See other bills
under the
same topic
PRINTER'S NO. 366
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
50
Session of
2019
INTRODUCED BY WHEATLEY, HILL-EVANS, A. DAVIS, ISAACSON,
YOUNGBLOOD, SOLOMON, BOYLE, GAINEY, McNEILL, MADDEN, BULLOCK,
DALEY, SIMS, BURGOS, KINSEY, KENYATTA, McCLINTON, RABB,
HARRIS, KIRKLAND, BIZZARRO, WILLIAMS, ROZZI, FRANKEL, CIRESI,
LEE AND BRIGGS, FEBRUARY 6, 2019
REFERRED TO COMMITTEE ON HEALTH, FEBRUARY 6, 2019
AN ACT
Amending the act of April 17, 2016 (P.L.84, No.16), entitled "An
act establishing a medical marijuana program; providing for
patient and caregiver certification and for medical marijuana
organization registration; imposing duties on the Department
of Health; providing for a tax on medical marijuana
organization gross receipts; establishing the Medical
Marijuana Program Fund; establishing the Medical Marijuana
Advisory Board; establishing a medical marijuana research
program; imposing duties on the Department of Corrections,
the Department of Education and the Department of Human
Services; and providing for academic clinical research
centers and for penalties and enforcement," further providing
for title of act; providing for general provisions for act;
in preliminary provisions, further providing for short title,
for declaration of policy and for definitions; in program,
further providing for program established, for
confidentiality and public disclosure, for lawful use of
medical marijuana and for unlawful use of medical marijuana;
in practitioners, further providing for practitioner
registration, for practitioner restrictions, for issuance of
certification and for duration; in patients, further
providing for identification cards, for caregivers, for
special conditions, for contents of identification card, for
suspension and for prohibitions; in medical marijuana
organizations, further providing for medical marijuana
organizations, for permits, for granting of permit, for
application and issuance, for fees and other requirements,
for issuance, for relocation, for terms of permit, for permit
renewals, for suspension or revocation, for convictions
prohibited, for diversity goals and for limitations on
permits; in medical marijuana controls, further providing for
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electronic tracking, for grower/processors, for storage and
transportation, for laboratory and for prices; in
dispensaries, further providing for dispensing to patients
and caregivers and for facility requirements; in tax on
medical marijuana, further providing for tax on medical
marijuana and for Medical Marijuana Program Fund; in
administration, further providing for governing practice and
procedure, for reports by medical marijuana organizations,
for law enforcement notification, for evaluation, for report
and for temporary regulations; in Medical Marijuana Advisory
Board, further providing for advisory board; in offenses
related to medical marijuana, further providing for criminal
diversion of medical marijuana by practitioners, for criminal
diversion of medical marijuana, for criminal retention of
medical marijuana, for criminal diversion of medical
marijuana by patient or caregiver, for falsification of
identification cards, for adulteration of medical marijuana,
for disclosure of information prohibited, for additional
penalties and for other restrictions; in research program,
further providing for definitions, for establishment of
medical marijuana research program, for medical marijuana
research program administration, for approval, for
requirements, for restrictions, for regulations and for
nonentitlement; in academic clinical research centers and
clinical registrants, further providing for legislative
findings and declaration of policy, for clinical registrants
and for research study; in miscellaneous provisions, further
providing for conflict, for financial and employment
interests, for insurers, for protections for patients and
caregivers, for schools, for day-care centers, for notice and
for applicability; providing for adult-use cannabis;
establishing the Commonwealth Reinvestment Fund, the Student
Loan Reimbursement Program, the Mixed Income Housing Program
and the After-school Program; imposing duties on the
Department of Education, the Pennsylvania Housing Finance
Agency and the Bureau of Liquor Control Enforcement; imposing
penalties; making appropriations; making repeals; and making
editorial changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The title of the act of April 17, 2016 (P.L.84,
No.16), known as the Medical Marijuana Act, is amended to read:
AN ACT
Establishing a [medical marijuana] cannabis program; providing
for patient and caregiver certification and for [medical
marijuana] cannabis organization registration; imposing
duties on the Department of Health; providing for a tax on
[medical marijuana] cannabis organization gross receipts;
establishing the Medical [Marijuana] C annabis Program Fund;
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establishing the Medical [Marijuana] C annabis Advisory Board;
establishing a medical [marijuana] cannabis research program;
establishing the Commonwealth Reinvestment Fund; imposing
duties on the Department of Corrections, the Department of
Education [and], the Department of Human Services, the
Pennsylvania Housing Finance Agency and the Bureau of Liquor
Control Enforcement; and providing for academic clinical
research centers and for penalties and enforcement.
Section 2. The act is amended by adding a part and a part
heading immediately before section 101 of the act to read:
PART I
GENERAL PROVISIONS
CHAPTER 1
PRELIMINARY PROVISIONS
Section 101. Short title.
This act shall be known and may be cited as the Cannabis Act.
Section 102. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Adult-use cannabis." Cannabis ingested for a reason other
than medical purposes.
"Adult-use cannabis organization." A cannabis organization
for the dispensing, growing or processing of adult-use cannabis
or cannabis products and not of medical cannabis.
"Cannabis." With respect to the plant of the genus cannabis,
as follows:
(1) Any of the following:
(i) The parts of the plant, whether growing or not.
(ii) The seeds of the plant.
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(iii) The resin extracted from part of the plant.
(iv) Every compound, manufacture, salt, derivative,
mixture or preparation of the plant, its seeds or resin,
including cannabis concentrate.
(2) The term does not include industrial hemp or fiber
produced from the stalks, oil or cake made from the seeds of
the plant, sterilized seed of the plant that is incapable of
germination or the weight of another ingredient combined with
cannabis to prepare topical or oral administrations, food,
drink or other product.
"Cannabis organization." As follows:
(1) A dispensary or grower/processor.
(2) The term includes a medical cannabis organization or
an adult-use cannabis organization.
(3) The term does not include:
(i) A health care medical cannabis organization.
(ii) An academic clinical research center or
clinical registrant under Chapter 20 as it may pertain to
adult-use cannabis or cannabis products.
"Cannabis product." A product that is comprised of cannabis
and other ingredients and is intended for use or consumption,
including as an edible product, ointment or tincture.
"Department." The Department of Health of the Commonwealth.
"Dispensary." As follows:
(1) A person, including an individual, corporation,
partnership, association, trust or other entity, or any
combination of these persons, which holds a permit issued by
the department to dispense medical cannabis, adult-use
cannabis or cannabis products.
(2) The term does not include:
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(i) A health care medical cannabis organization.
(ii) An academic clinical research center or
clinical registrant under Chapter 20 as it may pertain to
adult-use cannabis or cannabis products.
"Grower/processor." As follows:
(1) A person, including an individual, corporation,
partnership, association, trust or other entity, or any
combination of these persons, which holds a permit from the
department under this act to grow and process medical
cannabis, adult-use cannabis or cannabis products.
(2) The term does not include:
(i) A health care medical cannabis organization.
(ii) An academic clinical research center or
clinical registrant under Chapter 20 as it may pertain to
adult-use cannabis or cannabis products.
"Health care medical cannabis organization." A vertically
integrated health system approved by the department to dispense
medical cannabis or grow and process medical cannabis, or both,
in accordance with a research study under Chapter 19.
"Medical cannabis." Cannabis for certified medical use as
specified under Part II.
"Medical cannabis organization." A cannabis organization for
the dispensing, growing or processing of medical cannabis only
and not of adult-use cannabis or cannabis products.
"Pennsylvania farm." An agricultural business incorporated
as a sole proprietorship, partnership, limited liability company
or Pennsylvania S corporation that operates an area of land and
building used for growing crops and rearing animals.
"Permit." An authorization issued by the department to a
cannabis organization to conduct activities under this act.
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"Secretary." The Secretary of Health of the Commonwealth.
"Vertically integrated health system." A health care
facility licensed under the act of July 19, 1979 (P.L.130,
No.48), known as the Health Care Facilities Act, in which the
complete spectrum of care, including primary and specialty care,
hospitalization and pharmaceutical care, is provided within a
single organization.
CHAPTER 1-A
COMBINATION PERMITS
Section 101-A. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Combination permit." An authorization issued by the
department to a cannabis organization to conduct activities
under Parts II and III.
Section 102-A. Procedures incorporated by reference.
Except as otherwise provided in this chapter, Parts II and
III shall apply to combination permits and cannabis
organizations which seek or have obtained a combination permit.
Section 103-A. Authorization.
The department may grant or deny a combination permit to a
cannabis organization which seeks a permit under Chapters 6 and
32.
Section 104-A. Application.
An application for a combination permit shall be in a form
and manner prescribed by the department. The following apply:
(1) Subject to paragraph (2), the application shall
include the information specified under sections 602(a) and
3202(a).
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(2) The department shall make all reasonable efforts to
eliminate the production of duplicative information as a
result of providing information specified under sections
602(a) and 3202(a).
Section 105-A. Fees and other requirements.
The following apply for a combination permit:
(1) For a cannabis grower/processor:
(i) An initial application fee in the amount of
$15,000 shall be paid. The fee is nonrefundable.
(ii) A fee for a permit as a grower/processor in the
amount of $300,000 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 $15,000 shall be paid
and shall cover renewal for all locations. The renewal
fee shall be returned if the renewal is not granted.
(iv) An application to renew a permit must be filed
with the department not more than six months nor less
than four months prior to expiration.
(v) All fees shall be paid by certified check or
money order.
(vi) Before issuing an initial permit under this
paragraph, the department shall verify that the applicant
has at least $2,000,000 in capital, $500,000 of which
must be on deposit with a financial institution.
(2) For a cannabis dispensary:
(i) An initial application fee in the amount of
$7,500 shall be paid. The fee is nonrefundable.
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(ii) A permit fee for a dispensary shall be $45,000
for each location. The permit shall be valid for one
year. An applicant shall submit the permit fee at the
time of submission of the application. The fee shall be
returned if the application is not granted.
(iii) A renewal fee for the permit as a dispensary
in the amount of $7,500 shall be paid. The fee shall be
returned if the renewal is not granted and shall cover
renewal for all locations.
(iv) An application to renew a permit must be filed
with the department not more than six months nor less
than four months prior to expiration.
(v) All fees shall be paid by certified check or
money order.
(vi) Before issuing an initial permit under this
paragraph, the department shall verify that the applicant
has at least $150,000 in capital, which must be on
deposit with a financial institution.
(3) A fee of $250 shall be required when amending the
application to indicate relocation within this Commonwealth
or the addition or deletion of approved activities by the
cannabis organization.
(4) Fees payable under this section shall be deposited
into the following in equal amounts:
(i) The Medical Cannabis Program Fund under Part II.
(ii) The Commonwealth Reinvestment Fund under Part
III.
Section 106-A. Term of permit.
A combination permit shall be valid for one year from the
date of issuance.
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Section 107-A. Existing permit.
(a) Authorization.--A medical cannabis organization which
holds a permit, as a medical cannabis grower/processor or a
medical cannabis dispensary, granted under Part II and valid on
the effective date of this subsection may apply for a
combination permit to conduct business as:
(1) a medical cannabis grower/processor and adult-use
cannabis grower/processor; or
(2) a medical cannabis dispensary and adult-use cannabis
dispensary.
(b) Requirements incorporated by reference.--Except as
otherwise provided in this section, the requirements under this
act regarding permits shall apply to a combination permit under
this section.
(c) Term.--A combination permit granted under this section
shall expire at the same time as the permit granted under Part
II.
(d) Fees.--A fee regarding a combination permit under this
section shall be charged on a pro rata basis as determined by
the department.
(e) Effect of existing permit.--A permit granted under Part
II and valid on the effective date of this subsection shall not
create a vested right in a combination permit for the medical
cannabis organization.
(f) Priority.--In applying for a combination permit to also
conduct business as an adult-use cannabis grower/processor or
adult-use cannabis dispensary, a medical cannabis organization
which holds a permit granted under Part II and valid on the
effective date of this subsection shall be granted priority over
another cannabis organization seeking a permit to conduct
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business as an adult-use cannabis grower/processor or adult-use
cannabis dispensary.
CHAPTER 1-B
ENFORCEMENT
Section 101-B. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Bureau." The Bureau of Liquor Control Enforcement.
Section 102-B. Authority of bureau.
The bureau shall be responsible for enforcing this act,
including the development of enforcement procedures consistent
with this act, and any regulations promulgated under this act.
Officers and investigators assigned to the bureau shall have the
power and their duty shall be:
(1) To investigate whenever there are reasonable grounds
to believe that medical cannabis, adult-use cannabis or
cannabis products are being grown, processed, dispensed, sold
or used in violation of this act. If the investigation
produces evidence of the unlawful conduct under this act, the
officer involved in the investigation shall institute
criminal proceedings against a person believed to have been
criminally liable, as otherwise provided by law or rule of
court.
(2) To arrest on view, without warrant, except in
private homes, a person actually engaged in unlawful conduct
under this act.
(3) Upon reasonable and probable cause, to search for
and seize, without warrant or process, except in private
homes, medical cannabis, adult-use cannabis or cannabis
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products grown, processed, dispensed, sold or used in
violation of this act. The seized medical cannabis, adult-use
cannabis or cannabis products shall be disposed of as
provided in this chapter.
(4) To investigate and issue citations for a violation
of this act or another law of this Commonwealth relating to
medical cannabis, adult-use cannabis or cannabis products, or
a regulation adopted under this act or another law of this
Commonwealth or the Federal Government relating to medical
cannabis, adult-use cannabis or cannabis products by a
cannabis organization or other person covered by this act.
(5) To arrest a person who engages in any of the
following offenses when the offense is committed against the
officer or investigator or a person accompanying and
assisting the officer or investigator while the officer or
investigator is performing assigned duties under this act and
any regulation promulgated under this act:
(i) 18 Pa.C.S. § 2701 (relating to simple assault).
(ii) 18 Pa.C.S. § 2702 (relating to aggravated
assault).
(iii) 18 Pa.C.S. § 2705 (relating to recklessly
endangering another person).
(iv) 18 Pa.C.S. § 2706 (relating to terroristic
threats).
(v) 18 Pa.C.S. § 2709 (relating to harassment).
(vi) 18 Pa.C.S. § 5104 (relating to resisting arrest
or other law enforcement).
(vii) 18 Pa.C.S. § 5501 (relating to riot).
(6) To serve and execute warrants issued by the proper
authorities for offenses referred to in this subsection and
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to serve subpoenas.
Section 103-B. Confiscation.
Any equipment or appurtenance actually used in the commission
of the unlawful acts may be confiscated. The confiscation shall
not, in any manner, divest or impair the rights or interest of a
bona fide lienholder in the equipment or appurtenance.
Section 104-B. Prohibitions based on age.
A prohibition under this act involving an individual who is
under 21 years of age shall not apply if all of the following
apply:
(1) The individual is at least 18 years of age or older.
(2) T he individual is an officer, employee or intern of
the bureau.
(3) The individual has completed training specified by
the bureau.
(4) The individual is acting within the scope of
prescribed duties.
(5) The individual is acting under the direct control or
supervision of a bureau officer who is 21 years of age or
older.
PART II
MEDICAL CANNABIS
Section 3. Chapter 1 heading, sections 101, 102, 103, 301,
302, 303, 304, 401, 402, 403, 405, 501(a) and (i), 502(b), 504,
508, 509 and 510, Chapter 6 heading, sections 601, 602, 603,
606, 607, 608, 609, 610, 612, 613, 614, 615 and 616, Chapter 7
heading, sections 701, 702, 703, 704, 705, 801 and 802(a),
Chapter 9 heading, sections 901, 902, 1101, 1102, 1103, 1104,
1105 and 1107(a) and (c), Chapter 12 heading, section 1201(a)
and (j), Chapter 13 heading and sections 1301, 1302, 1303, 1304,
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1305, 1306, 1307, 1308, 1309, 1901, 1902, 1903, 1904, 1905,
1906, 1907 and 1908 of the act are amended to read:
CHAPTER [1] 2
PRELIMINARY PROVISIONS
Section [101. Short title.
This act shall be known and may be cited as the Medical
Marijuana Act.] 201. Scope of part.
This part relates to medical cannabis.
Section [102] 202. Declaration of policy.
The General Assembly finds and declares as follows:
(1) Scientific evidence suggests that medical
[marijuana] cannabis is one potential therapy that may
mitigate suffering in some patients and also enhance quality
of life.
(2) The Commonwealth is committed to patient safety.
Carefully regulating the program which allows access to
medical [marijuana] cannabis will enhance patient safety
while research into its effectiveness continues.
(3) It is the intent of the General Assembly to:
(i) Provide a program of access to medical
[marijuana] cannabis which balances the need of patients
to have access to the latest treatments with the need to
promote patient safety.
(ii) Provide a safe and effective method of delivery
of medical [marijuana] cannabis to patients.
(iii) Promote high quality research into the
effectiveness and utility of medical [marijuana]
cannabis.
(4) It is the further intention of the General Assembly
that any Commonwealth-based program to provide access to
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medical [marijuana] cannabis serve as a temporary measure,
pending Federal approval of and access to medical [marijuana]
cannabis through traditional medical and pharmaceutical
avenues.
Section [103] 203. Definitions.
The following words and phrases when used in this [act] part
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Advisory board." The advisory board established under
section 1201.
"Caregiver." The individual designated by a patient or, if
the patient is under 18 years of age, an individual under
section 506(2), to deliver medical [marijuana] cannabis.
"Certified medical use." The acquisition, possession, use or
transportation of medical [marijuana] cannabis by a patient, or
the acquisition, possession, delivery, transportation or
administration of medical [marijuana] cannabis by a caregiver,
for use as part of the treatment of the patient's serious
medical condition, as authorized in a certification under this
[act] part, including enabling the patient to tolerate treatment
for the serious medical condition.
"Certified registered nurse practitioner." As defined in
section 2 of the act of May 22, 1951 (P.L.317, No.69), known as
The Professional Nursing Law.
"Change in control." The acquisition by a person or group of
persons acting in concert of a controlling interest in an
applicant or permittee either all at one time or over the span
of a 12-consecutive-month period.
"Continuing care." Treating a patient, in the course of
which the practitioner has completed a full assessment of the
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patient's medical history and current medical condition,
including an in-person consultation with the patient.
"Controlling interest." As follows:
(1) For a publicly traded entity, voting rights that
entitle a person to elect or appoint one or more of the
members of the board of directors or other governing board or
the ownership or beneficial holding of 5% or more of the
securities of the publicly traded entity.
(2) For a privately held entity, the ownership of any
security in the entity.
["Department." The Department of Health of the Commonwealth.
"Dispensary." A person, including a natural person,
corporation, partnership, association, trust or other entity, or
any combination thereof, which holds a permit issued by the
department to dispense medical marijuana. The term does not
include a health care medical marijuana organization under
Chapter 19.]
"Family or household member." As defined in 23 Pa.C.S. §
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] cannabis." The characteristics
of the medical [marijuana] cannabis recommended or limited for a
particular patient, including the method of consumption and any
particular dosage, strain, variety and quantity or percentage of
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medical [marijuana] cannabis or particular active ingredient.
"Fund." The Medical [Marijuana] C annabis Program Fund
established in section 902.
["Grower/processor." A person, including a natural person,
corporation, partnership, association, trust or other entity, or
any combination thereof, which holds a permit from the
department under this act to grow and process medical marijuana.
The term does not include a health care medical marijuana
organization under Chapter 19.]
"Identification card." A document issued under section 501
that authorizes access to medical [marijuana] cannabis under
this [act] part.
"Individual dose." A single measure of medical [marijuana]
cannabis.
["Medical marijuana." Marijuana for certified medical use as
set forth in this act.
"Medical marijuana organization." A dispensary or a
grower/processor. The term does not include a health care
medical marijuana organization under Chapter 19.]
"Patient." An individual who:
(1) has a serious medical condition;
(2) has met the requirements for certification under
this [act] part; and
(3) is a resident of this Commonwealth.
["Permit." An authorization issued by the department to a
medical marijuana organization to conduct activities under this
act.]
"Physician assistant." As defined in section 2 of the act of
December 20, 1985 (P.L.457, No.112), known as the Medical
Practice Act of 1985, and section 2 of the act of October 5,
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1978 (P.L.1109, No.261), known as the Osteopathic Medical
Practice Act.
"Practitioner." A physician who is registered with the
department under section 401.
"Prescription drug monitoring program." The Achieving Better
Care by Monitoring All Prescriptions Program (ABC-MAP).
"Principal." An officer, director or person who directly
owns a beneficial interest in or ownership of the securities of
an applicant or permittee, a person who has a controlling
interest in an applicant or permittee or who has the ability to
elect the majority of the board of directors of an applicant or
permittee or otherwise control an applicant or permittee, other
than a financial institution.
"Registry." The registry established by the department for
practitioners.
["Secretary." The Secretary of Health of the Commonwealth.]
"Security." As defined in section 102(t) of the act of
December 5, 1972 (P.L.1280, No.284), known as the Pennsylvania
Securities Act of 1972.
"Serious medical condition." Any of the following:
(1) Cancer.
(2) Positive status for human immunodeficiency virus or
acquired immune deficiency syndrome.
(3) Amyotrophic lateral sclerosis.
(4) Parkinson's disease.
(5) Multiple sclerosis.
(6) Damage to the nervous tissue of the spinal cord with
objective neurological indication of intractable spasticity.
(7) Epilepsy.
(8) Inflammatory bowel disease.
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(9) Neuropathies.
(10) Huntington's disease.
(11) Crohn's disease.
(12) Post-traumatic stress disorder.
(13) Intractable seizures.
(14) Glaucoma.
(15) Sickle cell anemia.
(16) Severe chronic or intractable pain of neuropathic
origin or severe chronic or intractable pain in which
conventional therapeutic intervention and opiate therapy is
contraindicated or ineffective.
(17) Autism.
"Terminally ill." A medical prognosis of life expectancy of
approximately one year or less if the illness runs its normal
course.
Section 301. Program established.
(a) Establishment.--A medical [marijuana] cannabis program
for patients suffering from serious medical conditions is
established. The program shall be implemented and administered
by the department. The department shall:
(1) Issue permits to medical [marijuana] cannabis
organizations to authorize them to grow, process or dispense
medical [marijuana] cannabis and ensure their compliance with
this [act] part.
(2) Register practitioners and ensure their compliance
with this [act] part.
(3) Have regulatory [and enforcement] authority over the
growing, processing, sale and use of medical [marijuana]
cannabis in this Commonwealth.
(4) Establish and maintain an electronic database to
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include activities and information relating to medical
[marijuana] cannabis organizations, certifications and
identification cards issued, practitioner registration and
electronic tracking of all medical [marijuana] cannabis as
required under this [act] part to include:
(i) Ensurance that medical [marijuana] cannabis is
not diverted or otherwise used for unlawful purposes by a
practitioner or medical [marijuana] cannabis
organization.
(ii) Ability to establish the authenticity of
identification cards.
(iii) Recording recommended forms of medical
[marijuana] cannabis provided in a certification filed by
the practitioner.
(iv) Monitoring all growth, transfer, possession,
processing, testing and dispensing of medical [marijuana]
cannabis in this Commonwealth.
(v) The tracking system under section 701 must
include information under section 801(a) and any other
information required by the department to be used by the
department and dispensaries to enable a dispensary to
lawfully provide medical [marijuana] cannabis. The
tracking system and database shall be capable of
providing information in real time. The database shall be
capable of receiving information from a dispensary
regarding the disbursement of medical [marijuana]
cannabis to patients and caregivers. This information
shall be immediately accessible to the department and
other dispensaries to inhibit diversion and ensure
compliance with this [act] part.
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(5) Maintain a directory of patients and caregivers
approved to use or assist in the administration of medical
[marijuana] cannabis within the department's database.
(6) Develop a four-hour training course for physicians,
pharmacists, certified registered nurse practitioners and
physician assistants regarding the latest scientific research
on medical [marijuana] cannabis, including the risks and
benefits of medical [marijuana] cannabis, and other
information deemed necessary by the department. Successful
completion of the course shall be approved as continuing
education credits as determined by:
(i) The State Board of Medicine and the State Board
of Osteopathic Medicine.
(ii) The State Board of Pharmacy.
(iii) The State Board of Nursing.
(7) Develop a two-hour course for the principals and
employees of a medical [marijuana] cannabis organization who
either have direct contact with patients or caregivers or who
physically handle medical [marijuana] cannabis. Employees
must successfully complete the course no later than 90 days
after commencing employment. Principals must successfully
complete the course prior to commencing initial operation of
the medical [marijuana] cannabis organization. The subject
matter of the course shall include the following:
(i) Methods to recognize and report unauthorized
activity, including diversion of medical [marijuana]
cannabis for unlawful purposes and falsification of
identification cards.
(ii) Proper handling of medical [marijuana] cannabis
and recordkeeping.
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(iii) Any other subject required by the department.
(8) [Develop enforcement procedures, including announced
and unannounced inspections of facilities of the
grower/processors and dispensaries and all records of the
medical marijuana organizations.] (Reserved).
(9) Establish a program to authorize the use of medical
[marijuana] cannabis to conduct medical research relating to
the use of medical [marijuana] cannabis to treat serious
medical conditions, including the collection of data and the
provision of research grants.
(10) Establish and maintain public outreach programs
about the medical [marijuana] cannabis program, including:
(i) A dedicated telephone number for patients,
caregivers and members of the public to obtain basic
information about the dispensing of medical [marijuana]
cannabis under this [act] part.
(ii) A publicly accessible Internet website with
similar information.
(11) Collaborate as necessary with other Commonwealth
agencies or contract with third parties as necessary to carry
out the provisions of this [act] part.
(12) Determine the minimum number and type of medical
[marijuana] cannabis products to be produced by a
grower/processor and dispensed by a dispensary.
(13) Develop recordkeeping requirements for all books,
papers, any electronic database or tracking system data and
other information of a medical [marijuana] cannabis
organization. Information shall be retained for a minimum
period of four years unless otherwise provided by the
department.
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(14) Restrict the advertising and marketing of medical
[marijuana] cannabis, which shall be consistent with the
Federal regulations governing prescription drug advertising
and marketing.
(b) Regulations.--The department shall promulgate all
regulations necessary to carry out the provisions of this [act]
part.
Section 302. Confidentiality and public disclosure.
(a) Patient information.--The department shall maintain a
confidential list of patients and caregivers to whom it has
issued identification cards. All information obtained by the
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 502(b).
(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] cannabis organizations.
(2) The names, business addresses and medical
credentials of practitioners authorized to provide
certifications to patients to enable them to obtain and use
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medical [marijuana] cannabis in this Commonwealth. All other
practitioner registration information shall be confidential
and exempt from public disclosure under the Right-to-Know
Law.
(3) Information relating to penalties or other
disciplinary actions taken against a medical [marijuana]
cannabis organization or practitioner by the department for
violation of this [act] part.
Section 303. Lawful use of medical [marijuana] cannabis.
(a) General rule.--Notwithstanding any provision of law to
the contrary, use or possession of medical [marijuana] cannabis
as set forth in this [act] part is lawful within this
Commonwealth.
(b) Requirements.--The lawful use of medical [marijuana]
cannabis is subject to the following:
(1) Medical [marijuana] cannabis may only be dispensed
to:
(i) a patient who receives a certification from a
practitioner and is in possession of a valid
identification card issued by the department; and
(ii) a caregiver who is in possession of a valid
identification card issued by the department.
(2) Subject to regulations promulgated under this [act]
part, medical [marijuana] cannabis may only be dispensed to a
patient or caregiver in the following forms:
(i) pill;
(ii) oil;
(iii) topical forms, including gels, creams or
ointments;
(iv) a form medically appropriate for administration
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by vaporization or nebulization, excluding dry leaf or
plant form until dry leaf or plant forms become
acceptable under regulations adopted under section 1202;
(v) tincture; or
(vi) liquid.
(3) Unless otherwise provided in regulations adopted by
the department under section 1202, medical [marijuana]
cannabis may not be dispensed to a patient or a caregiver in
dry leaf or plant form.
(4) An individual may not act as a caregiver for more
than five patients.
(5) A patient may designate up to two caregivers at any
one time.
(6) Medical [marijuana] cannabis that has not been used
by the patient shall be kept in the original package in which
it was dispensed.
(7) A patient or caregiver shall possess an
identification card whenever the patient or caregiver is in
possession of medical [marijuana] cannabis.
(8) Products packaged by a grower/processor or sold by a
dispensary shall only be identified by the name of the
grower/processor, the name of the dispensary, the form and
species of medical [marijuana] cannabis, the percentage of
tetrahydrocannabinol and cannabinol contained in the product
and any other labeling required by the department.
Section 304. Unlawful use of medical [marijuana] cannabis.
(a) General rule.--Except as provided in section 303,
section 704, Chapter 19 or Chapter 20, the use of medical
[marijuana] cannabis is unlawful and shall, in addition to any
other penalty provided by law, be deemed a violation of the act
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of April 14, 1972 (P.L.233, No.64), known as The Controlled
Substance, Drug, Device and Cosmetic Act.
(b) Unlawful use described.--It is unlawful to:
(1) Smoke medical [marijuana] cannabis.
(2) Except as provided under subsection (c), incorporate
medical [marijuana] cannabis into edible form.
(3) Grow medical [marijuana] cannabis unless the
grower/processor has received a permit from the department
under this [act] part.
(4) Grow or dispense medical [marijuana] cannabis unless
authorized as a health care medical [marijuana] cannabis
organization [under Chapter 19].
(5) Dispense medical [marijuana] cannabis unless the
dispensary has received a permit from the department under
this [act] part.
(c) Edible medical [marijuana] cannabis.--Nothing in this
[act] part shall be construed to preclude the incorporation of
medical [marijuana] cannabis into edible form by a patient or a
caregiver in order to aid ingestion of the medical [marijuana]
cannabis by the patient.
Section 401. Practitioner registration.
(a) Eligibility.--A physician included in the registry is
authorized to issue certifications to patients to use medical
[marijuana] cannabis. To be eligible for inclusion in the
registry:
(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
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of credentials, training or experience as required by the
department.
(3) The physician must have successfully completed the
course under section 301(a)(6).
(b) Department action.--
(1) The department shall review an application submitted
by a physician to determine whether to include the physician
in the registry. The review shall include information
maintained by the Department of State regarding whether the
physician has a valid, unexpired, unrevoked, unsuspended
Pennsylvania license to practice medicine and whether the
physician has been subject to discipline.
(2) The inclusion of a physician in the registry shall
be subject to annual review to determine if the physician's
license is no longer valid, has expired or been revoked or
the physician has been subject to discipline. If the license
is no longer valid, the department shall remove the physician
from the registry until the physician holds a valid,
unexpired, unrevoked, unsuspended Pennsylvania license to
practice medicine.
(3) The Department of State shall report to the
department the expiration, suspension or revocation of a
physician's license and any disciplinary actions in a timely
fashion.
(c) Practitioner requirements.--A practitioner included in
the registry shall have an ongoing responsibility to immediately
notify the department in writing if the practitioner knows or
has reason to know that any of the following is true with
respect to a patient for whom the practitioner has issued a
certification:
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(1) The patient no longer has the serious medical
condition for which the certification was issued.
(2) Medical [marijuana] cannabis would no longer be
therapeutic or palliative.
(3) The patient has died.
Section 402. Practitioner restrictions.
(a) Practices prohibited.--The following apply with respect
to practitioners:
(1) A practitioner may not accept, solicit or offer any
form of remuneration from or to a prospective patient,
patient, prospective caregiver, caregiver or medical
[marijuana] cannabis organization, including an employee,
financial backer or principal, to certify a patient, other
than accepting a fee for service with respect to the
examination of the prospective patient to determine if the
prospective patient should be issued a certification to use
medical [marijuana] cannabis.
(2) A practitioner may not hold a direct or economic
interest in a medical [marijuana] cannabis organization.
(3) A practitioner may not advertise the practitioner's
services as a practitioner who can certify a patient to
receive medical [marijuana] cannabis.
(b) Unprofessional conduct.--A practitioner who violates
subsection (a) shall not be permitted to issue certifications to
patients. The practitioner shall be removed from the registry.
(c) Discipline.--In addition to any other penalty that may
be imposed under this [act] part, a violation of subsection (a)
or section 403(e) shall be deemed unprofessional conduct under
section 41(8) of the act of December 20, 1985 (P.L.457, No.112),
known as the Medical Practice Act of 1985, or section 15(a)(8)
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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.
Section 403. Issuance of certification.
(a) Conditions for issuance.--A certification to use medical
[marijuana] cannabis may be issued by a practitioner to a
patient if all of the following requirements are met:
(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] cannabis.
(b) Contents.--The certification shall include:
(1) The patient's name, date of birth and address.
(2) The specific serious medical condition of the
patient.
(3) A statement by the practitioner that the patient has
a serious medical condition and the patient is under the
practitioner's continuing care for the serious medical
condition.
(4) The date of issuance.
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(5) The name, address, telephone number and signature of
the practitioner.
(6) Any requirement or limitation concerning the
appropriate form of medical [marijuana] cannabis and
limitation on the duration of use, if applicable, including
whether the patient is terminally ill.
(c) Consultation.--A practitioner shall review the
prescription drug monitoring program prior to:
(1) Issuing a certification to determine the controlled
substance history of a patient.
(2) Recommending a change of amount or form of medical
[marijuana] cannabis.
(c.1) Other access by practitioner.--A practitioner may
access the prescription drug monitoring program to do any of the
following:
(1) Determine whether a patient may be under treatment
with a controlled substance by another physician or other
person.
(2) Allow the practitioner to review the patient's
controlled substance history as deemed necessary by the
practitioner.
(3) Provide to the patient, or caregiver on behalf of
the patient if authorized by the patient, a copy of the
patient's controlled substance history.
(d) 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
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certification.
(3) File a copy of the certification in the patient's
health care record.
(e) Prohibition.--A practitioner may not issue a
certification for the practitioner's own use or for the use of a
family or household member.
Section 405. Duration.
Receipt of medical [marijuana] cannabis by a patient or
caregiver from a dispensary may not exceed a 30-day supply of
individual doses. During the last seven days of any 30-day
period during the term of the identification card, a patient may
obtain and possess a 30-day supply for the subsequent 30-day
period. Additional 30-day supplies may be provided in accordance
with this section for the duration of the authorized period of
the identification card unless a shorter period is indicated on
the certification.
Section 501. Identification cards.
(a) Issuance.--The department may issue an identification
card to a patient who has a certification approved by the
department and to a caregiver designated by the patient. An
identification card issued to a patient shall authorize the
patient to obtain and use medical [marijuana] cannabis as
authorized by this [act] part. An identification card issued to
a caregiver shall authorize the caregiver to obtain medical
[marijuana] cannabis on behalf of the patient.
* * *
(i) Lost or defaced card.--In the event of a lost, stolen,
destroyed or illegible identification card, the patient or
caregiver shall apply to the department within 10 business days
of discovery of the loss or defacement of the card for a
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replacement card. The application for a replacement card shall
be on a form furnished by the department and accompanied by a
$25 fee. The department may establish higher fees for issuance
of second and subsequent replacement identification cards. The
department may waive or reduce the fee in cases of demonstrated
financial hardship. The department shall issue a replacement
identification card as soon as practicable. A patient or
caregiver may not obtain medical [marijuana] cannabis until the
department issues the replacement card.
Section 502. Caregivers.
* * *
(b) Criminal history.--A caregiver shall submit fingerprints
for the purpose of obtaining criminal history record checks, and
the Pennsylvania State Police or its authorized agent shall
submit the fingerprints to the Federal Bureau of Investigation
for the purpose of verifying the identity of the applicant and
obtaining a current record of any criminal arrests and
convictions. Any criminal history record information relating to
a caregiver obtained under this section by the department may be
interpreted and used by the department only to determine the
applicant's character, fitness and suitability to serve as a
caregiver under this [act] part. The department shall also
review the prescription drug monitoring program relating to the
caregiver. The department shall deny the application of a
caregiver who has been convicted of a criminal offense that
occurred within the past five years relating to the sale or
possession of drugs, narcotics or controlled substances. The
department may deny an application if the applicant has a
history of drug abuse or of diverting controlled substances or
illegal drugs.
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Section 504. Special conditions.
The following apply:
(1) If the practitioner states in the certification
that, in the practitioner's professional opinion, the patient
would benefit from medical [marijuana] cannabis only until a
specified earlier date, [then] the identification card shall
expire on that date.
(2) If the certification so provides, the identification
card shall state any requirement or limitation by the
practitioner as to the form of medical [marijuana] cannabis
for the patient.
Section 508. Contents of identification card.
An identification card shall contain the following:
(1) The name of the caregiver or the patient, as
appropriate. The identification card shall also state whether
the individual is designated as a patient or as a caregiver.
(2) The date of issuance and expiration date.
(3) An identification number for the patient or
caregiver, as appropriate.
(4) A photograph of the individual to whom the
identification card is being issued, whether the individual
is a patient or a caregiver. The method of obtaining the
photograph shall be specified by the department by
regulation. The department shall provide reasonable
accommodation for a patient who is confined to the patient's
home or is in inpatient care.
(5) Any requirement or limitation set by the
practitioner as to the form of medical [marijuana] cannabis.
(6) Any other requirements determined by the department,
except the department may not require that an identification
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card disclose the patient's serious medical condition.
Section 509. Suspension.
If a patient or caregiver intentionally, knowingly or
recklessly violates any provision of this [act] part as
determined by the department, the identification card of the
patient or caregiver may be suspended or revoked. The suspension
or revocation shall be in addition to any criminal or other
penalty that may apply.
Section 510. Prohibitions.
The following prohibitions shall apply:
(1) A patient may not operate or be in physical control
of any of the following while under the influence with a
blood content of more than 10 nanograms of active
tetrahydrocannabis per milliliter of blood in serum:
(i) Chemicals which require a permit issued by the
Federal Government or a state government or an agency of
the Federal Government or a state government.
(ii) High-voltage electricity or any other public
utility.
(2) A patient may not perform any employment duties at
heights or in confined spaces, including, but not limited to,
mining while under the influence of medical [marijuana]
cannabis.
(3) A patient may be prohibited by an employer from
performing any task which the employer deems life-
threatening, to either the employee or any of the employees
of the employer, while under the influence of medical
[marijuana] cannabis. The prohibition shall not be deemed an
adverse employment decision even if the prohibition results
in financial harm for the patient.
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(4) A patient may be prohibited by an employer from
performing any duty which could result in a public health or
safety risk while under the influence of medical [marijuana]
cannabis. The prohibition shall not be deemed an adverse
employment decision even if the prohibition results in
financial harm for the patient.
CHAPTER 6
MEDICAL [MARIJUANA] CANNABIS ORGANIZATIONS
Section 601. Medical [marijuana] cannabis organizations.
The following entities shall be authorized to receive a
permit to operate as a medical [marijuana] cannabis organization
to grow, process or dispense medical [marijuana] cannabis:
(1) Grower/processors.
(2) Dispensaries.
Section 602. Permits.
(a) Application.--An application for a grower/processor or
dispensary permit to grow, process or dispense medical
[marijuana] cannabis shall be in a form and manner prescribed by
the department and shall include:
(1) Verification of all principals, operators, financial
backers or employees of a medical [marijuana] cannabis
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]
c annabis organizations applying for a permit shall submit
fingerprints of principals, financial backers, operators and
employees to the Pennsylvania State Police for the purpose of
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obtaining criminal history record checks and the Pennsylvania
State Police or its authorized agent shall submit the
fingerprints to the Federal Bureau of Investigation for the
purpose of verifying the identity of the principals,
financial backers, operators and employees and obtaining a
current record of any criminal arrests and convictions. Any
criminal history record information relating to principals,
financial backers, operators and employees obtained under
this section by the department may be interpreted and used by
the department only to determine the principal's, financial
backer's, operator's and employee's character, fitness and
suitability to serve as a principal, financial backer,
operator and employee under this [act] part. This paragraph
shall not apply to an owner of securities in a publicly
traded corporation if the department determines that the
owner of the securities is not substantially involved in the
activities of the medical [marijuana] cannabis organization.
(5) Details relating to a similar license, permit or
other authorization obtained in another jurisdiction,
including any suspensions, revocations or discipline in that
jurisdiction.
(6) A description of the business activities in which it
intends to engage as a medical [marijuana] cannabis
organization.
(7) A statement that the applicant:
(i) Is of good moral character. For purposes of this
subparagraph, an applicant shall include each financial
backer, operator, employee and principal of the medical
[marijuana] cannabis organization.
(ii) Possesses the ability to obtain in an
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expeditious manner the right to use sufficient land,
buildings and other premises and equipment to properly
carry on the activity described in the application and
any proposed location for a facility.
(iii) Is able to maintain effective security and
control to prevent diversion, abuse and other illegal
conduct relating to medical [marijuana] cannabis.
(iv) Is able to comply with all applicable
Commonwealth laws and regulations relating to the
activities in which it intends to engage under this [act]
part.
(8) The name, residential address and title of each
financial backer and principal of the applicant. Each
individual, or lawful representative of a legal entity, shall
submit an affidavit with the application setting forth:
(i) Any position of management or ownership during
the preceding 10 years of a controlling interest in any
other business, located inside or outside this
Commonwealth, manufacturing or distributing controlled
substances.
(ii) Whether the person or business has been
convicted of a criminal offense graded higher than a
summary offense or has had a permit relating to medical
[marijuana] cannabis suspended or revoked in any
administrative or judicial proceeding.
(9) Any other information the department may require.
(a.1) Pennsylvania farms.--A grower/processor may contract
with a Pennsylvania farm to use the land and buildings of the
Pennsylvania farm to grow and process medical cannabis. The
applicant for a grower/processor shall include all applicable
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information required under subsection (a) for the Pennsylvania
farm.
(b) Notice.--An application shall include notice that a
false statement made in the application is punishable under the
applicable provisions of 18 Pa.C.S. Ch. 49 (relating to
falsification and intimidation).
Section 603. Granting of permit.
(a) General rule.--The department may grant or deny a permit
to a medical cannabis grower/processor or dispensary.
(a.1) Determination.--In making a decision under subsection
(a), the department shall determine that:
(1) The applicant will maintain effective control of and
prevent diversion of medical [marijuana] cannabis.
(2) The applicant will comply with all applicable laws
of this Commonwealth.
(3) The applicant is ready, willing and able to properly
carry on the activity for which a permit is sought.
(4) The applicant possesses the ability to obtain in an
expeditious manner sufficient land, buildings and equipment
to properly grow, process or dispense medical [marijuana]
cannabis.
(5) It is in the public interest to grant the permit.
(6) The applicant, including the financial backer or
principal, is of good moral character and has the financial
fitness necessary to operate.
(7) The applicant is able to implement and maintain
security, tracking, recordkeeping and surveillance systems
relating to the acquisition, possession, growth, manufacture,
sale, delivery, transportation, distribution or the
dispensing of medical [marijuana] cannabis as required by the
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department.
(8) The applicant satisfies any other conditions as
determined by the department.
(b) Nontransferability.--A permit issued under this chapter
shall be nontransferable.
(c) Privilege.--The issuance or renewal of a permit shall be
a revocable privilege.
(d) Regions.--The department shall establish a minimum of
three regions within this Commonwealth for the purpose of
granting permits to grower/processors and dispensaries and
enforcing this [act] part. The department shall approve permits
for grower/processors and dispensaries in a manner which will
provide an adequate amount of medical [marijuana] cannabis to
patients and caregivers in all areas of this Commonwealth. The
department shall consider the following when issuing a permit:
(1) Regional population.
(2) The number of patients suffering from serious
medical conditions.
(3) The types of serious medical conditions.
(4) Access to public transportation.
(5) Any other factor the department deems relevant.
Section 606. Application and issuance.
(a) Duty to report.--An applicant to be a grower/processor
or to operate a dispensary is under a continuing duty to:
(1) Report to the department any change in facts or
circumstances reflected in the application or any newly
discovered or occurring fact or circumstance which is
required to be included in the application, including a
change in control of the medical [marijuana] cannabis
organization.
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(2) Report to law enforcement, within 24 hours, any loss
or theft of medical [marijuana] cannabis.
(3) Submit to announced or unannounced inspections by
the department of the facilities for growing, processing,
dispensing or selling medical [marijuana] cannabis, including
all records of the organization.
(b) Additional information.--If the department is not
satisfied that the applicant should be issued a permit, the
department shall notify the applicant in writing of the factors
for which further documentation is required. Within 30 days of
the receipt of the notification, the applicant may submit
additional material to the department.
Section 607. Fees and other requirements.
The following apply:
(1) For a medical cannabis grower/processor:
(i) An initial application fee in the amount of
$10,000 shall be paid. The fee is nonrefundable.
(ii) A fee for a permit as a grower/processor in the
amount of $200,000 shall be paid. The permit shall be
valid for one year. Applicants shall submit the permit
fee at the time of submission of the application. The fee
shall be returned if the permit is not granted.
(iii) A renewal fee for the permit as a
grower/processor in the amount of $10,000 shall be paid
and shall cover renewal for all locations. The renewal
fee shall be returned if the renewal is not granted.
(iv) An application to renew a permit must be filed
with the department not more than six months nor less
than four months prior to expiration.
(v) All fees shall be paid by certified check or
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money order.
(vi) Before issuing an initial permit under this
paragraph, the department shall verify that the applicant
has at least $2,000,000 in capital, $500,000 of which
must be on deposit with a financial institution.
(2) For a medical cannabis dispensary:
(i) An initial application fee in the amount of
$5,000 shall be paid. The fee is nonrefundable.
(ii) A permit fee for a dispensary shall be $30,000
for each location. The period of the permit is one year.
An applicant shall submit the permit fee at the time of
submission of the application. The fee shall be returned
if the application is not granted.
(iii) A renewal fee for the permit as a dispensary
in the amount of $5,000 shall be paid. The fee shall be
returned if the renewal is not granted and shall cover
renewal for all locations.
(iv) An application to renew a permit must be filed
with the department not more than six months nor less
than four months prior to expiration.
(v) All fees shall be paid by certified check or
money order.
(vi) Before issuing an initial permit under this
paragraph, the department shall verify that the applicant
has at least $150,000 in capital, which must be on
deposit with a financial institution.
(3) A fee of $250 shall be required when amending the
application to indicate relocation within this Commonwealth
or the addition or deletion of approved activities by the
medical [marijuana] cannabis organization.
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(4) Fees payable under this section shall be deposited
into the fund.
Section 608. Issuance.
A permit issued by the department to a medical [marijuana]
cannabis organization shall be effective only for that
organization and shall specify the following:
(1) The name and address of the medical [marijuana]
cannabis organization.
(2) The activities of the medical [marijuana] cannabis
organization permitted under this [act] part.
(3) The land, buildings, facilities or location to be
used by the medical [marijuana] cannabis organization.
(4) Any other information required by the department.
Section 609. Relocation.
The department may approve an application from a medical
[marijuana] cannabis organization to relocate within this
Commonwealth or to add or delete activities or facilities.
Section 610. Terms of permit.
A permit issued by the department under this part shall be
valid for one year from the date of issuance.
Section 612. Permit renewals.
(a) Renewal.--An application for renewal shall include the
following information:
(1) Any material change in the information provided by
the medical [marijuana] cannabis organization in a prior
application or renewal of a permit.
(2) Any charge or initiated, pending or concluded
investigation, during the period of the permit, by any
governmental or administrative agency with respect to:
(i) any incident involving the theft, loss or
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possible diversion of medical [marijuana] cannabis grown,
processed or dispensed by the applicant; and
(ii) compliance by the applicant with the laws of
this Commonwealth with respect to any substance listed in
section 4 of the act of April 14, 1972 (P.L.233, No.64),
known as The Controlled Substance, Drug, Device and
Cosmetic Act.
(b) Approval.--The department shall renew a permit unless
the department determines that:
(1) The applicant is unlikely to maintain or be able to
maintain effective control against diversion of medical
[marijuana] cannabis.
(2) The applicant is unlikely to comply with all laws of
this Commonwealth applicable to the activities in which it
may engage under the permit.
(c) Nonrenewal decision.--The denial or nonrenewal shall
specify in detail how the applicant has not satisfied the
department's requirements for renewal. Within 30 days of the
department's decision, the applicant may submit additional
material to the department or demand a hearing, or both. If a
hearing is demanded, the department shall fix a date as soon as
practicable.
Section 613. Suspension or revocation.
The department may suspend or revoke a medical [marijuana]
cannabis organization permit if:
(1) The department has evidence that the medical
[marijuana] cannabis organization has failed to maintain
effective control against diversion of medical [marijuana]
cannabis.
(2) The medical cannabis organization violates any
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provision of this [act] part or a regulation of the
department.
(3) The medical cannabis organization has intentionally,
knowingly, recklessly or negligently failed to comply with
applicable laws of this Commonwealth relating to medical
[marijuana] cannabis.
Section 614. Convictions prohibited.
The following individuals may not hold volunteer positions or
positions with remuneration in or be affiliated with a medical
[marijuana] cannabis organization, including a clinical
registrant under Chapter 20, in any way if the individual has
been convicted of any criminal offense related to the sale or
possession of illegal drugs, narcotics or controlled substances:
(1) Financial backers.
(2) Principals.
(3) Employees.
Section 615. Diversity goals.
(a) Goals.--It is the intent and goal of the General
Assembly that the department promote diversity and the
participation by diverse groups in the activities authorized
under this [act] part. In order to further this goal, the
department shall adopt and implement policies ensuring the
following:
(1) That diverse groups are accorded equal opportunity
in the permitting process.
(2) That permittees promote the participation of diverse
groups in their operations by affording equal access to
employment opportunities.
(b) Duties of department.--To facilitate participation by
diverse groups in the activities authorized under this [act]
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part, the department shall:
(1) Conduct necessary and appropriate outreach
including, if necessary, consulting with other Commonwealth
agencies to identify diverse groups who may qualify for
participation in activities under this [act] part.
(2) Provide sufficient and continuous notice of the
participation opportunities afforded under this [act] part by
publishing notice on the department's publicly accessible
Internet website.
(3) Include in the applications for permit under this
[act] part language to encourage applicants to utilize and
give consideration to diverse groups for contracting or
professional services opportunities.
(c) Reports.--No later than March 1, 2018, and each March 1
thereafter, the department shall submit a report to the
chairperson and minority chairperson of the [Public Health and
Welfare] Health and Human Services Committee of the Senate and
the chairperson and minority chairperson of the Health Committee
of the House of Representatives summarizing the participation
and utilization of diverse groups in the activities authorized
under this [act] part. The report shall include:
(1) The participation level, by percentage, of diverse
groups in the activities authorized under this [act] part.
(2) A summary of how diverse groups are utilized by
permittees, including in the provision of goods or services.
(3) Any other information the department deems
appropriate.
(d) Definitions.--The following words and phrases when used
in this section shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
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"Disadvantaged business." As defined in 74 Pa.C.S. § 303(b)
(relating to diverse business participation).
"Diverse group." A disadvantaged business, minority-owned
business, women-owned business, service-disabled veteran-owned
small business or veteran-owned small business that has been
certified by a third-party certifying organization.
"Minority-owned business." As defined in 74 Pa.C.S. §
303(b).
"Service-disabled veteran-owned small business." As defined
in 51 Pa.C.S. § 9601 (relating to definitions).
"Third-party certifying organization." As defined in 74
Pa.C.S. § 303(b).
"Veteran-owned small business." As defined in 51 Pa.C.S. §
9601.
"Women-owned business." As defined in 74 Pa.C.S. § 303(b).
Section 616. Limitations on permits.
The following limitations apply to approval of permits for
medical cannabis 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] cannabis 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
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is increased under section 1202, 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]
cannabis from a grower/processor holding a valid permit under
this [act] part.
(7) A grower/processor may only provide medical
[marijuana] cannabis to a dispensary holding a valid permit
under this [act] part.
CHAPTER 7
MEDICAL [MARIJUANA] CANNABIS CONTROLS
Section 701. 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]
cannabis 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] cannabis from seed
to plant until the medical [marijuana] cannabis is sold to a
dispensary.
(2) For a dispensary, medical [marijuana] cannabis 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
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inventory. The tracking system shall include prices paid and
amounts collected from patients and caregivers.
(4) For a grower/processor and a dispensary, a system
for recall of defective medical [marijuana] cannabis.
(5) For a grower/processor and a dispensary, a system to
track the plant waste resulting from the growth of medical
[marijuana] cannabis or other disposal, including the name
and address of any disposal service.
(b) Additional requirements.--In addition to the information
under subsection (a), each medical [marijuana] cannabis
organization shall track the following:
(1) Security and surveillance.
(2) Recordkeeping and record retention.
(3) The acquisition, possession, growing and processing
of medical [marijuana] cannabis.
(4) Delivery and transportation, including amounts and
method of delivery.
(5) Dispensing, including amounts, pricing and amounts
collected from patients and caregivers.
(c) Access.--Information maintained in electronic tracking
systems under subsection (a) shall be confidential and not
subject to the act of February 14, 2008 (P.L.6, No.3), known as
the Right-to-Know Law.
(d) Reports.--Within one year of the issuance of the first
permit to a 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] cannabis sold by a
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grower/processor during each three-month period.
(2) The price of amounts of medical [marijuana] cannabis
sold by grower/processors as determined by the department.
(3) The amount of medical [marijuana] cannabis purchased
by each dispensary in this Commonwealth.
(4) The cost of amounts of medical [marijuana] cannabis
to each dispensary in amounts as determined by the
department.
(5) The total amount and dollar value of medical
[marijuana] cannabis sold by each dispensary in the three-
month period.
Section 702. Grower/processors.
(a) Authorization.--Subject to subsection (b), a
grower/processor may do all of the following in accordance with
department regulations:
(1) Obtain seed from outside this Commonwealth to
initially grow medical [marijuana] cannabis.
(2) Obtain seed and plant material from another
grower/processor within this Commonwealth to grow medical
[marijuana] cannabis.
(b) Limitations.--
[(1)] A grower/processor may only grow, store, harvest
or process medical [marijuana] cannabis in an indoor,
enclosed, secure facility which:
[(i)] (1) includes electronic locking systems,
electronic surveillance and other features required by the
department; and
[(ii)] (2) is located within this Commonwealth.
[(2) (Reserved).]
Section 703. Storage and transportation.
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The department shall develop regulations relating to the
storage and transportation of medical [marijuana] cannabis 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] cannabis. The
regulations shall provide for the following:
(1) Requirements relating to shipping containers and
packaging.
(2) The manner in which trucks, vans, trailers or other
carriers will be secured.
(3) Security systems that include a numbered seal on the
trailer.
(4) Obtaining copies of drivers' licenses and
registrations and other information related to security and
tracking.
(5) Use of GPS systems.
(6) Number of drivers or other security required to
ensure against storage or in-transit losses.
(7) Recordkeeping for delivery and receipt of medical
[marijuana] cannabis products.
(8) Requirements to utilize any electronic tracking
system required by the department.
(9) Transporting medical [marijuana] cannabis to a
grower/processor, approved laboratory or dispensary.
Section 704. Laboratory.
A grower/processor shall contract with an independent
laboratory to test the medical [marijuana] cannabis produced by
the grower/processor. The department shall approve the
laboratory and require that the laboratory report testing
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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] cannabis shall
be a lawful use.
Section 705. Prices.
The department and the Department of Revenue shall monitor
the price of medical [marijuana] cannabis sold by
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] cannabis
being sold for a period of six months. The cap may be amended
during the six-month period. If the department and the
Department of Revenue determine that the prices become
unreasonable or excessive following the expiration of a six-
month cap, additional caps may be imposed for periods not to
exceed six months.
Section 801. Dispensing to patients and caregivers.
(a) General rule.--A dispensary that has been issued a
permit under Chapter 6 may lawfully dispense medical [marijuana]
cannabis to a patient or caregiver upon presentation to the
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] cannabis was
dispensed.
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(4) Any requirement or limitation by the practitioner as
to the form of medical [marijuana] cannabis for the patient.
(5) The form and the quantity of medical [marijuana]
cannabis dispensed.
(b) Requirements.--A dispensary shall have a physician or a
pharmacist onsite 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 be onsite at each of
the other locations in lieu of the physician or pharmacist. A
physician, a pharmacist, a physician assistant or a certified
registered nurse practitioner shall, prior to assuming duties
under this paragraph, successfully complete the course
established in section 301(a)(6). A physician may not issue a
certification to authorize patients to receive medical
[marijuana] cannabis or otherwise treat patients at the
dispensary.
(c) Filing with department.--Prior to dispensing medical
[marijuana] cannabis 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] cannabis greater
than that which the patient or caregiver is permitted to
possess under the certification; or
(2) a form of medical [marijuana] cannabis prohibited by
this [act] part.
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(e) Supply.--When dispensing medical [marijuana] cannabis to
a patient or caregiver, the dispensary may not dispense an
amount greater than a 30-day supply until the patient has
exhausted all but a seven-day supply provided pursuant to a
previously issued certification until additional certification
is presented under section 405.
(f) Verification.--Prior to dispensing medical [marijuana]
cannabis to a patient or caregiver, the dispensary shall verify
the information in subsections (e) and (g) by consulting the
electronic tracking system included in the department's
electronic database established under section 301(a)(4)(v) and
the dispensary tracking system under section 701(a)(2).
(g) Form of medical [marijuana] cannabis.--Medical
[marijuana] cannabis dispensed to a patient or caregiver by a
dispensary shall conform to any requirement or limitation set by
the practitioner as to the form of medical [marijuana] cannabis
for the patient.
(h) Safety insert.--When a dispensary dispenses medical
[marijuana] cannabis 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]
cannabis in individual doses.
(2) Any potential dangers stemming from the use of
medical [marijuana] cannabis.
(3) How to recognize what may be problematic usage of
medical [marijuana] cannabis and how to obtain appropriate
services or treatment for problematic usage.
(4) How to prevent or deter the misuse of medical
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[marijuana] cannabis by minors or others.
(5) Any other information as determined by the
department.
(i) Sealed and labeled package.--Medical [marijuana]
cannabis shall be dispensed by a 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]
cannabis should be used.
(4) A warning stating:
"This product is for medicinal use only. Women should not
consume during pregnancy or while breastfeeding except on the
advice of the practitioner who issued the certification and,
in the case of breastfeeding, the infant's pediatrician. This
product might impair the ability to drive or operate heavy
machinery. Keep out of reach of children."
(5) The amount of individual doses contained within the
package and the species and percentage of
tetrahydrocannabinol and cannabidiol.
(6) A warning that the medical [marijuana] cannabis must
be kept in the original container in which it was dispensed.
(7) A warning that unauthorized use is unlawful and will
subject the person to criminal penalties.
(8) Any other information required by the department.
Section 802. Facility requirements.
(a) General rule.--
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(1) A dispensary may only dispense medical [marijuana]
cannabis in an indoor, enclosed, secure facility located
within this Commonwealth, as determined by the department.
(2) A dispensary may not operate on the same site as a
facility used for growing and processing medical [marijuana]
cannabis.
(3) 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.
(4) A dispensary may sell medical devices and
instruments which are needed to administer medical
[marijuana] cannabis under this [act] part.
(5) A dispensary may sell services approved by the
department related to the use of medical [marijuana]
cannabis.
* * *
CHAPTER 9
TAX ON MEDICAL [MARIJUANA] CANNABIS
Section 901. Tax on medical [marijuana] cannabis.
(a) Tax imposed.--A tax is imposed on the gross receipts of
a grower/processor received from the sale of medical [marijuana]
cannabis by a grower/processor to a dispensary, to be paid by
the grower/processor, at the rate of 5%. The tax shall be
charged against and be paid by the grower/processor and shall
not be added as a separate charge or line item on any sales
slip, invoice, receipt or other statement or memorandum of the
price paid by a dispensary, patient or caregiver.
(b) Payment of tax and reports.--The tax imposed under
subsection (a) shall be administered in the same manner as the
tax imposed under Article XI of the act of March 4, 1971 (P.L.6,
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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.
(c) (Reserved).
(d) Deposit of proceeds.--All money received from the tax
imposed under subsection (a) shall be deposited into the fund.
(e) Exemption.--Medical [marijuana] cannabis shall not be
subject to the tax imposed under section 202 of the Tax Reform
Code of 1971.
(f) Information.--A grower/processor that sells medical
[marijuana] cannabis shall provide to the Department of Revenue
information required by the department.
Section 902. Medical [Marijuana] Cannabis Program Fund.
(a) Fund established.--The Medical [Marijuana] Cannabis
Program Fund is established as a special fund in the State
Treasury. Money in the fund is appropriated as set forth in
subsection (c). Any amount unspent at the end of a fiscal year
shall be appropriated to the department for its operations.
(b) Source of funds.--Fees and taxes payable under this
[act] part shall be deposited into the fund. The money deposited
into the fund may only be used for the purposes set forth in
this section. Any interest accrued shall be deposited into the
fund.
(c) Use of proceeds.--After any repayment made under
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subsection (d), money in the fund is appropriated in accordance
with the following percentages:
(1) To the department, 55% of the revenue in the fund.
Forty percent of the revenue in the fund shall be expended
for operations of the department, including outreach efforts
and other projects, as required by this [act] part. Fifteen
percent of the amount in the fund shall be used by the
department to establish the following:
(i) a program to assist patients with the cost of
providing medical [marijuana] cannabis to patients who
demonstrate financial hardship or need under this [act]
part, and the department shall develop guidelines and
procedures to ensure maximum availability to individuals
with financial need;
(ii) a program to assist patients and caregivers
with the cost associated with the waiver or reduction of
fees for identification cards under sections 501(c)(5)
and 502(a)(2); and
(iii) a program to reimburse caregivers for the cost
of providing background checks for caregivers.
(2) To the Department of Drug and Alcohol Programs, for
drug abuse prevention and counseling and treatment services,
10% of the revenue in the fund.
(3) To the department, for further research related to
the use of medical [marijuana] cannabis, including the
research program established under Chapter 19, 30% of the
revenue in the fund. Funding shall be provided for research
into the treatment of those serious medical conditions for
which medical [marijuana] cannabis is available for treatment
within this Commonwealth and for research into the use of
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medical [marijuana] cannabis to treat other medical
conditions for which medical [marijuana] cannabis may have
legitimate medicinal value. Money shall be used to subsidize
the cost of, or provide, medical [marijuana] cannabis to
patients participating in the program. However, money in the
fund may not be expended on activity under Chapter 20.
(4) To the Pennsylvania Commission on Crime and
Delinquency, for distribution to local police departments
which demonstrate a need relating to the enforcement of this
[act] part, 5% of the revenue in the fund.
(d) Repayment of initial funding.--The department shall
repay from the fees, taxes and investment earnings of the fund
to the General Fund any money appropriated for the initial
planning, organization and administration by the department with
respect to the establishment of the program at the time of the
original enactment of this [act] part. Repayment shall take
place within a 10-year period commencing one year after the date
of publication in the Pennsylvania Bulletin of the final
regulations.
Section 1101. Governing practice and procedure.
The provisions of 2 Pa.C.S. (relating to administrative law
and procedure) shall apply to all actions of the department
under this [act] part constituting an adjudication as defined in
2 Pa.C.S. § 101 (relating to definitions).
Section 1102. Reports by medical [marijuana] cannabis
organizations.
A medical [marijuana] cannabis organization shall
periodically file reports related to its activities. The
department shall determine the information required in and the
frequency of filing the reports.
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Section 1103. Law enforcement notification.
Notwithstanding any provision of this [act] part or any other
law to the contrary, the department may notify any appropriate
law enforcement agency of information relating to any violation
or suspected violation of this [act] part. In addition, the
department shall verify to law enforcement personnel in an
appropriate case whether a certification, permit, registration
or an identification card is valid, including release of the
name of the patient.
Section 1104. Evaluation.
The department may provide for an analysis and evaluation of
the implementation and effectiveness of this [act] part,
including whether the intent and stated policy of the General
Assembly have been achieved. The department may enter into
agreements with one or more persons for the performance of an
evaluation of the implementation and effectiveness of this [act]
part.
Section 1105. Report.
(a) Report required.--The department shall submit a written
report under subsection (b) every two years, beginning two years
after the effective date of this section, to the following:
[(1) The Governor.
(2) The President pro tempore of the Senate.
(3) The Majority Leader and the Minority Leader of the
Senate.
(4) The Speaker of the House of Representatives.
(5) The Majority Leader and the Minority Leader of the
House of Representatives.
(6) The chairman and minority chairman of the Judiciary