapter is lawful in

this Commonwealth.

§ 9206. Sharing of authority.

Notwithstanding any provision of law to the contrary, any

authority granted to any Commonwealth agency or Commonwealth

employee or appointee under C hapter 94 (relating to medical

marijuana) shall be shared by any Commonwealth agency or

employee or appointee given authority to permit, discipline,

revoke, regulate or make rules under this chapter.

§ 9207. Background checks.

(a) Criminal history record check.--The board shall, through

the Pennsylvania State Police, conduct a criminal history record

check of the prospective principal officers, board members and

agents of a cannabis business establishment applying for a

permit or cannabis business establishment agent identification

card under this chapter. The Pennsylvania State Police shall

furnish, pursuant to positive identification, all Pennsylvania

conviction information and shall forward the national criminal

history record information to the board. After the effective

date of this section, any principal officer, board member or

agent of a cannabis business establishment who is convicted of

diverting cannabis or cannabis products or who intentionally

dispenses cannabis or cannabis products in a manner not

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consistent with this chapter shall be deemed to have failed the

criminal history record check under this subsection and may not

be licensed or permitted or otherwise be employed by a cannabis

business establishment in this Commonwealth.

(b) Fingerprinting.--Each cannabis business establishment

prospective principal officer, board member or agent shall

submit fingerprints to the Pennsylvania State Police in the form

and manner prescribed by the Pennsylvania State Police. Unless

otherwise provided by law, the fingerprints under this

subsection shall be transmitted through a live scan fingerprint

vendor permitted by the Commonwealth and checked against the

fingerprint records now and hereafter filed in the Pennsylvania

State Police and Federal Bureau of Investigation criminal

history records databases.

for conducting the criminal history record check which shall not

exceed the actual cost of the Commonwealth and national criminal

history record check.

(d) Submission and initial employment.--When applying for

the initial permit or identification card, the background checks

for all prospective principal officers, board members and agents

shall be completed before submitting the application to the

licensing or issuing agency. An agent may begin working at a

cannabis business establishment while waiting for the result of

any background check. Nothing in this section or act shall be

construed to prevent or otherwise inhibit the ability of an

otherwise qualified individual from serving as a principal

officer, board member or agent of a cannabis business

establishment on the sole basis of a nonviolent criminal

conviction related to cannabis.

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SUBCHAPTER C

PERSONAL USE OF CANNABIS

Sec.

9210. Personal use of cannabis, restrictions on cultivation and

penalties.

9211. Possession limit.

9212. Persons under 21 years of age.

9213. Identification, false identification and penalty.

9214. Immunities and presumptions related to the use of

cannabis by purchasers.

9215. Discrimination prohibited.

9216. Limitations and penalties.

9217. Employment and employer liability.

§ 9210. Personal use of cannabis, restrictions on cultivation

and penalties.

(a) Decriminalization.--Beginning on the effective date of

this section, notwithstanding any other provision of law and

except as otherwise provided in this chapter, the following acts

are not a violation of this chapter and shall not be a criminal

or civil offense under Commonwealth law or the ordinances of any

unit of local government of this Commonwealth or be a basis for

seizure or forfeiture of assets under the laws of this

Commonwealth for individuals other than individuals under 21

years of age unless that individual, and their caregiver, if

applicable, is authorized under Chapter 94 (relating to medical

marijuana):

(1) possessing, consuming, using, purchasing, obtaining

or transporting cannabis paraphernalia or an amount of

cannabis purchased or produced for personal use that does not

exceed the possession limit or requirements of this chapter;

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(2) transferring, with or without remuneration, up to

one ounce of cannabis to an individual 21 years of age or

older;

(3) cultivation of cannabis for personal use in

accordance with the requirements of this chapter;

(4) controlling property if actions that are authorized

by this chapter occur on the property in accordance with this

chapter; and

(5) smoking or vaporization of cannabis concentrate

anywhere smoking is permitted, including permitted areas

under the act of June 13, 2008 (P.L.182, No.27), known as the

Clean Indoor Air Act.

(b) Limitations.--Cultivating cannabis for personal use

shall be subject to the following limitations:

(1) A resident of this Commonwealth 21 years of age or

older who is a registered patient under Chapter 94 may

cultivate cannabis plants, with a limit of five plants that

are more than five inches tall, without a cultivation center

license. The plant limitation set forth in this paragraph

shall be cumulative for households in which more than one

registered patient resides. As used in this paragraph, the

term "resident" means an individual who has been domiciled in

this Commonwealth for a period of 30 days prior to

cultivation.

(2) Cannabis cultivation must take place in an enclosed,

locked space.

(3) Adult registered patients may purchase cannabis

seeds from a dispensary for the purpose of home cultivation.

Seeds may not be given or sold to any other person.

(4) Cannabis plants shall not be stored or placed in a

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location where they are subject to ordinary public view. A

registered patient who cultivates cannabis under this section

shall take reasonable precautions to ensure the plants are

secure from unauthorized access, including unauthorized

access by an individual under 21 years of age.

(5) Cannabis cultivation may occur only on residential

property lawfully in possession of the cultivator or with the

consent of the person in lawful possession of the property.

An owner or lessor of residential property may prohibit the

cultivation of cannabis by a lessee.

(6) Cannabis plants may only be tended by registered

patients who reside at the residence or their authorized

agent attending to the residence for brief periods.

(7) A registered patient who cultivates more than the

allowable number of cannabis plants, or who sells or gives

away cannabis plants, cannabis or cannabis-infused products

produced under this section, is liable for penalties as

provided by law in addition to loss of home cultivation

privileges as established by rule by the board.

(8) Cannabis cultivated under this section shall not be

subject to the possession limits under section 9211 (relating

to possession limit).

§ 9211. Possession limit.

(a) Limits.--Except as otherwise authorized under this

chapter, for an individual who is 21 years of age or older, the

possession limits for cannabis are as follows and shall be

cumulative:

(1) thirty grams of cannabis flower;

(2) no more than 500 milligrams of THC contained in

cannabis-infused products;

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(3) five grams of cannabis concentrate; and

(4) for a resident of this Commonwealth 21 years of age

or older who is registered as a patient under Chapter 94

(relating to medical marijuana), any cannabis produced by

cannabis plants grown, provided any amount of cannabis

produced in excess of 30 grams of raw cannabis or its

equivalent must remain secured within the residence or

residential property in which it was grown.

(b) Excess prohibited.--No person may knowingly obtain, seek

to obtain or possess an amount of cannabis from an adult use

dispensing organization that would exceed the possession limit

under this section, including cannabis that is cultivated by a

person under this chapter or obtained under Chapter 94.

regulated under 3 Pa.C.S. Chs. 7 (relating to industrial hemp

research) and 15 (relating to controlled plants and noxious

weeds) and the Agriculture Improvement Act of 2018 (Public Law

115-334, 132 Stat. 4490) are not covered by this section.

§ 9212. Persons under 21 years of age.

(a) Prohibition.--No individual under 21 years of age may

purchase, possess, use, process, transport, grow or consume

cannabis except where authorized under Chapter 94 (relating to

medical marijuana).

(b) Nonviolation.--Notwithstanding the provisions of

subsection (a), an individual under 21 years of age possessing

cannabis may not be deemed guilty of any criminal or civil law

violation of this Commonwealth.

individual.--Any individual 21 years of age or older who

intentionally transfers cannabis, with or without remuneration,

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to an individual under 21 years of age, except where authorized

under Chapter 94 or intentionally allows an individual under 21

years of age to purchase, possess, use, process, transport, grow

or consume cannabis, except where authorized under Chapter 94 ,

may be prohibited from purchasing adult use cannabis as

authorized by this chapter in addition to being subject to

additional criminal or civil penalties as provided by law. The

board shall promulgate rules and regulations to effectuate the

intent of this section and with respect to any penalties that

may be imposed against cannabis business establishments or

agents for intentionally transferring cannabis to anyone under

the age of 21, except where authorized under Chapter 94.

§ 9213. Identification, false identification and penalty.

(a) No personal information required.--To protect personal

privacy, the board shall not require a purchaser to provide an

adult use dispensing organization with personal information

other than for the purposes of verifying a government-issued

identification to determine the purchaser's age. An adult use

dispensing organization may not obtain or record personal

information about a purchaser without the purchaser's consent.

(b) Scanning identification.--An adult use dispensing

organization shall use an electronic reader or electronic

scanning device to scan a purchaser's government-issued

identification, if applicable, to determine the purchaser's age

and the validity of the identification. The board may permit a

cannabis business establishment to operate for temporary periods

without an operational electronic reader or electronic scanning

device as long as a process is implemented to determine the

purchaser's age and the validity of identification.

§ 9214. Immunities and presumptions related to the use of

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cannabis by purchasers.

(a) Penalty applicability.--A purchaser who is 21 years of

age or older is not subject to arrest, prosecution, denial of

any right or privilege or other punishment, including, but not

limited to, any civil penalty or disciplinary action taken by an

occupational or professional licensing or permitting board,

based solely on:

(1) The use or possession of cannabis, if:

(i) the purchaser possesses an amount of cannabis

that does not exceed the possession limit under this

chapter; and

(ii) the use of cannabis does not impair the

purchaser when engaged in the practice of the profession

for which the purchaser is licensed, permitted, certified

or registered.

(2) selling cannabis paraphernalia if employed and

authorized as a dispensing organization agent by a permitted

dispensing organization;

(3) being in the presence or vicinity of the use of

cannabis or cannabis paraphernalia as allowed under this

chapter; or

(4) possessing cannabis paraphernalia.

(b) Determination of probable cause.--Mere possession of or

application for authorization to work as a cannabis business

establishment agent or the identification card or permit does

not constitute probable cause or reasonable suspicion to believe

that a crime has been committed, nor shall it be used as the

sole basis to support the search of the person, property or home

of the individual authorized to work as a cannabis business

establishment agent, possessing an agent identification card or

20210SB0473PN1148 - 22 -

applying for authorization to work as an agent. The possession

of or application for authorization to work as a cannabis

business establishment agent or possession of an agent

identification card may not preclude the existence of probable

cause if probable cause exists based on other grounds.

shall be subject to criminal or civil penalties for taking any

action in good faith in reliance on this chapter when acting

within the scope of employment.

(d) Law enforcement liability.--No law enforcement or

correctional agency, nor any employee of a law enforcement or

correctional agency, may be subject to criminal or civil

liability, except for willful and wanton misconduct, as a result

of taking any action within the scope of the official duties of

the agency or employee to prohibit or prevent the possession or

use of cannabis by an individual incarcerated at a correctional

facility, jail or municipal lockup facility, on parole or

mandatory supervised release or otherwise under the lawful

jurisdiction of the agency or employee.

(e) Medical care.--For purposes of receiving medical care,

including organ transplants, an individual's use of cannabis

under this chapter does not constitute the use of an illicit

substance or otherwise disqualify an individual from medical

care.

(f) Firearms possession.--A lawful purchaser or possessor of

cannabis under this chapter shall not be prohibited or otherwise

restricted from lawful firearm ownership. The Pennsylvania State

Police, Pennsylvania Sheriff's Department or any other law

enforcement agency shall take steps to revise firearms

applications or take other necessary actions to ensure

20210SB0473PN1148 - 23 -

compliance with this chapter.

§ 9215. Discrimination prohibited.

(a) Child welfare.--The presence of cannabinoid components

or metabolites in an individual's bodily fluids, possession of

cannabis-related paraphernalia, conduct related to the use of

cannabis or the participation in cannabis-related activities

lawful under this chapter by a custodial or noncustodial parent,

grandparent, legal guardian, foster parent or other individual

charged with the well-being of a child, may not form the sole,

primary basis or supporting basis for any action or proceeding

by a child welfare agency or family or juvenile court. The

prohibition under this subsection includes any adverse finding,

evidence or restriction of any right or privilege in a

proceeding related to the adoption of a child, fitness

determinations or a determination related to a foster parent,

guardianship, conservatorship, trusteeship, the execution of a

will or the management of an estate, unless the individual's

actions in relation to cannabis created an unreasonable danger

to the safety of the child or otherwise show the individual is

not competent as established by clear and convincing evidence.

(b) Landlords.--No landlord may be penalized or denied any

benefit leasing to an individual who uses cannabis under this

chapter.

construed to require any person or establishment in lawful

possession of property to allow a guest, client, lessee,

customer or visitor to use cannabis on or in that property,

including on any land owned in whole or in part or managed in

whole or in part by the Commonwealth.

§ 9216. Limitations and penalties.

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(a) Limitations.--This chapter does not permit any

individual to engage in and does not prevent the imposition of

any civil, criminal or other penalties for engaging in any of

the following:

(1) Undertaking any task under the influence of cannabis

when doing so would constitute negligence, professional

malpractice or professional misconduct.

(2) Possessing cannabis:

(i) In a school bus, unless permitted for a patient

or caregiver under Chapter 94 (relating to medical

marijuana).

(ii) On the grounds of any preschool or primary or

secondary school, unless permitted for a patient or

caregiver under Chapter 94.

(iii) In any correctional facility.

(iv) In a vehicle not open to the public unless the

cannabis is in a cannabis container and reasonably

inaccessible while the vehicle is moving.

(v) In a private residence that is used at any time

to provide permitted childcare or other similar social

service care on the premises.

(3) Using cannabis:

(i) In a school bus, unless permitted for a patient

under Chapter 94.

(ii) On the grounds of any preschool or primary or

secondary school, unless permitted for a patient under

Chapter 94.

(iii) In any correctional facility.

(iv) In any motor vehicle.

(v) In a private residence that is used at any time

20210SB0473PN1148 - 25 -

to provide permitted childcare or other similar social

service care on the premises.

(vi) Knowingly in close physical proximity to anyone

under 21 years of age .

(4) Operating, navigating or being in actual physical

control of any motor vehicle, aircraft, watercraft or

snowmobile while using or under the influence of cannabis.

(5) Facilitating the use of cannabis by any individual

who is not allowed to use cannabis under this chapter or

Chapter 94 .

(6) Transferring cannabis to any individual contrary to

this chapter or Chapter 94.

(7) The use of cannabis by a law enforcement officer,

corrections officer, probation officer or firefighter while

on duty.

(8) The use of cannabis by an individual who has a

school bus permit or a commercial driver's permit while on

duty.

(b) Business restriction.--Nothing in this chapter shall

prevent a private business from restricting or prohibiting the

use of cannabis on business property, including areas where

motor vehicles are parked.

authorize or otherwise require an individual or business entity

to violate Federal law, including the ability to consume

cannabis in public housing or on college or university campuses.

§ 9217. Employment and employer liability.

(a) Workplace policies.--Nothing in this chapter shall

prohibit an employer from adopting reasonable zero tolerance,

drug-free workplace policies or employment policies concerning

20210SB0473PN1148 - 26 -

testing, smoking, consuming, storing or using cannabis in the

workplace or while on call provided that the policy is applied

in a nondiscriminatory manner. Nothing in this chapter shall

require an employer to permit an employee to be under the

influence of or use cannabis in the employer's workplace or

while performing the employee's job duties or while on call.

(b) Violations of employer policy or restrictions on

employment.--Nothing in this chapter shall limit or prevent an

employer from disciplining an employee or terminating employment

of an employee for violating an employer's employment policies

or workplace drug policy. Nothing in this chapter shall be

construed to interfere with any Federal, Commonwealth or local

restrictions on employment.

SUBCHAPTER D

CANNABIS REGULATORY CONTROL BOARD

Sec.

9220. Establishment.

9221. Applicability of other statutes.

9222. Board procedures.

9223. Board powers.

9224. Regulations.

9225. Temporary regulations.

9226. Confidentiality and public disclosure.

9227. Cannabis Business Development Fund.

§ 9220. Establishment.

(a) Board established.--The Cannabis Regulatory Control

Board is established as an independent board. The board shall

implement, direct and oversee this chapter.

(b) Transfer.--The Department of Health's oversight of the

medical marijuana program established under Chapter 94 (relating

20210SB0473PN1148 - 27 -

to medical marijuana) shall be transferred under the authority

of the board within six months of the effective date of this

section. All authority, information, documents, databases and

necessary information of the medical marijuana program shall be

transferred to the board within six months of the effective date

of this section.

following members:

(1) Two members appointed by the Governor for a seven-

year term, one of whom shall be a representative of the

cannabis industry.

(2) One member appointed by each of the following:

(i) The President pro tempore of the Senate for a

six-year term.

(ii) The Minority Leader of the Senate for a five-

year term.

(iii) The Speaker of the House of Representatives

for a six-year term.

(iv) The Minority Leader of the House of

Representatives for a five-year term.

(3) One member appointed for a two-year term who

possesses substantial and demonstrable experience in one of

the following areas, who shall be a public member appointed

by the Governor:

(i) community organizing in a disproportionately

impacted area;

(ii) work experience for an offender reentry

program;

(iii) workforce development work; or

(iv) work experience or advocacy in communities

20210SB0473PN1148 - 28 -

negatively affected by Federal and State drug regulation

and enforcement.

(d) Chairperson and operations.--The Governor shall

designate the chairperson of the board who shall serve as

chairperson during the term of appointment and until a successor

shall be appointed. The board shall be operated from funds

deposited in the Cannabis Regulation Fund. If, in any year,

appropriations for the administration of this chapter are not

enacted by June 30, any funds appropriated for the

administration of this part which are unexpended, uncommitted

and unencumbered at the end of a fiscal year shall remain

available for expenditure by the board or other agency to which

they were appropriated until the enactment of appropriation for

the ensuing fiscal year.

(e) Board staff.--The board shall employ and maintain a

staff as necessary to effectuate its purposes, including

employees responsible for administrative tasks and facilitating

communication between the board and other Commonwealth agencies

or departments.

(f) Chief medical officer.--The board shall hire a salaried

chief medical officer to administer the medical marijuana

program under Chapter 94. The chief medical officer shall have

the appropriate health care credentials and be licensed by the

Commonwealth and report to the executive director.

(g) Residency requirement and elected status.--Each board

member shall be a resident of this Commonwealth while serving on

the board and may not hold, or be a candidate for, Federal,

State or local elected office or serve as an official in a

political party.

(h) Term.--Except as initially appointed under subsection

20210SB0473PN1148 - 29 -

(c), each board member shall serve for a term of four years and

shall be eligible for reappointment for a period of no longer

than 12 years total between all terms. A person appointed to

fill a vacancy in the office of a board member shall be

appointed by the appointing authority under subsection (c) and

may only serve for the unexpired term of that board member.

(i) Removal.--A board member may be removed by the petition

of five members of the board.

(j) Compensation.--Board members shall receive salaries.

Board members shall be considered full-time employees and may

not maintain other employment that is in direct conflict with

their duties as board members or creates a conflict of interest

with the cannabis industry. The following shall apply:

(1) The Executive Board established under section 204 of

the act of April 9, 1929 (P.L.177, No.175), known as The

Administrative Code of 1929, shall establish the compensation

of the board members.

(2) Board members shall be reimbursed for all necessary

and actual expenses.

(3) Board members shall be eligible for retirement under

71 Pa.C.S. Pt. XXV (relating to retirement for State

employees and officers).

(k) Appointments.--The appointing authorities under this

section shall make their initial appointments within 60 days of

the effective date of this section. No appointment shall be

final until receipt by the appointing authority of the required

background investigation of the appointee by the Pennsylvania

State Police which shall be completed within 30 days of receipt

of information under this subsection. No person who has been

convicted in any domestic or foreign jurisdiction of a felony

20210SB0473PN1148 - 30 -

other than a cannabis-related conviction may serve on the board.

§ 9221. Applicability of other statutes.

(a) General rule.--The board shall be subject to the

following acts:

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

as the State Adverse Interest Act.

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

the Right-to-Know Law.

(3) The provisions of 65 Pa.C.S. Chs. 7 (relating to

open meetings) and 11 (relating to ethics standards and

financial disclosure).

(b) Status of board.--

(1) The board shall be considered an independent agency

for the purposes of the following:

(i) The act of October 15, 1980 (P.L.950, No.164),

known as the Commonwealth Attorneys Act.

(ii) 62 Pa.C.S. Pt. I (relating to Commonwealth

Procurement Code). The expediting of the payment of

revenue to the Commonwealth shall not be grounds for an

emergency procurement by the board.

(2) The board shall be considered an agency for the

purposes of the following:

(i) The act of July 31, 1968 (P.L.769, No.240),

referred to as the Commonwealth Documents Law.

(ii) The act of June 25, 1982 (P.L.633, No.181),

known as the Regulatory Review Act.

§ 9222. Board procedures.

(a) Quorum and notice.--A majority of the board members

shall constitute a quorum and the affirmative vote of a majority

of the board members shall be required for an action of the

20210SB0473PN1148 - 31 -

board. The chairperson or a majority of the members of the board

may call a meeting if notice of a meeting is provided to each

member of the board and to other persons who request notice. The

board shall adopt regulations establishing procedures, which may

include electronic communications, by which a request to receive

notice shall be made and the method by which timely notice may

be given.

(b) Duties of chairperson.--The chairperson shall have and

exercise supervision and control over all the affairs of the

board and preside at all hearings where the chairperson is

present. The chairperson shall designate a board member to act

as chairperson if the chairperson will be absent at a board

meeting.

§ 9223. Board powers.

(a) Authority.--The board shall have general and sole

regulatory authority over the conduct of cannabis or related

activities as described in this chapter. The board shall have

all the powers necessary or convenient to carry out and

effectuate its purposes in administering adult use cannabis and

medical marijuana programs.

(b) Staffing.--The board shall employ individuals as

necessary to implement this chapter, who shall serve at the

pleasure of the board. 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 subsection, the board shall not be

considered an executive or independent agency under the act of

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

Attorneys Act .

20210SB0473PN1148 - 32 -

authorized by the board, each member of the board may employ one

special assistant whose classification and compensation shall be

established by the board and subject to subsection (b).

(d) Executive director.--The board shall hire an executive

director as a salaried position.

(e) Classification.--The board shall establish a system of

employee classification and compensation and shall not be

subject to the provisions of the act of April 9, 1929 (P.L.177,

No.175), known as The Administrative Code of 1929, as to

classification and compensation for its employees and conduct

its activities consistent with the practices and procedures of

Commonwealth agencies.

(f) Publication.--Within 90 days of the establishment of the

board, the board shall publish the employee classification

system on the publicly accessible Internet website of the board

and transmit notice of the employee classification system to the

Legislative Reference Bureau for publication in the Pennsylvania

Bulletin.

(g) Board duties.--The board shall:

(1) Schedule and initiate a process to promulgate new

regulations or modify existing regulations.

(2) Hold public hearings on proposed regulations.

(3) Issue permits to cannabis business establishments to

authorize them to cultivate, process, transport and dispense

cannabis and ensure compliance with this chapter and Chapter

94 (relating to medical marijuana).

(4) Register cannabis business establishment agents and

ensure compliance with this chapter and Chapter 94.

(5) Have regulatory and enforcement authority over the

cultivating, processing, transporting, dispensing and using

20210SB0473PN1148 - 33 -

of cannabis in this Commonwealth.

(6) Establish and maintain an electronic database to

include activities and information relating to cannabis

business establishment and electronic tracking of all

cannabis under this chapter and Chapter 94.

(7) Develop recordkeeping requirements for all books and

papers, any electronic database or tracking system data and

other information of a cannabis business establishment for a

period of four years unless otherwise provided by the board.

(8) Develop enforcement procedures, including announced

and unannounced inspections of facilities and records of a

cannabis business establishment.

(9) Oversee enforcement actions, including holding

hearings of appeals.

(10) Develop and implement a comprehensive social equity

and economic development program in partnership with the

Commonwealth Financing Authority.

(11) Approve the budget of the board related to actions

performed under this chapter and Chapter 94.

(12) Set research agenda.

(13) Convene working groups.

(14) Establish and maintain public outreach programs

about the adult use cannabis and medical marijuana programs.

(15) Collaborate as necessary with other Commonwealth

agencies or contract with third parties as necessary to carry

out the provisions of this chapter and Chapter 94.

(16) Develop strategies and procedures to prohibit the

illicit market.

§ 9224. Regulations.

The board shall promulgate regulations, with input from

20210SB0473PN1148 - 34 -

industry stakeholders, to carry out the provisions of this

chapter and Chapter 94 (relating to medical marijuana),

including:

(1) Types of permits issued under this chapter,

including the following types of permits:

(i) Cultivation/processing.

(ii) Micro cultivation.

(iii) Dispensing.

(iv) Testing.

(2) Methods and forms of permit application, including

timeline, fees and minimum requirements.

(3) Policies and procedures to prioritize, promote and

encourage diversity and full participation by people from

communities that have been disproportionately harmed by

cannabis prohibition and its enforcement.

(4) Procedures to process and competitively score permit

applications and administrative requests, including changes

of ownership and location.

(5) Security procedures consistent with those

implemented under C hapter 94.

(6) Enforcement procedures, including fines, suspensions

and revocations.

(7) Ownership and financial disclosure procedures and

requirements, including record keeping requirements.

(8) Procedures and requirements concerning the

divestiture of a beneficial ownership interest by a person

found unqualified.

(9) Procedures, processes and requirements for transfers

of ownership, including the involvement of a publicly traded

corporation.

20210SB0473PN1148 - 35 -

(10) Combining the medical program under Chapter 94 and

adult use program under this chapter.

(11) Seed-to-sale and inventory tracking procedures.

(12) Procedures and requirements for curbside pickup

services offered by dispensing organizations.

(13) Transportation requirements, including:

(i) Establishing procedures and requirements for

home delivery services by dispensing organizations and

cultivation centers.

(ii) A requirement that transportation between

cannabis business establishments occurs in secured

vehicles but allowing for transportation in vehicles

other than those owned and operated by adult use

dispensing organizations or adult use cultivation

centers.

(iii) Details required on transportation manifests.

(iv) Policies encouraging bulk shipment where

appropriate.

(14) Labeling requirements.

(15) Edible product requirements, including, but not

limited to:

(i) Ensuring that products are not likely to appeal

to minors.

(ii) Product safety regulations, including the

requiring of good manufacturing practices and appropriate

testing.

(iii) Standards for creating clearly delineated

individual servings.

(16) Advertising and marketing regulations that balance

the ability of a cannabis business establishment to engage in

20210SB0473PN1148 - 36 -

reasonable marketing and promotional activities while:

(i) Ensuring advertising and marketing does not

targets minors.

(ii) Reasonably restricting access to minors by

taking steps to ensure the audience will be predominantly

over 21 years of age for advertising and marketing.

(17) Product safety regulations, including:

(i) Regulations consistent with best practices for

food products, except where necessary modifications are

required due to the active compounds in the cannabis

plant.

(ii) Standards for packaging to address freshness,

tamper evidence and limiting access to children.

(iii) Standard symbols and warnings where the board

shall review symbols and warnings from other

jurisdictions where adult use cannabis sales are

permitted.

(iv) A prohibition on packaging that is likely to

appeal to minors.

(18) Requirements that a cannabis business establishment

use standards and practices that align with United States

Department of Agriculture and Food and Drug Administration

standards where appropriate.

§ 9225. Temporary regulations.

The board shall promulgate temporary regulations no later

than six months from the effective date of this chapter. The

temporary regulations under this section shall be for a period

of three years following the effective date of this section and

shall not be subject to:

(1) Sections 201, 202 and 203 of the act of July 31,

20210SB0473PN1148 - 37 -

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.

§ 9226. Confidentiality and public disclosure.

(a) General rule.--All information obtained by the board

relating to agents, patients or customers shall be confidential

and not subject to public disclosure, including disclosure under

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

to-Know Law.

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

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

(1) With exceptions for private, security-related and

trade secret information, applications for permits submitted

by a cannabis business establishment.

(2) Information relating to penalties or other

disciplinary actions taken against a cannabis business

establishment or agent by the board for violation of this

chapter.

§ 9227. Cannabis Business Development Fund.

(a) Establishment.--The Cannabis Business Development Fund

is established as a special fund in the State Treasury. Money in

the fund is appropriated as set forth in this section and shall

not lapse.

(b) Deposits.--Certain fees payable under this chapter shall

be deposited into the fund established under subsection (a).

Additionally, $3,000,000 of gross receipts of revenue deposited

into the Cannabis Regulation Fund shall be transferred to the

Cannabis Business Development Fund. The money deposited into the

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

20210SB0473PN1148 - 38 -

chapter. Any interest accrued shall be deposited into the fund

established under this section.

direct the investment of the fund established under this

section. The State Treasurer shall credit to the fund interest

and earnings from fund investments.

(d) Administrator.--The Commonwealth Financing Authority is

the administrator of the Cannabis Business Development Fund for

auditing purposes.

(e) Purpose.--The Cannabis Business Development Fund shall

be used for the following purposes:

(1) to provide low-interest rate loans to qualified

social and economic equity applicants to pay for ordinary and

necessary expenses to start and operate a cannabis business

establishment;

(2) to provide grants to qualified social and economic

equity applicants to pay for ordinary and necessary expenses

to start and operate a cannabis business establishment;

(3) to provide low-interest rate loans to social and

economic equity charter permittees and applicants to pay for

legal expenses related to the development and execution of

charter agreements;

(4) to provide grants to social and economic equity

charter permittees and applicants to pay for legal expenses

related to the development and execution of charter

agreements;

(5) to compensate the Commonwealth Financing Authority

for any costs related to the provision of low-interest rate

loans and grants to qualified social and economic equity

applicants;

20210SB0473PN1148 - 39 -

(6) to pay for outreach that may be provided or targeted

to attract and support social and economic equity applicants;

(7) to conduct any study or research concerning the

participation of minorities, women, veterans or people with

disabilities in the cannabis industry, including barriers to

individuals entering the industry as equity owners of a

cannabis business establishment;

(8) to assist with job training and technical assistance

for residents in disproportionately impacted areas;

(9) to community organizations, offender reentry

programs, workforce development programs and other community

or advocacy programs in disproportionately impacted areas or

other communities negatively affected by Federal and State

drug regulation and enforcement; and

(10) for any purpose set forth with respect to

Subchapter H of Chapter 94 (relating to tax on m edical

marijuana).

(f) Additional deposits.--All money collected for the

approval of an adult use dispensing organization and adult use

cultivation center permit for existing medical marijuana

operators issued before January 1, 2022, and remunerations made

as a result of transfers of permits awarded to qualified social

and economic equity applicants shall be deposited into the

Cannabis Business Development Fund.

(g) Transfer.--As soon as practical after the effective date

of this section, the Treasurer shall transfer the balance of the

Medical Marijuana Program Fund to the Cannabis Business

Development Fund.

(h) Prohibition.--Notwithstanding any other law to the

contrary, the Cannabis Business Development Fund is not subject

20210SB0473PN1148 - 40 -

to sweeps, administrative charge-backs, or any other fiscal or

budgetary maneuver that would in any way transfer any amounts

from the Cannabis Business Development Fund into any other fund

of the Commonwealth.

SUBCHAPTER E

SOCIAL AND ECONOMIC EQUITY

Sec.

9230. Social and economic equity.

9231. Loans and grants to social and economic equity

applicants.

9232. Fee waivers.

9233. Transfer of permit awarded to qualified social and

economic equity applicant.

§ 9230. Social and economic equity.

(a) Promotion and partnership.--The board shall promote and

take any necessary action to ensure social and economic equity

in adult use and medical cannabis industries in this

Commonwealth. The board shall partner with the Commonwealth

Financing Authority, which shall be responsible for implementing

the social and economic equity provisions of this chapter.

(b) Report.--On January 1 of every year, the Commonwealth

Financing Authority shall prepare and issue a public report that

assesses the extent of diversity in the cannabis industries and

methods for reducing or eliminating any identified barriers to

entry, including access to capital. The information reported

shall include:

(1) the number and percentage of permits provided to

social and economic equity applicants and to businesses owned

by minorities, women, veterans and people with disabilities;

(2) the total number and percentage of employees in the

20210SB0473PN1148 - 41 -

cannabis industry who meet the definition of a social and

economic equity applicant or who are minorities, women,

veterans or people with disabilities;

(3) the total number and percentage of contractors and

subcontractors in the cannabis industry that meet the

definition of a social and economic equity applicant or who

are owned by minorities, women, veterans or people with

disabilities, if known to the cannabis business

establishment; and

(4) recommendations on reducing or eliminating any

identified barriers to entry, including access to capital, in

the cannabis industry.

§ 9231. Loans and grants to social and economic equity

applicants.

(a) Grant and loan programs.--The Commonwealth Financing

Authority shall establish grant and loan programs, subject to

appropriations from the Cannabis Business Development Fund, for

the purposes of providing financial assistance, loans, grants

and technical assistance to social and economic equity

applicants. The Commonwealth Financing Authority may:

(1) provide cannabis social and economic equity loans

and grants from appropriations from the Cannabis Business

Development Fund to assist qualified social and economic

equity applicants in the Commonwealth's regulated cannabis

marketplace;

(2) enter into agreements that set forth terms and

conditions of the financial assistance, accept funds or

grants and engage in cooperation with private entities and

Commonwealth agencies or local government to carry out the

purposes of this section;

20210SB0473PN1148 - 42 -

(3) fix, determine, charge and collect any premiums,

fees, charges, costs and expenses, including application

fees, commitment fees, program fees, financing charges or

publication fees in connection with its activities under this

section;

(4) coordinate assistance under loan programs with

activities of the board and other Commonwealth agencies as

needed to maximize the effectiveness and efficiency of this

chapter;

(5) provide staff, administration and related support

required to administer this section;

(6) take other necessary or appropriate actions to

protect the Commonwealth's interest in the event of

bankruptcy, default, foreclosure or noncompliance with the

terms and conditions of financial assistance provided under

this section, including the ability to recapture funds if the

recipient is found to be noncompliant with the terms and

conditions of the financial assistance agreement;

(7) establish application, notification, contract and

other forms, procedures or rules deemed necessary and

appropriate; and

(8) utilize vendors or contract work to carry out the

purposes of this chapter.

(b) Conditions.--Loans made under this section shall:

(1) Only be made if, in the judgment of the Commonwealth

Financing Authority, the project furthers the goals set forth

in this chapter.

(2) Be in a principal amount and form and contain terms

and provisions with respect to security, insurance,

reporting, delinquency charges, default remedies and other

20210SB0473PN1148 - 43 -

matters as the Commonwealth Financing Authority shall

determine appropriate to protect the public interest and to

be consistent with the purposes of this section. The terms

and provisions may be less than required for similar loans

not covered by this section.

on a competitive and annual basis and shall further and promote

the goals of this chapter, including promotion of social and

economic equity applicants, job training and workforce

development and technical assistance to social and economic

equity applicants.

(d) Annual report.--Beginning January 1, 2022, and each year

thereafter, the Commonwealth Financing Authority shall annually

report to the Governor, the General Assembly and the board on

the outcomes and effectiveness of this section, including:

(1) the number of persons or businesses receiving

financial assistance under this section;

(2) the amount in financial assistance awarded in the

aggregate, in addition to the amount of loans made that are

outstanding and the amount of grants awarded;

(3) the location of the project engaged in by the person

or business; and

(4) if applicable, the number of new jobs and other

forms of economic output created as a result of the financial

assistance.

(e) Additional outreach.--The Commonwealth Financing

Authority shall include engagement with individuals with limited

English proficiency as part of its outreach provided or targeted

to attract and support social and economic equity applicants.

§ 9232. Fee waivers.

20210SB0473PN1148 - 44 -

(a) Permit application fee waiver.--The board shall waive

50% of any nonrefundable permit application fee, nonrefundable

fee associated with purchasing a permit to operate a cannabis

business establishment and any surety bond or other financial

requirement of a social and economic equity applicant, provided

a social and economic equity applicant meets the following

qualifications at the time the payment is due:

(1) the applicant, including all individuals and

entities with 10% or greater ownership and all parent

companies, subsidiaries and affiliates, has less than a total

of $750,000 of income in the previous calendar year; and

(2) the applicant, including all individuals and

entities with 10% or greater ownership and all parent

companies, subsidiaries and affiliates, has no more than two

other permits for cannabis business establishments in this

Commonwealth.

(b) Attestation.--The board may require a social and

economic equity applicant to attest that they meet the

requirements for a fee waiver under subsection (a) and provide

evidence of total annual income for the previous calendar year.

an applicant who applied as a social and economic equity

applicant is not eligible under this section, the applicant

shall be provided an additional 10 days to provide alternative

evidence of qualification as a social and economic equity

applicant. The applicant may pay the remainder of the waived fee

and not be considered as a social and economic equity applicant.

If the applicant cannot meet the qualifications standards or pay

the remainder of the waived fee, the board may keep the initial

application fee and the application shall not be graded.

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§ 9233. Transfer of permit awarded to qualified social and

economic equity applicant.

(a) Transfer, sale or grant of permit.--In the event a

qualified social and economic equity applicant seeks to

transfer, sell or grant a cannabis business establishment permit

to an individual or entity that does not qualify as a social and

economic equity applicant after one year from the date of

issuance of the permit and within five years after the permit

was issued, the transfer agreement shall require the new permit

holder to pay the board an amount equal to the following for

deposit in the Cannabis Business Development Fund:

(1) any fees that were waived by any Commonwealth agency

based on the applicant's status as a social and economic

equity applicant, if applicable;

(2) any outstanding amount owed by the qualified social

and economic equity applicant for a loan through the Cannabis

Business Development Fund, if applicable; and

(3) the full amount of any grants that the qualified

social and economic equity applicant received from the

Commonwealth Financing Authority, if applicable.

(b) Applicability.--Transfers of a cannabis business

establishment permit awarded to a social and economic equity

applicant shall be subject to all other provisions of this

chapter.

SUBCHAPTER F

REGULATION OF CANNABIS BUSINESS ESTABLISHMENT

Sec.

9235. Authority.

9236. Medical marijuana exemption.

9237. Issuance of adult use dispensing organization permits to

20210SB0473PN1148 - 46 -

current medical marijuana dispensary permit holders.

9238. Issuance of additional adult use dispensing organization

permits to current medical marijuana dispensary

permit holders and social and economic equity

dispensing organization charter permits to qualified

social and economic equity applicants.

9239. New adult use dispensing organization permits.

9240. Selection criteria for new adult use dispensing

organization permits .

9241. Adult use dispensing organization operational

requirements and prohibitions.

9242. Dispensing cannabis.

9243. Agent-in-charge.

9244. Inventory control system.

9245. Storage requirements.

9246. Destruction and disposal of cannabis.

9247. Security.

9248. Recordkeeping.

9249. Issuance of adult use cultivation permits.

9250. Issuance of adult use cultivation center permits to

current medical marijuana grower/processor permit

holders.

9251. New adult use cultivation center permits.

9252. Selection criteria for new adult use cultivation center

permits.

9253. Adult use cultivation center requirements and

prohibitions.

9254. Issuance of micro cultivation center permits.

9255. Micro cultivation center permit applications.

9256. Selection criteria for micro cultivation center permits.

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9257. (Reserved).

9258. Micro cultivation center requirements and prohibitions.

9259. Cannabis business establishment agent identification

cards.

9260. Background check for cannabis business establishment

applicants.

9261. Renewal of cannabis business establishment permits and

cannabis business establishment agent identification

cards.

§ 9235. Authority.

(a) Enforcement.--The board shall administer and enforce the

provisions of this chapter relating to the permitting and

oversight of a cannabis business establishment and cannabis

business establishment agents unless otherwise provided in this

chapter.

(b) Limitation.--No person shall operate a cannabis business

establishment for the purpose of cultivating, processing,

dispensing or transporting cannabis or cannabis-infused products

without a permit issued under this chapter. No person shall be

an officer, director, manager or agent of a cannabis business

establishment without having been authorized by the board.

chapter, the board may exercise the following powers and duties:

(1) Prescribe forms to be issued for the administration

and enforcement of this chapter.

(2) Examine, inspect and investigate the premises,

operations and records of cannabis business establishment

applicants and permittees.

(3) Conduct investigations of possible violations of

this chapter pertaining to a cannabis business establishment

20210SB0473PN1148 - 48 -

and cannabis business establishment agents.

(4) Conduct hearings on proceedings to refuse to issue

or renew, revoke or suspend permits or to place on probation,

reprimand or otherwise discipline a permit holder under this

chapter or take other nondisciplinary action.

(5) Adopt rules required for the administration of this

chapter.

§ 9236. Medical marijuana exemption.

This chapter shall not apply to entities registered under

Chapter 94 (relating to medical marijuana), except where

otherwise specified.

§ 9237. Issuance of adult use dispensing organization permits

to current medical marijuana dispensary permit

holders.

(a) Permit application.--Medical marijuana dispensaries

holding permits granted under Subchapter E of Chapter 94

(relating to medical marijuana organizations) or Subchapter M of

Chapter 94 (relating to academic clinical research centers and

clinical registrants) as of the effective date of this section

may apply to the board for an equal number of adult use

dispensing organization permits and must submit separate

applications under this section for each permit held.

(b) Application requirements.--The application under

subsection (a) must be submitted by the same individual or

entity that holds the medical marijuana dispensary permit and

include the following:

(1) Payment of a nonrefundable application fee of

$25,000 to be deposited into the Cannabis Regulation Fund.

(2) Proof of registration as a medical marijuana

dispensary that is in good standing.

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(3) Certification that the applicant will comply with

the requirements contained under Chapter 94 except as

provided in this chapter.

(4) The legal name of the dispensary permit holder.

(5) The physical address of the dispensary at each of

its locations.

(6) The name, address, Social Security number and date

of birth of each principal officer and board member of the

dispensary permit holder, each of whom shall be at least 21

years of age.

holding a permit under this chapter that submits an application

under this section, including the payment of the nonrefundable

fee set forth under subsection (b)(1), shall be issued an adult

use dispensing organization permit by the board within 14 days.

(d) Permitted locations.--Each adult use dispensing

organization permit shall entitle the permit holder to operate

at up to three separate locations and dispense medical marijuana

to patients and adult use cannabis to customers in the same

dispensary without distinction under this chapter.

§ 9238. Issuance of additional adult use dispensing

organization permits to current medical marijuana

dispensary permit holders and social and economic

equity dispensing organization charter permits to

qualified social and economic equity applicants.

(a) Additional permits.--Any medical marijuana dispensary

holding a permit granted under Subchapter E of Chapter 94

(relating to medical marijuana organizations) or Subchapter M of

Chapter 94 (relating to academic clinical research centers and

clinical registrants) as of the effective date of this section

20210SB0473PN1148 - 50 -

may apply for an additional adult use dispensing organization

permit to operate up to three locations to serve purchasers and

qualified patients in this Commonwealth.

(b) Dual use.--A medical marijuana dispensary issued an

adult use dispensing organization permit under this section may

continue to sell and dispense cannabis to qualified patients at

each of its locations.

medical marijuana dispensary holding a permit under this chapter

seeking the issuance of an additional adult use dispensing

organization permit to sell cannabis to adult use purchasers and

medical patients under this section shall submit an application

on forms provided by the board. The application must be

submitted by the same individual or entity that holds the

dispensary's registration under Chapter 94 (relating to medical

marijuana) and include the following:

(1) A payment of a nonrefundable application fee of

$25,000 to be deposited into the Cannabis Regulation Fund.

(2) Proof of registration as a dispensary.

(3) The legal name of the dispensary.

(4) The proposed physical address, if known, of any

adult use dispensing organization locations.

(5) For any known dispensary locations, a copy of the

current local zoning ordinance sections relevant to

dispensary operations and documentation of the approval and

the conditional approval or the status of a request for

zoning approval from the local zoning office that the

proposed dispensary location is in compliance with the local

zoning rules.

(6) For any known dispensary locations, a plot plan of

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the dispensary drawn to scale. The applicant shall submit

general specifications of the building exterior and interior

layout.

(7) A statement that the adult use cannabis dispensing

organization agrees to respond to the board's supplemental

requests for information.

(8) For the building or land to be used as the proposed

site of the adult use cannabis dispensing organization, for

any known dispensary locations. The following shall also be

included under this paragraph:

(i) if the property is not owned by the applicant, a

written statement from the property owner and landlord,

if any, certifying consent that the applicant may operate

a dispensary on the premises; or

(ii) if the property is owned by the applicant,

confirmation of ownership.

(9) A copy of the proposed operating bylaws.

(10) A copy of the proposed business plan that complies

with the requirements of this chapter, including:

(i) a description of services to be offered; and

(ii) a description of the process of dispensing

cannabis.

(11) For any known dispensary locations, a copy of the

proposed security plan that complies with the requirements of

this chapter, including:

(i) a description of the delivery process by which

cannabis will be received, including receipt of manifests

and protocols that will be used to avoid diversion , theft

or loss at the dispensary acceptance point;

(ii) the process or controls that will be

20210SB0473PN1148 - 52 -

implemented to monitor the dispensary, secure the

premises, agents, patients, currency and prevent the

diversion, theft or loss of cannabis; and

(iii) the process to ensure that access to the

restricted access areas is restricted to agents, service

professionals, board inspectors and security personnel.

(12) For any known dispensary locations, a proposed

inventory control plan that complies with this section.

(13) The name, address, Social Security number and date

of birth of each principal officer and board member of the

adult use cannabis dispensing organization, each of whom

shall be at least 21 years of age.

(d) Executed charter agreement.--As a condition of its adult

use dispensing organization permit, a medical marijuana

dispensary holding a permit under Chapter 94 , together with its

application under this section, must submit an executed charter

agreement between it and a social and economic equity applicant

in which the adult use dispensing organization agrees to provide

financial, mentorship, training, operational and other support

to a social and economic equity applicant to operate a

dispensary at up to three locations. A charter agreement may

provide for a method of repayment of any loaned financial

support by an adult use dispensing organization over a period of

years and under terms that allow the social and economic equity

applicant to profit from the business. During the term of the

charter agreement, an adult use dispensing organization may take

no more than a 10% ownership stake in a social and economic

equity applicant's business. A charter agreement shall be

subject to board approval and audit and must provide a pathway

for the social and economic equity applicant to assume full

20210SB0473PN1148 - 53 -

ownership of the business within 10 years. Except as provided in

subsection (p) , an adult use dispensing organization's failure

to adhere to the terms of the charter agreement shall be grounds

to revoke the adult use dispensing organization's permit.

(e) Partnership.--An adult use dispensing organization must

identify a social and economic equity applicant to partner with

through a bona fide selection process, and an adult use

dispensing organization shall be prohibited from accepting money

or other valuable consideration from a social and economic

equity applicant in exchange for selecting the social and

economic equity applicant as a charter partner.

(f) Additional requirements.--In addition to the required

charter agreement described in subsection (d), together with its

application, an adult use dispensing organization applicant

under this section must submit the application of a social and

economic equity applicant to operate a dispensary at up to three

locations under a social and economic equity dispensing

organization charter permit.

(g) Disqualification.--A social and economic equity

applicant must submit all required information as set forth in

subsection (c). Failure by any applicant to submit all required

information may result in the application being disqualified.

The issuance of a permit under this section may not be delayed

by an applicant's failure to identify the location of all of its

dispensary locations.

(h) Deficiency notice.--If the board receives an application

that fails to provide the required elements contained in

subsections (c) and (f), other than information relevant to all

of its dispensary locations, the board shall issue a deficiency

notice to the applicant. The applicant shall have 30 calendar

20210SB0473PN1148 - 54 -

days from the date of the deficiency notice to submit complete

information.

(i) Review.--Once all required information and documents

have been submitted, the board shall review the applications of

both the adult use dispensing organization applicant and the

social and economic equity dispensing charter applicant. The

board may request revisions and retain final approval over

retail site features. The board shall approve the adult use

dispensing organization and social and economic equity

dispensing organization charter permits at the same time once

reviewed. Final approval for each individual dispensary location

shall be contingent on the completion of construction of the

dispensary locations, board inspections and providing the board

with any information set forth in subsection (c) related to

specific dispensary locations that were not provided during the

initial application process.

(j) Authorization.--The board may only authorize the sale of

cannabis at one of the adult use cannabis dispensing

organization's dispensary locations after the completion of a

successful inspection at that location and at a dispensary

location of the social and economic equity dispensing

organization charter permit holder. The board shall inspect a

location within 30 days of a written request by an adult use

dispensing organization or social and economic equity dispensing

organization charter permit holder.

(k) Successful inspection.--If the permit holders pass the

inspections under this section, the board shall authorize the

sale of cannabis at the dispensaries within 10 business days.

The board may, at its discretion, allow either the adult use

dispensing organization or the social and economic equity

20210SB0473PN1148 - 55 -

dispensing organization charter permit holder to begin

operations at a location before the other permittee as long as

substantial, good faith efforts can be shown to open the

permittee that has not yet passed inspection.

(l) Notification of opening date.--Once the board has

authorized the sale of cannabis at an adult use dispensing

organization location or social and economic equity dispensing

organization charter location, the adult use dispensing

organization or social and economic equity dispensing

organization charter permittee shall notify the board of the

proposed opening date.

(m) Treatment.--A social and economic equity dispensing

organization charter permit holder shall be treated in all

respects as the equivalent of an adult use dispensing

organization except that the holder of a social and economic

equity dispensing organization charter permit shall operate its

dispensary locations with the assistance of the adult use

dispensing organization as outlined in the charter agreement.

(n) Initial sale.--An adult use cannabis dispensing

organization and social and economic equity dispensing

organization charter permit holder may begin selling cannabis,

cannabis-infused products, paraphernalia and related items to

purchasers and patients no sooner than January 1, 2022.

(o) Permit change.--After the term of the charter agreement

between the adult use dispensing organization and social and

economic equity dispensing organization charter permit holder

has expired and the social and economic equity dispensing

organization charter permit holder has assumed full ownership

and control of the dispensary facility, the board shall exchange

the social and economic equity dispensing organization charter

20210SB0473PN1148 - 56 -

permit holder for an adult use dispensing organization permit.

(p) Additional permits.--Notwithstanding the requirements of

this section, any medical marijuana dispensary holding a permit

granted under Subchapter E of Chapter 94 or Subchapter M of

Chapter 94 as of the effective date of this section, that,

despite good faith efforts, has been unable to partner with a

qualified social and economic equity applicant as set forth in

this section, may still apply for an additional adult use

dispensing organization permit to operate at up to three

locations to serve purchasers and qualified patients throughout

this Commonwealth upon to payment of a fee of $100,000 to the

board to be deposited into the Cannabis Business Development

Fund.

(q) Deposit.--All fees collected under this section shall be

deposited into the Cannabis Regulation Fund, unless otherwise

specified.

§ 9239. New adult use dispensing organization permits.

(a) Additional permits.--Separate and apart from any adult

use dispensing organization permits issued to medical marijuana

dispensaries holding permits granted under Subchapter E of

Chapter 94 (relating to medical marijuana organizations) or

Subchapter M of Chapter 94 (relating to academic clinical

research centers and clinical registrants) as of the effective

date of this chapter, the board shall issue up to 10 additional

adult use dispensing organization permits before January 1,

2022.

(b) Dispensing.--All adult use dispensing organization

permits, including those issued to existing medical marijuana

dispensing organizations under sections 9237 (relating to

issuance of adult use dispensing organization permits to current

20210SB0473PN1148 - 57 -

medical marijuana dispensary permit holders) and 9238 (relating

to issuance of additional adult use dispensing organization

permits to current medical marijuana dispensary permit holders

and social and economic equity dispensing organization charter

permits to qualified social and economic equity applicants),

shall entitle permittees to dispense cannabis to both adult use

customers and to medical patients.

of adult use dispensing organization permit holders throughout

this Commonwealth, the board shall determine how many permits

should be awarded across this Commonwealth through a merit-based

application process. An applicant may file no more than one

application in any single application period.

(d) License application.--An applicant seeking issuance of

an adult use dispensing organization permit shall submit an

application on forms provided by the board. An applicant must:

(1) Pay a nonrefundable application fee of $5,000 for

each license for which the applicant is applying, which shall

be deposited into the Cannabis Regulation Fund.

(2) Certify that the applicant will comply with the

requirements contained in this chapter.

(3) Include the legal name of the proposed adult use

dispensing organization.

(4) Include a statement that the adult use dispensing

organization agrees to respond to the board's requests for

information.

(5) Include a statement from each principal officer

indicating whether that individual:

(i) has previously held or currently holds an

ownership interest in a cannabis business establishment

20210SB0473PN1148 - 58 -

in this Commonwealth; or

(ii) has held an ownership interest in a dispensary

or its equivalent in another state or territory of the

United States that had the dispensary permit or license

suspended, revoked, placed on probationary status or

subjected to other disciplinary action.

(6) Disclose whether any principal officer has ever

filed for bankruptcy or defaulted on spousal support or child

support obligation.

(7) Include:

(i) A resume for each principal officer, including

whether that individual has an academic degree,

certification or relevant experience with a cannabis

business establishment or in a related industry.

(ii) A description of the training and education

that will be provided to adult use dispensing

organization agents.

(iii) A copy of the proposed operating bylaws.

(iv) A copy of the proposed business plan that

complies with the requirements of this chapter,

including:

(A) a description of services to be offered; and

(B) a description of the process of dispensing

cannabis.

(v) A copy of the proposed security plan that

complies with the requirements of this chapter,

including:

(A) the process or controls that will be

implemented to monitor the dispensary, secure the

premises, agents and currency and prevent the

20210SB0473PN1148 - 59 -

diversion, theft or loss of cannabis; and

(B) the process to ensure that access to the

restricted access areas is restricted to registered

agents, service professionals, transporting

organization agents, board inspectors and security

personnel.

(vi) A proposed inventory control plan that complies

with this section.

(vii) A proposed floor plan, square footage estimate

and description of proposed security devices, including

cameras, motion detectors, servers, video storage

capabilities and alarm service providers.

(viii) The name, address, Social Security number and

date of birth of each principal officer and board member

of the adult use dispensing organization, each of whom

shall be at least 21 years of age.

(ix) Evidence of the applicant's status as a social

and economic equity applicant, if applicable, and whether

the social and economic equity applicant plans to apply

for a loan or grant issued by the Commonwealth Financing

Authority.

(x) The address, telephone number and email address

of the applicant's principal place of business, if

applicable. A post office box may not be permitted.

(xi) Written summaries of any information regarding

instances in which a business or nonprofit that a

prospective board member previously managed or served on

was fined or censured, or any instances in which a

business or nonprofit that a prospective board member

previously managed or served on had its registration

20210SB0473PN1148 - 60 -

suspended or revoked in any administrative or judicial

proceeding.

(xii) A plan for community engagement.

(xiii) Procedures to ensure accurate recordkeeping

and security measures that are in accordance with this

chapter and board rules.

(xiv) A description of the features that will

provide accessibility to purchasers as required by the

Americans with Disabilities Act of 1990 (Public Law 101-

336, 104 Stat. 327).

(xv) A detailed description of air treatment systems

that will be installed to reduce odors.

(xvi) A reasonable assurance that the issuance of a

license will not have a detrimental impact on the

community in which the applicant wishes to locate.

(xvii) The dated signature of each principal

officer.

(xviii) A description of the enclosed, locked

facility where cannabis will be stored by the dispensing

organization.

(xix) Signed statements from each adult use

dispensing organization agent stating that he or she will

not divert cannabis.

(xx) A diversity plan that includes a narrative

establishing a goal of diversity in ownership,

management, employment and contracting to ensure that

diverse participants and groups are afforded equality of

opportunity.

(xxi) A contract with a private security contractor

that is licensed under the laws of this Commonwealth for

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the dispensary to have adequate security at its facility.

(xxii) A description of the physical location of the

dispensary, including evidence of the applicant's right

to open an adult use dispensary on the proposed property.

(e) Operational.--An applicant who receives an adult use

dispensing organization permit under this section shall have one

calendar year from the date of the award to become operational

at each of its locations. If an applicant who receives an adult

use dispensing organization permit does not become operational

at each of its locations within one calendar year of the permit

award, the board may revoke the permit absent good reason for

the delay shown by the applicant. Before a new adult use

dispensing organization receives authorization to begin building

the dispensary, the board shall inspect the physical space

selected by the permittee. The board shall verify the site is

suitable for public access, the layout promotes the safe

dispensing of cannabis and the location is sufficient in size,

power allocation, lighting, parking, handicapped accessible

parking spaces, accessible entry and exits as required by the

Americans with Disabilities Act of 1990 , product handling and

storage.

(f) Background checks.--The board shall conduct a background

check of the prospective organization agents in order to carry

out this chapter. The Pennsylvania State Police shall charge the

applicant a fee for conducting the criminal history record check

which shall not exceed the actual cost of the record check. Each

person applying as a dispensing organization agent shall submit

a full set of fingerprints to the Pennsylvania State Police for

the purpose of obtaining a Federal and State criminal history

record check. Fingerprints shall be checked against the

20210SB0473PN1148 - 62 -

fingerprint records now and hereafter, to the extent allowed by

law, filed in the Pennsylvania State Police and Federal Bureau

of Investigation criminal history records databases. The

Pennsylvania State Police shall furnish, following positive

identification, all conviction information in this Commonwealth

to the board.

§ 9240. Selection criteria for new adult use dispensing

organization permits .

(a) Submissions.--Failure by an applicant to submit to the

board all required information under section 9239 (relating to

new adult use dispensing organization permits) may result in the

application being disqualified. If the board receives an

application that fails to provide the required elements in a

section, that section will not be scored.

(b) Application scoring.--The board shall, by rule, develop

a merit-based scoring system in which to award new adult use

dispensing organization permits as set forth in section 9239.

applications as determined by the board according to the

following categories:

(1) Suitability of employee training plan.

(2) Security and recordkeeping.

(3) Applicant's business, financial, operating and floor

plans.

(4) Knowledge and experience.

(5) Labor and employment practices.

(6) Environmental plan.

(7) The owner is a resident of this Commonwealth.

(8) The applicant's plan to engage with the community.

(9) A diversity plan, including specifying the

20210SB0473PN1148 - 63 -

percentage of the applicant's operating budget that will be

dedicated to contracting with or otherwise working with

minority-owned business enterprises, women-owned business

enterprises or veteran-owned business enterprises.

(10) Any other criteria the board may set by rule for

points.

(d) Anonymity.--Applications shall be scored by the board

anonymously pursuant to rules established by the board which

shall include tie-breaker language that governs the process

through which some applicants are to be awarded permits when

multiple applicants receive the same application score and the

awarding of permits to all tied applicants would result in

awarding more permits than is permissible under this chapter.

Any tie-breaking process shall be designed to ensure clarity,

transparency and fairness.

(e) Review.--Each application shall be reviewed and scored

by three individuals who score each application independently.

An applicant's score in each category under subsection (c) shall

be an average of the three scores awarded by each individual

score. An applicant may not receive full points simply for

providing responsive information on a section of the

application.

§ 9241. Adult use dispensing organization operational

requirements and prohibitions.

(a) General rule.--An adult use dispensing organization

shall operate in accordance with the representations made in its

application and permit materials. An adult use dispensing

organization shall be in compliance with this chapter and rules.

The following shall apply:

(1) All cannabis, cannabis concentrates, cannabis-

20210SB0473PN1148 - 64 -

infused products and cannabis seeds must be obtained from an

adult use cultivation center or another dispensary registered

in this Commonwealth.

(2) An adult use dispensing organization:

(i) Must include the legal name of the dispensary on

the packaging of any cannabis product it sells.

(ii) Shall inspect and count product received from a

cultivation center or other adult use dispensing

organization before dispensing it.

(iii) May only accept cannabis deliveries into a

restricted access area. Deliveries may not be accepted

through the public or limited access areas unless

otherwise approved by the board.

(iv) Shall maintain compliance with Commonwealth and

local building, fire and zoning requirements or

regulations.

(v) Shall submit a list to the board of the names of

all service professionals that will work at the

dispensary. The list shall include a description of the

type of business or service provided. The board shall be

promptly notified of any changes to the service

professional list. No service professional shall work in

the dispensary until the name is provided to the board on

the service professional list.

(vi) May operate between 6 a.m. and 10 p.m. local

time, or as determined by the local municipality.

(vii) Must keep all lighting outside and inside the

dispensary in good working order and wattage sufficient

for security cameras.

(viii) Must keep all air treatment systems that will

20210SB0473PN1148 - 65 -

be installed to reduce odors in good working order.

(ix) Must contract with a private security

contractor that is permitted under the laws of this

Commonwealth to provide on-site security at all hours of

the dispensary's operation.

(x) Shall ensure that any building or equipment used

by an adult use dispensing organization for the storage

or sale of cannabis is maintained in a clean and sanitary

condition.

(xi) Shall be free from infestation by insects,

rodents or pests.

(xii) Shall develop a recall policy and procedure,

as approved by the board.

(xiii) May not:

(A) Cultivate, process or manufacture cannabis.

(B) Accept a cannabis product from a cultivation

center or adult use dispensing organization unless it

is prepackaged and labeled in accordance with this

chapter and any rules that may be adopted pursuant to

this chapter.

from outside this Commonwealth.

(D) Sell cannabis or cannabis-infused products

to a purchaser unless the individual is registered

under Chapter 94 (relating to medical marijuana) or

the purchaser has been verified to be 21 years of age

or older.

(E) Refuse to conduct business with a

cultivation center or micro cultivation center that

can properly deliver the product and is permitted by

20210SB0473PN1148 - 66 -

the board.

(F) Enter into agreements to allow persons who

are not adult use dispensing organization agents to

deliver cannabis or to transport cannabis to

purchasers, other than through home delivery services

approved by the board.

(G) Operate an adult use dispensing organization

if the:

(I) Organization's video surveillance

equipment is inoperative.

(II) Point-of-sale equipment is inoperative.

(III) Commonwealth's Seed-to-Sale Cannabis

Tracing System is inoperative.

(H) Have fewer than two people working at any

time while the dispensary is open.

(I) Sell clones or any other live plant

material.

(J) Violate any other requirements or

prohibitions set by the board.

(b) Operations requirement regulations.--The board shall

promulgate regulations setting forth operational requirements

for adult use dispensing organizations, consistent with the

provisions of this chapter, including the operational

requirements and prohibitions contained in this section.

§ 9242. Dispensing cannabis.

(a) Dispensing criteria.--Prior to an adult use dispensing

organization agent dispensing cannabis to a purchaser, the agent

shall:

(1) Verify the age of the purchaser and validity of the

government-issued identification card of the purchaser by use

20210SB0473PN1148 - 67 -

of an electronic reader or electronic scanning device, unless

otherwise permitted by the board, to scan a purchaser's

government-issued identification, if applicable.

(2) Enter the following information into the

Commonwealth's Seed-to-Sale Cannabis Tracking System:

(i) The adult use dispensing organization

identification card and dispensing agent's identification

number.

(ii) The amount and type, including strain, if

applicable, of cannabis or cannabis-infused product

dispensed.

(iii) The date and time the cannabis or cannabis-

infused product was dispensed.

(b) Refusal to sell.--An adult use dispensing organization

shall refuse to sell cannabis or cannabis-infused products to

any person unless the person produces valid identification

showing that the person is 21 years of age or older. An adult

use dispensing organization or a medical marijuana dispensing

organization under Chapter 94 (relating to medical marijuana)

may sell cannabis or cannabis-infused products to a person who

is under 21 years of age if the sale complies with the

provisions of C hapter 94 .

identification must:

(1) Be valid and unexpired.

(2) Contain a photograph and the date of birth of the

person.

§ 9243. Agent-in-charge.

(a) Designation.--Every adult use dispensing organization

shall designate, at a minimum, one agent-in-charge for each

20210SB0473PN1148 - 68 -

permitted dispensary. The designated agent-in-charge must hold

an adult use dispensing organization agent identification card.

Maintaining an agent-in-charge shall be a continuing requirement

for the adult use dispensary organization permit, except as

provided in subsection (e).

(b) Requirements.--The agent-in-charge shall be a principal

officer or a full-time agent of the adult use dispensing

organization and shall manage the dispensary. Managing the

dispensary includes responsibility for opening and closing the

dispensary, delivery acceptance, oversight of sales and adult

use dispensing organization agents, recordkeeping, inventory,

adult use dispensing organization agent training and compliance

with this chapter, including the responsibility for maintaining

all files subject to audit or inspection by the board at the

dispensary. The agent-in-charge shall, within 48 hours, notify

the board of any change of information required to be reported

to the board.

charge manages the dispensary, the board may consider the

responsibilities identified in this section, the number of

dispensing organization agents under the supervision of the

agent-in-charge and the employment relationship between the

agent-in-charge and the adult use dispensing organization,

including the existence of a contract for employment and any

other relevant fact or circumstance.

(d) Change in status.--The agent-in-charge shall be

responsible for notifying the board of a change in the

employment status of any adult use dispensing organization agent

within 10 business days after the change, including notice to

the board if the termination of an agent was for diversion of

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product or theft of currency.

(e) Vacancy.--In the event of the separation of an agent-in-

charge due to death, incapacity, termination or any other reason

and if the dispensary does not have an active agent-in-charge,

the adult use dispensing organization shall immediately contact

the board and request temporary authority allowing the

continuing operation. The request shall include the name of an

interim agent-in-charge until a replacement is identified or

shall include the name of the replacement. The board may not

delay in granting the temporary authority and the adult use

dispensing organization shall be permitted to operate while

obtaining board approval for an interim agent-in-charge. No

temporary authority shall be valid for more than 90 days. The

succeeding agent-in-charge shall register with the board in

compliance with this section. Once the permanent succeeding

agent-in-charge is registered with the board, the temporary

authority shall be void.

(f) Registration.--The adult use dispensing organization

agent-in-charge registration shall expire one year from the date

of issuance. The agent-in-charge's registration shall be renewed

annually.

(g) Termination.--Upon termination of an agent-in-charge's

employment, the adult use dispensing organization shall

immediately reclaim the adult use dispensing organization agent

identification card. The dispensing organization shall promptly

return the identification card to the board.

(h) Application denial.--The board may deny an application

or renewal or discipline or revoke an agent-in-charge

identification card for any of the following reasons:

(1) submission of misleading, incorrect, false or

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fraudulent information in the application or renewal

application;

(2) violation of the requirements of this chapter or

rules;

(3) fraudulent use of the agent-in-charge identification

card;

(4) selling, distributing, transferring in any manner or

giving cannabis to any unauthorized person;

(5) theft of cannabis, currency or any other items from

a dispensary;

(6) tampering with, falsifying, altering, modifying or

duplicating an agent-in-charge identification card;

(7) tampering with, falsifying, altering or modifying

the surveillance video footage, point-of-sale system or the

Commonwealth's verification system;

(8) failure to notify the board immediately upon

discovery that the agent-in-charge identification card has

been lost, stolen or destroyed;

(9) failure to notify the board within 10 business days

after a change in the information provided in the application

for an agent-in-charge identification card;

(10) intentionally dispensing to purchasers in amounts

above the limits provided in this chapter;

(11) delinquency in filing any required tax returns or

paying any amounts owed to the Commonwealth.

(12) failure to notify the board within 48 hours after a

determination that a dispensary employee has diverted

cannabis or cannabis products or has intentionally dispensed

cannabis or cannabis products in a manner not consistent with

this chapter.

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§ 9244. Inventory control system.

(a) Inventory.--An adult use dispensing organization agent-

in-charge shall have primary oversight of the adult use

dispensing organization's cannabis inventory point-of-sale

system. The inventory point-of-sale system shall be real-time,

web-based, open API, two-way communication and accessible by the

board at any time. The point-of-sale system shall track, at a

minimum, the date of sale, amount, price and currency.

(b) Account.--An adult use dispensing organization shall

establish an account with the board's verification system that

documents:

(1) Each sales transaction at the time of sale and each

day's beginning inventory, acquisitions, sales, disposal and

ending inventory.

(2) Acquisition of cannabis and cannabis-infused

products from a permitted adult use cultivation center or

micro cultivation center, including:

(i) A description of the products, including the

quantity, strain, variety and batch number of each

product received.

(ii) The name and registry identification number of

the permitted adult use cultivation center or micro

cultivation center providing the cannabis and cannabis

products.

(iii) The name and registry identification number of

the permitted adult use cultivation center agent or micro

cultivation center agent delivering the cannabis.

(iv) The name and registry identification number of

the dispensing organization agent receiving the cannabis.

(v) The date of acquisition.

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(3) The disposal of cannabis, including:

(i) A description of the products, including the

quantity, strain, variety, batch number and reason for

the cannabis being disposed.

(ii) The method of disposal.

(iii) The date and time of disposal.

dispensing organization shall confirm the product's name, strain

name, weight and identification number on the manifest matches

the information on the cannabis product label and package. The

product name listed and the weight listed in the Commonwealth's

verification system shall match the product packaging.

(d) Monthly inventory.--The agent-in-charge shall conduct a

monthly inventory reconciliation documenting and balancing

cannabis inventory by confirming the board's verification system

matches the adult use dispensing organization's point-of-sale

system and the amount of physical product at the dispensary. The

following shall apply:

(1) An adult use dispensing organization must receive

board approval before completing an inventory adjustment. An

adult use dispensing organization shall provide a detailed

reason for the adjustment. Inventory adjustment documentation

shall be kept at the dispensary or maintained electronically

for two years from the date performed.

(2) If the adult use dispensing organization identifies

an imbalance in the amount of cannabis after the daily

inventory reconciliation due to mistake, the dispensing

organization shall determine how the imbalance occurred and

take and document corrective action. If the adult use

dispensing organization cannot identify the reason for the

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mistake within two calendar days after first discovery, the

adult use dispensing organization shall inform the board

immediately in writing of the imbalance and the corrective

action taken to date. The adult use dispensing organization

shall work diligently to determine the reason for the

mistake.

(3) If the adult use dispensing organization identifies

an imbalance in the amount of cannabis after the daily

inventory reconciliation or through other means due to theft,

criminal activity or suspected criminal activity, the adult

use dispensing organization shall determine how the reduction

occurred and take and document corrective action. Within 24

hours after the first discovery of the reduction due to

theft, criminal activity or suspected criminal activity, the

adult use dispensing organization shall inform the board and

the Pennsylvania State Police in writing.

(4) The adult use dispensing organization shall file an

annual compilation report with the board, including a

financial statement that shall include an income statement,

balance sheet, profit and loss statement, statement of cash

flow, wholesale cost and sales and any other documentation

requested by the board in writing. The financial statement

shall include any other information the board deems necessary

in order to effectively administer this chapter and all

rules, orders and final decisions promulgated under this

chapter. Statements required by this section shall be filed

with the board within 60 days after the end of the calendar

year. The compilation report shall include a letter authored

by a permitted certified public accountant that it has been

reviewed and is accurate based on the information provided.

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The adult use dispensing organization, financial statement

and accompanying documents may not be audited unless

specifically requested by the board.

(e) Documentation.--An adult use dispensing organization

shall:

(1) Maintain the documentation required in this section

in a secure locked location at the adult use dispensing

organization, an offsite approved office or electronically,

for two years from the date on the document.

(2) Provide any documentation required to be maintained

in this section to the board for review upon request.

(3) If maintaining a bank account, retain for a period

of two years, electronically or otherwise, a record of each

deposit or withdrawal from the bank account.

(f) Return policy.--If an adult use dispensing organization

chooses to have a return policy for cannabis and cannabis-

infused products, the adult use dispensing organization shall

seek prior approval from the board, including as to how returned

cannabis or cannabis-infused products will be stored and

quarantined from other inventory.

§ 9245. Storage requirements.

(a) Authorized on-premises storage.--An adult use dispensing

organization must store inventory on its premises. All inventory

stored on the premises must be secured in a restricted access

area and tracked consistently with the inventory tracking rules.

An adult use dispensing organization shall be of suitable size

and construction to facilitate cleaning, maintenance and proper

operations and shall maintain adequate lighting, ventilation,

temperature, humidity control and equipment.

(b) Tampered containers.--A cannabis container that has been

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tampered with, damaged or opened shall be labeled with the date

opened and quarantined from other cannabis products in the vault

until they are disposed. Cannabis that was tampered with,

expired or damaged may not be stored at the premises for more

than 14 calendar days.

container and clearly labeled. Samples shall be maintained in

the restricted access area.

(d) Storage.--The adult use dispensing organization storage

areas shall be maintained in accordance with the security

requirements in this chapter and any rules promulgated by the

board. Cannabis must be stored at appropriate temperatures and

under appropriate conditions to help ensure that its packaging,

strength, quality and purity are not adversely affected.

§ 9246. Destruction and disposal of cannabis.

(a) Destruction.--Cannabis and cannabis-infused products

must be destroyed by rendering them unusable using methods

approved by the board that comply with this chapter and rules

promulgated by the board. Cannabis waste rendered unusable must

be promptly disposed according to this chapter and rules.

Disposal of the cannabis waste rendered unusable may be

delivered to a permitted solid waste facility for final

disposition. Acceptable permitted solid waste facilities

include:

(1) compostable; and

(2) noncompostable mixed-waste facilities.

(b) Waste inventory.--All waste and unusable cannabis,

cannabis concentrates and cannabis-infused products shall be

weighed, recorded and entered into the inventory system prior to

rendering it unusable. Verification of waste inventory shall be

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performed by an agent-in-charge and conducted in an area with

video surveillance. Electronic documentation of destruction and

disposal shall be maintained for a period of at least two years.

§ 9247. Security.

(a) General rule.--An adult use dispensing organization

shall implement security measures to protect the premises and

purchasers and deter and prevent entry into and theft of

cannabis or currency and shall submit any changes to the floor

plan or security plan to the board for preapproval. All cannabis

shall be maintained and stored in a restricted access area

during construction. Security measures shall:

(1) Establish a locked door or barrier between the

facility's adult use dispensing organization's entrance and

the limited access area.

(2) Prevent individuals from remaining on the premises

if they are not engaging in activity permitted by this

chapter or rules promulgated by the board.

(3) Develop a policy that addresses the maximum capacity

and purchaser flow in the waiting rooms and limited access

areas.

(4) Dispose of cannabis in accordance with this chapter

and rules promulgated by the board.

(5) During hours of operation, store and dispense all

cannabis from the limited access area. During operational

hours, cannabis shall be stored in an enclosed, locked space

or cabinet and accessible only to specifically authorized

adult use dispensing organization agents.

(6) When the dispensary is closed, store all cannabis

and currency in a reinforced vault room in the restricted

access area and in a manner as to prevent diversion , theft or

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loss.

(7) Keep the reinforced vault room and any other

equipment or cannabis storage areas securely locked and

protected from unauthorized entry.

(8) Keep an electronic daily log of adult use dispensing

organization agents with access to the reinforced vault room

and knowledge of the access code or combination.

(9) Keep all locks and security equipment in good

working order.

(10) Maintain an operational security and alarm system

at all times.

(11) Prohibit keys, if applicable, from being left in

the locks or stored or placed in a location accessible to

individuals other than specifically authorized personnel.

(12) Prohibit accessibility of security measures,

including combination numbers, passwords or electronic or

biometric security systems to individuals other than

specifically authorized adult use dispensing organization

agents.

(13) Ensure that the dispensary interior and exterior

premises are sufficiently lit to facilitate surveillance.

(14) Ensure that trees, bushes and other foliage outside

of the dispensary premises do not allow for individuals to

conceal themselves from sight.

(15) Develop emergency policies and procedures for

securing all product and currency following any instance of

diversion , theft or loss of cannabis and conduct an

assessment to determine whether additional safeguards are

necessary.

(16) Develop sufficient additional safeguards in

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response to any special security concerns, or as required by

the board.

(b) Alternative security.--The board may request or approve

alternative security provisions that the board determines are an

adequate substitute for a security requirement specified in this

section. Any additional protections may be considered by the

board in evaluating overall security measures. An adult use

dispensing organization shall provide additional security as

needed and, in a manner, appropriate for the community where it

operates.

following shall apply:

(1) All restricted access areas must be identified by

the posting of a sign that is a minimum of 12 inches by 12

inches and that states: "Do Not Enter - Restricted Access

Area - Authorized Personnel Only" in lettering no smaller

than one inch in height.

(2) All restricted access areas shall be clearly

described in the floor plan of the premises, in the form and

manner determined by the board, including reflecting walls,

partitions, counters and all areas of entry and exit. The

floor plan shall show all storage, disposal and retail sales

areas.

(3) All restricted access areas must be secure, with

locking devices that prevent access from the limited access

areas.

(4) An adult use dispensing organization's security

shall have an adequate security plan and security system to

prevent and detect diversion , theft or loss of cannabis,

currency or unauthorized intrusion using commercial grade

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equipment installed by a permitted or licensed alarm

contractor or private alarm contractor agency in this

Commonwealth that shall, at a minimum, include:

(i) A perimeter alarm on all entry points and glass

break protection on perimeter windows.

(ii) A failure notification system that provides an

audible, text or visual notification of any failure in

the surveillance system, including panic buttons, alarms

and video monitoring systems.

(iii) A duress alarm, panic button, alarm or holdup

alarm and after-hours intrusion detection alarm that by

design and purpose will directly or indirectly notify, by

the most efficient means, the public safety answering

point for the law enforcement agency having primary

jurisdiction.

(iv) Security equipment to deter and prevent

unauthorized entrance into the dispensary, including

electronic door locks on the limited access and

restricted access areas that include devices or a series

of devices to detect unauthorized intrusion that may

include a signal system interconnected with a radio

frequency method, cellular, private radio signals or

other mechanical or electronic device.

(5) All security system equipment and recordings shall

be maintained in good working order, in a secure location so

as to prevent theft, loss, destruction or alterations.

(6) Access to surveillance monitoring recording

equipment shall be limited to persons who are essential to

surveillance operations, law enforcement authorities acting

within their jurisdiction, security system service personnel

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and the board. A current list of authorized adult use

dispensing organization agents and service personnel that

have access to the surveillance equipment must be available

to the board upon request.

(7) All security equipment shall be inspected and tested

at regular intervals, not to exceed one month from the

previous inspection and tested to ensure the systems remain

functional.

(8) The security system shall provide protection against

theft and diversion that is facilitated or hidden by

tampering with computers or electronic records.

(9) The dispensary shall ensure all access doors are not

solely controlled by an electronic access panel to ensure

that locks are not released during a power outage.

(d) Video surveillance.--To monitor the dispensary, the

adult use dispensing organization shall incorporate continuous

electronic video monitoring. The following shall apply:

(1) Security monitors shall be 19 inches or greater in

screen size.

(2) All video surveillance of all enclosed dispensary

areas, unless prohibited by law, including all points of

entry and exit that shall be unobstructed and appropriate for

the normal lighting conditions of the area under

surveillance. The cameras shall be directed so all areas are

captured, including safes, vaults, sales areas and areas

where cannabis is stored, handled, dispensed or destroyed.

Cameras shall be angled to allow for facial recognition, the

capture of clear and certain identification of any person

entering or exiting the dispensary area and in lighting

sufficient during all times of night and day.

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(3) All video surveillance of outside areas, the

storefront and the parking lot shall be unobstructed and

shall be appropriate for the normal lighting conditions of

the area under surveillance. Cameras shall be angled to allow

for the capture of facial recognition, clear and certain

identification of any person entering or exiting the

dispensary and the immediate surrounding area, and permit

registration plates of vehicles in the parking lot.

(4) There shall be 24-hour recordings from all video

cameras available for immediate viewing by the board upon

request. Recordings may not be destroyed or altered and shall

be retained for at least 90 days. Recordings shall be

retained as long as necessary if the adult use dispensing

organization is aware of the loss or theft of cannabis or a

pending criminal, civil or administrative investigation or

legal proceeding for which the recording may contain relevant

information.

(5) The security system shall have the ability to

immediately produce a clear, color still photo from the

surveillance video, either live or recorded.

(6) A date and time stamp shall be embedded on all video

surveillance recordings. The date and time shall be

synchronized and set correctly and shall not significantly

obscure the picture.

(7) The security system shall have the ability to remain

operational during a power outage and ensure all access doors

are not solely controlled by an electronic access panel to

ensure that locks are not released during a power outage.

(8) All video surveillance equipment shall allow for the

exporting of still images in an industry standard image

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format. Exported video shall have the ability to be archived

in a proprietary format that ensures authentication of the

video and guarantees that no alteration of the recorded image

has taken place. Exported video shall also have the ability

to be saved in an industry standard file format that can be

played on a standard computer operating system. All

recordings shall be erased or destroyed before disposal.

(9) A video camera or cameras recording at each point-

of-sale location allowing for the identification of the

dispensing organization agent distributing the cannabis and

any purchaser. The camera or cameras shall capture the sale,

the individuals and the computer monitors used for the sale.

(10) A failure notification system that provides an

audible and visual notification of any failure in the

electronic video monitoring system.

(11) All electronic video surveillance monitoring must

record at least the equivalent of eight frames per second

triggered by motion and be available as recordings to the

board and the Pennsylvania State Police 24 hours a day via a

secure web-based portal with reverse functionality.

(e) Additional requirements.--The requirements contained in

this chapter are minimum requirements for operating an adult use

dispensing organization. The board may establish additional

requirements by rule.

§ 9248. Recordkeeping.

(a) Record retention.--Adult use dispensing organization

records must be maintained electronically for two years and be

available for inspection by the board upon request. Required

written records include:

(1) Operating procedures.

20210SB0473PN1148 - 83 -

(2) Inventory records, policies and procedures.

(3) Security records.

(4) Audit records.

(5) Staff training plans and completion documentation.

(6) Staffing plan.

(7) Business records, including:

(i) Assets and liabilities.

(ii) Monetary transactions.

(iii) Written or electronic accounts, including bank

statements, journals, ledgers and supporting documents,

agreements, checks, invoices, receipts and vouchers.

(iv) Any other financial accounts reasonably related

to the dispensary operations.

(b) Storage and transfer of records.--If an adult use

dispensing organization closes due to insolvency, revocation,

bankruptcy or for any other reason, all records must be

preserved at the expense of the adult use dispensing

organization for at least two years in a form and location in

this Commonwealth acceptable to the board. The adult use

dispensing organization shall keep the records longer if

requested by the board. The adult use dispensing organization

shall notify the board of the location where the dispensary

records are stored or transferred.

§ 9249. Issuance of adult use cultivation permits.

(a) General rule.--On or after January 1, 2022, the board by

rule may:

(1) Modify or change the number of adult use cultivation

center permits available, which shall at no time exceed five

permits, other than those permits issued to current

grower/processors under this chapter.

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(2) Modify or change the permitting application process

to reduce or eliminate the barriers to permits, particularly

for social and economic equity applicants, and shall make

modifications to remedy evidence of discrimination.

(b) Additional permits.--Should the board determine that

additional adult use cultivation center permits should be issued

other than those permits issued to current grower/processors

under C hapter 94 (relating to medical marijuana), the board

shall ensure that the first three of the up to five additional

permits authorized be awarded to qualified social and economic

equity applicants.

§ 9250. Issuance of adult use cultivation center permits to

current medical marijuana grower/processor permit

holders.

(a) Application.--A medical marijuana grower/processor

holding a valid permit granted under Subchapter E of Chapter 94

(relating to medical marijuana organizations) or Subchapter M of

Chapter 94 (relating to academic clinical research centers and

clinical registrants) as of the effective date of this section

may apply to the board for an adult use cultivation center

permit to grow and process cannabis under this section. An adult

use cultivation center permit issued under this section to a

current grower/processor may operate at up to two locations.

(b) Submission.--A medical marijuana grower/processor

seeking issuance of an adult use dispensing organization permit

to grow and process cannabis shall submit an application on

forms provided by the board. The application must be submitted

by the same individual or entity that holds the medical

marijuana grower/processor registration and include the

following:

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(1) Payment of a nonrefundable application fee of

$100,000 to be deposited into the Cannabis Regulation Fund.

(2) Proof of registration as a medical marijuana

grower/processor that is in good standing.

(3) Submission of the application by the same individual

or entity that holds the medical marijuana grower/processor

permit.

(4) Certification that the applicant will comply with

the requirements contained under Chapter 94 (relating to

medical marijuana), except as provided in this chapter.

(5) The legal name of the grower/processor.

(6) The physical address of the grower/processor.

(7) The name, address, Social Security number and date

of birth of each principal officer and board member of the

grower/processor, each of whom shall be at least 21 years of

age.

(8) A nonrefundable cannabis business development fee

equal to 5% of the grower/processor's total sales between

June 1, 2020, to June 1, 2021, or $750,000, whichever is

less, but no less than $250,000, to be deposited into the

Cannabis Business Development Fund.

(9) A commitment to completing one of the following

social and economic equity inclusion plans provided for in

this subsection prior to the expiration of the adult use

cultivation center permit:

(i) contribute 5% of total sales from June 1, 2020,

to June 1, 2021, or $100,000, whichever is less, to the

Cannabis Business Development Fund. This is in addition

to the fees required under this subsection;

(ii) make a grant of 5% of total sales from June 1,

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2020, to June 1, 2021, or $100,000, whichever is less, to

a cannabis industry training or education program in this

Commonwealth;

(iii) donate $100,000 or more to a program that

provides job training services to persons recently

incarcerated or that operates in a disproportionately

impacted area;

(iv) participate as a host in a cannabis business

establishment incubator program approved by the

Commonwealth Financing Authority and in which an adult

use cultivation center permit holder agrees to provide a

loan of at least $100,000 and mentorship to incubate, for

at least a year, a social and economic equity applicant

intending to seek a permit or a permittee that qualifies

as a social and economic equity applicant. As used in

this subparagraph, "incubate" means providing direct

financial assistance and training necessary to engage in

permitted cannabis industry activity similar to that of

the host permittee. The adult use cultivation center

permit holder or the same entity holding any other

permits issued pursuant to this chapter shall not take an

ownership stake in any business receiving incubation

services to comply with this subsection. If an adult use

cultivation center permit holder fails to find a business

to incubate to comply with this subsection, after

reasonable efforts, before the adult use cultivation

center permit expires, the adult use cultivation center

permit holder may opt to meet the requirement of this

subsection by completing another item from this

subsection; or

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(v) participate in a sponsorship program for at

least two years approved by the Commonwealth Financing

Authority in which an adult use cultivation center permit

holder agrees to provide an interest-free loan of at

least $200,000 to a social and economic equity applicant.

The sponsor shall not take an ownership stake in any

social and economic equity applicant receiving

sponsorship services to comply with this subsection.

shall be in addition to any permit fee required for renewal.

(d) Submission and approval.--An applicant under this

section must submit all required information, including the

requirements in subsection (b), to the board. Failure by an

applicant to submit all required information may result in the

application being disqualified or delayed. If an applicant meets

all the requirements of subsection (b), the board shall issue

the adult use cultivation center permit within 14 days of

receiving a completed application unless:

(1) the permittee or a principal officer is delinquent

in filing any required tax returns or paying any amounts owed

to the Commonwealth;

(2) the board determines there is reason, based on

documented compliance violations, the permittee is not

entitled to an adult use cultivation center permit; or

(3) any principal officer fails to register and remain

in compliance with this chapter.

(e) Growing.--A registered medical marijuana

grower/processor that obtains an adult use cultivation center

permit may begin growing and processing adult use cannabis,

cannabis-infused products, cannabis concentrates and related

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items under the rules promulgated by the board under this

chapter immediately upon receiving an adult use cultivation

center permit from the board and authorization to begin

operations at its individual locations. The board may approve

one initial location to begin operations before separately

approving another location. An adult use cultivation center that

obtains a permit from the board may begin selling cannabis,

cannabis-infused products and cannabis concentrates on January

1, 2022.

(f) Product shortage.--If there is a shortage of cannabis or

cannabis products, an adult use cultivation center holding both

a grower/processor permit under C hapter 94 and an adult use

cultivation center permit shall prioritize serving patients and

caregivers.

(g) Construction.--Nothing in this section shall be

construed to prevent or constrain an existing medical marijuana

grower/processor that receives an adult use cultivation center

permit from relocating its existing facility, before or after

receiving its adult use cultivation center permit, in accordance

with procedures for relocation in this chapter or any rules

promulgated by the board.

§ 9251. New adult use cultivation center permits.

If the board makes available an additional adult use

cultivation center permit under section 9249 (relating to

issuance of adult use cultivation permits), an applicant for an

additional adult use cultivation center permit shall

electronically submit the following in a form as the board may

direct:

(1) the nonrefundable application fee set by the board,

to be deposited into the Cannabis Regulation Fund;

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(2) the legal name of the cultivation center;

(3) the proposed physical address of the adult use

cultivation center;

(4) the name, address, Social Security number and date

of birth of each principal officer and board member of the

adult use cultivation center, each of whom shall be at least

21 years of age;

(5) the details of any administrative or judicial

proceeding in which any of the principal officers or board

members of the adult use cultivation center:

(i) pled guilty, were convicted, fined or had a

registration or license suspended or revoked; or

(ii) managed or served on the board of a business or

nonprofit organization that pled guilty, was convicted,

fined or had a registration or license suspended or

revoked;

(6) proposed operating bylaws that include procedures

for the oversight of the adult use cultivation center,

including the development and implementation of a plant

monitoring system, including a weekly physical inventory of

all plants and cannabis and accurate recordkeeping, staffing

plans and security plans approved by the Pennsylvania State

Police that are in accordance with the rules issued by the

board under this chapter;

(7) verification from the Pennsylvania State Police that

all background checks of the prospective principal officers,

board members and agents of the cannabis business

establishment have been conducted;

(8) a copy of the current local zoning ordinance or

permit and verification that the proposed adult use

20210SB0473PN1148 - 90 -

cultivation center is in compliance with the local zoning

rules and distance limitations established by the local

jurisdiction;

(9) proposed employment practices, in which the

applicant must demonstrate a plan of action to inform, hire

and educate minorities, women, veterans and persons with

disabilities and engage in fair labor practices which provide

worker protections;

(10) whether an applicant can demonstrate experience in

or business practices that promote economic empowerment in

disproportionately impacted areas;

(11) experience with the cultivation of agricultural or

horticultural products, operating an agriculturally-related

business or operating a horticultural business;

(12) a description of the enclosed, locked facility

where cannabis will be grown, harvested, manufactured,

processed, packaged or otherwise prepared for distribution to

a dispensing organization or customer or qualified patient,

pursuant to home delivery services, as approved by the board;

(13) a survey of the enclosed and locked facility,

including the space used for cultivation and processing;

(14) cultivation, processing, inventory and packaging

plans;

(15) a description of the applicant's experience with

agricultural cultivation techniques and industry standards;

(16) a list of any academic degrees, certifications or

relevant experience of all prospective principal officers,

board members and agents of the related business;

(17) the identity, including the name and address, of

every person having a financial or voting interest of 5% or

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greater in the adult use cultivation center operation with

respect to which the permit is sought, whether a trust,

corporation, partnership, limited liability company or sole

proprietorship;

(18) a plan describing how the adult use cultivation

center will address each of the following:

(i) energy needs, including estimates of monthly

electricity and gas usage, from the identified location

of a utility, whether local or on-site generation, and

any intended use to adopt a sustainable energy use and

energy conservation policy;

(ii) water needs, including estimated water draw and

intended use of a sustainable water use and water

conservation policy; and

(iii) waste management, including adoption of a

waste reduction policy;

(19) a diversity plan, including specifying the

percentage of the applicant's operating budget that will be

dedicated to contracting with or otherwise working with

minority-owned business enterprises, women-owned business

enterprises or veteran-owned business enterprises;

(20) a recycling plan, including the following

requirements:

(i) purchaser packaging, including cartridges, shall

be accepted by the applicant and recycled;

(ii) any recyclable waste generated by the

cultivation center shall be recycled per applicable State

and local laws, ordinances and rules; and

(iii) any cannabis waste, liquid waste or hazardous

waste shall be disposed of in accordance with State law,

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except, to the greatest extent feasible, all cannabis

plant waste will be rendered unusable by grinding and

incorporating the cannabis plant waste with compostable

mixed waste to be disposed of in accordance with

Commonwealth law;

(21) commitment to comply with Federal, State and local

waste provisions, including applicable Federal and State

environmental requirements, including:

(i) storing, securing and managing all recyclables

and waste, including organic waste composed of or

containing finished cannabis and cannabis products; and

(ii) disposing liquid waste containing cannabis or

byproducts of cannabis processing in compliance with all

applicable Federal and State requirements;

(22) a commitment to a technology standard for resource

efficiency of the adult use cultivation center; and

(23) any other information required by rule.

§ 9252. Selection criteria for new adult use cultivation center

permits.

(a) Application.--An applicant for an adult use cultivation

center permit under section 9251 (relating to new adult use

cultivation center permits) must submit all required information

to the board. Failure by an applicant to submit all required

information may result in the application being disqualified. If

the board receives an application that fails to provide the

required elements contained in this section, that section may

not be scored.

(b) Scoring.--The board shall, by rule, develop a merit-

based scoring system in which to award new adult use cultivation

center permits under section 9251. An applicant shall be awarded

20210SB0473PN1148 - 93 -

points on their application, as determined by the board, in

categories including:

(1) Suitability of the proposed facility.

(2) Suitability of employee training plan.

(3) Security and recordkeeping.

(4) Cultivation or processing plan.

(5) Product safety and labeling plan.

(6) Business plan.

(7) Labor and employment practices.

(8) Environmental plan.

(9) Whether or not the applicant is 51% or more owned

and controlled by an individual or individuals who have been

residents of this Commonwealth for the past five years as

proven by tax records or two of the following:

(i) a signed lease agreement that includes the

applicant's name;

(ii) a property deed that includes the applicant's

name;

(iii) school records;

(iv) a voter registration card;

(v) a Pennsylvania driver's license, a State

identification card or a Pennsylvania person with a

disability registration plate ;

(vi) a paycheck stub;

(vii) a utility bill; or

(viii) any other proof of residency or other

information necessary to establish residence as provided

by rule.

(10) A diversity plan, which includes specifying the

percentage of the applicant's operating budget that will be

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dedicated to contracting with or otherwise working with

minority-owned business enterprises, women-owned business

enterprises or veteran-owned business enterprises.

(11) The applicant's plan to engage with the community.

(12) Any other criteria the board may set by rule for

points.

anonymously under the rules established by the board. The board

shall develop tie-breaker language that governs the process

through which an applicant is awarded adult use cultivation

center permits when multiple applicants receive the same

application score and the awarding of adult use cultivation

center permits to all tied applicants would result in awarding

more adult use cultivation center permits than is permissible

under this chapter. Any tie-breaking process shall be designed

to ensure clarity, transparency and fairness.

(d) Review and scoring.--Each application shall be reviewed

and scored by three individuals who will score each application

independently of each other. An applicant's score on each

section of the application shall be an average of the three

scores awarded by each individual scorer. The scoring system

developed by the board shall be designed so that an applicant

may not receive full points simply for providing responsive

information on a section of the application.

(e) Eligibility.--An applicant may file no more than one

application in any single application period.

(f) Fee.--Should an applicant be awarded an adult use

cultivation center permit, the applicant shall pay a fee prior

to receiving the permit which shall be deposited into the

Cannabis Regulation Fund, the amount to be set by the board.

20210SB0473PN1148 - 95 -

§ 9253. Adult use cultivation center requirements and

prohibitions.

(a) Requirements.--The operating documents of an adult use

cultivation center shall include procedures for the oversight of

the adult use cultivation center, a cannabis plant monitoring

system including a physical inventory recorded weekly, accurate

recordkeeping and a staffing plan.

(b) Security plan.--An adult use cultivation center shall

implement a security plan reviewed by the Pennsylvania State

Police that includes facility access controls, perimeter

intrusion detection systems, personnel identification systems, a

24-hour surveillance system to monitor the interior and exterior

of the adult use cultivation center facility and accessibility

to authorized law enforcement, and the board in real time .

cultivation center must take place in an enclosed, locked

facility at the physical address provided to the board during

the licensing process. The adult use cultivation center location

shall only be accessed by the agents working for the adult use

cultivation center, the board staff performing inspections and

State law enforcement or other emergency personnel, contractors

working on jobs unrelated to cannabis or other individuals as

provided by rule.

(d) Sale prohibited.--An adult use cultivation center may

not sell or distribute any cannabis or cannabis products to any

person other than an adult use dispensing organization or as

otherwise authorized by rule or the board, including home

delivery to customers and patients.

(e) Pricing.--An adult use cultivation center may not either

directly or indirectly discriminate in price between different

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dispensing organizations that are purchasing a like grade,

strain, brand and quality of cannabis or cannabis product.

Nothing in this subsection shall prevent adult use cultivation

centers from pricing cannabis differently based on differences

in the cost of manufacturing or processing, the quantities sold,

such as volume discounts, or the way the products are delivered.

(f) Data collection system.--All cannabis harvested by an

adult use cultivation center and intended for distribution to an

adult use dispensing organization must be entered into a data

collection system, packaged and labeled and placed into a

cannabis container for transport.

(g) Random inspection.--An adult use cultivation center

shall be subject to random inspections by the board and the

Pennsylvania State Police.

(h) Loss notification.--An adult use cultivation center

agent shall notify local law enforcement, the Pennsylvania State

Police and the board within 24 hours of the discovery of any

loss or theft. Notification shall be made by phone or in person,

or by written or electronic communication.

(i) Pesticides.--An adult use cultivation center shall

comply with all Federal and State rules and regulations

regarding the use of pesticides on cannabis plants. The board

shall promulgate reasonable rules allowing pesticide use in

accordance with thresholds permitted in other adult use and

medical marijuana markets.

(j) Process.--An adult use cultivation center may process

cannabis, cannabis concentrates and cannabis-infused products.

(k) Compliance.--An adult use cultivation center must comply

with any other requirements or prohibitions set by

administrative rule of the board.

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§ 9254. Issuance of micro cultivation center permits.

(a) Limitation.--An applicant may file no more than one

application in any single application period.

(b) Issuance.--The board shall issue up to 100 micro

cultivation center permits by July 1, 2022. By July 1, 2023, the

board shall issue up to an additional 50 micro cultivation

center permits. Prior to issuing a permit, the board may adopt

rules to modify or raise the number of micro cultivation center

permits or modify or change the permitting application process

to reduce or eliminate barriers for an applicant. In determining

whether to exercise the authority granted under this subsection,

the board must consider the following factors:

(1) the percentage of cannabis sales occurring in this

Commonwealth not in the regulated market;

(2) whether there is an adequate supply of cannabis and

cannabis products to serve patients;

(3) whether there is an adequate supply of cannabis and

cannabis products to serve purchasers;

(4) whether there is an oversupply of cannabis in this

Commonwealth leading to trafficking of cannabis to states

where the sale of cannabis is not permitted by law;

(5) population increases or shifts;

(6) the density of micro cultivation centers in any area

of this Commonwealth;

(7) perceived security risks of increasing the number or

location of micro cultivation centers;

(8) the past safety record of micro cultivation centers;

(9) the board's capacity to appropriately regulate

additional permittees;

(10) the findings and recommendations from the

20210SB0473PN1148 - 98 -

Commonwealth Financing Authority with respect to social and

economic equity applicant participation; and

(11) any other criteria the board deems relevant.

rule further modify or raise the number of micro cultivation

center permits and modify or change the permitting application

process to reduce or eliminate barriers for applicants based on

the criteria in subsection (b). At no time may the number of

micro cultivation center permits exceed 300. An individual or

entity awarded a permit under this section may sell its micro

cultivation center permit subject to the restrictions of this

chapter or as determined by administrative rule.

(d) Space.--A micro cultivation center may not contain more

than 3,000 square feet of canopy space for plants in the

flowering stage for cultivation of cannabis as provided in this

chapter. A micro cultivation center may share a premises with an

adult use dispensing organization, provided each permittee

stores currency and cannabis and cannabis products in a separate

secured vault to which the other permittee does not have access

or all permittees sharing a vault share more than 50% of the

same ownership.

§ 9255. Micro cultivation center permit applications.

(a) General rule.--When applying for a license, the

applicant for a micro cultivation center permit shall

electronically submit the following to the board as the board

may direct:

(1) the nonrefundable application fee of $2,500 to be

deposited into the Cannabis Regulation Fund, or another

amount as the board may set by rule after January 1, 2022;

(2) the legal name of the micro cultivation center;

20210SB0473PN1148 - 99 -

(3) the proposed physical address of the micro

cultivation center;

(4) the name, address, Social Security number and date

of birth of each principal officer and board member of the

micro cultivation center, including each principal officer

and board member that is at least 21 years of age;

(5) the details of any administrative or judicial

proceeding in which any of the principal officers or board

members of the micro cultivation center pled guilty, were

convicted, were fined or had a registration or license

suspended or revoked or managed or served on the board of a

business or nonprofit organization that pled guilty, was

convicted, was fined or had a registration or license

suspended or revoked;

(6) proposed operating bylaws that include a weekly

inventory of all plants and procedures for cultivating

cannabis and oversight of the micro cultivation center,

including the development and implementation of a plant

monitoring system, accurate recordkeeping, staffing plan and

a security plan approved by the Pennsylvania State Police

that is in accordance with the rules issued by the board

under this chapter;

(7) verification from the Pennsylvania State Police that

all background checks of the prospective principal officers,

board members and agents of the cannabis business

establishment have been conducted;

(8) a copy of the current local zoning ordinance or

permit and verification that the proposed micro cultivation

center is in compliance with the local zoning rules and

distance limitations established by the local jurisdiction;

20210SB0473PN1148 - 100 -

(9) proposed employment practices, in which the

applicant must demonstrate a plan of action to inform, hire

and educate minorities, women, veterans and persons with

disabilities and engage in fair labor practices and worker

protections;

(10) a diversity plan, including specifying the

percentage of an applicant's operating budget that will be

dedicated to contracting with or otherwise working with

minority-owned business enterprises, women-owned business

enterprises or veteran-owned business enterprises;

(11) whether an applicant can demonstrate experience in

business practices that promote economic empowerment in

disproportionately impacted areas;

(12) experience with the cultivation of agricultural or

horticultural products, operating an agriculturally related

business or operating a horticultural business;

(13) a copy of the proposed business plan that complies

with the requirements in this chapter, including:

(i) a description of services to be offered; and

(ii) a description, without revealing trade secrets

or proprietary information, of the process of cultivating

cannabis;

(14) a description of the enclosed, locked facility

where cannabis will be grown, harvested, packaged or

otherwise prepared for distribution to a cannabis business

establishment;

(15) a survey of the enclosed, locked facility,

including the space used for cultivation;

(16) cultivation, inventory and packaging plans;

(17) a description of the applicant's experience with

20210SB0473PN1148 - 101 -

agricultural cultivation techniques and industry standards;

(18) a list of any academic degrees, certifications or

relevant experience of all prospective principal officers,

board members and agents of the related business;

(19) the identity of every person having a financial or

voting interest of 5% or greater in the micro cultivation

center operation, including the name and address of each

person;

(20) a plan describing how the micro cultivation center

will address each of the following:

(i) energy needs, including estimates of monthly

electricity and gas usage, to what extent it will procure

energy from a local utility or from on-site generation

and if it has or will adopt a sustainable energy use and

energy conservation policy;

(ii) water needs, including estimated water draw and

if it has or will adopt a sustainable water use and water

conservation policy; and

(iii) waste management, including if it has or will

adopt a waste reduction policy;

(21) a recycling plan, including:

(i) A provision stating purchaser packaging,

including cartridges, shall be accepted by the applicant

and recycled.

(ii) A requirement that any recyclable waste

generated by the micro cultivation center shall be

recycled per applicable Commonwealth and local laws,

ordinances and rules.

(iii) A requirement that any cannabis waste, liquid

waste or hazardous waste shall be disposed of in

20210SB0473PN1148 - 102 -

accordance with the laws of this Commonwealth, except, to

the greatest extent feasible, all cannabis plant waste

will be rendered unusable by grinding and incorporating

the cannabis plant waste with compostable mixed waste to

be disposed of in accordance with applicable law;

(22) a commitment to comply with local waste provisions,

including a commitment that a micro cultivation center must

remain in compliance with applicable Federal and State

environmental requirements, including provisions related to:

(i) storing, securing and managing all recyclables

and waste, including organic waste composed of or

containing finished cannabis and cannabis products; and

(ii) disposing liquid waste containing cannabis or

byproducts of cannabis processing;

(23) a commitment to a technology standard for resource

efficiency of the micro cultivation center according to

standards established by the board; and

(24) any other information required by rule.

(b) Submission.--An applicant must submit all required

information to the board. Failure by an applicant to submit all

required information may result in the application being

disqualified.

§ 9256. Selection criteria for micro cultivation center

permits.

(a) Incomplete application.--If the board receives an

application that fails to provide the required elements

contained in a section, that section may not be scored.

(b) Scoring.--The board shall by rule develop a merit-based

scoring system in which to award micro cultivation center

permits. Social and economic equity applicants shall receive a

20210SB0473PN1148 - 103 -

competitive advantage in the form of a scoring bonus on their

applications, as determined by the board. The board shall also

award a scoring bonus to applicants that are existing farming

operations.

applications, as determined by the board, in the following

categories:

(1) suitability of the proposed facility;

(2) suitability of the employee training plan;

(3) security and recordkeeping;

(4) cultivation plan;

(5) product safety and labeling plan;

(6) business plan;

(7) the applicant's status as:

(i) a social and economic equity applicant; or

(ii) an existing farming operation;

(8) labor and employment practices;

(9) environmental plan;

(10) whether or not the applicant is 51% or more owned

and controlled by an individual or individuals who have been

residents of this Commonwealth for the past five years as

proved by tax records or two of the following:

(i) a signed lease agreement that includes the

applicant's name;

(ii) a property deed that includes the applicant's

name;

(iii) school records;

(iv) a voter registration card;

(v) a Pennsylvania driver's license, a State

identification card or a Pennsylvania Person with a

20210SB0473PN1148 - 104 -

Disability registration plate ;

(vi) a paycheck stub;

(vii) a utility bill; or

(viii) any other proof of residency or other

information necessary to establish residence as provided

by rule;

(11) a diversity plan, which includes specifying the

percentage of an applicant's operating budget that will be

dedicated to contracting with or otherwise working with

minority-owned business enterprises, women-owned business

enterprises or veteran-owned business enterprises;

(12) the applicant's plan to engage with the community;

and

(13) any other criteria the board may set by rule for

points.

(d) Anonymity.--Applications shall be scored by the board

anonymously according to rules established by the board. The

board shall develop tie-breaker language that governs the

process through which some applicants are to be awarded permits

when multiple applicants receive the same application score and

the awarding of permits to all tied applicants would result in

awarding more permits than is permissible under this chapter.

Any tie-breaking process shall be designed to ensure clarity,

transparency and fairness. Each application shall be reviewed

and scored by three individuals who shall score each application

independently of each other. An applicant's score on each

section of the application shall be an average of the three

scores awarded by each individual scorer.

(e) Award of points.--Other than in cases where an applicant

provides necessary documentation of a status as a social and

20210SB0473PN1148 - 105 -

economic equity applicant, a resident of this Commonwealth or an

existing farming operation, the scoring system developed by the

board shall be designed so that an applicant may not receive

full points simply for providing responsive information on a

section of the application.

§ 9257. (Reserved).

§ 9258. Micro cultivation center requirements and prohibitions.

(a) Operating documents.--The operating documents of a micro

cultivation center shall include procedures for the oversight of

the micro cultivation center, a cannabis plant monitoring

system, including a physical inventory recorded weekly, accurate

recordkeeping and a staffing plan.

(b) Security plan.--A micro cultivation center shall

implement a security plan reviewed by the Pennsylvania State

Police that includes facility access controls, perimeter

intrusion detection systems, personnel identification systems

and a 24-hour surveillance system to monitor the interior and

exterior of the micro cultivation center that is accessible to

authorized law enforcement and the board in real time.

micro cultivation center must take place in an enclosed, locked

facility at the physical address provided to the board during

the permitting process. The micro cultivation center location

shall only be accessed by the agents working for the micro

cultivation center, the board staff performing inspections,

Commonwealth and local law enforcement or other emergency

personnel, contractors working on jobs unrelated to cannabis,

individuals in a mentoring or educational program approved by

the State or other individuals as provided by rule. If a micro

cultivation center shares a premises with an adult use

20210SB0473PN1148 - 106 -

dispensing organization, agents from those other permittees may

access the micro cultivation center portion of the premises if

the location point is a common area for access to bathrooms,

lunchrooms, locker rooms or other areas of the building where

work or cultivation of cannabis is not performed. At no time may

an adult use dispensing organization agent perform work at a

micro cultivation center without being an employee of the micro

cultivation center.

(d) Sale and distribution limitation.--A micro cultivation

center may not sell or distribute any cannabis to any person

other than a cannabis business establishment, or as otherwise

authorized by rule.

(e) Location limitation.--A micro cultivation center may not

be located in an area zoned for residential use.

(f) Price discrimination.--A micro cultivation center may

not either directly or indirectly discriminate in price between

different cannabis business establishments that are purchasing a

like grade, strain, brand and quality of cannabis or cannabis

product. Nothing in this subsection shall prevent a micro

cultivation center from pricing cannabis differently based on

differences in the cost of manufacturing, processing, quantities

sold, such as volume discounts, or the method of product

delivery.

(g) Data collection system.--All cannabis harvested by a

micro cultivation center and intended for distribution to an

adult use dispensing organization must be entered into a data

collection system, packaged and labeled in compliance with this

chapter and any rules promulgated by the board and, if

distribution is to an adult use dispensing organization that

does not share a premises with the adult use dispensing

20210SB0473PN1148 - 107 -

organization receiving the cannabis, placed into a cannabis

container for transport.

(h) Random inspection.--A micro cultivation center shall be

subject to random inspections by the board and the Pennsylvania

State Police.

(i) Notification of loss or theft.--A micro cultivation

center agent shall notify local law enforcement, the

Pennsylvania State Police and the board within 24 hours of the

discovery of any loss or theft. A notification under this

subsection shall be made by phone, in person or by written or

electronic communication.

(j) Compliance.--A micro cultivation center shall comply

with all Federal and State rules and regulations regarding the

use of pesticides in addition to any rule promulgated by the

board.

(k) Transportation.--A micro cultivation center or micro

cultivation center agent shall be permitted to transport

cannabis or cannabis products to any other cannabis business

establishment. A micro cultivation center may alternatively

enter into a contract with an adult use dispensing organization

or a laboratory related to the transport of cannabis.

(l) Compliance.--A micro cultivation center must comply with

any other requirements or prohibitions set by administrative

rule of the board.

§ 9259. Cannabis business establishment agent identification

cards.

(a) General rule.--The board shall:

(1) establish by rule the information required in an

initial application or renewal application for a cannabis

business establishment agent identification card submitted

20210SB0473PN1148 - 108 -

under this chapter and the nonrefundable fee to accompany the

initial application or renewal application;

(2) require a background check be conducted of any

prospective agent as part of the application process;

(3) establish by rule a requirement that a cannabis

business establishment identification card shall grant the

holder the authority to work at any cannabis business

establishment, including all adult use dispensing

organizations and adult use cultivation centers.

(4) verify the information contained in an initial

application or renewal application for a cannabis business

establishment agent identification card submitted under this

chapter, and approve or deny an application within 14 days of

receiving a completed initial application or renewal

application and all supporting documentation required by

rule;

(5) authorize a cannabis business establishment to print

and issue cannabis business establishment agent

identification cards or to issue a cannabis business

establishment agent identification card to a qualifying agent

within 14 business days of approving the initial application

or renewal application;

(6) authorize a cannabis business establishment agent to

work at a cannabis business establishment after the agent's

application has been approved but prior to issuance of the

cannabis business establishment agent identification card;

and

(7) allow for an electronic initial application and

renewal application process and provide a confirmation by

electronic or other methods that an application has been

20210SB0473PN1148 - 109 -

submitted. The board may by rule require prospective agents

to file an application by electronic means and provide

notices to the agents by electronic means.

(b) Identification.--An agent must keep the cannabis

business establishment agent identification card under this

section visible at all times when on the property of the

cannabis business establishment at which the agent is employed

unless the agent is working after being approved as an agent by

the board but prior to the receipt of the cannabis business

establishment agent's identification card.

establishment agent identification card shall contain the

following:

(1) the name of the cardholder;

(2) the date of issuance and expiration date of the

cannabis business establishment agent identification card;

(3) a random 10-digit alphanumeric identification number

containing at least four numbers and at least four letters

that is unique to the holder; and

(4) a photograph of the cardholder.

(d) Lost identification card.--Any cannabis business

establishment agent identification card lost by an agent shall

be reported to the Pennsylvania State Police and the board

immediately upon discovery of the loss.

(e) Limitation.--The board may not issue a cannabis business

establishment agent identification card if the applicant is

delinquent in filing any required tax returns or paying any

amounts owed to the Commonwealth.

§ 9260. Background check for cannabis business establishment

applicants.

20210SB0473PN1148 - 110 -

(a) Background check.--The board shall require a criminal

history record check, through the Pennsylvania State Police, of

the prospective principal officers, board members and agents of

a cannabis business establishment and cannabis business

establishment agents applying for permits or identification

cards under this chapter. The Pennsylvania State Police shall

charge a fee set by rule for conducting the criminal history

record check and may not exceed the actual cost of the record

check. In order to carry out the provisions of this section,

each cannabis business establishment's prospective principal

officer, board member or agents shall submit a full set of

fingerprints to the Pennsylvania State Police for the purpose of

obtaining a Federal and State criminal record check.

Fingerprints shall be checked against the fingerprint records

now and hereafter, to the extent allowed by law, filed in the

Pennsylvania State Police and Federal Bureau of Investigation

criminal history records databases. The Pennsylvania State

Police shall furnish, following positive identification, all

conviction information to the board. Background checks for all

prospective principal officers, board members and agents shall

be completed prior to submitting the application to the board.

An agent may begin working at a cannabis business establishment

while waiting for the result of any background check.

(b) Construction.--Nothing in this section or chapter shall

be construed to prevent or otherwise inhibit the ability of an

otherwise qualified individual from serving as a principal

officer, board member or agent of a cannabis business

establishment on the sole basis of a nonviolent criminal

conviction related to cannabis.

§ 9261. Renewal of cannabis business establishment permits and

20210SB0473PN1148 - 111 -

cannabis business establishment agent identification

cards.

(a) Renewal.--A permit and identification card issued under

this chapter shall be renewed annually. A cannabis business

establishment and agent shall receive written or electronic

notice 90 days prior to the expiration that the permit will

expire. The board shall grant a renewal within 45 days of

submission of a renewal application if:

(1) the cannabis business establishment submits the

required nonrefundable renewal fee;

(2) the permit or identification card has not been

suspended or revoked for violating this chapter or rules

adopted under this chapter;

(3) the cannabis business establishment has continued to

operate in accordance with all plans submitted as part of its

application and approved by the board or any amendments to

any submitted plan that have been approved by the board;

(4) the cannabis business establishment has submitted an

agent, employee, contracting and subcontracting diversity

report as required by the board and the Commonwealth

Financing Authority; and

(5) for an adult use cultivation center or micro

cultivation center, the cannabis business establishment has

submitted an environmental impact report.

(b) Failure to renew license.--If a cannabis business

establishment fails to renew the establishment's permit prior to

license expiration, the establishment shall cease operations

until the permit is renewed, unless otherwise permitted by the

board.

20210SB0473PN1148 - 112 -

business establishment or cannabis business establishment agent

fails to renew its cannabis business establishment permit or the

agent identification card prior to expiration, the cannabis

business establishment or cannabis business establishment agent

shall cease to operate as a cannabis business establishment or

work as an agent of a cannabis business establishment, as

applicable, until the cannabis business establishment permit or

agent identification card is renewed, unless otherwise permitted

by the board.

(d) Disciplinary action and fines.--Any cannabis business

establishment that continues to operate, or any cannabis

business establishment agent who continues to work as an agent,

after the applicable permit or cannabis business establishment

agent identification card has expired without renewal, absent

board permission, shall be subject to disciplinary action by the

board. All fees or fines collected from the renewal of a

cannabis business establishment permit or identification card

shall be deposited into the Cannabis Regulation Fund.

SUBCHAPTER G

ENFORCEMENT AND IMMUNITIES

Sec.

9265. Permit discipline.

9266. Immunities and presumptions related to handling of

cannabis by cannabis business establishments and

agents.

9267. Commonwealth standards and requirements.

9268. Violation of tax acts and refusal, revocation or

suspension of permit or agent identification card.

§ 9265. Permit discipline.

(a) Board actions.-- Notwithstanding any other civil or

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criminal penalties related to the unlawful possession of

cannabis , the board may take disciplinary or nondisciplinary

action as the board deems proper with regard to a cannabis

business establishment or cannabis business establishment agent,

including fines not to exceed $10,000 for each violation of this

chapter or rules promulgated by the board.

(b) Determination.--The board shall consider permittee

cooperation in any investigation in its determination of

penalties imposed under this section. The procedures for

disciplining a cannabis business establishment or cannabis

business establishment agent and for administrative hearings

shall be determined by rule by the board and shall provide for

the review of final decisions under 2 Pa.C.S. (relating to

administrative law and procedure).

§ 9266. Immunities and presumptions related to handling of

cannabis by cannabis business establishments and

agents.

(a) General rule.--A cannabis business establishment or an

agent of a cannabis business establishment shall not be subject

to the following based solely on conduct that is lawful under

this chapter or any rules promulgated under this chapter:

(1) Prosecution.

(2) Search or inspection, except by the board, under the

authority of the board, or State or local law enforcement

under this chapter.

(3) Seizure.

(4) Penalty in any manner, including civil penalty.

(5) Denial of any right or privilege.

(6) Penalty in any manner, or denial of any right or

privilege, including civil penalty or disciplinary action by

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a business permitting or licensing board or entity for

working for a cannabis business establishment under this

chapter and rules adopted under this chapter.

(b) Prohibition.--Any cannabis, cannabis product, cannabis

paraphernalia, legal property or interest in legal property that

is possessed, owned or used in connection with the use of

cannabis as permitted under this chapter, or acts incidental to

that use, may not be seized or forfeited. Nothing in this

chapter shall be construed to prevent the seizure or forfeiture

of cannabis exceeding the amounts permitted under this chapter

or prevent seizure or forfeiture if the basis for the action is

unrelated to the cannabis that is possessed, manufactured,

transferred or used under this chapter.

shall be construed to preclude State or local law enforcement

from searching an adult use cultivation center, micro

cultivation center or adult use dispensing organization if there

is probable cause to believe that the laws of this Commonwealth

have been violated and the search is conducted in conformance

with law.

(d) Attorney General investigation.--Nothing in this chapter

shall be construed to preclude the Attorney General or other

authorized government agency from investigating or bringing a

civil action against a cannabis business establishment or an

agent of a cannabis business establishment for a violation of

Commonwealth law, including civil rights violations and

violations of the act of December 17, 1968 (P.L.1224, No.387),

known as the Unfair Trade Practices and Consumer Protection Law.

§ 9267. Commonwealth standards and requirements.

Any standards, requirements and rules regarding the health

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and safety, environmental protection, testing, security, food

safety and worker protections established by the Commonwealth

shall be the minimum standards for all permittees under this

chapter, where applicable. Knowing violations of any

Commonwealth or local law, ordinance or rule conferring worker

protections or legal rights on the employees of a permittee may

be grounds for disciplinary action in addition to applicable

penalties under this chapter.

§ 9268. Violation of tax acts and refusal, revocation or

suspension of permit or agent identification card.

(a) General rule.--In addition to other grounds specified in

this chapter, the board, upon notification by the Department of

Revenue, shall refuse the issuance or renewal of a permit or

agent identification card, or suspend or revoke the permit or

agent identification card, of any person for any of the

following:

(1) Failure to file a tax return.

(2) The filing of a fraudulent tax return.

(3) Failure to pay all or part of any tax or penalty

finally determined to be due.

(4) Failure to keep books and records.

(5) Failure to secure and display a certificate or

related registration document, if required.

(6) The willful violation of any rule or regulation of

the Department of Revenue relating to the administration and

enforcement of tax liability.

(b) Resolution.--The Department of Revenue, after a

violation under subsection (a) has been corrected or resolved,

shall, upon request of the subject of the violation, notify the

board that the violations have been corrected or resolved. Upon

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receiving notice from the Department of Revenue that a violation

under subsection (a) has been corrected or otherwise resolved,

the board may issue or renew the permit or agent identification

card or vacate an order of suspension or revocation.

SUBCHAPTER H

LABORATORY TESTING

Sec.

9270. Laboratory testing.

§ 9270. Laboratory testing.

(a) Legality.--Notwithstanding any other provision of law,

the following actions, when performed by a cannabis testing

facility with a current, valid registration or an individual 21

years of age or older who is acting in official capacity as an

owner, employee or agent of a cannabis testing facility, may not

be determined to be unlawful and may not be an offense or be a

basis for seizure or forfeiture of assets under the laws of this

Commonwealth:

(1) possessing, repackaging, transporting, storing or

displaying cannabis or cannabis-infused products;

(2) receiving or transporting cannabis or cannabis

products from a cannabis business establishment or an

individual 21 years of age or older; and

(3) returning or transporting cannabis or cannabis

products to a cannabis business establishment or an

individual 21 years of age or older.

(b) Prohibition.--No laboratory shall handle, test or

analyze cannabis unless approved by the board in accordance with

this section. No laboratory shall be approved to handle, test or

analyze cannabis unless the laboratory:

(1) is accredited by a private laboratory accrediting

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organization;

(2) is independent from all other persons involved in

the cannabis industry in this Commonwealth and no person with

a direct or indirect interest in the laboratory has a direct

or indirect financial, management or other interest in an

adult use cultivation center, micro cultivation center,

dispensary or any other entity in this Commonwealth that may

benefit from the production, manufacturing, dispensing, sale,

purchase or use of cannabis or is affiliated with a

certifying physician under Chapter 94 (relating to medical

marijuana); and

(3) has employed at least one individual to oversee and

be responsible for the laboratory testing who has earned,

from a college or university accredited by a national or

regional certifying authority, at least:

(i) a master's level degree in chemical or

biological sciences and a minimum of 2 years' postdegree

laboratory experience; or

(ii) a bachelor's degree in chemical or biological

sciences and a minimum of 4 years' postdegree laboratory

experience.

(4) provides the board with a copy of the most recent

annual inspection report granting accreditation and every

annual report thereafter.

natural processing of any cannabis or cannabis product or

packaging cannabis for sale to an adult use dispensing

organization , each batch shall be made available by the adult

use cultivation center or micro cultivation center for an

employee of an approved laboratory to select a random sample,

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which shall be tested by the approved laboratory for:

(1) microbiological contaminants;

(2) mycotoxins;

(3) pesticide active ingredients;

(4) heavy metals;

(5) residual solvent; and

(6) an active ingredient analysis.

(d) Board sample.--The board may select a random sample that

shall, for the purposes of conducting an active ingredient

analysis, be tested by a lab chosen by the board for

verification of label information.

(e) Disposal of sample.--A laboratory shall immediately

return or dispose of any cannabis upon the completion of any

testing, use or research. Any cannabis that is disposed of shall

be done so in compliance with board rule.

(f) Sample failure.--If a sample of cannabis does not pass

testing under subsection (c) based on the standards established

by the board, the following shall apply:

(1) The sample may be retested, with or without

remediation, up to three additional times after a failed

test.

(2) After a fourth failed test, or at the choosing of

the cannabis business establishment, the batch may be used to

make a CO2-based or solvent-based extract. After processing,

the CO2-based or solvent-based extract must still pass all

required tests.

(3) Seeds, immature cannabis plants, cannabis plants,

cannabis flowers or cannabis products may be remediated at

any time prior to cannabis or cannabis products being

provided to dispensaries for sale to customers under this

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chapter or patients under Chapter 94, including after any

failed test performed by an independent laboratory under

subsection (c) based on the standards established by the

board, as long as the cannabis or cannabis products being

provided to dispensaries ultimately passes independent

laboratory testing under subsection (c) based on the

standards established by the board.

(g) Board testing standards.--The board shall establish

standards for contaminant under subsection (c) and shall develop

labeling requirements for contents and potency. The board shall

ensure standards under this subsection are comparable to those

set by other established adult use and medical cannabis markets

and shall publicly disclose the basis for any standards set.

(h) Copy of test results.--The laboratory shall file with

the board an electronic copy of each laboratory test result for

any batch that does not pass testing under subsection (c) at the

same time that it transmits those results to the cultivation

center or micro cultivation center. The testing laboratory shall

maintain the laboratory test results for at least five years and

make test results available at the board's request for the same

period.

(i) Results.--An adult use cultivation center or micro

cultivation center shall provide to an adult use dispensing

organization the laboratory test results for each batch of

cannabis product purchased by the adult use dispensing

organization, if sampled. Each adult use dispensing organization

must have those laboratory results available upon request to

purchasers.

(j) Additional rules permitted.--The board may adopt rules

related to testing in furtherance of this chapter.

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SUBCHAPTER I

ADVERTISING, MARKETING, PACKAGING AND LABELING

Sec.

9272. Advertising and promotions.

9273. Cannabis product packaging and labeling.

§ 9272. Advertising and promotions.

A cannabis business establishment shall be permitted to

advertise and market cannabis and cannabis products, including

through discounts and promotional programs. A cannabis business

establishment may only be restricted in advertising and

marketing to the extent that any advertising or marketing

contains any statement or image that:

(1) is false or misleading;

(2) promotes over consumption of cannabis or cannabis

products;

(3) depicts a person under 21 years of age consuming

cannabis;

(4) makes any unsupported health claims about cannabis,

cannabis products or cannabis concentrates; or

(5) includes any image designed or likely to appeal to a

minor.

§ 9273. Cannabis product packaging and labeling.

(a) Registration.--Each cannabis product produced for sale

shall be registered with the board on forms provided by the

board. Each product registration shall include a label and the

required registration fee at the rate established by the board.

The registration fee shall be for the name of the product

offered for sale and shall be sufficient for all package sizes.

(b) Packaging.--All harvested cannabis intended for

distribution to a cannabis business establishment shall be

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packaged in a sealed, resealable or child-resistant labeled

container consistent with current standards, including the

Consumer Product Safety Commission standards referenced by the

Poison Prevention Packaging Act (Public Law 91-601, 15 U.S.C. §

1471 et seq.).

infused products shall be individually wrapped or packaged at

the original point of preparation.

(d) Cannabis product labeling.--Each cannabis product shall

be labeled prior to sale. Each label shall be securely affixed

to the package and shall state in legible font the following:

(1) the common or usual name of the item and the

registered name of the cannabis product that was registered

with the board under subsection (a);

(2) a unique serial number that matches the product with

an adult use cultivation center or micro cultivation center

batch and lot number to facilitate any warnings or recalls

the board or adult use cultivation center or micro

cultivation center deems appropriate;

(3) the date of final testing and packaging, if sampled,

and the identification of the independent testing laboratory;

(4) the date of harvest for cannabis flower or the date

of manufacture for other forms of cannabis and a "use by"

date;

(5) the quantity, in ounces or grams, of cannabis

contained in the product;

(6) a pass or fail rating based on the laboratory's

testing under Subchapter H (relating to laboratory testing),

if sampled;

(7) a content list, including:

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(i) The minimum and maximum percentage content by

weight for:

(A) delta-9-tetrahydrocannabinol (THC);

(B) tetrahydrocannabinolic acid (THCA);

(D) cannabidiolic acid (CBDA); and

(E) all other ingredients of the item, including

any colors, artificial flavors and preservatives

listed in descending order by predominance of weight

shown with common or usual names.

(ii) (Reserved); and

(8) the acceptable tolerances for the minimum percentage

shall not be below 85% or above 115% of the labeled amount.

(e) Prohibition.--Product packaging must not contain

information that:

(1) is false or misleading;

(2) promotes excessive consumption;

(3) depicts a person under 21 years of age consuming

cannabis; or

(4) includes any image designed or likely to appeal to a

minor.

(f) Additional requirements.--The following shall apply to a

cannabis product produced by concentrating or extracting

ingredients from the cannabis plant:

(1) If solvents were used to create the concentrate or

extract, a statement that discloses the type of extraction

method, including any solvents or gases used to create the

concentrate or extract.

(2) Disclosure of any chemicals or compounds used to

produce or added to the concentrate or extract.

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(3) Cannabis concentrates sold with greater than 70% THC

shall indicate the product is a high-THC product on the

product label.

(g) Product warning.--All cannabis, cannabis-infused

products and cannabis concentrates must contain a warning on its

label stating: "Cannabis consumption may impair the ability to

drive or operate heavy machinery, is for adult use only and

should not be used by pregnant or breastfeeding women. Keep out

of reach of children."

(h) Servings.--Each cannabis-infused product intended for

consumption must include on the packaging the total milligram

content of THC and CBD. Each package may not include more than a

total of 1000 milligrams of THC per package with respect to

cannabis-infused products. A package may contain multiple

servings. A cannabis-infused product that consists of more than

a single serving shall be marked, stamped or otherwise

imprinted, by individual single serving, with a symbol or easily

recognizable mark approved by the board indicating the package

contains cannabis and shall be either:

(1) Scored or delineated to indicate one serving, if the

cannabis-infused product is in solid form. For purposes of

this paragraph, "delineated" includes directly marking the

product to indicate one serving or providing a means by which

a patient or purchaser can accurately identify one serving;

(2) If the cannabis-infused product is not in solid

form, packaged in a manner so that a single serving is

readily identifiable or easily measurable.

(i) Delineation.--A cannabis-infused product consisting of

multiple servings shall be homogenized so that each serving

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contains the same concentration of THC.

(j) Alternation or destruction of packaging.--No individual

other than the purchaser may alter or destroy any labeling

affixed to the primary packaging of cannabis or cannabis

products.

SUBCHAPTER J

GENERAL PROVISIONS

Sec.

9275. Preparation of cannabis-infused products.

9276. Destruction of cannabis.

9277. Local ordinances.

9278. Confidentiality.

9279. Financial institutions.

9280. Contracts enforceable.

9281. Medical marijuana.

9282. Administrative rulemaking.

§ 9275. Preparation of cannabis-infused products.

(a) Regulation.--The board may regulate the production of

cannabis-infused products, including edibles, by an adult use

cultivation center or a micro cultivation center and establish

rules related to refrigeration, hot-holding and handling of

cannabis-infused products. All cannabis-infused products shall

meet the packaging and labeling requirements contained in this

chapter and any rule promulgated by the board.

(b) Approval.--Cannabis-infused products for sale or

distribution at an adult use dispensing organization must be

prepared by an approved agent of an adult use cultivation center

or micro cultivation center. An adult use dispensing

organization may not manufacture, process or produce a cannabis-

infused product.

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(d) Enforcement.--The board shall adopt and enforce rules

for the manufacture and processing of cannabis-infused products,

and may at all times enter every building, room, basement,

enclosure or premises occupied or used, or suspected of being

occupied or used, for the production, preparation, manufacture

for sale, storage, sale, processing, distribution or

transportation of cannabis-infused products. The board may

inspect the premises together with all utensils, fixtures,

furniture and machinery used for the preparation of products

under this section.

§ 9276. Destruction of cannabis.

(a) General rule.--All cannabis byproduct, scrap and

harvested cannabis not intended for distribution to an adult use

dispensing organization must be destroyed and disposed of under

rules adopted by the board under this chapter. Documentation of

destruction and disposal shall be retained at the adult use

cultivation center, micro cultivation center or testing facility

as applicable for a period of not less than two years.

(b) Notification prior to destruction.--An adult use

cultivation center or micro cultivation center shall, prior to

destruction, notify the board and the Pennsylvania State Police.

An adult use dispensing organization shall notify the board and

the Pennsylvania State Police within 48 hours of any

destruction. The adult use cultivation center, micro cultivation

center or adult use dispensing organization shall keep a record

of the date and quantity of destruction.

shall destroy all cannabis, including cannabis-infused products,

not sold to purchasers. Documentation of destruction and

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disposal shall be retained at the dispensing organization for a

period of not less than two years.

§ 9277. Local ordinances.

Unless otherwise provided by this chapter or law:

(1) A unit of local government, including a home rule

unit or any non-home-rule county within the unincorporated

territory of the county, may enact reasonable zoning

ordinances or resolutions, not in conflict with this chapter

or rules adopted pursuant to this chapter, regulating a

cannabis business establishment. No unit of local government,

including a home rule unit or any non-home-rule county within

the unincorporated territory of the county, may unreasonably

prohibit the use of cannabis authorized by this chapter.

(2) A unit of local government, including a home rule

unit or any non-home-rule county within the unincorporated

territory of the county, may enact ordinances or rules not in

conflict with this chapter or with rules adopted pursuant to

this chapter governing the time, place, manner and number of

cannabis business establishment operations, including minimum

distance limitations between cannabis business establishments

and locations it deems sensitive. A unit of local government,

including a home rule unit, may establish civil penalties for

violation of an ordinance or rules governing the time, place

and manner of operation of a cannabis business establishment

in the jurisdiction of the unit of local government. No unit

of local government, including a home rule unit or non-home-

rule county within an unincorporated territory of the county,

may unreasonably restrict the time, place, manner and number

of cannabis business establishment operations authorized by

this chapter.

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(3) A unit of local government, including a home rule

unit, or any non-home-rule county within the unincorporated

territory of the county may authorize or permit the on-

premises consumption of cannabis at or in an adult use

dispensing organization within its jurisdiction in a manner

consistent with this chapter. An adult use dispensing

organization authorized or permitted by a unit of local

government to allow on-site consumption shall not be deemed a

public place under the laws of this Commonwealth.

(4) A unit of local government, including a home rule

unit or any non-home-rule county within the unincorporated

territory of the county, may not regulate the activities

described in paragraph (1), (2) or (3) in a manner more

restrictive than the regulation of those activities by the

State under this chapter.

(5) A unit of local government, including a home rule

unit or any non-home-rule county within the unincorporated

territory of the county, may not enact ordinances to prohibit

a cannabis business establishment from locating within the

unit of local government entirely.

§ 9278. Confidentiality.

(a) Disclosure.--Information provided by cannabis business

establishment permittees or applicants to the board, the

Commonwealth Financing Authority, the Pennsylvania State Police

or other agency shall be limited to information necessary for

the purposes of administering this chapter. The information

shall be subject to the provisions and limitations contained in

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

Right-to-Know Law.

(b) Privacy.--The following information received and records

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kept by the board, the Commonwealth Financing Authority and the

Pennsylvania State Police for purposes of administering this

chapter shall be subject to all applicable Federal privacy laws

and shall be confidential and exempt from disclosure under the

Freedom of Information Act (Public Law 89-487, 5 U.S.C. § 552),

except as provided in this chapter, and not subject to

disclosure to any individual or public or private entity, except

to the board, the Commonwealth Financing Authority, the

Pennsylvania State Police and Attorney General as necessary to

perform official duties under this chapter.

or entity holding each cannabis business establishment permit

shall be subject to disclosure under the Freedom of Information

Act.

(d) Board information.--All information collected by the

board in the course of an examination, inspection or

investigation of a permittee or applicant, including any

complaint against a permittee or applicant filed with the board

and information collected to investigate any complaint, shall be

maintained for the confidential use of the board and shall not

be disclosed, except as otherwise provided in this chapter. A

formal complaint against a permittee by the board or any

disciplinary order issued by the board against a permittee or

applicant shall be public record, except as otherwise provided

by law. Complaints from consumers or members of the general

public received regarding a specific, named permittee or

complaints regarding conduct by unpermitted entities shall be

subject to disclosure under the Freedom of Information Act.

(e) Background check information.--The board, the

Commonwealth Financing Authority, and the Pennsylvania State

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Police may not share or disclose any Pennsylvania or national

criminal history record information, or the nonexistence or lack

of any information, to any individual or entity not expressly

authorized by this chapter.

§ 9279. Financial institutions.

(a) Exemption.--A financial institution that provides

financial services customarily provided by financial

institutions to a cannabis business establishment authorized

under this chapter or to a person that is affiliated with a

cannabis business establishment shall be exempt from any

criminal law of the Commonwealth as it relates to cannabis-

related conduct authorized under State law.

(b) Confidentiality.--Information received by a financial

institution from a cannabis business establishment shall be

confidential. Except as otherwise required or permitted by

Federal or State law or regulation, a financial institution may

not make the information available to any person other than:

(1) the customer to whom the information applies;

(2) a trustee, conservator, guardian, personal

representative or agent of the customer to whom the

information applies;

(3) a Federal or State regulator when requested in

connection with an examination of the financial institution

or if otherwise necessary for complying with Federal or State

law;

(4) a Federal or State regulator when requested in

connection with an examination of the financial institution

or if otherwise necessary for complying with Federal or State

law; and

(5) a third party performing service for the financial

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institution, provided the third party is performing services

under a written agreement that expressly or by operation of

law prohibits the third party's sharing and use of

confidential information for any purpose other than as

provided in its agreement to provide services to the

financial institution.

§ 9280. Contracts enforceable.

Contracts related to the operation of a lawful cannabis

business establishment under this chapter shall be enforceable.

No contract entered into by a lawful cannabis business

establishment or its agents on behalf of a cannabis business

establishment, or by those who allow property to be used by a

cannabis business establishment, shall be unenforceable on the

basis that cultivating, obtaining, manufacturing, processing,

distributing, dispensing, transporting, selling, possessing or

using cannabis is prohibited by Federal law.

§ 9281. Medical marijuana.

(a) Construction.--Nothing in this chapter shall be

construed to limit any privileges or rights of a medical

marijuana patient, including minor patients, primary caregivers,

medical marijuana grower/processors or medical marijuana

dispensaries under Chapter 94 (relating to medical marijuana).

If there is conflict between this chapter and Chapter 94 as they

relate to medical marijuana patients, the provisions of this

chapter shall prevail.

(b) Sale permitted.--Dispensary locations permitted under

this chapter shall be permitted to sell cannabis to adult use

customers and to q ualified patients .

§ 9282. Administrative rulemaking.

No later than 180 days after the effective date of this

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chapter, the board, and all Commonwealth agencies and

departments with regulatory responsibility under this chapter,

shall adopt regulations in accordance with their

responsibilities under this chapter. The failure by any

Commonwealth agency or department with regulatory responsibility

under this chapter to adopt regulations within 180 days of the

effective date of this section shall not delay or otherwise

impede a cannabis business establishment from beginning to

operate in accordance with this chapter.

SUBCHAPTER K

TAXES

Sec.

9285. Imposition of sales tax.

9286. Imposition of excise tax.

9287. Cannabis Regulation Fund and distribution of taxes.

§ 9285. Imposition of sales tax.

(a) Rate.--A sales tax is imposed at the rate of 6% of the

sales price for cannabis and cannabis products sold or otherwise

transferred to anyone other than a cannabis business

establishment.

(b) Deposit.--Sales tax revenue under subsection (a) shall

be deposited in the Cannabis Regulation Fund.

§ 9286. Imposition of excise tax.

(a) Imposition.--In addition to all other taxes, an excise

tax is imposed on each adult use dispensing organization at the

rate of 10% of the sales price for cannabis or a cannabis

product sold or otherwise transferred to anyone other than a

cannabis business establishment.

(b) Prohibition.--Except as otherwise provided by rule, a

product subject to the tax imposed by this section may not be

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bundled in a single transaction with a product or service that

is not subject to the tax imposed by this section.

§ 9287. Cannabis Regulation Fund and distribution of taxes.

(a) Establishment.--The Cannabis Regulation Fund is

established as a special fund in the State Treasury. Money in

the fund is appropriated as set forth in subsection (c). Any

amount unspent at the end of a fiscal year shall be appropriated

to the General Fund.

(b) Deposit.--Fees and taxes payable to the Cannabis

Regulation Fund under this chapter shall be deposited in the

Cannabis Regulation Fund, other than tax revenue disbursed to

municipalities and counties as set forth below. The money

deposited into the Cannabis Regulation Fund may only be used for

the purposes set forth in this section. Any interest accrued

shall be deposited into the Cannabis Regulation Fund.

appropriated in accordance with the following:

(1) To the board, up to 2% of gross receipts of the

revenue in the fund, as needed, for actual costs and

expenses, including staffing expenses, related to

administering and enforcing this chapter;

(2) $3,000,000 annually to the Cannabis Business

Development Fund from gross receipts of the revenue; and

(3) The remainder to the General Fund to provide

economic relief to the Commonwealth as determined by the

legislature.

(d) Administration.--The Department of Revenue shall

administer the taxes imposed under this chapter and may

promulgate rules that prescribe a method and manner for payment

of the tax to ensure proper tax collection under this chapter.

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(e) Allocation.--All taxes collected under this chapter must

be allocated as follows:

(1) 10% to municipalities in which a cannabis business

establishment is located, allocated in proportion to the

number of cannabis business establishments within the

municipality;

(2) 10% to counties in which a cannabis business

establishment is located, allocated in proportion to the

number of cannabis business establishments within the county;

(3) 80% to be deposited in the Cannabis Regulation Fund.

SUBCHAPTER L

CANNABIS CLEAN SLATE

Sec.

9290. Cannabis clean slate.

§ 9290. Cannabis clean slate.

(a) General rule.--An individual who has been arrested for,

charged with or convicted under section 13(a)(30) or (31) of the

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

Substance, Drug, Device and Cosmetic Act, shall have the

individual's criminal history related to the criminal proceeding

expunged in accordance with subsection (b). This subsection

shall only apply to nonviolent offenses.

(b) Expungement process.--The following shall apply:

(1) The Administrative Office of Pennsylvania Courts

shall, within six months of the effective date of this

chapter, transmit to the Pennsylvania State Police central

repository all records related to an arrest or conviction

under subsection (a) for expungement.

(2) If the Pennsylvania State Police determines a record

transmitted under paragraph (1) is not eligible for

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expungement, it shall notify the Administrative Office of

Pennsylvania Courts of the determination within 30 days of

receiving the information. Upon expiration of the 30-day

period, the Administrative Office of Pennsylvania Courts

shall provide to the court of common pleas in which the

arrest or adjudication occurred a list of all records

eligible for expungement. Within 30 days of receiving the

list, the court of common pleas shall order the expungement

of all criminal history records received under this section

and all administrative records of the Department of

Transportation relating to the criminal history records

received under this section.

received an expungement order for a person currently

incarcerated for the crime for which the court received the

expungement order shall transmit to the appropriate county

correctional institution or State correctional institution, as

defined under 61 Pa.C.S. § 102 (relating to definitions), an

order for the immediate release or discharge of the person whose

record has been ordered to be expunged.

(d) Motor vehicle operation privileges.--The Bureau of Motor

Vehicles shall reinstate an individual's suspended or revoked

motor vehicle operation privileges that were suspended or

revoked as a result of the individual's conviction that has been

expunged under this section.

(e) Reinstatement of license or registration.--A license or

registration that has been suspended or revoked under section 23

of The Controlled Substance, Drug, Device and Cosmetic Act due

to an arrest or conviction that has been expunged under this

section shall be reinstated.

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SUBCHAPTER M

MISCELLANEOUS PROVISIONS

Sec.

9292. Conflict.

9293. (Reserved).

9294. Implementation.

§ 9292. Conflict.

The cultivation, processing, manufacture, acquisition,

transportation, sale, dispensing, distribution, possession and

consumption of cannabis permitted under this chapter shall not

be deemed to be a violation of the act of April 14, 1972

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

Device and Cosmetic Act. If a provision of the Controlled

Substance, Drug, Device and Cosmetic Act relating to cannabis

conflicts with a provision of this chapter, this chapter shall

take precedence.

§ 9293. (Reserved).

§ 9294. Implementation.

The issuance of licenses and other authorizations set forth

in this chapter shall begin no later than 180 days after the

effective date of this chapter.

CHAPTER 94

MEDICAL MARIJUANA

Subchapter

A. Preliminary Provisions

B. Program

C. Practitioners

D. Patients

E. Medical Marijuana Organizations

F. Medical Marijuana Controls

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G. Dispensaries

H. Tax on Medical Marijuana

I. Administration

J. Medical Marijuana Advisory Board

K. Offenses Related to Medical Marijuana

L. Research Program

M. Academic Clinical Research Centers and Clinical

Registrants

N. Miscellaneous Provisions

SUBCHAPTER A

PRELIMINARY PROVISIONS

Sec.

9401. Scope of chapter.

9402. Declaration of policy.

9403. Definitions.

9404. (Reserved).

§ 9401. Scope of chapter.

This chapter relates to the regulation and use of medical

marijuana in this Commonwealth.

§ 9402. Declaration of policy.

The General Assembly finds and declares as follows:

(1) Scientific evidence suggests that medical marijuana

is one potential therapy that may mitigate suffering in some

patients and also enhance quality of life.

(2) The Commonwealth is committed to patient safety.

Carefully regulating the program which allows access to

medical marijuana will enhance patient safety while research

into its effectiveness continues.

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

(i) Provide a program of access to medical marijuana

20210SB0473PN1148 - 137 -

which balances the need of patients to have access to the

latest treatments with the need to promote patient

safety.

(ii) Provide a safe and effective method of delivery

of medical marijuana to patients.

(iii) Promote high quality research into the

effectiveness and utility of medical marijuana.

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

that any Commonwealth-based program to provide access to

medical marijuana serve as a temporary measure, pending

Federal approval of and access to medical marijuana through

traditional medical and pharmaceutical avenues.

§ 9403. Definitions.

The following words and phrases when used in this chapter

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

context clearly indicates otherwise:

"Advisory board." The advisory board established under

section 9458 (relating to advisory board).

"Caregiver." The term includes the following entities

designated to deliver medical marijuana:

(1) An individual designated by a patient.

(2) If the patient is under 18 years of age, an

individual under section 9420(2) (relating to minors).

(3) Individuals designated in writing, for purposes of

section 9415 (relating to caregivers), by an organization

that provides hospice, palliative or home health care

services and:

(i) are employed by an organization that is licensed

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

the Health Care Facilities Act;

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(ii) have significant responsibility for managing

the health care and well-being of a patient; and

(iii) were designated by the organization to provide

care to a patient who has provided authorization for the

designation.

(4) Individuals designated in writing, for purposes of

section 9415, by a residential facility, including a long-

term care nursing facility, skilled nursing facility,

assisted living facility, personal care home, independent

long-term care facility or intermediate care facility for

individuals with intellectual disabilities that:

(i) are licensed by the department or the Department

of Human Services;

(ii) have significant responsibility for managing

the health care and well-being of the patient; and

(iii) were designated by the residential facility to

provide care to a patient who has provided authorization

for the designation.

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

transportation of medical marijuana by a patient, or the

acquisition, possession, delivery, transportation or

administration of medical marijuana by a caregiver, for use as

part of the treatment of the patient's serious medical

condition, as authorized in a certification under this chapter,

including enabling the patient to tolerate treatment for the

serious medical condition.

"Certified registered nurse practitioner." As defined in

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

The Professional Nursing Law.

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

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persons acting in concert of a controlling interest in an

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

of a 12-consecutive-month period.

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

which the practitioner has completed a full assessment of the

patient's medical history and current medical condition,

including a consultation with the patient.

"Controlling interest." As follows:

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

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

members of the board of directors or other governing board or

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

securities of the publicly traded entity.

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

security in the entity.

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

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

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

any combination thereof, which holds a permit issued by the

department to dispense medical marijuana. The term does not

include a health care medical marijuana organization under

Subchapter L (relating to research program).

"Excipients." Solvents, chemicals or materials reported by a

medical marijuana organization and approved by the department

for use in the processing of medical marijuana.

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

6102 (relating to definitions).

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

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

than a financial institution.

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"Financial institution." A bank, a national banking

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

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

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

"Form of medical marijuana." The characteristics of the

medical marijuana recommended or limited for a particular

patient, including the method of consumption and any particular

dosage, strain, variety and quantity or percentage of medical

marijuana or particular active ingredient.

"Fund." The Medical Marijuana Program Fund established in

section 9450 (relating to Medical Marijuana Program Fund).

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

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

any combination thereof, which holds a permit from the

department under this chapter to grow and process medical

marijuana. The term does not include a health care medical

marijuana organization under Subchapter L.

"Harvest batch." A specifically identified quantity of

medical marijuana plant that is uniform in strain, cultivated

utilizing the same growing practices, harvested at the same time

and at the same location and cured under uniform conditions.

"Harvest lot." A specifically identified quantity of medical

marijuana plant taken from a harvest batch.

"Identification card." A document issued under section 9414

(relating to identification cards) that authorizes access to

medical marijuana under this chapter.

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

"Medical marijuana." Marijuana for certified medical use as

set forth in this chapter.

"Medical marijuana organization." A dispensary or a

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

medical marijuana organization under Subchapter L.

"Medical marijuana product." The final form and dosage of

medical marijuana that is grown, processed, produced, sealed,

labeled and tested by a grower/processor and sold to a

dispensary.

"Patient." An individual who:

(1) has a serious medical condition;

(2) has met the requirements for certification under

this chapter; and

(3) is a resident of this Commonwealth.

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

medical marijuana organization to conduct activities under this

chapter.

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

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

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

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

Practice Act.

"Practitioner." A physician who is registered with the

department under section 9409 (relating to practitioner

registration).

"Prescription drug monitoring program." The Achieving Better

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

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

owns a beneficial interest in or ownership of the securities of

an applicant or permittee, a person who has a controlling

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

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

permittee or otherwise control an applicant or permittee, other

20210SB0473PN1148 - 142 -

than a financial institution.

"Process lot." An amount of a medical marijuana product of

the same type and processed using the same medical marijuana

extract, standard operating procedures and the same or

combination of different harvest lots.

"Registry." The registry established by the department for

practitioners.

"Research initiative." A nonpatient investigation not

subject to Institutional Review Board or Research Approval

Committee approval requirements of a patient-based research

program, project or study, conducted by an academic clinical

research center and its contracted clinical registrant.

"Safety-sensitive position." A position that requires any

activity that an employer reasonably believes presents a

potential risk of harm to the health or safety of an employee or

others while under the influence of medical marijuana,

including:

(1) Duties performed at heights or in confined spaces,

including mining.

(2) The operation of a motor vehicle, other vehicle,

equipment, machinery or a power tool.

(3) Repairing, maintaining or monitoring the performance

or operation of any equipment, machinery or manufacturing

process, the malfunction or disruption of which could result

in injury or property damage.

(4) Performing firefighting duties.

(5) The operation, maintenance or oversight of critical

services and infrastructure, including electric, gas and

water utilities, power generation or distribution.

(6) The extraction, compression, processing,

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manufacturing, handling, packaging, storage, disposal,

treatment or transport of potentially volatile, flammable or

combustible materials, elements, chemicals or other highly

regulated component.

(7) Dispensing pharmaceuticals.

(8) A position that requires the employee to carry a

firearm.

(9) Direct patient care or direct child care.

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

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

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

Securities Act of 1972.

"Serious medical condition." Any of the following:

(1) Cancer, including remission therapy.

(2) Positive status for human immunodeficiency virus or

acquired immune deficiency syndrome.

(3) Amyotrophic lateral sclerosis.

(4) Parkinson's disease.

(5) Multiple sclerosis.

(6) Damage to the nervous tissue of the central nervous

system (brain-spinal cord) with objective neurological

indication of intractable spasticity and other associated

neuropathies.

(7) Epilepsy.

(8) Inflammatory bowel disease.

(9) Neuropathies.

(10) Huntington's disease.

(11) Crohn's disease.

(12) Post-traumatic stress disorder.

(13) Intractable seizures.

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(14) Glaucoma.

(15) Sickle cell anemia.

(16) Severe chronic or intractable pain of neuropathic

origin or severe chronic or intractable pain.

(17) Autism.

(18) Other conditions that are recommended by the

advisory board and approved by the secretary under section

9459 (relating to effectuating recommendations of advisory

board).

"Synchronous interaction." A two-way or multiple-way

exchange of information between a patient and a health care

provider that occurs in real time via audio or video

conferencing.

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

approximately one year or less if the illness runs its normal

course.

"Under the influence." One or more of the following:

(1) A drug test resulting in:

(i) a level of tetrahydrocannabinolic acid in an

employee's urine that is equal to or greater than 15

nanograms per milliliter; or

(ii) an adulterated or substituted testing sample

provided by an employee.

(2) An employer's good faith determination that an

employee is under the influence of marijuana based on

observable physical behavior or characteristics, provided

that the employee may rebut the determination by immediately

submitting to a drug test, the results of which demonstrate

that the level of tetrahydrocannabinolic acid in the

employee's urine is less than 15 nanograms per milliliter.

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§ 9404. (Reserved).

SUBCHAPTER B

PROGRAM

9405. Program established.

9406. Confidentiality and public disclosure.

9407. Lawful use of medical marijuana.

9408. Unlawful use of medical marijuana.

§ 9405. Program established.

(a) Establishment.--A medical marijuana program for patients

suffering from serious medical conditions is established. The

program shall be implemented and administered by the department.

The department shall:

(1) Issue permits to medical marijuana organizations to

authorize them to grow, process or dispense medical marijuana

and ensure their compliance with this chapter.

(2) Register practitioners and ensure their compliance

with this chapter.

(3) Have regulatory and enforcement authority over the

growing, processing, sale and use of medical marijuana in

this Commonwealth.

(4) Establish and maintain an electronic database to

include activities and information relating to medical

marijuana organizations, certifications and identification

cards issued, practitioner registration and electronic

tracking of all medical marijuana as required under this

chapter to include:

(i) Ensurance that medical marijuana is not diverted

or otherwise used for unlawful purposes by a practitioner

or medical marijuana organization.

(ii) Ability to establish the authenticity of

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identification cards.

(iii) Recording recommended forms of medical

marijuana provided in a certification filed by the

practitioner.

(iv) Monitoring all growth, transfer, possession,

processing, testing and dispensing of medical marijuana

in this Commonwealth.

(v) The tracking system under section 9441 (relating

to electronic tracking) must include information under

section 9446(a) (relating to dispensing to patients and

caregivers) and any other information required by the

department to be used by the department and dispensaries

to enable a dispensary to lawfully provide medical

marijuana. The tracking system and database shall be

capable of providing information in real time. The

database shall be capable of receiving information from a

dispensary regarding the disbursement of medical

marijuana to patients and caregivers. This information

shall be immediately accessible to the department and

other dispensaries to inhibit diversion and ensure

compliance with this chapter.

(5) Maintain a directory of patients and caregivers

approved to use or assist in the administration of medical

marijuana within the department's database.

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

pharmacists, certified registered nurse practitioners and

physician assistants regarding the latest scientific research

on medical marijuana, including the risks and benefits of

medical marijuana, and other information deemed necessary by

the department. Successful completion of the course shall be

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approved as continuing education credits as determined by:

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

of Osteopathic Medicine.

(ii) The State Board of Pharmacy.

(iii) The State Board of Nursing.

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

employees of a medical marijuana organization who either have

direct contact with patients or caregivers or who physically

handle medical marijuana. Employees must successfully

complete the course no later than 90 days after commencing

employment. Principals must successfully complete the course

prior to commencing initial operation of the medical

marijuana organization. The subject matter of the course

shall include the following:

(i) Methods to recognize and report unauthorized

activity, including diversion of medical marijuana for

unlawful purposes and falsification of identification

cards.

(ii) Proper handling of medical marijuana and

recordkeeping.

(iii) Any other subject required by the department.

(8) Develop enforcement procedures, including announced

and unannounced inspections of facilities of the

grower/processors and dispensaries and all records of the

medical marijuana organizations.

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

marijuana to conduct medical research relating to the use of

medical marijuana to treat serious medical conditions,

including the collection of data and the provision of

research grants.

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(10) Establish and maintain public outreach programs

about the medical marijuana program, including:

(i) A dedicated telephone number for patients,

caregivers and members of the public to obtain basic

information about the dispensing of medical marijuana

under this chapter.

(ii) A publicly accessible Internet website with

similar information.

(11) Collaborate as necessary with other Commonwealth

agencies or contract with third parties as necessary to carry

out the provisions of this chapter.

(12) Determine the minimum number and type of medical

marijuana products to be produced by a grower/processor and

dispensed by a dispensary.

(13) Develop recordkeeping requirements for all books,

papers, any electronic database or tracking system data and

other information of a medical marijuana organization.

Information shall be retained for a minimum period of four

years unless otherwise provided by the department.

(14) Restrict the advertising and marketing of medical

marijuana, which shall be consistent with the Federal

regulations governing prescription drug advertising and

marketing.

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

regulations necessary to carry out the provisions of this

chapter.

§ 9406. Confidentiality and public disclosure.

(a) Patient information.--The department shall maintain a

confidential list of patients and caregivers to whom it has

issued identification cards. All information obtained by the

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department relating to patients, caregivers and other applicants

shall be confidential and not subject to public disclosure,

including disclosure under the act of February 14, 2008 (P.L.6,

No.3), known as the Right-to-Know Law, including:

(1) Individual identifying information about patients

and caregivers.

(2) Certifications issued by practitioners.

(3) Information on identification cards.

(4) Information provided by the Pennsylvania State

Police under section 9415(b) (relating to caregivers).

(5) Information relating to the patient's serious

medical condition.

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

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

(1) Applications for permits submitted by medical

marijuana organizations.

(2) The names, business addresses and medical

credentials of practitioners authorized to provide

certifications to patients to enable them to obtain and use

medical marijuana in this Commonwealth. All other

practitioner registration information shall be confidential

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

Law.

(3) Information relating to penalties or other

disciplinary actions taken against a medical marijuana

organization or practitioner by the department for violation

of this chapter.

§ 9407. Lawful use of medical marijuana.

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

the contrary, use or possession of medical marijuana as set

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forth in this chapter is lawful within this Commonwealth.

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

subject to the following:

(1) Medical marijuana may only be dispensed to:

(i) a patient who receives a certification from a

practitioner and is in possession of a valid

identification card issued by the department; and

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

identification card issued by the department.

(2) Subject to regulations promulgated under this

chapter, medical marijuana may only be dispensed to a patient

or caregiver in the following forms:

(i) pill;

(ii) oil;

(iii) topical forms, including gels, creams or

ointments;

(iv) a form medically appropriate for administration

by vaporization or nebulization, excluding dry leaf or

plant form until dry leaf or plant forms become

acceptable under regulations adopted under section 9459

(relating to effectuating recommendations of advisory

board);

(v) tincture; or

(vi) liquid.

(3) Unless otherwise provided in regulations adopted by

the department under section 9459, medical marijuana may not

be dispensed to a patient or a caregiver in dry leaf or plant

form.

(4) (Reserved).

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

20210SB0473PN1148 - 151 -

one time.

(6) Medical marijuana that has not been used by the

patient shall be kept in the original package in which it was

dispensed.

(7) A patient or caregiver shall possess an

identification card whenever the patient or caregiver is in

possession of medical marijuana.

(8) Products packaged by a grower/processor or sold by a

dispensary shall only be identified by the name of the

grower/processor, the name of the dispensary, the form and

species of medical marijuana, the percentage of

tetrahydrocannabinol and cannabinol contained in the product

and any other labeling required by the department.

§ 9408. Unlawful use of medical marijuana.

(a) General rule.--Except as provided in section 9407

(relating to lawful use of medical marijuana), section 9444

(relating to laboratory), Subchapter L (relating to research

program) or Subchapter M (relating to academic clinical research

centers and clinical registrants), the use of medical marijuana

is unlawful and shall, in addition to any other penalty provided

by law, be deemed a violation of the act of April 14, 1972

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

Device and Cosmetic Act.

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

(1) Smoke medical marijuana.

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

medical marijuana into edible form.

(3) Grow medical marijuana unless the grower/processor

has received a permit from the department under this chapter.

(4) Grow or dispense medical marijuana unless authorized

20210SB0473PN1148 - 152 -

as a health care medical marijuana organization under

Subchapter L.

(5) Dispense medical marijuana unless the dispensary has

received a permit from the department under this chapter.

be construed to preclude the incorporation of medical marijuana

into edible form by a patient or a caregiver in order to aid

ingestion of the medical marijuana by the patient.

SUBCHAPTER C

PRACTITIONERS

Sec.

9409. Practitioner registration.

9410. Practitioner restrictions.

9411. Issuance of certification.

9412. Certification form.

9413. Duration.

§ 9409. Practitioner registration.

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

authorized to issue certifications to patients to use medical

marijuana. To be eligible for inclusion in the registry:

(1) A physician must apply for registration in the form

and manner required by the department.

(2) The department must determine that the physician is,

by training or experience, qualified to treat a serious

medical condition. The physician shall provide documentation

of credentials, training or experience as required by the

department.

(3) The physician must have successfully completed the

course under section 9405(a)(6) (relating to program

established).

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(b) Department action.--

(1) The department shall review an application submitted

by a physician to determine whether to include the physician

in the registry. The review shall include information

maintained by the Department of State regarding whether the

physician has a valid, unexpired, unrevoked, unsuspended

Pennsylvania license to practice medicine and whether the

physician has been subject to discipline.

(2) The inclusion of a physician in the registry shall

be subject to annual review to determine if the physician's

license is no longer valid, has expired or been revoked or

the physician has been subject to discipline. If the license

is no longer valid, the department shall remove the physician

from the registry until the physician holds a valid,

unexpired, unrevoked, unsuspended Pennsylvania license to

practice medicine.

(3) The Department of State shall report to the

department the expiration, suspension or revocation of a

physician's license and any disciplinary actions in a timely

fashion.

the registry shall have an ongoing responsibility to immediately

notify the department in writing if the practitioner knows or

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

respect to a patient for whom the practitioner has issued a

certification:

(1) The patient no longer has the serious medical

condition for which the certification was issued.

(2) Medical marijuana would no longer be therapeutic or

palliative.

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(3) The patient has died.

§ 9410. Practitioner restrictions.

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

to practitioners:

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

form of remuneration from or to a prospective patient,

patient, prospective caregiver, caregiver or medical

marijuana organization, including an employee, financial

backer or principal, to certify a patient, other than

accepting a fee for service with respect to the examination

of the prospective patient to determine if the prospective

patient should be issued a certification to use medical

marijuana.

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

interest in a medical marijuana organization.

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

services as a practitioner who can certify a patient to

receive medical marijuana.

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

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

patients. The practitioner shall be removed from the registry.

be imposed under this chapter, a violation of subsection (a) or

section 9411(f) (relating to issuance of certification) shall be

deemed unprofessional conduct under section 41(8) of the act of

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

Practice Act of 1985, or section 15(a)(8) of the act of October

5, 1978 (P.L.1109, No.261), known as the Osteopathic Medical

Practice Act, and shall subject the practitioner to discipline

by the State Board of Medicine or the State Board of Osteopathic

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Medicine, as appropriate.

§ 9411. Issuance of certification.

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

marijuana may be issued by a practitioner to a patient if all of

the following requirements are met:

(1) The practitioner has been approved by the department

for inclusion in the registry and has a valid, unexpired,

unrevoked, unsuspended Pennsylvania license to practice

medicine at the time of the issuance of the certification.

(2) The practitioner has determined that the patient has

a serious medical condition and has included the condition in

the patient's health care record.

(3) The patient is under the practitioner's continuing

care for the serious medical condition.

(4) In the practitioner's professional opinion and

review of past treatments, the practitioner determines the

patient is likely to receive therapeutic or palliative

benefit from the use of medical marijuana.

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

(1) The patient's name, date of birth and address.

(2) The specific serious medical condition of the

patient.

(3) A statement by the practitioner that the patient has

a serious medical condition and the patient is under the

practitioner's continuing care for the serious medical

condition.

(4) The date of issuance.

(5) The name, address, telephone number and signature of

the practitioner.

(6) Any requirement or limitation concerning the

20210SB0473PN1148 - 156 -

appropriate form of medical marijuana and limitation on the

duration of use, if applicable, including whether the patient

is terminally ill.

prescription drug monitoring program prior to:

(1) Issuing a certification to determine the controlled

substance history of a patient.

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

marijuana.

(d) Other access by practitioner.--A practitioner may access

the prescription drug monitoring program to do any of the

following:

(1) Determine whether a patient may be under treatment

with a controlled substance by another physician or other

person.

(2) Allow the practitioner to review the patient's

controlled substance history as deemed necessary by the

practitioner.

(3) Provide to the patient, or caregiver on behalf of

the patient if authorized by the patient, a copy of the

patient's controlled substance history.

(e) Duties of practitioner.--The practitioner shall:

(1) Provide the certification to the patient.

(2) Provide a copy of the certification to the

department, which shall place the information in the patient

directory within the department's electronic database. The

department shall permit electronic submission of the

certification.

(3) File a copy of the certification in the patient's

health care record.

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(f) Prohibition.--A practitioner may not issue a

certification for the practitioner's own use or for the use of a

family or household member.

§ 9412. Certification form.

The department shall develop a standard certification form,

which shall be available to practitioners upon request. The form

shall be available electronically. The form shall include a

statement that a false statement made by a practitioner is

punishable under the applicable provisions of 18 Pa.C.S. Ch. 49

(relating to falsification and intimidation).

§ 9413. Duration.

Receipt of medical marijuana by a patient or caregiver from a

dispensary may not exceed a 90-day supply of individual doses.

During the last seven days of any 30-day period during the term

of the identification card, a patient may obtain and possess a

90-day supply for the subsequent 30-day period. Additional 90-

day supplies may be provided in accordance with this section for

the duration of the authorized period of the identification card

unless a shorter period is indicated on the certification.

SUBCHAPTER D

PATIENTS

9414. Identification cards.

9415. Caregivers.

9416. Notice.

9417. Verification.

9418. Special conditions.

9419. (Reserved).

9420. Minors.

9421. Caregiver authorization and limitations.

9422. Contents of identification card.

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9423. Suspension.

9424. Prohibitions.

§ 9414. Identification cards.

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

card to a patient who has a certification approved by the

department and to a caregiver designated by the patient. An

identification card issued to a patient shall authorize the

patient to obtain and use medical marijuana as authorized by

this chapter. An identification card issued to a caregiver shall

authorize the caregiver to obtain medical marijuana on behalf of

the patient.

(b) Procedure for issuance.--The department shall develop

and implement procedures for:

(1) Review and approval of applications for

identification cards.

(2) Issuance of identification cards to patients and

caregivers.

(3) Review of the certification submitted by the

practitioner and the patient.

form and manner prescribed by the department, for issuance or

renewal of an identification card. A caregiver must submit a

separate application for issuance or renewal. Each application

must include:

(1) The name, address and date of birth of the patient.

(2) The name, address and date of birth of a caregiver.

(3) The certification issued by the practitioner.

(4) The name, address and telephone number of the

practitioner and documentation from the practitioner that all

of the requirements of section 9411(a) (relating to issuance

20210SB0473PN1148 - 159 -

of certification) have been met.

(5) A $50 processing fee. The department may waive or

reduce the fee if the applicant demonstrates financial

hardship.

(6) The signature of the applicant and date signed.

(7) Other information required by the department.

(d) Forms.--Application and renewal forms shall be available

on the department's publicly accessible Internet website.

(e) Expiration.--An identification card of a patient or

caregiver shall expire within one year from the date of

issuance, upon the death of the patient or as otherwise provided

in this section.

(f) Separate cards to be issued.--The department shall issue

separate identification cards for patients and caregivers as

soon as reasonably practicable after receiving completed

applications, unless it determines that an application is

incomplete or factually inaccurate, in which case it shall

promptly notify the applicant.

(g) (Reserved).

(h) Change in name or address.--A patient or caregiver who

has been issued an identification card shall notify the

department within 10 days of any change of name or address. In

addition, the patient shall notify the department within 10 days

if the patient no longer has the serious medical condition noted

on the certification.

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

destroyed or illegible identification card, the patient or

caregiver shall apply to the department within 10 business days

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

replacement card. The application for a replacement card shall

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

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

of second and subsequent replacement identification cards. The

department may waive or reduce the fee in cases of demonstrated

financial hardship. The department shall issue a replacement

identification card as soon as practicable. A patient or

caregiver may not obtain medical marijuana until the department

issues the replacement card.

§ 9415. Caregivers.

(a) Requirements.--

(1) If the patient designates a caregiver, the

application shall include the name, address and date of birth

of the caregiver, and other individual identifying

information required by the department and the following:

(i) Federal and Commonwealth criminal history record

information as set forth in subsection (b).

(ii) If the caregiver has an identification card for

the caregiver or another patient, the expiration date of

the identification card.

(iii) Other information required by the department.

(2) The application shall be accompanied by a fee of

$50. The department may waive or reduce the fee in cases of

demonstrated financial hardship.

(3) The department may require additional information

for the application.

(4) The application shall be signed and dated by the

applicant.

(b) Criminal history.--A caregiver who has not been

previously approved by the department under this section shall

submit fingerprints for the purpose of obtaining criminal

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history record checks, and the Pennsylvania State Police or its

authorized agent shall submit the fingerprints to the Federal

Bureau of Investigation for the purpose of verifying the

identity of the applicant and obtaining a current record of any

criminal arrests and convictions. Any criminal history record

information relating to a caregiver obtained under this section

by the department may be interpreted and used by the department

only to determine the applicant's character, fitness and

suitability to serve as a caregiver under this chapter. The

criminal history record information provided under this

subsection may not be subject to the limitations under 18

Pa.C.S. § 9121(b)(2) (relating to general regulations). The

department shall also review the prescription drug monitoring

program relating to the caregiver. The department shall deny the

application of a caregiver who has been convicted of a criminal

offense that occurred within the past five years relating to the

sale or possession of drugs, narcotics or controlled substances.

The department may deny an application if the applicant has a

history of drug abuse or of diverting controlled substances or

illegal drugs.

§ 9416. Notice.

An application for an identification card shall include

notice that a false statement made in the application is

punishable under the applicable provisions of 18 Pa.C.S. Ch. 49

(relating to falsification and intimidation).

§ 9417. Verification.

The department shall verify the information in a patient or

caregiver's application and on any renewal form.

§ 9418. Special conditions.

The following apply:

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(1) If the practitioner states in the certification

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

would benefit from medical marijuana only until a specified

earlier date, then the identification card shall expire on

that date.

(2) If the certification so provides, the identification

card shall state any requirement or limitation by the

practitioner as to the form of medical marijuana for the

patient.

§ 9419. (Reserved).

§ 9420. Minors.

If a patient is under 18 years of age, the following shall

apply:

(1) The patient shall have a caregiver.

(2) A caregiver must be one of the following:

(i) A parent or legal guardian of the patient.

(ii) An individual designated by a parent or legal

guardian.

(iii) An appropriate individual approved by the

department upon a sufficient showing that no parent or

legal guardian is appropriate or available.

§ 9421. Caregiver authorization and limitations.

(a) Age.--An individual who is under 21 years of age may not

be a caregiver unless a sufficient showing, as determined by the

department, is made to the department that the individual should

be permitted to serve as a caregiver.

(b) Changing caregiver.--If a patient wishes to change or

terminate the designation of the patient's caregiver, for

whatever reason, the patient shall notify the department as soon

as practicable. The department shall issue a notification to the

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caregiver that the caregiver's identification card is invalid

and must be promptly returned to the department.

designates an individual as a caregiver who is not authorized to

be a caregiver, that portion of the application shall be denied

by the department. The department shall review the balance of

the application and may approve that portion of it.

§ 9422. Contents of identification card.

An identification card shall contain the following:

(1) The name of the caregiver or the patient, as

appropriate. The identification card shall also state whether

the individual is designated as a patient or as a caregiver.

(2) The date of issuance and expiration date.

(3) An identification number for the patient or

caregiver, as appropriate.

(4) A photograph of the individual to whom the

identification card is being issued, whether the individual

is a patient or a caregiver. The method of obtaining the

photograph shall be specified by the department by

regulation. The department shall provide reasonable

accommodation for a patient who is confined to the patient's

home or is in inpatient care.

(5) Any requirement or limitation set by the

practitioner as to the form of medical marijuana.

(6) Any other requirements determined by the department,

except the department may not require that an identification

card disclose the patient's serious medical condition.

§ 9423. Suspension.

If a patient or caregiver intentionally, knowingly or

recklessly violates any provision of this chapter as determined

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by the department, the identification card of the patient or

caregiver may be suspended or revoked. The suspension or

revocation shall be in addition to any criminal or other penalty

that may apply.

§ 9424. Prohibitions.

The following prohibitions shall apply:

(1) A patient may not operate or be in physical control

of any of the following while under the influence with a

blood content of more than 10 nanograms of active

tetrahydrocannabis per milliliter of blood in serum:

(i) Chemicals which require a permit issued by the

Federal Government or a state government or an agency of

the Federal Government or a state government.

(ii) High-voltage electricity or any other public

utility.

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

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

mining while under the influence of medical marijuana.

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

performing any task which the employer deems life-

threatening, to either the employee or any of the employees

of the employer, while under the influence of medical

marijuana. The prohibition shall not be deemed an adverse

employment decision even if the prohibition results in

financial harm for the patient.

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

performing any duty which could result in a public health or

safety risk while under the influence of medical marijuana.

The prohibition shall not be deemed an adverse employment

decision even if the prohibition results in financial harm

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for the patient.

SUBCHAPTER E

MEDICAL MARIJUANA ORGANIZATIONS

9425. Medical marijuana organizations.

9426. Permits.

9427. Granting of permit.

9428. Notice.

9429. (Reserved).

9430. Application and issuance.

9431. Fees and other requirements.

9432. Issuance.

9433. Relocation.

9434. Terms of permit.

9435. (Reserved).

9436. Permit renewals.

9437. Suspension or revocation.

9438. Convictions prohibited.

9439. Diversity goals.

9440. Limitations on permits.

§ 9425. Medical marijuana organizations.

The following entities shall be authorized to receive a

permit to operate as a medical marijuana organization to grow,

process or dispense medical marijuana:

(1) Grower/processors.

(2) Dispensaries.

§ 9426. Permits.

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

dispensary permit to grow, process or dispense medical marijuana

shall be in a form and manner prescribed by the department and

shall include:

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(1) Verification of all principals, operators, financial

backers or employees of a medical marijuana grower/processor

or dispensary.

(2) A description of responsibilities as a principal,

operator, financial backer or employee.

(3) Any release necessary to obtain information from

governmental agencies, employers and other organizations.

(4) A criminal history record check. Medical marijuana

organizations applying for a permit shall submit fingerprints

of principals, financial backers, operators and employees to

the Pennsylvania State Police for the purpose of obtaining

criminal history record checks and the Pennsylvania State

Police or its authorized agent shall submit the fingerprints

to the Federal Bureau of Investigation for the purpose of

verifying the identity of the principals, financial backers,

operators and employees and obtaining a current record of any

criminal arrests and convictions. Any criminal history record

information relating to principals, financial backers,

operators and employees obtained under this section by the

department may be interpreted and used by the department only

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

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

a principal, financial backer, operator and employee under

this chapter. The criminal history record information

provided under this subsection may not be subject to the

limitations under 18 Pa.C.S. § 9121(b)(2) (relating to

general regulations). After submission of required

documentation to the department, medical marijuana

organizations may allow employees to work in a supervised

capacity until the department formally approves the

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employee's affiliation with the medical marijuana

organization. Any employee who the department determines to

be unable to meet the affiliation requirements under section

9438 (relating to convictions prohibited) shall be terminated

by the medical marijuana organization immediately. This

paragraph shall not apply to an owner of securities in a

publicly traded corporation or an owner of 5% or less in a

privately held business entity if the department determines

that the owner of the securities is not substantially

involved in the activities of the medical marijuana

organization.

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

other authorization obtained in another jurisdiction,

including any suspensions, revocations or discipline in that

jurisdiction.

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

intends to engage as a medical marijuana organization.

(7) A statement that the applicant:

(i) (Reserved).

(ii) Possesses the ability to obtain in an

expeditious manner the right to use sufficient land,

buildings and other premises and equipment to properly

carry on the activity described in the application and

any proposed location for a facility.

(iii) Is able to maintain effective security and

control to prevent diversion, abuse and other illegal

conduct relating to medical marijuana.

(iv) Is able to comply with all applicable

Commonwealth laws and regulations relating to the

activities in which it intends to engage under this

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chapter.

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

financial backer and principal of the applicant. Each

individual, or lawful representative of a legal entity, shall

submit an affidavit with the application setting forth:

(i) Any position of management or ownership during

the preceding 10 years of a controlling interest in any

other business, located inside or outside this

Commonwealth, manufacturing or distributing controlled

substances.

(ii) Whether the person or business has been

convicted of a criminal offense graded higher than a

summary offense or has had a permit relating to medical

marijuana suspended or revoked in any administrative or

judicial proceeding.

(9) Any other information the department may require.

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

false statement made in the application is punishable under the

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

falsification and intimidation).

§ 9427. Granting of permit.

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

to a grower/processor or dispensary.

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

(a), the department shall determine that:

(1) The applicant will maintain effective control of and

prevent diversion of medical marijuana.

(2) The applicant will comply with all applicable laws

of this Commonwealth.

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

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carry on the activity for which a permit is sought.

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

expeditious manner sufficient land, buildings and equipment

to properly grow, process or dispense medical marijuana.

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

(6) The applicant, including the financial backer or

principal, is of good moral character and has the financial

fitness necessary to operate.

(7) The applicant is able to implement and maintain

security, tracking, recordkeeping and surveillance systems

relating to the acquisition, possession, growth, manufacture,

sale, delivery, transportation, distribution or the

dispensing of medical marijuana as required by the

department.

(8) The applicant satisfies any other conditions as

determined by the department.

subchapter shall be nontransferable.

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

a revocable privilege.

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

three regions within this Commonwealth for the purpose of

granting permits to grower/processors and dispensaries and

enforcing this chapter. The department shall approve permits for

grower/processors and dispensaries in a manner which will

provide an adequate amount of medical marijuana to patients and

caregivers in all areas of this Commonwealth. The department

shall consider the following when issuing a permit:

(1) Regional population.

(2) The number of patients suffering from serious

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medical conditions.

(3) The types of serious medical conditions.

(4) Access to public transportation.

(5) Any other factor the department deems relevant.

§ 9428. Notice.

When the boundaries under section 9427(e) (relating to

granting of permit) are established, the department shall

transmit notice of the determination to the Legislative

Reference Bureau for publication in the Pennsylvania Bulletin.

The department may adjust the boundaries as necessary every two

years. Notice of any adjustment to the boundaries shall be

transmitted to the Legislative Reference Bureau for publication

in the Pennsylvania Bulletin.

§ 9429. (Reserved).

§ 9430. Application and issuance.

(a) Duty to report.--An applicant to be a grower/processor

or to operate a dispensary is under a continuing duty to:

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

circumstances reflected in the application or any newly

discovered or occurring fact or circumstance which is

required to be included in the application, including a

change in control of the medical marijuana organization.

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

or theft of medical marijuana.

(3) Submit to announced or unannounced inspections by

the department of the facilities for growing, processing,

dispensing or selling medical marijuana, including all

records of the organization.

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

satisfied that the applicant should be issued a permit, the

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department shall notify the applicant in writing of the factors

for which further documentation is required. Within 30 days of

the receipt of the notification, the applicant may submit

additional material to the department.

§ 9431. Fees and other requirements.

The following apply:

(1) For a grower/processor:

(i) An initial application fee in the amount of

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

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

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

valid for one year. Applicants shall submit the permit

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

shall be returned if the permit is not granted.

(iii) A renewal fee for the permit as a

grower/processor in the amount of $10,000 shall be paid

and shall cover renewal for all locations. The renewal

fee shall be returned if the renewal is not granted.

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

with the department not more than six months nor less

than four months prior to expiration.

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

money order.

(vi) Before issuing an initial permit under this

paragraph, the department shall verify that the applicant

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

must be on deposit with a financial institution.

(2) For a dispensary:

(i) An initial application fee in the amount of

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

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(ii) A permit fee for a dispensary shall be $30,000

for each location. The period of the permit is one year.

An applicant shall submit the permit fee at the time of

submission of the application. The fee shall be returned

if the application is not granted.

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

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

returned if the renewal is not granted and shall cover

renewal for all locations.

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

with the department not more than six months nor less

than four months prior to expiration.

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

money order.

(vi) Before issuing an initial permit under this

paragraph, the department shall verify that the applicant

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

deposit with a financial institution.

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

application to indicate relocation within this Commonwealth

or the addition or deletion of approved activities by the

medical marijuana organization.

(4) Fees payable under this section shall be deposited

into the fund.

§ 9432. Issuance.

A permit issued by the department to a medical marijuana

organization shall be effective only for that organization and

shall specify the following:

(1) The name and address of the medical marijuana

organization.

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(2) The activities of the medical marijuana organization

permitted under this chapter.

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

used by the medical marijuana organization.

(4) Any other information required by the department.

§ 9433. Relocation.

(a) Authorization.--The department may approve an

application from a medical marijuana organization to relocate

within this Commonwealth or to add or delete activities or

facilities.

(b) Designations.--Notwithstanding the provisions of

subsection (a), a dispensary may interchange the designation of

a primary, secondary or tertiary location at any time, including

the period before a location becomes operational, by providing

written notice to the department at least 14 days before the

change in designation. A change in designation under this

subsection may not be subject to approval by the department.

§ 9434. Terms of permit.

A permit issued by the department shall be valid for one year

from the date of issuance.

§ 9435. (Reserved).

§ 9436. Permit renewals.

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

following information:

(1) Any material change in the information provided by

the medical marijuana organization in a prior application or

renewal of a permit.

(2) Any charge or initiated, pending or concluded

investigation, during the period of the permit, by any

governmental or administrative agency with respect to:

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(i) any incident involving the theft, loss or

possible diversion of medical marijuana grown, processed

or dispensed by the applicant; and

(ii) compliance by the applicant with the laws of

this Commonwealth with respect to any substance listed in

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

known as The Controlled Substance, Drug, Device and

Cosmetic Act.

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

the department determines that:

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

maintain effective control against diversion of medical

marijuana.

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

this Commonwealth applicable to the activities in which it

may engage under the permit.

specify in detail how the applicant has not satisfied the

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

department's decision, the applicant may submit additional

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

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

practicable.

§ 9437. Suspension or revocation.

The department may suspend or revoke a medical marijuana

organization permit if:

(1) The department has evidence that the medical

marijuana organization has failed to maintain effective

control against diversion of medical marijuana.

(2) The organization violates any provision of this

20210SB0473PN1148 - 175 -

chapter or a regulation of the department.

(3) The organization has intentionally, knowingly,

recklessly or negligently failed to comply with applicable

laws of this Commonwealth relating to medical marijuana.

§ 9438. Convictions prohibited.

(a) Prohibitions.--The following individuals may not hold

volunteer positions or positions with remuneration in or be

affiliated with a medical marijuana organization, including a

clinical registrant under Subchapter M (relating to academic

clinical research centers and clinical registrants), in any way

if the individual has been convicted of any felony criminal

offense related to the manufacture, delivery or possession with

intent to manufacture or deliver a controlled substance in

violation of the act of April 14, 1972 (P.L.233, No.64), known

as The Controlled Substance, Drug, Device and Cosmetic Act, or

similar law in any other jurisdiction:

(1) Financial backers.

(2) Principals.

(3) Employees.

(b) Exclusion.--This section shall not apply to an

individual for whom it has been 10 or more years since the entry

of a final disposition of a felony conviction related to the

manufacture, delivery or possession with intent to manufacture

or deliver a controlled substance in violation of The Controlled

Substance, Drug, Device and Cosmetic Act, or similar law in any

other jurisdiction, or one year since the individual's release

from imprisonment for the felony conviction, whichever is later.

§ 9439. Diversity goals.

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

Assembly that the department promote diversity and the

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participation by diverse groups in the activities authorized

under this chapter. In order to further this goal, the

department shall adopt and implement policies ensuring the

following:

(1) That diverse groups are accorded equal opportunity

in the permitting process.

(2) That permittees promote the participation of diverse

groups in their operations by affording equal access to

employment opportunities.

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

diverse groups in the activities authorized under this chapter,

the department shall:

(1) Conduct necessary and appropriate outreach

including, if necessary, consulting with other Commonwealth

agencies to identify diverse groups who may qualify for

participation in activities under this chapter.

(2) Provide sufficient and continuous notice of the

participation opportunities afforded under this chapter by

publishing notice on the department's publicly accessible

Internet website.

(3) Include in the applications for permit under this

chapter language to encourage applicants to utilize and give

consideration to diverse groups for contracting or

professional services opportunities.

thereafter, the department shall submit a report to the

chairperson and minority chairperson of the Health and Human

Services Committee of the Senate and the chairperson and

minority chairperson of the Health Committee of the House of

Representatives summarizing the participation and utilization of

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diverse groups in the activities authorized under this chapter.

The report shall include:

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

groups in the activities authorized under this chapter.

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

permittees, including in the provision of goods or services.

(3) Any other information the department deems

appropriate.

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

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

subsection unless the context clearly indicates otherwise:

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

(relating to diverse business participation).

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

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

small business or veteran-owned small business that has been

certified by a third-party certifying organization.

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

303(b).

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

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

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

Pa.C.S. § 303(b).

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

9601.

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

§ 9440. Limitations on permits.

The following limitations apply to approval of permits for

grower/processors and dispensaries:

(1) The department may not initially issue permits to

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more than 25 growers/processors.

(2) The department may not initially issue permits to

more than 50 dispensaries. Each dispensary may provide

medical marijuana at no more than three separate locations.

(3) The department may not issue more than five

individual dispensary permits to one person.

(4) The department may not issue more than one

individual grower/processor permit to one person.

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

permits as dispensaries. If the number of growers/processors

is increased under section 9459 (relating to effectuating

recommendations of advisory board), no more than 20% of the

total number of growers/processors may also be issued permits

as dispensaries.

(6) A dispensary may only obtain medical marijuana from

a grower/processor holding a valid permit under this chapter.

(7) A grower/processor may only provide medical

marijuana to a dispensary holding a valid permit under this

chapter.

SUBCHAPTER F

MEDICAL MARIJUANA CONTROLS

9441. Electronic tracking.

9442. Grower/processors.

9443. Storage and transportation.

9444. Laboratory.

9445. Prices.

§ 9441. Electronic tracking.

(a) Requirement.--A grower/processor or dispensary must

implement an electronic inventory tracking system which shall be

directly accessible to the department through its electronic

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database that electronically tracks all medical marijuana on a

daily basis. The system shall include tracking of all of the

following:

(1) For a grower/processor, a seed-to-sale tracking

system that tracks the medical marijuana from seed to plant

until the medical marijuana is sold to a dispensary.

(2) For a dispensary, medical marijuana from purchase

from the grower/processor to sale to a patient or caregiver

and that includes information that verifies the validity of

an identification card presented by the patient or caregiver.

(3) For a grower/processor and a dispensary, a daily log

of each day's beginning inventory, acquisitions, amounts

purchased and sold, disbursements, disposals and ending

inventory. The tracking system shall include prices paid and

amounts collected from patients and caregivers.

(4) For a grower/processor and a dispensary, a system

for recall of defective medical marijuana.

(5) For a grower/processor and a dispensary, a system to

track the plant waste resulting from the growth of medical

marijuana or other disposal, including the name and address

of any disposal service.

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

under subsection (a), each medical marijuana organization shall

track the following:

(1) Security and surveillance.

(2) Recordkeeping and record retention.

(3) The acquisition, possession, growing and processing

of medical marijuana.

(4) Delivery and transportation, including amounts and

method of delivery.

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(5) Dispensing, including amounts, pricing and amounts

collected from patients and caregivers.

systems under subsection (a) shall be confidential and not

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

the Right-to-Know Law.

(d) Application programming interface.--The department or

the department's contracted seed-to-sale vendor shall allow two-

way communication, automation and application-programming

interface of a medical marijuana organization's enterprise

resource planning, inventory, accounting and point-of-sale

software with the software of the department or the department's

contracted seed-to-sale vendor. The department or the

department's contracted seed-to-sale vendor shall 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 advisory board to ensure compliance with the

operational reporting requirements established under this

chapter and the regulations of the department.

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

permit to a grower/processor or dispensary, and every three

months thereafter in a form and manner prescribed by the

department, the following information shall be provided to the

department, which shall compile the information and post it on

the department's publicly accessible Internet website:

(1) The amount of medical marijuana sold by a

grower/processor during each three-month period.

(2) The price of amounts of medical marijuana sold by

grower/processors as determined by the department.

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(3) The amount of medical marijuana purchased by each

dispensary in this Commonwealth.

(4) The cost of amounts of medical marijuana to each

dispensary in amounts as determined by the department.

(5) The total amount and dollar value of medical

marijuana sold by each dispensary in the three-month period.

§ 9442. Grower/processors.

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

grower/processor may do all of the following in accordance with

department regulations:

(1) Obtain and transport seed and immature plant

material from outside this Commonwealth during at least one

30-day period per year as designated by the department to

grow and process medical marijuana.

(2) Obtain seed and plant material from another

grower/processor within this Commonwealth to grow medical

marijuana.

(3) Obtain and transport bulk postharvest medical

marijuana plant material from another grower/processor within

this Commonwealth to process medical marijuana. As used in

this paragraph, the term "postharvest plant material"

includes all unfinished plant and plant-derived material,

whether fresh, dried, partially dried, frozen or partially

frozen, oil, concentrate or similar byproducts derived or

processed from medical marijuana or medical marijuana plants.

(4) Apply solvent-based extraction methods and processes

to medical marijuana plants that have failed a test conducted

by an approved laboratory at harvest, subject to the

following:

(i) The test failure shall be limited to yeast and

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mold.

(ii) The extracted material shall be processed into

a topical form.

(iii) The medical marijuana product must pass a

final processed test under section 9444 (relating to

laboratory).

(iv) The medical marijuana product shall be labeled

as remediated.

(v) This paragraph shall expire upon the publication

in the Pennsylvania Bulletin of a notice of the

secretary's approval of the recommendations relating to a

research initiative, as prescribed in section 9482

(relating to research initiative).

(5) Obtain harvested hemp from a person holding a permit

issued by the Department of Agriculture to grow or cultivate

hemp under 3 Pa.C.S. Ch. 15 (relating to controlled plants

and noxious weeds) if the hemp received by a grower/processor

is subject to the laboratory testing requirements of section

9444.

(6) Add excipients or hemp or hemp-derived additives

obtained or cultivated in accordance with paragraph (5).

Excipients must be pharmaceutical grade, unless otherwise

approved by the department. In determining whether to approve

an added substance, the department shall consider the

following:

(i) Whether the added substance is permitted by the

United States Food and Drug Administration for use in

food or is Generally Recognized as Safe (GRAS) under

Federal guidelines.

(ii) Whether the added substance constitutes a known

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hazard such as diacetyl, CAS number 431-03-8, and

pentanedione, CAS number 600-14-6.

(b) Limitations.--

(1) A grower/processor may only grow, store, harvest or

process medical marijuana in an indoor, enclosed, secure

facility which:

(i) includes electronic locking systems, electronic

surveillance and other features required by the

department; and

(ii) is located within this Commonwealth.

(2) For the purpose of paragraph (1), a grower/processor

shall maintain continuous video surveillance. A

grower/processor is required to retain the recordings onsite

or offsite for a period of no less than 180 days, unless

otherwise required for investigative or litigation purposes.

(1) A grower/processor may use a pesticide that is

registered by the Department of Agriculture under the act of

March 1, 1974 (P.L.90, No.24), known as the Pennsylvania

Pesticide Control Act of 1973, and designated by the

Secretary of Agriculture in consultation with the secretary

for use by a grower/processor.

(2) The Secretary of Agriculture shall transmit, by June

30, 2022, an initial list of pesticides which may be used by

grower/processors to the Legislative Reference Bureau for

publication in the Pennsylvania Bulletin. The list shall be

posted on the department's publicly accessible Internet

website and shall be reviewed and updated by the Secretary of

Agriculture, in consultation with the secretary, at least

once annually and transmitted to the Legislative Reference

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Bureau for publication in the Pennsylvania Bulletin.

§ 9443. Storage and transportation.

The department shall develop regulations relating to the

storage and transportation of medical marijuana among

grower/processors, testing laboratories and dispensaries which

ensure adequate security to guard against in-transit losses. The

tracking system developed by the department shall include all

transportation and storage of medical marijuana. The regulations

shall provide for the following:

(1) Requirements relating to shipping containers and

packaging.

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

carriers will be secured.

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

trailer.

(4) Obtaining copies of drivers' licenses and

registrations and other information related to security and

tracking.

(5) Use of GPS systems.

(6) Number of drivers or other security required to

ensure against storage or in-transit losses.

(7) Recordkeeping for delivery and receipt of medical

marijuana products.

(8) Requirements to utilize any electronic tracking

system required by the department, which shall allow for the

two-way communication, automation and application-programming

interface between a medical marijuana organization's

enterprise resource planning, inventory, accounting and

point-of-sale software and the software of the department or

the department's vendor.

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(9) T ransporting medical marijuana to a

grower/processor, approved laboratory or dispensary.

§ 9444. Laboratory.

(a) General testing.--A grower/processor shall contract with

one or more independent laboratories to test the medical

marijuana produced by the grower/processor. The department shall

approve a laboratory under this subsection and require that the

laboratory report testing results in a manner as the department

shall determine, including requiring a test at harvest and a

test at final processing. The possession by a laboratory of

medical marijuana shall be a lawful use.

(b) Stability testing.--A laboratory shall perform stability

testing to ensure the medical marijuana product's potency and

purity. A grower/processor shall retain a sample from each

medical marijuana product derived from a harvest batch and

request that a sample be identified and collected by a

laboratory approved under subsection (a) from each process lot

to perform stability testing under the following conditions:

(1) The medical marijuana product is still in inventory

at a dispensary in this Commonwealth as determined by the

seed-to-sale system.

(2) The stability testing is done at six-month intervals

for the duration of the expiration date period as listed on

the medical marijuana product and once within six months of

the expiration date.

§ 9445. Prices.

The department and the Department of Revenue shall monitor

the price of medical marijuana sold by grower/processors and by

dispensaries, including a per-dose price. If the department and

the Department of Revenue determine that the prices are

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unreasonable or excessive, the department may implement a cap on

the price of medical marijuana being sold for a period of six

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

the department and the Department of Revenue determine that the

prices become unreasonable or excessive following the expiration

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

not to exceed six months.

SUBCHAPTER G

DISPENSARIES

9446. Dispensing to patients and caregivers.

9447. Facility requirements.

9448. Posting.

§ 9446. Dispensing to patients and caregivers.

(a) General rule.--A dispensary that has been issued a

permit under Subchapter E (relating to medical marijuana

organizations) may lawfully dispense medical marijuana to a

patient or caregiver upon presentation to the dispensary of a

valid identification card for that patient or caregiver. The

dispensary shall provide to the patient or caregiver a receipt,

as appropriate. The receipt shall include all of the following:

(1) The name, address and any identification number

assigned to the dispensary by the department.

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

(3) The date the medical marijuana was dispensed.

(4) Any requirement or limitation by the practitioner as

to the form of medical marijuana for the patient.

(5) The form and the quantity of medical marijuana

dispensed.

(b) Requirements.--A dispensary shall have a physician or a

pharmacist available, either in person or by synchronous

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interaction, to verify patient certifications and to consult

with patients and caregivers at all times during the hours the

dispensary is open to receive patients and caregivers. If a

dispensary has more than one separate location, a physician

assistant or a certified registered nurse practitioner may

verify patient certifications and consult with patients and

caregivers, either in person or by synchronous interaction, at

each of the other locations in lieu of the physician or

pharmacist. A physician, a pharmacist, a physician assistant or

a certified registered nurse practitioner shall, prior to

assuming duties under this paragraph, successfully complete the

course established in section 9405(a)(6) (relating to program

established). A physician may not issue a certification to

authorize patients to receive medical marijuana or otherwise

treat patients at the dispensary.

marijuana to a patient or caregiver, the dispensary shall file

the receipt information with the department utilizing the

electronic tracking system. When filing receipts under this

subsection, the dispensary shall dispose of any electronically

recorded certification information as provided by regulation.

(d) Limitations.--No dispensary may dispense to a patient or

caregiver:

(1) a quantity of medical marijuana greater than that

which the patient or caregiver is permitted to possess under

the certification; or

(2) a form of medical marijuana prohibited by this

chapter.

(e) Supply.--When dispensing medical marijuana to a patient

or caregiver, the dispensary may not dispense an amount greater

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than a 90-day supply until the patient has exhausted all but a

seven-day supply provided pursuant to a previously issued

certification until additional certification is presented under

section 9413 (relating to duration).

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

a patient or caregiver, the dispensary shall verify the

information in subsections (e) and (g) by consulting the

electronic tracking system included in the department's

electronic database established under section 9405(a)(4)(v) and

the dispensary tracking system under section 9441(a)(2)

(relating to electronic tracking).

(g) Form of medical marijuana.--Medical marijuana dispensed

to a patient or caregiver by a dispensary shall conform to any

requirement or limitation set by the practitioner as to the form

of medical marijuana for the patient.

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

marijuana to a patient or caregiver, the dispensary shall

provide to that patient or caregiver, as appropriate, a safety

insert. The insert shall be developed and approved by the

department. The insert shall provide the following information:

(1) Lawful methods for administering medical marijuana

in individual doses.

(2) Any potential dangers stemming from the use of

medical marijuana.

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

medical marijuana and how to obtain appropriate services or

treatment for problematic usage.

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

marijuana by minors or others.

(5) Any other information as determined by the

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department.

(i) Sealed and labeled package.--Medical marijuana shall be

dispensed by a dispensary to a patient or caregiver in a sealed

and properly labeled package. The labeling shall contain the

following:

(1) The information required to be included in the

receipt provided to the patient or caregiver, as appropriate,

by the dispensary.

(2) The packaging date.

(3) Any applicable date by which the medical marijuana

should be used.

(4) A warning stating:

"This product is for medicinal use only. Women should

not consume during pregnancy or while breastfeeding

except on the advice of the practitioner who issued

the certification and, in the case of breastfeeding,

the infant's pediatrician. This product might impair

the ability to drive or operate heavy machinery. Keep

out of reach of children."

(5) The amount of individual doses contained within the

package and the species and percentage of

tetrahydrocannabinol and cannabidiol.

(6) A warning that the medical marijuana must be kept in

the original container in which it was dispensed.

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

subject the person to criminal penalties.

(8) Any other information required by the department.

§ 9447. Facility requirements.

(a) General rule.--

(1) A dispensary may dispense medical marijuana in an

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indoor, enclosed, secure facility located within this

Commonwealth or in accordance with a curbside delivery

protocol as determined by the department.

(2) For the purposes of paragraph (1), a dispensary

shall maintain continuous video surveillance. The dispensary

is required to retain the recordings onsite or offsite for a

period of no less than 180 days, unless otherwise required

for investigative or litigation purposes.

(3) A dispensary may not operate on the same site as a

facility used for growing and processing medical marijuana.

(4) A dispensary may not be located within 1,000 feet of

the property line of a public, private or parochial school or

a day-care center.

(5) A dispensary may sell medical devices and

instruments which are needed to administer medical marijuana

under this chapter.

(6) A dispensary may sell services approved by the

department related to the use of medical marijuana.

(b) Adjustment or waiver of prohibition.-- The department may

amend a prohibition under subsection (a)(4) if it is shown by

clear and convincing evidence that the amendment is necessary to

provide adequate access to patients. An amendment may include

additional security, physical plant of a facility or other

conditions necessary to protect children.

§ 9448. Posting.

A dispensary shall post a copy of its permit in a location

within its facility in a manner that is easily observable by

patients, caregivers, law enforcement officers and agents of the

department.

SUBCHAPTER H

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TAX ON MEDICAL MARIJUANA

9449. Tax on medical marijuana.

9450. Medical Marijuana Program Fund.

§ 9449. Tax on medical marijuana.

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

a grower/processor received from the sale of medical marijuana

by a grower/processor to a dispensary, to be paid by the

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

against and be paid by the grower/processor and shall not be

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

invoice, receipt or other statement or memorandum of the price

paid by a dispensary, patient or caregiver.

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

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

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

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

estimated tax payments under section 3003.2 of the Tax Reform

Code of 1971 shall not be required. A grower/processor shall

make quarterly payments under this section for each calendar

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

receipts for the calendar quarter. The tax shall be due and

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

the preceding calendar quarter on a form prescribed by the

Department of Revenue.

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

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

(e) Exemption.--Medical marijuana shall not be subject to

the tax imposed under section 202 of the Tax Reform Code of

1971.

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(f) Information.--A grower/processor that sells medical

marijuana shall provide to the Department of Revenue information

required by the department.

§ 9450. Medical Marijuana Program Fund.

(a) Fund established.--The Medical Marijuana Program Fund is

established as a special fund in the State Treasury. Money in

the fund is appropriated as set forth in subsection (c). Any

amount unspent at the end of a fiscal year shall be appropriated

to the department for its operations.

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

chapter shall be deposited into the fund. The money deposited

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

this section. Any interest accrued shall be deposited into the

fund.

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

with the following percentages:

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

Forty percent of the revenue in the fund shall be expended

for operations of the department, including outreach efforts

and other projects, as required by this chapter. Fifteen

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

department to establish the following:

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

providing medical marijuana to patients who demonstrate

financial hardship or need under this chapter, and the

department shall develop guidelines and procedures to

ensure maximum availability to individuals with financial

need;

(ii) a program to assist patients and caregivers

20210SB0473PN1148 - 193 -

with the cost associated with the waiver or reduction of

fees for identification cards under sections 9414(c)(5)

(relating to identification cards) and 9415(a)(2)

(relating to caregivers); and

(iii) a program to reimburse caregivers for the cost

of providing background checks for caregivers.

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

drug abuse prevention and counseling and treatment services,

10% of the revenue in the fund.

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

the use of medical marijuana, including the research program

established under Subchapter L (relating to research

program), 30% of the revenue in the fund. Funding shall be

provided for research into the treatment of those serious

medical conditions for which medical marijuana is available

for treatment within this Commonwealth and for research into

the use of medical marijuana to treat other medical

conditions for which medical marijuana may have legitimate

medicinal value. Money shall be used to subsidize the cost

of, or provide, medical marijuana to patients participating

in the program. However, money in the fund may not be

expended on activity under Subchapter M (relating to academic

clinical research centers and clinical registrants).

(4) To the Pennsylvania Commission on Crime and

Delinquency, for distribution to local police departments

which demonstrate a need relating to the enforcement of this

chapter, 5% of the revenue in the fund.

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

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

to the General Fund any money appropriated for the initial

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planning, organization and administration by the department with

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

17, 2016.

SUBCHAPTER I

ADMINISTRATION

9451. Governing practice and procedure.

9452. Reports by medical marijuana organizations.

9453. Law enforcement notification.

9454. Evaluation.

9455. Report.

9456. (Reserved).

9457. Temporary regulations.

§ 9451. Governing practice and procedure.

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

and procedure) shall apply to all actions of the department

under this chapter constituting an adjudication as defined in 2

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

§ 9452. Reports by medical marijuana organizations.

A medical marijuana organization shall periodically file

reports related to its activities. The department shall

determine the information required in and the frequency of

filing the reports.

§ 9453. Law enforcement notification.

Notwithstanding any provision of this chapter or any other

law to the contrary, the department may notify any appropriate

law enforcement agency of information relating to any violation

or suspected violation of this chapter. In addition, the

department shall verify to law enforcement personnel in an

appropriate case whether a certification, permit, registration

or an identification card is valid, including release of the

20210SB0473PN1148 - 195 -

name of the patient.

§ 9454. Evaluation.

The department may provide for an analysis and evaluation of

the implementation and effectiveness of this chapter, including

whether the intent and stated policy of the General Assembly

have been achieved. The department may enter into agreements

with one or more persons for the performance of an evaluation of

the implementation and effectiveness of this chapter.

§ 9455. Report.

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

report under subsection (b) every two years beginning April 17,

2018, to the following:

(1) The Governor.

(2) The President pro tempore of the Senate.

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

Senate.

(4) The Speaker of the House of Representatives.

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

House of Representatives.

(6) The chairperson and minority chairperson of the

Judiciary Committee of the Senate.

(7) The chairman and minority chairman of the Health and

Human Services Committee of the Senate.

(8) The chairman and minority chairman of the Judiciary

Committee of the House of Representatives.

(9) The chairman and minority chairman of the Health

Committee of the House of Representatives.

(10) The Attorney General of the Commonwealth.

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

included in the report:

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(1) An assessment of the use of medical marijuana as a

result of the enactment of this chapter.

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

using medical marijuana under this chapter, including adverse

events.

(3) Recommendations for amendments to this chapter for

reasons of patient safety or to aid the general welfare of

the citizens of this Commonwealth.

§ 9456. (Reserved).

§ 9457. Temporary regulations.

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

implementation of this chapter, the department may promulgate

temporary regulations that shall expire not later than two years

following the publication of the temporary regulation. The

department may promulgate temporary regulations not subject to:

(1) Sections 201, 202, 203, 204 and 205 of the act of

July 31, 1968 (P.L.769, No.240), referred to as the

Commonwealth Documents Law.

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

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

Attorneys Act.

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

the Regulatory Review Act.

(b) Expiration.--Notwithstanding any other provision of law,

the department's authority to adopt temporary regulations under

subsection (a) shall expire May 31, 2022. Regulations adopted

after this period shall be promulgated as provided by law.

temporary regulations to the Legislative Reference Bureau for

publication in the Pennsylvania Bulletin no later than October

20210SB0473PN1148 - 197 -

17, 2016.

SUBCHAPTER J

MEDICAL MARIJUANA ADVISORY BOARD

9458. Advisory board.

9459. Effectuating recommendations of advisory board.

§ 9458. Advisory board.

(a) Establishment.--The Medical Marijuana Advisory Board is

established within the department. The advisory board shall

consist of the following members:

(1) The secretary or a designee.

(2) The Commissioner of the Pennsylvania State Police or

a designee.

(3) The chairman of the State Board of Pharmacy or a

designee.

(4) The Commissioner of Professional and Occupational

Affairs or a designee.

(5) The Physician General or a designee.

(6) The president of the Pennsylvania Chiefs of Police

Association or a designee.

(7) The president of the Pennsylvania District Attorneys

Association or a designee.

(8) One member to be appointed by each of the following,

which members shall be knowledgeable and experienced in

issues relating to care and treatment of individuals with a

serious medical condition, geriatric or pediatric medicine or

clinical research:

(i) The Governor.

(ii) The President pro tempore of the Senate.

(iii) The Majority Leader of the Senate.

(iv) The Minority Leader of the Senate.

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(v) The Speaker of the House of Representatives.

(vi) The Majority Leader of the House of

Representatives.

(vii) The Minority Leader of the House of

Representatives.

(9) One member appointed by the Governor, who shall be a

patient, a family or household member of a patient or a

patient advocate.

(b) Terms.--Except as provided under subsection (g), the

members appointed under subsection (a)(8) and (9) shall serve a

term of four years or until a successor has been appointed and

qualified, but no longer than six months beyond the four-year

period.

chair of the advisory board.

(d) Voting and quorum.--The members under subsection (a)(1),

(2), (3), (4), (5), (6) and (7) shall serve ex officio and shall

have voting rights. A majority of the members shall constitute a

quorum for the purpose of organizing the advisory board,

conducting its business and fulfilling its duties. A vote of the

majority of the members present shall be sufficient for all

actions of the advisory board unless the bylaws require a

greater number.

(e) Attendance.--A member of the advisory board appointed

under subsection (a)(8) or (9) who fails to attend three

consecutive meetings shall forfeit his seat unless the

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

member should be excused from a meeting for good cause. A member

who cannot be physically present may attend meetings via

electronic means, including video conference.

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(f) Governance.--The advisory board shall have the power to

prescribe, amend and repeal bylaws, rules and regulations

governing the manner in which the business of the advisory board

is conducted and the manner in which the duties granted to it

are fulfilled. The advisory board may delegate supervision of

the administration of advisory board activities to an

administrative secretary and other employees of the department

as the secretary shall appoint.

(g) Initial terms.--The initial terms of members appointed

under subsection (a)(8) and (9) shall be for terms of one, two,

three or four years, the particular term of each member to be

designated by the secretary at the time of appointment. All

other members shall serve for a term of four years.

(h) Vacancy.--In the event that any member appointed under

subsection (a)(8) or (9) shall die or resign or otherwise become

disqualified during the member's term of office, a successor

shall be appointed in the same way and with the same

qualifications as set forth in this section and shall hold

office for the unexpired term. An appointed member of the

advisory board shall be eligible for reappointment.

(i) Expenses.--A member appointed under subsection (a)(8) or

(9) shall receive the amount of reasonable travel, hotel and

other necessary expenses incurred in the performance of the

duties of the member in accordance with Commonwealth

regulations, but shall receive no other compensation for the

member's service on the board.

(j) Duties.--The advisory board shall have the following

duties:

(1) To examine and analyze the statutory and regulatory

law relating to medical marijuana within this Commonwealth.

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

states and the nation with respect to medical marijuana.

(3) To accept and review written comments from

individuals and organizations about medical marijuana.

(4) To issue written reports to the Governor, the Senate

and the House of Representatives.

(5) The written reports under paragraph (4) shall

include recommendations and findings as to the following:

(i) Whether to change the types of medical

professionals who can issue certifications to patients.

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

medical conditions which qualify as serious medical

conditions under this chapter.

(iii) Whether to change the form of medical

marijuana permitted under this chapter.

(iv) (Reserved).

(v) How to ensure affordable patient access to

medical marijuana.

(6) The written reports under this section shall be

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

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

known as the Right-to-Know Law.

§ 9459. Effectuating recommendations of advisory board.

After receiving a report of the advisory board under section

9458(j)(4) (relating to advisory board), at the discretion of

the secretary, the department may effectuate recommendations

made by the advisory board by transmitting a notice to the

Legislative Reference Bureau for publication in the Pennsylvania

Bulletin. The secretary shall transmit notice to the Legislative

Reference Bureau for publication in the Pennsylvania Bulletin

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within 12 months of the receipt of a report of the advisory

board. The notice shall include the recommendations of the

advisory board and shall state the specific reasons for the

decision of the secretary on whether or not to effectuate each

recommendation.

SUBCHAPTER K

OFFENSES RELATED TO MEDICAL MARIJUANA

9460. Criminal diversion of medical marijuana by practitioners.

9461. Criminal diversion of medical marijuana.

9462. Criminal retention of medical marijuana.

9463. Criminal diversion of medical marijuana by patient or

caregiver.

9464. Falsification of identification cards.

9465. Adulteration of medical marijuana.

9466. Disclosure of information prohibited.

9467. Additional penalties.

9468. Other restrictions.

§ 9460 . Criminal diversion of medical marijuana by

practitioners.

In addition to any other penalty provided by law, a

practitioner commits a misdemeanor of the first degree if the

practitioner intentionally, knowingly or recklessly certifies a

person as being able to lawfully receive medical marijuana or

otherwise provides medical marijuana to a person who is not

lawfully permitted to receive medical marijuana.

§ 9461 . Criminal diversion of medical marijuana.

In addition to any other penalty provided by law, an

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

following commits a misdemeanor of the first degree if the

person intentionally, knowingly or recklessly sells, dispenses,

20210SB0473PN1148 - 202 -

trades, delivers or otherwise provides medical marijuana to a

person who is not lawfully permitted to receive medical

marijuana:

(1) A medical marijuana organization.

(2) A health care medical marijuana organization or

university participating in a research study under Subchapter

L (relating to research program).

(3) A clinical registrant or academic clinical research

center under Subchapter M (relating to academic clinical

research centers and clinical registrants).

(4) A laboratory utilized to test medical marijuana

under section 9444 (relating to laboratory).

§ 9462. Criminal retention of medical marijuana.

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

or caregiver commits a misdemeanor of the third degree if the

patient or caregiver intentionally, knowingly or recklessly

possesses, stores or maintains an amount of medical marijuana in

excess of the amount legally permitted.

§ 9463. Criminal diversion of medical marijuana by patient or

caregiver.

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

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

the patient or caregiver intentionally, knowingly or recklessly

provides medical marijuana to a person who is not lawfully

permitted to receive medical marijuana.

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

a misdemeanor of the second degree. A second or subsequent

offense constitutes a misdemeanor of the first degree.

§ 9464 . Falsification of identification cards.

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

20210SB0473PN1148 - 203 -

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

not privileged to hold an identification card, the person:

(1) possesses an identification card and either attempts

to use the card to obtain medical marijuana or obtains

medical marijuana;

(2) possesses an identification card which falsely

identifies the person as being lawfully entitled to receive

medical marijuana and either attempts to use the card to

obtain medical marijuana or obtains medical marijuana; or

(3) possesses an identification card which contains any

false information on the card and the person either attempts

to use the card to obtain medical marijuana or obtains

medical marijuana.

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

a misdemeanor of the second degree. A second or subsequent

offense under this section constitutes a misdemeanor of the

first degree.

§ 9465. Adulteration of medical marijuana.

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

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

fortifies, contaminates or changes the character or purity of

medical marijuana from that set forth on the patient's or

caregiver's identification card.

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

a misdemeanor of the second degree. A second or subsequent

offense under this section constitutes a misdemeanor of the

first degree.

§ 9466. Disclosure of information prohibited.

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

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

20210SB0473PN1148 - 204 -

principal of any of the following commits a misdemeanor of the

third degree if the person discloses, except to authorized

persons for official governmental or health care purposes, any

information related to the use of medical marijuana:

(1) A medical marijuana organization.

(2) A health care medical marijuana organization or

university participating in a research study under Subchapter

L (relating to research program).

(3) A clinical registrant or academic clinical research

center under Subchapter M (relating to academic clinical

research centers and clinical registrants).

(4) An employee or contractor of the department.

(b) Exception.--Subsection (a) shall not apply where

disclosure is permitted or required by law or by court order.

The department, including an authorized employee, requesting or

obtaining information under this chapter shall not be subject to

any criminal liability. The immunity provided by this subsection

shall not apply to any employee of the department who knowingly

and willfully discloses prohibited information under this

chapter.

§ 9467. Additional penalties.

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

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

financial backer, operator or principal of any medical marijuana

organization, health care medical organization or university

participating in a research study under Subchapter L (relating

to research program), and an employee, financial backer,

operator or principal of a clinical registrant or academic

clinical research center under Subchapter M (relating to

academic clinical research centers and clinical registrants),

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who violates any of the provisions of this chapter, other than

those specified in section 9460 (relating to criminal diversion

of medical marijuana by practitioners), 9461 (relating to

criminal diversion of medical marijuana), 9462 (relating to

criminal retention of medical marijuana), 9463 (relating to

criminal diversion of medical marijuana by patient or

caregiver), 9464 (relating to falsification of identification

cards), 9465 (relating to adulteration of medical marijuana) or

9466 (relating to disclosure of information prohibited), or any

regulation promulgated under this chapter:

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

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

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

more than six months.

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

misdemeanor of the third degree and shall, upon conviction,

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

imprisonment for not less than six months nor more than one

year, or both.

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

available to the department, the department may assess a civil

penalty for a violation of this chapter, a regulation

promulgated under this chapter or an order issued under this

chapter or regulation as provided in this subsection. The

following shall apply:

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

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

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

determining the amount of each penalty, the department shall

take the following factors into consideration:

20210SB0473PN1148 - 206 -

(i) The gravity of the violation.

(ii) The potential harm resulting from the violation

to patients, caregivers or the general public.

(iii) The willfulness of the violation.

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

being assessed.

(v) The economic benefit to the person being

assessed for failing to comply with the requirements of

this chapter, a regulation promulgated under this chapter

or an order issued under this chapter or regulation.

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

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

general public and the violator took immediate action to

remedy the violation upon learning of it, the department may

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

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

procures or causes another person to violate this chapter, a

regulation promulgated under this chapter or an order issued

under this chapter or regulation shall be subject to the

civil penalties provided under this subsection.

(1) In addition to the penalties provided in subsection

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

may impose the following sanctions:

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

to be in violation of this chapter, a regulation

promulgated under this chapter or an order issued under

this chapter or regulation.

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

conduct or activity or the occurrence of an event that

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would have disqualified the person from receiving the

permit.

(iii) Revoke or suspend the registration of a

practitioner for a violation of this chapter or a

regulation promulgated or an order issued under this

chapter or for conduct or activity which would have

disqualified the practitioner from receiving a

registration.

(iv) Suspend a permit or registration of a person

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

permit or registration could be revoked.

(v) Order restitution of funds or property

unlawfully obtained or retained by a permittee or

registrant.

(vi) Issue a cease and desist order.

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

procures or causes another person to violate this chapter

shall be subject to the sanctions provided under this

subsection.

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

person determined to be in violation of this chapter the costs

of investigation of the violation.

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

construed to require the assessment of a civil penalty or the

imposition of a sanction for a minor violation of this chapter

if the department determines that the public interest will be

adequately served under the circumstances by the issuance of a

written warning.

§ 9468. Other restrictions.

Nothing in this chapter may be construed to permit any person

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to engage in or prevent the imposition of any civil, criminal or

other penalty for the following:

(1) Undertaking any task under the influence of medical

marijuana when doing so would constitute negligence,

professional malpractice or professional misconduct.

(2) Possessing or using medical marijuana in a State or

county correctional facility, including a facility owned or

operated or under contract with the Department of Corrections

or the county which houses inmates serving a portion of their

sentences on parole or other community correction program.

Nothing in this paragraph shall be construed to apply to

employees of the facilities set forth in this paragraph. The

Department of Corrections shall adopt a written policy no

later October 17, 2017, regarding the possession and use of

medical marijuana by employees in State correctional

facilities. The governing authority of a county may adopt a

resolution no later than October 17, 2017, regarding the

possession and use of medical marijuana by employees in a

county correctional facility.

(3) Possessing or using medical marijuana in a youth

detention center or other facility which houses children

adjudicated delinquent, including the separate, secure State-

owned facility or unit utilized for sexually violent

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

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

paragraph, the term "sexually violent delinquent children"

shall have the meaning given to it in 42 Pa.C.S. § 6402

(relating to definitions). Nothing in this paragraph shall be

construed to apply to employees of the facilities set forth

in this paragraph.

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SUBCHAPTER L

RESEARCH PROGRAM

9469. Definitions.

9470. Establishment of medical marijuana research program.

9471. Medical marijuana research program administration.

9472. Approval.

9473. Requirements.

9474. Restrictions.

9475. Regulations.

9476. Nonentitlement.

§ 9469. Definitions.

The following words and phrases when used in this subchapter

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

context clearly indicates otherwise:

"Health care medical marijuana organization." A vertically

integrated health system approved by the department to dispense

medical marijuana or grow and process medical marijuana, or

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

"Vertically integrated health system." A health delivery

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

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

spectrum of care, including primary and specialty care,

hospitalization and pharmaceutical care, is provided within a

single organization.

§ 9470. Establishment of medical marijuana research program.

(a) Program established.--The department shall establish and

develop a research program to study the impact of medical

marijuana on the treatment and symptom management of serious

medical conditions. The program shall not include a clinical

registrant or academic clinical research center under Subchapter

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M (relating to academic clinical research centers and clinical

registrants).

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

(1) Review all serious medical conditions which are

cited by a practitioner upon the practitioner's certification

that a patient be granted an identification card.

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

including comorbidities, which are cited by practitioners in

the certifications of patients. The database shall also

include the form of medical marijuana certified to treat each

serious medical condition.

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

the same serious medical condition , petition the United

States Food and Drug Administration and the United States

Drug Enforcement Administration for approval to study the

condition and the impact of medical marijuana on the

condition.

(4) Concurrent with the request to the United States

Food and Drug Administration and United States Drug

Enforcement Administration, publicly announce the formation

of a research study to which a vertically integrated health

system and a university within this Commonwealth may submit a

request to participate.

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

States Food and Drug Administration and the United States

Drug Enforcement Administration, select a vertically

integrated health system or systems to conduct the research

study and designate the form or forms of medical marijuana

which will be used to treat the serious medical condition.

(6) Notify a patient who has been issued an

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identification card:

(i) that the patient has been selected to

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

to study medical marijuana as a treatment; and

(ii) where the patient may secure medical marijuana

through a health care medical marijuana organization at

no cost to the patient in accordance with subsection (c).

(7) If the United States Food and Drug Administration

and the United States Drug Enforcement Administration reject

the proposal for the research study, take all reasonable

steps to collect and collate data on the serious medical

condition and the use of medical marijuana as a treatment for

the serious medical condition and consider submitting an

additional request to the United States Food and Drug

Administration and United States Drug Enforcement

Administration for a research study on the same condition.

dispensed to patients in accordance with an approved research

study shall be paid for by the fund.

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

into consideration the geographic location of the health care

medical marijuana organization when assigning a patient to a

health care medical marijuana organization. The department shall

make an effort to assign a patient to a health care medical

marijuana organization that is located within 50 miles of the

patient's residence.

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

marijuana organization shall be provided to the university

participating in the research study for analysis.

§ 9471. Medical marijuana research program administration.

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

study for each serious medical condition. The department shall

engage universities within this Commonwealth to participate in

the collection, collation, analysis and conclusive findings of

the research studies. The department shall, by regulation,

establish the procedure to be used by health care medical

marijuana organizations with respect to:

(1) Real time inventory tracking.

(2) Real time tracking of the medical marijuana

dispensed.

(3) Recall of defective medical marijuana.

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

establish a form and procedure for universities selected to

participate in a research study to request distributions from

the fund to conduct research on medical marijuana, including

administrative costs. These distributions shall also be used to

pay for the cost of the medical marijuana so that it is not

borne by the patient participating in the research study. The

forms shall include, at a minimum, the following:

(1) The form or forms of medical marijuana to be

studied.

(2) The serious medical condition to be studied.

(1) A vertically integrated health system shall report

on the effectiveness of the use of medical marijuana for the

treatment of the serious medical condition studied and all

counterindications and noted side effects.

(2) The department shall notify the vertically

integrated health system and the university participating in

the research study of the data which is required to meet the

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United States Food and Drug Administration's and the United

States Drug Enforcement Administration's approval for the

research study.

(3) The first report, including the data required under

paragraph (2), shall be submitted to the department and made

publicly available within 180 days of the initiation of a

research study for a specific serious medical condition.

(4) An annual report of the data required under

paragraph (2) shall be submitted to the department beginning

one year after the initiation of a research study for a

specific serious medical condition and each year thereafter.

§ 9472. Approval.

A vertically integrated health system located in this

Commonwealth may petition the department to participate in a

research study to study a serious medical condition under

section 9471 (relating to medical marijuana research program

administration). Approval of the vertically integrated health

system as a health care medical marijuana organization by the

department shall authorize access within a region under section

9427(e) (relating to granting of permit) to medical marijuana

for all patients included in an approved research study.

§ 9473. Requirements.

(a) Dispensing.--A health care medical marijuana

organization that dispenses medical marijuana shall:

(1) Maintain licensure with the department as required

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

Health Care Facilities Act.

(2) Secure the medical marijuana within the associated

pharmacies of the health care medical marijuana organization

in a manner and method prescribed by the department.

20210SB0473PN1148 - 214 -

(3) Keep a daily log of the medical marijuana dispensed

and the research study with which the patient and the medical

marijuana are associated. Reports shall be delivered to the

department and the university participating in the research

study on a weekly basis.

(4) Report to the Pennsylvania Health Care Cost

Containment Council the utilization rates of those patients

participating in the research of medical marijuana and

treatment options.

(5) Only dispense medical marijuana received from a

grower/processor or a health care medical marijuana

organization that is approved to grow and process medical

marijuana.

(6) Provide all patients or caregivers with the safety

insert, prepared by the department, which includes potential

dangers, recognition and correction of problematic dosage and

any other information required by the department or which the

department deems relevant for patient safety.

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

organization that grows and processes medical marijuana shall:

(1) Maintain licensure with the department as required

under the Health Care Facilities Act.

(2) Only make available medical marijuana to health care

medical marijuana organizations that dispense medical

marijuana.

(3) Keep a daily log of medical marijuana intended for

ultimate use by patients participating in a research study.

§ 9474. Restrictions.

A health care medical marijuana organization may not

participate in a research study of any kind, including the

20210SB0473PN1148 - 215 -

program established under this subchapter, or dispense or grow

and process medical marijuana if it has violated its licensure

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

known as the Health Care Facilities Act.

§ 9475. Regulations.

The department shall, by regulation, establish the procedure

to be used by a health care medical marijuana organization that

grows and processes medical marijuana with respect to:

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

dispensing tracking system that tracks medical marijuana from

seed or immature plant stage until the medical marijuana is

provided to a patient in a research study.

(2) Security, recordkeeping, record retention and

surveillance systems relating to every stage of growing and

processing medical marijuana.

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

acquisitions, disbursements, disposals and ending inventory.

(4) A system to recall defective medical marijuana.

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

growth of medical marijuana.

(6) Testing of medical marijuana by an independent

laboratory to test the medical marijuana produced by the

health care medical marijuana organization, including

requiring a test at harvest and a test at final processing.

(7) Any other procedure deemed necessary by the

department.

§ 9476. Nonentitlement.

Nothing in this subchapter shall be construed to create an

entitlement or right of a patient to receive medical marijuana

or to participate in a research study.

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SUBCHAPTER M

ACADEMIC CLINICAL RESEARCH CENTERS

AND CLINICAL REGISTRANTS

9477. Legislative findings and declaration of policy.

9478. Definitions.

9479. Academic clinical research centers.

9480. Clinical registrants.

9481. Research study.

9482. Research initiative.

9483. Temporary regulations.

§ 9477. Legislative findings and declaration of policy.

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

a matter of legislative finding:

(1) Patients suffering from serious medical conditions

deserve the benefit of research conducted in conjunction with

the Commonwealth's medical schools to determine whether

medical marijuana will improve their conditions or symptoms.

(2) The Commonwealth has an interest in creating a

mechanism whereby the Commonwealth's medical schools and

hospitals can help develop research programs and studies in

compliance with applicable law.

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

follows:

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

create a mechanism whereby this Commonwealth's medical

schools and hospitals may provide advice to grower/processors

and dispensaries in the areas of patient health and safety,

medical applications and dispensing and management of

controlled substances, among other areas. It is the further

intention of the General Assembly to create a mechanism

20210SB0473PN1148 - 217 -

whereby the Commonwealth may encourage research associated

with medical marijuana.

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

addition to the 25 grower/processors and 50 dispensaries

initially authorized under section 9440 (relating to

limitations on permits), the operation of additional

grower/processors and dispensaries which will be approved by

the department as clinical registrants. A clinical registrant

is a grower/processor and a dispensary which has a

contractual relationship with a medical school that operates

or partners with a hospital to provide advice about medical

marijuana so that patient safety may be enhanced.

§ 9478. Definitions.

The following words and phrases when used in this subchapter

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

context clearly indicates otherwise:

"Academic clinical research center." An accredited medical

school within this Commonwealth that operates or partners with

an acute care hospital licensed within this Commonwealth that

has been approved and certified by the department to enter into

a contract with a clinical registrant.

"Clinical registrant." An entity that:

(1) is approved by the department as a clinical

registrant;

(2) has a contractual relationship with an academic

clinical research center under which the academic clinical

research center or its affiliate provides advice to the

entity, regarding, among other areas, patient health and

safety, medical applications and dispensing and management of

controlled substances; and

20210SB0473PN1148 - 218 -

(3) is approved by the department to hold a permit as

both a grower/processor and a dispensary.

§ 9479. Academic clinical research centers.

(a) General rule.--An academic clinical research center must

be approved and certified by the department before the academic

clinical research center may contract with a clinical

registrant. An academic clinical research center shall only

contract with one clinical registrant. The accredited medical

school that is seeking approval and certification from the

department as an academic clinical research center must provide

all information required by the department, including

information for the individual who will be the primary contact

for the academic clinical research center during the

department's review of the application. The accredited medical

school must also provide all information required by the

department for any licensed acute care hospital that the

accredited medical school will operate or partner with during

the time that it may be approved and certified as an academic

clinical research center by the department.

(b) Posting and publication of list.--The department shall

post a list containing the name and address of each certified

academic clinical research center on the department's publicly

accessible Internet website and transmit notice to the

Legislative Reference Bureau for publication in the Pennsylvania

Bulletin.

§ 9480. Clinical registrants.

(a) Approval.--The department may approve up to 10 clinical

registrants. Each clinical registrant may provide medical

marijuana at not more than six separate locations. The total

number of locations authorized to dispense medical marijuana

20210SB0473PN1148 - 219 -

under this section shall not exceed 60. The grower/processor and

dispensary permits issued to clinical registrants approved under

this section shall be in addition to the 25 grower/processor and

50 dispensary permits issued by the department in accordance

with section 9440(1) and (2) (relating to limitations on

permits). The limitations relating to number and location in

sections 9440(1) and (2) and 9427(e) (relating to granting of

permit) do not apply. A clinical registrant may not hold more

than one grower/processor and one dispensary permit. Once the

department approves an entity as a clinical registrant, the

entity shall comply with this subchapter. The following shall

apply:

(1) The department shall:

(i) Open applications for the approval of up to two

additional academic clinical research centers and issue

approvals to qualified academic clinical research centers

by July 16, 2016.

(ii) Open applications for the approval of up to two

additional clinical registrants by August 15, 2016, and

issue permits to qualified clinical registrants within

180 days from the date when applications are posted.

(2) If the statutory maximum number of approved academic

clinical research centers or approved clinical registrants

are not approved under paragraph (1), the department shall

reopen the application process for the approval of academic

clinical research centers and clinical registrants.

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

registrants:

(1) An entity seeking approval as a clinical registrant

shall submit an application to the department in such form

20210SB0473PN1148 - 220 -

and manner as the department prescribes. The department shall

ensure that the applicant meets the requirements of this

chapter before approving the application to become a clinical

registrant.

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

grower/processor or dispensary before seeking approval as a

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

a grower/processor or a dispensary at the same time the

entity seeks approval from the department as a clinical

registrant.

(3) An entity seeking approval as a clinical registrant

that does not already hold a permit as a grower/processor or

a dispensary shall submit the applications required under

Subchapter E (relating to medical marijuana organizations).

In reviewing an application, the department shall ensure that

the entity meets all of the requirements for the issuance of

a grower/processor permit or a dispensary permit, as

applicable.

(4) When the department issues a permit as a

grower/processor or a dispensary to an entity seeking

approval as a clinical registrant, the issuance shall not be

construed to reduce the number of permits for

growers/processors and dispensaries authorized under section

9440(1) and (2).

(i) The department shall not approve an applicant

for a grower/processor permit if the applicant has

previously had a contractual relationship with an

academic clinical research center whereby the academic

clinical research center or its affiliate provided advice

to the applicant regarding, among other areas, patient

20210SB0473PN1148 - 221 -

health and safety, medical applications and dispensing

and management of controlled substances and the applicant

subsequently sold or assigned for profit to another

entity their responsibility under the contractual

relationship.

(ii) (Reserved).

(5) Except as provided in section 9431(1)(vi) and (2)

(vi) (relating to fees and other requirements), an entity

seeking approval as a clinical registrant must pay the fees

and meet all other requirements under this chapter for

obtaining a permit as a grower/processor and a dispensary.

Upon approval of the department, a clinical registrant shall

be issued a grower/processor permit and a dispensary permit

and shall be a medical marijuana organization. As a medical

marijuana organization, a clinical registrant must comply

with all the provisions of this chapter relating to medical

marijuana organizations except as otherwise provided in this

subchapter.

(6) The clinical registrant must have a minimum of

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

capital requirement.

(7) The clinical registrant shall have all of the same

rights as a grower/processor permittee and must comply with

all other requirements of this chapter regarding growing,

processing and dispensing medical marijuana.

(8) A grower/processor facility owned by a clinical

registrant may sell its medical marijuana products to all

dispensary facilities. The facility may sell seeds, medical

marijuana plants and medical marijuana products to, or

exchange seeds, medical marijuana plants and medical

20210SB0473PN1148 - 222 -

marijuana products with, any other grower/processor facility

holding a permit under Subchapter E or this subchapter.

(9) A clinical registrant may petition the department,

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

certain of the medical marijuana products grown and processed

by its grower/processor facility to other medical marijuana

organizations holding dispensary permits under Subchapter E.

The petition must be accompanied by a written report of the

clinical registrant's research findings with respect to the

medical marijuana products which are the subject of the

petition. The department shall approve the petition if it has

been demonstrated that the medical marijuana products have a

practical effect on patients which changes a recommendation

within the medical field as indicated in the report submitted

by the clinical registrant.

(10) A dispensary owned by a clinical registrant may

dispense medical marijuana products to a patient or caregiver

who presents a valid identification card to an employee who

is authorized to dispense medical marijuana products at a

dispensary location operated by the clinical registrant,

regardless of whether the patient is a participant in a

research study or program.

§ 9481. Research study.

(a) Applicability.--The provisions of this section shall

apply upon publication of the notice under section 9490

(relating to notice).

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

approve the dispensing of medical marijuana by a clinical

registrant to the academic clinical research center for the

purpose of conducting a research study. The department shall

20210SB0473PN1148 - 223 -

develop the application and standards for approval of such

dispensing by the clinical registrant. The following apply to

the research study:

(1) The clinical registrant shall disclose the following

information to the department in its application:

(i) The reason for the research project, including

the reason for the trial.

(ii) The strain and strength of medical marijuana to

be used in the research study.

(iii) The anticipated duration of the study.

(iv) Evidence of approval of the trial by an

accredited institutional review board and any other

required regulatory approvals.

(v) Other information required by the department,

except that the department may not require disclosure of

any information that would infringe upon the academic

clinical research center's exclusive right to

intellectual property or legal obligations for patient

confidentiality.

(2) The academic clinical research center shall provide

its findings to the department within 365 days of the

conclusion of the research study or within 365 days of

publication of the results of the research study in a peer-

reviewed medical journal, whichever is later.

(3) The department shall allow the exchange of medical

marijuana seed between clinical registrants for the conduct

of research.

§ 9482. Research initiative.

(a) Authority.--An academic clinical research center, in

coordination with its contracted clinical registrant, may

20210SB0473PN1148 - 224 -

conduct a research initiative on the antimicrobial effects of

applying solvent-based extraction methods and processes to

microbial contamination of immature medical marijuana plants,

medical marijuana plants, medical marijuana or medical marijuana

products.

(b) Procedure.--An academic clinical research center shall

submit to the department for approval a completed written

research protocol of the planned research initiative. The

department shall grant approval or denial of the protocol within

15 days of its submissions. The following apply:

(1) The research initiative shall commence no later than

30 days from the date the department issues approval and

shall be completed no later than six months from the start

date of the research initiative.

(2) Research initiative findings shall be provided to

the department by the academic clinical research center

within 15 days of the research initiative's conclusion.

(3) An academic clinical research center and its

contracted clinical registrant shall present research

initiative findings to the advisory board and the board's

research subcommittee for the board's review and

consideration under sections 9458 (relating to advisory

board) and 9459 (relating to effectuating recommendations of

advisory board). The board shall issue a written report, with

recommendations and findings regarding the use of solvent-

based extraction methods and processes on microbial

contamination by a clinical registrant or grower/processor.

The secretary may approve the board's recommendation in

accordance with section 9459.

(4) Prior to implementing a recommendation of the board

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under paragraph (3), as approved by the secretary, a clinical

registrant or grower/processor shall seek approval from the

department for a change in its grower/processor extraction

process. The department shall inspect the site and facility

equipment. Upon approval, the department shall issue a notice

of final approval to implement the process.

§ 9483. Temporary regulations.

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

implementation of this subchapter, the department shall

promulgate temporary regulations that shall expire not later

than two years following the publication of the temporary

regulations. The temporary regulations shall not be subject to:

(1) Sections 201, 202, 203, 204 and 205 of the act of

July 31, 1968 (P.L.769, No.240), referred to as the

Commonwealth Documents Law.

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

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

Attorneys Act.

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

the Regulatory Review Act.

(b) Expiration.--The department's authority to adopt

temporary regulations under subsection (a) shall expire October

17, 2016. Regulations adopted after this period shall be

promulgated as provided by law.

temporary regulations to the Legislative Reference Bureau for

publication in the Pennsylvania Bulletin no later than July 16,

2016.

SUBCHAPTER N

MISCELLANEOUS PROVISIONS

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9483. Conflict.

9484. Financial and employment interests.

9485. Insurers.

9486. Protections for patients and caregivers.

9487. Schools.

9488. Day-care centers.

9489. Zoning.

9490. Notice.

9491. Applicability.

9492. Enforcement and civil actions.

§ 9483. Conflict.

The growth, processing, manufacture, acquisition,

transportation, sale, dispensing, distribution, possession and

consumption of medical marijuana permitted under this chapter

shall not be deemed to be a violation of the act of April 14,

1972 (P.L.233, No.64), known as The Controlled Substance, Drug,

Device and Cosmetic Act. If a provision of the Controlled

Substance, Drug, Device and Cosmetic Act relating to marijuana

conflicts with a provision of this chapter, this chapter shall

take precedence.

§ 9484. Financial and employment interests.

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

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

executive-level public employee, public official or party

officer, or an immediate family member thereof, shall not

intentionally or knowingly hold a financial interest in a

medical marijuana organization or in a holding company,

affiliate, intermediary or subsidiary thereof, while the

individual is an executive-level public employee, public

official or party officer and for one year following termination

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

employee, public official or party officer.

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

of the Pennsylvania Supreme Court, no executive-level public

employee, public official or party officer, or an immediate

family member thereof, shall be employed by a medical marijuana

organization or by any holding company, affiliate, intermediary

or subsidiary thereof, while the individual is an executive-

level public employee, public official or party officer and for

one year following termination of the individual's status as an

executive-level public employee, public official or party

officer.

commits a misdemeanor and shall, upon conviction, be sentenced

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

more than one year, or both.

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

shall do all of the following:

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

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

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

action taken with respect to such person. A person that

relies in good faith on a determination made under this

paragraph shall not be subject to any penalty for an action

taken, provided that all material facts set forth in the

request for the determination are correct.

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

other government positions that meet the definitions of

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

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

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employment interests). The Office of Administration shall

assist the State Ethics Commission in the development of the

list, which shall be transmitted by the State Ethics

Commission to the Legislative Reference Bureau for

publication in the Pennsylvania Bulletin biennially and

posted by the department on the department's Internet

website. Upon request, each public official shall have a duty

to provide the State Ethics Commission with adequate

information to accurately develop and maintain the list. The

State Ethics Commission may impose a civil penalty under 65

Pa.C.S. § 1109(f) (relating to penalties) upon any

individual, including any public official or executive-level

public employee, who fails to cooperate with the State Ethics

Commission under this subsection. A person that relies in

good faith on the list published by the State Ethics

Commission shall not be subject to any penalty for a

violation of this section.

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

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

subsection:

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

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

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

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

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

Governor's cabinet, Treasurer, Auditor General and Attorney

General of the Commonwealth.

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

of the Commonwealth.

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

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a county or municipality that directly receives a

distribution of revenue from the fund.

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

agency, board, commission, authority or other governmental

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

receives a distribution of revenue from the fund.

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

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

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

(3) with discretionary power which may influence or affect

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

the development of regulation or policy relating to a medical

marijuana organization or who is involved in other matters

under this chapter.

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

individual who held an uncompensated office with a governmental

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

office as of January 1, 2017.

§ 9485. Insurers.

Nothing in this chapter shall be construed to require an

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

or private funds, to provide coverage for medical marijuana.

Notwithstanding any other provision of law, no workers'

compensation carrier, self-insured employer or other insurer in

this Commonwealth may be required to provide coverage for or

otherwise reimburse the cost of medical marijuana.

§ 9486. Protections for patients and caregivers.

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

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

right or privilege, including civil penalty or disciplinary

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action by a Commonwealth licensing board or commission, solely

for lawful use of medical marijuana or manufacture or sale or

dispensing of medical marijuana, or for any other action taken

in accordance with this chapter:

(1) A patient.

(2) A caregiver.

(3) A practitioner.

(4) A medical marijuana organization.

(5) A health care medical marijuana organization or

university participating in a research study under Subchapter

L (relating to research program).

(6) A clinical registrant or academic clinical research

center under Subchapter M (relating to academic clinical

research centers and clinical registrants).

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

medical marijuana organization.

(8) An employee of a health care medical marijuana

organization or an employee of a university participating in

a research study under Subchapter L.

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

of an academic clinical research center under Subchapter M.

(10) A pharmacist, physician assistant or certified

registered nurse practitioner under section 9446(b) (relating

to dispensing to patients and caregivers).

(b) Employment.--

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

or otherwise discriminate or retaliate against an employee

regarding an employee's compensation, terms, conditions,

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

status as an individual who is certified to use medical

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marijuana.

(2) Nothing in this chapter shall require an employer to

make any accommodation of the use of medical marijuana on the

property or premises of any place of employment. If an

employer makes an adverse employment decision against an

employee or job applicant under this act, the adverse

employment decision may not be challenged under any other

State or local law.

(3) Nothing in this chapter shall require an employer to

commit any act that would put the employer or any person

acting on its behalf in violation of Federal law.

(4) An employer may require employees or job applicants

who have received a conditional offer of employment to submit

to a drug test, including a test for marijuana. An employer

may make an adverse employment decision against an employee

or job applicant who has provided an adulterated or

substituted testing sample or has refused to submit to a

lawful drug test required by an employer.

(5) An employer or entity that provides employment

services or information may indicate that a job position's

application process or the job requires a drug test.

(6) An employer may require an employee or job applicant

who has received a conditional employment offer to disclose

and produce a valid identification card if the employee's

position, or the position for which the job applicant is

applying, is a safety-sensitive position. Notwithstanding the

provisions of paragraph (1), an employer may make an adverse

employment decision against an employee or job applicant who

fails to disclose and produce a valid identification card.

(7) Notwithstanding the provisions of paragraph (1), an

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employer may make an adverse employment decision against an

employee or job applicant who discloses and produces a valid

identification card, or who uses medical marijuana, if the

employee's position, or the position for which the job

applicant is applying, is a safety-sensitive position.

(8) Notwithstanding the provisions of paragraph (1), an

employer may make an adverse employment decision against an

employee if the employee's use of medical marijuana decreases

or lessens the employee's job performance or ability to

perform the employee's job duties.

(9) If an employee is under the influence at the time of

an otherwise work-related injury and is not certified to use

medical marijuana in accordance with this act, the injury may

not be covered by the act of June 2, 1915 (P.L.736, No.338),

known as the Workers' Compensation Act.

(10) If an injured employee's employment is terminated

because the employee tests positive for marijuana and does

not produce a valid identification card, and the employer

proves that work would have been available to the injured

employee but for employee's termination from employment, the

injured worker shall not be entitled to disability benefits

under the Workers' Compensation Act.

(11) An employer shall be granted relief from charges if

a former employee is granted unemployment compensation

benefits because the employer could not accommodate the

employee's lawful use of medical marijuana.

(12) For purposes of the act of December 5, 1936 (1937,

Sp.Sess. 2, P.L.2897, No.1), known as the Unemployment

Compensation Law, an employee's separation from employment

that was caused by medical marijuana use that violated a

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lawful workplace policy or refusal to submit to a drug test

under this section shall constitute conclusive evidence of

willful misconduct.

(13) Nothing in this act shall be construed to create or

imply a cause of action for an employee or job applicant

against an employer for:

(i) Any claim that arises following an employee's or

job applicant's noncompliance with this section and which

may have been prevented had the employee or job applicant

complied.

(ii) Actions taken pursuant to an employer's

reasonable workplace drug policy, including subjecting an

employee or job applicant to a reasonable drug and

alcohol test, reasonable and nondiscriminatory random

drug test and discipline, termination of employment or

withdrawal of a job offer after a failure of a drug test.

(iii) Actions based on the employer's good faith

belief that an employee used or possessed medical

marijuana in the employer's workplace or while performing

the employee's job duties or while on call in violation

of the employer's employment policies.

(iv) Actions, including discipline or termination of

employment based on the employer's good faith belief that

an employee was impaired as a result of the use of

medical marijuana, under the influence of medical

marijuana while at the employer's workplace, under the

influence while performing the employee's job duties or

under the influence while on call in violation of the

employer's workplace drug policy.

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certified to use medical marijuana and acting in accordance with

this chapter shall not by itself be considered by a court in a

custody proceeding. In determining the best interest of a child

with respect to custody, the provisions of 23 Pa.C.S. Ch. 53

(relating to child custody) shall apply.

§ 9487. Schools.

The Department of Education shall promulgate regulations by

October 17, 2017, regarding the following:

(1) Possession and use of medical marijuana by a student

on the grounds of a preschool, primary school and a secondary

school.

(2) Possession and use of medical marijuana by an

employee of a preschool, primary school and a secondary

school on the grounds of such school.

§ 9488. Day-care centers.

The Department of Human Services shall promulgate regulations

by October 17, 2017, regarding the following:

(1) Possession and use of medical marijuana by a child

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

licensed or operated by the Department of Human Services.

(2) Possession and use of medical marijuana by an

employee of a child-care or social service center licensed or

operated by the Department of Human Services.

(3) Possession and use of medical marijuana by employees

of a youth development center or other facility which houses

children adjudicated delinquent, including the separate,

secure State-owned facility or unit for sexually violent

children, as set forth in section 9468(3) (relating to other

restrictions).

§ 9489. Zoning.

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The following apply:

(1) A grower/processor shall meet the same municipal

zoning and land use requirements as other manufacturing,

processing and production facilities that are located in the

same zoning district.

(2) A dispensary shall meet the same municipal zoning

and land use requirements as other commercial facilities that

are located in the same zoning district.

§ 9490. Notice.

Upon amendment of the Controlled Substances Act (Public Law

91-513, 84 Stat. 1236) removing marijuana from Schedule I of the

Controlled Substances Act, the department shall transmit notice

of the effective date of the amendment to the Legislative

Reference Bureau for publication in the Pennsylvania Bulletin.

§ 9491. Applicability.

(a) (Reserved).

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

authorizations shall begin upon transmittance of notice by the

department to the Legislative Reference Bureau for publication

in the Pennsylvania Bulletin that adequate temporary or

permanent regulations have been adopted to initiate the program

under this chapter .

§ 9492. Enforcement and civil actions.

(a) Regulations.--The Secretary of Labor and Industry shall

promulgate regulations to enforce section 9486(b) (relating to

protections for patients and caregivers).

(b) Civil action.--All administrative remedies shall be

exhausted prior to a complainant bringing an action under this

chapter .

Section 2. Section 3802(d)(1) of Title 75 is amended and the

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section is amended by adding a subsection to read:

§ 3802. Driving under influence of alcohol or controlled

substance.

* * *

(d) Controlled substances.--An individual may not drive,

operate or be in actual physical control of the movement of a

vehicle under any of the following circumstances:

(1) There is in the individual's blood any amount of a:

(i) Schedule I controlled substance, as defined in

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

Controlled Substance, Drug, Device and Cosmetic Act;

(ii) Schedule II or Schedule III controlled

substance, as defined in The Controlled Substance, Drug,

Device and Cosmetic Act, which has not been medically

prescribed for the individual; [or]

(iii) metabolite of a substance under subparagraph

(i) or (ii)[.]; or

(iv) marijuana, cannabis, a cannabis concentrate or

a cannabis-infused product.

* * *

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

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

subsection unless the context clearly indicates otherwise:

"Cannabis." As defined in 35 Pa.C.S. § 9202 (relating to

definitions).

"Cannabis concentrate." As defined in 35 Pa.C.S. § 9202.

"Cannabis-infused product." As defined in 35 Pa.C.S. § 9202.

Section 3. Section 3810 of Title 75 is amended to read:

§ 3810. Authorized use not a defense.

The fact that a person charged with violating this chapter is

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or has been legally entitled to use alcohol [or], controlled

substances or marijuana under the act of April 17, 2016 (P.L.

84, No.16), known as the Medical Marijuana Act, or other laws of

this Commonwealth is not a defense to a charge of violating this

chapter.

Section 4. Repeals are as follows:

(1) The General Assembly declares that the repeals under

paragraph (2) are necessary to effectuate the addition of 35

Pa.C.S. Ch. 92.

(2) The following acts and parts of acts are repealed to

the extent specified:

(i) Sections 4(1)(iv) and 13(a)(31) of the act of

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

Substance, Drug, Device and Cosmetic Act.

(ii) 18 Pa.C.S. § 7508(a)(1) and (f).

(3) The General Assembly declares that the repeal under

paragraph (4) is necessary to effectuate the addition of 35

Pa.C.S. Ch. 94.

(4) The act of April 17, 2016 (P.L.84, No.16), known as

the Medical Marijuana Act, is repealed.

Section 5. The addition of 35 Pa.C.S. Ch. 94 is a

continuation of the act of April 17, 2016 (P.L.84, No.16), known

as the Medical Marijuana Act. The following apply:

(1) Except as otherwise provided in 35 Pa.C.S. Ch. 94,

all activities initiated under the act of April 17, 2016

(P.L.84, No.16), known as the Medical Marijuana Act, shall

continue and remain in full force and effect and may be

completed under 35 Pa.C.S. Ch. 94. Orders, regulations, rules

and decisions which were made under the Medical Marijuana Act

and which are in effect on the effective date of section 4(4)

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of this act shall remain in full force and effect until

revoked, vacated or modified under 35 Pa.C.S. Ch. 94.

Contracts, obligations and collective bargaining agreements

entered into under the Medical Marijuana Act are not affected

nor impaired by the repeal of the Medical Marijuana Act.

(2) Except as set forth in paragraph (3), any difference

in language between 35 Pa.C.S. Ch. 94 and the Medical

Marijuana Act is intended only to conform to the style of the

Pennsylvania Consolidated Statutes and is not intended to

change or affect the legislative intent, judicial

construction or administration and implementation of the

Medical Marijuana Act.

(3) Paragraph (2) does not apply to the following

provisions:

(i) The addition of the definitions of "safety-

sensitive position" and "under the influence" in 35

Pa.C.S. § 9403.

(ii) The addition of 35 Pa.C.S. § 9485.

(iii) The addition of 35 Pa.C.S. § 9486(b)(2), (4),

(5), (6), (7), (8), (9), (10), (11), (12) and (13).

(4) All other acts and parts of acts are repealed

insofar as they are inconsistent with the addition of 35

Pa.C.S. Chs. 92 and 94.

Section 6. This act shall take effect immediately.

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