Regular Session 2023-2024 House Bill 2210 P.N. 2891

PRINTER'S NO. 2891

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2210

Session of

2024

INTRODUCED BY A. BROWN, GIRAL, HILL-EVANS, BURGOS, PROBST AND

CERRATO, APRIL 9, 2024

REFERRED TO COMMITTEE ON HEALTH, APRIL 9, 2024

AN ACT

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

Pennsylvania Consolidated Statutes, providing for adult use

cannabis; regulating the personal use and possession of

cannabis; establishing the Cannabis Regulatory Control Board;

providing for powers and duties of the Cannabis Regulatory

Control Board; establishing the Cannabis Business Development

Fund; providing for social and economic equity, for

regulation of cannabis business establishments, for

enforcement and immunities, for laboratory testing, for

advertising, marketing, packaging and labeling and for

preparation, destruction and regulation of cannabis and

cannabis-infused edible and nonedible products; imposing a

sales tax and excise tax on cannabis and cannabis-infused

edible and nonedible products; establishing the Cannabis

Regulation Fund; providing for cannabis clean slate and for

miscellaneous provisions; imposing penalties; consolidating

provisions relating to medical marijuana; transferring

certain powers and duties of the Department of Health to the

Cannabis Regulatory Control Board; 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; and making repeals.

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

91. Adult Use of Cannabis

93. Medical Marijuana

CHAPTER 91

ADULT USE OF CANNABIS

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 Establishments

G. Enforcement and Immunities

H. Laboratory Testing

I. Advertising, Marketing, Packaging and Labeling

J. Preparation, D estruction and Regulation of Cannabis and

Cannabis-Infused Edible and Nonedible Products

K. Taxes

L. Cannabis Clean Slate

M. Miscellaneous Provisions

SUBCHAPTER A

PRELIMINARY PROVISIONS

Sec.

9101. Scope of chapter.

9102. Definitions.

§ 9101. Scope of chapter.

This chapter relates to the adult use of marijuana in this

Commonwealth.

§ 9102. Definitions.

The following words and phrases when used in this chapter

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

context clearly indicates otherwise:

"Adult use." Cannabis that can be purchased and consumed by

an individual 21 years of age and older .

"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 edible and

nonedible products to 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 permits the

entity to offer home delivery services where cannabis and

cannabis-infused edible and nonedible products, as approved by

the board, are delivered directly to a purchaser or patient.

"Advertise." To engage in promotional activities, including

through 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 interior dispensary

signage or exterior signage displaying the name of the permitted

cannabis business establishment.

"Agent" or "cannabis business establishment 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.

"Board." The Cannabis Regulatory Control Board established

under Subchapter D (relating to Cannabis Regulatory Control

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Board).

"Cannabis." As follows:

(1) Any of the following:

(i) Marijuana, hashish or 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 THC and all other naturally produced cannabinol

derivatives, whether produced directly or indirectly by

extraction, including, delta-7 THC, delta-8 THC, delta-9

THC or any structural, optical or geometric isomers of

tetrahydrocannabinol, cannabis flower, concentrate and

cannabis-infused edible and nonedible products.

(ii) A product intended for human consumption with a

THC concentration, however derived, greater than the

allowable THC limit specified in this part.

(2) 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 or 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 establishment." An individual or entity

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

dispense, infuse or transport cannabis, including a dispensing

organization, adult use cultivation center, social and economic

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equity dispensing organization charter permit holder or micro

cultivation center.

"Cannabis business establishment agent identification card"

or "agent identification card." An identification card held by

an authorized agent of a dispensing organization, social and

economic equity dispensing organization charter permit holder,

micro cultivation center or adult use cultivation center.

"Cannabis concentrate." A product derived from cannabis that

is produced by extracting cannabinoids, including THC, with the

intended use of smoking, vaping or making a cannabis-infused

edible and nonedible product. The term includes a product

derived from cannabis that is produced by means of heat and

pressure or mechanical separations.

"Cannabis flower." Marijuana, hashish or 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

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

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

seeds or resin.

"Cannabis-infused edible product." A product meant to be

chewed, dissolved, taken sublingually or swallowed. The term

includes liquids, including beverages, food, oil, tincture,

capsule, tablet, gummies or other ingestible forms containing

cannabis or cannabis concentrate that are not intended to be

smoked or otherwise inhaled.

"Cannabis-infused nonedible product." A product meant to be

used topically or otherwise not intended to be ingested. The

term includes gels, creams, patches or ointments containing

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cannabis or cannabis concentrate.

"Cannabis paraphernalia." Any equipment, product or material

of any kind which is primarily intended or designed for any of

the following:

(1) Use in vaporizing, ingesting, inhaling or otherwise

introducing a cannabis-infused edible and nonedible product

into the human body.

(2) Preparing, storing or containing cannabis.

"Cannabis seed-to-sale tracking system" or "seed-to-sale

tracking system." A system designated by the board as the

system of record or a secondary electronic tracking system used

by a cannabis business establishment or testing laboratory that

meets all of the following criteria:

(1) The system captures everything that happens to a

cannabis plant from seed and cultivation through the growth,

harvest and manufacturing of cannabis and cannabis-infused

edible and nonedible products, including testing and

transportation, to final sale.

(2) The system uses unique-plant identification and

unique-batch identification.

(3) The system has the ability to track the involvement

of an agent or permittee with cannabis and cannabis-infused

edible and nonedible products.

(4) The system is integrated with a secondary system

used by a cannabis business establishment or a cannabis

testing facility, if applicable, in a form and manner

determined by the board.

(5) The system allows for two-way communication,

automation and a secure application-programming interface

with a cannabis business establishment's enterprise resource

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planning, inventory, accounting and point-of-sale software.

(6) The system includes a secure application program

interface capable of accessing all data required to be

transmitted to the board to ensure compliance with the

operational reporting requirements specified under this

chapter or Chapter 93 (relating to medical marijuana) and any

regulations promulgated by the board.

"Cannabis testing facility." An entity registered by the

board to test cannabis for potency and contaminants.

"Charter agreement." An agreement between a social and

economic equity applicant and a dispensing organization in which

the 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 root-bound, growing in a water solution or other propagation

matrix, that can develop into a new plant.

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

cannabis-infused edible and nonedible 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.

"Dispensing organization" or "adult use dispensing

organization." An organization, including a person, that meets

all of the following criteria:

(1) The organization is permitted by the board to

acquire cannabis from an adult use cultivation center or

micro cultivation center or other dispensary for the purpose

of selling or dispensing cannabis, cannabis concentrates,

cannabis-infused edible and nonedible products, cannabis

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seeds, paraphernalia or related supplies to purchasers under

this chapter or to patients and caregivers under Chapter 93.

(2) The organization is a dual-use dispensary and

authorized or permitted by the board to dispense medical

marijuana under Chapter 93.

(3) The organization complies with provisions of Chapter

93.

"Dispensing organization permit." A permit issued by the

board that allows a person to act as a dispensing organization

under this chapter or any regulation promulgated in accordance

with this chapter and Chapter 93.

"Disproportionately impacted area." A census tract that

satisfies the criteria 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 most recent Federal decennial census.

(2) Seventy-five percent or more of the children in the

area participate in the National School 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.

(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 for a permit under this chapter

and has a high rate of arrest, conviction and incarceration

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related to the sale, possession, use, cultivation,

manufacture or transport of cannabis.

"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

this chapter.

"Financial institution." As defined in section 3003.22(r) of

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

Code of 1971.

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

cannabis plant is cultivated to produce plant material for a

cannabis-infused edible and nonedible product. The term includes

mature plants if any of the following apply:

(1) More than two stigmas are visible at each internode

of the plant.

(2) 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.

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

control of a dispensing organization where cannabis sales occur

with access limited to individuals who are 21 years of age or

older and qualified patients and caregivers or other individuals

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as determined by the board's regulations.

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

the same meaning as grower/processor as defined in section 9303

(relating to definitions).

"Medical marijuana organization." As defined in section

9303.

"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 definition, was arrested for, convicted of or adjudicated

delinquent for any offense that is eligible for expungement

under section 9199.11(b) (relating to cannabis clean slate).

"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 a dispensing organization.

"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).

"Nonvertically integrated medical marijuana

grower/processor." A permitted medical marijuana

grower/processor in good-standing under Chapter 93 that is not

affiliated with another entity permitted under Chapter 93 and

for which there is no common or shared ownership with a medical

marijuana dispensary permitted under the laws of this

Commonwealth. For the purpose of this definition, common or

shared ownership is a direct or indirect financial, managerial

or other interest in a medical marijuana dispensary.

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"Ordinary public view." Within the sight line of a normal

visual range of an individual, 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 a

business, including corporate stock if a corporation, and

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 the percentage of

ownership.

"Patient." As defined in section 9303.

"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

a court.

"Possession limit." The amount of adult use cannabis that

may be possessed at any one time by an individual 21 years of

age or older, not including an individual who is a patient or

caregiver under Chapter 93.

"Principal officer." Any of the following:

(1) An officer, director or person who directly owns

more than a 1% beneficial interest or ownership of the

securities of a cannabis business establishment applicant or

permittee or more than a 10% beneficial interest or ownership

of the securities of a cannabis business establishment

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applicant or permittee that is a publicly traded company.

(2) A person who has a controlling interest in a

cannabis business establishment applicant or permittee or who

has the ability to elect the majority of the board of

directors of a cannabis business establishment applicant or

permittee.

(3) A person who otherwise controls a cannabis business

establishment applicant or permittee, not including a

financial institution.

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

acquires cannabis for consideration. The term does not include a

cannabis business establishment agent identification card holder

as used in accordance with Chapter 93.

"Remediation." The reprocessing of a manufactured cannabis-

infused product batch that has failed laboratory testing

conducted by a cannabis testing facility or the processing of a

harvest batch that has failed laboratory testing conducted by a

cannabis testing facility.

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

business establishment where only cannabis business

establishment agents are allowed, with limited exceptions.

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

of cannabis. The smoking of cannabis shall be permitted anywhere

cigarette smoking is permitted. Nothing in this chapter may be

construed to require a person or establishment in lawful

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

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

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

or in part by the Commonwealth.

"Social and economic equity applicant." An applicant that

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does not generate an annual income of more than $75,000 or have

financial assets exceeding $250,000 and meets any of the

following criteria:

(1) Is comprised of at least 75% ownership and control

by one or more individuals who have resided for at least five

of the preceding 10 years in a disproportionately impacted

area in this Commonwealth.

(2) Is comprised of at least 75% ownership and control

by one or more individuals who are residents of this

Commonwealth and:

(i) have been arrested for, convicted of or

adjudicated delinquent for an offense that is eligible

for expungement under this chapter; or

(ii) are members of an impacted family.

"Social and economic equity dispensing organization charter

permit ." A dispensing organization permit issued to a social

and economic equity applicant that has entered into a charter

agreement with a dispensing organization to provide financial,

mentorship, training and other support to the social and

economic equity applicant.

"THC." A delta-9 tetrahydrocannabinol and any structural,

optical or geometric isomers of tetrahydrocannabinol, including

delta-7, delta-8 and delta-10 tetrahydrocannabinol,

tetrahydrocannabinolic acid, tetrahydrocannabiphorol,

hexaydrocannabinol and any other substance, however derived,

that has similar effects on the mind or body as determined by

the board.

"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.

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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.

"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

LAWFUL USE AND AUTHORITY

Sec.

9110. Lawful use.

9111. Sharing of authority.

9112. Background checks.

§ 9110. Lawful use.

Notwithstanding any other provision of law, use or possession

of cannabis as specified under this chapter shall be lawful in

this Commonwealth.

§ 9111. Sharing of authority.

Notwithstanding any other provision of law, an authority

granted to a Commonwealth agency or Commonwealth employee or

appointee under Chapter 93 (relating to medical marijuana) shall

be shared by the Commonwealth agency or employee or appointee

to permit, discipline, revoke, regulate or make regulations

under this chapter.

§ 9112. Background checks.

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

the Pennsylvania State Police, conduct a criminal history record

check of each prospective principal officer, board member and

agent of a cannabis business establishment applying for a permit

or agent identification card under this chapter. The

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Pennsylvania State Police shall furnish, pursuant to a positive

identification, all Pennsylvania conviction information and

shall forward the national criminal history record information

to the board. After the effective date of this subsection, a

principal officer, board member or agent of a cannabis business

establishment who is convicted of diverting cannabis or

cannabis-infused edible or nonedible products or who

intentionally dispenses cannabis or cannabis-infused edible or

nonedible products in a manner not consistent with this chapter

shall be deemed to have failed the criminal history record check

under this subsection and may not be 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 Federal or State law, the fingerprints

under this subsection shall be transmitted through a live scan

fingerprint vendor and checked against the fingerprint records

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 each prospective principal officer, board member and agent

of a cannabis business establishment may be completed concurrent

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with submitting the application to the board. An agent may begin

working at a cannabis business establishment while waiting for

the result of a background check. Nothing in this 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.

SUBCHAPTER C

PERSONAL USE OF CANNABIS

Sec.

9121. Personal use of cannabis, restrictions on cultivation and

penalties.

9122. Possession limits.

9123. Individuals younger than 21 years of age.

9124. Identification, false identification and penalty.

9125. Immunities and presumptions related to the use of

cannabis by purchasers.

9126. Discrimination prohibited.

9127. Limitations and penalties.

9128. Employment and employer liability.

§ 9121. Personal use of cannabis, restrictions on cultivation

and penalties.

Beginning 180 days after the effective date of this

subsection, notwithstanding any other provision of law and

except as otherwise specified under this chapter, the following

acts shall not be a violation of this chapter and shall not be a

criminal or civil offense under State law or an ordinance of a

local government unit of this Commonwealth or be a basis for

seizure or forfeiture of assets under State law for an

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individual other than an individual younger than 21 years of

age, unless that individual, and the individual's caregiver, if

applicable, is authorized under Chapter 93 (relating to

medical marijuana) to:

(1) possess, consume, use, purchase, obtain or transport

cannabis in an amount for personal use that does not exceed

the possession limit or requirements of this chapter;

(2) possess, use, obtain or transport cannabis

paraphernalia;

(3) transfer without remuneration, within lawful

possession limits, to an individual 21 years of age or older;

(4) cultivate cannabis for personal use by patients

under Chapter 93 in accordance with the requirements of this

chapter;

(5) control property if actions that are authorized by

this chapter occur on the property in accordance with this

chapter; and

(6) smoke or vaporize cannabis concentrate anywhere

smoking is permitted.

§ 9122. Possession limits.

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

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

is not a patient, the possession limits for cannabis shall be as

follows and cumulative:

(1) Thirty grams of cannabis flower.

(2) No more than 1,000 milligrams of THC contained in

cannabis-infused edible or nonedible products.

(3) Five grams of cannabis concentrate.

(b) Excess prohibited.--A person may not knowingly obtain,

seek to obtain or possess an amount of cannabis from a

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dispensing organization that would exceed the possession limit

under this section, including cannabis that is cultivated by a

person under this chapter.

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) shall not apply to this section.

§ 9123. Individuals younger than 21 years of age.

(a) Prohibition.--An individual younger than 21 years of age

may not purchase, possess, use, process, transport, grow or

consume cannabis except as authorized under Chapter 93 (relating

to medical marijuana).

(b) Penalties for underage cannabis offenses.--

(1) An individual who violates subsection (a) commits a

summary offense and shall receive a written warning for the

first offense by a court of competent jurisdiction and may be

subject to a fine of not more than $250 for a second offense

and not more than $500 for a third and each subsequent

offense.

(2) A State or local law enforcement agency shall keep a

record of a violation of subsection (a) in a repository or

database separate from a repository or database with other

law enforcement records. A record of a violation of

subsection (a) shall only be used to determine if an

individual committed a subsequent violation of subsection

(a). A State or local law enforcement agency shall destroy a

record of a violation of subsection (a) when the individual

who committed the offense attains 21 years of age.

(3) A State or local law enforcement agency responsible

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for enforcing a violation of subsection (a) shall notify the

parent or guardian of the individual who committed the

offense if the individual is younger than 18 years of age.

(4) When an individual is charged for violating

subsection (a), the magisterial district judge may admit the

offender to the adjudication alternative as authorized under

42 Pa.C.S. § 1520 (relating to adjudication alternative

program) or any other preadjudication disposition if the

individual has not previously received a preadjudication

disposition for violating subsection (a).

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

intentionally transfers cannabis, with or without remuneration,

to an individual younger than 21 years of age, except as

authorized under Chapter 93, or intentionally allows an

individual younger than 21 years of age to purchase, possess,

use, process, transport, grow or consume cannabis, except as

authorized under Chapter 93, may be disqualified from purchasing

adult use cannabis as authorized under this chapter in addition

to being subject to additional criminal or civil penalties under

State law. The board shall promulgate regulations to implement

this subsection for the purpose of notifying dispensaries of a

disqualification under this subsection and the penalties that

may be imposed against a cannabis business establishment or

agent for intentionally transferring cannabis to an individual

younger than 21 years of age, except as authorized under Chapter

93.

§ 9124. Identification, false identification and penalty.

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

privacy, the board may not require a purchaser to provide a

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dispensing organization with personal information other than for

the purpose of verifying the purchaser's age by means of a

government-issued identification. An adult use dispensing

organization may not obtain or record personal information about

a purchaser without the purchaser's consent.

(b) Scanning identification.--A dispensing organization

shall use an electronic reader or electronic scanning device to

scan a purchaser's government-issued identification to determine

the purchaser's age and the validity of the identification. A

cannabis business establishment may operate for temporary

periods without an operational electronic reader or electronic

scanning device if a process is implemented to determine the

purchaser's age and the validity of identification.

§ 9125. Immunities and presumptions related to the use of

cannabis by purchasers.

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

age or older shall not be subject to arrest, prosecution, denial

of a right or privilege or other punishment, including, a civil

penalty or disciplinary action taken by an occupational or

professional licensing or permitting board based solely on any

of the following:

(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

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authorized as an agent by a permitted dispensing

organization.

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

cannabis or cannabis paraphernalia as authorized under this

chapter.

(4) Possessing cannabis paraphernalia.

(b) Determination of probable cause.--

(1) Mere possession of or application for authorization

to work as a cannabis business establishment agent or the

agent identification card shall not:

(i) constitute probable cause or reasonable

suspicion to believe that a crime has been committed; or

(ii) be used as the sole basis to support the search

of the person, property or residence of the individual

authorized to work as a cannabis business establishment

agent, possessing an agent identification card or

applying for authorization to work as an agent.

(2) The possession of or application for authorization

to work as a cannabis business establishment agent or

possession of an agent identification card shall not preclude

the existence of probable cause if probable cause exists

based on other grounds.

a local government unit shall not be subject to criminal or

civil penalties for taking an action in good faith in reliance

on the provisions of this chapter when acting within the scope

of employment.

(d) Law enforcement liability.--A law enforcement or

correctional agency, or an employee of a law enforcement or

correctional agency, shall not be subject to criminal or civil

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

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

the law enforcement or correctional agency or employee to

prohibit or prevent the possession or use of cannabis by any of

the following:

(1) An individual incarcerated at a correctional

institution, county jail or other facility under the

supervision of the Department of Corrections.

(2) An individual on parole or mandatory supervised

release or otherwise under the lawful jurisdiction of the law

enforcement or correctional agency or employee.

(e) Medical care.--For the purpose of receiving medical

care, including an organ transplant, an individual's use of

cannabis under this chapter shall 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 or a patient may not be prohibited

or otherwise restricted from lawful firearm ownership. The

Pennsylvania State Police, a county sheriff's office or another

law enforcement agency shall take measures to revise firearms

applications or take other necessary actions to ensure

compliance with this chapter.

(g) Child custody.--The purchase or possession of cannabis

shall not be a determining factor in a child custody matter. The

record of a legal purchase of cannabis shall not be subject to

disclosure solely due to a custody action.

§ 9126. Discrimination prohibited.

(a) Child welfare.--The presence of cannabinoid component or

metabolites in an individual's bodily fluids, possession of

20240HB2210PN2891 - 22 -

cannabis-related paraphernalia, conduct related to the use of

cannabis or the participation in cannabis-related activities

authorized 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 an action or

proceeding by a child welfare agency or family or juvenile

court. Unless the individual's actions in relation to cannabis

create an unreasonable danger to the safety of the child or

otherwise show the individual is not competent as established by

clear and convincing evidence, the prohibition under this

subsection shall include any of the following:

(1) An adverse finding, evidence or restriction of a

right or privilege in a proceeding related to the adoption of

a child.

(2) A fitness determination or a determination related

to a foster parent, guardianship, conservatorship or

trusteeship.

(3) The execution of a will or the management of an

estate.

(b) Landlords.--A landlord may not be penalized or denied a

benefit of leasing to an individual who uses cannabis under this

chapter.

construed to require a person or establishment in lawful

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

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

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

or in part by the Commonwealth.

§ 9127. Limitations and penalties.

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(a) General limitations.--This chapter shall not permit an

individual to engage in and shall not prevent the imposition of

a civil, criminal or other penalty for engaging in any of the

following:

(1) Undertaking a 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 93 (relating to medical

marijuana);

(ii) on the grounds of a preschool or primary or

secondary school, unless permitted for a patient or

caregiver under Chapter 93;

(iii) in an correctional institution;

(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; or

(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;

(ii) on the grounds of a preschool or primary or

secondary school, unless permitted for a patient;

(iii) in a correctional institution;

(iv) in a motor vehicle;

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

to provide permitted child care or other similar social

service care on the premises; or

20240HB2210PN2891 - 24 -

(vi) knowingly in close physical proximity to an

individual younger than 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 an individual

who is not authorized to use cannabis under this chapter or

Chapter 93.

(6) Transferring cannabis to an individual in violation

of this chapter or Chapter 93.

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

constable, corrections officer, probation officer or

firefighter while on duty.

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

commercial driver's license 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.

(d) THC limitations.--A person may not sell, dispense,

process, manufacture or distribute cannabis or a product

intended for consumption or inhalation.

(e) Cannabinoid product limitations.--A person may not sell,

dispense, process, manufacture or distribute a cannabinoid

product that is not derived from naturally occurring

biologically active chemical constituents.

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(f) Penalties.--A person who violates subsection (d) or (e)

is guilty of a misdemeanor of the third degree. Upon conviction,

the court may sentence the person to a pay a fine not to exceed

$10,000 for each offense under subsection (d) or (e).

§ 9128. Employment and employer liability.

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

prohibit an employer from adopting reasonable zero-tolerance

policies, drug-free workplace policies or employment policies

concerning testing, smoking, consuming, storing or using

cannabis in the workplace or while on call, provided that the

policies are 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 policies.--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, State or local restrictions on employment.

SUBCHAPTER D

CANNABIS REGULATORY CONTROL BOARD

Sec.

9131. Establishment of board.

9132. Applicability of other statutes.

9133. Board procedures.

9134. Powers and duties of board.

9135. Regulations.

9136. Temporary regulations.

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9137. Confidentiality and public disclosure.

9138. Unlicensed activities and civil penalties.

9139. Cannabis Business Development Fund.

§ 9131. Establishment of board.

(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 93 (relating

to medical marijuana) shall be transferred to the board within

180 days of the effective date of this subsection. All

authority, information, documents, databases and necessary

information of the medical marijuana program shall be

transferred to the board within 180 days of the effective date

of this subsection. The failure of the Department of Health to

timely transfer its authority, information, documents, databases

and necessary information of the medical marijuana program to

the board shall not delay or inhibit the ability of a current

medical marijuana organization on the effective date of this

subsection from commencing adult use operations.

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.

20240HB2210PN2891 - 27 -

(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

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 may not lapse and

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

20240HB2210PN2891 - 28 -

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 93. The chief medical officer shall meet

all of the following criteria:

(1) Be licensed as a healthcare practitioner by the

Commonwealth.

(2) Have the necessary cannabis experience to perform

the required duties.

(3) 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

(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 an aggregate total of 12 years. An individual appointed to

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

appointed by the appointing authority under subsection (c) and

shall 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

20240HB2210PN2891 - 29 -

with the cannabis industry, other than the member who is a

representative of 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 initial appointments within 90 days of the

effective date of this subsection. An appointment may not 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 the required background investigation. An individual who has

been convicted in any domestic or foreign jurisdiction of a

felony, other than a cannabis-related conviction, may not serve

on the board. If there is a delay in the appointing authorities

making their initial appointments to the board or in the

completion of the background investigation under this

subsection, there shall be no delay or inhibition of the ability

of a current medical marijuana organization on the effective

date of this subsection from commencing adult use operations .

§ 9132. Applicability of other statutes.

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

following acts:

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(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.

§ 9133. Board procedures.

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

attending in person, shall constitute a quorum and the

affirmative vote of a majority of the board members shall be

required for an action of the 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

20240HB2210PN2891 - 31 -

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.

§ 9134. Powers and duties of board.

(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 agency or independent agency under the

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

Commonwealth Attorneys Act.

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).

20240HB2210PN2891 - 32 -

(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 60 days of the establishment of the

board, the board shall publish the employee classification

system under subsection (e) 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 next available issue of 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 the cannabis business establishments to cultivate,

process, transport and dispense cannabis and ensure

compliance with this chapter and Chapter 93 (relating to

medical marijuana).

(4) Register cannabis business establishment agents and

ensure compliance with this chapter and Chapter 93.

(5) Have regulatory and enforcement authority over the

cultivating, processing, transporting, dispensing and using

of cannabis in this Commonwealth.

20240HB2210PN2891 - 33 -

(6) Designate a seed-to-sale tracking system to include

activities and information relating to cannabis business

establishments and electronic tracking of all cannabis under

this chapter and Chapter 93.

(7) Develop recordkeeping requirements for all books and

papers, any seed-to-sale 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 within 90 days of the filing of an

appeal.

(10) Develop and implement a comprehensive social equity

and economic development program in partnership with the

Commonwealth Financing Authority, which shall have the duty

of conducting oversight of grants and loans under this

chapter.

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

performed under this chapter and Chapter 93.

(12) Set research agenda related to Chapter 93.

(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 93.

(16) Develop strategies and procedures to prohibit the

illicit cannabis market.

20240HB2210PN2891 - 34 -

§ 9135. Regulations.

(a) Promulgation.--The board shall promulgate regulations,

with input from industry stakeholders, to implement the

provisions of this chapter and Chapter 93 (relating to medical

marijuana), including all of the following:

(1) The types of permits issued under this chapter,

including the following types of permits:

(i) Cultivation/processing.

(ii) Micro cultivation.

(iii) Dispensing.

(iv) Testing.

(2) The methods and forms of permit applications,

including timeline, fees and minimum requirements.

(3) The policies and procedures to prioritize, promote

and encourage diversity and full participation by individuals

from communities that have been disproportionately harmed by

cannabis prohibition and cannabis enforcement prohibition.

(4) Procedures to process and competitively score permit

applications.

(5) Procedures to process administrative requests,

including changes of ownership and location.

(6) Security procedures for cannabis business

establishments consistent with the procedures implemented

under Chapter 93.

(7) Enforcement procedures, including fines, suspensions

and revocations.

(8) Ownership and financial disclosure procedures and

requirements for cannabis business establishments, including

record keeping requirements.

(9) Procedures and requirements concerning the

20240HB2210PN2891 - 35 -

divestiture of a beneficial ownership interest by a person

found unqualified.

(10) Procedures, processes and requirements for

transfers of ownership, including the involvement of a

publicly traded corporation.

(11) Combining the medical program under Chapter 93 and

adult use program under this chapter.

(12) Seed-to-sale tracking system procedures.

(13) Procedures and requirements for curbside pickup

services offered by dispensing organizations.

(14) Transportation requirements, including:

(i) Establishing procedures and requirements for

home delivery services by dispensing organizations and

micro 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 cannabis business

establishments for purchasers to transport cannabis.

(iii) Details required on transportation manifests.

(iv) Policies encouraging bulk shipment where

appropriate.

(15) Labeling requirements.

(16) Cannabis-infused edible product requirements,

including the following:

(i) Ensuring that products are not likely to appeal

to minors.

(ii) Product safety regulations, including the

requiring of best manufacturing practices and appropriate

testing.

20240HB2210PN2891 - 36 -

(iii) Standards for creating clearly delineated

individual servings.

(17) Advertising and marketing regulations that balance

the ability of a cannabis business establishment to engage in

reasonable marketing and promotional activities while:

(i) Ensuring advertising and marketing does not

target 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.

(18) 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.

(19) Requirements that a cannabis business establishment

use standards and practices that align with United States

Department of Agriculture and Food and Drug Administration

standards, when appropriate for the purposes of this chapter

and Chapter 93.

(20) Procedures for the investigation and enforcement of

unregulated and unlicensed cultivation, processing,

20240HB2210PN2891 - 37 -

manufacturing, sale, dispensing or distribution of cannabis,

cannabis-infused edible or nonedible products or products

intended for consumption or inhalation in violation of

section 9127 (relating to limitations and penalties).

(b) Compliance deadline.--A permittee shall have 180 days

from the effective date of a new regulation promulgated by the

board under this section to comply with the new regulation.

§ 9136. Temporary regulations.

(a) Promulgation.--The board shall promulgate temporary

regulations no later than 180 days from the effective date of

this subsection. If the board fails to promulgate temporary

regulations under this subsection, the failure shall not delay

or inhibit the ability of a current medical marijuana

organization on the effective date of this subsection from

commencing adult use operations. The temporary regulations under

this subsection shall expire not later than three years after

the effective date of this subsection and shall not be subject

to any of the following:

(1) Section 612 of the act of April 9, 1929 (P.L.177,

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

(2) 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.

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

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

Attorneys Act.

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

the Regulatory Review Act.

(b) Compliance deadline.--A current medical marijuana

organization on the effective date of this subsection that is

20240HB2210PN2891 - 38 -

authorized to cultivate, process, dispense or transport adult

use cannabis under this chapter shall have 180 days from the

effective date of a new temporary regulation promulgated by the

board under subsection (a) to comply with the temporary

regulation.

§ 9137. Confidentiality and public disclosure.

(a) Exempt from access .-All personal information obtained by

the board relating to agents, patients or purchasers shall be

exempt from access 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 accessible for inspection and duplication

in accordance with 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.

§ 9138. Unlicensed activities and civil penalties.

(a) Unlicensed activities.-- In addition to any other penalty

provided by Federal or State law, a person who cultivates,

processes, distributes, sells or offers for sale cannabis,

cannabis-infused edible or nonedible products, cannabis

concentrates, cannabis flower or any product intended for

consumption or inhalation in violation of section 9127 (relating

to limitations and penalties) without a license issued by the

board shall be subject to a civil penalty not to exceed $10,000

for each offense. Each day a person engages in unlicensed

20240HB2210PN2891 - 39 -

activity under this subsection shall constitute a separate

offense.

(b) Enforcement.--The Attorney General, the board, a State

or local law enforcement agency or a local government unit may

investigate an unlicensed activity under subsection (a) and

engage in enforcement measures, including entering into an

intergovernmental agreement to prevent the conduct of an

unlicensed activity under subsection (a).

penalty provided by Federal or State law, upon the conduct of a

third or subsequent unlicensed activity under subsection (a), a

local government unit may suspend or revoke the business license

of the person who engaged in the unlicensed activity.

§ 9139. Cannabis Business Development Fund.

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

is established in the State Treasury. Money in the Cannabis

Business Development Fund is appropriated on a continuing basis

for the purposes specified under this section and shall not

lapse.

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

be deposited into the Cannabis Business Development Fund as

specified under this chapter. In addition, $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 Cannabis Business Development Fund

may only be used for the purposes specified under this chapter.

Any interest accrued shall be deposited into the Cannabis

Business Development Fund.

Development shall direct the investment of the Cannabis Business

20240HB2210PN2891 - 40 -

Development Fund. The State Treasurer shall credit to the

Cannabis Business Development Fund interest and earnings from

Cannabis Business Development Fund investment.

(d) Administrator.--The Department of Community and Economic

Development shall be the administrator of the Cannabis Business

Development Fund for auditing purposes.

(e) Purposes.--Money in the Cannabis Business Development

Fund shall be used for any of the following purposes:

(1) Providing low-interest-rate or zero-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) Providing grants to qualified social and economic

equity applicants to pay for ordinary and necessary expenses

to start and operate a cannabis business establishment.

(3) Providing low-interest-rate loans to so cial and

economic equity dispensing organization charter permit tees

a nd applicants to pay for legal expenses related to the

development and execution of charter agreements.

(4) Providing grants to so cial and economic equity

dispensing organization charter permit tees and applicants to

pay for legal expenses related to the development and

execution of charter agreements.

(5) Reimbursing the Department of Community and Economic

Development for costs related to the provision of low-

interest-rate loans and grants to qualified social and

economic equity applicants.

(6) Paying for outreach that may be provided or targeted

to attract and support social and economic equity applicants.

(7) Conducting study or research concerning the

20240HB2210PN2891 - 41 -

participation of minorities, women, veterans or individuals

with disabilities in the cannabis industry, including

barriers to individuals entering the industry as equity

owners of a cannabis business establishment.

(8) Assisting with job training and technical assistance

for residents of this Commonwealth in disproportionately

impacted areas.

(9) Assisting 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.

(10) Any other purpose specified under Subchapter H of

Chapter 93 (relating to tax on medical marijuana).

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

approval of a dispensing organization and adult use cultivation

center permit for current medical marijuana operators issued

before January 1, 2024, 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) Transfers.--As soon as practical after the effective

date of this subsection, the State Treasurer shall transfer the

balance of the Medical Marijuana Program Fund into the Cannabis

Business Development Fund.

(h) Prohibition.--Notwithstanding any other provision of

law, the Cannabis Business Development Fund shall not be subject

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

budgetary maneuver that would transfer money from the Cannabis

Business Development Fund into any other fund of the

20240HB2210PN2891 - 42 -

Commonwealth.

SUBCHAPTER E

SOCIAL AND ECONOMIC EQUITY

Sec.

9141. Social and economic equity.

9142. Loans and grants to social and economic equity

applicants.

9143. Fee waivers.

9144. Transfer of permit awarded to qualified social and

economic equity applicant.

§ 9141. Social and economic equity.

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

take any necessary action to ensure social and economic equity

in the cannabis industry in this Commonwealth. The board shall

partner with the Department of Community and Economic

Development in facilitating the grant and loans under this

chapter.

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

assistance of the Department of Community and Economic

Development as necessary, 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 all of the following:

(1) The number and percentage of permits provided to

social and economic equity applicants and to businesses owned

by minorities, women, veterans and individuals with

disabilities.

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

cannabis industry who meet the definition of a social and

20240HB2210PN2891 - 43 -

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

criteria of social and economic equity applicants or that are

owned by minority-owned businesses, women-owned businesses,

veteran-owned businesses or owned by individuals with

disabilities, if known to the cannabis business

establishment.

(4) Recommendations on reducing or eliminating any

identified barriers to entry, including access to capital, in

the cannabis industry.

§ 9142. 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 Department of Community and Economic Development

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 state the 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

20240HB2210PN2891 - 44 -

purposes of this section;

(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 the Commonwealth

Financing Authority's 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 in noncompliance with the terms and

conditions of the financial assistance agreement;

(7) establish application, notification, contract and

other forms, procedures or regulations deemed necessary and

appropriate; and

(8) utilize vendors or contract work to implement this

chapter.

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

all of the following criteria:

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

Financing Authority, the project furthers the goals specified

under this chapter.

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

20240HB2210PN2891 - 45 -

and provisions with respect to security, insurance,

reporting, delinquency charges, default remedies and other

matters as the Department of Community and Economic

Development shall determine appropriate to protect the public

interest and to be consistent with the purposes of 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, 2024, and each year

thereafter, the Department of Community and Economic Development

shall annually report to the Governor, the General Assembly and

the board on the outcomes and effectiveness of this section,

including all of the following:

(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.

(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

20240HB2210PN2891 - 46 -

to attract and support social and economic equity applicants.

§ 9143. Fee waivers.

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

50% of a 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 if a

social and economic equity applicant meets all the following

qualifications at the time the payment is due:

(1) The applicant, including each individual or entity

with 10% or greater ownership and each parent company,

subsidiary or affiliate, has less than a total of $750,000 of

income in the previous calendar year.

(2) The applicant, including each individual or entity

with 10% or greater ownership and each parent company,

subsidiary or affiliate, 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

20240HB2210PN2891 - 47 -

application fee and the application shall not be graded.

§ 9144. 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 all the following for

deposit into the Cannabis Business Development Fund:

(1) Fees that were waived by any Commonwealth agency

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

equity applicant, if applicable.

(2) The outstanding amount owed by the qualified social

and economic equity applicant for a loan through the Cannabis

Business Development Fund, if applicable.

(3) The full amount of a grant 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 ESTABLISHMENTS

Sec.

9151. Authority to conduct oversight of cannabis business

establishments.

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9152. Medical marijuana exemption.

9153. Authorization of current medical marijuana organizations

to commence dispensing adult use cannabis.

9154. Issuance of additional permits to current medical

marijuana organizations and qualified social and

economic equity applicants.

9155. New dispensing organization permits.

9156. Selection criteria for new adult use dispensing

organization permits.

9157. Dispensing organization operational requirements and

prohibitions.

9158. Dispensing cannabis.

9159. Agent-in-charge.

9159.1. Inventory control system.

9159.2. Storage requirements.

9159.3. Destruction and disposal of cannabis.

9159.4. Security measures.

9159.5. Recordkeeping.

9159.6. Issuance of adult use cultivation center permits.

9159.7. Issuance of adult use cultivation center permits to

current medical marijuana grower/processor permit

holders.

9159.8. New adult use cultivation center permits.

9159.9. Adult use cultivation center requirements and

prohibitions.

9159.10. Issuance of micro cultivation center permits.

9159.11. Micro cultivation center permit applications.

9159.12. Selection criteria for micro cultivation center

permits.

9159.13. (Reserved).

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9159.14. Micro cultivation center requirements and prohibitions.

9159.15. Cannabis business establishment agent identification

cards.

9159.16. Background check for cannabis business establishment

applicants.

9159.17. Renewal of cannabis business establishment permits and

cannabis business establishment agent identification

cards.

§ 9151. Authority to conduct oversight of cannabis business

establishments.

(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.--A person may not operate a cannabis

business establishment for the purpose of cultivating,

processing, dispensing or transporting cannabis or cannabis-

infused edible or nonedible products without a permit issued

under this chapter. A person may not 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

20240HB2210PN2891 - 50 -

this chapter pertaining to a cannabis business establishment

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 permittee or agent under

this chapter or take other nondisciplinary action.

(5) Adopt regulations required for the administration of

this chapter.

§ 9152. Medical marijuana exemption.

This chapter shall not apply to entities registered under

Chapter 93 (relating to medical marijuana), except where

otherwise specified.

§ 9153. Authorization of current medical marijuana

organizations to commence dispensing adult use

cannabis.

(a) Dual use permits.--A medical marijuana organization

holding a dispensary permit granted under Subchapter E or M of

Chapter 93 (relating to medical marijuana) on the effective date

of this subsection shall, within 180 days from the effective

date of this subsection, be authorized by the board to commence

selling adult use cannabis at a dispensary operating under

Chapter 93. A medical marijuana organization shall pay a fee of

$25,000 to the board, which shall be deposited into the Cannabis

Regulation Fund, before commencing the sale of adult use

cannabis.

(b) Delay or inhibit operations.--The failure of the board

to be seated or to promulgate regulations shall not delay or

inhibit the ability of a medical marijuana organization under

subsection (a) from commencing the sale of adult use cannabis at

a dispensary operating under Chapter 93. If the board is not

20240HB2210PN2891 - 51 -

seated within 180 days from the effective date of this

subsection or if the board otherwise fails to authorize a

medical marijuana organization under subsection (a) from

commencing the sale of adult use cannabis at a dispensary

operating under Chapter 93 within 180 days from the effective

date of this subsection, the medical marijuana organization

shall automatically be authorized to commence adult use cannabis

sales.

grower/processors.--

(1) A nonvertically integrated medical marijuana

grower/processor who does not currently hold a dispensary

permit under Chapter 93 and is not authorized under

subsection (a) or (b) to commence selling adult use cannabis

may apply for one adult use dispensing organization permit to

operate up to three locations for each medical marijuana

grower/processor permit held within 60 days of the board

being seated.

(2) A nonvertically integrated medical marijuana

grower/processor seeking an adult use dispensing organization

permit under paragraph (1) shall submit an application on a

form provided by the board. The application shall be

submitted by the same individual or entity that holds the

medical marijuana grower/processor permit under Chapter 93

and shall include information in at least the following

categories as determined by the board:

(i) The fees to be paid.

(ii) A business plan that complies with the

requirements under this chapter.

(iii) A security plan.

20240HB2210PN2891 - 52 -

(iv) An inventory control plan.

(v) A plan for community engagement.

(vi) Written policies and procedures regarding

recordkeeping, inventory control, safety, security,

diversion and diversity.

(vii) Facility plans, including the proposed

physical address, floor plans, security overlay and

specifications of the building exterior and interior

layout.

(viii) Documented ownership or control of the

property.

(ix) A copy of each relevant local zoning ordinance

and documentation, if necessary, of approval from the

local zoning office that the proposed dispensary location

is in compliance with each local zoning ordinance.

(x) Information regarding each principal officer.

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

and economic equity applicant, if applicable.

(3) The board may not unreasonably deny an application

under paragraph (2).

§ 9154. Issuance of additional permits to current medical

marijuana organizations and qualified social and

economic equity applicants.

(a) Medical marijuana organizations.--In addition to being

able to commence dispensing adult use cannabis from a dispensary

operating under Chapter 93 (relating to medical marijuana) in

accordance with section 9153 (relating to authorization of

current medical marijuana organizations to commence dispensing

adult use cannabis), a medical marijuana organization holding a

dispensary permit granted under Subchapter E or M of Chapter 93

20240HB2210PN2891 - 53 -

on the effective date of this subsection may apply for a second

permit for each dispensary permit held. The additional permit

shall authorize the dispensary organization to operate up to

three locations, per permit, to serve purchasers and patients in

this Commonwealth.

(b) Nonvertically integrated medical marijuana

grower/processors.--A nonvertically integrated medical marijuana

grower/processor may apply for one additional permit to operate

up to three locations to serve purchasers and qualified patients

in this Commonwealth.

nonvertically integrated medical marijuana grower/processor

issued a permit under this section may sell and dispense

cannabis to patients at each dispensary location of the medical

marijuana organization or nonvertically integrated medical

marijuana grower/processor.

(d) Priority.--A nonvertically integrated medical marijuana

grower/processor shall have priority for an additional permit

under this section on the condition that the board needs to

prioritize certain applications under this section based on

board resources.

(e) Applications.--A medical marijuana organization seeking

the issuance of an additional dispensing organization permit

under this section shall submit an application on a form

provided by the board. The application shall include information

in at least the following categories as determined by the board:

(1) The fees to be paid.

(2) A business plan that complies with the requirements

under this chapter.

(3) A security plan.

20240HB2210PN2891 - 54 -

(4) An inventory control plan.

(5) A plan for community engagement.

(6) Written policies and procedures regarding

recordkeeping, inventory control, safety, security, diversion

and diversity.

(7) Facility plans, including the proposed physical

address, floor plans, security overlay and specifications of

the building exterior and interior layout.

(8) Documented ownership or control of the property.

(9) A copy of each relevant local zoning ordinance and

documentation, if necessary, of approval from the local

zoning office that the proposed dispensary location is in

compliance with each local zoning ordinance.

(10) Information regarding each principal officer.

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

economic equity applicant, if applicable.

(f) Executed charter agreement.--As a condition of an

additional permit issued under this section, a medical marijuana

dispensary organization shall submit to the board, together with

the application under subsection (e), an executed charter

agreement between the medical marijuana dispensary organization

and a social and economic equity applicant in which the

dispensing organization agrees to provide financial, mentorship,

training, operational and other support to the social and

economic equity applicant to operate a dispensary at up to three

locations. The charter agreement may provide for a method of

repayment of any loaned financial support by a dispensing

organization over a period of 10 years and under terms that

allow the social and economic equity applicant to profit from

the business. During the term of the charter agreement, a

20240HB2210PN2891 - 55 -

dispensing organization may not take more than a 10% ownership

stake in a social and economic equity applicant's business. The

charter agreement shall be subject to board approval and audit.

The charter agreement shall provide a pathway for the social and

economic equity applicant to assume full ownership of the

business within 10 years. Except as provided under subsection

(r), a dispensing organization's failure to adhere to the terms

of the charter agreement shall be grounds to revoke the

dispensing organization's permit.

(g) Partnership.--A dispensing organization shall identify a

social and economic equity applicant to partner with through a

bona fide selection process, and the 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.

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

charter agreement specified under subsection (f), together with

the application under subsection (e), a dispensing organization

applicant under this section shall 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.

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

applicant shall submit all required information under subsection

(e) to the board. Failure of the social and economic equity

applicant to submit all required information under subsection

(e) 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 each of the applicant's

20240HB2210PN2891 - 56 -

dispensary locations.

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

that fails to provide the required elements contained in

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

of each of the applicant's dispensary locations, the board shall

issue a deficiency notice to the applicant. The applicant shall

have 30 calendar days from the date of the deficiency notice to

submit the complete information.

(k) Review.--Upon receipt of all of the required information

and documents under this section, the board shall review the

applications of both the dispensing organization applicant and

the dispensing social and economic equity 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 each dispensary

location, board inspections and providing the board with any

information specified under subsection (h) related to each

dispensary location that was not provided during the initial

application process.

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

cannabis at one of the adult use cannabis dispensing

organization's dispensary location after the completion of a

successful inspection at the 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

20240HB2210PN2891 - 57 -

organization charter permit holder.

(m) 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

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.

(n) 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.

(o) 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.

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

organization and social and economic equity dispensing

organization charter permit holder may begin selling cannabis,

cannabis-infused edible and nonedible products, cannabis

paraphernalia and related items to purchasers and patients no

earlier than June 1, 2024.

20240HB2210PN2891 - 58 -

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

between the 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 permit holder

for a dispensing organization permit.

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

this section, any medical marijuana organization holding a

permit granted under Subchapter E or M of Chapter 93 as of the

effective date of this subsection that, despite good faith

efforts, has been unable to partner with a qualified social and

economic equity applicant as specified under 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 the

payment of a fee of $100,000 to the board to be deposited into

the Cannabis Business Development Fund.

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

deposited into the Cannabis Regulation Fund, unless otherwise

specified.

§ 9155. New dispensing organization permits.

(a) Additional permits.--The board shall be the exclusive

entity authorized to issue new dispensing organization permits.

Separate and apart from any adult use dispensing organization

permits issued to a medical marijuana organization under section

9153 (relating to authorization of current medical marijuana

organizations to commence dispensing adult use cannabis) or 9154

(relating to issuance of additional permits to current medical

20240HB2210PN2891 - 59 -

marijuana organizations and qualified social and economic equity

applicants), the board shall issue up to four additional

dispensing organization permits after January 1, 2024.

(b) Dispensing.--All dispensing organization permits,

including those issued to existing medical marijuana

organizations under section 9153 or 9154, shall entitle

permittees to dispense cannabis to both adult use purchasers and

patients. A dispensing organization shall be subject to the

provisions of Chapter 93 (relating to medical marijuana).

of dispensing organization permittees 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 a single application period for an additional

permit under this section.

(d) Permit application.--An applicant seeking issuance of a

dispensing organization permit shall submit an application on a

form provided by the board. The application shall include

information in at least the following categories as determined

by the board:

(1) The fees to be paid.

(2) A business plan that complies with the requirements

under this chapter.

(3) A security plan.

(4) An inventory control plan.

(5) A plan for community engagement.

(6) Written policies and procedures regarding

recordkeeping, inventory control, safety, security and

diversity.

20240HB2210PN2891 - 60 -

(7) Facility plans, including the proposed physical

address, floor plans, security overlay and specifications of

the building exterior and interior layout.

(8) Documented ownership or control of the property.

(9) A copy of each relevant local zoning ordinance and

documentation, if necessary, of approval from the local

zoning office that the proposed dispensary location is in

compliance with each local zoning ordinance.

(10) Information regarding each principal officer.

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

economic equity applicant, if applicable.

(e) Operations .--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 the applicant's locations. If the applicant does not

become operational at each of the applicant's 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 commence building a dispensary, the board shall

inspect the physical space selected by the permittee. The board

shall verify the site is suitable for public access, there is a

sufficient distance between the site and a school, day care

center or playground, the site's layout promotes the safe

dispensing of cannabis and the site's 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 (Public

Law 101-336, 104 Stat. 327) , product handling and storage.

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

20240HB2210PN2891 - 61 -

check of each agent of an applicant under this section. 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 individual

applying as a cannabis business establishment 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. The Pennsylvania State Police shall check the

fingerprints against the fingerprint records filed in the

Pennsylvania State Police and Federal Bureau of Investigation

criminal history records databases as authorized under Federal

and State law. The Pennsylvania State Police shall furnish,

following positive identification, all conviction information in

this Commonwealth to the board.

§ 9156. Selection criteria for new adult use dispensing

organization permits.

(a) Incomplete application.--Failure by an applicant to

submit to the board all required information under section 9155

(relating to new 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 shall 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 specified under section 9155.

dispensing organization permit shall be awarded points on

applications as determined by the board.

(d) Anonymity.--Applications for new adult use dispensing

organization permits shall be scored by the board anonymously in

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accordance with regulations promulgated 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 for a new adult use dispensing

organization permit 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.

§ 9157. Dispensing organization operational requirements and

prohibitions.

(a) Requirements and prohibitions.--A dispensing

organization shall operate in accordance with the

representations made in its application and permit materials. A

dispensing organization shall be in compliance with this chapter

and the regulations promulgated under this chapter and shall

also be subject to the provisions under Chapter 93 (relating to

medical marijuana). The following shall apply:

(1) All cannabis, cannabis concentrates, cannabis-

infused edible and nonedible products and cannabis seeds

shall be obtained from an adult use cultivation center, micro

cultivation center or another dispensary registered in this

Commonwealth.

(2) A dispensing organization:

20240HB2210PN2891 - 63 -

(i) Shall include the legal name of the dispensary

on the packaging of any cannabis-infused edible and

nonedible product the dispensing organization sells.

(ii) Shall inspect and count product received from a

micro 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) Shall operate between 6 a.m. and 10 p.m. local

time or as determined by the local municipality.

(vii) Shall keep all lighting outside and inside the

dispensary in good working order and wattage sufficient

for security cameras.

(viii) Shall keep all air treatment systems that

will be installed to reduce odors in good working order.

(ix) Shall ensure that any building or equipment

used by a dispensing organization for the storage or sale

20240HB2210PN2891 - 64 -

of cannabis is maintained in a clean and sanitary

condition.

(x) Shall be free from infestation by insects,

rodents or pests.

(xi) Shall develop a recall policy and procedure as

approved by the board.

(3) A dispensing organization may not:

(i) Cultivate, process or manufacture cannabis.

(ii) Accept a cannabis-infused edible and nonedible

product from an adult use cultivation center, micro

cultivation center or dispensing organization unless it

is prepackaged and labeled in accordance with this

chapter and regulations that may be promulgated in

accordance with this chapter.

(iii) Obtain cannabis or cannabis-infused edible and

nonedible products from outside this Commonwealth.

(iv) Sell cannabis or cannabis-infused edible and

nonedible products to a purchaser unless the individual

is registered under Chapter 93 or the purchaser has been

verified to be 21 years of age or older.

(v) Refuse to conduct business with an adult use

cultivation center or micro cultivation center that can

properly deliver the product and is permitted by the

board.

(vi) Enter into agreements to allow persons who are

not cannabis business establishment agents to deliver

cannabis or to transport cannabis to purchasers, other

than through home delivery services approved by the

board.

(vii) Operate a dispensary if the:

20240HB2210PN2891 - 65 -

(A) Dispensary organization's video surveillance

equipment is inoperative.

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

inoperative, unless the dispensing organization has

the ability to record transactions to upload to the

cannabis seed-to-seed tracking system once the system

is operational.

(viii) Have fewer than two individuals working at

any time while the dispensary is open.

(ix) Sell clones or any other live plant material,

unless otherwise authorized by this chapter.

(x) Violate any other requirements or prohibitions

specified by the board.

(b) Regulations.--The board shall promulgate regulations

specifying operational requirements for dispensing

organizations, consistent with the provisions of this chapter,

including the operational requirements and prohibitions

contained in this section.

§ 9158. Dispensing cannabis.

(a) Dispensing criteria.--Prior to a cannabis business

establishment 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

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 seed-to-

sale tracking system:

20240HB2210PN2891 - 66 -

(i) The cannabis business establishment agent

identification card and dispensing cannabis business

establishment agent's identification number.

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

applicable, of cannabis or cannabis-infused edible and

nonedible product dispensed.

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

infused edible and nonedible product was dispensed.

(b) Refusal to sell.--A dispensing organization shall refuse

to sell cannabis or cannabis-infused edible and nonedible

products under any of the following circumstances:

(1) To an individual unless the individual produces

valid identification showing that the individual is 21 years

of age or older. However, a dispensing organization under

Chapter 93 (relating to medical marijuana) may sell cannabis

or cannabis-infused edible and nonedible products to an

individual who is younger than 21 years of age if the sale

complies with the provisions of Chapter 93.

(2) To an individual who is disqualified by the board.

identification shall:

(1) Be valid and unexpired.

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

person.

§ 9159. Agent-in-charge.

(a) Designation.--A dispensing organization shall designate,

at a minimum, one agent-in-charge for each permitted dispensary.

The designated agent-in-charge shall hold a cannabis business

establishment agent identification card. Maintaining an agent-

in-charge shall be a continuing requirement for the adult use

20240HB2210PN2891 - 67 -

dispensary organization permit, except as provided under

subsection (e).

(b) Requirements.--The agent-in-charge shall be an on-site

manager or a full-time agent of the dispensing organization and

shall manage the dispensary. Managing the dispensary shall

include responsibility for opening and closing the dispensary,

delivery acceptance, oversight of sales and cannabis business

establishment agents, recordkeeping, inventory, cannabis

business establishment 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.

Except for a determination that a dispensary employee has

diverted cannabis or cannabis-infused edible or nonedible

products or has intentionally dispensed cannabis or cannabis-

infused edible or nonedible products in a manner not consistent

with this chapter, which shall be reported to the board within

48 hours, the agent-in-charge shall, within 10 days, notify the

board of a 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

cannabis business establishment agents under the supervision of

the agent-in-charge and the employment relationship between the

agent-in-charge and the 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 cannabis business establishment agent

20240HB2210PN2891 - 68 -

within 10 business days after the change, including notice to

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

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 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 succeeding agent-in-charge 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. A

temporary authority may not 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 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 dispensing organization shall immediately

reclaim the cannabis business establishment agent identification

card. The dispensing organization shall promptly return the

agent identification card to the board.

(h) Application denial.--The board may deny a new

application or a renewal or discipline or revoke an agent-in-

20240HB2210PN2891 - 69 -

charge identification card for any of the following reasons:

(1) submission of misleading, incorrect, false or

fraudulent information in the application or renewal

application;

(2) violation of the requirements of this chapter or

regulations;

(3) fraudulent use of an agent 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,

ca nnabis seed-to-sale tracking 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; or

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

determination that a dispensary employee has diverted

cannabis or cannabis-infused edible or nonedible products or

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has intentionally dispensed cannabis or cannabis-infused

edible or nonedible products in a manner not consistent with

this chapter.

§ 9159.1. Inventory control system.

(a) Inventory.--A 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.--A 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 edible

and nonedible 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-

infused edible and nonedible products.

(iii) The name and registry identification number of

the permitted cannabis business establishment agent

delivering the cannabis.

(iv) The name and registry identification number of

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the cannabis business establishment agent receiving the

cannabis.

(v) The date of acquisition.

(3) The disposal of cannabis, including:

(i) A description of the products, including the

quantity, strain, variety, batch number and reason for

the cannabis disposal.

(ii) The method of disposal.

(iii) The date and time of disposal.

cultivation center or a micro cultivation center, a dispensing

organization shall confirm that the product's name, strain name,

weight and identification number on the manifest matches the

information on the cannabis-infused edible and nonedible 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

daily inventory reconciliation documenting and balancing

cannabis inventory by confirming that the board's verification

system matches the dispensing organization's point-of-sale

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

following shall apply:

(1) A dispensing organization shall provide a reason for

an inventory adjustment. Inventory adjustment documentation

shall be kept at the dispensary or maintained electronically

for two years from the date performed.

(2) If the dispensing organization identifies an anomaly

in the amount of cannabis after the daily inventory

reconciliation due to a mistake, the dispensing organization

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shall determine how the anomaly occurred and take and

document corrective action. The dispensing organization shall

work diligently to determine the reason for the anomaly and

document steps on how to address the anomoly.

(3) If the dispensing organization identifies a

discrepancy in the amount of cannabis after the daily

inventory reconciliation or through other means due to theft,

criminal activity or suspected criminal activity, the

dispensing organization shall determine how the diversion

occurred and take and document corrective action. Within 48

hours after the first discovery of the diversion due to

theft, criminal activity or suspected criminal activity, the

dispensing organization shall inform the board and the

Pennsylvania State Police in writing.

(4) The 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

regulations, 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 licensed certified public accountant that it

has been reviewed and is accurate based on the information

provided. The dispensing organization, financial statement

and accompanying documents may not be audited unless

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specifically requested by the board.

(e) Documentation.--A dispensing organization shall have all

of the following duties:

(1) Maintain the documentation required under this

section in a secure locked location at the adult use

dispensing organization, an off-site 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 a dispensing organization chooses to

have a return policy for cannabis and cannabis-infused edible

and nonedible products, the dispensing organization shall seek

prior approval from the board, including written policies as to

how returned cannabis or cannabis-infused edible and nonedible

products will be stored and quarantined from other inventory.

§ 9159.2. Storage requirements.

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

organization shall store inventory on its premises. All

inventory stored on the premises shall be secured in a

restricted access area and tracked consistently with the

inventory tracking regulations. A 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

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

20240HB2210PN2891 - 74 -

opened, if known, and quarantined from other cannabis-infused

edible and nonedible products in the vault until the cannabis-

infused edible and nonedible products are disposed. Cannabis

that was tampered with, expired or damaged may not be stored at

the premises for more than 14 calendar days.

sealed container and clearly labeled. Samples shall be

maintained in the restricted access area.

(d) Storage.--The dispensing organization storage areas

shall be maintained in accordance with the security requirements

in this chapter and any regulations promulgated by the board.

Cannabis shall be stored at appropriate temperatures and under

appropriate conditions to help ensure that the packaging,

strength, quality and purity are not adversely affected.

§ 9159.3. Destruction and disposal of cannabis.

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

nonedible products shall be destroyed by rendering the cannabis

and cannabis-infused edible and nonedible products unusable

using methods approved by the board and promptly disposed in a

manner that complies with this chapter and regulations

promulgated by the board. Disposal of the cannabis waste

rendered unusable may be delivered to a permitted solid waste

facility for final disposition. Acceptable permitted solid waste

facilities shall include all of the following::

(1) Compostable facilities.

(2) Noncompostable mixed-waste facilities.

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

concentrate or a cannabis-infused edible and nonedible product

shall be weighed, recorded and entered into the seed-to-sale

tracking system prior to rendering it unusable. Verification of

20240HB2210PN2891 - 75 -

waste inventory shall be performed by an employee who is a

manager 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.

§ 9159.4. Security measures.

(a) Measures.--A dispensing organization shall implement

security measures to protect the premises, patients and

purchasers and deter and prevent entry into and theft of

cannabis or currency in accordance with the regulations

promulgated under Chapter 93 (relating to medical marijuana) as

determined by the board.

(b) Alternative provisions.--The board may approve

alternative security provisions that the board determines are an

adequate substitute for a security requirement specified by the

board in the regulations promulgated under Chapter 93.

§ 9159.5. Recordkeeping.

(a) Record retention.--Dispensing organization records shall

be maintained electronically for two years and be available for

inspection by the board upon request. The required written

records shall include all of the following:

(1) Operating procedures.

(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

20240HB2210PN2891 - 76 -

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 a dispensing

organization closes due to insolvency, revocation, bankruptcy or

for any other reason, all records required to be maintained

shall be preserved and provided to the board.

§ 9159.6. Issuance of adult use cultivation center permits.

(a) Modifications or changes.--On or after January 1, 2024,

the board may, by rule, do any of the following:

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

cultivation center permits available, which shall at no time

exceed three permits, other than those permits issued to

current grower/processors under this chapter.

(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.--If the board determines that

additional adult use cultivation center permits should be issued

other than those permits issued to current grower/processors,

the board shall ensure that the first permit of the up to three

additional permits authorized is awarded to qualified social and

economic equity applicants.

§ 9159.7. Issuance of adult use cultivation center permits to

current medical marijuana grower/processor permit

holders.

(a) Dual use cultivation center permits.--A medical

marijuana organization holding a grower/processor permit granted

20240HB2210PN2891 - 77 -

under Subchapter E or M of Chapter 93 (relating to medical

marijuana) shall, within 180 days from the effective date of

this subsection, be authorized by the board to commence selling

adult use cannabis at a grower/processor facility operating

under Chapter 93. A medical marijuana organization holding a

grower/processor permit granted under Subchapter E or M of

Chapter 93 shall pay a nonrefundable application fee of $100,000

to the board, which shall be deposited into the Cannabis

Regulation Fund.

(b) Delay or inhibit operations.--The failure of the board

to be seated or to promulgate regulations shall not delay or

inhibit the ability of a medical marijuana organization under

subsection (a) from commencing the sale of adult use cannabis at

a grower/processor facility operating under Chapter 93. If the

board is not seated within 180 days from the effective date of

this subsection or if the board otherwise fails to authorize a

medical marijuana organization under subsection (a) from

commencing the sale of adult use cannabis at a grower/processor

facility operating under Chapter 93 within 180 days from the

effective date of this subsection, the medical marijuana

organization shall automatically be authorized to commence adult

use cannabis sales.

cultivation center permittee may operate at up to two locations.

The board shall determine the process for opening a second

cultivation center location not already operational as a medical

marijuana grower processor on the effective date of this

subsection.

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

authorized under this section to cultivate and process adult use

20240HB2210PN2891 - 78 -

cannabis shall have the following duties:

(1) Pay a nonrefundable application fee of $100,000 to

be deposited into the Cannabis Regulation Fund.

(2) Pay a nonrefundable fee of $100,000 to be deposited

into the Cannabis Business Development Fund.

(3) Provide proof of registration as a medical marijuana

grower/processor that is in good standing.

(4) Commit to completing one of the following social and

economic equity inclusion plans prior to the first expiration

of the adult use cultivation center permit:

(i) pay $100,000 to the Cannabis Business

Development Fund. This payment shall be in addition to

the fees required under this subsection;

(ii) pay $100,000 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 board 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

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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

(v) participate in a sponsorship program for at

least two years approved by the board 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.

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

cannabis-infused edible and nonedible products, an adult use

cultivation center holding both a grower/processor permit under

Chapter 93 and an adult use cultivation center permit shall

prioritize serving patients and caregivers.

(f) 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

20240HB2210PN2891 - 80 -

regulations promulgated by the board.

(g) Adult use cultivation centers.--An adult use cultivation

center shall be subject to the provisions under Chapter 93.

§ 9159.8. New adult use cultivation center permits.

If the board makes available an additional adult use

cultivation center permit in excess of the permits authorized

under section 9159.7 (relating issuance of adult use cultivation

center permits to current medical marijuana grower/processor

permit holders), the board shall determine the requirements of

an application for the permit and selection criteria and

promulgate regulations as necessary to implement this section.

§ 9159.9. 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, tracking cannabis, 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 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 shall 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

20240HB2210PN2891 - 81 -

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-infused edible

and nonedible products to any person other than a dispensing

organization or as otherwise authorized by rule of the board,

including home delivery to purchasers and patients.

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

directly or indirectly discriminate in price between different

dispensing organizations that are purchasing a like grade,

strain, brand and quality of cannabis or cannabis-infused edible

or nonedible product. Nothing in this subsection shall prevent

adult use cultivation centers from pricing cannabis differently

based on differences in cannabinoid content, in the cost of

manufacturing or processing, the quantities sold, including

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 a

dispensing organization shall 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.

(h) Loss notification.--A cannabis business establishment

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, in person or

by written or electronic communication.

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(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 regulations allowing pesticide use

in accordance with thresholds permitted in other adult use and

medical marijuana markets but may not regulate pesticide use in

a manner than is more stringent than currently regulated under

Chapter 93 (relating to medical marijuana).

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

cannabis, cannabis concentrates and cannabis-infused edible and

nonedible products, including tinctures, topicals and edibles.

An adult use cultivation center may not sell, dispense,

manufacture or distribute cannabis or cannabis-infused edible or

nonedible products with a THC potency limit higher than

specified under this chapter, including the following:

(1) 15% for cannabis flower.

(2) 40% for cannabis concentrate.

(k) Compliance.--An adult use cultivation center shall

comply with any other requirements or prohibitions specified by

regulations of the board.

§ 9159.10. 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 may issue micro cultivation center

permits, as determined by the board. Prior to issuing a permit,

the board may adopt regulations 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 shall

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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-infused edible and nonedible products to serve

patients;

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

cannabis-infused edible and nonedible 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) social and economic equity applicant participation;

and

(11) any other criteria the board deems relevant.

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 a

dispensing organization if each permittee stores currency and

cannabis and cannabis-infused edible and nonedible products in a

separate secured vault to which any other permittee does not

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have access or all permittees sharing a vault share more than

50% of the same ownership.

§ 9159.11. Micro cultivation center permit applications.

(a) Required information.--When applying for a permit, the

applicant for a micro cultivation center permit shall

electronically include information in at least the following

categories as determined by the board:

(1) The fees to be paid.

(2) A business plan that complies with the requirements

under this chapter.

(3) A security plan.

(4) An inventory control plan.

(5) A plan for community engagement.

(6) Written policies and procedures regarding

recordkeeping, inventory control, safety, security, diversion

and diversity.

(7) Facility plans, including the proposed physical

address, floor plans, security overlay and specifications of

the building exterior and interior layout.

(8) Documented ownership or control of the property.

(9) A copy of each relevant local zoning ordinance and

documentation, if necessary, of approval from the local

zoning office that the proposed dispensary location is in

compliance with each local zoning ordinance.

(10) Information regarding each principal officer.

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

economic equity applicant, if applicable.

(b) Submission.--An applicant under subsection (a) shall

submit all required information to the board. Failure by an

applicant to submit all required information may result in the

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application being disqualified.

§ 9159.12. Selection criteria for micro cultivation center

permits.

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

application under section 9159.11 (relating to micro cultivation

center permit applications) that fails to provide the required

elements contained in a section, that section may 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.

dispensing organization permit shall be awarded points on an

application as determined by the board.

(d) Anonymity.--Applications for new adult use dispensing

organization permits shall be scored by the board anonymously in

accordance with regulations promulgated 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. A

tie-breaking process shall be designed to ensure clarity,

transparency and fairness.

(e) Review.--Each application for a new adult use dispensing

organization permit 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.

20240HB2210PN2891 - 86 -

(f) Award of points.--Except in the case when an applicant

for a new adult use dispensing organization permit provides

necessary documentation of a status as a social and economic

equity applicant, a resident of this Commonwealth or an

existing farming operation, the scoring system developed by the

board shall be designed to ensure that the applicant does not

receive full points merely for providing responsive information

on a section of the application.

§ 9159.13. (Reserved).

§ 9159.14. 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, tracking cannabis, including a

physical inventory recorded weekly, accurate recordkeeping and a

staffing plan.

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

implement a security plan 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 shall 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 cannabis business establishment

agents working for the micro cultivation center, the board staff

performing inspections, Commonwealth and local law enforcement

20240HB2210PN2891 - 87 -

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 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 a 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 cannabis to any person other

than a cannabis business establishment or as otherwise

authorized by rule of the board.

(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-

infused edible or nonedible product. Nothing in this subsection

shall prevent a micro cultivation center from pricing cannabis

differently based on cannabinoid content, 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 a

dispensing organization shall be entered into a data collection

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system, packaged and labeled in compliance with this chapter and

any regulations promulgated by the board and, if the

distribution is to a dispensing organization that does not share

a premises with the dispensing 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.

(i) Notification of loss or theft.--A cannabis business

establishment 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) Pesticides.--A micro cultivation center shall comply

with all Federal and State rules and regulations regarding the

use of pesticides in addition to any regulations promulgated by

the board.

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

business establishment agent shall be permitted to transport

cannabis or cannabis-infused edible and nonedible products to

any other cannabis business establishment. A micro cultivation

center may alternatively enter into a contract with a dispensing

organization or a laboratory related to the transport of

cannabis.

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

with any other requirements or prohibitions specified by

regulations of the board.

§ 9159.15. Cannabis business establishment agent identification

cards.

(a) Required form.--The board shall promulgate regulations

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detailing the form required for an initial application or

renewal application for a cannabis business establishment agent

identification card submitted under this chapter. The form shall

include all of the following:

(1) A nonrefundable fee to accompany the initial

application or renewal application.

(2) A fingerprinting and background check requirement.

(3) Means to submit the initial application or renewal

application via electronic means.

(b) Verification.--The board shall 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 the application

within 14 days of receiving the completed application and all

supporting documentation required by regulations of the board.

establishment:

(1) shall print and issue a cannabis business

establishment agent identification card to a qualifying agent

within 14 business days of approving the initial application

or renewal application; and

(2) may allow 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.

(d) Identification.--An agent shall keep the cannabis

business establishment agent identification card under this

section visible at all times when on the property of the

cannabis business establishment where the agent is employed,

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

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the board but prior to the receipt of the cannabis business

establishment agent's identification card.

(e) Identification card requirements.--The cannabis business

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.

(4) A photograph of the cardholder.

(f) 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.

§ 9159.16. Background check for cannabis business establishment

applicants.

(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 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.

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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 concurrent with submitting an 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.

§ 9159.17. Renewal of cannabis business establishment permits

and cannabis business establishment agent

identification cards.

(a) Renewal.--A permit or agent identification card issued

under this chapter shall be renewed every four years. A cannabis

business establishment and agent shall receive written or

electronic notice no later than 90 days before the expiration of

the permit or card. The board shall grant a renewal within 30

days of submission of a renewal application if:

(1) the cannabis business establishment submits the

required nonrefundable renewal fee;

(2) the permit or agent identification card has not been

suspended or revoked for violating this chapter or

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regulations 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 a

submitted plan that have been approved by the board; and

(4) the cannabis business establishment has submitted an

agent, employee, contracting and subcontracting diversity

report as required by the board.

(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.

business establishment or cannabis business establishment agent

fails to renew a 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.--A 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.

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(e) Collection of fees and fines.--All fees or fines

collected from the renewal of a cannabis business establishment

permit or agent identification card shall be deposited into the

Cannabis Regulation Fund.

SUBCHAPTER G

ENFORCEMENT AND IMMUNITIES

Sec.

9161. Permit discipline.

9162. Immunities and presumptions relating to handling of

cannabis by cannabis business establishments and

agents.

9163. Commonwealth standards and requirements.

9164. Violation of tax acts and refusal, revocation or

suspension of permit or agent identification card.

§ 9161. Permit discipline.

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

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 $5,000 for each violation of this

chapter or regulations 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 regulation of the board and shall provide

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

administrative law and procedure).

20240HB2210PN2891 - 94 -

§ 9162. Immunities and presumptions relating to handling of

cannabis by cannabis business establishments and

agents.

(a) Immunities and presumptions.--A cannabis business

establishment or an agent shall not be subject to the following

based solely on conduct that is lawful under this chapter or any

regulations promulgated under this chapter:

(1) Prosecution.

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

the authority of the board or a State or local law

enforcement agency under this chapter.

(3) Seizure.

(4) Denial of any right or privilege.

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

privilege, including civil penalty or disciplinary action by

a business permitting or licensing board or entity for

working for a cannabis business establishment under this

chapter and regulations adopted under this chapter.

(b) Prohibition.--Any cannabis, cannabis-infused edible or

nonedible 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

20240HB2210PN2891 - 95 -

from searching an adult use cultivation center, micro

cultivation center or 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.

§ 9163. Commonwealth standards and requirements.

Any standards, requirements and regulations regarding the

health 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 regulation 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.

§ 9164. 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

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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

determined to be due.

(4) Failure to keep books and records in accordance with

this chapter or the regulations promulgated by the board.

(5) Failure to secure and display a certificate or

related permitted 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 violation has been corrected or resolved. Upon

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.

9171. Laboratory testing requirements and prohibitions.

§ 9171. Laboratory testing requirements and prohibitions.

(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

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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 or storing

cannabis or cannabis-infused edible or nonedible products;

(2) receiving or transporting cannabis or cannabis-

infused edible or nonedible products from a cannabis business

establishment; and

(3) returning or transporting cannabis or cannabis-

infused edible or nonedible products to a cannabis business

establishment.

(b) Prohibition.--A laboratory at a cannabis testing

facility may not handle, test or analyze cannabis unless

approved by the board in accordance with this section. A

laboratory at a cannabis testing facility may not be approved to

handle, test or analyze cannabis unless the laboratory:

(1) is accredited by a private laboratory accrediting

organization;

(2) has a direct or indirect financial, management or

other interest in an adult use cultivation center, micro

cultivation center, dispensary or medical marijuana

grower/processor in this Commonwealth or is affiliated with a

certifying physician under Chapter 93 (relating to medical

marijuana);

(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 two years'

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postdegree laboratory experience; or

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

sciences and a minimum of four years' postdegree

laboratory experience; and

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

annual inspection report granting accreditation and every

annual report thereafter.

(1) Immediately prior to selling any cannabis or

cannabis-infused edible or nonedible 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 at a cannabis testing

facility to select a random sample, which shall be tested by

the approved laboratory for:

(i) microbiological contaminants;

(ii) mycotoxins;

(iii) pesticide active ingredients;

(iv) heavy metals;

(v) residual solvent;

(vi) an active ingredient analysis ; and

(vii) THC potency.

(2) The board shall only require cannabis or cannabis-

infused edible and nonedible products to be tested one time

before the cannabis or cannabis-infused edible and nonedible

products can be sold to an adult use dispensing organization

for sale to purchasers. Medical marijuana shall be tested in

accordance with Chapter 93.

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

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shall, for the purposes of conducting an active ingredient

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

verification of label information.

(e) Disposal of sample.--A laboratory at a cannabis testing

facility 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 in accordance with

the board's regulations related to cannabis waste.

(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 shall still pass all

required tests.

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

cannabis flowers or cannabis-infused edible or nonedible

products may be remediated at any time prior to cannabis or

cannabis-infused edible or nonedible products being provided

to dispensaries for sale to purchasers under this chapter or

patients under Chapter 93, 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-infused edible or nonedible products

being provided to dispensaries ultimately passes independent

laboratory testing under subsection (c) based on the

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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 cannabis and medical

marijuana markets and shall publicly disclose the basis for any

standards set.

(h) Copy of test results.--A laboratory at a cannabis

testing facility 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 a dispensing organization

the laboratory test results for each batch of cannabis-infused

edible or nonedible product purchased by the adult use

dispensing organization, if sampled. Each dispensing

organization shall have those laboratory results available upon

request to purchasers and patients.

(j) Additional regulations permitted.--The board shall

promulgate regulations relating to testing in furtherance of and

consistent with this chapter.

SUBCHAPTER I

ADVERTISING, MARKETING, PACKAGING AND LABELING

Sec.

9181 . Advertising and promotions.

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9182 . Cannabis-infused edible and nonedible product packaging

and labeling.

§ 9181 . Advertising and promotions.

A cannabis business establishment shall be permitted to

advertise and market cannabis and cannabis-infused edible and

nonedible 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-

infused edible and nonedible products;

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

cannabis;

(4) makes any unsupported health claims about cannabis,

cannabis-infused edible or nonedible products or cannabis

concentrates; or

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

minor.

§ 9182. C annabis-infused edible and nonedible product packaging

and labeling.

(a) Registration.--Each cannabis-infused edible and

nonedible product produced for sale shall be registered with the

board in a form and manner provided by the board. However, no

product produced in accordance with this chapter or Chapter 93

(relating to medical marijuana) shall require board approval

prior to being produced for sale. Each product registration

shall include a label containing all information required by the

board.

(b) Packaging.--Cannabis or cannabis-infused edible and

20240HB2210PN2891 - 102 -

nonedible products intended for distribution to a dispensing

organization for sale to purchasers or patients shall be

packaged in a sealed or child-resistant container or package and

labeled in a manner consistent with current standards, including

the Consumer Product Safety Commission standards referenced

under 15 U.S.C. Ch. 39A (relating to special packaging of

household substances for protection of children).

packaging.--Each cannabis-infused edible and nonedible product

shall be wrapped or packaged at the original point of

preparation.

(d) Cannabis-infused edible and nonedible product

labeling.--Each cannabis-infused edible and nonedible 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-infused edible and nonedible

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;

(4) the identification of the independent cannabis

testing facility;

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

of manufacture for other forms of cannabis;

20240HB2210PN2891 - 103 -

(6) a "use by" date;

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

contained in the product;

(8) a content list, including:

(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

(9) the acceptable tolerances for the minimum percentage

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

(e) Prohibition.--Cannabis product packaging may 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-infused edible and nonedible 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

20240HB2210PN2891 - 104 -

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.

(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 edible

and nonedible products and cannabis concentrates shall 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 edible or nonedible

product intended for consumption shall include on the packaging

the total milligram content of THC and CBD. Each package may not

include more than a total of 1,000 milligrams of THC per package

with respect to cannabis-infused edible and nonedible products.

A package may contain multiple servings. A cannabis-infused

edible and nonedible 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 edible or nonedible product is in solid

form. As used in this paragraph, the term "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; or

20240HB2210PN2891 - 105 -

(2) if the cannabis-infused edible or nonedible 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 edible or nonedible

product consisting of multiple servings shall be homogenized so

that each serving contains the same concentration of THC.

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

other than the purchaser shall alter or destroy any labeling

affixed to the primary packaging of cannabis or cannabis-infused

edible or nonedible products after the cannabis or cannabis-

infused edible or nonedible products have been dispensed.

SUBCHAPTER J

PREPARATION, DESTRUCTION AND REGULATION OF CANNABIS AND

CANNABIS-INFUSED EDIBLE AND NONEDIBLE PRODUCTS

Sec.

9191. Preparation of cannabis-infused edible and nonedible

products.

9192. Destruction of cannabis.

9193. Local ordinances.

9194. Confidentiality.

9195. Financial institutions.

9196. Contracts enforceable.

9197. Medical marijuana.

9198. Administrative rulemaking.

§ 9191. Preparation of cannabis-infused edible and nonedible

products.

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

cannabis-infused edible and nonedible products, including

edibles, by an adult use cultivation center or a micro

cultivation center and establish regulations related to

20240HB2210PN2891 - 106 -

refrigeration, hot-holding and handling of cannabis-infused

edible and nonedible products. All cannabis-infused edible and

nonedible products shall meet the packaging and labeling

requirements specified under this chapter and any regulation

promulgated by the board.

(b) Approval.--Cannabis-infused edible and nonedible

products for sale or distribution at a dispensing organization

shall 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 edible and nonedible product.

(d) Enforcement.--The board shall promulgate regulations for

the manufacture and processing of cannabis-infused edible and

nonedible 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, processing,

distribution or transportation of cannabis-infused edible and

nonedible products. The board may inspect the premises together

with all utensils, fixtures, furniture and machinery used for

the preparation of products under this section.

§ 9192. Destruction of cannabis.

(a) Destruction.--All cannabis byproduct, scrap and

harvested cannabis not intended for distribution to an adult use

dispensing organization shall be destroyed and disposed of under

regulations adopted by the board under this chapter.

Documentation of the destruction and disposal shall be retained

at the adult use cultivation center, micro cultivation center or

cannabis testing facility as applicable for a period of not less

20240HB2210PN2891 - 107 -

than two years.

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

cultivation center or micro cultivation center shall, prior to

destruction, notify the board. A dispensing organization shall

notify the board within 48 hours of any destruction. The adult

use cultivation center, micro cultivation center or dispensing

organization shall keep a record of the date and quantity of

destruction.

destroy all cannabis, including cannabis-infused edible and

nonedible products, not sold to purchasers. Documentation of

destruction and disposal shall be retained at the dispensing

organization for a period of not less than two years.

§ 9193. 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

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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.

(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

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unit of local government entirely.

§ 9194. 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 act of February 14, 2008 (P.L.6, No.3), known as the Right-

to-Know Law.

(b) Privacy.--The information received and records kept by

the board, the Department of Community and Economic Development

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

5 U.S.C. § 552 (relating to public information; agency rules,

opinions, orders, records, and proceedings), except as provided

under this chapter. The information received and records kept by

the board, the Department of Community and Economic Development

and the Pennsylvania State Police for purposes of administering

this chapter shall not be subject to disclosure to an individual

or a public or private entity, except to the board, the

Commonwealth Financing Authority, the Pennsylvania State Police

and the 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 Right-to-Know Law.

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

board in the course of an examination, inspection or

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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 under 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 entities without permits shall

be subject to disclosure under the Right-to-Know Law.

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

of Community and Economic Development and the Pennsylvania State

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.

§ 9195. 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

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not make the information available to any person other than:

(1) the purchaser to whom the information applies;

(2) a trustee, conservator, guardian, personal

representative or agent of the purchaser 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

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.

§ 9196. 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.

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§ 9197. 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 93 (relating to medical marijuana).

If there is conflict between this chapter and Chapter 93 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 authorized to sell cannabis to adult use

purchasers and to qualified patients, and all dispensing

organizations shall be subject to the provisions under Chapter

93.

§ 9198. Administrative rulemaking.

No later than 180 days after the effective date of this

section, the board and each Commonwealth agency or department

with regulatory responsibility under this chapter shall

promulgate regulations in accordance with the duties required

under this chapter. The failure by a Commonwealth agency or

department with regulatory responsibility under this chapter to

promulgate regulations within 180 days of the effective date of

this section shall not delay or otherwise impede a cannabis

business establishment from commencing operations in accordance

with this chapter.

SUBCHAPTER K

TAXES

Sec.

9199.1. Imposition of sales tax and excise tax.

9199.2. Cannabis Regulation Fund and distribution of revenue.

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9199.3. (Reserved).

§ 9199.1. Imposition of sales tax and excise tax.

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

of 8% of the sales price for cannabis and cannabis-infused

edible and nonedible products sold or otherwise transferred to

any person other than a cannabis business establishment.

(b) Deposit of sales tax.--Sales tax revenue under

subsection (a) shall be deposited into the Cannabis Regulation

Fund.

taxes, an excise tax is imposed on each adult use dispensary

organization at the rate of 5% of the sales price for adult use

cannabis sold or otherwise transferred to any person other than

a cannabis business establishment. Except as otherwise provided

by regulation, a product subject to the tax imposed under this

subsection may not be bundled in a single transaction with a

product or service that is not subject to the tax imposed under

this subsection.

(d) Deposit of excise tax.--Excise tax revenue under

subsection (c) shall be deposited into the Cannabis Regulation

Fund.

§ 9199.2. Cannabis Regulation Fund and distribution of revenue.

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

established in the State Treasury. Money in the fund is

appropriated as specified under subsection (c). Any amount

unspent at the end of a fiscal year shall be transferred to the

General Fund if there has been an appropriation from the General

Fund for the operations of the board.

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

Regulation Fund under this chapter shall be deposited in the

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Cannabis Regulation Fund, other than tax revenue disbursed to

municipalities and counties specified under subsection (e). The

money deposited into the Cannabis Regulation Fund may only be

used for the purposes specified under this section. Any interest

accrued shall be deposited into the Cannabis Regulation Fund.

be allocated in accordance with the following:

(1) Two percent of gross receipts of the revenue in the

Cannabis Regulation Fund is appropriated to the board as

necessary for actual costs and expenses, including staffing

expenses and expenses related to administering and enforcing

this chapter.

(2) The amount of $3,000,000 is transferred annually to

the Cannabis Business Development Fund from gross receipts of

the revenue in the Cannabis Regulation Fund.

(3) The remainder of the money in the Cannabis

Regulation Fund is transferred to the General Fund to provide

economic relief to this Commonwealth.

(d) Administration.--The Department of Revenue shall

administer the taxes imposed under this chapter and may

promulgate regulations that prescribe a method and manner for

payment of the tax to ensure proper tax collection under this

chapter.

(e) Disbursement.--Revenue from all taxes collected under

this chapter shall be disbursed as follows:

(1) 10% of the revenue shall be disbursed to

municipalities in which a cannabis business establishment is

located, disbursed in proportion to the number of cannabis

business establishments within the municipality;

(2) 10% of the revenue shall be disbursed to counties in

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which a cannabis business establishment is located in an

unincorporated part of the county, disbursed in proportion to

the number of cannabis business establishments within the

unincorporated part of the county; and

(3) 80% of the revenue shall be deposited in the

Cannabis Regulation Fund.

§ 9199.3. (Reserved).

SUBCHAPTER L

CANNABIS CLEAN SLATE

Sec.

9199.11. Cannabis clean slate.

§ 9199.11. 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.--

(1) The Administrative Office of Pennsylvania Courts

shall, within six months of the effective date of this

paragraph, transmit to the Pennsylvania State Police central

repository all records related to an arrest or conviction

under subsection (a) for expungement.

(2) If the Pennsylvania State Police determines a record

transmitted under paragraph (1) is not eligible for

expungement, it shall notify the Administrative Office of

Pennsylvania Courts of the determination within 30 days of

receiving the information. Upon expiration of the 30-day

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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 individual

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.

SUBCHAPTER M

MISCELLANEOUS PROVISIONS

Sec.

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9199.21. Conflicts.

9199.22. (Reserved).

9199.23. Implementation.

§ 9199.21. Conflicts.

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.

§ 9199.22. (Reserved).

§ 9199.23. Implementation.

The issuance of licenses and other authorizations specified

under this chapter shall begin no later than 180 days after the

effective date of this section.

CHAPTER 93

MEDICAL MARIJUANA

Subchapter

A. Preliminary Provisions

B. Program

C. Practitioners

D. Patients

E. Medical Marijuana Organizations

F. Medical Marijuana Controls

G. Dispensaries

H. Tax on Medical Marijuana

I. Administration

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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.

9301 . Scope of chapter.

9302 . Declaration of policy.

9303 . Definitions.

9304 . Transfer of certain powers and duties of department to

board .

§ 9301. Scope of chapter.

This chapter relates to the regulation and use of medical

marijuana in this Commonwealth.

§ 9302. 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

which balances the need of patients to have access to the

latest treatments with the need to promote patient

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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.

§ 9303. 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 9391 (relating to advisory board).

"Board." The Cannabis Regulatory Control Board established

under Subchapter D of Chapter 91 (relating to Cannabis

Regulatory Control Board).

"Cannabis-infused edible product." A product meant to be

chewed, dissolved, taken sublingually or swallowed. The term

includes liquids, including beverages, food, oil, tincture,

capsule, tablet, gummies or other ingestible forms containing

cannabis or cannabis concentrate that is not intended to be

smoked or otherwise inhaled.

"Cannabis-infused nonedible product." A product meant to be

used topically or otherwise not intended to be ingested. The

term includes gels, creams, patches or ointments containing

cannabis or cannabis concentrate.

"Caregiver." The term includes the following entities

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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 9337(2) (relating to minors).

(3) Individuals designated in writing, for purposes of

section 9332 (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;

(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 9332 , 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

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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

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.

"Chief medical officer." The chief medical officer hired

under section 9131(f) (relating to establishment of board).

"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,

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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.

"Executive director." The executive director of the board.

"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.

"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 9372 (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

20240HB2210PN2891 - 123 -

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 9331

(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

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

20240HB2210PN2891 - 124 -

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 9321 (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

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,

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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,

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.

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(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) Posttraumatic stress disorder.

(13) Intractable seizures.

(14) Glaucoma.

(15) Sickle cell anemia.

(16) Severe chronic or intractable pain of neuropathic

origin or severe chronic or intractable pain.

(17) Autism.

(18) Other conditions that are recommended by the chief

medical officer and approved by the advisory board under

section 9392 (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.

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"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.

§ 9304 . Transfer of certain powers and duties of department to

board .

The following shall apply 180 days after the effective date

of this section:

(1) The board shall exercise the authority and perform

the duties of the department under this chapter.

(2) The executive director shall exercise the authority

and perform the duties of the secretary under this chapter.

(3) Any reference to the department which concerns the

powers or duties specified in this chapter shall be deemed a

reference to the board.

(4) Any reference to the secretary which concerns the

powers or duties specified in this chapter shall be deemed a

reference to the executive director.

(5) The following are transferred to the board:

(i) All personnel, allocations, appropriations,

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equipment, files, records, contracts, agreements,

obligations and other materials which are used, employed

or expended by the department in connection with the

functions transferred by this section to the board in the

first instance and as if these contracts, agreements and

obligations had been incurred or entered into by the

board.

(ii) The personnel, appropriations, equipment and

other items and material transferred to the board by this

section shall include an appropriate portion of the

general administrative, overhead and supporting

personnel, appropriations, equipment and other material

of the department and shall also include, where

applicable, Federal grants and money and other benefits

from any Federal program.

(iii) All personnel transferred under this section

shall retain any civil service employment status assigned

to the personnel.

(6) To provide an efficient and cost-minimizing

transition, licenses, contracts, deeds and other official

actions of the board shall not be affected by the use of the

designation as the department. The board may continue to use

the name "Department of Health" on badges, licenses,

contracts, deeds, stationery and other official documents

until existing supplies are exhausted.

(7) To provide an efficient and cost-minimizing

transition, licenses, contracts, deeds and other official

actions of the executive director shall not be affected by

the use of the designation as the secretary. The executive

director may continue to use the name "Secretary of Health"

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on badges, licenses, contracts, deeds, stationery and other

official documents until existing supplies are exhausted.

SUBCHAPTER B

PROGRAM

Sec.

9311 . Program established.

9312 . Confidentiality and public disclosure.

9313 . Lawful use of medical marijuana.

9314 . (Reserved).

§ 9311. 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

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or medical marijuana organization.

(ii) Ability to establish the authenticity of

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 9351 (relating

to electronic tracking) must include information under

section 9361(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

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medical marijuana, and other information deemed necessary by

the department. Successful completion of the course shall be

approved as continuing education credits as determined by:

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

of Osteopathic Medicine.

(ii) The State Board of Pharmacy.

(iii) The State Board of Nursing.

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

employees of a medical marijuana 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,

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including the collection of data and the provision of

research grants.

(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.

§ 9312 . Confidentiality and public disclosure.

(a) Patient information.--The department shall maintain a

20240HB2210PN2891 - 133 -

confidential list of patients and caregivers to whom it has

issued identification cards. All information obtained by the

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 9332 (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.

§ 9313. Lawful use of medical marijuana.

20240HB2210PN2891 - 134 -

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

the contrary, use or possession of medical marijuana as set

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 approved by the board:

(i) Cannabis-infused nonedible products.

(ii) Cannabis-infused edible products.

(iii) F orms medically appropriate for administration

by vaporization or nebulization, including dry leaf and

plant material.

(3) (Reserved).

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

one time.

(5) Medical marijuana that has not been used by the

patient shall be kept in the original package in which it was

dispensed.

(6) A patient or caregiver shall possess an

identification card whenever the patient or caregiver is in

possession of medical marijuana.

(7) Products packaged by a grower/processor or sold by a

dispensary shall only be identified by the name of the

20240HB2210PN2891 - 135 -

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.

cannabis for personal use by a patient shall be subject to the

following limitations:

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

older who is a patient may cultivate cannabis plants, with a

limit of five plants that are more than five inches tall,

without an adult use cultivation center or micro cultivation

center license. The plant limitation specified under this

paragraph shall be cumulative for households in which more

than one 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 by a patient shall take place

in an enclosed, locked space.

(3) A patient 21 years of age or older shall purchase

cannabis seeds from a dispensary for the purpose of home

cultivation. Seeds may not be given or resold to any other

individual regardless of age.

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

location where they are subject to ordinary public view. A

patient who cultivates cannabis shall take reasonable

precautions to ensure that the plants are secure from

unauthorized access, including unauthorized access by an

individual who is under 21 years of age.

(5) Cannabis cultivation for personal use by a patient

may occur only on residential property lawfully in possession

20240HB2210PN2891 - 136 -

of the patient cultivating cannabis for personal use 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 a patient who

resides at the residence or an individual authorized by a

patient attending to the residence for brief periods.

(7) A patient who cultivates more than the allowable

number of cannabis plants, or who sells or gives away

cannabis plants, cannabis or cannabis-infused edible or

nonedible products, shall be liable for penalties as

provided

by State law in addition to loss of home cultivation

privileges as established by regulation by the board.

(8) Cannabis cultivated by a patient and cannabis

produced by cannabis plants grown, if the amount of cannabis

produced is in excess of 30 grams of raw cannabis, shall

remain secured within the residence or residential property

in which the cannabis is grown.

§ 9314. (Reserved).

SUBCHAPTER C

PRACTITIONERS

Sec.

9321 . Practitioner registration.

9322 . Practitioner restrictions.

9323 . Issuance of certification.

9324 . Certification form.

9325 . Duration.

§ 9321. Practitioner registration.

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

authorized to issue certifications to patients to use medical

20240HB2210PN2891 - 137 -

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 9311(a)(6) (relating to program

established).

(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

20240HB2210PN2891 - 138 -

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.

(3) The patient has died.

§ 9322. 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

20240HB2210PN2891 - 139 -

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 9323(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

Medicine, as appropriate.

§ 9323. 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:

20240HB2210PN2891 - 140 -

(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

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

20240HB2210PN2891 - 141 -

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.

(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.

§ 9324. 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).

§ 9325 . 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.

20240HB2210PN2891 - 142 -

SUBCHAPTER D

PATIENTS

Sec.

9331 . Identification cards.

9332 . Caregivers.

9333 . Notice.

9334 . Verification.

9335 . Special conditions.

9336 . (Reserved).

9337 . Minors.

9338 . Caregiver authorization and limitations.

9339 . Contents of identification card.

9339.1 . Suspension.

9339.2 . Prohibitions.

§ 9331. 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

20240HB2210PN2891 - 143 -

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 9323(a) (relating to issuance

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.

20240HB2210PN2891 - 144 -

(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

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.

§ 9332. Caregivers.

(a) Requirements.--

(1) If the patient designates a caregiver, the

application shall include the name, address and date of birth

of the caregiver, 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

20240HB2210PN2891 - 145 -

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

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

20240HB2210PN2891 - 146 -

history of drug abuse or of diverting controlled substances or

illegal drugs.

§ 9333. 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).

§ 9334. Verification.

The department shall verify the information in a patient or

caregiver's application and on any renewal form.

§ 9335. Special conditions.

The following apply:

(1) If the practitioner states in the certification

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

would benefit from medical marijuana 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.

§ 9336. (Reserved).

§ 9337. 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.

20240HB2210PN2891 - 147 -

(iii) An appropriate individual approved by the

department upon a sufficient showing that no parent or

legal guardian is appropriate or available.

§ 9338. 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

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.

§ 9339. 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

20240HB2210PN2891 - 148 -

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.

§ 9339.1. Suspension.

If a patient or caregiver intentionally, knowingly or

recklessly violates any provision of this chapter as determined

by the department, the identification card of the patient or

caregiver may be suspended or revoked. The suspension or

revocation shall be in addition to any criminal or other penalty

that may apply.

§ 9339.2. 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.

20240HB2210PN2891 - 149 -

(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

for the patient.

SUBCHAPTER E

MEDICAL MARIJUANA ORGANIZATIONS

Sec.

9341 . Medical marijuana organizations.

9342 . Permits.

9343 . Granting of permit.

9344 . Notice.

9345 . (Reserved).

9346. Application and issuance.

9347 . Fees and other requirements.

9348 . Issuance.

9349 . Relocation.

9349.1 . Terms of permit.

9349.2 . (Reserved).

9349.3 . Permit renewals.

9349.4 . Suspension or revocation.

9349.5 . Convictions prohibited.

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9349.6 . Diversity goals.

9349.7 . Limitations on permits.

§ 9341. 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.

§ 9342. 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:

(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

20240HB2210PN2891 - 151 -

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

employee's affiliation with the medical marijuana

organization. Any employee who the department determines to

be unable to meet the affiliation requirements under section

9349.5 (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.

20240HB2210PN2891 - 152 -

(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

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

20240HB2210PN2891 - 153 -

false statement made in the application is punishable under the

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

falsification and intimidation).

§ 9343. 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

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.

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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

medical conditions.

(3) The types of serious medical conditions.

(4) Access to public transportation.

(5) Any other factor the department deems relevant.

§ 9344. Notice.

When the boundaries under section 9343(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 next available issue of

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 next

available issue of the Pennsylvania Bulletin.

§ 9345. (Reserved).

§ 9346. Application and issuance.

(a) Duty to report.--An applicant to be a grower/processor

20240HB2210PN2891 - 155 -

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

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.

§ 9347. 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

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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.

(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

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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.

§ 9348. 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.

(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.

§ 9349. 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

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subsection may not be subject to approval by the department.

§ 9349.1. Terms of permit.

A permit issued by the department shall be valid for one year

from the date of issuance.

§ 9349.2. (Reserved).

§ 9349.3. 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:

(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.

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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.

§ 9349.4. 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

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.

§ 9349.5 . 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:

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(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.

§ 9349.6. Diversity goals.

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

Assembly that the department promote diversity and the

participation by diverse groups in the activities authorized

under this 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.

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(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

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

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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).

§ 9349.7. 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

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 9392 (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.

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(7) A grower/processor may only provide medical

marijuana to a dispensary holding a valid permit under this

chapter.

SUBCHAPTER F

MEDICAL MARIJUANA CONTROLS

Sec.

9351 . Electronic tracking.

9352 . Grower/processors.

9353 . Storage and transportation.

9354 . Laboratory.

9355 . Prices.

§ 9351. 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

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.

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(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.

(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

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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.

(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.

§ 9352. 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

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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

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 9354 (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 9399.26

(relating to research initiative).

(5) Obtain harvested hemp from a person holding a permit

issued by the Department of Agriculture to grow or cultivate

20240HB2210PN2891 - 167 -

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

9354.

(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

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.

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(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 next available issue of 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 Bureau for publication in the next

available issue of the Pennsylvania Bulletin.

§ 9353. 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

20240HB2210PN2891 - 169 -

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.

(9) T ransporting medical marijuana to a

grower/processor, approved laboratory or dispensary.

§ 9354. 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

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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.

§ 9355. 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

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

Sec.

9361 . Dispensing to patients and caregivers.

9362 . Facility requirements.

9363 . Posting.

§ 9361. Dispensing to patients and caregivers.

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(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

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 9311(a)(6) (relating to program

established). A physician may not issue a certification to

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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

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 9325 (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 9311(a)(4)(v) and

the dispensary tracking system under section 9351(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

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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

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

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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.

§ 9362. Facility requirements.

(a) General rule.--

(1) A dispensary may dispense medical marijuana in an

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.

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(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.

§ 9363 . 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

TAX ON MEDICAL MARIJUANA

Sec.

9371 . Tax on medical marijuana.

9372 . Medical Marijuana Program Fund.

§ 9371. 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.

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(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.

(f) Information.--A grower/processor that sells medical

marijuana shall provide to the Department of Revenue information

required by the department.

§ 9372. 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

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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

with the cost associated with the waiver or reduction of

fees for identification cards under sections 9331(c)(5)

(relating to identification cards) and 9332 (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

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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

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

Sec.

9381 . Governing practice and procedure.

9382 . Reports by medical marijuana organizations.

9383 . Law enforcement notification.

9384 . Evaluation.

9385 . Report.

9386 . (Reserved).

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9387 . Temporary regulations.

§ 9381. 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).

§ 9382. 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.

§ 9383. 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

name of the patient.

§ 9384. 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.

§ 9385. Report.

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

report under subsection (b) every two years beginning April 17,

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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:

(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.

§ 9386. (Reserved).

§ 9387. Temporary regulations.

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

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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 next available issue of the Pennsylvania

Bulletin no later than October 17, 2016.

SUBCHAPTER J

MEDICAL MARIJUANA ADVISORY BOARD

Sec.

9391 . Advisory board.

9392 . Effectuating recommendations of advisory board.

§ 9391. 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.

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(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.

(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

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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.

(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,

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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.

(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.

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(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.

§ 9392. Effectuating recommendations of advisory board.

After receiving a report of the advisory board under section

9391(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 next

available issue of the Pennsylvania Bulletin. The secretary

shall transmit notice to the Legislative Reference Bureau for

publication in the next available issue of the Pennsylvania

Bulletin 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

Sec.

9393.1 . Criminal diversion of medical marijuana by

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practitioners.

9393.2 . Criminal diversion of medical marijuana.

9393.3 . Criminal retention of medical marijuana.

9393.4 . Criminal diversion of medical marijuana by patient or

caregiver.

9393.5 . Falsification of identification cards.

9393.6 . Adulteration of medical marijuana.

9393.7 . Disclosure of information prohibited.

9393.8 . Additional penalties.

9393.9 . Other restrictions.

§ 9393.1 . 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.

§ 9393.2 . 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,

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).

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(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 9354 (relating to laboratory).

§ 9393.3. 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.

§ 9393.4 . 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.

§ 9393.5 . Falsification of identification cards.

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

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

not privileged to hold an identification card, the person:

(1) possesses an identification card and either attempts

to use the card to obtain medical marijuana or obtains

medical marijuana;

(2) possesses an identification card which falsely

identifies the person as being lawfully entitled to receive

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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.

§ 9393.6. 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.

§ 9393.7. Disclosure of information prohibited.

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

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

principal of any of the following commits a misdemeanor of the

third degree if the person discloses, except to authorized

persons for official governmental or health care purposes, any

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

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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.

§ 9393.8. 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),

who violates any of the provisions of this chapter, other than

those specified in section 9393.1 (relating to criminal

diversion of medical marijuana by practitioners), 9393.2

(relating to criminal diversion of medical marijuana), 9393.3

(relating to criminal retention of medical marijuana), 9393.4

(relating to criminal diversion of medical marijuana by patient

or caregiver), 9393.5 (relating to falsification of

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identification cards), 9393.6 (relating to adulteration of

medical marijuana) or 9393.7 (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:

(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.

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(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

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

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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.

§ 9393.9. Other restrictions.

Nothing in this chapter may be construed to permit any person

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

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county correctional facility, including a facility owned or

operated or under contract with the Department of Corrections

or the county which houses inmates serving a portion of their

sentences on parole or other community correction program.

Nothing in this paragraph shall be construed to apply to

employees of the facilities set forth in this paragraph. The

Department of Corrections shall adopt a written policy no

later than 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.

SUBCHAPTER L

RESEARCH PROGRAM

Sec.

9399.11 . Definitions.

9399.12 . Establishment of medical marijuana research program.

9399.13 . Medical marijuana research program administration.

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9399.14 . Approval.

9399.15 . Requirements.

9399.16 . Restrictions.

9399.17 . Regulations.

9399.18 . Nonentitlement.

§ 9399.11. 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.

§ 9399.12 . 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

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

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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 the 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

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

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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 the 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.

§ 9399.13. Medical marijuana research program administration.

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

study for each serious medical condition. The department shall

engage universities within this Commonwealth to participate in

the collection, collation, analysis and conclusive findings of

the research studies. The department shall, by regulation,

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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

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

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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.

§ 9399.14. 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 9399.13 (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

9343(e) (relating to granting of permit) to medical marijuana

for all patients included in an approved research study.

§ 9399.15. 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.

(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.

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(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.

§ 9399.16. Restrictions.

A health care medical marijuana organization may not

participate in a research study of any kind, including the

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.

§ 9399.17. Regulations.

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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.

§ 9399.18. 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.

SUBCHAPTER M

ACADEMIC CLINICAL RESEARCH CENTERS

AND CLINICAL REGISTRANTS

Sec.

9399.21 . Legislative findings and declaration of policy.

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9399.22 . Definitions.

9399.23 . Academic clinical research centers.

9399.24 . Clinical registrants.

9399.25 . Research study.

9399.26 . Research initiative.

9399.27 . Temporary regulations.

§ 9399.21 . 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 this 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

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

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initially authorized under section 9349.7 (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.

§ 9399.22. 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

(3) is approved by the department to hold a permit as

both a grower/processor and a dispensary.

§ 9399.23 . Academic clinical research centers.

(a) General rule.--An academic clinical research center must

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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 next

available issue of the Pennsylvania Bulletin.

§ 9399.24. 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

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

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with section 9349.7(1) and (2) (relating to limitations on

permits). The limitations relating to number and location in

sections 9349.7(1) and (2) and 9343(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

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.

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(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

9349.7(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

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

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relationship.

(ii) (Reserved).

(5) Except as provided in section 9347(1)(vi) and (2)

(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

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

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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.

§ 9399.25. Research study.

(a) Applicability.--The provisions of this section shall

apply upon publication of the notice under section 9399.38

(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

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

20240HB2210PN2891 - 208 -

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.

§ 9399.26. Research initiative.

(a) Authority.--An academic clinical research center, in

coordination with its contracted clinical registrant, may

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

20240HB2210PN2891 - 209 -

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 9391 (relating to advisory

board) and 9392 (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 9392.

(4) Prior to implementing a recommendation of the board

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

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equipment. Upon approval, the department shall issue a notice

of final approval to implement the process.

§ 9399.27 . 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 next available issue of the Pennsylvania

Bulletin no later than July 16, 2016.

SUBCHAPTER N

MISCELLANEOUS PROVISIONS

Sec.

9399.31 . Conflict.

9399.32 . Financial and employment interests.

9399.33 . Insurers.

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9399.34 . Protections for patients and caregivers.

9399.35 . Schools.

9399.36 . Day-care centers.

9399.37 . Zoning.

9399.38 . Notice.

9399.39 . Applicability.

9399.40 . Enforcement and civil actions.

§ 9399.31. 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.

§ 9399.32. 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

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

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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

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

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Commission to the Legislative Reference Bureau for

publication in the next available issue of 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

a county or municipality that directly receives a

distribution of revenue from the fund.

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

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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.

§ 9399.33. 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.

§ 9399.34. Protections for patients and caregivers.

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

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

right or privilege, including civil penalty or disciplinary

action by a Commonwealth licensing board or commission, solely

for lawful use of medical marijuana or manufacture or sale or

dispensing of medical marijuana, or for any other action taken

20240HB2210PN2891 - 215 -

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 9361(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

marijuana.

(2) Nothing in this chapter shall require an employer to

make any accommodation of the use of medical marijuana on the

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property or premises of any place of employment. If an

employer makes an adverse employment decision against an

employee or job applicant under this chapter, 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

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

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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 chapter, 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

lawful workplace policy or refusal to submit to a drug test

under this section shall constitute conclusive evidence of

willful misconduct.

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(13) Nothing in this chapter 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.

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

20240HB2210PN2891 - 219 -

with respect to custody, the provisions of 23 Pa.C.S. Ch. 53

(relating to child custody) shall apply.

§ 9399.35. 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.

§ 9399.36. 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

delinquent children, as set forth in section 9393.9(3)

(relating to other restrictions).

§ 9399.37. Zoning.

The following apply:

(1) A grower/processor shall meet the same municipal

zoning and land use requirements as other manufacturing,

20240HB2210PN2891 - 220 -

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.

§ 9399.38. 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 next available issue of

the Pennsylvania Bulletin.

§ 9399.39. 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 next available issue of the Pennsylvania Bulletin that

adequate temporary or permanent regulations have been adopted to

initiate the program under this chapter.

§ 9399.40 . Enforcement and civil actions.

(a) Regulations.--The Secretary of Labor and Industry shall

promulgate regulations to enforce section 9399.34(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

section is amended by adding a subsection to read:

§ 3802. Driving under influence of alcohol or controlled

20240HB2210PN2891 - 221 -

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. § 9102 (relating to

definitions).

"Cannabis concentrate." As defined in 35 Pa.C.S. § 9102.

"Cannabis-infused product." As defined in 35 Pa.C.S. § 9102.

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

or has been legally entitled to use alcohol [or], controlled

substances or marijuana under 35 Pa.C.S. Ch. 93 (relating to

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medical marijuana) 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. 93.

(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. 93.

(4) The act of April 17, 2016 (P.L.84, No.16), known as

the Medical Marijuana Act, is repealed.

(5) All other acts and parts of acts are repealed

insofar as they are inconsistent with the addition of 35

Pa.C.S. Chs. 91 and 93.

Section 5. The addition of 35 Pa.C.S. Ch. 93 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. 93,

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. 93. 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. 93.

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. 93 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 "board,"

"cannabis-infused edible product," "cannabis-infused

nonedible product," "chief medical officer," "executive

director," "serious medical condition," "safety-sensitive

position" and "under the influence" in 35 Pa.C.S. § 9303.

(ii) The addition of 35 Pa.C.S. § 9304.

(iii) The addition of 35 Pa.C.S. § 9313(b)(2) and

(c).

(iv) The addition of 35 Pa.C.S. § 9314.

(v) The addition of 35 Pa.C.S. § 9399.33.

(vi) The addition of 35 Pa.C.S. § 9399.34(b)(2),

(4), (5), (6), (7), (8), (9), (10), (11), (12) and (13).

Section 6. This act shall take effect immediately.

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