S0773B1105A02792 NES:AAS 10/30/23 #90 A02792
AMENDMENTS TO SENATE BILL NO. 773
Sponsor: REPRESENTATIVE FRANKEL
Printer's No. 1105
Amend Bill, page 1, line 14, by inserting after "for"
application and issuance, for
Amend Bill, page 1, line 16, by inserting after "dispensary"
and grower/processor
Amend Bill, page 1, line 17, by striking out "dispensary"
Amend Bill, page 2, by inserting between lines 16 and 17
"Diverse group." The term shall mean the same as under
section 615(d).
* * *
"Independent dispensary." A dispensary issued a permit to
operate in this Commonwealth and that meets all of the
following:
(1) Has not had the dispensary's permit revoked.
(2) Has not entered into a change of control transaction
with any other person.
(3) Is not materially the same as a medical marijuana
organization in this Commonwealth through a parent company,
subsidiary or shared affiliation with another entity that
holds a permit from the department under this act or through
the sharing of principals, officers or directors, employees,
facilities, equipment, finances or capital.
Amend Bill, page 2, lines 21 through 24, by striking out
"merger, acquisition or other" in line 21 and all of lines 22
through 24 and inserting
change of control transaction with any other person.
Amend Bill, page 2, lines 25 and 26, by striking out
"otherwise associated with or materially the same as another "
and inserting
materially the same as a
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Amend Bill, page 2, line 29, by inserting after "of"
principals,
Amend Bill, page 3, lines 7 and 8, by striking out "5% or
greater, including" in line 7 and all of line 8 and inserting
more than 5%, including subsidiaries.
(4) Common ownership of 5% or less if the persons with
voting rights to elect or appoint one or more members of the
board of directors or other governing board.
(5) Common management, policies, principals, officers,
directors, employees, equipment, finances or capital.
Amend Bill, page 3, line 18, by striking out all of said line
and inserting
Section 2. Sections 606(a)(1) and 616(5) of the act are
amended to read:
Section 606. Application and issuance.
(a) Duty to report.--An applicant to be a grower/processor
or to operate a dispensary is under a continuing duty to:
(1) Report to the department any change in facts or
circumstances reflected in the application or any newly
discovered or occurring fact or circumstance which is
required to be included in the application, including a
change in control or change of control transaction of the
medical marijuana organization.
* * *
Amend Bill, page 3, line 25, by inserting a bracket before
"If"
Amend Bill, page 3, line 28, by inserting a bracket after
"dispensaries."
Amend Bill, page 4, lines 1 through 4, by striking out all of
said lines and inserting
Section 617. Additional dispensary and grower/processor permits
authorized.
(a) Authorization.--
(1) An independent grower/processor that applies and
meets the requirements under section 618 shall be issued one
dispensary permit.
(2) An independent dispensary that applies and meets the
requirements under section 618 shall be issued one
grower/processor permit.
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Amend Bill, page 4, line 5, by striking out "dispensary"
Amend Bill, page 4, line 9, by striking out "DISPENSARY"
Amend Bill, page 4, lines 11 through 13, by striking out all
of said lines
Amend Bill, page 4, line 14, by striking out "(D)" and
inserting
(c)
Amend Bill, page 4, line 15, by striking out ", revoke or
withdraw a permit or fail to renew" and inserting
or revoke
Amend Bill, page 4, line 16, by striking out "dispensary"
Amend Bill, page 4, lines 17 and 18, by striking out "ceasing
to qualify as an independent grower/processor " and inserting
entering into a change of control transaction with any
person at least two years
Amend Bill, page 4, lines 22 through 30; pages 5 and 6, lines
1 through 30; page 7, lines 1 through 21; by striking out all of
said lines on said pages and inserting
(d) Permit for clinical registrant.--Notwithstanding
subsection (c) or section 619, an independent grower/processor
or independent dispensary that applies for a permit to convert
to a clinical registrant under section 2002 shall surrender a
grower/processor permit or dispensary permit, or both,
previously issued to the independent grower/processor or
independent dispensary.
Section 618. Application and issuance of additional permits.
(a) Applications.--
(1) The department shall develop a standard application
form and open applications for permits authorized under
section 617 within 30 days of the effective date of this
paragraph.
(2) Applicants under this section shall, within 60 days
after applications are posted, submit applications for
permits authorized under section 617.
(3) The department shall review applications for permits
authorized under section 617 within 45 days of receipt of an
application under paragraph (1) from an eligible independent
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grower/processor or independent dispensary.
(4) An application for a permit authorized under section
617 shall require:
(i) Supporting documentation and certification to
the department that the applicant qualifies as an
independent grower/processor or independent dispensary.
(ii) Certification to the department that the
applicant will not enter into a change of control
transaction with any other person for a duration of two
years from the date the first dispensary location or
grower/processor location is deemed operational by the
department, unless the change of control transaction
occurs at least one year after the holder of the permit
becomes operational and is between the applicant and a
diverse group.
(iii) Any information required under section 602
that has significantly changed since the applicant
received an initial permit.
(b) Issuance.--
(1) Except as provided under paragraph (3), the
department shall issue permits under section 617 within 60
days of the application submission deadline under subsection
(a)(2) to all applicants that meet the minimum requirements
for permitting under this chapter. The department shall
notify an applicant for permits authorized under section 617
of the approval of an application by certified mail or email.
(2) If an application under this section is incomplete,
the following apply:
(i) The department shall, within 15 days of
reviewing the application, notify the applicant by
certified mail or email of the missing application
materials.
(ii) An applicant shall have 15 days from when the
notice is received under this paragraph to provide
missing materials to the department.
(iii) An applicant's failure to complete the
application by the deadline under subparagraph (ii) shall
be grounds for denial of a permit.
(3) If an application under this section is complete but
does not meet the minimum criteria for a permit, the
department shall notify the applicant by certified mail or
email of the deficiencies in the application and the
following apply:
(i) An applicant shall have 30 days from the date
the notice is received under this paragraph to provide
supplemental application materials to the department.
(ii) An applicant's failure to provide the
supplemental application materials to the department by
the deadline will be grounds for denial of the issuance
of a permit.
(iii) An applicant's failure to meet the minimum
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criteria for a permit after providing supplemental
application materials to the department shall be grounds
for denial of the issuance of a permit.
(iv) The department may use up to 30 additional days
to issue dispensary permits to applicants that meet the
minimum criteria for a permit after providing
supplemental application materials to the department.
(4) If the department denies an application for a
dispensary permit authorized under section 617, the
department shall notify the applicant of the denial by
certified mail or email. The notice shall include each
deficiency in the application that does not meet the minimum
criteria to be issued a dispensary permit.
(5) In the event an independent grower/processor or
independent dispensary has not applied for a permit
authorized under section 617 or has received a denial for a
permit authorized under section 617, the department shall
accept new applications during an application process
scheduled annually by the department. The annual application
process shall follow the time lines established under this
act.
(6) Appeals to the issuance or denials of dispensary
permits under this section must be responded to by the
department within 45 days of submittal.
(7) An independent grower/processor or independent
dispensary issued a permit under section 617 shall notify the
department when the independent grower/processor or
independent dispensary location is operational.
(8) Upon notification under paragraph (7), the
department shall schedule an inspection to determine if the
medical marijuana organization facility is operational to the
satisfaction of the department. Nothing in this section shall
prohibit the department from determining that the inspected
location fails to be operational.
Amend Bill, page 7, line 23, by inserting after "FOR"
a dispensary permit shall pay
Amend Bill, page 7, line 26, by inserting after "EACH"
dispensary
Amend Bill, page 8, by inserting between lines 10 and 11
(2) An independent dispensary applying for a
grower/processor permit shall pay:
(i) An initial application fee in the amount of
$10,000. The fee is nonrefundable.
(ii) A permit fee of $200,000. 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.
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(iii) A renewal fee for the permit as a
grower/processor in the amount of $10,000. The fee shall
cover the renewal for all locations. The renewal fee
shall be returned if the renewal is not granted. An
application to review a permit must be filed with the
department not more than six months nor less than four
months prior to expiration.
(iv) A fee of $250 when amending the application to
indicate relocation within this Commonwealth or the
addition or deletion of approved activities by the
medical marijuana organization.
Amend Bill, page 8, line 11, by striking out "(2)" and
inserting
(3)
Amend Bill, page 8, line 11, by striking out "PARAGRAPH (1)"
and inserting
this subsection
Amend Bill, page 8, line 13, by striking out "(3)" and
inserting
(4)
Amend Bill, page 8, line 13, by striking out "PARAGRAPH (1)"
and inserting
this subsection
Amend Bill, page 8, lines 15 through 30; page 9, lines 1
through 9; by striking out all of said lines on said pages and
inserting
(d) Regions.--An independent grower/processor may apply for
a dispensary permit under this section in any region established
under section 603(d).
Amend Bill, page 9, line 11, by striking out "ENTERS INTO A
MERGER, ACQUISITION OR OTHER" and inserting
or independent dispensary enters into a
Amend Bill, page 9, line 13, by striking out "SUBSECTION (A)
(4)" and inserting
this act
Amend Bill, page 9, lines 14 and 15, by striking out "MERGER,
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ACQUISITION OR OTHER CHANGE OF" in line 14 and all of line 15
and inserting
change of control transaction shall be void, unless the
change of control transaction occurs at least one year after the
permittee becomes operational and the merger is between a permit
holder and a diverse group.
Amend Bill, page 9, line 20, by inserting after
"grower/processor"
or independent dispensary
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