Regular Session 2021-2022 House Bill 1024 P.N. 1823

SENATE AMENDED

PRIOR PRINTER'S NOS. 1059, 1596, 1635

PRINTER'S NO. 1823

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1024

Session of

2021

INTRODUCED BY SCHEMEL, BURGOS, POLINCHOCK, RAPP, RYAN,

ZIMMERMAN, WHEATLEY, SHUSTERMAN, FRANKEL, COX, GUZMAN AND

GAINEY, MARCH 26, 2021

SENATOR REGAN, LAW AND JUSTICE, IN SENATE, AS AMENDED,

JUNE 15, 2021

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," in preliminary

provisions, further providing for definitions; in program,

further providing for confidentiality and public disclosure

and for lawful use of medical marijuana; in practitioners,

further providing for duration; in patients, further

providing for caregivers; in medical marijuana organizations,

further providing for permits, for relocation and for

convictions prohibited; in medical marijuana controls,

further providing for electronic tracking, for

grower/processor, for storage and transportation and for

laboratory; in dispensaries, further providing for dispensing

to patients and caregivers and for facility requirements; IN

ACADEMIC CLINICAL RESEARCH CENTERS AND CLINICAL REGISTRANTS,

FURTHER PROVIDING FOR ACADEMIC CLINICAL RESEARCH CENTERS AND

FOR CLINICAL REGISTRANTS; and, in miscellaneous provisions,

further providing for applicability.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

<--

Section 1. The definitions of "caregiver" and "continuing

care" in section 103 of the act of April 17, 2016 (P.L.84,

No.16), known as the Medical Marijuana Act, are amended and the

section is amended by adding a definition to read:

Section 103. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Caregiver." The [individual] person designated by a patient

or, if the patient is under 18 years of age, an individual under

section 506(2), to deliver medical marijuana.

* * *

"Continuing care." Treating a patient, in the course of

which the practitioner has completed a full assessment of the

patient's medical history and current medical condition,

including [an in-person] a consultation with the patient.

* * *

"Person." Any natural person, corporation, foundation,

organization, business trust, estate, limited liability company,

licensed corporation, trust, partnership, limited liability

partnership, association or other form of legal business entity.

* * *

Section 2. Sections 302(b), 303(b)(4), 405, 502(b), 602(a)

(4), 609 AND 614 of the act are amended to read:

Section 302. Confidentiality and public disclosure.

* * *

(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

20210HB1024PN1823 - 2 -

marijuana organizations.

(2) The names, business addresses and medical

credentials of practitioners authorized to provide

certifications to patients to enable them to obtain and use

medical marijuana in this Commonwealth. All other

practitioner registration information shall be confidential

and exempt from public disclosure under the Right-to-Know

Law.

(3) Information relating to penalties or other

disciplinary actions taken against a medical marijuana

organization or practitioner by the department for violation

of this act.

(4) The names of the individuals retained by the

department to review applications submitted by a medical

marijuana organization seeking a permit.

Section 303. Lawful use of medical marijuana.

* * *

(b) Requirements.--The lawful use of medical marijuana is

subject to the following:

* * *

[(4) An individual may not act as a caregiver for more

than five patients.]

* * *

Section 405. Duration.

Receipt of medical marijuana by a patient or caregiver from a

dispensary may not exceed a [30-day] 90-day supply of individual

doses. During the last seven days of any 30-day period during

the term of the identification card, a patient may obtain and

possess a [30-day] 90-day supply for the subsequent 30-day

period. Additional [30-day] 90-day supplies may be provided in

20210HB1024PN1823 - 3 -

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 502. Caregivers.

* * *

(b) Criminal history.--A caregiver who has not been

previously approved by the department under this section shall

submit fingerprints for the purpose of obtaining criminal

history record checks, and the Pennsylvania State Police or its

authorized agent shall submit the fingerprints to the Federal

Bureau of Investigation for the purpose of verifying the

identity of the applicant and obtaining a current record of any

criminal arrests and convictions. Any criminal history record

information relating to a caregiver obtained under this section

by the department may be interpreted and used by the department

only to determine the applicant's character, fitness and

suitability to serve as a caregiver under this act. The criminal

history record information provided under this subsection may

not be subject to the limitations under 18 Pa.C.S. § 9121(b) (2)

(relating to general regulations). The department shall also

review the prescription drug monitoring program relating to the

caregiver. The department shall deny the application of a

caregiver who has been convicted of a criminal offense that

occurred within the past five years relating to the sale or

possession of drugs, narcotics or controlled substances. The

department may deny an application if the applicant has a

history of drug abuse or of diverting controlled substances or

illegal drugs.

Section 602. Permits.

(a) Application.--An application for a grower/processor or

20210HB1024PN1823 - 4 -

dispensary permit to grow, process or dispense medical marijuana

shall be in a form and manner prescribed by the department and

shall include:

* * *

(4) A criminal history record check. Medical marijuana

organizations applying for a permit shall submit fingerprints

of principals, financial backers, operators and employees to

the Pennsylvania State Police for the purpose of obtaining

criminal history record checks and the Pennsylvania State

Police or its authorized agent shall submit the fingerprints

to the Federal Bureau of Investigation for the purpose of

verifying the identity of the principals, financial backers,

operators and employees and obtaining a current record of any

criminal arrests and convictions. Any criminal history record

information relating to principals, financial backers,

operators and employees obtained under this section by the

department may be interpreted and used by the department only

to determine the principal's, financial backer's, operator's

and employee's character, fitness and suitability to serve as

a principal, financial backer, operator and employee under

this act. The criminal history record information provided

under this subsection may not be subject to the limitations

under 18 Pa.C.S. § 9121(b)(2) (relating to general

regulations). AFTER SUBMISSION OF REQUIRED DOCUMENTATION TO

THE DEPARTMENT, MEDICAL MARIJUANA ORGANIZATIONS MAY ALLOW

EMPLOYEES TO WORK IN A SUPERVISED CAPACITY UNTIL THE

DEPARTMENT FORMALLY APPROVES THE EMPLOYEE'S AFFILIATION WITH

THE MEDICAL MARIJUANA ORGANIZATION. ANY EMPLOYEE WHO THE

DEPARTMENT DETERMINES TO BE UNABLE TO MEET THE AFFILIATION

REQUIREMENTS UNDER SECTION 614 SHALL BE TERMINATED BY THE

20210HB1024PN1823 - 5 -

<--

MEDICAL MARIJUANA ORGANIZATION IMMEDIATELY. This paragraph

shall not apply to an owner of securities in a publicly

traded corporation or an owner of 5% or less in a privately

held business entity if the department determines that the

owner of the securities is not substantially involved in the

activities of the medical marijuana organization.

* * *

Section 609. Relocation.

(a) Authorization.--The department may approve an

application from a medical marijuana organization to relocate

within this Commonwealth or to add or delete activities or

facilities.

(b) Designations.--Notwithstanding the provisions of

subsection (a), a dispensary may interchange the designation of

a primary, secondary or tertiary location at any time, including

the period before a location becomes operational, by providing

written notice to the department at least 14 days before the

change in designation. A change in designation under this

subsection may not be subject to approval by the department.

Section 614. Convictions prohibited.

(A) PROHIBITIONS.--The following individuals may not hold

volunteer positions or positions with remuneration in or be

affiliated with a medical marijuana organization, including a

clinical registrant under Chapter 20, in any way if the

individual has been convicted of any felony criminal offense

related to the sale or possession of illegal drugs, narcotics or

controlled substances:

(1) Financial backers.

(2) Principals.

(3) Employees.

20210HB1024PN1823 - 6 -

<--

(B) EXCLUSION.--THIS SECTION SHALL NOT APPLY TO INDIVIDUALS

WHO HAVE BEEN CONVICTED OF A NONVIOLENT FELONY OFFENSE IF AT

LEAST 10 YEARS HAVE PASSED SINCE THE SATISFACTORY DISPOSITION OF

THE INDIVIDUAL'S MOST RECENT FELONY SENTENCE.

Section 3. Section 701 of the act is amended by adding a

subsection to read:

Section 701. Electronic tracking.

* * *

(c.1) Application programming interface.--The department and

or the department's contracted seed-to-sale vendor shall allow

two-way communication , AUTOMATION and application-programming

interface of a medical marijuana organization's ENTERPRISE

RESOURCE PLANNING, inventory, accounting and point-of-sale

software with the software of the department or the department's

contracted seed-to-sale vendor. The department or the

department's contracted seed-to-sale vendor shall provide for

the development and use of a seed-to-sale cannabis tracking

system, which shall include a secure application program

interface capable of accessing all data required to be

transmitted to the advisory board to ensure compliance with the

operational reporting requirements established under this act

and the regulations of the advisory board.

* * *

Section 4. Sections 702, 703(8), 704, 801(e) 801(B) AND (E),

802(a)(1), 2001.1(A), 2002(A) AND (B) and 2109(a) of the act are

amended to read:

Section 702. Grower/processors.

(a) Authorization.--Subject to subsection (b), a

grower/processor may do all of the following in accordance with

department regulations:

20210HB1024PN1823 - 7 -

<--

(1) Obtain seed and immature plant material from outside

this Commonwealth during at least one 30-day period per year

as designated by the department to [initially] grow medical

marijuana.

(2) Obtain seed and plant material from another

grower/processor within this Commonwealth to grow medical

marijuana.

(2.1) Obtain AND TRANSPORT BULK postharvest MEDICAL

MARIJUANA plant material from another grower/processor within

this Commonwealth. As used in this paragraph, the term

"postharvest plant material" includes all unfinished plant

and plant-derived material, whether fresh, dried, partially

dried, frozen or partially frozen, oil, concentrate or

similar byproducts derived OR PROCESSED from medical

marijuana OR MEDICAL MARIJUANA PLANTS . The department shall

establish a process to implement the provisions of this

paragraph within 60 days of the effective date of this

paragraph.

(3) Remediate MICROBIAL contamination to seeds, immature

medical marijuana plants, medical marijuana plants, medical

marijuana flower or AND medical marijuana products at any

time before final processing, after a failed test or in

preparing a medical marijuana product for independent

laboratory testing AFTER A FAILED TEST BY AN INDEPENDENT

LABORATORY .

(4) Release a medical marijuana product after

independent laboratory testing concludes the MICROBIAL

contamination to the medical marijuana product has been

remediated.

(5) Add pharmaceutical-grade or food-grade additives to

20210HB1024PN1823 - 8 -

<--

medical marijuana, including hemp or hemp-derived

ingredients. Hemp or hemp-derived ingredients under this

paragraph shall be obtained from an entity that has an

appropriate permit from the Department of Agriculture of the

Commonwealth.

(b) Limitations.--

(1) A grower/processor may only grow, store, harvest or

process medical marijuana in an indoor, enclosed, secure

facility which:

(i) includes electronic locking systems, electronic

surveillance and other features required by the

department; and

(ii) is located within this Commonwealth.

(2) [(Reserved).] For the purpose of paragraph (1), the

department shall permit video surveillance with video

recordings triggered via motion sensors. A grower/processor

that utilizes the video surveillance authorized under this

paragraph shall retain the video recordings for a period of

no less than 90 days.

(1) A grower/processor may use a pesticide that is

registered by the Department of Agriculture under the act of

March 1, 1974 (P.L.90, No.24), known as the Pennsylvania

Pesticide Control Act of 1973.

(2) Notwithstanding any provision of the Pennsylvania

Pesticide Control Act of 1973 or any other State law or

regulation, the Secretary of Agriculture shall establish

procedures and operate a periodic process under which

pesticides are reviewed, approved and registered for use in

the cultivation of medical marijuana.

20210HB1024PN1823 - 9 -

(3) The procedures established by the Secretary of

Agriculture under paragraph (2) shall be consistent with the

Pennsylvania Pesticide Control Act of 1973 and the Federal

Insecticide, Fungicide, and Rodenticide Act (61 Stat. 163, 7

U.S.C. § 136 et seq.)

(4) The Secretary of Agriculture may register pesticides

approved for use in the cultivation of medical marijuana by

other states or jurisdictions if the Secretary of Agriculture

determines that the pesticide registration and approval

requirements of another state or jurisdiction are

comprehensive, thorough and provide similar safeguards and

protections as those required under the Pennsylvania

Pesticide Control Act of 1973.

Section 703. Storage and transportation.

The department shall develop regulations relating to the

storage and transportation of medical marijuana among

grower/processors, testing laboratories and dispensaries which

ensure adequate security to guard against in-transit losses. The

tracking system developed by the department shall include all

transportation and storage of medical marijuana. The regulations

shall provide for the following:

* * *

(8) Requirements to utilize any electronic tracking

system required by the department, which shall allow for the

two-way communication , AUTOMATION and application-programming

interface between a medical marijuana organization's

ENTERPRISE RESOURCE PLANNING, inventory, accounting and

point-of-sale software and the software of the department or

the department's vendor.

* * *

20210HB1024PN1823 - 10 -

<--

Section 704. Laboratory.

(a) General testing.--A grower/processor shall contract with

[an independent laboratory] one or more independent laboratories

to test the medical marijuana produced by the grower/processor.

The department shall approve [the] a laboratory under this

subsection and require that the laboratory report testing

results in a manner as the department shall determine[,

including requiring a test at harvest and] of a test at final

processing. The possession by a laboratory of medical marijuana

shall be a lawful use.

(b) Stability testing.--A laboratory shall perform stability

testing to ensure the medical marijuana product's potency and

purity. A grower/processor shall retain a sample from each

harvest batch of medical marijuana and request that a sample be

identified and collected by a laboratory approved under

subsection (a) from a harvest batch to perform stability testing

under the following conditions:

(1) The harvest batch of medical marijuana is still in

inventory at a dispensary in this Commonwealth AS DETERMINED

BY THE SEED-TO-SALE SYSTEM .

(2) The stability testing is done at six-month intervals

for the duration of the expiration date period as listed on

the medical marijuana product AND ONCE WITHIN SIX MONTHS OF

THE EXPIRATION DATE .

Section 801. Dispensing to patients and caregivers.

* * *

(B) REQUIREMENTS.--A DISPENSARY SHALL HAVE A PHYSICIAN OR A

PHARMACIST [ONSITE] AVAILABLE, EITHER IN PERSON OR REMOTELY, TO

VERIFY PATIENT CERTIFICATIONS AND TO CONSULT WITH PATIENTS AND

CAREGIVERS AT ALL TIMES DURING THE HOURS THE DISPENSARY IS OPEN

20210HB1024PN1823 - 11 -

<--

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] VERIFY PATIENT

CERTIFICATIONS AND CONSULT WITH PATIENTS AND CAREGIVERS, EITHER

IN PERSON OR REMOTELY, 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 OR OTHERWISE TREAT

PATIENTS AT THE DISPENSARY.

* * *

(e) Supply.--When dispensing medical marijuana to a patient

or caregiver, the dispensary may not dispense an amount greater

than a [30-day] 90-day supply until the patient has exhausted

all but a seven-day supply provided pursuant to a previously

issued certification until additional certification is presented

under section 405.

* * *

Section 802. Facility requirements.

(a) General rule.--

(1) A dispensary may [only] dispense medical marijuana

in an indoor, enclosed, secure facility located within this

Commonwealth[,] or in accordance with a curbside delivery

protocol as determined by the department.

* * *

SECTION 2001.1. ACADEMIC CLINICAL RESEARCH CENTERS.

(A) GENERAL RULE.--AN ACADEMIC CLINICAL RESEARCH CENTER MUST

BE APPROVED AND CERTIFIED BY THE DEPARTMENT BEFORE THE ACADEMIC

20210HB1024PN1823 - 12 -

<--

CLINICAL RESEARCH CENTER MAY CONTRACT WITH A CLINICAL

REGISTRANT. AN ACADEMIC CLINICAL RESEARCH CENTER SHALL ONLY

CONTRACT WITH ONE CLINICAL REGISTRANT. THE ACCREDITED MEDICAL

SCHOOL THAT IS SEEKING APPROVAL AND CERTIFICATION FROM THE

DEPARTMENT AS AN ACADEMIC CLINICAL RESEARCH CENTER MUST PROVIDE

ALL INFORMATION REQUIRED BY THE DEPARTMENT, INCLUDING

INFORMATION FOR THE INDIVIDUAL WHO WILL BE THE PRIMARY CONTACT

FOR THE ACADEMIC CLINICAL RESEARCH CENTER DURING THE

DEPARTMENT'S REVIEW OF THE APPLICATION. THE ACCREDITED MEDICAL

SCHOOL MUST ALSO PROVIDE ALL INFORMATION REQUIRED BY THE

DEPARTMENT FOR ANY LICENSED ACUTE CARE HOSPITAL THAT THE

ACCREDITED MEDICAL SCHOOL WILL OPERATE OR PARTNER WITH DURING

THE TIME THAT IT MAY BE APPROVED AND CERTIFIED AS AN ACADEMIC

CLINICAL RESEARCH CENTER BY THE DEPARTMENT.

* * *

SECTION 2002. CLINICAL REGISTRANTS.

(A) APPROVAL.--THE DEPARTMENT MAY APPROVE UP TO [EIGHT] TEN

CLINICAL REGISTRANTS. EACH CLINICAL REGISTRANT MAY PROVIDE

MEDICAL MARIJUANA AT NOT MORE THAN SIX SEPARATE LOCATIONS. THE

TOTAL NUMBER OF LOCATIONS AUTHORIZED TO DISPENSE MEDICAL

MARIJUANA UNDER THIS SECTION SHALL NOT EXCEED [48] 60. THE

GROWER/PROCESSOR AND DISPENSARY PERMITS ISSUED TO CLINICAL

REGISTRANTS APPROVED UNDER THIS SECTION SHALL BE IN ADDITION TO

THE 25 GROWER/PROCESSOR AND 50 DISPENSARY PERMITS ISSUED BY THE

DEPARTMENT IN ACCORDANCE WITH SECTION 616(1) AND (2). THE

LIMITATIONS RELATING TO NUMBER AND LOCATION IN SECTIONS 616(1)

AND (2) AND 603(D) DO NOT APPLY. A CLINICAL REGISTRANT MAY NOT

HOLD MORE THAN ONE GROWER/PROCESSOR AND ONE DISPENSARY PERMIT.

ONCE THE DEPARTMENT APPROVES [THE] AN ENTITY AS A CLINICAL

REGISTRANT, THE ENTITY SHALL COMPLY WITH THIS CHAPTER. THE

20210HB1024PN1823 - 13 -

FOLLOWING SHALL APPLY:

(1) THE DEPARTMENT SHALL OPEN APPLICATIONS FOR

ADDITIONAL ACADEMIC CLINICAL RESEARCH CLINICS AND ISSUE

APPROVALS TO QUALIFIED ACADEMIC CLINICAL RESEARCH CLINICS

WITHIN 90 DAYS OF PASSAGE AND SHALL OPEN APPLICATIONS FOR

ADDITIONAL CLINICAL REGISTRANTS WITHIN 120 DAYS OF PASSAGE

AND ISSUE APPROVALS OR PERMITS TO QUALIFIED CLINICAL

REGISTRANTS WITHIN 180 DAYS OF PASSAGE. IF THE STATUTORY

MAXIMUM NUMBERS OF ACADEMIC CLINICAL RESEARCH CLINICS AND

CLINICAL REGISTRANTS ARE NOT APPROVED WITHIN 180 DAYS OF THE

PASSAGE, THE DEPARTMENT WILL REOPEN THE APPLICATION PROCESS

FOR ACADEMIC CLINICAL RESEARCH CLINICS AND CLINICAL

REGISTRANTS , IF AN ACADEMIC CLINICAL RESEARCH CENTER REQUESTS

IT TO DO SO.

(2) (RESERVED).

(B) REQUIREMENTS.--THE FOLLOWING SHALL APPLY TO CLINICAL

REGISTRANTS:

* * *

(4) WHEN THE DEPARTMENT ISSUES A PERMIT AS A

GROWER/PROCESSOR OR A DISPENSARY TO AN ENTITY SEEKING

APPROVAL AS A CLINICAL REGISTRANT, THE ISSUANCE SHALL NOT BE

CONSTRUED TO REDUCE THE NUMBER OF PERMITS FOR

GROWERS/PROCESSORS AND DISPENSARIES AUTHORIZED UNDER SECTION

616(1) AND (2).

(I) THE DEPARTMENT SHALL NOT APPROVE AN APPLICANT

FOR A GROWER/PROCESSOR LICENSE IF THE APPLICANT HAS

PREVIOUSLY HAD A CONTRACTUAL RELATIONSHIP WITH AN

ACADEMIC CLINICAL RESEARCH CENTER WHEREBY THE ACADEMIC

CLINICAL RESEARCH CENTER OR ITS AFFILIATE PROVIDED ADVICE

TO THE APPLICANT REGARDING, AMONG OTHER AREAS, PATIENT

20210HB1024PN1823 - 14 -

HEALTH AND SAFETY, MEDICAL APPLICATIONS AND DISPENSING

AND MANAGEMENT OF CONTROLLED SUBSTANCES AND THE APPLICANT

SUBSEQUENTLY SOLD OR ASSIGNED FOR PROFIT TO ANOTHER

ENTITY THEIR RESPONSIBILITY UNDER THE CONTRACTUAL

RELATIONSHIP.

(II) (RESERVED).

* * *

(7) THE CLINICAL REGISTRANT SHALL HAVE ALL OF THE SAME

RIGHTS AS A GROWER/PROCESSOR PERMITTEE AND MUST COMPLY WITH

ALL OTHER REQUIREMENTS, AND PROVIDED ALL RIGHTS OF OTHER

GROWER/PROCESSOR PERMITTEES, OF THIS ACT REGARDING GROWING,

PROCESSING AND DISPENSING MEDICAL MARIJUANA.

(8) A GROWER/PROCESSOR FACILITY OWNED BY A CLINICAL

REGISTRANT MAY SELL ITS MEDICAL MARIJUANA PRODUCTS ONLY TO

[THE CLINICAL REGISTRANT'S DISPENSARY FACILITIES AND THE] ALL

DISPENSARY FACILITIES [OF OTHER CLINICAL REGISTRANTS]. THE

FACILITY MAY SELL SEEDS, MEDICAL MARIJUANA PLANTS AND MEDICAL

MARIJUANA PRODUCTS TO, OR EXCHANGE SEEDS, MEDICAL MARIJUANA

PLANTS AND MEDICAL MARIJUANA PRODUCTS WITH, ANY OTHER

GROWER/PROCESSOR FACILITY HOLDING A PERMIT UNDER CHAPTER 6 OR

THIS CHAPTER.

* * *

Section 2109. Applicability.

[(a) Dispensaries.--The provisions of this act with respect

to dispensaries shall not apply beginning 1,095 days from the

effective date of an amendment to the Controlled Substances Act

(Public Law 91-513, 84 Stat. 1236) removing marijuana from

Schedule I of the Controlled Substances Act.]

* * *

Section 5. This act shall take effect in 60 days.

20210HB1024PN1823 - 15 -