Regular Session 2021-2022 House Bill 2050 P.N. 2333

PRINTER'S NO. 2333

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2050

Session of

2021

INTRODUCED BY WHEATLEY, FRANKEL, HILL-EVANS, ZABEL, McNEILL,

N. NELSON, MALAGARI, SANCHEZ, HOHENSTEIN, BURGOS, SIMS,

HARRIS, DALEY, STURLA, GUZMAN, A. DAVIS, KINSEY, D. WILLIAMS,

FITZGERALD, GUENST, KINKEAD AND SHUSTERMAN, OCTOBER 27, 2021

REFERRED TO COMMITTEE ON JUDICIARY, OCTOBER 27, 2021

AN ACT

Providing for the regulation of cannabis and cannabis products

for personal use and for exemptions related to the personal

use of cannabis and cannabis products; establishing a

cannabis regulatory control board and providing for its

powers, duties and restrictions; conferring powers and

imposing duties on the Department of Revenue, the Department

of Agriculture, the Department of Health and the Office of

Attorney General; regulating the cultivation, processing,

distribution, testing, transporting, sale and offering for

sale of cannabis and cannabis products; providing for

licensing and permitting of cannabis entities, cannabis

microbusinesses, cannabis testing laboratories and other

persons engaged in a regulated activity, for certification or

registration of essential employees, officers, principals and

other persons and for social and economic equity;

establishing the Office of Social and Economic Equity and the

Cannabis Business Development Fund; providing for diverse

business development and a grant and loan program;

establishing the Cannabis Revenue Fund; providing for

Communities Reimagined and Reinvestment Program, for

Community Reimagined and Reinvestment Account and for

Substance Abuse Prevention, Treatment and Education Fund;

imposing fees, taxes and assessments on cannabis entity

licensees, permittees and persons engaged in a regulated

activity; and providing for enforcement, for prohibited acts,

for penalties, for sanctions and immunities, for certain

expungements, for transfer of functions of the Department of

Health and for medical marijuana.

TABLE OF CONTENTS

Chapter 1. Preliminary Provisions

Section 101. Short title.

Section 102. Legislative findings and intent.

Section 103. Definitions.

Chapter 2. Exemptions Related to Personal Use of Cannabis and

Cannabis Products

Section 201. Personal use of cannabis and cannabis products

and exemptions.

Chapter 3. Cannabis Regulatory Control Board

Section 301. Cannabis Regulatory Control Board established.

Section 302. Qualifications and restrictions.

Section 303. Code of conduct.

Section 304. Powers and duties of board.

Section 305. Regulatory authority of board.

Section 306. Additional regulatory authority.

Section 307. Temporary regulations.

Section 308. Cannabis entity application appeals from board.

Section 309. Hearing process.

Section 310. Board minutes and records.

Section 311. Selection criteria.

Section 312. Collection of fees and fines.

Section 313. Cannabis entity license fees.

Chapter 4. Social and Economic Equity

Section 401. Office of Social and Economic Equity.

Section 402. Cannabis Business Development Fund.

Section 403. Social and Economic Equity Loan and Grant Program.

Section 404. Fee waivers.

Section 405. Transfer of cannabis entity license.

Section 406. Required reports.

Chapter 5. Regulation of Cannabis

Section 501. Regulation of cannabis.

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Section 502. Order of initial issuance of cannabis entity

licenses.

Section 503. Expedited approval of cannabis entity license.

Section 504. Authorization for secondary site.

Section 505. Cannabis entity license application.

Section 506. Application requirements.

Section 507. Additional license requirements.

Section 508. Change in ownership or control of cannabis entity

licensee.

Section 509. Licensing of principals.

Section 510. Registration of essential employees.

Section 511. Divestiture of disqualifying person.

Section 512. Financial fitness requirements.

Section 513. Alternative licensing standards.

Section 514. Bond for issuance of cannabis entity license.

Section 515. Required content of license, permit or other

authorization.

Section 516. Renewals.

Section 517. Home cultivation.

Chapter 6. License, Permit or Other Authorization

Section 601. Additional requirements for issuance.

Section 602. Conditional cannabis entity license.

Section 603. Licensure of cannabis microbusinesses.

Section 604. Cannabis cultivator license.

Section 605. Cannabis cultivator grow canopy.

Section 606. Cannabis processor license.

Section 607. Cannabis retailer license.

Section 608. Inventory verification system; cannabis retailer

licensee.

Section 609. Storage requirements.

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Section 610. Cannabis transporter license.

Section 611. Cannabis handler certificate.

Section 612. Cannabis responsible training required.

Section 613. Provisions governing cultivation and processing of

cannabis and cannabis products.

Section 614. Provisions governing cannabis retailer licensees.

Section 615. Provisions governing cannabis transporter

licensees.

Section 616. Need for additional licenses.

Chapter 7. Packaging, Labeling, Testing and Special Use Permits

Section 701. Packaging and labeling.

Section 702. Laboratory testing.

Section 703. Cannabis laboratory testing permit.

Section 704. Special use permits.

Chapter 8. Recordkeeping, Tracking, Inspection and Advertising

Section 801. Recordkeeping and tracking.

Section 802. Inspections.

Section 803. Advertising.

Chapter 9. Administration and Enforcement

Section 901. Authority and duties of department and Department

of Agriculture.

Section 902. Liens and suits for taxes.

Section 903. No eminent domain authority.

Section 904. Cannabis establishment zoning and land-use

appeals.

Section 905. Labor hiring preferences.

Section 906. Financial and employment interests.

Section 907. Additional restrictions.

Section 908. Investigation and enforcement.

Section 909. Additional authority and Office of Enforcement

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Counsel.

Section 910. Prohibited acts and penalties.

Section 911. Administrative sanctions.

Section 912. General immunities and presumptions.

Section 913. Adoption of State standards and requirements.

Chapter 10. Fees and Taxes

Section 1001. Cannabis cultivator and processor privilege tax.

Section 1002. Cannabis excise tax.

Section 1003. Registration required.

Section 1004. Unlawful disclosure and penalty.

Section 1005. Violation of tax requirements and administrative

penalty.

Chapter 11. Revenue

Section 1101. Cannabis Revenue Fund.

Section 1102. Communities Reimagined and Reinvestment

Restricted Account.

Section 1103. Substance Use Disorder Prevention, Treatment and

Education Account.

Section 1104. Small business recovery grants.

Chapter 12. Municipalities

Section 1201. Provisions specific to municipalities.

Section 1202. Local opt-out and municipal control and

preemption.

Section 1203. Preemptions.

Section 1204. Local cannabis taxation.

Chapter 13. Protections

Section 1301. Protections for personal use of cannabis.

Section 1302. Lawful actions.

Section 1303. Access to criminal history information through

Pennsylvania State Police.

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Section 1304. Cannabis clean slate.

Chapter 20. Miscellaneous Provisions

Section 2001. Transfer of powers and duties.

Section 2002. Repeals.

Section 2003. Effective date.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

CHAPTER 1

PRELIMINARY PROVISIONS

Section 101. Short title.

This act shall be known and may be cited as the Cannabis

Regulatory Control Act.

Section 102. Legislative findings and intent.

(a) Findings.--The General Assembly finds and declares as

follows:

(1) The criminalization of marijuana has not been

effective in reducing arrests, prosecutions and convictions

for simple marijuana offenses but has, instead, resulted in

collateral social and economic damage, including mass

incarcerations, which serves to inhibit the ability of some

otherwise law-abiding citizens of this Commonwealth to access

employment, housing, business ownership, traditional banking

systems and capital, quality health care and other vital

services and, juxtaposed with the "war on drugs," has

disproportionately impacted the long-term social and economic

well-being of communities and people of color.

(2) The criminalization of marijuana served as one, if

not the primary, catalyst that triggered the growth of the

illicit marijuana market, which continues to flourish,

threaten public health and safety and obstruct legislative

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and societal efforts to deter possession and use by children.

(3) The implementation of the Commonwealth's Medical

Marijuana Program reveals that additional efforts are needed

to manage barriers to participation in this Commonwealth's

regulated cannabis industry. As of May 15, 2020, 22 marijuana

grower/processor permits and 80 marijuana dispensary permits

had been issued by the Department of Health authorizing the

holders to grow, process or sell medical marijuana. In

transitioning to a regulated cannabis industry for adult

cannabis consumers, the General Assembly seeks to ensure that

opportunities for entrepreneurship and jobs exist so that

businesses and individuals within the cannabis industry

reflect the diverse population of this Commonwealth. In the

interest of inclusion and equity, a regulated cannabis

industry should be equitable and accessible to individuals

and communities adversely impacted by enforcement of

marijuana laws in this Commonwealth.

(4) The regulation of personal use cannabis authorized

under this act is intended to provide broad economic

opportunities to the residents of this Commonwealth and shall

be implemented in a manner as to prevent possible

monopolization by establishing reasonable restrictions on the

control of multiple cannabis entity licenses in this

Commonwealth.

(5) Participation in the commercial cannabis industry

under this act by a licensee, permittee or other person

authorized to engage in a regulated activity shall be deemed

a privilege, conditioned upon the proper and continued

qualification of the licensee, permittee or other person and

upon the discharge of the affirmative responsibility of each

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licensee, permittee or other person to provide the regulatory

and investigatory authorities of the Commonwealth with

assistance and information necessary to assure that the

policies declared by this act are achieved.

(6) Strictly monitored and enforced control over all

aspects of the regulation of cannabis authorized under this

act shall be provided through regulation, licensing and

appropriate enforcement actions of specified locations,

persons, associations, practices, activities, licensees,

permittees and other persons authorized to engage in a

regulated activity as under this act.

(7) The public interest of the residents of this

Commonwealth and the social effects of the personal use of

cannabis shall be taken into consideration in any decision or

order made by the Cannabis Regulatory Control Board under

this act.

(8) The Commonwealth has a compelling State interest in

protecting the integrity of a regulated cannabis industry by

preventing corruption and the appearance of corruption, which

may arise from the regulation of cannabis for personal use in

this Commonwealth.

(9) It is therefore necessary to maintain the integrity

of the regulatory control and legislative oversight over the

operation of a regulated cannabis industry, to ensure the

bipartisan administration of this act and avoid actions which

may erode public confidence in the regulatory and legislative

process and, thereby, the system of representative

government.

(10) In the interest of allowing law enforcement to

focus on violent and property crimes, generating revenue for

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social justice programs, small businesses, substance use

disorder prevention and treatment, freeing public resources

to invest in communities and other public purposes and

individual freedom, the General Assembly further finds and

declares that the personal use of cannabis should be legal

for individuals 21 years of age or older and should be taxed

in a manner designed to enhance the conditions of daily

living for marginalized individuals in this Commonwealth

while, simultaneously, effectuating tax revenues for the

Commonwealth and the Commonwealth's political subdivisions.

(b) Objectives.--The General Assembly declares that

paramount among the objectives of this act, to which all other

objectives and purposes are secondary, is to keep marijuana out

of the hands of children and to keep profits out of the hands of

criminals, including organized criminal enterprises. Other

principal objectives of this act are to:

(1) Reduce the burden on law enforcement and the

criminal justice system associated with simple marijuana

possession offenses.

(2) Prevent children from entering the criminal justice

system due to convictions for simple marijuana offenses.

(3) Protect public health and safety by strengthening,

where appropriate, laws and enforcement measures which deter

and punish more serious marijuana offenses, specifically,

trafficking controlled substances to children, selling

outside of the regulatory framework authorized under this act

and operating a motor vehicle while under the influence of

marijuana.

(4) Ensure that the residents of this Commonwealth are

well-informed through sustained and appropriate public health

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campaigns and ensure that the risks are understood,

especially for children.

(5) Establish and enforce a strict system of

cultivation, processing, distribution, testing and sales of

cannabis and cannabis products, emphasizing public health and

safety, with regulation of quality and safety.

(6) Promote ownership and participation by individuals

who reside or have resided in areas of high poverty, high

unemployment and high enforcement of cannabis-related laws to

foster the development and growth of an equitable cannabis

industry in this Commonwealth.

(7) Ensure that the provisions of this act are not

construed to diminish the Commonwealth's obligation and

commitment to individuals suffering from serious medical

conditions as provided under the Medical Marijuana Act, nor

alter the privileges and protections granted to individuals

suffering from serious medical conditions as provided under

the Medical Marijuana Act.

(1) The General Assembly finds and declares that the

intent of this act is to:

(i) Create a new industry in this Commonwealth

through the regulation, control and taxation of cannabis

for personal use by adults 21 years of age or older,

thereby:

(A) Generating significant new tax revenue.

(B) Requiring certain entities to make

substantial financial investments in people and

communities traditionally and adversely impacted by

the criminalization of marijuana to help address the

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social and economic consequences of marijuana

criminalization.

(D) Eliminating or reducing illicit cannabis

markets.

(E) Ending the racially disparate impact of

existing cannabis laws.

(ii) Regulate the personal use of cannabis and

medical marijuana under the regulatory supervision of an

independent board, to be known as the Cannabis Regulatory

Control Board, in order to facilitate the prompt

implementation of this act.

(2) The regulation of cannabis, as authorized under this

act, is intended to:

(i) Promote economic development by providing new

business and employment opportunities across this

Commonwealth, including opportunities for diverse

businesses and small disadvantaged businesses, veteran-

owned and disabled-veteran-owned small businesses,

farmers and farmer-owned small businesses and other

persons involved in this Commonwealth's agriculture

industry.

(ii) Provide business ownership and employment

opportunities for individuals who have been adversely

impacted by the enforcement of marijuana laws.

(iii) Provide funding mechanisms for the Communities

Reimagined and Reinvestment Restricted Account programs,

small businesses and drug and alcohol programs.

(3) In the interest of remedying the harms resulting

from the disproportionate enforcement of cannabis-related

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laws, the General Assembly further finds and declares that a

social and economic equity program is an essential component

of a regulated cannabis industry and should be designed to

offer, among other things, financial assistance and license

application benefits to individuals who have traditionally

and directly been adversely impacted by the criminalization

of cannabis and who are interested in participating in a

regulated activity under this act.

(4) Nothing in this act is intended to limit the

authority of any municipality or employer to:

(i) Enact and enforce policies pertaining to

cannabis in the workplace.

(ii) Authorize driving while under the influence of

cannabis.

(iii) Allow an individual to engage in conduct which

would endanger another individual.

(iv) Authorize the smoking or vaping of cannabis in

a public place or location where smoking tobacco is

prohibited.

(v) Require an individual to engage in conduct which

violates Federal law, exempt any individual from any

requirements of Federal law or pose any obstacle to the

Federal enforcement of Federal law.

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:

"Advertise." To engage in promotional activities, including,

but not limited to, newspaper, radio, Internet and electronic

media and television advertising, the distribution of fliers and

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circulars and the display of window and interior signs.

"Affiliate" or "affiliated." A person that, directly or

indirectly, through one or more intermediaries, controls, is

controlled by or is under common control with a specified

person, including a person that is an affiliate of or a person

that is affiliated with a specified person.

"Applicant." The following apply:

(1) An individual who is a citizen of the United States

or an individual lawfully admitted for permanent residency in

the United States, who is 21 years of age or older and who is

applying for a license, permit or other authorization to

engage in a regulated activity under this act.

(2) In the case of an applicant that is a person other

than an individual, the affiliated persons whose

qualifications may be subject to review and approval by the

board as a precondition to authorizing the person to engage

in a regulated activity.

"Authority." An authority created by the Commonwealth to

purchase State cannabis receipts under section 304.

"Background investigation." A security, criminal, financial,

credit and suitability investigation of an applicant. The term

shall include an investigation into the status of taxes owed to

the United States, the Commonwealth and any political

subdivision of the Commonwealth.

"Batch number." The unique, sequential alphanumeric

identifier assigned to each batch of cannabis or cannabis

products, including each cultivation and production batch, by a

cannabis entity licensee for the purposes of production

tracking, product labeling and product recalls.

"Board." The Cannabis Regulatory Control Board established

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under section 301.

"Bureau." The Bureau of Cannabis Investigations and

Enforcement established under section 908.

"Cannabinoid." Any of several compounds produced by cannabis

plants that have medical and psychotropic effects.

"Cannabinoid profile." The amounts, expressed as the dry-

weight percentages, of delta-nine-tetrahydrocannabinol,

cannabidiol, tetrahydrocannabinolic acid and cannabidiolic acid

of cannabis or cannabis products.

"Cannabis." The term:

(1) Includes marijuana, hashish and other substances

that include any parts of the plant cannabis sativa and

derivatives or subspecies, including cannabis indica, of all

strains of cannabis, including growing the seeds, extracting

the resin from any part of the plant and producing any

compound, manufacture, salt, derivative, mixture or

preparation of the plant, seeds or resin, including THC, with

a THC concentration greater than 0.3% on a dry weight basis,

and all other naturally produced cannabinol derivatives,

whether produced directly or indirectly by extraction and any

concentrate or cannabis product. The term shall include

industrial hemp cultivated in this Commonwealth.

(2) Does not include:

(i) The mature stalks of the plant, fiber produced

from the stalks, oil or cake made from the seeds of the

plant and any other compound, manufacture, salt,

derivative, mixture or preparation of the mature stalks,

except the resin extracted from mature stalks, fiber, oil

or cake or the sterilized seed of the plant which is

incapable of germination.

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(ii) The weight of any other ingredient combined

with cannabis to prepare topical or oral administrations,

food, drink or other products.

(iii) Medical marijuana dispensed to a certified

patient or caregiver as those terms are defined in

section 103 of the Medical Marijuana Act.

(iv) Marijuana as defined in section 2 of the act of

April 14, 1972 (P.L.233, No.64), known as The Controlled

Substance, Drug, Device and Cosmetic Act, or hashish as

applied to a criminal offense related to marijuana or

hashish under section 13 of The Controlled Substance,

Drug, Device and Cosmetic Act.

(v) Marijuana or hashish as applied to any criminal

offense or civil violation specified in the applicable

provisions of 18 Pa.C.S. (relating to crimes and

offenses).

"Cannabis concentrate." A product, including a cannabis

extract or resin, derived from cannabis that is produced by

using a solvent or nonsolvent product to extract cannabinoids,

including THC, from the cannabis plant by the following means:

(1) the use of propylene glycol, glycerin, butter, olive

oil or other typical cooking fats, water, ice or dry ice;

(2) a chemical extraction process using a hydrocarbon-

based solvent, including butane, hexane or propane;

(3) a chemical extraction process using the hydrocarbon-

based solvent carbon dioxide if the process uses high heat or

pressure;

(4) a chemical extraction process using ethanol or

isopropanol;

(5) mechanical separation; or

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(6) any other process identified and approved by the

board by regulation. The use of any other solvent shall be

expressly prohibited unless and until the solvent or

nonsolvent product is approved for use by regulation of the

board.

"Cannabis consumer." An individual 21 years of age or older

who purchases, acquires, owns, holds or uses cannabis or

cannabis products for personal consumption.

"Cannabis cultivator" or "cannabis cultivator licensee." A

person, including a cannabis microbusiness, licensed by the

board to grow, produce or otherwise cultivate cannabis in this

Commonwealth and to sell cannabis to other cannabis cultivators,

cannabis processors, cannabis microbusinesses or cannabis

retailers, but not to cannabis consumers.

"Cannabis entity" or "cannabis entity licensee." The term

includes:

(1) A cannabis cultivator.

(2) A cannabis processor.

(3) A cannabis microbusiness.

(4) A cannabis retailer.

(5) A cannabis transporter.

"Cannabis entity representative." The term includes an

owner, director, officer, manager, essential employee, agent or

other representative of a cannabis entity licensee, to the

extent that the individual acts in a representative capacity.

"Cannabis establishment." The physical location specified in

an application for a cannabis entity license which is owned or

in possession of the applicant or cannabis entity licensee and

within which the applicant or licensee is seeking or has been

granted authorization to cultivate, process, manufacture,

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distribute, store, transport, sell or offer for sale cannabis or

cannabis products as provided under this act and regulations of

the board. The term includes all public and private enclosed

areas of the cannabis establishment, offices, kitchens,

restrooms, storage rooms and all enclosed, locked facilities or

areas outside the cannabis establishment which the board has

specifically approved for the cultivation, processing, storage,

transportation, sale or offering for sale of cannabis or

cannabis products. For a location that the board has

specifically licensed for the cultivation of cannabis outside a

building, the term shall include the entire lot or parcel that

the cannabis cultivator owns, leases or has a right to occupy.

The term includes a secondary site under section 504.

"Cannabis extract." A material, preparation, mixture,

compound or other substance that contains more than 3% by weight

of delta-9 tetrahydrocannabinol or any of its isomer, delta-8

dibenzopyran numbering system or delta-1 tetrahydrocannabinol or

its isomer, delta 1 (6) monoterpene numbering system, including

cannabis concentrates or resins, whether crude or purified,

produced from cannabis.

"Cannabis flower." The flower of the plant genus Cannabis

that has been harvested, dried and cured prior to processing

whereby the plant material is transformed into a concentrate,

including, but not limited to, concentrated cannabis, or an

edible or topical product containing cannabis or concentrated

cannabis and other ingredients. The term does not include leaves

or stems.

"Cannabis handler." A person employed by a cannabis entity

licensee who is not an essential employee but who is required to

obtain a cannabis handler certificate from the board to

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participate in the activities of employment specified in section

611.

"Cannabis handler certificate." A certificate issued by the

board under section 611.

"Cannabis leaves" or "cannabis trim." All parts of the plant

of the genus Cannabis other than cannabis flower that have been

harvested, dried and cured prior to further processing.

"Cannabis microbusiness" or "cannabis microbusiness

licensee." A person licensed by the board to cultivate, dry,

cure, process or package cannabis or cannabis products or to

sell or offer for sale cannabis or cannabis products to cannabis

consumers and perform other necessary activities as provided

under this act and regulations of the board to make cannabis and

cannabis products available for sale by a cannabis retailer

licensee or another cannabis microbusiness licensee or for use

by a cannabis processor licensee.

"Cannabis paraphernalia." Notwithstanding section 2 of The

Controlled Substance, Drug, Device and Cosmetic Act, the term

shall include any device, equipment, products or materials of

any kind which are used, intended for use or designed for use in

planting, propagating, cultivating, growing, harvesting,

composting, compounding, converting, producing, processing,

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

vaporizing, or containing cannabis, or for ingesting, inhaling

or otherwise introducing cannabis or a cannabis product into the

human body. The term shall not be construed to mean or include

"drug paraphernalia" as defined in section 2 of The Controlled

Substance, Drug, Device or Cosmetic Act, which is used or

intended for use to commit a violation of The Controlled

Substance, Drug, Device and Cosmetic Act or of any applicable

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provision of 18 Pa.C.S. (relating to crimes and offenses).

"Cannabis plant." A plant that is not an immature cannabis

plant.

"Cannabis plant canopy." The area of a cannabis

establishment operated by a cannabis cultivator licensee that is

dedicated to live cannabis plant cultivation, including

maintaining mature cannabis plants, propagating cannabis plants

from seed to plant tissue or cloning and maintaining a

vegetative or flowering area or the bench area or space used to

cultivate cannabis in the flowering stage. The term does not

include areas of a licensed cannabis establishment used for

storage of fertilizers, pesticides, herbicides or other

products, tools or equipment used in the cultivation of

cannabis, quarantine areas, office space, walkways, work areas

or similar areas.

"Cannabis plant monitoring system" or "plant monitoring

system." An electronic data collection system maintained by a

licensed cannabis cultivator, cannabis processor and cannabis

microbusiness engaged in the cultivation or processing of

cannabis and cannabis products for the purposes of documenting

each cannabis plant and monitoring plant development throughout

the life cycle of a cannabis plant cultivated for the intended

use by cannabis consumers, from seed planting or cloning to

final packaging, and to document testing. The cannabis plant

monitoring system shall be available to the board, the

department, the Department of Agriculture and the Pennsylvania

State Police.

"Cannabis processor" or "cannabis processor licensee." A

person, including a cannabis microbusiness licensee, licensed by

the board to extract constituent chemicals or compounds from

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cannabis to produce cannabis concentrate or to incorporate

cannabis or cannabis concentrate into a product formulation to

produce a cannabis product.

"Cannabis product" or "cannabis infused product." A product

that has been processed and contains cannabis or a cannabis

concentrate, including concentrated forms of cannabis and

products composed of cannabis and other ingredients that are

intended for human consumption or use, including edible

products, beverages, topical products, ointments, oils and

tinctures.

"Cannabis resin." A cannabis concentrate extracted from a

cannabis plant and any compound, manufacture, salt, derivative,

mixture or preparation of resin processed and used as provided

under this act. The term shall not include hashish as applied to

any offense under The Controlled Substance, Drug, Device and

Cosmetic Act or a civil violation described under 18 Pa.C.S.

"Cannabis retail store." The cannabis establishment of a

cannabis retailer licensee approved by the board for the sale

and offering for sale of cannabis and cannabis products to

cannabis consumers.

"Cannabis retailer" or "cannabis retailer licensee." A

person, including a cannabis microbusiness, licensed by the

board to purchase cannabis or cannabis products from a cannabis

cultivator or cannabis processor and sell the cannabis or

cannabis product to cannabis consumers from a cannabis retail

store.

"Cannabis testing laboratory" or "laboratory." An

independent, third-party entity issued a permit by the board to

conduct sampling and analyses of cannabis and cannabis products,

including the employees, specialized apparatus, equipment and

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instruments necessary to analyze cannabis and cannabis products

to ensure compliance with this act, regulations of the board and

applicable health and safety standards established by the board.

"Cannabis transporter." A person licensed by the board to

possess cannabis and cannabis products for the sole purpose of

transporting, temporary storage and distribution of cannabis,

cannabis products and cannabis paraphernalia, to cannabis

entities, but not to cannabis consumers. The term shall include

a person licensed as a cannabis cultivator, cannabis processor,

cannabis retailer or cannabis microbusiness.

"Clone." A clipping from a cannabis plant that can be rooted

and grown.

"Commonwealth agency." A department, board, commission or

any other agency or office of the Commonwealth under the

jurisdiction of the Governor.

"Conditional license." A license issued by the board under

section 602.

"Consumption." The act of ingesting, inhaling or otherwise

introducing cannabis or a cannabis product into the human body.

"Cultivation." The growing, cloning, harvesting, drying,

curing, grading and trimming of cannabis plants for sale to

cannabis cultivators, cannabis processors, cannabis

microbusinesses or cannabis retailers.

"Cultivation batch." A collection of cannabis or cannabis

plants from the same seed or plant stock that are cultivated and

harvested together and receive an identical propagation and

cultivation treatment, including, but not limited to, growing

media, ambient conditions, watering and light regimes and

agricultural or hydroponic inputs. Clones that come from the

same plant are one batch.

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"Department." The Department of Revenue of the Commonwealth.

"Designated opportunity zone" or "opportunity zone." A

census tract or comparable geographic area in existence on or

before the effective date of this act that:

(1) Meets at least one of the following criteria:

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

according to the latest Federal decennial census;

(ii) 75% or more of the children in the area

participate in the Federal free lunch program according

to statistics reported by the Department of Education;

(iii) at least 20% of the households in the area

receive assistance under the Supplemental Nutrition

Assistance Program; or

(iv) the area has an average unemployment rate, as

determined by the Department of Labor and Industry, that

is more than 120% of the national unemployment average,

as calculated by the United States Department of Labor,

for a period of at least two consecutive calendar years

preceding the date of the application.

(2) Has high rates of arrest, conviction and

incarceration related to the sale, possession, use,

cultivation, delivery or transport of cannabis.

"Disadvantaged farmer-owned small business." A small

business as defined in 62 Pa.C.S. § 2102 (relating to

definitions), as approved by the board in consultation with the

Department of Agriculture, that:

(1) Is a farm engaged in agricultural production,

including the cultivation of crops or horticulture products,

the production of food and fiber or the raising of livestock

or aquaculture and has been in operation for no less than two

20210HB2050PN2333 - 22 -

seasons in the past five years and the owner of which has

been a resident of this Commonwealth for at least two years.

(2) Is any other small business which is an agricultural

enterprise actively engaged in agricultural production for no

less than two seasons in the past five years and the owner of

which has been a resident of this Commonwealth for at least

two years.

"Dispensary." As defined in section 103 of the Medical

Marijuana Act.

"Electronic cannabis smoking device." An electronic device

that delivers a cannabis or a cannabis product through

vaporization and inhalation. The term shall not include a device

designed to inhale nicotine or an "electronic cigarette" as

defined in 18 Pa.C.S. § 6305(k) (relating to sale of tobacco

products).

"Electronically" or "electronic notification." A notification

sent by the board to an applicant, cannabis entity licensee, an

employee or agent of an applicant or cannabis entity licensee or

other person or which is sent by an applicant, cannabis entity

licensee, an employee or agent of an applicant or cannabis

entity licensee or other person to the board which is:

(1) Transmitted by email, facsimile, text message or by

any other similar electronic means of communications approved

by the board.

(2) Transmitted to the email address or telephone number

at or through which the board, applicant or cannabis entity

licensee has authorized the receipt of electronic

notifications.

(3) Provides evidence of transmission and receipt.

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

20210HB2050PN2333 - 23 -

building, or other enclosed area used to cultivate, process,

store or distribute cannabis and cannabis products, which is

equipped with locks or other security devices and which is

accessible only by the board, the bureau, the department, the

Department of Agriculture or designated employees of the board,

the bureau, the department and the Department of Agriculture and

by agents and employees of a cannabis entity licensee or other

authorized persons acting as provided under this act.

"Essential employee." The term includes, but may not be

limited to, an individual employed by a cannabis entity

licensee, permittee or other person authorized to engage in a

regulated activity under this act, as determined by the board to

be an officer, director, manager or supervisor or an individual

otherwise empowered to make discretionary decisions related to

the operations and conduct of a cannabis establishment and whose

duties are essential to the effective and continual operation of

a cannabis establishment as provided under this act and

regulations of the board.

"Ex parte communication." An off-the-record communication

engaged in or received by a member or hearing officer of the

board regarding the merits of or any fact in issue relating to a

pending matter before the board or hearing officer or which may

reasonably be expected to come before the board or hearing

officer in a contested on-the-record proceeding. The term does

not include off-the-record communications by or between a member

or hearing officer of the board, the Department of Revenue, the

Office of Attorney General or other law enforcement official

prior to the beginning of the proceeding solely for the purpose

of seeking clarification or correction to evidentiary materials

intended for use in the proceedings or communications between

20210HB2050PN2333 - 24 -

the board or a member of the board and the office of chief

counsel.

"Expedited approval cannabis entity license." A cannabis

entity license issued by the board under section 503 which

permits a medical marijuana organization that holds a valid

dispensary permit or grower/processor permit as provided under

the Medical Marijuana Act on the effective date of this section

to begin cultivating, processing, packaging, distributing,

transporting, selling or offering for sale cannabis and cannabis

products to cannabis entity licensees upon approval of the

application by the Cannabis Regulatory Control Board.

"Expedited approval cannabis entity license at a secondary

site." A cannabis entity license issued by the board under

section 504 which permits a medical marijuana organization that

holds a valid permit as provided under the Medical Marijuana Act

on the effective date of this section to begin cultivating,

processing, packaging, distributing, transporting, selling or

offering for sale cannabis and cannabis products to cannabis

entity licensees or, in the case of a dispensary, to begin

selling or offering for sale cannabis and cannabis products to

cannabis consumers at a location or site that is different from

the physical location of the medical marijuana organization's

existing medical marijuana dispensary facility location under

section 504.

"Grower/processor." As defined in section 103 of the Medical

Marijuana Act.

"Hashish." The resin extracted from any part of the plant

Genus Cannabis L. and any compound, manufacture, salt,

derivative, mixture or preparation of the resin.

"Hemp." The plant of the genus Cannabis or any part of the

20210HB2050PN2333 - 25 -

plant, whether growing or not, with a delta-9-

tetrahydrocannabinol concentration that does not exceed 0.3% on

a dry weight basis or any part of the plant, or per volume or

weight of cannabis product, or the combined percent of delta-9-

tetrahydrocannabinol and tetrahydrocannabinolic acid in any part

of the plant, regardless of moisture content.

"Home cultivation." The cultivation and processing of

cannabis or cannabis products by an individual who holds a valid

home cultivation certificate and a valid identification card

issued to the individual under section 501 of the Medical

Marijuana Act.

"Home cultivation certificate." A certificate issued to an

individual to cultivate and process cannabis or a cannabis

product under section 517.

"Immature cannabis plant." A cannabis plant that is not in

the cannabis flower stage.

"Label." A display of written, printed or graphic matter

affixed to or appearing upon the immediate package or container

holding cannabis or a cannabis product.

"Labeling." All labels and other written, printed or graphic

matter:

(1) That is affixed to or appears upon cannabis or

cannabis products or on any packages, containers or wrappings

of cannabis or cannabis products.

(2) Accompanies cannabis or cannabis products in

commerce, such as packaging, product inserts and other

promotional materials.

"License." A written authorization issued by the board

permitting a person to engage in a specific regulated activity

authorized under this act. The term includes a conditional

20210HB2050PN2333 - 26 -

license.

"Licensed representative." The term includes an owner,

director, officer, manager, employee, agent or other

representative of a cannabis entity licensee, to the extent that

the person acts in a representative capacity.

"Licensee." A holder of a cannabis entity license under this

act, including a holder of an expedited approval cannabis entity

license and a holder of an expedited approval cannabis entity

license at a secondary site.

"Limited access area." An indoor or outdoor area on the

premises of a cannabis establishment where cannabis and cannabis

products or byproducts are cultivated, stored, weighed,

packaged, processed or disposed of under the control of the

cannabis entity licensee, with access limited only to employees

or other persons designated by the cannabis entity licensee or

employees of a cannabis testing laboratory or other persons as

designated by the holder of a cannabis entity license or a

testing laboratory permit.

"Local government entity." A municipality.

"Lot." A definite quantity of cannabis or a cannabis product

identified by a lot number, every portion or package of which is

uniform within recognized tolerances for the factors that appear

in the labeling.

"Lot number." The number issued by the board that identifies

the cannabis entity licensee by business or trade name and which

includes the date of harvest or processing for each lot of

cannabis or cannabis product.

"Medical Marijuana Act." The act of April 17, 2016 (P.L.84,

No.16), known as the Medical Marijuana Act.

"Medical marijuana facility location." The physical address

20210HB2050PN2333 - 27 -

where a medical marijuana organization that holds a permit under

the Medical Marijuana Act is located.

"Medical marijuana organization." As defined in section 103

of the Medical Marijuana Act.

"Member of an impacted family." An individual who has a

parent, legal guardian, child, spouse or dependent, or was a

dependent of an individual who, on, before or after the

effective date of this section, was arrested for, convicted of

or adjudicated delinquent for any offense that is eligible for

expungement as provided under this act.

"Municipality." A county, city, borough, incorporated town

or township.

"Mycotoxin." A secondary metabolite of a microfungus that is

capable of causing death or illness in humans and other animals.

For purposes of section 702(a)(1)(i), the term shall include

aflatoxin B1, aflatoxin B2, aflatoxin G1, aflatoxin G2 and

ochratoxin A.

"Office." The Office of Social and Economic Equity

established in section 401.

"Opportunity zone." A designated opportunity zone.

"Package" or "container." A container, receptacle or

wrapping in which cannabis or cannabis products are enclosed for

delivery to a cannabis entity licensee or display to cannabis

consumers. The term shall not include:

(1) Shipping containers or wrappings for the

transportation of cannabis in bulk or quantity by a cannabis

cultivator to cannabis processors.

(2) Containers used for tray pack displays in cannabis

establishments.

(3) Transparent containers or wrappings which do not

20210HB2050PN2333 - 28 -

bear written, printed or graphic matter which obscures

information required to be displayed on the label.

"Permit." A written authorization issued by the board as

provided under this act.

"Permittee." A person that holds a permit to engage in a

regulated activity under this act.

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

organization, business trust, estate, limited liability company,

partnership, limited liability partnership, association or any

other form of legal business entity.

"Personal use." The acquisition and possession of cannabis

or a cannabis product by a cannabis consumer for use by the

cannabis consumer making the purchase if there is no evidence of

an intent to resell, distribute or transfer or to facilitate the

resale, distribution or transfer of the cannabis or cannabis

product.

"Pesticide." The following apply:

(1) A substance or mixture of substances intended for

preventing, destroying, repelling or mitigating any pest, and

a substance or mixture of substances intended for use as a

plant regulator, defoliant or desiccant.

(2) The term shall not include any substance that is a

"new animal drug" under section 201(v) of the Federal Food,

Drug and Cosmetic Act (52 Stat. 1040, 21 U.S.C. § 301 et

seq.), or that has been determined by the Secretary of the

United States Department of Health and Human Services not to

be a new animal drug by a regulation establishing conditions

of use.

(3) The term shall not include "animal feed" under

section 201(w) of Federal Food, Drug and Cosmetic Act.

20210HB2050PN2333 - 29 -

"Principal." The term includes:

(1) An officer, director or other person directly

holding a beneficial interest in or ownership of 5% or less

of the securities of an applicant or licensee.

(2) A significantly involved person that has a

controlling interest in an applicant or licensee or has the

ability to elect a majority of the board of directors of an

applicant or licensee or to otherwise control the licensee.

(3) A lender or other licensed financial institution of

an applicant or licensee, other than a bank or lending

institution, which makes a loan or holds a mortgage or other

lien acquired in the ordinary course of business.

(4) An underwriter of an applicant or licensee.

(5) Another person or employee of an applicant or

licensee deemed to be a principal by the board.

"Process." The processing, compounding or conversion of

cannabis, cannabis products or cannabis extracts. The term does

not include the packaging or labeling of cannabis or cannabis

products.

"Production batch." A batch of finished plant material,

cannabis resin, cannabis concentrate or cannabis product made at

the same time using the same methods, equipment and ingredients,

which is traceable to one or more cannabis cultivation batches.

"Program." The Social and Economic Equity Loan and Grant

Program established under section 403.

"Propagation." The reproduction of cannabis plants by seeds,

cuttings, cloning or grafting.

"Public place." A place to which the public has access that

is not privately owned or a place to which the public has access

where alcohol consumption is not allowed, including, but not

20210HB2050PN2333 - 30 -

limited to, a public street, road, thoroughfare, sidewalk,

bridge, alley, plaza, park, playground, swimming pool, shopping

area, public transportation facility, vehicle used for public

transportation, parking lot, public library or any other public

building, structure or area.

"Qualified social and economic equity applicant." A social

and economic equity applicant that has been approved for and

issued a cannabis entity license, permit or other authorization

to engage in a regulated activity under this act.

"Regulated activity." An activity conducted or proposed to

be conducted under this act related to the cultivation,

processing, distribution, delivery, handling, testing,

transportation, sale or offering for sale of cannabis or

cannabis products, as determined by the board, for which a

person would be required to secure regulatory approval through

the issuance of a license, permit, registration, certification

or other authorization from the board as provided under this act

and regulations of the board.

"Restricted access area." A designated and secure area

within a cannabis entity licensee's cannabis establishment where

cannabis or cannabis products are cultivated, processed, stored,

sold or offered for sale and where no cannabis consumer or other

person, except as otherwise provided in this act, is permitted,

unless the individual is a designated employee of the cannabis

entity licensee.

"Sample." The term includes:

(1) An amount of cannabis or a cannabis product provided

to a cannabis testing laboratory by a cannabis cultivator

licensee, cannabis processor licensee or other person for

testing purposes as provided under this act and regulations

20210HB2050PN2333 - 31 -

of the board.

(2) An amount of cannabis or a cannabis product

collected from a cannabis cultivator licensee, cannabis

processor licensee or cannabis microbusiness licensee by the

board or the Department of Agriculture or a designated

employee or agent of the board or the Department of

Agriculture for the purposes of testing for product quality

control purposes.

(3) An amount of cannabis or cannabis product provided

by a cannabis cultivator licensee or cannabis processor

licensee to another cannabis entity licensee for business or

marketing purposes.

"Significantly involved person." A person that holds at

least a 20% investment interest in a proposed or licensed

cannabis entity or who is a decisionmaking member of a group

that holds at least a 20% investment interest in a proposed or

licensed cannabis entity in which no member of that group holds

more than a 5% interest in the total group investment interest,

and the person makes controlling decisions regarding the

proposed or licensed cannabis entity.

"Smoking." The burning of a lighted cigarette, cigar, pipe

or any other matter or substance which contains cannabis or a

cannabis product, including the use of an electronic cannabis

smoking device that creates an aerosol or vapor.

"Social and economic equity applicant." A person that is a

resident of this Commonwealth applying for a license, permit or

other authorization to engage in a regulated activity under this

act and who is:

(1) An applicant with at least 51% ownership and control

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

20210HB2050PN2333 - 32 -

of the preceding 10 years in a designated opportunity zone.

(2) An applicant with at least 51% ownership and control

by one or more individuals who:

(i) Have been arrested for, convicted of or

adjudicated delinquent for any offense that is eligible

for expungement as provided under this act. Nothing in

this definition or any other provision of this act shall

be construed to authorize an employer to require an

employee to disclose an arrest, conviction or

adjudication which is sealed or expunged.

(ii) Are members of an impacted family.

(3) An applicant that is a disadvantaged farmer-owned

small business or other person engaged in agricultural

production, as determined by the board in consultation with

the Department of Agriculture.

"THC." Delta-9-tetrahydrocannabinol, the main psychoactive

chemical contained in the cannabis plant.

"Transport." The transportation of cannabis, cannabis

products or cannabis paraphernalia or related supplies as

provided under this act.

"Unreasonably impracticable." Measures which are necessary

to comply with regulations promulgated by the board under this

act which require such a high investment of risk, money, time,

or any other resource or asset that the operation of a cannabis

establishment is not worthy of being carried out in practice by

a reasonably prudent person.

"Verification system." An Internet-based system established

and maintained by the board that is accessible by the

department, the Attorney General, the Pennsylvania State Police,

cannabis retailers and designated employees and agents of

20210HB2050PN2333 - 33 -

cannabis retailers on a 24-hour basis for the verification and

tracking of cannabis and cannabis products.

CHAPTER 2

EXEMPTIONS RELATED TO PERSONAL USE OF

CANNABIS AND CANNABIS PRODUCTS

Section 201. Personal use of cannabis and cannabis products

and exemptions.

(a) Exemption from criminal or civil penalties.--

Notwithstanding any applicable provision of the act of April 14,

1972 (P.L.233, No.64), known as The Controlled Substance, Drug,

Device and Cosmetic Act, or 18 Pa.C.S. (relating to crimes and

offenses) or any other law or regulation to the contrary and

except as provided in this act, the following acts shall not be

unlawful and shall not be an offense under the Controlled

Substance, Drug, Device and Cosmetic Act, 18 Pa.C.S. or any

other provision of law or a basis for the seizure or forfeiture

of assets under 42 Pa.C.S. §§ 5803 (relating to asset

forfeiture), 5805 (relating to forfeiture procedure), 5806

(relating to motion for return of property), 5807 (relating to

restrictions on use), 5807.1 (relating to prohibition on

adoptive seizures) and 5808 (relating to exceptions) or any

other law or regulation, including any ordinance, law or

regulation of a municipality, for the personal use of cannabis

or cannabis products as authorized under this act:

(1) Purchasing, possessing, consuming or otherwise

using, displaying or transporting:

(i) The equivalent of one ounce or 28.38 grams or

less of cannabis.

(ii) Cannabis paraphernalia.

(iii) The equivalent of one ounce or 28.38 grams or

20210HB2050PN2333 - 34 -

less of a cannabis product in solid, liquid or

concentrated form based upon an equivalency calculation

for different product forms as established by the board

by regulation. The board may use academic research

conducted as provided under the Medical Marijuana Act and

research conducted in other states on the issue of

product equivalency calculations when setting equivalency

calculations under this subparagraph.

(iv) Five grams or 0.176 ounces or less of cannabis

resin.

(2) Possessing, displaying, purchasing or transporting

at any one time any amount of cannabis or cannabis resin in

an amount greater than permitted under this subsection, or a

cannabis product in solid, liquid or concentrate form with

more than the equivalency permitted under this subsection

shall be considered a violation of The Controlled Substance,

Drug, Device and Cosmetics Act and any applicable provisions

of 18 Pa.C.S., and subject the person to prosecution as if

the person possessed, displayed, purchased or transported

cannabis, a cannabis product or cannabis resin in violation

of applicable provisions of The Controlled Substance, Drug,

Device and Cosmetics Act or 18 Pa.C.S.

(b) Smoking or consumption in public or other places.--

Except as provided in this subsection, the following acts shall

be lawful:

(1) Smoking or consumption of lawfully possessed

cannabis or cannabis products. Nothing in this section shall

permit an individual to smoke or otherwise consume cannabis

in public or in a public place, including the smoking of

cannabis or the consumption of a cannabis product in a public

20210HB2050PN2333 - 35 -

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

as the Clean Indoor Air Act, or any other law enacted or

regulation adopted relating to vaping or the use of

electronic cigarettes or electronic cannabis smoking devices

in public or an indoor public place or portion of the public

place, even if the smoking of tobacco or vaping is otherwise

permitted in the public place or portion of the public place

under the Clean Indoor Air Act.

(2) (i) Notwithstanding 68 Pa.C.S. (relating to real

and personal property) or any other provision of law or

regulation, the smoking of cannabis or the consumption of

a cannabis product may be permitted by the person that

owns or controls a lodging establishment as defined in 48

Pa.C.S. § 1311(g) (relating to hotelkeepers and

campground owners) in up to 20% of the lodging

establishment's guest rooms.

(ii) The smoking of cannabis or the consumption of a

cannabis product may also be prohibited or otherwise

regulated in a tenement building, apartment or multiple

dwelling premise as those terms are defined in the act of

April 6, 1951 (P.L.69, No.20), known as The Landlord and

Tenant Act of 1951, if the right to smoke cannabis or use

cannabis products is included in the lease agreement

between the lessee and the person that owns or controls

the tenement building, apartment or multiple dwelling

building.

(3) In the case of the smoking or consumption of

cannabis or cannabis products using an electronic cannabis

smoking device, a person that owns or controls a property,

except for a tenement building, apartment or multiple

20210HB2050PN2333 - 36 -

dwelling premises, as defined in the Landlord and Tenant Act,

may prohibit or otherwise regulate the smoking or consumption

of cannabis or cannabis products using an electronic cannabis

smoking device in the premises of or on or around the real

property.

(4) Notwithstanding section 6 of the Clean Indoor Air

Act or any other law or regulation to the contrary, penalties

that may be assessed for the smoking of tobacco where

prohibited under the Clean Indoor Air Act shall be applicable

to the smoking of cannabis where prohibited under this act or

any ordinance enacted by the governing body of a

municipality.

(5) Assisting another individual who is 21 years of age

or older in purchasing, possessing, consuming or otherwise

using, displaying or transporting cannabis or a cannabis

product.

other provision of law or regulation, if a person holds a

current and valid license, permit or other authorization to

engage in a regulated activity under this act or is acting in

the capacity as an owner, employee or agent of the person duly

licensed, permitted or authorized to engage in a regulated

activity, the following acts are declared lawful and shall not

be criminal offenses under the Controlled Substance, Drug,

Device and Cosmetic Act, 18 Pa.C.S. or any other provision of

law or a basis for seizure or forfeiture of assets as provided

under subsection (a) or under any other law or regulation,

including any ordinance, law or regulation of a municipality:

(1) Manufacturing, purchasing or possessing cannabis

paraphernalia or the sale of cannabis paraphernalia to a

20210HB2050PN2333 - 37 -

person 21 years of age or older.

(2) Possessing, displaying or transporting cannabis or

cannabis products.

(3) Purchasing cannabis or cannabis products from any of

the following:

(i) A cannabis cultivator.

(ii) A cannabis processor.

(iii) A cannabis microbusiness.

(iv) A cannabis retailer.

(4) Selling cannabis or cannabis products to cannabis

consumers.

(5) Cultivating, harvesting, processing, packaging,

repackaging, storing, transporting, displaying or possessing

cannabis or cannabis products.

(6) Delivering or transferring cannabis or cannabis

products to a cannabis testing laboratory.

(7) Selling cannabis to a cannabis cultivator, cannabis

processor, cannabis microbusiness or cannabis retailer.

(8) Purchasing cannabis from a cannabis cultivator.

(9) Packaging, processing, distributing, transporting,

displaying or possessing cannabis or cannabis products and

delivering or transferring cannabis products to a cannabis

testing laboratory.

(10) Selling cannabis and cannabis products to a

cannabis processor or cannabis retailer.

(11) Purchasing cannabis products from a cannabis

processor.

(12) Cultivating, processing, distributing, packaging,

repackaging, storing, transporting, displaying, transferring

or delivering of cannabis or cannabis products.

20210HB2050PN2333 - 38 -

(13) Leasing or otherwise allowing the use of property

owned, occupied or controlled by any person for cultivating,

processing, distributing, storing, transporting, selling or

offering for sale cannabis and cannabis products as provided

under this act.

(d) Unlawful acts.--The following acts shall be a violation

of The Controlled Substance, Drug, Device and Cosmetic Act and

subject the individual to prosecution as if the individual

distributed the cannabis, cannabis resin or cannabis product in

violation of The Controlled Substance, Drug, Device and Cosmetic

Act:

(1) Selling or transferring at any one time any amount

of cannabis or cannabis resin in an amount greater than that

permitted under this section, or a cannabis product in solid,

liquid or concentrate form with more than the equivalency

permitted under this section.

(2) Selling or transferring cannabis, cannabis resin or

a cannabis product in solid, liquid or concentrate form to an

individual who is under 21 years of age.

(3) Smoking, using and consuming cannabis and cannabis

products in the premises and on and around the property of a

licensed facility, licensed racetrack or hotel, as those

terms are defined under 4 Pa.C.S. § 1103 (relating to

definitions).

CHAPTER 3

CANNABIS REGULATORY CONTROL BOARD

Section 301. Cannabis Regulatory Control Board established.

(a) Establishment.--The Cannabis Regulatory Control Board is

established as an independent board and shall be a body

corporate and politic.

20210HB2050PN2333 - 39 -

(b) Membership.--The board shall consist of seven members

appointed as follows:

(1) Three members appointed by the Governor.

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

(i) The President pro tempore of the Senate.

(ii) The Minority Leader of the Senate.

(iii) The Speaker of the House of Representatives.

(iv) The Minority Leader of the House of

Representatives.

(1) Individuals appointed to the board under subsection

(b) must:

(i) Be residents of this Commonwealth.

(ii) Possess education, training or experience and

expertise in agriculture crop production, botany or plant

physiology, corporate management, finance or public

health.

(2) Individuals appointed to the board shall reflect the

geographic, racial, ethnic and gender diversity of this

Commonwealth.

(d) Removal.--A member of the board shall be removed from

office by the appointing authority for any of the following:

(1) misconduct in office, willful neglect of duty or

conduct evidencing unfitness for office or incompetence; or

(2) upon conviction of an offense graded as a felony, an

infamous crime, an offense under this act or an equivalent

offense under Federal law or the laws of any other state or

jurisdiction, domestic or foreign.

(e) Terms of office.--The following apply:

(1) Members of the board appointed by the Governor under

20210HB2050PN2333 - 40 -

subsection (b)(1) shall serve an initial term of one, two or

three years, respectively, as designated by the Governor at

the time of appointment, and until their successors are

appointed and qualified under this section. A gubernatorial

appointee shall serve no more than two full consecutive

terms.

(2) Legislative appointees appointed under subsection

(b)(2) shall serve a term of two years and until their

successors are appointed and qualified under this section. A

legislative appointee shall serve no more than three full

consecutive terms.

(f) Time frame for appointments.--The appointing authorities

shall make the initial appointments to the board within 45 days

of the effective date of this subsection. The following apply:

(1) No appointment shall be final until receipt by the

appointing authority of the background investigation of the

appointee conducted by the Pennsylvania State Police, which

shall be completed by the Pennsylvania State Police within 30

days of receipt of an application for a background

investigation.

(2) Appointments to fill a vacancy shall be made within

60 days of the date the vacancy was created.

(3) An individual who has been convicted in any

jurisdiction, domestic or foreign, of a felony, infamous

crime or crime under the act of April 14, 1972 (P.L.233,

No.64), known as The Controlled Substance, Drug, Device and

Cosmetic Act, or 18 Pa.C.S. § 7508 (relating to drug

trafficking sentencing and penalties) may not be appointed to

the board.

(g) Vacancy.--The following apply:

20210HB2050PN2333 - 41 -

(1) A vacancy on the board occurring for any reason,

except for the expiration of a term, shall be filled for the

remainder of the unexpired term in the same manner as the

original appointment.

(2) An appointing authority may elect to reappoint a

member appointed to fill a vacancy on the board as follows:

(i) A member appointed to fill a vacancy caused by a

legislative appointee may be reappointed by the

appointing authority to serve three full terms following

the expiration of the unexpired term associated with the

vacancy.

(ii) A member appointed to fill a vacancy caused by

a gubernatorial appointee may be reappointed by the

Governor to serve two full terms following the expiration

of the unexpired term associated with the vacancy.

(h) Chairperson.--The chairperson of the board shall be

appointed by the Governor.

(i) Ex officio members.--The Secretary of Agriculture,

Secretary of Revenue, Secretary of Health, Secretary of

Environmental Protection and State Treasurer or a designee of

the secretaries shall serve on the board as nonvoting ex officio

members. Each designee shall be a deputy secretary or hold an

equivalent position within the department represented.

(j) Qualified majority vote.--The following apply:

(1) Except as authorized in paragraphs (2) and (3), any

action, including, but not limited to, the approval,

issuance, denial or conditioning of a license, permit,

certification or other authorization to engage in a regulated

activity under this act, the making of an order or the

ratification of any permissible act done or order made by one

20210HB2050PN2333 - 42 -

or more of the members, shall require a qualified majority

vote consisting of at least one gubernatorial appointee and

the four legislative appointees.

(2) Any action to suspend or revoke, not renew, void or

require forfeiture of a license, permit or other

authorization to engage in a regulated activity under this

act, impose any administrative sanction, fine or penalty

under this act or issue cease and desist orders or similar

enforcement actions shall require a majority vote of all the

members of the board.

(3) Notwithstanding any other provision of this act or

65 Pa.C.S. § 1103(j) (relating to restricted activities), a

member shall disclose the nature of any disqualifying

interest which would disqualify the member and require the

member to abstain from voting in a hearing or proceeding

under this act in which the member's objectivity,

impartiality, integrity or independence of judgment may be

reasonably questioned, as provided in sections 302 and 303(c)

(2). If a legislative appointee disqualifies themselves, the

qualified majority shall consist of all of the remaining

legislative appointees and at least two gubernatorial

appointees.

(k) Background investigation.--Appointees to the board shall

be subject to a background investigation conducted by the

Pennsylvania State Police as provided under this chapter. The

results of a background investigation conducted under this

subsection may be submitted by the Pennsylvania State Police to

the appointing authority electronically.

(l) Quorum.--A majority of the members of the board

appointed under subsection (b) shall be required to establish a

20210HB2050PN2333 - 43 -

quorum and a majority of members shall be required to exercise

the board's powers at any meeting of the board.

(m) Fiduciary duty.--Each member and employee of the board

shall serve as a fiduciary of the Commonwealth.

Section 302. Qualifications and restrictions.

The following apply:

(1) Each member at the time of appointment to the board

shall be at least 25 years of age. A member appointed under

section 301(b) shall have been a resident of this

Commonwealth for a period of at least two years immediately

preceding appointment. Each member shall continue to remain a

resident of this Commonwealth during the term of membership

on the board.

(2) Except for ex officio members, no individual shall

be appointed a member of the board or be employed by or be an

independent contractor of the board if that person is a

public official or party officer as defined in section

906(g).

(3) Each member, employee and independent contractor of

the board shall sign an agreement not to disclose

confidential information, including proprietary information.

(4) A member, employee or independent contractor of the

board or other agency whose duties are directly related to

the licensure, permitting or authorization of persons to

engage in a regulated activity under this act may not be

employed, hold any office or position or be engaged in any

activity which is incompatible with the position, employment

or contract.

(5) A member may not engage in a business, employment or

vocation for which the member receives a salary, compensation

20210HB2050PN2333 - 44 -

or fee for services rendered which is in excess of 15% of the

member's gross annual salary as a member of the board. For

purposes of this paragraph, the terms "salary,"

"compensation" and "fee" do not include any of the following:

(i) Passive or unearned income, including interest,

dividends or capital gains from the sale of assets or

securities held for investment purposes.

(ii) Health care benefits or retirement, pension or

annuity payments.

(iii) Amounts received from a family-controlled

trade or business in which both personal services and

capital are income-producing factors if the personal

services actually rendered by the member do not generate

a significant amount of income.

(iv) Director's fees attributable to board

membership of a corporate or nonprofit body or board or

reimbursement for expenses incurred in connection with

board membership.

(6) A member may not be paid or receive any fee or other

compensation for any activity related to the duties or

authority of the board other than salary and expenses

provided by law.

(7) The following apply:

(i) A member, employee, independent contractor or

employee of an independent contractor of the board may

not participate in a hearing, proceeding or other matter

in which the member, employee, independent contractor or

employee of an independent contractor, or an immediate

family member, has a financial interest in the subject

matter of the hearing or proceeding or other interest

20210HB2050PN2333 - 45 -

that could be substantially affected by the outcome of

the hearing or proceeding without first fully disclosing

the nature of the interest to the board and other persons

participating in the hearing or proceeding.

(ii) The board shall determine if the interest is a

disqualifying interest that requires the disqualification

or nonparticipation of a member, employee, independent

contractor or employee of an independent contractor.

(iii) For purposes of this paragraph, the term

"immediate family" shall mean spouse, parent, brother,

sister or child.

(8) The following apply:

(i) At the time of appointment and annually

thereafter, each member shall disclose the existence of

any financial interest in any applicant, licensee,

permittee or other person authorized to engage in a

regulated activity under this act or in any affiliate,

intermediary, subsidiary or holding company of the

applicant, licensee, permittee or other person held by

the member or known to be held by the member's immediate

family.

(ii) The disclosure statement shall be filed with

the executive director of the board and with the

appointing authority of the member and shall be open to

inspection by the public at the office of the board

during the normal business hours of the board for the

duration of the member's term and for two years after the

termination or expiration of the member's term of office.

(iii) For purposes of this paragraph, the term

"immediate family" shall mean spouse, parent, brother,

20210HB2050PN2333 - 46 -

sister or child.

(9) The following apply:

(i) Prior to being sworn in as a member, an

appointee and immediate family members of the appointee

shall divest any financial interest in any applicant,

licensee, permittee or other person authorized to engage

in a regulated activity under this act or in any

affiliate, intermediary subsidiary or holding company of

the applicant, licensee, permittee or other person owned

or held by the appointee or known to be held by the

appointee's immediate family.

(ii) For the duration of the member's term and for

two years thereafter, the member and the member's

immediate family may not acquire a financial interest in

an applicant, licensee, permittee or other person

authorized to engage in a regulated activity or in an

affiliate, intermediary, subsidiary or holding company of

an applicant, or cannabis entity licensee, permittee or

other person.

(iii) For purposes of this paragraph, the term

"immediate family" shall mean spouse and any minor or

unemancipated child.

(10) The following apply:

(i) Prior to entering into employment or a contract

with the board and annually thereafter, an employee of

the board, independent contractor or employee of an

independent contractor shall disclose the existence of

any financial interest in an applicant, licensee,

permittee or other person authorized to engage in a

regulated activity under this act or in any affiliate,

20210HB2050PN2333 - 47 -

intermediary, subsidiary or holding company of the

applicant, licensee, permittee or other person owned or

held by the employee, independent contractor or employee

of an independent contractor or known to be held by the

immediate family of the employee, independent contractor

or employee of an independent contractor.

(ii) The disclosure statement shall be filed with

the board and shall be open to inspection by the public

at the office of the board during the normal business

hours of the board and for two years after termination of

employment or a contract with the board.

(iii) For purposes of this paragraph, the term

"immediate family" shall mean spouse, parent, brother,

sister or child.

(11) The following apply:

(i) Prior to entering into employment or a contract

with the board, an employee, independent contractor or

employee of an independent contractor and the employee's,

independent contractor's or employee of an independent

contractor's immediate family shall divest any financial

interest in an applicant, licensee, permittee or other

person authorized to engage in a regulated activity under

this act or in any affiliate, intermediary, subsidiary or

holding company of the applicant, licensee, permittee or

other person owned or held by the employee, independent

contractor or employee of an independent contractor or

known to be held by the immediate family of the employee,

independent contractor or employee of an independent

contractor.

(ii) For the duration of the employee's employment

20210HB2050PN2333 - 48 -

with the board or the independent contractor's contract

with the board and for one year thereafter, the employee,

independent contractor or employee of an independent

contractor and their immediate family members shall not

acquire, by purchase, gift, exchange or otherwise, any

financial interest in an applicant, licensee, permittee

or other person engaged in a regulated activity under

this act or in any affiliate, intermediary, subsidiary or

holding company of the applicant, licensee, permittee or

other person.

(iii) For purposes of this paragraph, the term

"immediate family" shall mean spouse and any minor or

unemancipated child.

(12) A member, employee, independent contractor or

employee of an independent contractor of the board may not,

directly or indirectly, solicit, request, suggest or

recommend to any applicant, licensee, permittee or other

person authorized to engage in a regulated activity under

this act, to any affiliate, intermediary, subsidiary or

holding company of the applicant, licensee, permittee or

other person or to a principal, employee, independent

contractor or agent of the applicant, licensee, permittee or

other person, the appointment or employment of a person in

any capacity by the applicant, licensee, permittee or other

person or any affiliate, intermediary, subsidiary or holding

company of the applicant, licensee, permittee or other person

for a period of two years from the termination of term of

office, employment or contract with the board.

(13) A member may not accept employment with an

applicant, licensee, permittee or other person authorized to

20210HB2050PN2333 - 49 -

engage in a regulated activity under this act or with any

affiliate, intermediary, subsidiary or holding company of the

applicant, licensee, permittee or other person, for a period

of two years from the termination of term of office.

(14) A former member may not appear before the board in

any hearing or proceeding or participate in any other

activity on behalf of an applicant, licensee, permittee or

other person authorized to engage in a regulated activity

under this act or an affiliate, intermediary, subsidiary or

holding company of the applicant, licensee, permittee or

other person, for a period of two years from the termination

of the term of office.

(15) A member, employee of the board, independent

contractor or employee of an independent contractor may not

accept a complimentary service from an applicant, licensee,

permittee or other person authorized to engage in a regulated

activity under this act or from an affiliate, intermediary,

subsidiary or holding company of the applicant, licensee,

permittee or other person for the duration of their term of

office, employment or contract with the board and for a

period of two years from the termination of the term of

office, employment or contract with the board.

(16) The following apply:

(i) A member who has been convicted during the

member's term of office of a felony, infamous crime or a

felony offense indictable under section 13 of the act of

April 14, 1972 (P.L.233, No.64), known as The Controlled

Substance, Drug, Device and Cosmetic Act, or a felony

offense under 18 Pa.C.S. (relating to crimes and

offenses) or an equivalent Federal statute or equivalent

20210HB2050PN2333 - 50 -

statue in any jurisdiction, foreign or domestic, shall,

upon conviction, be automatically removed from the board

and shall be ineligible to become a member of the board

in the future.

(ii) If an ex officio member is indicted for an

offense enumerated in subparagraph (i) during the ex

officio member's term of office, the ex officio member

shall be suspended from the duties of membership on the

board and, upon conviction, be automatically removed from

the board.

(iii) A designee who is a deputy secretary or holds

an equivalent position with the department represented

shall be designated to serve as an ex officio member of

the board in place of the ex officio member who was

removed.

(17) The following shall apply to an employee of the

board whose duties substantially involve licensing,

enforcement, development of law, promulgation of regulations

or development of policy relating to the regulation of

cannabis for personal use under this act or who has other

discretionary authority which may affect or influence the

outcome of an action, proceeding or decision of the board

under this act, including the executive director, bureau

directors and attorneys of the board:

(i) The employee may not, for a period of two years

following termination of employment, accept employment

with or be retained by an applicant, licensee, permittee

or other person authorized to engage in a regulated

activity under this act, or with any affiliate,

intermediary, subsidiary or holding company of an

20210HB2050PN2333 - 51 -

applicant, licensee, permittee or other person.

(ii) The employee may not, for a period of two years

following termination of employment, appear before the

board in a hearing or proceeding or participate in

activity on behalf of an applicant, licensee, permittee

or other person authorized to engage in a regulated

activity under this act or on behalf of an affiliate,

intermediary, subsidiary or holding company of an

applicant, licensee, permittee or other person.

(iii) An applicant, licensee, permittee or other

person authorized to engage in a regulated activity under

this act or an affiliate, intermediary, subsidiary or

holding company of an applicant, licensee, permittee or

other person may not, until the expiration of two years

following termination of employment with the board,

employ or retain the individual. Violation of this

subparagraph shall result in termination of the

employee's employment and subject the applicant,

licensee, permittee or other person to sanctions by the

board under section 911.

(iv) A prospective employee who, upon employment,

would be subject to this paragraph must, as a condition

of employment, sign an affidavit that the prospective

employee will not violate subparagraph (i) or (ii). If

the prospective employee fails to sign the affidavit, the

board shall rescind any offer of employment and shall not

employ the individual.

(18) The following apply:

(i) A person that is an independent contractor or

employee of an independent contractor whose duties

20210HB2050PN2333 - 52 -

substantially involve consultation relating to licensing,

enforcement, development of law, promulgation of

regulations or the development of policy relating to the

regulation of cannabis under this act may not:

(A) For a period of one year following

termination of the contract with the board, be

retained by an applicant, licensee, permittee or

other person authorized to engage in a regulated

activity under this act or by an affiliate,

intermediary, subsidiary or holding company of an

applicant, licensee, permittee or other person.

(B) For a period of two years following

termination of the contract with the board, appear

before the board in a hearing or proceeding or

participate in activity on behalf of an applicant,

licensee, permittee or other person authorized to

engage in a regulated activity under this act or on

behalf of an affiliate, intermediary, subsidiary or

holding company of an applicant, licensee, permittee

or other person.

(ii) An applicant, licensee, permittee or other

person authorized to engage in a regulated activity under

this act or an affiliate, intermediary, subsidiary or

holding company of an applicant, licensee, permittee or

other person may not employ a person who is an

independent contractor or an employee of an independent

contractor until the expiration of one year following

termination of the contract with the board. A willful

violation of this subparagraph shall result in

termination of the person's employment and may subject

20210HB2050PN2333 - 53 -

the applicant, licensee, permittee or other person to

sanctions under section 911.

(iii) Each contract between the board and an

independent contractor which involves the duties

specified in this paragraph shall contain a provision

requiring the independent contractor to sign an affidavit

that the independent contractor will not violate

subparagraph (i)(A) or (B). If the independent contractor

fails to sign the affidavit, the board shall not enter

into the contract.

(iv) An independent contractor shall require a

prospective employee whose employment would involve the

duties specified in this paragraph to sign an affidavit

that the prospective employee will not violate

subparagraph (i)(A) or (B). If the prospective employee

fails to sign the affidavit, the independent contractor

shall rescind any offer of employment and shall not

employ the individual.

(19) Nothing under paragraph (17) or (18) shall prevent

a current or former employee of the board, a current or

former independent contractor or a current or former employee

of an independent contractor from appearing before the board

in a hearing or proceeding as a witness or testifying as to

any fact or information.

(20) The State Ethics Commission shall issue a written

determination of whether a person is subject to paragraph

(17) or (18) upon the written request of the person or the

person's employer or potential employer. A person that relies

in good faith on a determination issued under this paragraph

shall not be subject to any penalty for an action taken,

20210HB2050PN2333 - 54 -

provided that all material facts stated in the request for

the determination are correct.

(21) The following apply:

(i) The State Ethics Commission shall publish a list

of all employment positions within the board and

employment positions with independent contractors whose

duties would subject employees holding those positions to

the provisions of paragraphs (17) and (18).

(ii) The board and each independent contractor shall

assist the State Ethics Commission in the development of

the list.

(iii) The State Ethics Commission shall transmit the

list to the Legislative Reference Bureau for publication

in the Pennsylvania Bulletin biennially and post the list

on the State Ethics Commission's publicly accessible

Internet website.

(iv) Upon request, employees of the board and each

independent contractor shall have a duty to provide the

State Ethics Commission with adequate information to

accurately develop and maintain the list.

(v) The State Ethics Commission may impose a civil

penalty under 65 Pa.C.S. § 1109(f) (relating to

penalties) upon an employee or independent contractor who

fails to cooperate with the State Ethics Commission under

this paragraph.

(vi) An employee of the board or of an independent

contractor who relies in good faith on the list published

by the State Ethics Commission shall not be subject to

any penalty for a violation of paragraph (17) or (18).

(22) If a member of the board violates this section, the

20210HB2050PN2333 - 55 -

appointing authority may remove the person from the board. A

member removed under this paragraph shall, for a period of

five years following removal, be prohibited from appointment

to the board and shall be prohibited from applying for a

license, permit or other authorization to engage in a

regulated activity under this act and from becoming an

independent contractor or registering as a licensed

representative.

Section 303. Code of conduct.

(a) Adoption.--The board shall adopt and maintain a

comprehensive code of conduct prior to the consideration of any

application for a license, permit or other authorization to

engage in a regulated activity under this act. The code of

conduct shall be modeled after the Code of Judicial Conduct of

the American Bar Association, as amended and adopted by the

Pennsylvania Supreme Court. The code of conduct shall supplement

all other requirements under this act and 65 Pa.C.S. Pt. II

(relating to accountability) and shall provide guidelines

applicable to members, employees, independent contractors,

employees of independent contractors and the immediate family of

the members, employees, independent contractors and employees of

independent contractors to enable them to avoid any perceived or

actual conflict of interest and to promote public confidence in

the integrity and impartiality of the board. At a minimum, the

code of conduct:

(1) May not conflict with the laws of this Commonwealth

but may be more restrictive than the laws of this

Commonwealth.

(2) Shall be submitted, including any amendments or

restatements of the code of conduct, to the State Ethics

20210HB2050PN2333 - 56 -

Commission for approval.

(3) Shall include registration of cannabis entity

representatives under subsection (b) and the restrictions

under subsections (c).

(b) Registration.--The following apply:

(1) A cannabis entity representative shall register with

the board in a manner prescribed by the board, which shall

include the name, employer or firm, business address and

business telephone number of the cannabis entity

representative and an applicant, licensee, permittee or other

person represented.

(2) A cannabis entity representative shall have an

affirmative duty to update the cannabis entity

representative's registration information on an ongoing

basis. The failure to update registration information shall

be punishable by the board.

(3) The board shall maintain a registration list of all

cannabis entity representatives. The registration list shall:

(i) contain the information required under paragraph

(1); and

(ii) be available for public inspection at the

office of the board during normal business hours, as

established by regulation, and on the board's publicly

accessible Internet website.

provided in this act, a member of the board:

(1) May not accept any discount, gift, gratuity,

compensation, travel, lodging, complimentary service or other

thing of value, directly or indirectly, from any applicant,

licensee, permittee or other person authorized to engage in a

20210HB2050PN2333 - 57 -

regulated activity under this act or an affiliate, subsidiary

or intermediary of an applicant, licensee, permittee or other

person.

(2) Must disclose and recuse the member from any hearing

or other proceeding in which the member's objectivity,

impartiality, integrity or independence of judgment may be

reasonably questioned due to the member's relationship or

association with a party connected to the hearing or

proceeding or person appearing before the board.

(3) Shall refrain from any financial or business dealing

with an applicant, licensee, permittee or other person

engaged in a regulated activity under this act which would

tend to reflect adversely on the member's objectivity,

impartiality or independence of judgment.

(4) Except as provided in this act, may not:

(i) hold or campaign for public office;

(ii) hold an office in any political party or

political committee;

(iii) contribute to or solicit contributions to a

political campaign, political party, political committee

or candidate;

(iv) publicly endorse a candidate for a political

office; or

(v) actively participate in a political campaign.

(5) May not solicit money for a charitable, educational,

religious, health, fraternal, civic or other nonprofit entity

from an applicant, licensee, permittee or other person

authorized to engage in a regulated activity under this act

or from an affiliate, subsidiary, intermediary or holding

company of any applicant, licensee, permittee or other

20210HB2050PN2333 - 58 -

person. Subject to section 301, a member may serve as an

officer, employee or member of the governing body of a

nonprofit entity and may attend, make personal contributions

to and plan or preside over the nonprofit entity's

fundraising events. A member may permit the member's name to

appear on the letterhead used for fundraising events if the

letterhead contains only the member's name and position with

the nonprofit entity.

(6) (i) May not meet or engage in discussions with an

applicant, licensed representative, licensee, permittee

or any other person authorized to engage in a regulated

activity under this act who provides goods, property or

services to a cannabis entity licensee, permittee or any

other person under the jurisdiction of the board unless

the meeting or discussion occurs on the business premises

of the board and is recorded in a log. The log shall:

(A) Include the name of the participants.

(B) Identify the person the participant

represents, if applicable.

meeting and subject discussed.

(D) Include the date and time of the meeting or

discussion.

(E) Be available for public inspection during

the regular business hours of the board.

(F) Be posted on the board's publicly accessible

Internet website.

(ii) This paragraph shall not apply to meetings to

consider matters requiring the physical inspection of a

cannabis establishment or operations of an applicant or

20210HB2050PN2333 - 59 -

cannabis entity licensee, permittee or other person

authorized to engage in a regulated activity under this

act, if the meeting is recorded in the log.

(7) Shall avoid impropriety and the appearance of

impropriety at all times and observe standards and conduct

that promote public confidence in the oversight of the

cultivation, processing, distribution, storing, transporting,

delivery, sale or offering for sale of cannabis and cannabis

products.

(8) May not enter or be permitted to enter and engage in

any activities, nor have any interest, directly or

indirectly, in an applicant, cannabis entity licensee or

permittee or other person authorized to engage in a regulated

activity under this act, except in the course of performing

the member's or employee's duties under this act.

(9) Shall comply with any other laws, rules or

regulations relating to the conduct of a member.

(d) Ex parte communications.--The following apply:

(1) A member or hearing officer of the board may not

engage in any ex parte communication with any person. An

attorney, including the chief counsel, advising the board on

a particular issue or proceeding involving the licensing,

permitting or other authorization to engage in a regulated

activity under this act may not engage in any ex parte

communication with any person.

(2) An attorney representing the board or an office or

bureau established by the board under this act or an attorney

representing an applicant, licensee or permittee or other

person authorized to engage in a regulated activity under

this act may not engage in an ex parte communication with a

20210HB2050PN2333 - 60 -

member, attorney of the board or an attorney of an office or

bureau of the board who is advising the board on a proceeding

or hearing of the board.

(3) An employee of the bureau or the Office of

Enforcement Counsel may not engage in an ex parte

communication with a member, attorney of the Office of Chief

Counsel who is advising the board on a proceeding or hearing

officer of the board.

(e) Procedures relating to ex parte communications.--The

following apply:

(1) An ex parte communication received or engaged in by

a member or hearing officer shall be recorded in a log. The

log shall be available for public inspection during the

regular business hours of the board and shall be posted on

the board's publicly accessible Internet website. The log

shall include:

(i) The name of the individual documenting the ex

parte communication.

(ii) The date and time of the ex parte

communication.

(iii) The names of all individuals involved in the

ex parte communication.

(iv) The subject discussed.

(2) In addition to documenting an ex parte communication

in the log under paragraph (1), notification of the substance

of the ex parte communication and an opportunity to respond

shall be provided to all parties to a hearing or other

proceeding directly affected by the anticipated vote or

action of the hearing officer or board related to the ex

parte communication.

20210HB2050PN2333 - 61 -

(f) Recusal.--The following apply:

(1) A member or hearing officer who engaged in or

received an ex parte communication shall recuse themselves

from any hearing or other proceeding related to the ex parte

communication if the context and substance of the ex parte

communication creates substantial reasonable doubt as to the

member or hearing officer's ability to act objectively,

independently or impartially.

(2) A member or hearing officer who engaged in or

received an ex parte communication who elects not to recuse

themselves from a hearing or other proceeding shall state the

reasons for not recusing themselves on the record prior to

the commencement of the hearing or proceeding.

(3) Failure of a hearing officer who engaged in or

received an ex parte communication to recuse themselves from

a hearing or other proceeding when required under paragraph

(1) shall be grounds for appeal to the board.

(4) Failure of a member or hearing officer who engaged

in or received an ex parte communication to recuse themselves

from a hearing or other proceeding when required under

paragraph (1) shall be grounds for appeal to a court of

competent jurisdiction if the board action being appealed

could not have occurred without the participation of the

member or hearing officer.

(5) Nothing in this subsection shall be construed to

preclude or prevent a member from consulting with other

members individually if the consultation complies with 65

Pa.C.S. Ch. 7 (relating to open meetings) or with employees

or independent contractors or employees of independent

contractors whose functions are to assist the board in

20210HB2050PN2333 - 62 -

carrying out the board's adjudicative functions.

(g) Conflict of interest.--Except as specifically provided

under this act, the provisions of 65 Pa.C.S. Ch. 11 (relating to

ethics standards and financial disclosure) shall apply to

members of the board and to all employees of the board.

(h) Ex officio members.--The restrictions under subsection

(c)(4) shall not apply to ex officio members.

Section 304. Powers and duties of board.

(a) General powers.--The following apply:

(1) The board shall have general and sole regulatory

authority to administer the provisions of this act and over

the development, regulation and enforcement of activities

related to the cultivation, processing, distribution,

storing, testing, transporting, delivery, sale and offering

for sale at retail of cannabis and cannabis products for

personal use in this Commonwealth. The board shall ensure

safety in the cultivation, processing, distribution, storing,

testing, transporting, delivery and sale or offering for sale

of cannabis and cannabis products and integrity in the

acquisition, distribution and sale or offering for sale of

cannabis and cannabis products in this Commonwealth under

this act and regulations promulgated by the board.

(2) The board shall employ individuals as necessary to

carry out the powers and duties of the board, who shall serve

at the board's pleasure. An employee of the board shall be

considered a State employee for purposes of 71 Pa.C.S. Pt.

XXV (relating to retirement for State employees and

officers). For the purposes of this paragraph, the board

shall not be considered an executive agency or independent

agency under the act of October 15, 1980 (P.L.950, No.164),

20210HB2050PN2333 - 63 -

known as the Commonwealth Attorneys Act. The board shall not

take final action to fill a vacancy in the position of

executive director of the board, director of the bureau,

chief counsel of the board or director of the Office of

Enforcement Counsel until receipt and review of the results

of the individual's background investigation.

(3) In addition to employees authorized by the board,

each member may employ one special assistant whose

classification and compensation shall be established by the

board. A special assistant shall be a State employee for

purposes of 71 Pa.C.S. Pt. XXV, shall serve at the pleasure

of the member and may only be removed by the board for cause.

(4) The board shall establish a system of classification

and compensation of the board's employees and shall not be

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

as The Administrative Code of 1929, as to classification and

compensation for the board's employees. The board shall

conduct the board's activities consistent with the practices

and procedures of Commonwealth agencies.

(5) Within 45 days of the effective date of this

paragraph, the board shall transmit notice of the

classification system to the Legislative Reference Bureau for

publication in the Pennsylvania Bulletin and publish the

classification system on the board's publicly accessible

Internet website.

(6) A request for proposal to conduct investigations of

employees and applicants under this act shall include a

requirement that an offeror provide the number of employees

of the offeror who will be engaged in the conduct of

investigations who are residents of this Commonwealth and

20210HB2050PN2333 - 64 -

annuitants of a Federal, State or local law enforcement

agency. Preference shall be given to an offeror with a

substantial number of employees who will be engaged in the

conduct of investigations and who are residents of this

Commonwealth and annuitants of a Federal, State or local law

enforcement agency.

(b) Specific powers.--The board shall have the specific

power and duty:

(1) To adopt, use and alter a corporate seal.

(2) To pay or satisfy obligations of the board.

(3) To sue or be sued, implead and be impleaded, or

interplead.

(4) To contract and execute instruments as necessary to

carry out the powers and duties of the board. Contracts for

the purchase of supplies, services and construction shall be

for a term not to exceed two years.

(5) To sell, transfer, convey and dispose of tangible or

intangible property owned by the board.

(6) To administer oaths, examine witnesses and issue

subpoenas compelling the attendance of witnesses or the

production of documents and records or other evidence, or to

designate officers or employees to perform these duties.

(7) To purchase insurance against a loss related to the

board's property or assets.

(8) To appoint an executive director and employ

attorneys, investigators, accountants, auditors and financial

and other experts to render services to the board. For the

purposes of this paragraph, the board shall be considered an

independent agency for purposes of the Commonwealth Attorneys

Act.

20210HB2050PN2333 - 65 -

(9) To require background investigations of applicants,

licensees, permittees, persons authorized to engage in a

regulated activity, principals, essential employees and other

persons subject to the jurisdiction of the board.

(10) To enter into an agreement with the Pennsylvania

State Police for the reimbursement of actual costs, as

approved by the board, incurred by the Pennsylvania State

Police for the conduct of background investigations.

Background investigations shall include information in the

possession of the Attorney General.

(11) For purposes of licensing and enforcement and for

purposes of the background investigation, to receive

information otherwise protected by 18 Pa.C.S. Ch. 91

(relating to criminal history record information).

(12) At the board's discretion, to issue, approve,

renew, revoke, suspend, condition or deny issuance or renewal

of a license, permit or other authorization to engage in a

regulated activity under this act.

(13) At the board's discretion, to issue, approve,

renew, revoke, suspend, condition or deny issuance or renewal

of a license, permit, certificate or other authorization for

various classes of employees as required under this act.

(14) At the board's discretion, to issue, approve,

renew, revoke, suspend, condition or deny issuance or renewal

of any additional licenses, permits or other authorization to

engage in a regulated activity under this act, which may be

required by the board.

(15) At the board's discretion, to impose administrative

sanctions and levy fines for any violation of this act.

(16) To require prospective and existing employees,

20210HB2050PN2333 - 66 -

independent contractors, employees of independent

contractors, applicants, licensees, permittees and other

persons authorized to engage in a regulated activity under

this act to submit to fingerprinting by the Pennsylvania

State Police or an authorized agent of the Pennsylvania State

Police. The Pennsylvania State Police or an authorized agent

of the Pennsylvania State Police shall submit the

fingerprints to the Federal Bureau of Investigation for

purposes of verifying the identity of the individual and

obtaining records of criminal arrests and convictions.

(17) To require prospective and existing employees,

independent contractors, employees of independent

contractors, applicants, licensees, permittees and other

persons authorized to engage in a regulated activity under

this act to submit photographs consistent with the standards

established by the board.

(18) To develop procedures for notifying law enforcement

for investigation of any licensee, permittee or other person

authorized to engage in a regulated activity under this act

who cultivates, processes, distributes, stores, tests,

delivers, transports, uses, sells or offers for sale any

cannabis or cannabis product in a manner which constitutes a

violation of this act.

(19) In addition to the power of the board regarding

applicants for a license, permit, certificate or other

authorization to engage in a regulated activity under this

act, to determine at the board's discretion the suitability

of a person to engage, directly or indirectly, in a regulated

activity under this act. The board may require a person to

comply with the requirements of this act and regulations of

20210HB2050PN2333 - 67 -

the board and may prohibit a person from engaging in a

regulated activity under this act.

(20) Within six months of the effective date of this

section, in a manner that does not impede the immediate

implementation of the duties and responsibilities of the

board specified in this act during the immediate two years of

the effective date of this act, to develop and implement a

diversity and inclusion plan to assure that all persons are

accorded equality of opportunity in employment with and

contracting by the board and the board's contractors,

subcontractors, assignees, lessees, agents, vendors and

suppliers.

(21) The board shall not approve an application for or

issue or renew a license, permit, certification or other

authorization to engage in a regulated activity under this

act unless it is satisfied that the applicant has

demonstrated by clear and convincing evidence that the

applicant does not pose a threat to the public interest or

the effective regulation and control of cannabis and cannabis

products in this Commonwealth or create or enhance

unsuitable, unfair or illegal practices, methods and

activities in the cultivation, processing, producing,

distribution, storing, transporting, delivery, testing, sale

or offering for sale of cannabis and cannabis products in

this Commonwealth or the carrying on of the business and

financial arrangements associated with the business.

(22) The following apply:

(i) Notwithstanding any other provision of law, to

sell, in whole or in part, the Commonwealth's right,

title and interest in State cannabis receipts to the

20210HB2050PN2333 - 68 -

authority. The sale shall be subject to the terms and

conditions contained in agreements between the board and

the authority.

(ii) Proceeds from the sale of State cannabis

receipts shall be allocated and used in the manner

otherwise provided under this act for the distribution of

State cannabis receipts or in a manner authorized by an

act of the General Assembly.

(iii) The authority is authorized to purchase State

cannabis receipts upon terms and conditions agreed to by

the board and to issue bonds to fund the purchase of

State cannabis receipts in the manner provided for the

issuance of authority indebtedness in the law

establishing the authority.

(iv) The State Treasurer is authorized and directed

to enter into agreements with the board and the authority

and establish accounts and funds, that shall not be in

the State Treasury, as the authority may direct as being

necessary or appropriate to affect the sale of State

cannabis receipts to the authority and the collection and

transfer of the State cannabis receipts sold to the

authority.

(v) State cannabis receipts sold to the authority

shall be the property of the authority and shall not be

the property of the Commonwealth.

(23) To enter into an agreement with the district

attorneys of the counties where cannabis establishments are

located and the Office of Attorney General for the

reimbursement of actual costs for prosecutions of criminal

violations and for investigating a person applying for a

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determination that an individual has been rehabilitated under

this act.

(24) On December 31 following the one-year period after

the effective date of this paragraph, and every December 31

thereafter, transmit to the Legislative Reference Bureau for

publication in the Pennsylvania Bulletin and publish on the

board's publicly accessible Internet website a complete list

of:

(i) All persons or entities who applied for or held

a license, permit, certification or other authorization

to engage in a regulated activity under this act at any

time during the preceding calendar year.

(ii) All affiliates, intermediaries, subsidiaries

and holding companies of the persons or entities.

(iii) The status of the application, license,

permit, certification or other authorization to engage in

a regulated activity under this act.

(25) To prepare and, through the Governor, submit

annually to the General Assembly an itemized budget

consistent with Article VI of The Administrative Code of

1929, consisting of the amounts necessary to be appropriated

by the General Assembly to meet the obligations accruing

during the fiscal period beginning July 1 of the following

year. The budget shall include itemized recommendations for

the Attorney General, the department, the Department of

Community and Economic Development and the Department of

Agriculture needed to meet their obligations under this act.

(26) In the event that, in any year, appropriations for

the administration of this act are not enacted by June 30,

any money appropriated for the administration of this act

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unexpended, uncommitted and unencumbered at the end of a

fiscal year shall remain available for expenditure by the

board or other agency to which money was appropriated until

the enactment of appropriation for the ensuing fiscal year.

(27) To promulgate rules and regulations necessary for

the administration and enforcement of this act. Except as

provided in section 307, regulations shall be adopted in

accordance with the act of July 31, 1968 (P.L.769, No.240),

referred to as the Commonwealth Documents Law, and the act of

June 25, 1982 (P.L.633, No.181), known as the Regulatory

Review Act.

(28) To collect and post information on the board's

publicly accessible Internet website with sufficient detail

to inform the public of each person with a controlling

interest or ownership interest in an applicant, licensee,

permittee or other person authorized to engage in a regulated

activity under this act and an affiliate, intermediary,

subsidiary or holding company of an applicant or cannabis

entity licensee. The posting shall include:

(i) If the applicant, licensee, permittee or other

person authorized to engage in a regulated activity under

this act or an affiliate, intermediary, subsidiary or

holding company of the applicant, licensee, permittee or

other person is a publicly traded domestic or foreign

corporation, partnership, limited liability company or

other legal entity, the names of all persons with a

controlling interest.

(ii) If the applicant or cannabis entity licensee or

an affiliate, intermediary, subsidiary or holding company

of the applicant or cannabis entity licensee is a

20210HB2050PN2333 - 71 -

privately held domestic or foreign corporation,

partnership, limited liability company or other legal

entity, the names of all persons with an ownership

interest greater than 5%.

(iii) The name of any person entitled to cast the

vote of a person named under subparagraph (i) or (ii).

(iv) The names of all officers, directors and

principals of the applicant or cannabis entity licensee.

(29) To adopt regulations governing the postemployment

limitations and restrictions applicable to members and to

employees of the board subject to section 301. In developing

these regulations, the board may consult with the State

Ethics Commission, other governmental agencies and the

disciplinary board of the Supreme Court of Pennsylvania

regarding postemployment limitations and restrictions on

members and employees of the board who are members of the

Pennsylvania Bar.

(30) To review detailed site plans identifying an

applicant's floor plan for a proposed cannabis establishment

to determine the adequacy of the proposed security and

surveillance measures inside and outside the cannabis

establishment.

(31) In the case of a cannabis establishment operated by

a cannabis retailer licensee, to ensure that the proposed

site plan is suitable for public access and that the layout

promotes the safe sale of cannabis and cannabis products,

facilitates safe and secure product handling and storage and

is compliant with the Americans with Disabilities Act of 1990

(Public Law 101-336, 104 Stat. 327).

(32) To adopt regulations authorizing the purchase or

20210HB2050PN2333 - 72 -

acquisition of hemp by a cannabis entity licensee from hemp

farmers or other persons engaged in the legal cultivation and

production of hemp in this Commonwealth. Nothing in this

paragraph shall be construed to give the board the authority

to assess a fee or charge on hemp farmers or other persons

who sell or offer hemp for sale to a cannabis entity licensee

for use in cannabis products or to otherwise regulate the

cultivation and production activities of hemp farmers or

other persons.

Section 305. Regulatory authority of board.

(a) Scope.--The board shall have all the duties, functions

and powers necessary and appropriate to enable the board to

administer and enforce this act. The regulatory authority of the

board extends to the regulation and control of persons that hold

a cannabis entity license or permit and any other person

authorized to engage in a regulated activity under this act.

(b) Regulatory authority.--The duties, functions and powers

of the board shall include, but not be limited to, the

following:

(1) Regulate the cultivation, processing, distribution,

transfer, storing, testing, transportation, delivery and sale

or offering for sale of cannabis and cannabis products under

this act.

(2) Fix, in consultation with the Department of

Agriculture, the standards of cultivation and processing of

cannabis and cannabis products to be sold or offered for sale

to cannabis consumers in this Commonwealth.

(3) Grant, suspend or revoke any license or conditional

license for the cultivation, processing, distribution,

storing, transporting, delivering, sale or offering for sale

20210HB2050PN2333 - 73 -

of cannabis and cannabis products or any other authorization

to engage in a regulated activity under this act and to

authorize the transfer of a cannabis entity license to

another person as provided under this act.

(4) Deny the renewal of, condition, suspend or revoke a

license, permit, certification or other authorization to

engage in a regulated activity under this act, if the board

finds in the board's sole discretion that a licensee,

permittee or holder of a certification or authorization to

engage in a regulated activity under this act or an officer,

employee or agent of the licensee, permittee or holder of a

certification or authorization have furnished false or

misleading information to the board or failed to comply with

this act or regulations of the board and that it would be in

the public interest to deny, deny the renewal of, revoke,

condition or suspend the license, permit, certification or

other authorization.

(5) Adopt, amend or rescind regulations as necessary and

appropriate to carry out the intent and provisions of this

act.

(6) Restrict access to confidential and proprietary

information and data in the possession of the board which has

been obtained under this act and ensure that the

confidentiality of information is maintained and protected.

Records shall be retained by the board for seven years.

(7) Prescribe and require periodic financial reporting

and internal and external security and accounting control

requirements for all cannabis entity licensees, permittees

and holders of an authorization to engage in a regulated

activity under this act.

20210HB2050PN2333 - 74 -

(8) Require each cannabis entity licensee to provide the

board with the cannabis entity licensee's audited annual

financial statements, with any additional financial details

that the board may request. The audited financial statements

shall be submitted not later than 90 days after the end of

the cannabis entity licensee's fiscal year.

(9) Enforce prescribed hours for the operation of

cannabis retailers on any day during the year in order to

meet the needs of patrons and competition or market demand.

(10) The following apply:

(i) Require that each cannabis retailer prohibit

persons under 21 years of age from entering the premises

of the cannabis retailer's cannabis establishment and

from purchasing cannabis or cannabis products.

(ii) Nothing in this paragraph shall be construed to

prohibit a cannabis retailer or any other cannabis entity

licensee from employing a person 18 years of age or older

or to prohibit a person 18 years of age or older from

entering a cannabis establishment in the performance of

the duties as an employee of a cannabis retailer licensee

or member of a first responder organization.

(iii) For the purposes of this paragraph, the term

"first responder organization" shall have the meaning

given to it under 35 Pa.C.S. § 7714(b) (relating to

soliciting by first responder organizations).

(11) Require each applicant for a cannabis entity

license to provide detailed site plans of the applicant's

proposed cannabis establishment, which shall be reviewed and

approved by the board for the purpose of determining the

adequacy of the proposed security and surveillance measures

20210HB2050PN2333 - 75 -

inside and outside the cannabis establishment. Applicants

shall cooperate with the board in making modifications or

adjustments to site plans and ensure that the modified site

plans, as approved by the board, are made.

(12) Inspect or provide authorization for the inspection

at any time of any cannabis establishment where cannabis is

cultivated, processed, stored, distributed, tested,

transported, sold or offered for sale.

(13) Prescribe forms of applications for licenses,

permits and any other authorization to engage in a regulated

activity under this act and of all reports deemed necessary

by the board.

(14) Appoint advisory groups and committees to provide

assistance to the board to carry out the purposes and

objectives of this act.

(15) Exercise the powers and perform the duties in

relation to the administration of the board as are necessary

but not specifically vested under this act, including, but

not limited to, budgetary and fiscal matters.

(16) Develop and establish minimum criteria for

certifying or registering employees to work in the cannabis

industry in positions requiring advanced training and

education.

(17) If public health, safety or welfare imperatively

requires emergency action and the board incorporates a

finding to that effect in an order, suspend a cannabis entity

license, effective on the date specified in the order or upon

service of a certified copy of the order on the cannabis

entity licensee, whichever is later, pending proceedings for

revocation or other action. The proceedings shall be promptly

20210HB2050PN2333 - 76 -

instituted and determined by the board. In addition, the

board may order the administrative seizure of cannabis or

cannabis products, issue a cease and desist order or take any

other action necessary to protect public health and safety

and effectuate and enforce the policy and purpose of this

act.

(18) Adopt and promulgate regulations and issue

declaratory rulings, guidance and industry advisories.

(19) No later than January 1, 2022, and by January 1 of

each year thereafter, compile an annual report on the

effectiveness of this act. In compiling the annual report,

the board may consult with the department, the Department of

Agriculture, the Office of the Attorney General, the

Pennsylvania State Police, the Department of Health, the

Department of Community and Economic Development and the

Department of Drug and Alcohol Programs. The report shall

include, but not be limited to, the following information:

(i) The number of licenses, permits and other

authorizations to engage in a regulated activity under

this act applied for by geographic region of this

Commonwealth and the number of licenses, permits and

other authorizations approved and issued or denied by

geographic region.

(ii) The economic and fiscal impacts associated with

this act, including tax revenue and revenue collected

from the payment of fees, fines and penalties related to

the regulation of cannabis under this act.

(iii) Specific programs implemented and progress, if

any, made by the board in achieving the goals of social

and economic equity and other social justice goals,

20210HB2050PN2333 - 77 -

including, but not limited to, restorative justice and

ensuring inclusion and participation by diverse

businesses and disadvantaged small businesses,

disadvantaged farmer-owned small businesses and service-

disabled-veteran-owned and veteran-owned small

businesses.

(iv) Demographic data on owners and employees in the

cannabis industry.

(v) Impacts to public health and safety, including

substance use disorder.

(vi) Impacts associated with public safety,

including, but not limited to, traffic-related issues,

law enforcement, underage prevention in relation to

accessing cannabis and cannabis products and efforts to

eliminate illicit cannabis and the market for illicit

cannabis and cannabis products in this Commonwealth.

(vii) Any other information or data deemed

significant.

(20) The following apply:

(i) The board may biennially make a report of

recommendations regarding the appropriate level of

taxation of cannabis and cannabis products, as well as

changes necessary to:

(A) promote and encourage inclusion and

participation by social and economic equity

applicants; and

(B) improve and protect the public health and

safety of the residents of this Commonwealth to

improve access and availability for substance use

disorder treatment programs.

20210HB2050PN2333 - 78 -

(ii) The initial report shall be submitted to the

Governor, the Majority Leader of the Senate, the Minority

Leader of the Senate, the Speaker of the House of

Representatives and the Minority Leader of the House of

Representatives no later than January 1, 2023, and

biennially thereafter.

(21) Consult with the department, the Department of

Agriculture, the Office of Attorney General, the Department

of Health, any other board, agency, commission or office of

the Commonwealth, representatives of the cannabis industry or

other persons the board deems necessary with respect to the

various aspects of the powers and duties of the board and the

regulation and control of cannabis under this act.

(22) Enter into contracts for the purposes of carrying

out the powers and duties of the board under this act.

(23) Investigate, through the bureau, any suspected or

actual violation of this act by a licensee, permittee or

other person authorized to engage in a regulated activity

under this act.

(24) Limit or prohibit, at the time of a declaration of

disaster emergency or other public health emergency or

natural disaster and without previous notice or

advertisement, the cultivation, processing, distribution,

storage, transportation, delivery or sale of any or all

cannabis and cannabis products for the period of an emergency

declaration.

(25) Hold hearings, subpoena witnesses, compel

attendance of witnesses, administer oaths and examine a

person under oath and to require the production of books or

records relative to the hearing or inquiry. A subpoena issued

20210HB2050PN2333 - 79 -

under this section shall be governed by the applicable

provisions of 42 Pa.C.S. (relating to judiciary and judicial

procedure).

(26) Inspect or provide authorization for the inspection

at any time of any cannabis establishment where cannabis or

cannabis products are cultivated, processed, stored,

transported, tested, distributed, sold or offered for sale.

(27) Enter into memoranda of understanding or agreements

with the Department of Agriculture, Department of Health,

Pennsylvania State Police or any other Commonwealth agency as

deemed appropriate to effectuate the policy and purposes of

this act.

(28) Assist in the prosecution of violations of this act

and other laws of this Commonwealth related to the legal

possession or sale of cannabis and cannabis products and to

cooperate with the prosecution of a violation of this act and

other laws.

(29) In addition to any fees established under this act,

establish fees that are reasonably calculated not to exceed

the cost of the activity for which the fee is imposed.

(30) Except as provided under this act, adopt

regulations prohibiting advertisements by cannabis entity

licensees that:

(i) depict cannabis and cannabis products in a

manner that is appealing to minors;

(ii) promote excessive use;

(iii) promote illegal activity; or

(iv) otherwise present a significant risk to public

health and safety.

(31) Establish the circumstances under which the board

20210HB2050PN2333 - 80 -

may purchase, seize, possess and dispose of cannabis and

cannabis products. The board may purchase, possess, seize or

dispose of cannabis and cannabis products as may be necessary

to ensure compliance with and the enforcement of this act.

(32) 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 board to ensure compliance

with the operational reporting requirements established under

this act and regulations of the board.

(33) Ensure that the seed-to-sale tracking system

utilizes a unique plant identification and unique batch

identification. Any secondary system used by a cannabis

entity licensee shall be configured to integrate with the

seed-to-sale tracking system of record in a form and manner

approved by the board.

(34) Ensure that the seed-to-sale tracking system is

configured to track the transfer of cannabis and cannabis

products between licensed cannabis entities. The tracking

system must be configured to include, but not be limited to,

procedures to:

(i) Prevent the diversion of cannabis and cannabis

products to criminal enterprises, gangs, cartels and

other states or jurisdictions.

(ii) Prevent persons from substituting,

adulterating, contaminating or tampering with cannabis

and cannabis products.

(iii) Ensure an accurate accounting of the

cultivation, processing and sale of cannabis and cannabis

products.

20210HB2050PN2333 - 81 -

(iv) Assist the department with ensuring that taxes

imposed under this act are collected and distributed as

provided under this act.

(v) Ensure that cannabis and cannabis products

undergo laboratory testing by a cannabis testing

laboratory and that test results are accurately reported

to the cannabis entity licensee that provided the sample

for testing.

(vi) Ensure compliance with the rules and

regulations adopted under this act.

(vii) Be capable of tracking, at a minimum:

(A) The propagation of immature cannabis plants

and the cultivation of cannabis by a cannabis

cultivator.

(B) The processing of cannabis and cannabis

products by a cannabis processor.

by a cannabis retailer to a cannabis consumer.

(D) The purchase and sale of cannabis and

cannabis products between cannabis entity licensees.

(E) The transfer or delivery of cannabis and

cannabis products between licensed cannabis entities

and licensed cannabis establishments.

(F) Licensees, employees and other persons

involved with cannabis and cannabis products.

(G) The amount of taxes imposed upon the retail

sale of cannabis and cannabis products.

(H) Any other information that the board

determines necessary to administer and enforce this

paragraph.

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(35) The following apply:

(i) Require each cannabis entity licensee to develop

and implement a workplace safety plan designed to inform

and prepare employees on how to respond during a fire,

accident or other emergency and to submit the specifics

of the plan to the board.

(ii) The plan may include a workplace first aid

training program, a fire safety plan, including periodic

fire drills, evacuation procedures and access

requirements for members of first responder

organizations.

(iii) Notwithstanding any other provision of this

act, employees and members of first responder

organizations may enter a cannabis establishment to

conduct fire drills and advise licensees and employees on

fire safety and effective evacuation procedures.

(iv) In developing a fire safety plan, a cannabis

entity licensee may adopt the guidance developed by the

National Fire Protection Association to govern marijuana

growing, processing and extraction facilities.

Section 306. Additional regulatory authority.

(a) Rules and regulations.--In addition to the board's

regulatory authority under section 305 and other provisions of

this act, the board shall adopt and promulgate regulations that

specify:

(1) The qualifications and selection criteria for

licensing, permitting, registration, certification or other

authorization to engage in a regulated activity under this

act.

(2) The books and records to be created and maintained

20210HB2050PN2333 - 83 -

by cannabis entity licensees, including the reports to be

made to the board, and the inspection of any and all books

and records maintained by each licensed cannabis entity,

including the books and records that must be maintained for

inspection on the premises of the cannabis entity's cannabis

establishment.

(3) The methods of cultivating or producing, processing

and packaging of cannabis and cannabis products, including

concentrated cannabis.

(4) The conditions of sanitation and sanitation

standards, including, but not limited to, the standards of

ingredients and quality and identity of cannabis cultivated,

processed, packaged, distributed, stored, sold or offered for

sale by cannabis entity licensees in this Commonwealth. The

board shall consult with the Department of Agriculture in

adopting sanitation standards and may incorporate any

standards or requirements adopted by the Department of

Agriculture to govern food safety, including the misbranding

and adulteration of food under 3 Pa.C.S. (relating to

agriculture).

(5) The security and surveillance standards for cannabis

establishments and safety and security protocols for

employees, cannabis consumers and other persons patronizing a

cannabis establishment.

(6) Hearing procedures and additional causes consistent

with the provisions of this act for the suspension or

revocation of a license, permit or other authorization to

engage in a regulated activity under this act.

(7) Procedures to prevent the sale and distribution of

cannabis and cannabis product to individuals under 21 years

20210HB2050PN2333 - 84 -

of age, including the modification of tobacco vaping products

for use with cannabis or cannabis products.

(8) Procedures to prevent the diversion of revenue from

the sale of cannabis and cannabis products to criminal

enterprises.

(9) Provisions to prevent the diversion of cannabis and

cannabis products from this Commonwealth to other states.

(10) In consultation with the Attorney General,

procedures to prevent cannabis and cannabis products that are

legal in this Commonwealth from being used as a cover or

pretext for the trafficking of other illegal controlled

substances or other illegal activity.

(11) In consultation with the Department of

Transportation, provisions to inform the public about drugged

driving and driving while impaired and the possible

exacerbation of other adverse public health consequences

associated with the use of cannabis and cannabis products.

(12) Requirements to prevent the cultivation of cannabis

on public lands.

(13) Provisions to inform the public about the

prohibition on the possession and use of cannabis and

cannabis products on land or property owned by the United

States.

(14) In consultation with the Department of Agriculture

and the Department of Environmental Protection, provisions to

govern the cultivation of cannabis, including water, electric

and energy usage and disposal and recycling methods,

restrictions on the use of fertilizers, pesticides and

herbicides and best practices for water and energy

conservation.

20210HB2050PN2333 - 85 -

(15) In consultation with the Department of Agriculture,

standards to govern the designation and labeling of cannabis

as being natural or a naturally cultivated agricultural crop.

(b) Employee identification cards.--The following apply:

(1) The board shall adopt and promulgate regulations to

require each cannabis entity licensee, permittee or other

person issued a license, permit or authorization to engage in

a regulated activity under this act to furnish identification

cards to the employees, contractors or subcontractors of the

licensee, permittee or other person. The board shall adopt a

standardize format for employee identification cards to

include:

(i) The name and license number of the cannabis

entity licensee, permittee or other person authorized to

engage in a regulated activity under this act employing

or contracting with the person.

(ii) The name of the cardholder.

(iii) The date of issuance and expiration.

(iv) A random 10-digit alphanumeric identification

number containing at least four numbers and at least four

letters which shall be unique to the individual issued

the identification card.

(v) A photograph of the cardholder.

(vi) A statement that the unauthorized use or

possession of an identification card could subject a

person to criminal prosecution.

(2) The regulations shall require that an employee,

contractor or subcontractor issued an identification card

under this subsection:

(i) Keep the identification card visible at all

20210HB2050PN2333 - 86 -

times when on the premises of a cannabis entity's

cannabis establishment or the premises of a permittee or

other person authorized to engage in a regulated activity

under this act.

(ii) Immediately report a lost or stolen

identification card to the cannabis entity licensee,

permittee or other person engaged in a regulated activity

under this act that issued the card to the employee,

contractor or subcontractor. The cannabis entity

licensee, permittee or other person shall, within 24

hours of notification of a lost or stolen identification

card, report the lost or stolen identification card to

the board and the Pennsylvania State Police.

(iii) Immediately return the identification card to

the cannabis entity licensee, permittee or other person

that employs the employee, contractor or subcontractor

upon termination of employment or performance of the

contract.

(iv) Restrict the use of identification cards to

work purposes only. A cannabis employee identification

card may not be used outside the premises of a cannabis

establishment to confirm the identity of the

identification cardholder.

Section 307. Temporary regulations.

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

implementation of this act, regulations promulgated by the board

shall be deemed temporary regulations which shall expire no

later than three years following the effective date of this

section. The board may promulgate temporary regulations, which

shall not be subject to:

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

1968 (P.L.769, No.240), referred to as the Commonwealth

Documents Law.

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

the Regulatory Review Act.

(b) Expiration.--The authority provided to the board to

adopt temporary regulations under subsection (a) shall expire

three years after the effective date of this subsection.

Regulations adopted after the three-year period under subsection

(a) shall be adopted and promulgated as provided by law.

Section 308. Cannabis entity application appeals from board.

The Supreme Court shall be vested with exclusive appellate

jurisdiction to consider appeals of a final order, determination

or decision of the board involving the approval, issuance,

denial or conditioning of a cannabis entity license.

Notwithstanding 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial

review of Commonwealth agency action) and 42 Pa.C.S. § 763

(relating to direct appeals from government agencies), the

Supreme Court shall affirm all final orders, determinations or

decisions of the board involving the approval, issuance, denial

or conditioning of a cannabis entity license, unless the Court

finds that the board committed an error of law or that the

order, determination or decision of the board was arbitrary and

there was a capricious disregard of the evidence.

Section 309. Hearing process.

The board's consideration and resolution of all issues

relating to licenses, permits or other authorizations to engage

in a regulated activity under this act shall be conducted under

2 Pa.C.S. (relating to administrative law and procedure) or with

procedures adopted by order of the board. Notwithstanding the

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requirements of 2 Pa.C.S. §§ 504 (relating to hearing and

record) and 505 (relating to evidence and cross-examination) as

those provisions relate to the conduct of oral hearings, the

board may adopt procedures to provide parties before the board

with a documentary hearing. The board may resolve disputed

material facts without conducting an oral hearing where

constitutionally permissible.

Section 310. Board minutes and records.

(a) Record of proceedings.--The board shall cause to be made

and kept a record of all proceedings held at public meetings of

the board. The verbatim transcript of board proceedings shall be

the property of the board and shall be prepared by the board

upon the request of a board member or other person and the

payment by that person of the costs of preparation, which costs

shall be specified by the board by regulation.

(b) Applicant information.--The following apply:

(1) The board shall maintain a list of all applicants

for licenses, permits and other authorizations to engage in a

regulated activity under this act. The list shall include a

record of all actions taken with respect to each applicant.

The list shall be open to public inspection during the normal

business hours of the board.

(2) Information under paragraph (1) regarding an

applicant whose license, permit, certification or other

authorization has been denied, revoked or not renewed shall

be removed from the list after seven years from the date of

the action.

other files and records as the board determines necessary and

appropriate to administer and enforce this act.

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(d) Confidentiality of information.--The following apply:

(1) The following information submitted by an applicant,

licensee, permittee or other person engaged in a regulated

activity under this act or obtained by the board or the

bureau as part of a background investigation or other

investigation or inquiry from any source shall be

confidential and withheld from public disclosure:

(i) All information relating to character, honesty

and integrity, including family, habits, reputation,

history of criminal activity, business activities,

financial affairs and business, and professional and

personal associations submitted to or otherwise obtained

by the board or the bureau.

(ii) Nonpublic personal information, including home

addresses, telephone numbers and other personal contact

information, Social Security numbers, educational

records, memberships, medical records, tax returns and

declarations, actual or proposed compensation, financial

account records, creditworthiness or financial condition

relating to an applicant, licensee, permittee or other

person engaged in a regulated activity under this act or

the immediate family of the applicant, licensee,

permittee or other person.

(iii) Information relating to proprietary

cultivation information, cultivation or processing

methods, trade secrets, patents or exclusive licenses,

architectural and engineering plans and information

relating to competitive marketing materials and

strategies, which may include customer-identifying

information.

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(iv) Security and surveillance information or plans,

including risk prevention plans, detection and

countermeasures, location of cultivation or processing

restricted access areas, information technology

facilities or redundancy technology facilities, emergency

management plans, safety protocols and theft and fraud

prevention plans and countermeasures.

(v) Information with respect to which there is a

reasonable possibility that public release or inspection

of the information would constitute an unwarranted

invasion into personal privacy of an individual as

determined by the board.

(vi) Financial information deemed confidential by

the board upon a showing of good cause by the applicant,

licensee or other person.

(2) A claim of confidentiality may not be made regarding

criminal history record information that is available to the

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

regulations).

(3) A claim of confidentiality may not be made regarding

a record in possession of the board that is otherwise

publicly available from a Commonwealth agency, local agency

or another jurisdiction or is subject to disclosure under the

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

to-Know Law.

(4) The following apply:

(i) Except as provided in this act and under

subparagraph (ii), information made confidential under

this section shall be withheld from public disclosure in

whole or in part.

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(ii) Confidential information shall be released upon

order of a court of competent jurisdiction or to the

Attorney General and may be released to the public, in

whole or in part, to the extent that the release is

requested by an applicant, licensee, permittee or other

person engaged in a regulated activity under this act and

does not otherwise contain confidential information about

another person.

(5) The board may seek a voluntary waiver of

confidentiality from an applicant, licensee, permittee or

other person engaged in a regulated activity under this act

but may not require an applicant, licensee, permittee or

other person to waive any confidentiality provided for in

this subsection as a condition for the approval of an

application or the issuance or renewal of a license or permit

or any other authorization or action of the board.

(6) The following apply:

(i) A current or former member and a current or

former employee, agent, independent contractor or

employee of an independent contractor of the board, the

department, the Department of Agriculture, the Office of

Attorney General or any other Commonwealth agency or

office who has obtained confidential information in the

performance of duties under this act may not

intentionally and publicly disclose the information to

any person, knowing that the information being disclosed

is confidential under this subsection, unless the person

to whom the information is disclosed is authorized by law

to receive the information.

(ii) A violation of this subsection constitutes a

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misdemeanor of the third degree. In addition, an

employee, agent, independent contractor or employee of an

independent contractor of the board who violates this

subsection shall be administratively disciplined by

discharge, suspension, termination of contract or other

formal disciplinary action as determined appropriate by

the board.

(iii) If a current member of the board violates this

paragraph, the chairperson of the board or a member of

the board designated by the chairperson shall refer the

matter to the current member's appointing authority.

(e) Notice.--Notice of the contents of information collected

and maintained by the board, except to a duly authorized law

enforcement agency under this section, may be given to an

applicant, licensee, permittee or other person engaged in a

regulated activity under this act in a manner prescribed by

regulation of the board.

(f) Information held by department.--Notwithstanding any

other provision of this act, files, records, reports, tax

returns and other information in the possession of the

department pertaining to licensees, permittees and other persons

engaged in a regulated activity under this act shall be made

available to the board as may be necessary for the effective

administration of this act.

Section 311. Selection criteria.

(a) Requirements.--The board shall promulgate and adopt

regulations to govern the board's consideration of applications

for a license, permit, certification or other authorization to

engage in a regulated activity under this act. The regulations

shall be based on, but not be limited to, the following

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criteria:

(1) The applicant is a social and economic equity

applicant.

(2) The applicant will be able to maintain effective

control against the illegal diversion of cannabis and

cannabis products.

(3) The applicant will be able to comply with all

applicable laws and regulations of this Commonwealth.

(4) The applicants and its officers, directors and

principals are ready, willing and financially able to

properly carry on the activities for which the license,

permit, certification or other authorization is sought,

including an applicant's obligations under sections 503(c)

and 504(c), if applicable.

(5) The applicant, including a social and economic

equity applicant, owns, possesses or has the rights to

sufficient land, buildings and equipment to properly perform

the activity or activities described in the application or

has a plan to acquire sufficient land, buildings and

equipment to perform the activities.

(6) The applicant:

(i) qualifies as a social and economic equity

applicant;

(ii) will locate or has proposed to locate the

applicant's cannabis establishment in a designated

opportunity zone; or

(iii) provides a plan to benefit communities in

designated opportunities zones.

(7) It is in the public interest that a license, permit,

certification or other authorization to engage in a regulated

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activity under this act be approved and issued by the board

based on the following:

(i) that it is a privilege and not a right to

cultivate, process, distribute, transport, deliver,

store, sell or offer for sale cannabis and cannabis

products in this Commonwealth;

(ii) the number and type of other proposed cannabis

establishments in proximity to the physical location of a

proposed cannabis establishment in the particular

municipality proposed in the applicant's application;

(iii) the effect on the availability of cannabis and

cannabis products;

(iv) evidence that all required licenses and permits

have been or will be obtained from the Commonwealth and

the municipality where the applicant's cannabis

establishment is proposed to be located;

(v) if an applicant is applying for a cannabis

retailer license, the effect, if any, on pedestrian or

vehicular traffic and parking in proximity to the

location of the proposed cannabis establishment; and

(vi) if the applicant is seeking a cannabis

cultivator license or a cannabis processor license, the

environmental impact of the proposed cannabis

establishment and the ability of the applicant to

mitigate adverse environmental impacts, including, but

not limited to, water usage and energy usage.

(b) Privileges granted; availability limited.--All

privileges granted by a license, permit, certification or other

authorization to engage in a regulated activity under this act

shall be available only to the person issued the license,

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permit, certification or other authorization and only for the

premises of the licensed cannabis establishment specified in the

application and for no other person, premises or cannabis

establishment. Nothing in this subsection shall preclude a

person from petitioning the board for a modification of or an

amendment to a license, permit, certification or other

authorization under this act.

Section 312. Collection of fees and fines.

(a) Power to levy and collect.--The following apply:

(1) The board shall have the power and duty to levy and

collect fees from applicants, licensees, permittees and other

persons seeking authorization to engage in a regulated

activity under this act to fund the operations of the board.

(2) In addition to the authority to levy and collect

fees under paragraph (1), the board shall have the authority

to impose a reasonable monthly seed-to-sale licensing fee on

licensees, permittees and other persons authorized to engage

in a regulated activity related to the cultivation,

processing or sale of cannabis and cannabis products under

this act. The seed-to-sale licensing fee shall be used by the

board to develop and maintain a cannabis plant monitoring

system to track the sale or transfer of cannabis and cannabis

products between cannabis entity licensees.

(b) (Reserved).

Section 313. Cannabis entity license fees.

(a) Establishment of fees.--

(1) Except as otherwise provided in this act, the board

shall establish a schedule for the payment of fees in

accordance with the requirements of this section.

(2) Each applicant for a cannabis entity license shall

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pay to the board, in the form, manner and at such time as

prescribed by regulation of the board, the following:

(i) a nonrefundable license fee;

(ii) a license renewal fee; and

(iii) a monthly verification system fee.

(3) Notwithstanding any provision of this act to the

contrary, the board may:

(i) Waive the application fees established under

this act and the monthly verification system fee

established by regulation of the board for any social and

economic equity applicant or cannabis microbusiness.

(ii) Increase or reduce, by regulation, the

multiplier under subsections (b)(1)(iii) and (e)(1) for

the indoor and outdoor cultivation of cannabis.

(b) Cannabis cultivator license fee.--

(1) The board shall use the licensing tier system under

section 604(d)(7) to calculate cannabis cultivator license

fees and license renewal fees. The following shall apply:

(i) Each applicant for a cannabis cultivator license

shall designate the tier at which the applicant shall be

initially licensed in the application for a cannabis

entity license.

(ii) The cannabis cultivator license fee shall be

based on or relative to the square feet of indoor or

outdoor canopy used or proposed to be used by the

cannabis cultivator to grow cannabis plants at any point

in time.

(iii) The cannabis cultivator license fee imposed by

the board under each licensing tier shall be calculated

by multiplying the square feet of indoor or outdoor

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canopy used or proposed to be used by the applicant or

cannabis cultivator licensee by $1.00.

(2) An applicant for a cannabis cultivator license or

cannabis cultivator licensee shall pay the relevant license

fee for each cannabis establishment operated by the cannabis

cultivator licensee.

(1) The board shall impose and collect:

(i) A license fee in the amount of $50,000 from an

applicant approved for and issued a cannabis processor

license.

(ii) A license fee in the amount of $30,000 from an

applicant approved for and issued a cannabis retailer

license.

(iii) A license fee in the amount of $20,000 from an

applicant approved for and issued a cannabis

microbusiness license.

(d) Reduction of license fee.--The license fee for a holder

of a cannabis cultivator license, cannabis processor license,

cannabis retailer license or cannabis transporter license that

is also a qualified social and economic equity applicant or a

cannabis microbusiness applicant shall be 50% of the amount for

the type of license applied for in accordance with the

applicable provisions of this act.

(e) Renewal fees.--Each person issued a cannabis entity

license under this chapter shall pay a license renewal fee to

the board in the following amounts:

(1) If the cannabis entity is a cannabis cultivator in

good standing, an amount determined by the board calculated

by multiplying the square feet of indoor or outdoor canopy

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used by the cannabis cultivator during the term of the

expired or expiring license multiplied by .50¢

(2) The sum of $25,000 for a cannabis processor license

in good standing.

(3) The sum of $15,000 for a cannabis retailer license

in good standing.

(4) For a holder of a cannabis cultivator, cannabis

processor, cannabis transporter or cannabis retailer license

that is a qualified social and economic equity licensee or a

cannabis microbusiness licensee, a sum equaling 50% of each

amount established for the renewal of a license under

subsections (b) and (c).

(5) No initial license fee shall be collected from the

holder of a conditional cannabis entity license who remitted

the relevant license fee to the board upon the issuance of

the conditional cannabis entity license.

(f) Fees not included.--The fees set forth in this section

shall not include any other fees that may be imposed and

collected by the board in accordance with the provisions of this

act or by regulation of the board.

(g) Term.--The following apply:

(1) A cannabis entity license shall be in effect unless

suspended, revoked or not renewed by the board upon good

cause as provided under this act.

(2) Except as otherwise provided in this act, each

cannabis entity licensee shall be required to update the

information in the cannabis entity licensee's initial

application biennially, and a cannabis entity license in good

standing shall be renewed biennially upon the payment of the

license renewal fee established in subsection (a)(2).

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(3) Nothing in this subsection shall relieve a licensee

of the affirmative duty to notify the board of changes

relating to the status of the license, permit or other

authorization or any other information contained in the

application materials on file with the board.

(h) Deposit of license fee.--The total amount of all license

fees imposed and collected by the board under this section shall

be deposited into the Cannabis Revenue Fund established in

section 1101.

(i) Change in ownership or control of a license.--In the

event that the ownership or control of a cannabis entity

licensee or an affiliate, intermediary, subsidiary or holding

company of a cannabis entity licensee is changed under section

508 and a return of the cannabis entity license fee is ordered,

the new owner shall be entitled to the return of the license fee

under subsection (j) as if the new owner or controlling interest

was the original licensee.

(j) Return of cannabis entity license fee.--The following

apply:

(1) The entire one-time cannabis entity license fee for

a cannabis entity license as imposed under subsection (a)

shall be returned to each licensee in the event section 301

or 303 is amended or otherwise altered by an act of the

General Assembly, within 10 years following the date

established by the board as the deadline for the initial

submission of cannabis entity license applications under

section 502, to change:

(i) The composition of the board.

(ii) The number of members appointed to the board.

(iii) The voting powers of members of the board.

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(iv) The manner in which members are appointed to

the board.

(v) The length of term for which each member serves.

(vi) The general jurisdiction of the board in a

manner that impairs or otherwise reduces the board's

licensing or regulatory authority.

(vii) By reducing, the number of permissible

cannabis entity licenses that may be issued by the board

under this act or to limit or prohibit the board's

authority to increase the number of cannabis entity

licensees to meet market demand under section 616.

(2) In the event that the General Assembly acts in the

manner described under paragraph (1):

(i) In the sixth year following the date established

by the board as the deadline for the initial submission

of cannabis entity license applications under section

502, a cannabis entity licensee shall be entitled to an

actual return of the initial cannabis entity license fee

in the amount totaling 60% of the initial license fee and

60% of the total amount of all renewal license fees paid

to the board under subsection (a).

(ii) In the seventh year, each cannabis entity

licensee shall be entitled to an actual return of the

initial cannabis entity license fee in an amount totaling

50% of the initial license and 50% of the total amount of

all renewal license fees paid to the board under

subsection (a).

(iii) In the eighth year, each cannabis entity

licensee shall be entitled to an actual return of the

initial cannabis entity license fee in an amount totaling

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40% of the initial license fee and 40% of all renewal

license fees paid to the board under subsection (a).

(iv) In the ninth year, each cannabis entity

licensee shall be entitled to an actual return of the

initial cannabis entity license fee in an amount totaling

30% of the initial cannabis entity license fee and 30% of

the total amount of all renewal license fees paid to the

board under subsection (a).

(v) In the tenth year, each cannabis entity licensee

shall be entitled to an actual return of the initial

cannabis entity license fee in an amount totaling 20% of

the initial cannabis entity license and 20% of the total

amount of all renewal license fees paid to the board

under subsection (a).

(3) In the event that the General Assembly acts in the

manner described under paragraph (1) after the expiration of

the 10-year period, no cannabis entity licensee shall be

entitled to a return of any portion of the initial cannabis

entity license fee or renewal license fee.

(4) Notwithstanding paragraph (3), no cannabis entity

licensee shall be entitled to the return of any portion of

the fee as a result of an act of the General Assembly insofar

as the act implements a recommendation made by the board

through a majority vote.

(5) Within 10 days following a determination that a

cannabis entity licensee is entitled to the return of any

portion of the cannabis entity license fee or renewal license

fee paid by the cannabis entity licensee under this act or

based on the contract executed by the cannabis entity

licensee and the department under subsection (k), the board

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shall immediately assess a one-time cannabis entity license

renewal fee on the cannabis entity licensee in an amount

equal to the amount of the fee returned to the cannabis

entity licensee. The renewal fee shall be paid by the

cannabis entity licensee within two business days following

the return of the initial fee.

(k) Credit against tax for cannabis entity licensees.--The

following apply:

(1) If the rate of the tax imposed under section 1001 or

1002 is increased at any time during the term of 10 years

following the initial issuance of the cannabis entity

license, the cannabis entity licensee shall be entitled to a

credit against subsequent payment of the tax equal to the

difference between the tax calculated at the rate when the

license was issued and the tax calculated at the increased

rate.

(2) The credit under paragraph (1) shall be applied on a

dollar-for-dollar basis as and when the tax is payable as

provided under sections 1001 and 1002 but shall not extend

beyond the 10-year period following the initial issuance of

the cannabis entity license.

(3) The aggregate amount of all credits provided shall

not exceed the amount of the licensing fee paid by the

licensee.

(4) The department shall enter into a contract with each

cannabis entity licensee explicitly stating the terms and

conditions of the tax credit and which also specifically

incorporates the requirements of subsection (j).

CHAPTER 4

SOCIAL AND ECONOMIC EQUITY

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Section 401. Office of Social and Economic Equity.

(a) Establishment and director.--The Office of Social and

Economic Equity is established within the board and shall be

under the immediate supervision of a director who shall be

appointed by and serve at the pleasure of the board. The

director shall receive an annual salary which shall not exceed

the annual salary of the executive director of the board.

(b) Powers and duties.--The office shall:

(1) Establish and administer, under the direction of the

board, unified practices and procedures to promote inclusion

and participation in the regulated cannabis industry by

persons from socially and economically disadvantaged

communities, including by prospective and existing ownership

of diverse businesses and disadvantaged businesses, as

defined under 74 Pa.C.S. § 303 (relating to diverse business

participation), service-disabled veteran-owned small

businesses and veteran-owned small businesses, as defined

under 51 Pa.C.S. § 9601 (relating to definitions) and

disadvantaged farmer-owned small businesses to be licensed,

permitted or otherwise authorized to engage in a regulated

activity under this act. The unified practices and procedures

shall:

(i) Include the certification and subsequent

recertification at regular intervals of a business as a

diverse business or disadvantaged business, including the

certification and recertification of service-disabled

veteran-owned small businesses and veteran-owned small

businesses and disadvantaged farmer-owned small

businesses, in accordance with eligibility criteria and

an application process established by the office in

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consultation with the board.

(ii) In certifying a diverse business and

disadvantaged business and a service-disabled veteran-

owned small business and veteran-owned small business,

adopt the processes and procedures developed and

implemented by the Department of General Services' Bureau

of Diversity, Inclusion and Small Business Opportunity

for certifying diverse businesses and disadvantaged

businesses and service-disabled veteran-owned small

businesses and veteran-owned small businesses. The

Bureau of Diversity, Inclusion and Small Business

Opportunity shall compile a list of certified diverse

businesses and disadvantaged businesses and service-

disabled veteran-owned small businesses and veteran-owned

small businesses.

(iii) Identify, in consultation with the Department

of Agriculture, disadvantaged farmer-owned small

businesses and include criteria for use in certifying or

otherwise authorizing disadvantaged farmer-owned small

businesses to engage in a regulated activity under this

act.

(iv) Not be precluded from adopting the list of

certified diverse businesses and disadvantaged businesses

or service-disabled veteran-owned small businesses and

veteran-owned small businesses compiled by the Department

of General Services in carrying out the requirements of

subparagraph (ii).

(2) Make recommendations to the board on relevant policy

and implementation matters relating to inclusion and

participation in this Commonwealth's regulated cannabis

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industry by individuals residing in and entities located in

designated opportunity zones and other socially and

economically disadvantaged communities, including by

prospective or existing ownership by diverse businesses and

disadvantaged businesses, service-disabled veteran-owned

small businesses and veteran-owned small businesses and

disadvantaged farmer-owned small businesses, as the office

deems appropriate.

(3) Conduct advertising and promotional campaigns and

disseminate information to the public to increase awareness

and promote inclusion and participation in this

Commonwealth's regulated cannabis industry by socially and

economically disadvantaged individuals, including through

prospective and existing ownership by certified diverse

businesses and disadvantaged businesses, service-disabled

veteran-owned small businesses and veteran-owned small

businesses and disadvantaged farmer-owned small businesses,

concerning the qualifications and application process for a

license, permit or other authorization to engage in a

regulated activity under this act.

(4) Develop a list that identifies certified diverse

businesses and disadvantaged businesses, service-disabled

veteran-owned small businesses and veteran-owned small

businesses and disadvantaged farmer-owned small businesses

and other farmers and persons engaged in agricultural

production for use by applicants for an expedited approval

cannabis entity license under sections 503 and 504 and

applicants for a cannabis entity license under section 505 to

carry out social and economic equity activities under Chapter

5. The list shall be transmitted to the Legislative Reference

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Bureau for publication in the Pennsylvania Bulletin and

posted on the board's publicly accessible Internet website on

a continuing basis. Revisions or updates to the list shall be

promptly transmitted to the Legislative Reference Bureau for

publication in the Pennsylvania Bulletin and posted on the

board's publicly accessible Internet website to ensure the

accuracy of the information delineated in the list.

(5) Sponsor webinars, seminars and other informational

programs, as well as provide information on the office's

publicly accessible Internet website, directed toward

socially and economically disadvantaged individuals and

prospective and existing diverse businesses and disadvantaged

businesses, service-disabled veteran-owned small businesses

and veteran-owned small businesses and disadvantaged farmer-

owned small businesses which may be useful to persons seeking

practical information on regulated activities under this act,

business management, marketing and other matters related to

the regulation of cannabis and cannabis products for personal

use.

(6) The following apply:

(i) At least annually, analyze the number of

licenses, permits and other authorizations to engage in a

regulated activity under this act issued by the board and

compare that analysis to the number of diverse businesses

and disadvantaged businesses, service-disabled veteran-

owned small businesses and veteran-owned small businesses

and disadvantaged farmer-owned small businesses that

submitted applications for a license, permit,

certification or other authorization to engage in a

regulated activity under this act.

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(ii) The office shall make a good faith effort to

establish, maintain and enhance the goals and measures

designed to promote inclusion and participation in

regulated activities under this act by socially and

economically disadvantaged individuals and small

businesses consistent with the standards specified in

this subsection, and to coordinate and assist the board

with respect to the incorporation of these licensing

measures into the application and review process for

issuing a license, permit, certification or other

authorization to engage in a regulated activity under

this act.

(1) The office may review policies and procedures

implemented by the board related to participation in the

regulated cannabis industry in this Commonwealth by socially

and economically disadvantaged individuals, diverse

businesses and disadvantaged businesses, service-disabled

veteran-owned small businesses and veteran-owned small

businesses and disadvantaged farmer-owned small businesses

and make recommendations to enhance equity, inclusion and

participation in this Commonwealth's regulated cannabis

industry.

(2) The office may consult with experts or other

knowledgeable persons in the public and private sectors and

industry stakeholders on any aspect of the office's powers

and duties under this section.

(d) Report.--Within two years of the effective date of this

subsection, and on a biennial basis thereafter, the office shall

compile a report that addresses inclusion and participation in

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this Commonwealth's regulated cannabis industry by individuals

from socially and economically disadvantaged communities and

designated opportunity zones, including through participation in

the commercial cannabis marketplaces by diverse businesses and

disadvantaged businesses, service-disabled veteran-owned small

businesses and veteran-owned small businesses and disadvantaged

farmer-owned small businesses.

Section 402. Cannabis Business Development Fund.

(a) Establishment of fund.--The Cannabis Business

Development Fund is established as a special fund within the

State Treasury. Money in the fund shall be held separate and

apart from all other Commonwealth money and shall be used

exclusively for the purposes enumerated in this chapter.

(b) Administration of fund.--The fund shall be administered

by the office in consultation with the board. In administering

the fund, the office may consult with private sector businesses,

organizations, agencies and other persons with proven experience

in promoting inclusion and diverse participation in programs and

activities of business and government, including the following

Commonwealth agencies:

(1) The Department of Community and Economic

Development.

(2) The Department of Transportation.

(3) The Pennsylvania Gaming Control Board.

(4) The Department of General Services.

(5) The Commonwealth Financing Authority.

required to be deposited into the fund under this act and all

other money which may be appropriated by the General Assembly

and any other money, grants, gifts, donations or contributions

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from any other source which may be made to the fund for the

purposes of subsection (d). Money in the fund is hereby

appropriated by the General Assembly for the purposes enumerated

in subsection (d).

(d) Use of fund.--The fund shall be used to:

(1) Provide low-interest loans and award grants to

social and economic equity applicants to pay for the ordinary

and necessary expenses to engage in a regulated activity

under this act, including, but not limited to, the operation

of a cannabis establishment as a cannabis entity licensee.

(2) Pay for outreach that may be provided or targeted to

attract and support social and economic equity applicants,

including diverse businesses and disadvantaged businesses,

service-disabled veteran-owned small businesses and veteran-

owned small businesses and disadvantaged farmer-owned small

businesses.

(3) Assist social and economic equity applicants with

business and technical assistance.

(4) Conduct or solicit studies or engage in or solicit

research concerning the inclusion and participation of

diverse businesses and disadvantaged businesses, service-

disabled veteran-owned small businesses and veteran-owned

small businesses and disadvantaged farmer-owned small

businesses in the commercial cannabis industry, including

barriers to individuals and small businesses entering or

seeking to enter the regulated cannabis industry as equity

owners of cannabis establishments or engaging in a regulated

activity under this act as a cannabis entity.

(5) Assist with job training and provide technical

assistance for residents of designated opportunity zones and

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other areas of this Commonwealth.

(6) Compensate the Department of Community and Economic

Development for the costs incurred in administering the

Social and Economic Equity Loan and Grant Program under

section 403.

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

contrary, the fund and money in the fund shall not be subject to

transfer, sweep or any other fiscal or budgetary maneuver which

would transfer or appropriate money in the fund into any other

fund, account or Commonwealth program funded through the State

Treasury or by any other Commonwealth agency or which may be

established by the General Assembly.

(f) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Fund." The Cannabis Business Development Fund.

Section 403. Social and Economic Equity Loan and Grant Program.

(a) Establishment.--The office, in collaboration with the

Department of Community and Economic Development, shall:

(1) Establish an education and training program for

social and economic equity applicants seeking to participate

in this Commonwealth's regulated cannabis industry.

(2) Establish a grant and low-interest loan program to

provide financial assistance to social and economic equity

applicants.

(3) Develop financial, technical, marketing and business

development training programs to assist social and economic

equity applicants in gaining entry to, and successfully

operating in, this Commonwealth's regulated cannabis

marketplace as a qualified social and economic equity

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licensee.

(4) Collaborate with the Department of Agriculture in

developing agriculture-specific programs for social and

economic equity applicants and other applicants on

sustainable cultivation and crop production measures and

activities.

(5) Establish the terms and conditions of loans and

grant assistance.

(6) Fix, determine, charge and collect premiums or

reasonable fees, charges, costs and expenses, including

application fees, commitment fees, program fees, financing

charges or publication fees, which may be imposed in

connection with the office's activities under this section.

(7) Engage with private sector entities, agencies of the

Commonwealth and local governments to carry out the purposes

of this chapter.

(8) Coordinate the financial assistance provided under

the grant and loan program established under this section

with financial assistance programs and other activities

administered by the Department of Agriculture and other

Commonwealth agencies, if any, to maximize the effectiveness

and efficiency of the financial assistance programs

authorized under this act.

(9) On a continuing basis, collaborate with the

Department of Agriculture, the Department of Community and

Economic Development and any other Commonwealth agency to

secure the services of employees of the Department of

Agriculture and the Department of Community and Economic

Development and any other Commonwealth agency to provide

guidance and assistance in carrying out the requirements of

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this chapter. The Department of Agriculture, the Department

of Community and Economic Development and Commonwealth

agencies shall cooperate with the office and the board in

carrying out the requirements of this paragraph.

(10) Consult with the Attorney General to initiate

actions which may be necessary to protect the interest of the

Commonwealth in the event of bankruptcy, default, foreclosure

or noncompliance with the terms and conditions of financial

assistance provided under this section, including the ability

to recapture money if the recipient is found to be

noncompliant with the terms and conditions of the financial

assistance agreement. The board may enter into a memorandum

of understanding with the Office of Attorney General to carry

out the purposes of this paragraph.

(11) Establish application, notification, contract and

other forms, procedures or rules deemed necessary and

appropriate to carry out the requirements of this section.

(12) Utilize vendors or enter into contracts with

persons or entities to carry out the purposes of this

section.

(b) Social and economic equity loans.--A loan made under

this section:

(1) may only be made, if, in the judgment of the office,

the project furthers the goals of equity, diverse

participation and inclusion in this Commonwealth's regulated

cannabis industry; and

(2) shall be in a principal amount and form and contain

terms and provisions with respect to security, insurance,

reporting, delinquency charges, default remedies and other

matters as the office, in consultation with the Department of

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Community and Economic Development, determines appropriate to

protect the public interest and be consistent with the

purposes of this section. The terms and provisions may be

less than required for similar loans provided by the

Commonwealth.

and awarded under this section shall be awarded on a competitive

basis and shall be in amounts necessary to carry out the

purposes of this chapter as determined by the office.

(d) Reports.--Beginning January 31, 2022, and each January

31 thereafter, the office, in collaboration with the Department

of Agriculture and the Department of Community and Economic

Development, shall submit a report to the Governor and the

General Assembly on the activities of each Commonwealth agency

under this chapter and the outcomes and effectiveness of this

chapter in promoting equity and increasing inclusion and diverse

participation in this Commonwealth's regulated cannabis

industry. The report shall include, but may not be limited to,

the following:

(1) The number of social and economic equity applicants

who were issued a license, permit or other authorization to

engage in a regulated activity under this act and the number

of qualified social and economic equity licensees receiving

financial assistance under this section.

(2) The amount of grant assistance awarded to qualified

social and economic equity licensees, in the aggregate.

(3) The number and amount of loans made to qualified

social and economic equity licensees and the amount of loans

made that are outstanding.

(4) The location of projects engaged in by qualified

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social and economic equity licensees and identification of

cannabis entity licensees and other persons or businesses

providing, that will provide or that provided assistance to

qualified social and economic equity licensees to help

advance the project.

(5) The number of new jobs and other forms of economic

development created as a result of the financial assistance

awarded under this section.

(e) Certain community outreach required.--The office, in

collaboration with the board and the Department of Community and

Economic Development, shall develop culturally and

linguistically appropriate activities designed to facilitate,

promote and include engagement with individuals with limited

English proficiency in all programs and outreach undertaken to

support, engage, target and otherwise attract social and

economic equity applicants to participate in this Commonwealth's

regulated cannabis industry.

Section 404. Fee waivers.

(a) Authority to waive.--In the case of social and economic

equity applicants, the board shall waive 50% of the

nonrefundable fees associated with obtaining and renewing a

cannabis entity license and any surety bond or other financial

requirements, if a social and economic equity applicant meets

the following qualifications at the time the payment is due:

(1) the social and economic equity applicant, including

all individuals and entities with 10% or greater ownership

and all parent companies, subsidiaries and affiliates of the

applicant, had less than $750,000 of total income in the

previous calendar year; and

(2) the social and economic equity applicant, including

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all individuals and entities with 10% or greater ownership

and all parent companies, subsidiaries and affiliates of the

applicant, has no more than two other cannabis entity

licenses in this Commonwealth.

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

economic equity applicants to attest to meeting the requirements

for a fee waiver under subsection (a) and to provide evidence of

annual total income in the previous calendar year.

applicant that applied for a cannabis entity license as a social

and economic equity applicant does not qualify as a social and

economic equity applicant, the board shall:

(1) Give the social and economic equity applicant 10

days to present evidence that the applicant qualifies as a

social and economic equity applicant or allow the applicant

to opt to pay the balance of a waived or reduced fee and not

be considered as a social and economic equity applicant.

(2) If the social and economic equity applicant fails to

act as provided under paragraph (1) within the 10-day period,

retain the initial application fee paid under subsection (a)

and reject the applicant's application.

Section 405. Transfer of cannabis entity license.

(a) Transfer requirement.--If a qualified social and

economic equity cannabis entity licensee seeks to transfer, sell

or grant the licensee's cannabis entity license to a person that

does not qualify as a qualified social and economic equity

licensee, the agreement to transfer, sell or grant the cannabis

entity license to another person shall include a requirement

that the person receiving a cannabis entity license held by the

social and economic equity licensee shall pay the Cannabis

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Entity Development Fund an amount equal to:

(1) The balance of the fees waived by the board or any

Commonwealth agency based on the applicant's status as a

qualified social and economic equity licensee, if applicable.

(2) Any outstanding amount owed by the qualified social

and economic equity applicant or licensee for a loan made

through the Cannabis Business Development Fund, if

applicable.

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

social and economic equity applicant or licensee received

from the Cannabis Business Development Fund.

(4) A license transfer fee of $1,000,000, 50% of which

shall be deposited into the Cannabis Business Development

Fund. The remaining 50% shall be deposited into the Cannabis

Revenue Fund.

(b) Transfers subject to act.--Any transfer, sale or grant

of a cannabis entity license held by a qualified social and

economic equity applicant or licensee to another person shall be

subject to this act and any rules and regulations promulgated by

the board related to the transfer or change of ownership of a

cannabis entity license.

Section 406. Required reports.

On December 31, 2022, and on December 31 of each year

thereafter, or upon request by the board, each cannabis entity

licensee shall report to the board, on a form and in a manner

provided by the board, information of a scope and sufficiency

that will allow the board to assess the extent of social and

economic equity inclusion and participation programs and

activities in this Commonwealth's regulated cannabis industry

and develop recommendations and measures to reduce or eliminate

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identified barriers to entry, including access to capital. The

information to be collected and reported shall identify the

following:

(1) The status of each cannabis entity licensee's social

and economic equity plan or the social and economic equity

activities adopted and implemented by each licensee.

(2) The total number and percentage of employees

employed by and the number of contractors and vendors engaged

in business with each cannabis entity licensee who meets the

criteria enumerated in the definition of "social and economic

equity applicant" or who are people of color, women,

veterans, service-disabled veterans or disadvantaged farmers.

(3) The total number and percentage of contractors and

subcontractors engaged by the cannabis entity licensee who

meet the criteria enumerated in the definition of "social and

economic equity applicant" or that are diverse businesses or

disadvantaged businesses, service-disabled veteran-owned

small businesses or veteran-owned small businesses or

disadvantaged farmer-owned small businesses, if known by the

cannabis entity licensee.

(4) Recommendations to reduce or eliminate identified

barriers to entry, including access to capital by social and

economic equity applicants, including diverse businesses and

disadvantaged businesses, service-disabled veteran-owned

small businesses or veteran-owned small businesses and

disadvantaged farmer-owned small businesses, in this

Commonwealth's regulated cannabis industry.

CHAPTER 5

REGULATION OF CANNABIS

Section 501. Regulation of cannabis.

20210HB2050PN2333 - 118 -

(a) Adoption of temporary regulations.--Within 90 days of

the effective date of this section, the board shall adopt and

promulgate temporary regulations necessary for the

implementation of this act. The regulations shall be consistent

with the intent of this act and shall not be designed to hinder

the operation of cannabis establishments by cannabis entities,

either expressly or through regulations, in a manner that makes

operation unreasonably impracticable. In addition to subsequent

permanent regulations required under this act, temporary

regulations adopted by the board shall include, but not be

limited to, the following:

(1) Procedures for the issuance, denial, renewal,

suspension and revocation of a license or conditional license

to operate a cannabis establishment by an applicant for a

cannabis entity license. The procedures shall include a

biennial evaluation of whether the number of each class of

cannabis entity license is sufficient to meet market demand.

The board shall use the results of each biennial evaluation

to determine whether to issue a request for new applications

and to issue additional licenses as the board deems necessary

to meet market demand under section 616. The board shall

transmit requests for the submission of additional

applications for a cannabis entity license to the Legislative

Reference Bureau for publication in the Pennsylvania Bulletin

and shall post requests and submissions on the board's

publicly accessible Internet website.

(2) Incorporate licensing goals for social and economic

equity applicants and cannabis microbusiness applicants who

are residents of this Commonwealth. The board shall make a

good faith effort to meet the resident licensing goals.

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Qualification for licensure shall be directly and

demonstrably related to the operation of a cannabis

establishment, provided that the board shall make licenses

available to as diverse a group as possible. Except as

otherwise provided in this act, the temporary regulations and

subsequent permanent regulations shall include a prohibition

on the issuance of a license, permit or other authorization

to engage in a regulated activity to an individual under 21

years of age.

(3) Measures established by the office to promote

participation by social and economic equity applicants,

including applicants from designated opportunity zones.

(4) Security and surveillance requirements for cannabis

establishments.

(5) Requirements to prevent the sale or diversion of

cannabis and cannabis products to persons under 21 years of

age, including, but not limited to, requirements that:

(i) All licensees, employees or agents of a cannabis

retailer licensee, prior to permitting entrance into a

cannabis establishment and selling or serving cannabis or

a cannabis product to an individual, shall require the

individual to produce one of the following forms of

identification:

(A) the individual's passport;

(B) the individual's driver's license or REAL

ID, whether issued by the Commonwealth or by another

state if the license or REAL ID has not expired and

displays a photograph of the individual;

issued by the Department of Transportation;

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(D) a United States military identification

card; or

(E) any other valid identification card issued

by the Federal Government, the Commonwealth or

another state or jurisdiction that displays the

photograph, name, date of birth and physical

description of the individual.

(ii) A cannabis entity licensee may not employ an

individual under 18 years of age.

(iii) A cannabis retailer may not allow an

individual under 21 years of age to purchase cannabis or

a cannabis product or to enter or remain on the premises

of the cannabis retailer's cannabis establishment.

(6) Packaging and branding regulations to prevent the

marketing of cannabis, cannabis products and cannabis

paraphernalia to individuals under 21 years of age.

(7) Labeling and packaging requirements for cannabis,

cannabis products and cannabis paraphernalia cultivated,

processed, stored, distributed, transported, delivered, sold

or offered for sale, including, but not limited to,

requirements that:

(i) Cannabis, cannabis products and cannabis

paraphernalia are not packaged, branded or marketed using

any statement, illustration, artwork or image that:

(A) includes a false statement;

(B) promotes abuse or overconsumption;

or appears to be under the legal age to purchase and

consume cannabis or a cannabis product; or

(D) includes images or objects, including toys,

20210HB2050PN2333 - 121 -

characters or cartoon characters depicting or

suggesting or appearing to suggest the presence of an

individual under the legal age to purchase cannabis

or cannabis products or any words, phrases, lyrics,

slogans or depictions designed in any manner to be

appealing to individuals under the legal age to

purchase cannabis and cannabis products, including

the use of the words "candy," "candies," "gummies" or

"lollipops."

(ii) Ensure cannabis and cannabis products are

packaged in child-resistant containers or packaging.

(iii) Cannabis and cannabis products warning labels

display information that adequately informs consumers

about safe cannabis use and warns of the consequences of

misuse or overuse.

(iv) Labeling standards provide clear and

understandable health and safety information, including,

but not limited to:

(A) Net weight.

(B) Production date and expiration date.

ingredients used to cultivate and process the

cannabis or cannabis product but shall include all

potential allergens contained within the cannabis or

cannabis product.

(D) Strain or type of cannabis, listed by

scientific terms, if available, and generic or

"slang" names.

(E) Whether the cannabis product requires

refrigeration.

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(F) Cultivation method, whether dirt grown,

hydroponic, aeroponic or otherwise, and an indication

whether the cannabis was cultivated using all natural

or organic materials.

(G) Serving size, the total number of servings

and a statement regarding the percentage of THC

contained in the cannabis or cannabis product and in

each serving. For example: "The serving size of

active THC in this product is X mg. This product

contains X servings of cannabis, and the total amount

of active THC in this product is X mg."

(H) Warning labels that include, but are not

limited to, one or more of the following:

"This product contains cannabis."

"This product is infused with cannabis."

"This product is intended for use by adults

21 years of age or older. Keep out of reach of

children."

"The intoxicating effects of this product may

be delayed by two or more hours."

"There may be health risks associated with

the consumption of this product, including for

women who are pregnant, breastfeeding or planning

to become pregnant or breastfeed."

"Women who are pregnant or planning to become

pregnant or breastfeeding or planning to

breastfeed should not consume this product."

"Do not drive a motor vehicle or operate

equipment or heavy machinery while or after

consuming cannabis or a cannabis product."

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(I) Labeling rules that mandate the source of

cannabis or cannabis product, including, but not

limited to:

(I) The license number of the cannabis

cultivator where the cannabis was cultivated, or

where the cannabis used to process or produce

cannabis products was cultivated.

(II) The license number of the cannabis

processor that processed or produced the cannabis

or cannabis product.

(III) The license number of the cannabis

retailer that sold the cannabis or cannabis

product and the production batch and lot numbers

of the cannabis used to produce the cannabis

product.

(IV) The batch or lot number, if determined

necessary by the board.

(8) Health and safety standards and protocols for the

cultivation, processing, storing, transporting, delivering

and sale or offering for sale of cannabis and cannabis

products, including, but not limited to, requirements that:

(i) Establish accreditation and licensure standards

or criteria for cannabis testing laboratories.

(ii) Ensure a sufficient number of cannabis testing

laboratories to test cannabis cultivated and cannabis

products processed and sold or offered for sale in this

Commonwealth which meet the health and safety standards

adopted by the board.

(iii) Prescribe conditions of sanitation, safe

handling requirements, approved pesticides and

20210HB2050PN2333 - 124 -

herbicides, pesticide and herbicide testing requirements

and standards of ingredients, quality and identity of

cannabis cultivated and cannabis products produced,

processed, packaged, stored, transported or sold or

offered for sale by a cannabis entity licensee.

(iv) Establish accreditation and certification

criteria for cannabis employees and certification

programs for employees of cannabis retailers.

(v) Prohibit the consumption of cannabis and

cannabis products on the premises of a cannabis

establishment by an employee of a cannabis entity

licensee and any other person.

(vi) Set appropriate serving size limits for

cannabis and cannabis products.

(vii) Require that each single standardized serving

of cannabis in a multiple-serving edible cannabis product

is physically demarked in a way that enables a reasonable

individual to determine how much of the cannabis product

constitutes a single serving of active THC, and that each

standardized serving of cannabis be easily separable to

allow a person 21 years of age or older to physically

separate, with minimal effort, individual servings of the

cannabis product and prevent opening or access by minors.

(viii) Require that, if it is impracticable to

clearly demark every standardized serving of cannabis or

to make each standardized serving easily separable in an

edible cannabis product, the cannabis product contain no

more than 10 milligrams of active THC per unit of sale.

(ix) Establish screening, hiring, training and

supervision requirements for employees of cannabis

20210HB2050PN2333 - 125 -

retailer licensees who process or handle cannabis or

cannabis products.

(x) Promote general sanitary requirements for the

handling, storage and disposal of cannabis and cannabis

products and the maintenance of the premises of cannabis

establishments.

(xi) Provide for rigorous auditing, inspection and

monitoring of cannabis establishments for compliance with

health and safety standards and protocols established by

regulation of the board.

(xii) Require the implementation of security and

surveillance requirements for cannabis establishments and

premises of cannabis establishments where cannabis and

cannabis products are cultivated, processed and stored,

and safety protocols for cannabis establishments and

employees.

(xiii) Prescribe reasonable restrictions on the

manner, methods and means by which cannabis entity

licensees transport cannabis and cannabis products within

this Commonwealth.

(xiv) Establish procedures for identification,

seizure, confiscation, destruction or donation to law

enforcement for training purposes of cannabis and

cannabis products that do not conform in all respects to

the health and safety standards prescribed in board

regulations.

(9) (i) Restrictions on the advertising and display of

cannabis, cannabis products and cannabis paraphernalia,

including, but not limited to, requirements that:

(A) Restrict advertising of cannabis, cannabis

20210HB2050PN2333 - 126 -

products and cannabis paraphernalia in ways that

target or are designed to appeal to individuals under

21 years of age to purchase cannabis, cannabis

products and cannabis paraphernalia, including, but

not limited to:

(I) A depiction or image of an individual

who is or appears to be under 21 years of age

consuming cannabis or a cannabis product or using

cannabis paraphernalia

(II) Objects or images, including toys,

characters or cartoon characters suggesting the

presence of an individual who is or appears to be

under 21 years of age.

(III) Other depictions, words, phrases,

lyrics or slogans designed or used in any manner

to be especially appealing to children, including

the use of images, words, phrases, emojis, lyrics

or slogans indicating or depicting candy or

candies, gummies or lollipops.

(B) A cannabis entity licensee may not advertise

any sale or product promotions, except under

regulations adopted and promulgated by the board. The

regulations promulgated by the board shall include,

but not be limited to, the following:

(I) The manner in which a sale or product

promotion may be advertised, including over

social media platforms.

(II) Required content which must be included

or excluded in advertisements designed to be

aired on television or radio or sent by text

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message, electronic mail or over the Internet,

including over social media platforms, or any

mobile application.

(III) The hours of the day during which

advertisements may not be aired, if the board

determines that establishing a period of time

within a 24-hour period during which

advertisements may not be aired is in the public

interest and would not be detrimental to this

Commonwealth's commercial cannabis industry.

advertising unless the cannabis entity licensee has

reliable evidence that the audience for the

advertisement is reasonably expected to be 21 years

of age or older.

(D) A cannabis entity licensee may not engage in

advertising or marketing directed towards location-

based devices, including, but not limited to,

cellular telephones, tablets or other devices or

technology, unless the marketing is a mobile device

application installed on the device by the owner of

the device who is 21 years of age or older and

includes a permanent and easy opt-out feature and

warnings that the sale, offering for sale, and use of

cannabis and cannabis products is restricted to

persons 21 years of age or older.

(E) Except as provided in section 803, a

cannabis entity licensee may not sponsor a

charitable, sports, musical, artistic, cultural,

social or other similar event or engage in

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advertising at or in connection with an event, unless

the cannabis entity licensee has reliable evidence

that the audience at the event is reasonably expected

to be 21 years of age or older.

(F) All advertisements involving the marketing

of cannabis and cannabis products shall contain the

following warning: "This product contains cannabis.

For use only by adults 21 years of age or older. Keep

out of reach of children."

(G) A cannabis entity licensee may not place or

maintain, or cause to be placed or maintained, an

advertisement of cannabis, cannabis products or

cannabis paraphernalia in any form or through any

medium whatsoever within 1,000 feet of a school or

school grounds, park, playground, recreational

center, arcade facility, library or any other place,

building or establishment used or primarily used or

patronized by children.

(ii) For the purposes of this paragraph, a

noncommercial message shall not be considered an

advertisement. This section shall not apply to

advertisements within the premises of cannabis

establishment operated by a cannabis retailer.

(10) A requirement that only cannabis, cannabis products

and cannabis paraphernalia are available for sale or offered

for sale at a cannabis retailer's cannabis establishment,

unless authorized otherwise by the board by regulation.

Nothing in this paragraph shall be construed to prohibit a

cannabis retailer licensee from selling or offering for sale

common snack and nonalcoholic beverage products, souvenir and

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gift items and other such merchandise, provided that the

intent to sell products, items and merchandise is included in

the application for licensure and is approved by the board.

(11) Procedures for the board to conduct announced and

unannounced visits to a cannabis establishment to make or

cause to be made investigations for the efficient and proper

administration of this act and any other laws which may be

enacted concerning cannabis or the cultivation, processing,

distribution, testing, transportation, delivery, sale or

offering for sale of cannabis or cannabis products, including

the inspection of the premises of a proposed cannabis

establishment or the inspection and search of a cannabis

entity's cannabis establishment, the search of associated

buildings and the inspection and examination of the books,

records, accounts, documents and papers of the cannabis

entity licensee. The following apply:

(i) Notwithstanding any other provision of this act,

the board is authorized, after adequate notice to the

cannabis entity licensee or a designated employee or

agent of the cannabis entity licensee, to examine the

books, records and other documents, and may at any time

inspect the cannabis establish of the cannabis entity

licensee to determine compliance with this act and

regulations of the board. The board may, at the board's

discretion, require that the books, records and other

documents of the cannabis entity licensee be kept and

maintained on the premises of the cannabis establishment.

(ii) During an inspection of a cannabis

establishment, the board may require proof that an

individual working at the cannabis establishment is 18

20210HB2050PN2333 - 130 -

years of age or older. If the individual does not provide

the board with acceptable proof of age upon request, the

board may require the individual to immediately cease

activity and leave the cannabis establishment until the

board receives acceptable proof of the individual's age.

(iii) The board may not be required to obtain a

search warrant to conduct an investigation or search of

cannabis establishment.

(12) Recordkeeping requirements, including, but not

limited to, the following:

(i) A requirement that:

(A) Each cannabis cultivator compile and

maintain a complete and accurate record of the

following:

(I) All sales of cannabis flowers, cannabis

leaves, immature and mature cannabis plants and,

if applicable, cannabis seeds.

(II) The number of cannabis flowers

produced.

(III) The number of ounces of cannabis

leaves produced.

(IV) The number of immature cannabis plants

produced.

(V) The number or amount of cannabis seeds

produced or acquired.

(VI) The dates of production or acquisition

under subclauses (I), (II), (III), (IV) and (V).

(B) Each cannabis entity licensee compile and

maintain a complete and accurate record of all sales

and transfers of cannabis and cannabis products and a

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complete and accurate record of the number of ounces

of cannabis products sold.

retain personal identifying information of a cannabis

consumer. Nothing in this clause shall be construed

to prohibit a cannabis retailer from retaining

personal identifying information with the consent of

the cannabis consumer.

(ii) The records required to be maintained under

subparagraph (i) shall be kept and maintained for two

years in the form and manner as the board may require.

(iii) The board may at any time appoint auditors,

investigators and other employees that the board deems

necessary to carry out this act.

(13) Procedures for inspecting samples of cannabis

products, including:

(i) The submission, by a cannabis cultivator or

cannabis processor, on a schedule determined by the

board, of representative samples of cannabis or useable

cannabis grown by the cannabis cultivator or cannabis

products produced or processed by the cannabis processor

to a cannabis testing laboratory approved by the board

for inspection and testing to certify compliance with

standards adopted by the board. Any sample remaining

after testing may be destroyed by the testing facility or

returned to the licensee under board regulations.

(ii) The submission by licensees of the results of

inspection and testing to the board in the form, manner

and at the time as required by regulation of the board.

(iii) The destruction of a representative sample

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inspected and tested under this act that does not meet

the safety standards adopted by the board. The entire lot

from which the sample was taken may be destroyed at the

time and in the manner prescribed by regulation of the

board.

(14) The circumstances or adverse events which may occur

at a cannabis entity's cannabis establishment which would

require the retesting of cannabis or a cannabis product

cultivated, processed, stored or otherwise held at the

cannabis establishment, including, but not limited to, a

process for retesting batches that have been remediated by

extraction or other means by a cannabis cultivator licensee

or cannabis processor licensee or where the results of the

original test may not be reliable.

(15) The number of cannabis retailer licensees as

follows:

(i) If there are sufficient qualified applicants for

cannabis retailer licenses, the board shall issue up to

293 cannabis retailer licenses as follows:

(A) at least one cannabis retailer license per

legislative district; and

(B) 90 at-large cannabis retailer licenses of

which 75% shall be designated for:

(I) qualified social and economic equity

applicants;

(II) diverse businesses and disadvantaged

businesses, service-disabled veteran-owned small

businesses and veteran-owned small businesses and

disadvantaged farmer-owned small businesses; and

(III) small businesses under subclause (II)

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that are located or proposed to be located in a

designated opportunity zone.

retailer licenses under clause (B) shall be

designated for persons certified as clinical

registrants under Chapter 20 of the Medical Marijuana

Act.

(ii) In determining the maximum number of cannabis

retailer licenses which may be awarded under this

paragraph, the board shall consider:

(A) To meet the market demand of this

Commonwealth, geographic and population density,

including seasonal fluctuations in population

throughout this Commonwealth; and

(B) Adequate access to cannabis cultivators and

cannabis processors to supply cannabis and cannabis

products to cannabis retailers in order to discourage

purchases from the illegal market.

(16) The following apply:

(i) Notwithstanding section 2002(b)(7), (8) or (9)

of the Medical Marijuana Act, any regulation promulgated

under the Medical Marijuana Act, any provision of this

act or any other law or regulation to the contrary,

procedures and protocols to govern the following:

(A) the sale of cannabis and cannabis products

by clinical registrants that hold a valid

grower/processor permit issued under section 2002(a)

of the Medical Marijuana Act to cannabis processors

or cannabis retailers that hold a valid cannabis

entity license under this act; and

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(B) the sale of or exchange of cannabis seeds,

immature cannabis plants, cannabis flowers, cannabis

leaves or cannabis extract, resin or concentrate by a

clinical registrant that holds a valid

grower/processor permit under the Medical Marijuana

Act to a person that holds a valid cannabis

cultivator license or cannabis processor license

under this act.

(ii) For the purposes of this paragraph:

(A) The term "cannabis" shall be construed to

mean "marijuana" or "medical marijuana" as defined or

otherwise used in the Medical Marijuana Act.

(B) The term "clinical registrant" shall have

the meaning given to it in section 2001 of the

Medical Marijuana Act.

(17) Conditions under which cannabis cultivated or grown

by a cannabis cultivator licensee or cannabis processed by a

cannabis processor licensee may be donated for research

purposes to an academic clinical research center and clinical

registrant under Chapter 20 of the Medical Marijuana Act.

(18) Procedures for use by cannabis processors for the

registration of cannabis products processed by cannabis

processors. Each request for cannabis product registration

submitted to the board shall:

(i) Include a registration label with a product

registration number.

(ii) Require a reasonable registration fee, which

shall be established by regulation of the board and shall

be for the name of the cannabis product offered for sale.

(iii) Require only one registration fee for all

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package sizes.

(19) Administrative sanctions and civil penalties for

violating a regulation of the board.

(b) Privacy protected.--The following apply:

(1) Except as provided in this act, regulations adopted

by the board under this section and subsequent permanent

regulations shall not require a cannabis consumer to provide

a cannabis retailer any personal identifying information

other than a form of identification specified under

subsection (a)(5)(i) to verify the cannabis consumer's age.

(2) A cannabis retailer shall not, without the consent

of the cannabis consumer, collect or maintain any personal

identifying information from a cannabis consumer other than

information typically acquired in a financial transaction,

which shall not be retained by the cannabis retailer.

(3) Nothing in this subsection shall be construed to

prohibit the collection and retention of personal identifying

information of a cannabis consumer who participates in or who

plans to participate in a research study conducted by a

clinical registrant or supported by a cannabis retailer,

another cannabis entity licensee or other person authorized

to engage in a regulated activity under this act, provided

that the personal identifying information is:

(i) Provided directly to the clinical registrant,

cannabis retailer, cannabis entity licensee or other

person by the cannabis consumer and not by another

individual.

(ii) Maintained in a secure manner which will not

result in unlawful access or disclosure to any person who

is not directly involved in the conduct of the research

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study.

(iii) Destroyed within 60 days of completion of the

research study.

promulgation of temporary regulations under subsection (a), and

prior to the date established by the board to commence the

application process under section 502, the board shall:

(1) Conduct a series of regional informational sessions

to inform and educate the residents of this Commonwealth

regarding the regulation of cannabis in this Commonwealth,

including information and education on the opportunities,

requirements and processes for submitting an application to

the board for a cannabis entity license, permit,

certification or other authorization to engage in a regulated

activity under this act. The board shall conduct at least two

informational sessions in each region of this Commonwealth

and may conduct additional informational sessions upon demand

by a sufficient number of residents or by the governing body

of a municipality.

(2) Publicize the day, time and location of each

informational session broadly through television, radio,

Internet, including social media and print media, and on the

board's publicly accessible Internet website.

Section 502. Order of initial issuance of cannabis entity

licenses.

(a) Initial issuance.--In order to facilitate the timely and

orderly commencement of cannabis operations in this

Commonwealth, the board shall work to expedite approval of

cannabis cultivator, cannabis processor and cannabis retailer

licenses under sections 503 and 504.

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(b) Adoption of schedule and issuance of cannabis entity

licenses.--The following apply:

(1) Notwithstanding sections 503 and 504, the board

shall adopt a schedule under which applications for cannabis

entity licenses submitted in under Chapter 6 shall be filed,

considered, approved, issued, conditioned or denied as

provided under this act.

(2) No later one year after the commencement of cannabis

operations by a person holding an expedited approval cannabis

entity license under section 503 or an expedited approval

cannabis entity license at a secondary site under section

504, the board shall consider, approve, condition or deny the

approval of applications for cannabis cultivator, cannabis

processor, cannabis microbusiness and cannabis transporter

licenses submitted to the board under Chapter 6 in accordance

with the schedule adopted by the board under paragraph (1) as

soon as administratively possible and at least three months

prior to the board's approval, conditioning, issuing or

denying the approval of a cannabis retailer license under

section 607.

(3) The board shall ensure that an adequate number of

cannabis cultivators, cannabis processors, cannabis

microbusinesses and cannabis transporters have been licensed

to meet market demand.

(4) The board shall have no authority to limit or

otherwise restrict or impose a cap on the number of cannabis

entity licenses, including cannabis cultivator or cannabis

processor licenses, authorized under this act.

Section 503. Expedited approval of cannabis entity licenses;

medical marijuana organizations.

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(a) Expedited approval.--The following apply:

(1) Notwithstanding any provision of the Medical

Marijuana Act or any regulation promulgated under that act, a

medical marijuana organization holding a valid permit under

the Medical Marijuana Act on the effective date of this

paragraph may apply to the board for an expedited approval

cannabis entity license for each separate location operated

by the medical marijuana organization to engage in activities

related to the cultivation, processing and selling or

offering for sale of cannabis and cannabis products to

persons 21 years of age or older as provided under this act.

(2) A medical marijuana organization seeking an

expedited approval cannabis entity license under paragraph

(1) shall submit an application to the board.

(3) An application for an expedited approval cannabis

entity license must be submitted by the same person that

holds a dispensary permit or a grower/processor permit under

the Medical Marijuana Act.

(4) A separate license shall be required for each

location at which a medical marijuana organization seeks to

operate a cannabis establishment as an expedited approval

cannabis entity licensee.

(b) Time of application.--To facilitate the prompt

implementation of this act, the following shall apply to a

medical marijuana organization applying for an expedited

approval cannabis entity license under subsection (a):

(1) If the applicant holds a valid dispensary permit in

good standing under the Medical Marijuana Act on the

effective date of this paragraph, the applicant may, within

60 days of the effective date of this act, apply to the board

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for an expedited approval cannabis retailer license to sell

or offer for sale cannabis and cannabis products at the

applicant's existing dispensary locations in this

Commonwealth or at a secondary site approved by the board

under section 504. The applicant shall ensure that the

applicant's existing dispensary locations where cannabis and

cannabis products will be sold or offered for sale as

provided under this act are configured in a manner, as

approved by the board, which ensures that patients and

caregivers under the Medical Marijuana Act are given priority

access to the dispensary, the dispensary's onsite physician,

pharmacist, physician assistant or nurse practitioner, as the

case may be, and to an adequate supply of cannabis and

cannabis products.

(2) The following apply:

(i) If the applicant holds a valid grower/processor

permit in good standing under the Medical Marijuana Act

as of the effective date of the act, the applicant may,

within 30 days but no later 60 days of the effective date

of this act, apply to the board for an expedited approval

cannabis entity license to cultivate, process or

otherwise produce cannabis or cannabis products at the

applicant's existing facility in this Commonwealth.

(ii) In an application for an expedited approval

cannabis entity license submitted under subparagraph (i),

the applicant may include, and the board shall approve, a

site plan proposing an alteration or expansion of the

applicant's existing grower/processor facility to

facilitate cannabis cultivation and production at a level

sufficient to serve both patients and caregivers under

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the Medical Marijuana Act and cannabis consumers under

this act.

(iii) Nothing in subparagraph (ii) shall be

construed to prevent a person holding a valid

grower/processor permit under the Medical Marijuana Act

from applying to the board for an expedited approval

cannabis entity license at a secondary site. An

application submitted by a grower/processor for an

expedited approval cannabis entity license at a secondary

site shall be submitted within 30 days but no later than

60 days of the effective date of this paragraph and shall

be subject to all the requirements and conditions

specified in section 504.

(iv) The alteration of an existing grower/processor

facility under subparagraph (ii) may not exceed 225,000

square feet of cannabis plant canopy space that is

dedicated to the live cultivation of plants as defined in

this act.

(v) Nothing in this act shall be construed to

preclude basing plant canopy size on the square footage

of the bench space allocated for the flowering stage of

cannabis development rather than on the square footage of

a room or other area designated for the cultivation of

cannabis.

(4) The board shall adopt and promulgate regulations to

govern the location, display and placement of personal use

cannabis and cannabis products in the existing dispensary or

facility of an applicant who holds a medical marijuana

organization permit under the Medical Marijuana Act and who

applies for and is issued an expedited approval cannabis

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entity license under this chapter. The regulations shall

ensure that activities authorized under the Medical Marijuana

Act are separate and distinct from the regulated activities

authorized under the expedited approval cannabis entity

license issued to the applicant under sections 503 and 504.

cannabis entity license submitted by a medical marijuana

organization under this section shall include:

(1) If the applicant holds a valid dispensary permit

under the Medical Marijuana Act, a nonrefundable license fee

of $30,000 to be deposited into the Cannabis Revenue Fund.

(2) If the applicant holds a valid grower/processor

permit, a nonrefundable license fee calculated in accordance

with section 313(b) to be deposited into the Cannabis

Revenue Fund.

(3) Proof that the applicant holds a permit in good

standing under the Medical Marijuana Act.

(4) Certification that the applicant will comply with

the requirements of the Medical Marijuana Act relating to the

sale of medical marijuana to patients and caregivers and

subsection (h).

(5) The legal name and physical address of the medical

marijuana organization.

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

of birth of each principal officer and board member of the

medical marijuana organization, each of whom must be at least

21 years of age.

(7) If the applicant holds a dispensary permit under the

Medical Marijuana Act, a nonrefundable cannabis business

development fee equal to 3% of the medical marijuana

20210HB2050PN2333 - 142 -

organization's total sales between June 1, 2019, and June 1,

2020, or $100,000, whichever is less, to be deposited into

the Cannabis Business Development Fund established under

section 402.

(8) If the applicant is a grower/processor under the

Medical Marijuana Act, a nonrefundable cannabis business

development fee equal to 5% of the grower/processor's total

sales between June 1, 2019, and June 1, 2020, or $500,000,

whichever is less, but not less than $250,000, to be

deposited into the Cannabis Business Development Fund

established under section 402.

(9) The following apply:

(i) For all applicants, identification of one of the

following social and economic equity plans or activities

to be completed by March 31, 2022, or by a time specified

in the application as may be approved by the board:

(A) Make a contribution of 3% of total sales

between June 1, 2019, and June 1, 2020, or $100,000,

whichever is less, to the Cannabis Business

Development Fund, which shall be in addition to the

fee required under paragraph (7) or (8).

(B) Make a donation of $100,000 or more to a

program that provides job training services to

persons recently incarcerated or who reside in a

designated opportunity zone.

establishment incubator program approved by the

office, in consultation with the Department of

Community and Economic Development, in which the

applicant agrees to provide a loan of at least

20210HB2050PN2333 - 143 -

$100,000 and mentorship to incubate an applicant or

licensee that qualifies as a social and economic

equity applicant for at least a year or a period of

time specified in the application and approved by the

board.

(ii) The medical marijuana organization or any other

cannabis entity licensee participating in an incubator

program under subparagraph (i)(C) may not take an

ownership interest of greater than 10% in a social and

economic equity licensee or other entity receiving

incubation services under this paragraph.

(iii) If an applicant or a medical marijuana

organization permittee fails to secure a social and

economic equity applicant or qualified social and

economic equity licensee to incubate under clause (C),

the applicant or medical marijuana organization may:

(A) opt to engage in an activity under

subparagraph (i)(A) or (B) to satisfy the

requirements of this paragraph; or

(B) participate in a sponsorship program for at

least two years, as approved by the board in

consultation with the Department of Community and

Economic Development, under which the medical

marijuana organization agrees to provide an interest-

free loan of at least $200,000 to a social and

economic equity applicant or qualified social and

economic equity licensee. A medical marijuana

organization participating in a sponsorship program

under this subparagraph shall not take an ownership

interest in a social and economic equity applicant or

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qualified social and economic equity licensee

receiving sponsorship services.

(iv) As used in this paragraph, the term "incubate"

shall mean the provision of direct financial assistance,

technical assistance and training necessary for a person

to engage in a regulated activity under this act similar

to that of the applicant or cannabis entity licensee

hosting the incubator program.

(d) Additional fee.--The nonrefundable application fee under

subsection (c)(1) and (2) shall be in addition to any fee

required for the renewal of a dispensary permit or

grower/processor permit under the Medical Marijuana Act.

(e) Submission of applications.--A medical marijuana

organization seeking an expedited approval cannabis entity

license must submit all information required under this act,

including the nonrefundable application fee under subsection (c)

(1) or (2), to the board at the time and in the form and manner

established by the board under this act. Except as provided in

subsection (f), the submission of an incomplete application may

disqualify the applicant from receiving an expedited approval

cannabis entity license.

(f) Incomplete applications.--The following apply:

(1) If the board receives an incomplete application, the

board shall immediately notify the applicant of the

deficiencies. The applicant shall have 10 calendars days from

the date of the board's deficiency notice to submit complete

information to the board. Nothing in this paragraph shall

preclude the board from rejecting an incomplete application

if the board determines that the deficiencies cannot be cured

within 10 calendar days.

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(2) If the applicant provides all the information

required to make the deficient application complete within

the time period specified under paragraph (1), the board

shall issue the expedited approval cannabis entity license

within 14 days of receiving the completed application,

unless:

(i) the applicant or a principal officer of the

applicant or any other person holding a financial

interest or voting interest of 5% or more is delinquent

in filing any required tax returns or paying any tax owed

to the Federal Government, the Commonwealth or a

political subdivision of the Commonwealth;

(ii) the board determines, based on documented

compliance violations of the Medical Marijuana Act, that

the applicant is not entitled to an expedited approval

cannabis entity license; or

(iii) any principal officer of the applicant is not

in compliance with the Medical Marijuana Act.

(g) Commencement of operations.--A medical marijuana

organization that is issued an expedited approval cannabis

entity license may begin engaging in the regulated activity for

which the license is issued on a date as approved by the board.

(h) Medical marijuana organization and condition of

licensure.--The following apply:

(1) If the applicant issued an expedited approval

cannabis entity license under this section holds a permit as

a dispensary or grower/processor under the Medical Marijuana

Act, the licensee must agree to maintain an adequate supply

of cannabis and cannabis products for purchase by patients

and caregivers under the Medical Marijuana Act or regulations

20210HB2050PN2333 - 146 -

promulgated under the Medical Marijuana Act.

(2) If there is a shortage of cannabis or cannabis

products, a medical marijuana organization holding both a

dispensary permit under the Medical Marijuana Act and an

expedited approval cannabis entity retailer license under

this act shall prioritize serving medical marijuana

identification cardholders and caregivers as provided under

the Medical Marijuana Act and any regulations promulgated

under the Medical Marijuana Act. The medical marijuana

organization shall adopt procedures to ensure that

identification cardholders and caregivers are given priority

access to complete purchases at the medical marijuana

organization's dispensary or at its cannabis establishment

operated in accordance with the provisions of this act,

including at a secondary site operated by the expedited

approval cannabis entity licensee.

(3) The requirements under paragraphs (1) and (2) shall

be a condition of licensure as an expedited approval cannabis

entity licensee under this chapter.

(4) For the purpose of this subsection, "adequate

supply" shall mean a monthly inventory level that is

comparable in type and quantity to the medical marijuana

products provided to patients and caregivers on an average

monthly basis for the six-month period before the effective

date of this paragraph. The terms "patient" and "caregiver"

shall have the meanings given in section 103 of the Medical

Marijuana Act.

(i) Access to restricted access areas.--Notwithstanding any

provision of the Medical Marijuana Act or any rule, regulation

or policy promulgated and adopted under the Medical Marijuana

20210HB2050PN2333 - 147 -

Act, a person that holds a valid dispensary permit under the

Medical Marijuana Act and an expedited approval cannabis entity

license or cannabis retailer license under this act may permit

cannabis consumers and other persons into limited access areas,

as approved by regulation of the board, to purchase cannabis and

cannabis products sold or offered for sale by the licensee at

the licensee's existing dispensary or cannabis establishment.

(j) Renewal of license.--An expedited approval cannabis

entity license shall be valid for a two-year period commencing

on the date the license is approved and issued by the board. The

following apply:

(1) Ninety days before the expiration of an expedited

approval cannabis entity license, the board shall provide a

medical marijuana organization issued an expedited approval

cannabis entity license under this section with written or

electronic notice of the impending expiration of the license.

(2) The notice shall inform the license holder that the

license holder must submit an application to renew the

expedited approval cannabis entity license and specify the

form and manner by which the license may be renewed.

(3) The board shall renew the expedited approval

cannabis entity license within 45 days of receipt of a

renewal application if:

(i) The application is deemed complete.

(ii) The nonrefundable biennial license renewal fee

of $15,000 if the licensee is a dispensary, or an amount

calculated in accordance with section 313(b) if the

licensee is grower/processor, accompanies the

application.

(iii) The medical marijuana organization permit and

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the expedited approval cannabis entity license held by

the expedited cannabis entity licensee are valid and in

good standing.

(4) The expedited approval cannabis entity licensee has

completed or is in the process of completing a social and

economic equity activity or plan under subsection (c)(9).

(k) Failure to renew license.--The following apply:

(1) If a medical marijuana organization fails to submit

an application for the renewal of an expedited approval

cannabis entity license under subsection (j), the expedited

approval cannabis entity licensee shall cease all regulated

activities authorized under the expedited approval cannabis

entity license at the licensee's cannabis establishment until

a renewal application is approved and the renewed license is

issued by the board.

(2) Nothing in this subsection shall be construed to

prohibit a medical marijuana organization that fails to renew

an expedited approval cannabis entity license under

subsection (j) from continuing to engage in the activities

authorized under the medical marijuana organization's medical

marijuana organization permit.

(l) Status of employees and other persons.--All employees,

agents and other persons who are authorized to work for a

medical marijuana organization under the Medical Marijuana Act

may engage in activities authorized under the expedited approval

cannabis entity license, subject to any conditions as may be

required by regulation of the board.

(m) Effects of suspension or revocation.--If the board

suspends or revokes an expedited approval cannabis entity

license held by a medical marijuana organization under this act,

20210HB2050PN2333 - 149 -

the board may not consider the suspension or revocation as

grounds to take disciplinary action against the dispensary or

grower/processor permit held by the medical marijuana

organization.

(n) Deposit of fees.--All fees collected under this section

shall be deposited into the Cannabis Revenue Fund.

Section 504. Authorization for secondary site.

(a) Secondary site for cannabis retailer license.--A medical

marijuana organization that holds a dispensary permit under the

Medical Marijuana Act and an expedited approval cannabis entity

license under this chapter may, within 60 days after the

effective date of this act, file an application or applications

with the board for approval to operate a cannabis establishment

as a cannabis retailer at a secondary site. The following apply:

(1) A license approved and issued by the board

authorizing a medical marijuana organization to sell or offer

for sale cannabis and cannabis products at a secondary site

shall be separate and distinct from the expedited approval

cannabis entity license approved and issued to the medical

marijuana organization by the board under section 503.

(2) Except as provided in paragraph (3), a secondary

site shall be located within the same region as the medical

marijuana organization's medical marijuana dispensary.

(3) If no jurisdiction within the medical marijuana

organization's prescribed region under the Medical Marijuana

Act permits the operation of a cannabis establishment, the

board may waive any geographic restriction and specify

another region of this Commonwealth, or consider a region

proposed by the medical marijuana organization, into which a

medical marijuana organization holding an expedited approval

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cannabis licensee may locate the cannabis establishment.

(4) A cannabis establishment operated by a medical

marijuana organization under an expedited approval cannabis

retailer license at a secondary site shall not be located

within 2,000 feet of a medical marijuana dispensary or

cannabis retailer licensee.

(5) An application for an expedited approval cannabis

entity license which seeks to operate a cannabis

establishment at a secondary site must be submitted by the

same person that holds the medical marijuana organization

dispensary permit under the Medical Marijuana Act.

(6) A medical marijuana organization may file a separate

secondary site application for each valid dispensary permit

held by the medical marijuana organization in good standing

under the Medical Marijuana Act, but in no event shall a

medical marijuana organization be awarded more than three

expedited approval cannabis retailer licenses at a secondary

site.

(b) Application.--A medical marijuana organization seeking

issuance of an expedited approval cannabis entity license at a

secondary site shall submit an application to the board in the

form and manner as the board shall prescribe. The application

shall include all of the following:

(1) A nonrefundable license fee in the amount of $30,000

if the applicant holds a valid dispensary permit under the

Medical Marijuana Act and a nonrefundable license fee

calculated in accordance with section 313(b) if the applicant

holds a valid grower/processor permit under the Medical

Marijuana Act. The fees collected under this paragraph shall

be deposited into the Cannabis Revenue Fund.

20210HB2050PN2333 - 151 -

(2) Proof that the applicant holds a valid permit in

good standing under the Medical Marijuana Act.

(3) The legal name of the medical marijuana

organization.

(4) The physical address of the applicant's medical

marijuana dispensary location or grower/processor facility

location and the proposed physical address of the proposed

cannabis establishment at a secondary site.

(5) Documentation of the approval, conditional approval

or status of a request for zoning approval from the zoning

office of the municipality in which the location of the

secondary site is proposed to be located, and that the

proposed location of the secondary site is or will be in

compliance with the local zoning ordinances or rules.

(6) A plot plan of the cannabis establishment drawn to

scale, including general specifications of the building's

exterior and interior layout.

(7) A statement that the applicant agrees to and will

promptly respond to request for supplemental information made

by the board.

(8) In the case of a building or land on which a

cannabis establishment will be constructed if the real

property is:

(i) not owned by the applicant, a written statement

from the property owner or landlord, if any, certifying

consent that the applicant may build and operate a

cannabis establishment on the real property; or

(ii) owned by the applicant, confirmation of

ownership.

(9) A copy of the operating bylaws or proposed bylaws,

20210HB2050PN2333 - 152 -

if any.

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

with the requirements of this act, including, at a minimum,

the following:

(i) a statement describing products or services to

be offered; and

(ii) a description of the process of cultivating,

processing, distributing, transporting, delivering or

selling cannabis and cannabis products.

(11) A copy of the proposed security plan that complies

with the requirements of this act, including:

(i) A description of the delivery process by which

cannabis or cannabis products will be received from a

cannabis transporter or other transporting organization,

including the receipt of manifests and protocols that

will be used to avoid diversion, theft or loss at the

acceptance point.

(ii) The process or internal and external controls

that will be implemented to monitor the cannabis

establishment, secure the premises, employees, agents,

cannabis consumers and currency and prevent the

diversion, theft or loss of cannabis, cannabis products

and currency.

(iii) The process to ensure that access to

restricted access areas is limited to employees or agents

of the board, the Department of Agriculture and the

Pennsylvania State Police and essential employees or

other designated employees, service professionals,

cannabis transporters, delivery organization agents and

security personnel.

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(12) A proposed inventory control verification system or

plan that complies with section 608.

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

of birth of each principal officer and board member of the

medical marijuana organization, each of whom shall be 21

years of age or older.

(14) A nonrefundable cannabis business development fee

of $200,000, to be deposited into the Cannabis Business

Development Fund.

(15) A commitment to completing a social and economic

equity plan or participating in a social and economic equity

activity under subsection (c).

expedited approval cannabis retailer license for a secondary

site is issued to an applicant, the applicant shall commit to a

specific social and economic equity plan or activity as listed

below:

(1) The following apply:

(i) If the applicant holds a dispensary permit under

the Medical Marijuana Act, make a contribution of 3% of

total sales from June 1, 2019, to June 1, 2020, or

$100,000, whichever is less, to the Cannabis Business

Development Fund established under section 402, which

shall be in addition to the fee required under subsection

(b)(14).

(ii) If the applicant is a grower/processor under

the Medical Marijuana Act, a nonrefundable business

development fee equal to 5% of the grower/processor's

total sales between June 1, 2019, to June 1, 2020, or

$500,000, whichever is less, but not less than $250,000,

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to be deposited into the Cannabis Business Development

Fund established under section 402, which shall be in

addition to the fee required under subsection (b)(14).

(2) Make a donation of $100,000 or more to a program

that provides job training services to persons recently

incarcerated or that operates in a designated opportunity

zone.

(3) The following apply:

(i) Participate as a host in a cannabis business

establishment incubator program approved by the

Department of Community and Economic Development in which

the applicant agrees to provide a loan of at least

$100,000 and mentorship to incubate a licensee that

qualifies as a social and economic equity applicant for

at least a year or a period of time specified in the

application and approved by the board.

(ii) The medical marijuana organization seeking to

operate a cannabis establishment as an expedited approval

cannabis retailer at a secondary site or any other

expedited approval cannabis entity licensee participating

in an incubator program under this act shall not take an

ownership interest of greater than 10% in a social and

economic equity licensee or other entity receiving

incubation services under this paragraph.

(iii) If a medical marijuana organization issued an

expedited approval cannabis entity license at a secondary

site or any other cannabis entity licensee fails to find

a business to incubate by the time specified by the

licensee in the application, as approved by the board,

the medical marijuana organization may opt to meet the

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requirement of this subsection by completing or

participating in another social and economic equity

activity under this subsection.

(iv) As used in this paragraph, the term "incubate"

shall mean the provision of direct financial assistance,

technical assistance and training necessary to engage in

a regulated activity under this act similar to that of

the applicant or cannabis entity licensee hosting the

incubator program.

(4) Participate in a sponsorship program, as approved by

the board, in consultation with the Department of Community

and Economic Development, for at least two years in which an

expedited approval cannabis retailer licensee operating at a

secondary site agrees to provide an interest-free loan of at

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

qualified social and economic equity licensee. No expedited

approval cannabis retailer licensee under this paragraph

shall take an ownership interest of greater than 10% in a

social and economic equity applicant or licensee receiving

sponsorship services under this paragraph.

(d) Status of license fee.--The fee imposed under subsection

(b)(1) shall be in addition to any fee required for the renewal

of a medical marijuana organization permit under the Medical

Marijuana Act.

(e) Incomplete application.--Failure by an applicant for an

expedited approval cannabis retailer license at a secondary site

to submit all information required under this subsection shall

result in the application being deemed incomplete by the board.

The following apply:

(1) If the board receives an incomplete application, the

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board shall forward a deficiency notice to the applicant that

describes the information needed to cure the deficiency.

(2) The applicant shall have 10 calendar days from the

date of the deficiency notice to submit a completed

application to the board. Nothing in this paragraph shall

preclude the board from rejecting an incomplete application

if the board determines that the deficiencies cannot be cured

within 10 calendar days.

(3) If the applicant fails to cure the deficiency within

the 10-day period under paragraph (2) or resubmits an

application that is still incomplete after the opportunity to

cure, the board may reject or disqualify the application.

(4) The board may request revisions to an application

and shall retain final approval over the structural features

of an expedited approval cannabis retailer licensee's

cannabis establishment at a secondary site under this section

and any site plan proposed by a grower/processor seeking to

operate a cannabis establishment at a secondary site.

(f) Issuance of license.--The following apply:

(1) Upon the approval of a completed application, the

board shall conditionally approve the applicant's application

for an expedited approval cannabis retailer license at a

secondary site. Approval of the application shall be

contingent upon a final inspection of the secondary site by

the board. The board shall only issue the license if:

(i) The applicant's secondary site passes the

inspection conducted by employees or agents of the board.

(ii) The applicant, principal officers of the

applicant and any other person holding a financial or

voting interest of 5% or greater is not delinquent in

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filing any required tax returns or paying money owed to

the Federal Government, the Commonwealth or a political

subdivision of the Commonwealth.

(iii) The board determines that there is no reason,

based on a review of the application and other

documentation, to deny issuance of the expedited approval

cannabis retailer license at a secondary site.

(g) Commencement of operations.--The following apply:

(1) Upon the issuance of an expedited approval cannabis

retailer license to operate a cannabis establishment at a

secondary site, the licensee shall notify the board of the

licensee's proposed opening date.

(2) A medical marijuana organization that obtains an

expedited approval cannabis entity license to operate a

cannabis establishment at a secondary site as provided under

this section may commence the regulated activity for which

the license was issued on the licensee's proposed opening

date, as submitted to the board in accordance with paragraph

(1), unless a later date is established by the board based on

the notification received by the board under paragraph (1)

and the availability of cannabis and cannabis products for

sale to cannabis consumers.

(3) If there is a shortage of cannabis or cannabis

products, a medical marijuana organization holding a

dispensary permit or grower/processor permit under the

Medical Marijuana Act and an expedited approval cannabis

entity license under section 503 and an expedited approval

cannabis retailer license to operate at a secondary site

under this section shall prioritize the medical marijuana

organization's obligations under the Medical Marijuana Act.

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(4) An expedited approval cannabis entity license at a

secondary site shall be valid for a two-year period from the

date of issuance of the license by the board.

(h) License renewal.--The board may renew an expedited

approval cannabis entity license at a secondary site within 60

days of the receipt of a renewal application if:

(1) The application is deemed complete by the board.

(2) The renewal application is accompanied by a license

renewal fee of $15,000 for a medical marijuana organization

that holds a dispensary permit or a license renewal fee

calculated in accordance with section 313(e)(1) for a medical

marijuana organization that holds a grower/processor permit

for deposit into the Cannabis Revenue Fund.

(3) The board has not suspended or revoked the expedited

approval cannabis entity license held by the medical

marijuana organization for a violation of this act or a rule

or regulation under this act and the permit held by the

medical marijuana organization has not been suspended or

revoked for a violation of the Medical Marijuana Act or any

rule or regulation adopted and promulgated under the Medical

Marijuana Act.

(4) The medical marijuana organization has completed or

is in the process of completing a social and economic equity

plan or has participated or is participating in a social and

economic equity activity, as approved by the board.

(i) Notification of expiration.--Ninety days before the

expiration date of an expedited approval cannabis entity license

at a secondary site issued under this section, the board shall

notify the licensee of the impending expiration of the license.

The notice may be forwarded by the board to the licensee in

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writing or electronically, and shall inform the licensee that

the licensee may file an application to renew the expedited

approval cannabis entity license at a secondary site.

(j) Renewal.--The following apply:

(1) The board shall renew an expedited approval cannabis

entity license at a secondary site within 60 days of receipt

of a completed application if the licensee satisfies all the

requirements of this section.

(2) If the licensee fails to submit a renewal

application before the expiration date of the expedited

approval cannabis entity license at a secondary site, the

licensee shall cease all regulated activities authorized

under the expedited approval cannabis entity license at the

secondary site until the license is renewed by the board.

(3) Nothing in this subsection shall be construed to

prohibit a medical marijuana organization that fails to renew

an expedited approval cannabis entity license at a secondary

site from continuing to engage in the activities authorized

under the Medical Marijuana Act.

(k) Status of employees and other persons.--All employees,

agents and other persons authorized to work for a medical

marijuana organization under the Medical Marijuana Act and who

are officers, directors, managers or employees of the expedited

approval cannabis entity licensee at a secondary site under this

section may engage in all activities authorized under the

expedited approval cannabis entity license at a secondary site,

subject to any conditions which may be prescribed by the board

by regulation.

(l) Effects of suspension or revocation.--If the board

suspends or revokes an expedited approval cannabis entity

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license at a secondary site held by a medical marijuana

organization as provided under this section, the board may not

consider the suspension or revocation as grounds to seek

disciplinary action against the medical marijuana organization

permit held by the medical marijuana organization under the

Medical Marijuana Act.

(m) Deposit of fees.--All fees collected under this section

from an expedited approval cannabis retailer licensee at a

secondary site shall be deposited into the Cannabis Revenue

Fund.

Section 505. Cannabis entity license application.

(a) Submission of application.--The following apply:

(1) Each application for a cannabis entity license or a

conditional cannabis entity license shall be submitted to the

board on a form, in the manner and at the time established by

the board under section 502.

(2) A separate license or separate conditional license

shall be required for each location at which an applicant for

a cannabis entity license seeks to operate a cannabis

establishment. A conditional license shall not be renewed but

may be replaced with a permanent license upon the

determination by the board that the holder of a conditional

license qualifies for a permanent license.

(3) A license or conditional license may not be issued

by the board until after the completion of a background

investigation of the applicant.

(4) In reviewing applications, the board shall confirm

that the applicable license fee under section 313 has been

paid.

(b) Disclosures.--The following apply:

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(1) Notwithstanding any other provision of law to the

contrary, an applicant for a cannabis entity license shall

disclose in the application any arrests of the applicant,

including:

(i) A brief description of the circumstances

surrounding the arrest.

(ii) The specific offense charged.

(iii) The ultimate disposition of the charge,

including the details of any dismissal, plea bargain,

conviction, sentence, pardon, expungement or order of

Accelerated Rehabilitative Disposition.

(2) An applicant may not be required to provide

documentation relating to a summary offense.

consider an incomplete application and must notify the applicant

in writing if an application is incomplete. An application shall

be considered incomplete if it does not include all applicable

fees and all information and accompanying documentation required

under this act or by regulation of the board consistent with the

requirements of this act, including, but not limited to, a

current tax lien certificate issued by the department at the

time of filing the application. Any unpaid taxes identified on

the tax lien certificate must be paid before the application is

considered complete. If the board receives an incomplete

application, the board shall forward a deficiency notice to the

applicant that describes the information needed to cure the

deficiency. The following apply:

(1) The applicant shall have 10 calendar days from the

date of the deficiency notice to submit a complete

application to the board.

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(2) If the applicant fails to cure the deficiency within

the 10-day period under paragraph (1) or resubmits an

application that is still incomplete after the opportunity to

cure, the board may reject or disqualify the application.

(3) The board may request revisions to an application

and shall retain final approval over the structural features

of an applicant's proposed cannabis establishment.

Section 506. Application requirements.

(a) General requirements.--In addition to any other

information required under this act or regulation of the board,

the application for any type of cannabis entity license shall

include, at a minimum:

(1) Information about the applicant, including the

applicant's legal name, any registered alternate name under

which the applicant will conduct business and a copy of the

applicant's articles of organization and bylaws, if

applicable.

(2) The name, address, date of birth and resumes of each

executive, principal or officer and each person with a

financial interest who also has decision-making authority

over an applicant for a cannabis entity. Each executive,

principal, officer or individual shall also provide the

following in a form and manner prescribed by the board:

(i) A photocopy of each executive's, principal's,

officer's or individual's driver's license or other

government-issued form of identification.

(ii) Background investigation information.

(3) A list identifying all persons with a financial

interest who also have decision-making authority over the

applicant for a cannabis entity license as detailed in the

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application.

(4) The Federal and State tax identification numbers of

the applicant and proof of registration with the department.

(5) A current tax lien certificate issued by the

department.

(6) The applicant's business plan or management

operation profile for the applicant's proposed cannabis

establishment, including policies and procedures for the

handling of cash on the premises, including, but not limited

to, storage, collection frequency and transport to financial

institutions, which shall be made available to the board for

inspection upon request.

(7) The applicant's operation plan, including policies

and procedures for energy efficiency and conservation, which

shall include:

(i) Identification of energy needs, including

estimates of monthly electricity and natural gas usage,

to what extent the applicant will procure energy from an

electric distribution company or electric generation

supplier, natural gas distribution company or natural gas

supplier or from on-site generation and if the applicant

has or will adopt a sustainable energy use and energy

conservation policy.

(ii) Potential energy use reduction opportunities,

if any, including, but not limited to, natural lighting,

heat recovery ventilation and energy efficiency measures

and a plan for implementation of those opportunities.

(iii) Consideration of opportunities for renewable

energy generation, including, where applicable,

submission of building plans showing where energy

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generators could be placed on the site and an explanation

of why the identified opportunities were not pursued, if

applicable.

(iv) Strategies to reduce electric demand, such as

lighting schedules, active load management and energy

storage, and engagement with energy efficiency programs.

(v) Identification of water needs, including

estimated water draw, and if the applicant has or will

adopt a sustainable water use and water conservation

policy.

(vi) A waste management plan, including

identification of waste disposal and waste management

procedures, and whether the applicant has or will adopt a

waste reduction policy.

(vii) A recycling plan.

(8) Emergency procedures, including a disaster plan with

procedures to be followed in case of fire or other emergency

such as a proclamation of a disaster or public health

emergency.

(9) The plan by which the applicant intends to obtain

appropriate liability insurance coverage for the proposed

cannabis establishment.

(10) Proof that the application includes at least one

significantly involved individual who has resided in this

Commonwealth for at least two years as of the date of the

application.

(11) Proof that the significantly involved person and

any other person with a financial interest who also has

decision-making authority over the proposed cannabis entity

licensee is 21 years of age or older.

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(12) The details of a cannabis entity license or similar

license, permit or other authorization applied for, granted

to or denied to the applicant in another jurisdiction,

foreign or domestic, where the adult or personal use of

cannabis and cannabis products or medical marijuana is legal

or regulated, and the consent for the board to acquire copies

of the application submitted or license, permit or other

authorization granted to the applicant in the other

jurisdiction.

(13) The details of loans obtained from a financial

institution or not approved by a financial institution.

(14) The consent to a background investigation, the

scope of which shall be determined by the board in its

discretion consistent with this act, and a release signed by

all individuals subject to a background investigation

agreeing to provide all information required by the board to

complete the background investigation.

(15) Payment of the applicable cannabis entity license

fee under section 313.

(16) The disclosure of all arrests under section 505(b).

(17) A detailed description of a community agreement the

applicant entered or may enter with the municipality. The

board shall adopt regulations to govern community agreements

and may review, regulate and enforce a community agreement

entered between a municipality and a cannabis entity

licensee.

(18) The terms and conditions of a management service

agreement entered or proposed to be entered between an

applicant or cannabis entity licensee and another person or

entity, including, but not limited to, the terms and scope of

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services to be provided, employees and compensation. The

board shall review and approve or deny a management service

agreement and may require, by regulation, the entities to

secure authorization from the board to provide the services

outlined in the management service agreement.

(19) Any other information prescribed by the board by

regulation that is necessary and appropriate to administer

and enforce this act.

(b) Applicant character requirements.--The following apply:

(1) Each application for a cannabis entity license shall

include information, documentation and assurances as may be

required by the board to establish by clear and convincing

evidence the applicant's suitability for a cannabis entity

license, including good character, honesty and integrity. The

information shall include, without limitation, information

pertaining to criminal history background, business

activities, financial affairs and business, professional and

personal associates, covering at least the five-year period

immediately preceding the filing date of the application.

(2) Notwithstanding 18 Pa.C.S. § 9124(b) (relating to

use of records by licensing agencies), in addition to the

information submitted under section 505(b), a conviction that

has been expunged or overturned or for which a person has

been pardoned or an order of Accelerated Rehabilitative

Disposition has been issued shall be included with an

application and considered by the board as part of the review

of the applicant's suitability under paragraph (1). The board

may not use a conviction that has been expunged, overturned,

pardoned or subject to an order of accelerated rehabilitative

disposition to deny the approval and issuance of a cannabis

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entity license.

information.--Each applicant shall notify the board of civil

judgments obtained against the applicant pertaining to antitrust

or security regulation laws of the Federal Government, the

Commonwealth or any other state or jurisdiction, foreign or

domestic. In addition, an applicant may be required to obtain a

letter of reference from law enforcement agencies having

jurisdiction in the applicant's place of residence and principal

place of business, which shall indicate that the law enforcement

agencies do not have any pertinent information concerning the

applicant or, if the law enforcement agency does have

information pertaining to the applicant, shall specify the

nature and content of that information. If no letters are

received within 30 days of the request, the applicant may submit

a statement under oath which is subject to the penalty for false

swearing under 18 Pa.C.S. § 4903 (relating to false swearing)

that the applicant is or was in good standing with the Cannabis

Control Board or similar agency in the applicable jurisdiction

during the period the activities were conducted.

(d) Regulatory agency information.--If the applicant has

held a cannabis entity license or a similar license or permit in

a jurisdiction where the personal or adult use of cannabis or

medical marijuana is legal or otherwise regulated, the applicant

may produce a letter of reference from the regulatory agency

that oversees the regulation of cannabis or medical marijuana in

the other jurisdiction. The letter of reference shall specify

the experiences of the regulatory board or agency with the

applicant, the applicant's associates and the applicant's

cannabis operation. If no letter is received within 30 days of

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the request, the applicant may submit a statement under oath

which is subject to the penalty for false swearing under 18

Pa.C.S. § 4903 that the applicant is or was in good standing

with the regulatory agency in the jurisdiction where the

applicant has held or holds a cannabis entity license or similar

license or permit during the period the activities were

conducted.

(e) Refusal to cooperate.--A refusal to provide the

information required under this section or any other provision

of this act or to consent to a background investigation shall

result in the immediate disapproval of the application for a

cannabis entity license.

Section 507. Additional license requirements.

(a) Additional eligibility requirements.--In order to be

eligible for a cannabis entity license under this chapter, the

principals, essential employees and other employees or agents,

as determined by regulation of the board, of the applicant shall

obtain a license, permit, certificate, registration or other

authorization from the board and meet the character requirements

under section 506.

(b) Classification system.--The board shall develop a

classification system for agents, employees or persons who

directly or indirectly hold or are deemed to be holding debt,

equity securities or other financial interest in the applicant

for a cannabis entity license or cannabis entity licenses and

for other persons which the board considers appropriate for

review under section 506.

(1) Except as provided in paragraph (2), no person shall

be eligible for a cannabis entity license unless the

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principals and essential employees of each intermediary,

subsidiary or holding company of the person meet the

requirements under subsection (a), as may be required by the

board.

(2) The board may require that lenders and underwriters

of intermediaries, subsidiaries or holding companies of an

applicant for a cannabis entity license meet the requirements

under subsection (a) if the board determines that the

suitability of a lender or underwriter is at issue and is

necessary to consider a pending application for a cannabis

entity license.

(d) Revocable privilege.--The issuance or renewal of a

license, permit or other authorization to engage in a regulated

activity under this act by the board shall be a revocable

privilege.

(e) Waiver for publicly traded corporations.--The board may

waive the requirements of subsection (a) for a person directly

or indirectly holding ownership of securities in a publicly

traded corporation if the board determines that the holder of

the securities is not significantly involved in the activities

of the corporation related to the operation of a cannabis

establishment and does not have the ability to control the

corporation or elect one or more directors of the corporation.

(f) Waiver for subsidiaries.--If the applicant is a

subsidiary, the board may waive the requirements of subsection

(a) for a holding company or intermediary as follows:

(1) If the applicant is a publicly traded corporation,

the board may issue a waiver under this subsection if it

determines that the principal or essential employee does not

have the ability to control, have a controlling interest in

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or have the authority to elect one or more directors of the

holding company or intermediary and is not actively involved

in the regulated activities of the applicant.

(2) If the applicant is a noncorporate organization, the

board may issue a waiver under this subsection for a person

that directly or indirectly holds a beneficial or ownership

interest in the applicant if the board determines that the

person does not have the ability to control the applicant and

will not directly or indirectly be involved in any activities

related to the operation of the applicant's proposed cannabis

establishment.

(g) Ongoing duty.--A person applying for a license, permit

or other authorization to engage in a regulated activity under

this act shall have the continuing duty to provide information

required by the board or the bureau and to cooperate in any

inquiry or investigation.

(h) Criminal history record check.--The board shall conduct

a background investigation of a person for whom a waiver is

granted under this section.

Section 508. Change in ownership or control of cannabis entity

licensee.

(a) Notification and approval.--The following apply:

(1) A cannabis entity licensee shall notify the board

immediately upon becoming aware of any proposed or

contemplated change in ownership or control of a cannabis

entity licensee by a person or group of persons acting in

concert which involves any of the following:

(i) More than 20% of a cannabis entity licensee's

securities or other ownership interests.

(ii) More than 20% of the securities or other

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ownership interests of a corporation or other form of

business entity that owns directly or indirectly at least

20% of the voting or other securities or other ownership

interests of the cannabis entity license.

(iii) The sale, other than in the ordinary course of

business, of a cannabis entity licensee's assets.

(iv) Any other transaction or occurrence deemed by

the board to be relevant to license qualifications.

(2) The following apply:

(i) Notwithstanding paragraph (1), a cannabis entity

licensee shall not be required to notify the board of any

acquisition by an institutional investor under paragraph

(1)(i) or (ii) if:

(A) the institutional investor holds less than

10% of the securities or other ownership interests

referred to in paragraph (1)(i) or (ii);

(B) the securities or interests are publicly

traded securities and the institutional investor's

holdings of securities are purchased for investment

purposes only; and

board a certified statement that it has no intention

of influencing or affecting, directly or indirectly,

the affairs of the cannabis entity licensee.

(ii) The board shall be permitted to vote on matters

put to the vote of the outstanding security holders.

(3) Notice to the board and board approval shall be

required prior to completion of a proposed or contemplated

change of control or ownership of a cannabis entity license

that meets the criteria of this section.

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(b) Qualification of purchaser of cannabis entity license

and change of control.--The purchaser of the assets, other than

in the ordinary course of business, of a cannabis entity license

shall independently qualify for a license as provided under this

act and shall pay the license fee as required under section 313,

except as otherwise required under this section. The license fee

shall be paid upon the assignment and actual change of control

or ownership of the cannabis entity license.

section, "change in control or ownership of a cannabis entity

licensee" shall mean the acquisition by a person or group of

persons acting in concert of more than 20% of a cannabis entity

licensee's securities or other ownership interests, with the

exception of any ownership interest of the person that existed

at the time of initial licensing and payment of the initial

cannabis entity license fee, or more than 20% of the securities

or other ownership interests of a corporation or other form of

business entity which owns directly or indirectly at least 20%

of the voting or other securities or other ownership interests

of the licensee.

(d) Fee reduction.--The board may in the board's discretion

eliminate the need for qualification and proportionately reduce,

but not eliminate, the new license fee otherwise required under

this section in connection with a change of control or ownership

of a cannabis entity license, depending upon the type of

transaction, the relevant ownership interests and changes to the

ownership interests resulting from the transaction and other

considerations deemed relevant by the board.

(e) License revocation.--Failure to comply with this section

may cause the cannabis entity license issued under this act to

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be revoked or suspended by the board unless the purchaser of the

assets or the change in control or ownership that meets the

criteria of this section has been independently qualified in

advance by the board and any required license fee has been paid.

Section 509. Licensing of principals.

(a) License required.--All principals shall obtain a

principal license from the board.

(b) Application.--A principal license application shall be

in a form prescribed by the board and shall include the

following:

(1) Verification of status of the person as a principal

from the applicant or cannabis entity licensee.

(2) Job title or a description of person's

responsibilities as a principal.

(3) All releases necessary to obtain information from

governmental agencies, employers and other organizations as

required by the board.

(4) Fingerprints, which shall be submitted to the

Pennsylvania State Police.

(5) A photograph that meets the standards of the

Commonwealth Photo Imaging Network.

(6) Details relating to a similar license, permit or

other authorization granted to the person in another

jurisdiction, foreign or domestic.

(7) Additional information as may be required by the

board.

(1) Following review of the application and the receipt

and review of the background investigation, the board may

issue a principal license if the applicant has proven by

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clear and convincing evidence that the applicant is a person

of good character, honesty and integrity and is eligible and

suitable to be licensed as a principal.

(2) Each license issued to a principal under this

section shall include a unique alphanumeric principal

employee number.

(d) Nontransferability.--A principal license shall not be

transferable.

(e) Essential employee license exemption.--An individual who

receives a principal license need not obtain an essential

employee license.

Section 510. Registration of essential employees.

(a) Registration required.--All essential employees of an

applicant or cannabis entity licensee shall obtain an essential

employee registration from the board.

(b) Application.--Applications for registration as an

essential employee shall be in a form prescribed by the board

and shall include the following:

(1) Verification of the essential employee's employment

status by the applicant or cannabis entity licensee.

(2) Job title and a description of the essential

employee's employment duties and responsibilities.

(3) All releases necessary to obtain information from

governmental agencies, former and current employers and other

organizations or entities, as prescribed by the board.

(4) Fingerprints, which shall be submitted to the

Pennsylvania State Police.

(5) A photograph that meets the standards of the

Commonwealth Photo Imaging Network.

(6) Details relating to a similar license, permit or

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other similar authorization obtained in another jurisdiction,

foreign or domestic.

(7) Additional information as may be required by the

board.

(1) Following review of the application and the receipt

and review of the background investigation, the board may

issue an essential employee registration if the applicant has

proven by clear and convincing evidence that the applicant is

a person of good character, honesty and integrity and is

eligible and suitable to be registered as an essential

employee.

(2) Each essential employee registration issued by the

board shall include a unique alphanumeric essential employee

registration number.

(3) An essential employee shall not be required to

obtain a cannabis handler certificate under section 611.

(d) Registration not transferable.--An essential employee

registration issued under this section shall not be

transferable.

Section 511. Divestiture of disqualifying person.

In the event that an application for a cannabis entity

license is not approved by the board based on a finding that a

person that is a principal or has an interest in the person

applying for the cannabis entity license does not meet the

character requirements of section 506 or any other eligibility

requirements under this act, or that the person purchased a

controlling interest in a cannabis entity licensee in violation

of section 508, the board may:

(1) give the person the opportunity to completely divest

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the interest held in the applicant or the applicant's

affiliate, intermediary, subsidiary or holding company

seeking the cannabis entity license; and

(2) after divestiture under paragraph (1), reconsider

the person's or applicant's suitability for licensure in an

expedited proceeding and may, after the proceeding, issue the

person or applicant a cannabis entity license. The board

shall approve the terms and conditions of a divestiture under

this section.

(3) Under no circumstances shall a divestiture be

approved by the board if the compensation for the divested

interest exceeds the cost of the interest.

Section 512. Financial fitness requirements.

(a) Applicant financial information.--The board shall

require each applicant for a cannabis entity license to produce

the information, documentation and assurances concerning

financial background and resources as the board deems necessary

to establish by clear and convincing evidence the financial

stability, integrity and responsibility of the applicant or the

applicant's affiliate, intermediary, subsidiary or holding

company, including, but not limited to, bank references,

business and personal income and disbursement schedules, tax

returns and other reports filed with governmental agencies and

business and personal accounting, check records and ledgers. In

addition, each applicant shall in writing authorize the

examination of all bank accounts and records as may be deemed

necessary by the board.

(b) Financial backer information.--The board shall require

each applicant for a cannabis entity license to produce the

information, documentation and assurances as may be necessary to

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establish by clear and convincing evidence the integrity of all

financial backers, investors, mortgagees, bondholders and

holders of indentures, notes or other evidence of indebtedness,

either in effect or proposed. A banking or lending institution

or institutional investor may be waived from the qualification

requirements but shall produce for the board upon request any

document or information which bears any relation to the proposal

submitted by the applicant or applicants. The integrity of a

banking or lending institution or institutional investor shall

be judged upon the same standards as the applicant. Each banking

or lending institution and institutional investor shall produce,

upon request of the board, any document or information which

bears any relation to the application. In addition, the

applicant shall produce information, documentation or assurances

as required by the board to establish by clear and convincing

evidence the adequacy of financial resources.

require each applicant for a cannabis entity license at the time

of application to post a letter of credit or bond in an amount

established by regulation of the board to demonstrate the

financial ability to pay the cannabis entity license fee under

section 313 if issued a cannabis entity license by the board.

(d) Applicant's business experience.--The following apply:

(1) The board shall require each applicant for a

cannabis entity license to produce the information,

documentation and assurances as the board may require to

establish by clear and convincing evidence that the applicant

has sufficient business ability and experience to create and

maintain a successful, efficient cannabis establishment.

(2) Applicants shall produce the names of all proposed

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essential employees and a description of their respective or

proposed duties and responsibilities or employment as they

become known.

(e) Applicant's operational viability.--The following apply:

(1) In assessing the financial viability of an

applicant's proposed cannabis establishment, the board shall

make a finding, after review of the application, that the

applicant is likely to maintain a financially successful,

viable and efficient business operation and will likely be

able to maintain sustained growth in revenue.

(2) Notwithstanding any provision of this act to the

contrary, an application for a cannabis entity license that

includes a commitment or promise to pay a cannabis entity

license fee in excess of the amount provided in section 313

or a contribution of money to the Cannabis Business

Development Fund in excess of the amounts specified in this

act, except as otherwise authorized, shall not enhance the

applicant's viability or status as an applicant for a

cannabis entity license and shall not be considered by the

board in the consideration of the applicant's application for

a cannabis entity license.

(f) Additional information.--In addition to other

information required under this act, a person applying for a

cannabis entity license may be required to provide the following

information:

(1) The organization, financial structure and nature of

all businesses operated by the person, including any

affiliate, intermediary, subsidiary or holding company. If

required by the board and if the applicant is a corporation,

the names and personal employment and criminal histories of

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all officers, directors, principals and essential employees

of the corporation, the names of all holding, intermediary,

affiliate and subsidiary companies of the corporation and the

organization, financial structure and nature of all

businesses operated by the holding, intermediary or

subsidiary companies, including names and personal employment

and criminal histories of the officers, directors and

principal employees of the corporations and companies as the

board may require.

(2) The extent of securities held in the corporation by

all officers, directors and underwriters and their

remuneration in the form of salary, wages, fees or otherwise.

Section 513. Alternative licensing standards.

(a) Determination.--The board may determine whether the

licensing standards of another jurisdiction within the United

States or Canada in which an applicant for a cannabis entity

license is similarly licensed are comprehensive and thorough and

provide similar and adequate safeguards as those required under

this act. If the board makes that determination after receiving

and evaluating the licensing standards of the other

jurisdiction, the board may issue a cannabis entity license to

an applicant who holds a cannabis entity license in good

standing in the other jurisdiction or incorporate the

information received from the other jurisdiction, in whole or in

part, into the board's evaluation of the applicant.

(b) Abbreviated process.--In the event that an applicant for

a cannabis entity license is licensed in another jurisdiction in

the United States or Canada, the board may use an abbreviated

process requiring only that information determined by the board

to be necessary to consider the issuance of the cannabis entity

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license, including the financial viability of the applicant.

Nothing in this section shall be construed to waive any fees

associated with the approval and issuance of a cannabis entity

license through the normal application process.

Section 514. Bond for issuance of cannabis entity license.

Before a cannabis entity license is issued by the board, the

applicant shall post a bond in an amount established by the

board, which may not exceed $500,000, and which shall be payable

to the Commonwealth. The bond shall be used to guarantee that

the cannabis entity licensee faithfully makes payments, keeps

books and records, makes reports and engages in regulated

activities in conformity with this act and regulations and

orders of the board. The bond shall not be canceled by a surety

on less than 30 days' notice in writing to the board. If a bond

is canceled and the cannabis entity licensee fails to file a new

bond with the board in the required amount on or before the

effective date of cancellation, the licensee's license may be

suspended or revoked by the board. The total and aggregate

liability of the surety on the bond shall be limited to the

amount specified in the bond.

Section 515. Required content of license, permit or other

authorization.

A cannabis entity license, permit or other authorization to

engage in a regulated activity under this act shall, in addition

to any other requirements of this act or prescribed by

regulation of the board, include the following:

(1) The name of the person to whom the license, permit

or other authorization is issued.

(2) The type of license, permit or other authorization

issued and the regulated activity authorized by the license,

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permit or other authorization to engage in a regulated

activity under this act.

(3) A license, permit or authorization number, which

shall be unique to the cannabis entity licensee, permittee or

other person.

(4) The street and mailing address of the cannabis

entity licensee's cannabis establishment or of the permittee

or other person.

(5) A statement that approval and issuance of a cannabis

entity license, permit or other authorization to engage in a

regulated activity under this act shall not be deemed a

property or vested right and that the license or permit may

be revoked by the board.

Section 516. Renewals.

(a) Renewal.--The following apply:

(1) For the three-year period following the effective

date of this act, all licenses, permits, certificates,

registrations and other authorizations to engage in a

regulated activity under this act, unless otherwise provided,

shall be subject to annual renewal and, thereafter, shall be

subject to renewal every three years. Nothing in this

subsection shall relieve a licensee, permittee or holder of a

certificate, registration or other authorization of the

affirmative duty to notify the board of any changes relating

to the status of the license, permit, certificate,

registration or other authorization or to any other

information contained in the application materials on file

with the board.

(2) Except as provided in this act, the application for

renewal shall be submitted at least 90 days prior to the

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expiration of the license, permit, certificate, registration

or other authorization to engage in a regulated activity

under this act and shall include an update of the information

contained in the initial application and prior renewal

applications and the payment of the renewal fee.

(3) Unless otherwise specifically provided in this act,

the amount of a renewal fee shall be calculated by the board

to reflect the longer renewal period. A license, permit,

certificate, registration or other authorization for which a

completed renewal application and fee, if required, has been

received by the board will continue in effect unless and

until the board sends written notification to the holder of

the license, permit, certificate, registration or other

authorization that the board has denied the renewal of the

license, permit, certificate, registration or other

authorization.

(b) Sanctions authorized.--In addition to any other

sanctions the board may impose under this act, the board may

suspend, revoke or deny renewal of any license, permit,

certification, registration or other authorization to engage in

a regulated activity under this act, if the board receives any

information from any source that the person seeking renewal or

an officer, principal, director, owner or essential employee of

the person is in violation of any provision of this act, that

the person has furnished the board with false or misleading

information or that the information contained in the person's

initial application or any renewal application is no longer true

and correct. In the event of a revocation or failure to renew,

the person's authorization to conduct the previously approved

regulated activity shall immediately cease, and all fees paid

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shall be deemed to be forfeited. In the event of a suspension,

the person's authorization to conduct the previously approved

regulated activity shall immediately cease until the board has

notified the person that the suspension is no longer in effect.

Section 517. Home cultivation.

(a) General rule.--Notwithstanding any provision of the

Medical Marijuana Act, the act of April 14, 1972 (P.L.233,

No.64), known as The Controlled Substance, Drug, Device and

Cosmetic Act, or any other law or regulation to the contrary,

beginning on January 1, 2022, an individual holding a valid

identification card issued under section 501 of the Medical

Marijuana Act who is resident of this Commonwealth and 21 years

of age or older may:

(1) Apply to the board for a home cultivation permit

authorizing the individual to plant, cultivate, harvest, dry,

process or otherwise possess cannabis plants, with a limit of

three mature cannabis plants and three immature cannabis

plants, without holding a cannabis cultivator license or

cannabis processor license under this act; or

(2) Plant, cultivate, harvest, dry, process or possess,

within the individual's private residence or on the grounds

of the individual's private residence, no more than three

mature cannabis plants and three immature cannabis plants at

any one time.

(b) Requirements.--The following apply.

(1) Home cultivation of cannabis authorized under this

section must take place in an enclosed, secure and locked

space, room or area within the individual's private residence

or on the grounds of the individual's private residence.

(2) For the purpose of home cultivation, an individual

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under subsection (a) shall only purchase cannabis seeds from

a cannabis retailer or dispensary.

(3) Cannabis seeds may not be given or sold to any other

person.

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

location or otherwise positioned inside or on the grounds of

the individual's private residence in a manner which would

subject the cannabis plants to ordinary public view. The

individual shall take reasonable steps to assure that

cannabis cultivated, harvested, produced or processed as

provided under this section is stored in an enclosed, secure

and locked space, room or area inside the individual's

private residence.

(5) An individual who cultivates cannabis as provided

under this section shall take reasonable precautions to

ensure the cannabis plants are secure from unauthorized

access, including unauthorized access by an individual under

21 years of age.

(6) The cultivation, harvest, drying and processing of

cannabis by an individual under subsection (a) shall only

occur on residential property lawfully in possession of the

individual or with the consent of the owner, lessee or other

person in lawful possession of the residential property. An

owner or lessor of residential property may prohibit the

cultivation of cannabis by a lessee.

(7) No residential dwelling, including a private home,

apartment or condominium unit, which is not divided into

multiple dwelling units shall contain more than three mature

cannabis plants and three immature cannabis plants at any one

time.

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(8) Cannabis plants may only be maintained and tended by

an individual under subsection (a) or a designated caregiver

of the individual who holds a valid identification card

issued under section 501 of the Medical Marijuana Act and who

holds a valid home cultivation permit issued by the board.

(9) An individual who cultivates cannabis plants in

violation of the limit prescribed under subsection (a)(1) or

who sells or gives away cannabis plants, cannabis or cannabis

products cultivated, harvested, dried, processed or otherwise

produced under this section shall be subject to the civil

penalties provided in this section and the applicable

provisions of The Controlled Substance, Drug, Device and

Cosmetic Act and loss of cannabis home cultivation privileges

under this section.

(1) An individual under subsection (a) or a caregiver of

the individual under subsection (b)(8) may apply to the board

for a home cultivation permit in the form and manner as the

board shall prescribe in regulation.

(2) An application for a home cultivation permit may be

submitted to the board electronically. The following apply:

(i) An application for a home cultivation permit

shall be accompanied by a $100 fee.

(ii) A home cultivation permit shall be renewed,

annually, upon approval of the board and payment of a

$100 renewal fee.

(3) An individual who violates this subsection shall be

assessed a civil penalty as follows:

(i) Not more than $100 for a first offense.

(ii) Not more than $200 for a second offense.

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(iii) Not more than $500 for a third or subsequent

offense.

CHAPTER 6

LICENSE, PERMIT OR OTHER AUTHORIZATION

Section 601. Additional requirements for issuance.

(a) Issuance.--The following apply:

(1) In addition to any other requirement enumerated in

this act, a cannabis entity licensee or other person that the

board determines eligible to receive a license, permit or

other authorization to engage in a regulated activity under

this act shall be issued a license, permit or other

authorization to engage in a regulated activity upon the

payment of any fee required under this act or established by

regulation of the board and upon the fulfillment of any

conditions required under this act or by regulation of the

board. The cannabis entity licenses issued under this chapter

shall be in addition to the expedited approval cannabis

entity licenses authorized under sections 503 and 504.

(2) Nothing in this act shall be construed to create an

entitlement to a license, permit or other authorization to

engage in a regulated activity under this act by any person.

The board shall in the board's sole discretion issue, renew,

condition or deny a cannabis entity license, permit or other

authorization to engage in a regulated activity under this

act based upon the requirements enumerated in this act and

whether the issuance of a license, permit or other

authorization will promote equity, enhance economic

development or job creation, is in the best interests of this

Commonwealth and advances the intent and purposes of this

act.

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(b) Development of scoring system.--To facilitate the

issuance of cannabis entity licenses under this chapter, the

board shall, by regulation, develop a scoring system under which

applications for a cannabis entity license, except for a

cannabis microbusiness license, shall be administratively ranked

and scored based on the clarity, organization and quality of the

information provided in the application for licensure. The

scoring system shall be based upon a point scale with the board

determining the number of points for each category, the point

categories and the system of point distribution. The board

shall:

(1) Rank all applications, from the most to the least

points, according to the point system. The board may, in

accordance with the process specified by regulation, adjust

the point system or utilize a separate point system and

rankings with respect to the review of an application for

which a conditional license is sought. If two or more

eligible applicants have the same number of points, those

applicants shall be grouped together and, if there are more

eligible applicants in this group than the remaining number

of licenses available, the board may, if determined necessary

to meet market demand, increase the number of the applicable

cannabis entity licenses consistent with the requirements of

section 616.

(2) In ranking applications, the board shall give

priority to:

(i) An applicant who presents a plan that reflects

high potential for new job creation and economic

development.

(ii) The degree to which an applicant presents a

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plan for the project which will likely lead to the

creation of quality, living-wage jobs and full-time

permanent jobs for residents of this Commonwealth

generally and particularly for residents of the

municipality where the cannabis establishment is located

or is proposed to be located.

(iii) An applicant who submits an attestation

affirming that the applicant will use best efforts to

utilize organized labor in the construction or

retrofitting of the building or other facility, which

will be used to house the applicant's cannabis

establishment or which is associated with the cannabis

operations.

(iv) An applicant who is a current resident of a

designated opportunity zone and who has resided in the

designated opportunity zone for three or more consecutive

years at the time the application for a cannabis entity

license is filed with the board. To the extent possible,

at least 25% of the total licenses issued to applicants

for a cannabis entity license shall be awarded to

applicants who have resided in a designated opportunity

zone for three or more consecutive years at the time of

making the application, regardless of where the cannabis

establishment is or is proposed to be located.

(v) An applicant who presents a plan to employ a

select number of individuals who reside in a designated

opportunity zone, and who proposes to locate the

applicant's cannabis establishment in a designated

opportunity zone.

(vi) An applicant whose application:

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(A) Presents a social and economic equity plan

or an agreement to participate in a social and

economic equity activity, as attested to, which is

similar or the same as provided in section 503(c)(9).

(B) Presents a plan, attested to, which includes

processes and procedures for the development and

implementation of a plan to ensure inclusion and

participation by diverse businesses and disadvantaged

businesses, service-disabled veteran-owned small

businesses and veteran-owned small businesses,

disadvantaged farmer-owned small businesses or

residents of designated opportunity zones in this

Commonwealth and which further ensures that the

businesses and individuals are accorded equality of

opportunity in employment and contracting by the

applicant and the applicant's contractors,

subcontractors, assignees, lessees, agents and

vendors.

plan, attested to, to employ at least 25% of

individuals who reside in an opportunity zone, of

whom at least 25% reside in an opportunity zone

nearest to the location or proposed location of the

cannabis establishment. The failure to meet the

percentages of opportunity zone residents as

employees of the cannabis establishment within six

months of the opening of the cannabis establishment

may result in the suspension of a license or

conditional license, as applicable, issued based on

an application with an opportunity zone employment

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plan.

(D) Presents a good faith plan for enhancing the

participation and representation of diverse groups in

the operation of the applicant's cannabis

establishment through the ownership and operation of

business enterprises associated with or utilized by

the cannabis entity licensees or through the

provision of goods or services utilized by the

cannabis entity licensees at the cannabis

establishment and through participation in the

ownership of the applicant.

(vii) An applicant who is a current resident of a

designated opportunity zone and has resided in the

designated opportunity zone for three or more consecutive

years at the time of making the application.

(3) The board may award up to two bonus points for an

applicant's plan to engage with the community. Community

engagement may be demonstrated by the applicant's

participation in one or more of, but not limited to, the

following:

(i) Establishing an incubator program designed to

increase participation in this Commonwealth's regulated

cannabis industry by persons who qualify as social and

economic equity applicants.

(ii) Providing financial assistance for substance

use disorder prevention, treatment and education

programs.

(iii) Providing education or job training to members

of an impacted family, residents of opportunity zones and

other individuals, including student internships, to

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prepare them for a career in the Commonwealth's regulated

cannabis industry.

(iv) Educating children and teens about the

potential harms of cannabis use.

(4) If two or more applications receive an equal score,

the board may award bonus points for any other activity or

measure proposed by an applicant that demonstrates a

commitment to community engagement.

(5) If an applicant is awarded a cannabis entity

license, the implementation of a plan provided in the

application for licensure under paragraphs (2) and (3) shall

be a mandatory condition for issuance of the license. Any

variation from or failure to satisfy fully the conditions of

the plan as enumerated in the application or to implement the

plan may result in the imposition of sanctions under section

911.

requirements provided in this act, the board shall also take

into account the following factors when considering an

application for a cannabis entity license:

(1) The location and quality of the proposed cannabis

establishment, including, but not limited to, road and

transit access, parking and centrality to market service

areas.

(2) The applicant's good faith plan to recruit, train

and upgrade diversity in all employment classifications at

the cannabis establishment.

(3) The history and success of the applicant in

developing cannabis establishments in other jurisdictions, if

applicable to the applicant.

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(4) The record of the applicant and the applicant's

developer in meeting commitments to local agencies,

community-based organizations and employees at other

locations, if applicable to the applicant.

(5) The degree to which potential adverse effects which

might result from the project, including costs of meeting the

increased demand for health care, child care, public

transportation, affordable housing and social service

programs, such as substance use disorder prevention and

treatment programs, will be addressed and mitigated.

(6) The record of the applicant and the applicant's

developer regarding compliance with:

(i) Federal, State and local discrimination, wage

and hour, disability and occupational and environmental

health and safety laws;

(ii) State and local labor relations and employment

laws; and

(iii) labor peace agreements.

(d) Opportunity zones.--In consideration of an application

for a cannabis entity license which proposes to locate a

cannabis establishment in an opportunity zone, the board may

prioritize the application if:

(1) Past criminal cannabis activity contributed to

higher concentrations of law enforcement activity,

unemployment and poverty within parts of or throughout the

opportunity zone.

(2) The opportunity zone has a crime index of 1,000 or

higher based upon the indexes listed in the most recently

annual Uniform Crime Report compiled by the Pennsylvania

State Police.

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(3) The opportunity zone has a population of 120,000 or

more as depicted in the most recently compiled Federal

decennial census as of the effective date of this paragraph

or is located in a rural area of this Commonwealth.

(4) The opportunity zone ranks in the top 30% of local

government entities in this Commonwealth for marijuana or

hashish arrests related to the possession of a controlled

substance in violation of the applicable provisions of the

act of April 14, 1972 (P.L.233, No.64), known as The

Controlled Substance, Drug, Device and Cosmetic Act.

(5) A municipality that comprises the opportunity zone

has an average annual unemployment rate that ranks in the top

15% of all local government entities in this Commonwealth for

the calendar year immediately preceding the calendar year in

which the application for licensure will be submitted to the

board, based upon the average annual unemployment rate

calculated for the relevant calendar year by the United

States Bureau of Labor Statistics.

(e) Persons not eligible for license, permit or other

authorization.--The following persons shall not be eligible for

a license, permit or other authorization to engage in a

regulated activity under this act, except in extraordinary

circumstances as determined by the board:

(1) An applicant who has been convicted of an offense

related to the functions or duties of owning and operating a

business within three years of the application date, except

that if the board determines that the applicant is otherwise

suitable to be issued a license, permit or other

authorization to engage in a regulated activity under this

act and that granting the license, permit or other

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authorization is not inconsistent with public safety, the

board shall conduct a thorough review of the nature of the

crime and conviction, the circumstances surrounding the crime

and evidence of rehabilitation of the applicant and evaluate

the suitability of the applicant based on the evidence found

through the review. In determining which disqualifying

convictions substantially related to the functions or duties

of owning and operating a cannabis entity, the board's

determination shall include, but not be limited to, the

following:

(i) a felony conviction within the past five years

involving fraud, money laundering, forgery and other

unlawful conduct related to owning and operating a

business; and

(ii) a felony conviction within the past five years

for hiring, employing or using a minor in transporting,

carrying, selling, giving away, preparing for sale or

peddling any controlled substance to a minor or other

person or selling, offering to sell, furnishing, offering

to furnish, administering or giving any controlled

substance to a minor or other person.

(2) A person under 21 years of age.

(3) A partnership or a corporation, unless each member

of the partnership or each of the principal officers and

directors or other essential employees of the corporation is

a citizen of the United States or a person lawfully admitted

for permanent residence in the United States, not less than

21 years of age. A corporation which otherwise conforms to

the requirements of this act may be issued a license, permit

or other authorization if each of the corporation's principal

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officers and more than one-half of the directors or other

essential employees of the corporation are citizens of the

United States or persons lawfully admitted for permanent

residence in the United States. A corporation organized under

15 Pa.C.S. (relating to corporations and unincorporated

associations) which otherwise conforms to the requirements of

this act may be licensed, permitted or authorized to engage

in a regulated activity under this act if each of the

corporation's principal officers and directors or other

essential employees are not under 21 years of age.

(4) A person that had a license, permit or other

authorization issued by the board revoked for cause, until

the expiration of one year from the date of the revocation.

(5) A person that does not hold a license, permit or

other authorization under this act but who has been convicted

of a misdemeanor or felony in violation of this act, until

the expiration of a two-year period from the date of the

sentence for the conviction.

(6) A corporation or partnership, if a principal,

officer, director, essential employee or partner, while not

authorized to hold a license, permit or other authorization

to engage in a regulated activity under this act, has been

convicted of a misdemeanor or felony in violation of this

act, or, if required to hold a license, permit or other

authorization to engage in a regulated activity under this

act, has had the license, permit or other authorization

revoked for cause, until the expiration of a one-year period

from the date of the conviction or revocation as determined

by the board.

(e) Certain officials not eligible.--Except as otherwise

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provided in this act, it shall be unlawful for a law enforcement

officer of any police department, including a member of the

Pennsylvania State Police, in this Commonwealth to have a

financial interest, either directly or indirectly, in a

regulated activity under this act. A person may not be denied a

license, permit or other authorization under this act based

solely on the grounds of being the spouse or domestic partner of

a law enforcement officer. The solicitation or recommendation

made by a law enforcement officer to the holder of a license,

permit or other authorization to engage in a regulated activity

under this act to purchase cannabis or cannabis products from a

particular licensed cannabis entity shall be presumptive

evidence of the interest of the law enforcement officer in a

regulated activity under this act.

(f) Elected officials.--The following apply:

(1) An elected official of a local government may not be

subject to the limitations under subsection (e), unless the

duties of the local elected official directly relate to the

operation or management of the municipality's police

department, municipal oversight of a regulated activity under

this act, review and approval of a voluntary community

agreement between the local government and a cannabis entity

licensee and regulation or enforcement of municipal zoning

laws.

(2) An elected official of a local government shall be

subject to the restrictions and prohibitions applicable to

members of the board under section 303(c)(1), (3), (5), (6),

(7) and (8).

(g) Use as collateral prohibited.--A cannabis entity license

issued under this act may not be pledged or deposited as

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collateral security for a loan or upon any other condition. A

pledge or deposit, and a contract providing for the use of a

cannabis entity license as collateral security, shall be void.

Section 602. Conditional cannabis entity license.

(a) Issuance.--The following apply:

(1) Notwithstanding any provision of this act to the

contrary, upon a finding that it is in the public interest,

the board may issue a conditional cannabis entity license to

a person that satisfies the qualifications for licensure

under this chapter and upon payment of the applicable

cannabis entity license fee under section 313. A conditional

cannabis license may not be issued until the completion of a

background investigation of the applicant and each principal,

officer, director, essential employee or other employee or

agent of the applicant, as determined by the board, and prior

to full compliance by the applicant with other conditions of

licensure as provided under this act.

(2) The board shall begin accepting applications for

conditional cannabis entity licenses within 45 days after the

board issues the final expedited approval cannabis entity

license under sections 503 and 504. The board may, in the

board's discretion, issue up to 35% of the total licenses

issued for each type of cannabis entity license as

conditional licenses, which shall include a conditional

license issued to an applicant which is subsequently replaced

by the board with a permanent license.

(3) The board shall review the qualifications of an

applicant for a conditional cannabis entity license and, not

more than 60 days after the receipt of an application, make a

determination as to whether the application is approved or

20210HB2050PN2333 - 198 -

denied or whether the board requires additional information

or more time to adequately review the application.

(4) If an application for a conditional cannabis entity

license is approved, the board shall notify the applicant in

writing or electronically of the approval of the application.

The notification shall be made within 15 days of the date the

application is approved by the board.

(5) If an application for a conditional cannabis entity

license is denied, the board shall notify the applicant in

writing of the specific reason for the denial and provide

with the written notice a refund of 80% of the application

fee submitted with the application.

(6) If an applicant for a conditional license fails to

submit all information required in the application for a

conditional license resulting in the application being deemed

deficient and incomplete by the board, the following apply:

(i) The board shall forward a deficiency notice to

the applicant that describes the information needed to

cure the deficiency.

(ii) The applicant shall have 10 calendar days from

the date of the deficiency notice to submit a complete

application to the board.

(iii) If the applicant fails to cure the deficiency

within the 10-day period under subparagraph (ii) or

resubmits an application that is still incomplete after

the opportunity to cure, the board may reject or

disqualify the application.

(iv) The board may request revisions to an

application and shall retain final approval over the

structural features of an applicant's proposed cannabis

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establishment.

(7) The board's decision to approve, renew or deny a

license or conditional cannabis entity license made under

this chapter shall be considered a final agency decision for

the purposes of 2 Pa.C.S. (relating to administrative law and

procedure) or with procedures adopted by order of the board.

(b) Suitability and financial capability.--An applicant

shall provide the board with satisfactory evidence of the

applicant's suitability and financial capability for a

conditional cannabis entity license prior to the board approving

the conditional license.

of a conditional cannabis entity license by the board, the

applicant shall submit a complete application for a permanent

cannabis entity license under section 505.

(d) Expiration.--The following apply:

(1) If the board fails to approve and issue a permanent

cannabis entity license for the holder of a conditional

cannabis entity license within 18 months of the time

established by the board under section 502 when applications

are to be filed and deemed complete, the conditional license

shall expire.

(2) The failure of a holder of a conditional cannabis

entity license to meet the requirements for a permanent

cannabis entity license under this act shall result in the

immediate forfeiture and revocation of the conditional

cannabis entity license.

(3) Upon the expiration of a conditional cannabis entity

license or the failure of a holder of a conditional cannabis

entity license to meet the requirements for a permanent

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cannabis entity license, all regulated activities authorized

under the conditional cannabis entity license shall cease

until a permanent cannabis entity license is issued to the

person by the board.

(e) Return of fee.--In the event of the expiration of a

conditional cannabis entity license or the denial of an

application for a permanent cannabis entity license under

section 601, the applicant shall be entitled to a return of 75%

of the conditional cannabis entity license fee submitted with

the application for a conditional cannabis entity license.

Section 603. Licensure of cannabis microbusinesses.

(a) Licensure.--The board shall ensure that a sufficient

percentage of cannabis entity licenses issued for each type of

cannabis entity are designated for and issued only to cannabis

microbusinesses. The determination of the percentage for each

type of license issued to cannabis microbusinesses shall include

the number of conditional licenses issued to cannabis

microbusinesses for each type of cannabis entity license as the

percentage of the total number of conditional licenses issued by

the board under section 602, which shall not be mutually

exclusive of the percentage of cannabis entity licenses issued

to cannabis microbusinesses under this subsection.

(b) Eligibility.--To be eligible for a cannabis entity

license, an applicant for a cannabis microbusiness license must

meet the following requirements:

(1) One hundred percent of the ownership interest in the

cannabis microbusiness shall be held by residents of this

Commonwealth who have resided in this Commonwealth for at

least the past three consecutive years.

(2) At least 51% of the owners of the cannabis

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microbusiness have been residents of the municipality in

which the cannabis microbusiness is located, or proposed to

be located, or a municipality bordering or in a reasonable

proximity to the municipality in which the cannabis

microbusiness is located, or proposed to be located, for at

least two years.

(3) The applicant shall employ no more than 10 full-time

or part-time employees.

(4) In the case of an applicant applying for a cannabis

microbusiness license as a cannabis cultivator, the applicant

shall have experience as a farmer or with the cultivation of

agricultural or horticultural products, operating an

agricultural-related business or operating a horticultural

business.

(5) In the case of an applicant applying for a cannabis

microbusiness license as a cannabis processor, the applicant

shall have experience with processing agricultural products,

if experience in processing agricultural products is required

by the board, based on information provided by the applicant

in the application for licensure.

(6) The applicant shall provide a description of the

enclosed, locked facility or area where cannabis will be

cultivated or grown, harvested, produced, processed, packaged

or otherwise prepared for sale or offered for sale by the

cannabis microbusiness licensee or for distribution, delivery

and sale to a cannabis entity licensee.

(7) The applicant shall provide a description of the

applicant's cultivation, processing, inventory and packaging

plans.

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(1) A cannabis microbusiness may contain up to 5,000

square feet of canopy space on the premises of the cannabis

establishment for plants in the flowering stage.

(2) The board may, by regulation, authorize an increase

or decrease of flowering stage cultivation space in

increments of 3,000 square feet based on:

(i) Market demand.

(ii) Cannabis microbusiness capacity.

(iii) The cannabis microbusiness licensee's history

of compliance or noncompliance with this act and

regulations of the board promulgated under this act.

(3) Notwithstanding paragraphs (1) and (2), the maximum

canopy space for cultivating cannabis plants in the flowering

stage shall not exceed 14,000 square feet, which must be

cultivated in all stages of growth in an enclosed, locked

facility or area of the cannabis microbusiness licensee's

cannabis establishment.

(4) A cannabis microbusiness licensee may share the

premises of its cannabis establishment with a cannabis

processor licensee or cannabis retailer licensee, or both, if

each licensee stores currency and cannabis or cannabis

products in a separate secured vault to which the other

licensee does not have access or all licensees sharing a

vault share more than 50% of the same ownership.

(d) Issuance of license to certain persons prohibited.--The

following apply:

(1) A cannabis microbusiness license may not be issued

to a person that holds a cannabis cultivator license or to a

partnership, corporation, limited liability company or trust

or an intermediary, subsidiary, holding company, affiliate or

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any other form of business entity having more than 10% legal,

equitable, beneficial or financial interest, directly or

indirectly, in a cannabis cultivator license or to any

principal officer, agent, employee or individual with any

form of ownership or control over a cannabis cultivator

licensee, except for a person that owns no more than 5% of

the outstanding shares of a cannabis cultivator license whose

shares are publicly traded on an exchange within the meaning

of the Securities Exchange Act of 1934 (48 Stat. 881, 15

U.S.C. § 78a et seq.).

(2) A person that holds a cannabis microbusiness license

in this Commonwealth or a partnership, corporation, limited

liability company or trust or a subsidiary, intermediary,

holding company, affiliate or agent or any other form of

business entity licensed in this Commonwealth as a cannabis

microbusiness shall not have more than 10% legal, equitable

or beneficial interest, directly or indirectly, in a cannabis

cultivator licensee, nor shall a partnership, corporation,

limited liability company or trust or a subsidiary,

intermediary, holding company, affiliate or other form of

business entity having a legal, equitable or beneficial

interest, directly or indirectly, in a person licensed in

this Commonwealth as a cannabis microbusiness be a principal

officer, agent, employee or other person with any form of

ownership or control over a cannabis cultivator licensee,

except for a person who owns no more than 5% of the

outstanding shares of a cannabis cultivator license whose

shares are publicly traded on an exchange within the meaning

of the Securities and Exchange Act of 1934.

(e) Transferability.--A cannabis entity license issued to a

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cannabis microbusiness as provided under this act shall not be

sold or otherwise transferred to any other person.

(f) Compliance with regulations.--A cannabis microbusiness

shall comply with the requirements of this act and other

requirements as may be established by regulation of the board as

provided under this act.

(g) Term of license.--Notwithstanding section 516, a

cannabis entity license designated, approved and issued by the

board to a cannabis microbusiness shall be valid for five years,

except that, for the three-year period following initial

issuance, a cannabis entity license issued to a cannabis

microbusiness shall be subject to annual renewal by the board

and, thereafter, shall be subject to renewal every five years,

unless the board determines, through regulation, that a shorter

license renewal period is necessary to ensure that cannabis

microbusiness licenses are operating as provided under this act

and regulations of the board. The following apply:

(1) Six months prior to the expiration of a cannabis

microbusiness license, the microbusiness seeking renewal of

the cannabis entity license shall submit a renewal

application accompanied by the renewal fee to the board.

(2) If the renewal application satisfies the

requirements of this act and regulations of the board for the

applicable type of cannabis entity license subject to

renewal, the board may renew the cannabis microbusiness's

cannabis entity license.

(3) If the board receives a complete renewal application

but fails to act prior to the expiration of the cannabis

microbusiness's cannabis entity license, the cannabis entity

license held by the cannabis microbusiness shall continue in

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effect until the renewal application is acted upon by the

board.

(h) Microbusiness application and license fee.--The maximum

fee assessed by the board for the issuance or renewal of a

cannabis microbusiness cannabis entity license shall be no more

than half the application fee, license fee and license renewal

fee applicable to a license of the same type of cannabis entity

license issued to an applicant that is not a cannabis

microbusiness as provided under section 313 and other provisions

of this act.

(i) Construction.--Notwithstanding any other provision of

this act, nothing in this section shall be construed to prohibit

or otherwise prevent a person that holds a cannabis

microbusiness license from cultivating, processing,

distributing, transporting, delivering or selling or offering

for sale cannabis and cannabis products in accordance with the

provisions of this act and regulations of the board.

Section 604. Cannabis cultivator license.

(a) Eligibility and requirements.--

(1) The following apply:

(i) A cannabis cultivator license authorizes the

acquisition, possession, distribution, delivery,

cultivation and sale of cannabis from the licensed

cannabis establishment of a licensed cannabis cultivator

to a duly licensed cannabis processor, cannabis

microbusiness or cannabis retailer in this Commonwealth.

(ii) The board shall promulgate regulations

authorizing cannabis cultivator licensees to engage in

certain types of processing without the need to acquire a

cannabis processor license from the board. The

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regulations shall specify the processing activities a

cannabis cultivator may engage in under the cannabis

cultivator license in accordance with paragraph (5).

(iii) For purposes of this section, cultivation

shall include, but not be limited to, the agricultural

production practices of planting, growing, cloning,

harvesting, drying, curing, grading and trimming of

cannabis by the holder of a cannabis cultivator license

issued by the board under this act.

(2) A person or entity may not hold a legal, equitable,

ownership or beneficial interest, directly or indirectly, in

more than three cannabis cultivator licenses under this act.

(3) No person or entity that is employed by, is an agent

of, has a contract to receive payment in any form from, is a

principal officer of or is an entity controlled by or

affiliated with a principal or officer of a cannabis

cultivator licensee shall hold a legal, equitable, ownership

or beneficial interest, directly or indirectly, in a cannabis

cultivator license which would result in the person or entity

owning or controlling, in combination with a cannabis

cultivator licensee, principal or officer of a cannabis

cultivator licensee or entity controlled or affiliated with a

principal or officer of a cannabis cultivator licensee by

which the person is employed, is an agent of or participates

in the management of, more than three cannabis cultivator

licenses.

(4) A cannabis cultivator licensee's cannabis

establishment may not contain more than 125,000 square feet

of canopy space for plants in the flowering stage for the

cultivation of cannabis as provided under this act.

20210HB2050PN2333 - 207 -

(5) A cannabis cultivator licensee may process cannabis,

cannabis concentrates and cannabis products if the intent to

engage in the processing activities is included in the

licensee's application for a cannabis cultivator license.

(6) Beginning December 31, 2023, or one year after the

effective date of this act, whichever is later, no cannabis

cultivator licensee shall transport cannabis or cannabis

products to any cannabis entity licensee or cannabis testing

laboratory licensed under this act unless the cannabis

cultivator licensee has been approved for and issued a

cannabis transporter license by the board.

(7) A person may not have a direct or indirect financial

or controlling interest in more than three cannabis

cultivator licenses issued under this section.

(b) Application.--The following apply:

(1) A person shall apply to the board for a cannabis

cultivator license in the form and manner and according to

the schedule for applying for a cannabis entity license

established by the board under section 502. An application

for a cannabis cultivator license shall be accompanied by the

license fee under section 313 and a nonrefundable application

fee of $5,000.

(2) A person applying for a cannabis cultivator license

shall:

(i) Have at least one significantly involved person

that has resided in this Commonwealth for at least two

consecutive years as of the date of the application.

(ii) Provide proof, in a manner determined by the

board, that the person under subparagraph (i) and any

other person with a controlling interest who also has

20210HB2050PN2333 - 208 -

decision-making authority over the operation or function

of the cannabis cultivator's cannabis establishment has

been a resident of this Commonwealth for two or more

years and is 21 years of age or older.

(iii) Provide for the conduct of a background

investigation for an owner, except for an owner who holds

less than a 5% controlling interest in the applicant for

a cannabis cultivator license or who is a member of a

group that holds less than a 20% controlling interest in

the cannabis cultivator license and no member of that

group holds more than a 5% controlling interest in the

total group investment, and who lacks the authority to

make controlling decisions regarding the proposed

cannabis cultivator's operations, and a director, officer

and employee.

(iv) Provide for the conduct of a background

investigation for a director, officer or essential

employee or other employee as required by the board.

(v) Satisfy all other requirements for licensure

under this act and regulations of the board promulgated

under this act.

cannabis cultivator licenses, of which a sufficient percentage

shall be conditional licenses issued under section 602 and at

least 25% of the total number of cannabis cultivator licenses

and conditional licenses shall be designated for and only issued

to cannabis microbusinesses under section 603. If qualified

applicants exist, the board may issue a sufficient number of

additional permanent licenses to meet market demand. Nothing in

this section shall be construed to preclude the board from

20210HB2050PN2333 - 209 -

making a request for additional applicants for a cannabis

cultivator license as the board deems necessary to meet market

demand under section 616.

(d) Duties of board.--In addition to the board's regulatory

authority under other provisions of this act, the board, by

regulation, shall:

(1) Require cannabis cultivator licensees to post the

license or conditional license in a conspicuous location

inside the licensee's cannabis establishment at all times.

(2) Require cannabis cultivator licensees or holders of

a conditional cannabis cultivator license to report any

changes in the information provided in the application for

licensure to the board. The board shall specify by regulation

the time by which a change in information must be reported

and the specific information which must be reported to the

board under this paragraph.

(3) Upon receipt and review of an applicant's background

investigation from the Pennsylvania State Police or the

Federal Bureau of Investigation, provide written or

electronic notification to the applicant of the applicant's

qualification or disqualification for a cannabis cultivator

license. If the applicant is disqualified because of a

disqualifying conviction under section 601(e), the conviction

that constitutes the basis for the disqualification shall be

identified in the written or electronic notification.

(4) Require cannabis cultivated, grown, processed or

produced by the cannabis cultivator to be tested in

accordance with the requirements of section 702.

(5) Require cannabis cultivator licensees to submit an

annual report describing the licensee's electrical and water

20210HB2050PN2333 - 210 -

usage at the licensee's cannabis establishment during the

preceding calendar year.

(6) Require a cannabis cultivator licensee to meet all

public health and safety standards, industry best practices

and all applicable regulations established by the board

related to the cultivation of cannabis, including the

propagation or cloning of immature cannabis plants and seeds.

The board may regulate the number of immature cannabis plants

which may be possessed by a licensed cannabis cultivator, the

size of a licensee's grow canopy used to grow immature

cannabis plants and the weight or size of shipments of

immature cannabis plants made or proposed to be made by a

cannabis cultivator licensee.

(7) Adopt a licensing tier system for the issuance of

cannabis cultivator licenses to include, among other criteria

which may be established by regulations of the board, the

following types of indoor and outdoor cannabis cultivator

licenses:

(i) Tier 1 for up to 5,000 square feet.

(ii) Tier 2: 5,001 to 10,000 square feet.

(iii) Tier 3: 10,001 to 20,000 square feet.

(iv) Tier 4: 20,001 to 30,000 square feet.

(v) Tier 5: 30,001 to 40,000 square feet.

(vi) Tier 6: 40,001 to 50,000 square feet.

(vii) Tier 7: 50,001 to 60,000 square feet.

(viii) Tier 8: 60,001 to 70,000 square feet.

(ix) Tier 9: 70,001 to 80,000 square feet.

(x) Tier 10: 80,001 to 90,000 square feet.

(xi) Tier 1: 90,001 to 125,000 square feet.

(e) Issuance of license.--The following apply:

20210HB2050PN2333 - 211 -

(1) The board shall approve and issue a cannabis

cultivator license or conditional license upon verification

of all of the information contained in the application and a

determination that the requirements for licensure have been

satisfied, including the payment of the nonrefundable

application fee and the cannabis cultivator license fee under

section 313.

(2) An application for a cannabis cultivator license

shall be approved or denied by the board under section 502 as

soon as administratively possible after receipt of a

completed application.

Section 605. Cannabis cultivator grow canopy.

(a) Regulation of grow canopies.--Subject to subsection (b),

the board shall adopt regulations to govern the size of a mature

cannabis plant grow canopy at the cannabis establishment of a

cannabis cultivator licensee.

(b) Limitation on size.--The following apply:

(1) In adopting regulations under subsection (a), the

board may consider whether:

(i) To limit the size of a mature cannabis plant

grow canopy for a cannabis establishment where cannabis

is cultivated or grown outdoors and a cannabis

establishment where cannabis is grown indoors in a manner

calculated to result in cannabis establishments that

produce the same amount of harvested cannabis leaves and

harvested cannabis flowers, regardless of whether the

cannabis is grown outdoors or indoors.

(ii) The tier licensing system adopted under section

604(d)(7) under which the permitted size of a cannabis

cultivator licensee's mature cannabis plant grow canopy

20210HB2050PN2333 - 212 -

may be increased upon request of a cannabis cultivator

licensee, except that the permitted size of a cannabis

cultivator licensee's mature cannabis plant grow canopy

may not increase following any year during which the

board disciplined the cannabis cultivator licensee for

violating this act or a rule or regulation adopted and

promulgated by the board under this act.

(iii) Notwithstanding subparagraphs (i) and (ii),

the cannabis plant grow canopy for an additional cannabis

cultivator license issued under section 616 shall be

limited to 20,000 square feet per additional license

issued, unless a higher square footage is authorized by

the board.

(2) In considering limitations on the size of a cannabis

plant grow canopy, the board shall consider the market demand

for cannabis and cannabis products in this Commonwealth, the

number of applicants for cannabis cultivator licenses, the

number of cannabis cultivator licenses that have been issued

and to whom and whether the availability of cannabis and

cannabis products in this Commonwealth is commensurate with

market demand.

(3) The tier licensing system adopted by the board under

paragraph (1)(ii) shall further provide the minimum and

maximum square footage of bench space allocated or which may

be allocated for the flowering stage of cannabis cultivation

rather than the square footage of the room or other area,

including indoor or outdoor areas, designated by the cannabis

cultivator licensee for the cultivation of cannabis.

604(d)(7), a cannabis cultivator may submit an application, in a

20210HB2050PN2333 - 213 -

form, manner and at such time as determined by the board, to

expand or reduce the licensing tier type under which it is

classified. If a cannabis cultivator applies to the board to

expand cannabis cultivation, the cannabis cultivator shall

demonstrate that it has sold 85% of the cannabis cultivated by

it consistently at its licensing tier over the six months

preceding the application for expanded cultivation for an indoor

cannabis cultivator, or during the harvest season prior to the

application for expanded cultivation for an outdoor cannabis

cultivator.

(d) Licensing tier reduction.--In its review of an

application to renew a cannabis cultivator license, the board

shall analyze the cultivation records of the cannabis cultivator

for the six months prior to the application for renewal of an

indoor cannabis cultivator or during the harvest season prior to

the application for renewal for an outdoor cannabis cultivator.

If the board's analysis finds that the cannabis cultivator sold

less than 70% of the cannabis it cultivated during the six-month

period preceding the application for renewal for an indoor

cannabis cultivator license or during the harvest season prior

to the application for renewal for an outdoor cannabis

cultivator license, it may reduce the cannabis licensee's

maximum grow canopy to a lower licensing tier.

(e) Tier factors.--In determining whether to allow expansion

or reduction of a cannabis cultivator's licensing tier, the

board may consider the following:

(1) The cannabis cultivator's cultivation and production

record.

(2) Whether the cannabis cultivator encountered a

catastrophic event during the term of the license, including

20210HB2050PN2333 - 214 -

weather or natural disaster, public health or other

emergency.

(3) Sales and tax payment history.

(4) Existing inventory and inventory history.

(5) Sales contracts.

(6) Other factors relevant to ensuring responsible

cannabis cultivation and inventory management.

(f) Applicability.--This section shall apply to the

cultivation of cannabis by a grower/processor who holds an

expedited approval cannabis entity license under section 503 or

504 but shall not apply to the cultivation of cannabis if the

cannabis cultivator licensee's cannabis establishment or

grower/processor's facility is used only to clone or propagate

immature cannabis plants.

Section 606. Cannabis processor license.

(a) Requirements.--

(1) The following apply:

(i) A cannabis processor license authorizes the

licensee to acquire cannabis from a cannabis cultivator

and process and sell cannabis to a cannabis retailer,

cannabis microbusiness or another cannabis processor.

(ii) No cannabis processor shall sell cannabis or

cannabis products to cannabis consumers or any other

individual, including patients and caregivers under the

Medical Marijuana Act.

(iii) A cannabis processor licensee may share the

premises of the cannabis processor licensee's cannabis

establishment with a cannabis cultivator licensee,

provided that each such licensee stores currency and

cannabis or cannabis products in a separate secured vault

20210HB2050PN2333 - 215 -

to which the other licensee does not have access or all

licensees sharing a vault share more than 50% of the same

ownership.

(iv) No cannabis processor licensee may hold more

than three cannabis processor licenses.

(2) For purposes of this section, the term "process"

shall include, but not be limited to, blending, extracting,

infusing, packaging, labeling, branding and otherwise making

or preparing cannabis products for retail sale to cannabis

consumers. Processing shall not include the cultivation of

cannabis under this act and regulations of the board.

(b) Application.--The following apply:

(1) A person shall apply to the board for a cannabis

processor license in the form and manner and according to the

schedule established by the board for applying for a cannabis

entity license under section 502. An application for a

cannabis processor license shall be accompanied by a

nonrefundable application fee of $5,000 and the nonrefundable

license fee as provided under section 313.

(2) An applicant for a cannabis processor license shall:

(i) Have at least one significantly involved person

that has resided in this Commonwealth for at least two

years as of the date of the application.

(ii) Provide proof, in a manner determined by the

board, that the person under subparagraph (i) or any

other person that will have a controlling interest and

decision-making authority over the operation of the

applicant's cannabis establishment has been a resident of

this Commonwealth for two or more years and is 21 years

of age or older.

20210HB2050PN2333 - 216 -

(3) An applicant for a cannabis processor license shall

provide for the conduct of a background investigation for any

owner, except for an owner who holds less than a 5%

controlling interest in the applicant for a cannabis

processor license or who is a member of a group that holds

less than a 20% controlling interest in the applicant and no

member of that group holds more than a 5% controlling

interest in the total group investment, and who lacks

decision-making authority to make controlling decisions

regarding the proposed cannabis processor's operations.

(4) An applicant for a cannabis processor license shall

provide for the conduct of a background investigation for a

director, officer or essential employee or other employee as

required by the board.

(5) An applicant for a cannabis processor license shall

satisfy all other requirements for licensure as a cannabis

entity under this act and regulations of the board.

(1) The board shall issue up to 150 cannabis processor

licenses, of which a sufficient percentage shall be

conditional licenses issued under section 602, and at least

25% of the total number of cannabis processor licenses and

conditional licenses shall be designated for and only issued

to cannabis microbusinesses under section 603.

(2) If qualified applicants exist, the board may issue a

sufficient number of additional licenses to meet market

demand under section 616. Nothing in this section shall be

construed to preclude the board from making a request for

additional applicants for a cannabis processor license as the

board deems necessary to meet market demand.

20210HB2050PN2333 - 217 -

(d) Duties of board.--In addition to the board's regulatory

authority under other provisions of this act, the board, by

regulation, shall:

(1) Require a cannabis processor licensee and a holder

of a conditional cannabis processor license to prominently

and conspicuously post the license or conditional license

inside the cannabis processor licensee's cannabis

establishment.

(2) Require a cannabis processor licensee and a holder

of a conditional cannabis processor license to report any

changes in the information provided in the application for

licensure to the board. The board shall specify in

regulations the time by which a change in information must be

reported and the specific information which must be reported

to the board under this paragraph.

(3) Upon receipt and review of an applicant's background

investigation, provide written or electronic notification to

the applicant of the applicant's qualification or

disqualification for licensure as a cannabis processor

licensee. If the applicant is disqualified because of a

disqualifying conviction under section 601(e), the conviction

that constitutes the basis for the disqualification shall be

identified in the written or electronic notification.

(4) Require cannabis and cannabis products processed or

produced by the cannabis processor to be tested in accordance

with the requirements of section 702.

(5) Require a cannabis processor licensee to meet all

public health and safety standards, industry best practices

and all applicable regulations established by the board

related to the processing of cannabis and cannabis products.

20210HB2050PN2333 - 218 -

The board may collaborate with the Department of Agriculture

and the Department of Health in developing health and safety

standards to govern the processing of cannabis and cannabis

products. In developing health and safety standards, the

board, in consultation with the Department of Agriculture and

the Department of Health, may review and evaluate for use in

this Commonwealth the health and safety standards adopted by

other states or jurisdictions to govern the processing of

cannabis and cannabis products for personal or adult use.

(e) Issuance of license.--The following apply:

(1) Except as provided in paragraph (2), after the

receipt and review of a completed application for a cannabis

processor license or conditional cannabis processor license,

the board shall approve and issue the license or conditional

license to the applicant as soon as administratively possible

under section 502, provided that the board has verified all

the information contained in the applicant's application,

including payment of the application fee and the

nonrefundable license fee under section 313, and determined

that the requirements for licensure have been satisfied.

(2) The board, at the board's discretion, may extend the

review of an application if the board determines that

additional information is needed to facilitate the review of

an applicant's application. Nothing in this paragraph shall

be construed to prevent or delay the board's approval and

issuance of a license or conditional license to an applicant

who submitted a completed application for a cannabis

processor license.

Section 607. Cannabis retailer license.

(a) General rule.--A cannabis retailer license authorizes

20210HB2050PN2333 - 219 -

the acquisition, possession, sale, offering for sale and

delivery of cannabis and cannabis products from the cannabis

establishment of the licensed cannabis retailer to cannabis

consumers.

(1) The following apply:

(i) A person or entity may not hold a legal,

equitable, ownership or beneficial or financial interest,

directly or indirectly, in more than three cannabis

retailer licenses under this section.

(ii) Except for an expedited approval cannabis

entity license issued under section 503 or 504, no person

or entity shall hold a legal, equitable, ownership or

beneficial or financial interest, directly or indirectly,

in a cannabis retailer license if the holding would

result in the person or entity owning or participating in

the management of more than three expedited approval

cannabis entity licenses, three cannabis retailer

licenses or three conditional cannabis retailer licenses

if the person or entity is:

(A) employed by, an agent of, or participates in

the management of a cannabis retailer licensee's

cannabis establishment or dispensary;

(B) a principal or officer of a cannabis

retailer licensee or dispensary; or

affiliated with a principal or officer of a cannabis

retailer licensee or dispensary permittee.

(iii) As used in this paragraph, the term

"participating in the management" means, without

limitation, the authority to make controlling decisions

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regarding staffing, hiring, pricing, purchasing,

marketing, cannabis establishment design and website

design.

(2) Except as provided in sections 503, 504 and 603, no

person holding a cannabis retailer license shall hold a

cannabis cultivator license, cannabis processor license or

cannabis transporter license or be a medical marijuana

organization under the Medical Marijuana Act.

(3) A cannabis retailer license may not be issued by the

board unless, within 30 days of initial approval of the

application, the applicant is the owner of or can demonstrate

possession of the premises or establishment where cannabis

and cannabis products will be sold or offered for sale

through a lease, management agreement or other agreement

giving the applicant control over the premises or

establishment, in writing, for a term not less than the

period of time for which the cannabis retailer license shall

be issued.

(4) With the exception of persons holding a cannabis

retailer license under sections 503, 504 and 603, no person

shall be licensed to sell or offer for sale cannabis or

cannabis products unless the cannabis retailer licensee's

cannabis establishment is located in a building or store with

a street level entrance on a public thoroughfare that will be

occupied and operated for the conduct of business.

(5) An application for a cannabis retailer license may

not be approved by the board if the proposed location of the

applicant's cannabis establishment identified in the

application would be within 1,000 feet of a school, school

grounds, bus stop, park, playground, recreational center,

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library, arcade facility or any other place where children

congregate or a church or other building used as a place of

worship. The board, at its discretion, may waive the distance

requirement specified in this paragraph upon consideration

of the following:

(i) the population density of the region where the

proposed cannabis establishment is proposed to be

located;

(ii) community support for the proposed cannabis

establishment; or

(iii) any other factors or information the board

deems necessary and appropriate to help the board

determine whether waiving the location requirement would

be in the public interest.

(b) Application.--The following apply:

(1) A person may apply to the board for a cannabis

retailer license in the form and manner and in accordance

with the schedule established by the board for applying for a

cannabis entity license under section 502. An application for

a cannabis retailer license shall be accompanied by the

license fee established under section 313 and a nonrefundable

application fee of $2,500.

(2) A person applying for a cannabis retailer license

shall:

(i) Have at least one significantly involved person

that has resided in this Commonwealth for at least two

years as of the date of the application.

(ii) Provide proof, in a manner determined by the

board, that the applicant and any other person with a

controlling interest and who also has decision-making

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authority over the applicant has been a resident of this

Commonwealth for two or more years and is 21 years of age

or older.

(iii) Provide for the conduct of a background

investigation of the applicant and an owner, except for

an owner who holds less than a 5% controlling interest in

the applicant or who is a member of a group that holds

less than a 20% controlling interest in the applicant,

and no member of that group holds more than a 5%

controlling interest in the total group investment, and

who lacks decision-making authority to make controlling

decisions regarding the proposed cannabis retailer's

operations.

(iv) Provide for the conduct of a background

investigation for a principal, director, officer,

essential employee or other employee or person as may be

required by regulation of the board.

(5) Satisfy all other requirements for licensure as

provided under this act and regulations of the board.

licenses authorized to be issued by the board under section

501(a)(15), a sufficient percentage shall be issued as

conditional cannabis retailer licenses, and at least 25% of the

total number of cannabis retailer licenses and conditional

cannabis retailer licenses shall be issued to cannabis

microbusinesses. If qualified applicants exist, the board may

issue a sufficient number of additional cannabis retailer

licenses to meet market demand as provided under section 616.

Nothing in this subsection shall be construed to preclude the

board from making a request for additional applicants for a

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cannabis retailer license as the board deems necessary to meet

market demand.

(d) Duties of board.--The board, by regulation, shall:

(1) Require a holder of a cannabis retailer license or

conditional cannabis retailer license to prominently and

conspicuously post the license or conditional license inside

the premises of the cannabis establishment at all times.

(2) Require cannabis retailer licensees and holders of a

conditional cannabis retailer license to report any changes

in the information provided in the application for licensure

to the board. The board shall specify in regulations the

manner and time by which a change in information must be

reported and the specific information which must be reported

to the board under this paragraph.

(3) Upon receipt and review of an applicant's background

investigation, provide written or electronic notification to

the applicant of the applicant's qualification or

disqualification for licensure as a cannabis retailer

licensee. If the applicant is disqualified because of a

disqualifying conviction under section 601(e), the conviction

that constitutes the basis for the disqualification shall be

identified in the written notification.

(4) Require cannabis retailer licensees to meet all

public health and safety standards, industry best practices

and all applicable regulations established by the board

related to the sale and offering for sale of cannabis and

cannabis products.

(e) Issuance of license.--The following apply:

(1) Except as provided in paragraph (2), no later than

60 days after the receipt of a completed application for a

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cannabis retailer license, the board may approve and issue a

cannabis retailer license or conditional cannabis retailer

license to the applicant, provided that the board has

verified all the information contained in the applicant's

application for a cannabis retailer license and determined

that the requirements for licensure have been satisfied,

including the payment of a nonrefundable application fee and

the cannabis entity license fee established in section 313.

(2) The board may extend the 60-day time frame under

paragraph (1) if the board determines that additional

information is needed to facilitate the review of an

applicant's application for a cannabis retailer license.

Nothing in this paragraph shall be construed to prevent or

delay the board's approval and issuance of a cannabis

retailer license or conditional cannabis retailer license to

an applicant who submitted a completed application.

Section 608. Inventory verification system; cannabis retailer

licensee.

(a) General rule.--Each cannabis retailer licensee shall

designate an essential employee or other employee to have

primary oversight of the cannabis retailer licensee's inventory

verification system and point-of-sale system. The inventory

point-of-sale system shall be:

(1) A real-time, Internet-based system accessible by the

board and the department at all times.

(2) Configured to verify, track and document inventory

of cannabis and cannabis products as provided under

subsection (b).

(b) Establishment of inventory verification system

account.--A cannabis retailer shall establish an account with

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the Commonwealth's verification system that documents:

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

day's beginning cannabis and cannabis product inventory,

acquisitions, sales, disposal and ending inventory.

(2) The cannabis and cannabis products acquired from a

cannabis entity licensee, including:

(i) A description of the cannabis or cannabis

product, including the quantity, strain, variety, and

batch number of each product received.

(ii) The name and license number of the cannabis

entity licensee from whom the cannabis or cannabis

product was purchased or otherwise acquired.

(iii) The name and license number of the cannabis

entity licensee that delivered the cannabis or cannabis

products.

(iv) The name and license number of the cannabis

retailer licensee receiving the cannabis or cannabis

product.

(v) The date the cannabis or cannabis product was

acquired and delivered to the cannabis retailer licensee.

(3) The disposal of cannabis or a cannabis product,

including:

(i) A description of the cannabis or cannabis

product, including the quantity, strain, variety and

batch number.

(ii) The reason the cannabis or cannabis product is

being disposed of.

(iii) The method of disposal or recycling of the

cannabis or cannabis product.

(iv) The date and time of disposal or recycling.

20210HB2050PN2333 - 226 -

cannabis or a cannabis product, the cannabis retailer licensee

or the designated essential employee or other employee of the

cannabis retailer licensee shall:

(1) Confirm that the cannabis product's name, strain

name, weight, variety, batch or lot number and identification

number on the invoice or manifest matches the information on

the cannabis product label or package.

(2) Confirm that the name and weight listed on the

product label or package matches the name and weight listed

in the Commonwealth's verification system.

(3) Conduct daily inventory reconciliation documenting

and balancing cannabis and cannabis product inventories by

confirming that the Commonwealth's verification system

matches the cannabis retailer licensee's point-of-sale system

and the amount of physical product at the cannabis retailer

licensee's cannabis establishment.

(d) Inventory adjustments.--The following apply:

(1) Prior to making any adjustments to the cannabis or

cannabis product inventory, a cannabis retailer licensee must

provide the board with a detailed summary of the reason for

the inventory adjustment and receive board approval before

completing the inventory adjustment. Inventory adjustment

documentation shall be kept at the cannabis retailer

licensee's cannabis establishment for three years from the

date the adjustment was made.

(2) If the cannabis retailer licensee identifies a

discrepancy in the amount of cannabis or cannabis products

after the daily inventory reconciliation due to a mistake,

the cannabis retailer licensee shall determine how the

20210HB2050PN2333 - 227 -

mistake or discrepancy occurred and immediately initiate and

document corrective action. If the cannabis retailer licensee

cannot identify the reason for the mistake or discrepancy

within two calendar days after the first discovery, the

cannabis retailer licensee shall notify the board immediately

in writing of the mistake or discrepancy and the corrective

action initiated to date. The cannabis retailer licensee

shall work diligently to determine the reason for the mistake

or discrepancy.

(3) If the cannabis retailer licensee identifies a

discrepancy in the amount of cannabis or cannabis products

after the daily inventory reconciliation or through other

means due to theft or other criminal activity or suspected

theft or criminal activity, the cannabis retailer licensee

shall immediately initiate efforts to determine how the

discrepancy occurred and take and document corrective action.

Within 24 hours after the first discovery of a discrepancy

due to theft or other criminal activity or suspected theft or

criminal activity, the cannabis retailer licensee shall

immediately inform the board and the Pennsylvania State

Police in writing, electronically or by telephone.

(e) Report.--The following apply:

(1) Each cannabis retailer licensee shall file an annual

compilation report with the board on or before March 31 of

each calendar year. The report shall include, but not be

limited to:

(i) A financial statement, which must include an

income statement, balance sheet, profit and loss

statement, statement of cash flow, wholesale cost and

sales and any other documents prescribed by regulation of

20210HB2050PN2333 - 228 -

the board.

(ii) A letter authored by a certified public

accountant licensed in this Commonwealth under the act of

May 26, 1947 (P.L.318, No.140), known as the CPA Law,

affirming that the certified public accountant has

reviewed the financial statements and found the

statements accurate based on the information provided to

the certified public accountant by the cannabis retailer

licensee.

(iii) Any other documents, records or information

the board deems necessary to administer this paragraph

and regulations promulgated under this act.

(2) The cannabis retailer licensee's financial statement

and accompanying documents shall not be subject to audit

unless specifically prescribed by regulation of the board.

(f) Additional requirements.--A cannabis retailer licensee

shall:

(1) Maintain the documents, financial statements and

other information required under this section in a secure,

locked location at the premises of the cannabis retailer

licensee's cannabis establishment.

(2) Provide documents, financial statements or other

information to the board and department upon request.

(3) For each bank account maintained at a bank, credit

union or other financial institution, retain, for a five-year

period, bank statements or other records of each deposit or

withdrawal from the account or accounts.

(g) Return policy.--The following apply:

(1) A policy adopted by a cannabis retailer licensee to

govern the return of cannabis or cannabis products by

20210HB2050PN2333 - 229 -

cannabis consumers to the cannabis retailer licensee shall be

reviewed and approved by the board. The board may, by

regulation, prohibit cannabis return polices or prescribe

uniform parameters that must be adhered to by all cannabis

retailer licensees in this Commonwealth.

(2) Cannabis or a cannabis product accepted for return

by a cannabis retailer licensee shall not be sold or offered

for sale and shall be disposed of using procedures

established by the board by regulation.

(3) Notwithstanding paragraph (2), the board may,

through regulation, provide for the donation of cannabis

accepted for return by a cannabis retailer licensee under

this subsection to an academic clinical research center for

research purposes. The term "academic clinical research

center" shall have the meaning given in section 2001 of the

Medical Marijuana Act.

Section 609. Storage requirements.

(a) On-premises storage.--All cannabis and cannabis products

acquired by a cannabis retailer licensee as provided under this

act must be stored on the premises of the cannabis retailer

licensee's cannabis establishment at all times, be secured in a

restricted access area and be tracked and monitored in

accordance with inventory tracking and monitoring rules. A

cannabis retailer licensee's cannabis establishment shall:

(1) Be of suitable size and construction to facilitate

cleaning, maintenance and effective operations.

(2) Have adequate lighting, ventilation, temperature and

humidity control systems and reliable equipment to maintain

efficient operations of the systems.

(3) Maintain a sufficient supply of cannabis and

20210HB2050PN2333 - 230 -

cannabis product storage packages or containers, which have

not been tampered with, damaged or opened prior to use.

Storage containers shall be labeled with the date opened and

quarantined from other cannabis and cannabis products in a

vault until the containers are disposed of.

(4) Not store at the cannabis retailer licensee's

cannabis establishment for more than seven calendar days

cannabis and cannabis products that have been tampered with,

expired, contaminated or damaged.

(5) Keep samples of cannabis or a cannabis product in

sealed containers in a restricted access area.

(6) Maintain the storage areas of the cannabis retailer

licensee's cannabis establishment in accordance with the

security requirements of this act and regulations promulgated

by the board under this act.

(7) Store cannabis and cannabis products at appropriate

temperatures and under appropriate conditions to help ensure

that packaging, strength, quality and purity are not

adversely affected.

Section 610. Cannabis transporter license.

(a) Eligibility.--

(1) The following apply:

(i) A cannabis transporter license authorizes a

person to transport cannabis and cannabis products in

this Commonwealth on behalf of a cannabis entity

licensee.

(ii) Except as provided in this act, a person

applying for or holding a cannabis transporter license

may not hold a cannabis retailer license or have a direct

or indirect interest, including by stock ownership,

20210HB2050PN2333 - 231 -

interlocking directors, mortgage or lien, personal or

real property or other means, in a cannabis retailer

license or in a medical marijuana organization.

(iii) A person may not have a direct or indirect

financial or controlling interest in more than three

cannabis transporter licenses issued under this act.

(2) (Reserved).

(b) Application.--The following apply:

(1) A person eligible to apply for a cannabis

transporter license under subsection (a) shall apply to the

board in the form and manner and according to the schedule

established by the board under section 502. An application

for a cannabis transporter license shall be accompanied by a

nonrefundable application fee of $2,500 and the license fee

specified in section 313.

(2) A person applying for a cannabis transporter license

shall:

(i) Have at least one significantly involved person

that has resided in this Commonwealth for at least two

consecutive years as of the date of the application.

(ii) Provide proof, in a manner determined by the

board, that the person under subparagraph (i) and any

other person with a controlling interest who also has

decision-making authority over the operation or function

of the cannabis transporter licensee's cannabis

establishment has been a resident of this Commonwealth

for two or more years and is 21 years of age or older.

(3) A person applying for a cannabis transporter license

shall provide for the conduct of a criminal history

background investigation of an owner, except for an owner who

20210HB2050PN2333 - 232 -

holds less than a 5% controlling interest in the applicant

for a cannabis cultivator license or who is a member of a

group that holds less than a 20% controlling interest in the

cannabis transporter license and no member of that group

holds more than a 5% controlling interest in the total group

investment, and who lacks the decision-making authority to

make decisions regarding the proposed cannabis transporter's

operations.

(4) A person applying for a cannabis transporter license

shall provide for the conduct of a background investigation

of a principal, director, officer, essential employee, other

employee or other person employed by or under contract with

the cannabis transporter licensee as required by regulation

of the board.

(5) A person applying for a cannabis transporter license

shall satisfy all other requirements for licensure under this

act and regulations of the board.

cannabis transporter licenses, of which a sufficient percentage

shall be issued as conditional cannabis transporter licenses

issued under section 602 and at least 25% of the total number of

cannabis transporter licenses and conditional cannabis

transporter licenses shall be designated for and only issued to

cannabis microbusinesses under section 603. If qualified

applicants exist, the board may issue a sufficient number of

additional licenses to meet market demand. Nothing in this

section shall be construed to preclude the board from making a

request for additional applicants for a cannabis transporter

license as the board deems necessary to meet market demand under

section 616.

20210HB2050PN2333 - 233 -

(d) Duties of board.--In addition to the board's regulatory

authority under other provisions of this act, the board, by

regulation, shall:

(1) Require cannabis transporter licensees to

permanently post the license or conditional license in a

conspicuous location inside the cannabis establishment.

(2) Require cannabis transporter licensees or holders of

a conditional cannabis transporter license to report any

changes in the information provided in the application for

licensure to the board. The board shall specify by regulation

the manner and time by which a change in information must be

reported and the specific information which must be reported

to the board under this paragraph.

(3) Upon receipt and review of an applicant's background

investigation from the Pennsylvania State Police, provide

written or electronic notification to the applicant of the

applicant's qualification or disqualification for a cannabis

transporter license. If the applicant is disqualified because

of a disqualifying conviction under section 601(e), the

conviction that constitutes the basis for the

disqualification shall be identified in the written or

electronic notification.

(4) Require a cannabis transporter to meet all public

health and safety standards, industry best practices and all

applicable regulations established by the board related to

the transportation of cannabis and cannabis products.

(e) Issuance of license.--The following apply:

(1) The board shall approve and issue a cannabis

transporter license or conditional cannabis transporter

license upon verification of all of the information contained

20210HB2050PN2333 - 234 -

in the applicant's application and determination that the

requirements for licensure have been satisfied, including the

payment of the cannabis transporter license fee under section

313.

(2) An application for a cannabis transporter license

shall be approved, conditioned or denied by the board within

60 days after receipt of a completed application.

Section 611. Cannabis handler certificate.

(a) Certification required.--The following apply:

(1) An individual seeking to perform work for or on

behalf of a person that holds a valid cannabis entity license

shall file an application with the board for a cannabis

handler certificate, if the applicant's employment by the

cannabis entity requires the applicant to participate in the

following:

(i) the cultivating, processing, possession,

securing or selling of cannabis or cannabis products at a

cannabis entity's cannabis establishment for which the

certificate has been issued;

(ii) the recording of the possession, securing or

sale of cannabis or cannabis products at a cannabis

entity's cannabis establishment for which the certificate

has been issued; or

(iii) the delivery of cannabis or cannabis products

for a cannabis entity, if authorized by regulation of the

board.

(2) Each cannabis entity shall verify that an individual

seeking employment or who is employed as a cannabis handler

has a valid cannabis handler certificate issued by the board

under this section, which authorizes the individual to

20210HB2050PN2333 - 235 -

perform the activities described under paragraph (1) at the

cannabis entity licensee's cannabis establishment for which

the cannabis handler certificate will be or has been issued.

(b) Criminal background investigation.--The following apply:

(1) An applicant for a cannabis handler certificate

shall consent to and undergo a background investigation. The

board is authorized to exchange fingerprint data with and

receive the results of a background investigation from the

Pennsylvania State Police. The Pennsylvania State Police

shall forward the results of the background investigation to

the board in a timely manner. The following apply:

(i) No background investigation shall be performed

under this subsection unless the applicant provides

written consent to conduct the background investigation.

(ii) If an applicant refuses to consent to or

cooperate in the conduct of a background investigation,

the board shall not consider the applicant's application

for a cannabis handler certificate.

(iii) An applicant shall bear the cost of a

background investigation, including the costs of

fingerprinting under paragraph (2) and administering and

processing the background investigation.

(2) An applicant for a cannabis handler certificate

shall submit to being fingerprinted by the Pennsylvania State

Police.

(3) Upon receipt and review of the background

investigation report, the board shall provide the applicant

who is the subject of the background investigation with

written or electronic notification of the applicant's

qualification or disqualification for a cannabis handler

20210HB2050PN2333 - 236 -

certificate. If the board determines that an applicant does

not qualify for certification because of a disqualifying

conviction under section 601(e), the conviction that

constitutes the basis for the disqualification shall be

identified in the written or electronic notice.

(1) The board shall promulgate and adopt rules and

regulation establishing the qualifications for cannabis

handler certification. The regulations shall include, but not

be limited to, the following:

(i) The qualifications for performing the work

described in subsection (a)(1).

(ii) The procedures for applying for and renewing a

cannabis handler certificate.

(iii) That the applicant has completed or will

complete a responsible cannabis training course required

by the board under section 612, if the applicant is

required to complete the training course by the board.

(iv) That the applicant has submitted to a

background investigation.

(v) Any other requirements that the board determines

to be necessary and appropriate to govern the activities

of cannabis handlers and to ensure the effective

administration and enforcement of this act.

(2) The board may issue a cannabis handler certificate

to an applicant if the board determines that the applicant

meets the requirements of this section and any other

qualification established by the board by regulation.

(d) Suspension or revocation of license.--The board may

suspend, revoke or refuse to issue or renew a cannabis handler

20210HB2050PN2333 - 237 -

certificate if the applicant or holder of a cannabis handler

certificate:

(1) Violates any provision of this act or regulation

promulgated by the board.

(2) Makes a false statement in the application for a

cannabis handler certificate or to the board.

(3) Refuses to cooperate in an investigation conducted

by the board.

(4) Is convicted of a crime graded a felony in this

Commonwealth or another state or jurisdiction, including any

foreign or domestic jurisdiction, except that the board may

not consider a conviction for the possession, transportation

or delivery of marijuana if the date of the conviction is

three or more years before the date of the application for

the cannabis handler certificate or if the date of any

misdemeanor conviction is more than five years before the

date of the application.

(e) Certificate fee.--Each application for a cannabis

handler certificate shall be accompanied by a $500 certificate

fee. An application submitted to renew a cannabis handler

certificate shall be accompanied by a $500 renewal fee.

Section 612. Cannabis responsible training required.

(a) Training required.--Within 45 days of the commencement

of cannabis operations by a cannabis entity licensee, each

manager, supervisor, employee, agent or other person employed by

a cannabis entity licensee involved in the handling or sale of

cannabis or cannabis products, as determined by regulation of

the board, shall attend and complete a responsible cannabis

training course.

(b) Course curriculum.--The responsible cannabis training

20210HB2050PN2333 - 238 -

course shall include at least four hours of instruction time as

approved by the board. The course curriculum shall be designed

to provide cannabis entity-specific instruction applicable to

the type of cannabis entity licensee. The instruction shall

include the following:

(1) Health and safety issues related to the use of

cannabis and cannabis products, including instruction on the

physical and physiological effects of cannabis.

(2) The responsible use of cannabis and cannabis

products.

(3) Recognition of signs of impairment and appropriate

responses to overconsumption.

(4) Laws and regulations on driving under the influence

or drugged driving.

(5) Sales to minors.

(6) Quantity limitations on sales to cannabis consumers.

(7) Acceptable forms of identification, including

instructions relating to:

(i) Checking and verifying forms of identification

and identifying fraudulent or counterfeit identification

documents.

(ii) Common mistakes made in verifying

identification.

(8) Safe storage of cannabis and cannabis products.

(9) Compliance with all inventory tracking system

regulations.

(10) Waste handling, management and disposal.

(11) Health, sanitation and safety standards.

(12) Maintenance of records.

(13) Security and surveillance requirements.

20210HB2050PN2333 - 239 -

(14) Required inspections, including random inspections.

(15) Privacy and confidentiality requirements relating

to cannabis consumers.

(16) Packaging and labeling requirement for sales to

cannabis consumers.

(17) Cultivation methods and the safe use and storage of

chemicals, including pesticides, herbicides, compounds,

fertilizers and other products.

(18) The use, maintenance and storage of equipment and

devices used in the cultivation, processing and sale or

offering for sale of cannabis and cannabis products.

(19) Any other subjects as prescribed by regulation of

the board.

responsible cannabis training program, the board or the

provider, as the case may be, shall deliver a certificate

signifying an individual's successful completion of the course,

either through United States Postal Service mail or

electronically by electronic mail, to the individual and the

cannabis entity licensee employing the individual. The cannabis

entity licensee shall retain a copy of the course completion

certificate for the duration of the individual's employment with

the cannabis entity licensee.

(d) Failure to comply.--A cannabis entity licensee whose

essential employees or other employees or agents fail to comply

with this section may be subject to administrative sanction by

the board under section 911.

(e) Additional requirements.--The following apply:

(1) Except as provided in paragraph (2), the board may

not require an individual to successfully complete the

20210HB2050PN2333 - 240 -

training course more than once, except that the board may

adopt regulations to require continuing education on a

prescribed schedule.

(2) If an individual's cannabis handler certificate is

suspended by the board, the board may require the individual

to successfully take or retake the training course as a

condition of lifting the suspension. An individual under this

paragraph must successfully complete the training course

prior to applying for a new cannabis handler certification.

(3) An essential employee or other employee or agent of

a cannabis retailer licensee whose duties do not involve the

activities under subsection (a)(1) as determined by the board

shall not be required to complete the responsible cannabis

training program.

(f) Course providers.--The following apply:

(1) Nothing in this section shall preclude the board

from contracting with an entity or organization to teach the

responsible cannabis training course.

(2) The board may, in the board's discretion, contract

with a provider to provide cannabis entity-specific training

related to the cultivation, processing, distribution,

transporting, delivery or sale of cannabis and cannabis

products.

(3) The board or provider selected by the board to

provide a responsible cannabis training course under this

subsection may establish and charge a reasonable fee for the

course.

(4) The board may, through regulations, provide for the

acceptance and use of a responsible cannabis training course

provided by a cannabis entity licensee if the course meets

20210HB2050PN2333 - 241 -

the requirements of this subsection and regulations of the

board.

Section 613. Provisions governing cultivation and processing of

cannabis and cannabis products.

The following apply:

(1) No cannabis cultivator licensee or cannabis

processor licensee shall:

(i) Sell or agree to sell or deliver in this

Commonwealth any cannabis or cannabis products, except in

the original, sealed container package containing

quantities and in compliance with the size standards and

labeling requirements established by regulation of the

board under this act.

(ii) Furnish or cause to be furnished to a cannabis

retailer licensee an exterior or interior sign, poster or

other advertisement, whether printed, painted, electronic

or otherwise, except as authorized by the board. The

board may adopt regulations deemed necessary to carry out

the purposes and intent of this paragraph.

(iii) Offer an incentive, payment or other benefit

to a cannabis entity licensee in return for carrying the

cannabis cultivator licensee's or cannabis processor

licensee's cannabis or cannabis products or providing

preferential shelf placement for cannabis or cannabis

products. This subparagraph shall apply to a cannabis

microbusiness licensee.

(2) The following apply:

(i) Cannabis cultivator licensees shall comply with

agricultural plant cultivation methods prescribed by

regulation by the board, in consultation the Department

20210HB2050PN2333 - 242 -

of Agriculture.

(ii) In adopting regulations, the board and the

Department of Agriculture shall be guided by sustainable

farming principles and practices, including, but not

limited to:

(A) organic, hydroponic, aeroponic and other

cannabis cultivation methods, including outdoor

cultivation;

(B) use of fertilizers, pesticides and

herbicides; and

models.

(iii) The cannabis cultivation models developed by

the board, in consultation with the Department of

Agriculture, shall restrict, whenever possible, the use

of pesticides to those that are labeled for use in the

cultivation of cannabis or that specifically meet the

United States Environmental Protection Agency

Registration exemption criteria for minimum risk in

accordance with regulations promulgated by the United

States Department of Environmental Protection under the

Federal Insecticide, Fungicide and Rodenticide Act (61

Stat. 163, 7 U.S.C. § 136 et seq.).

(iv) All pesticides shall be administered in

compliance with regulations promulgated by the board in

consultation with the Department of Agriculture.

(3) Cannabis and cannabis products shall be processed in

accordance with good processing best practices and standards

as specified in 21 CFR (relating to food and drugs), as may

be modified by the board in consultation with the Department

20210HB2050PN2333 - 243 -

of Agriculture.

(4) No cannabis processor licensee shall process or

otherwise produce a cannabis product which, in the discretion

of the board, is designed to appeal to an individual under 21

years of age.

(5) The use or integration of powdered alcohol or

nicotine in a cannabis product is strictly prohibited. The

term "powdered alcohol" shall have the meaning given to it in

section 102 of the act of April 12, 1951 (P.L.90, No.21),

known as the Liquor Code.

Section 614. Provisions governing cannabis retailer licensees.

(a) Requirements and prohibitions.--The following apply:

(1) No cannabis retailer licensee shall sell, deliver or

give away or cause, permit or procure to be sold, delivered

or given away any cannabis or cannabis products to an

individual under 21 years of age or who is visibly

intoxicated or impaired.

(2) Valid proof of age shall be required for each

transaction. No cannabis retailer licensee or agent or

employee of a cannabis retailer licensee shall accept, as

written evidence or proof of age for the purchase of a

cannabis product, any documentation other than:

(i) A valid driver's license, REAL ID or nondriver

photo identification card issued by the Pennsylvania

Department of Transportation or any other state or United

States territory, the District of Columbia, a provincial

government of the dominion of Canada or any other

jurisdiction.

(ii) A valid passport issued by the United States

government or any other country.

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(iii) A valid military identification card issued by

the armed forces of the United States or a veteran's

identification card issued by the United States

Department of Veterans Affairs.

(3) Upon the presentation of a driver's license, REAL ID

or nondriver identification card under paragraph (2)(i), the

cannabis retailer licensee or agent or employee of the

cannabis retailer licensee may perform a transaction scan as

a precondition to the sale of cannabis or a cannabis product.

(4) Nothing in this section shall prohibit a cannabis

retailer licensee or an agent or employee of a cannabis

retailer licensee from performing a transaction scan on any

of the identification documents listed in paragraph (2), if

the documents include a bar code, magnetic strip or microchip

that may be scanned by a device capable of deciphering

electronic or encrypted data into a readable format. In

instances where the information deciphered by the transaction

scan fails to match the information printed on the

identification documentation presented by the cardholder, or

if the transaction scan indicates that the information is

false or fraudulent, the attempted purchase of the cannabis

or cannabis product shall be denied.

(5) A cannabis retailer licensee may not sell liquor or

malt or brewed beverages nor have or possess a license to

sell or offer for sale liquor or malt or brewed beverages

issued by the Pennsylvania Liquor Control Board under the act

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

or allow an individual or cannabis consumer to possess or

consume liquor or malt or brewed beverage on the premises of

the cannabis retailer licensee's cannabis establishment.

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(6) Signs and posters, whether printed, painted or

electronic, advertising any brand of cannabis or a cannabis

product may not be permitted on the exterior of a cannabis

retailer licensee's cannabis establishment, except as

approved by regulation of the board.

(7) A cannabis retailer licensee may not sell, offer for

sale or deliver cannabis or cannabis products to a person

with knowledge of or with reasonable cause to believe that

the person to whom the cannabis or cannabis products are

being sold has acquired the cannabis or cannabis products for

the purpose of selling, transferring or giving them away in

violation of this act or regulations of the board.

(8) The premises of a cannabis retailer licensee's

cannabis establishment shall be subject to random inspection

by the board and the department or an authorized agent of the

board and the department during normal business hours.

(9) Except as provided in this act, no cannabis retailer

licensee shall make or cause to be made a loan to a person

engaged in the cultivation, processing, distribution,

testing, transportation or delivery of cannabis or cannabis

products under this act or to a director, officer, principal,

employee or other person affiliated with a cannabis

cultivator licensee, cannabis processor licensee, cannabis

transporter licensee, cannabis testing laboratory or cannabis

microbusiness licensee or to an affiliate, subsidiary,

intermediary or holding company of a cannabis cultivator

licensee, cannabis processor licensee, cannabis transporter

licensee, cannabis testing laboratory or cannabis

microbusiness licensee.

(10) It shall be unlawful for a person to offer or

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deliver money or anything else of value, directly or

indirectly, to a cannabis retailer licensee or an employee or

agent of a cannabis retailer licensee to obtain preferential

placement of cannabis or cannabis products within the

cannabis retailer licensee's cannabis establishment,

including, without limitation, on shelves and in display

cases where cannabis consumers can view products, or on the

cannabis retailer licensee's Internet website or social media

page.

(11) A cannabis retailer licensee shall display the

price of cannabis and each cannabis product by attaching to

or otherwise placing a price tag, sign or placard stating the

price immediately adjacent to the cannabis or cannabis

product offered for sale by the cannabis retailer licensee at

the cannabis establishment.

(12) A cannabis retailer licensee may not allow or

permit gambling or offer gambling on the premises of the

cannabis establishment.

(13) A cannabis retailer licensee may not allow or

permit illicit drug activity on the premises of the cannabis

establishment.

(14) If an employee of a cannabis retailer licensee

suspects that a cannabis consumer may be abusing cannabis,

the employee may encourage the cannabis consumer to seek help

from a substance use disorder program or harm reduction

services. The board shall, in consultation with the

Department of Drug and Alcohol Programs or any successor

agency, develop operating procedures and written materials

for distribution to cannabis retailer licensees and employees

and agents of cannabis retailer licensees for use when

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interacting with or consulting cannabis consumers for

purposes of this paragraph.

(15) Each cannabis retailer licensee shall:

(i) Provide the national toll-free helpline

telephone number (800.662.HELP)(4357) to individuals and

families seeking substance use disorder treatment

referral and information services.

(ii) In a manner that is unobstructed and visible to

cannabis consumers and other patrons of the cannabis

establishment, conspicuously post at least four signs

inside the cannabis establishment and one or more signs

outside at or near the door or doors used to enter the

cannabis establishment that include a statement in

substantially the following form:

If you or someone you know needs help finding a drug

treatment provider or information about drug

addiction and treatment, help is available. Please

call 800.662.HELP (4357) anytime, any day. Be

assured, your call is confidential.

A sign must be posted at or near transaction scan

devices, at each publicly accessible entry and exit door,

within 10 feet of any automated teller machine and in

other public area determined appropriate by the cannabis

retailer licensee.

(iii) A cannabis retailer licensee may consult with

the Department of Drug and Alcohol Programs to carry out

the signage requirement under subparagraph (ii) or may

acquire signs that may be available from the Department

of Drug and Alcohol Programs or any other state or local

government agency. Nothing in this paragraph shall

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preclude a cannabis retailer licensee from acquiring the

signage required under subparagraph (ii) from the

Department of Drug and Alcohol Programs or from a for-

profit or nonprofit organization concerned with substance

use disorder prevention or treatment.

(b) Operational requirements and additional prohibitions.--A

cannabis retailer licensee shall operate in accordance with the

representations made in its application for licensure and shall

at all times be in compliance with the requirements of this act

and regulations of the board. The following apply:

(1) A cannabis retailer licensee must include the

cannabis retailer licensee's legal name on the packaging of

cannabis or cannabis product the cannabis retailer licensee

sells or offers for sale.

(2) All cannabis, cannabis products and cannabis seeds

must be obtained from a cannabis cultivator licensee,

cannabis processor licensee or cannabis microbusiness

licensee.

(3) Cannabis retailer licensees are prohibited from

selling any product containing alcohol except tinctures,

which must be limited to containers that are no larger than

100 milliliters, unless otherwise modified by regulation of

the board.

(4) A cannabis retailer licensee shall inspect, weigh

and count cannabis and cannabis products received from a

cannabis cultivator licensee or cannabis processor licensee

prior to selling or offering the product for sale.

(5) A cannabis retailer licensee may only accept

cannabis and cannabis products into a restricted access area.

Deliveries of cannabis and cannabis products may not be

20210HB2050PN2333 - 249 -

accepted through a public or limited access area unless

otherwise approved by regulation of the board.

(6) A cannabis retailer licensee shall maintain

compliance with State and local building, fire and zoning

codes or regulations.

(7) A cannabis retailer licensee shall develop and

maintain a list of the names of all service professionals who

will work as an employee or contractor at the cannabis

retailer licensee's cannabis establishment. The following

apply:

(i) The service professional list shall include a

description of the business or service provided or

proposed to be provided by the service professional.

(ii) The service professional list shall be

submitted to the board at the time, form and manner as

the board shall prescribe by regulation.

(iii) Changes to the service professional list shall

be promptly forwarded to the board.

(iv) A service professional may not work for or

perform the duties of a contract for a cannabis retailer

licensee until the name is provided to the board and

appears on the service professional list.

(8) A cannabis retailer's license authorizes the

operation of a cannabis establishment at the location

specified in the application, as approved by the board under

this act.

(9) A cannabis retailer licensee must keep all lighting

outside and inside the cannabis establishment in good working

order and at a wattage sufficient for security cameras.

(10) A cannabis retailer licensee shall ensure that any

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building or equipment used by the cannabis retailer licensee

for the storage, sale or offering for sale of cannabis or

cannabis products is maintained in a clean and sanitary

condition.

(11) A cannabis retailer licensee's cannabis

establishment shall be free from infestation by insects,

rodents and pests.

(12) A cannabis retailer licensee shall not:

(i) Except as provided for in this act, cultivate or

grow cannabis or process or produce cannabis products.

(ii) Accept cannabis or a cannabis product from a

cannabis cultivator licensee, cannabis processor licensee

or other cannabis retailer licensee unless the cannabis

or cannabis product is prepackaged and labeled as

provided under this act and regulations of the board.

(iii) Obtain cannabis or cannabis products from any

source whatsoever outside this Commonwealth or from any

person who is not licensed by the board as a cannabis

entity licensee.

(iv) Sell cannabis or cannabis products to an

individual, unless the cannabis retailer licensee or an

employee verifies that the purchaser is 21 years of age

or older.

(v) Enter into an exclusive agreement with another

cannabis entity licensee to procure the cannabis entity

licensee's cannabis and cannabis product supply from a

single source.

(vi) Refuse to conduct business with a cannabis

entity licensee that has the ability to properly deliver

cannabis or cannabis products on the same terms as other

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cannabis entity licensees with whom the cannabis retailer

licensee is conducting business.

(vii) Operate drive-through windows, unless the plan

to operate a drive-through window is specified in the

application for licensure. The board shall adopt and

promulgate regulations to govern the sale of cannabis and

cannabis products through drive-through windows.

(viii) Allow for the sale or dispensing of cannabis

or cannabis products in vending machines.

(ix) Transport or deliver cannabis to residences or

other locations.

(x) Enter into an agreement to allow a person who

does not hold a valid cannabis transporter license to

transport or otherwise deliver cannabis or cannabis

products.

(xi) Operate a cannabis establishment, if the video

surveillance equipment inside or outside of the cannabis

establishment is inoperative.

(xii) Operate a cannabis establishment if the point-

of-sale system is inoperative.

(xiii) Operate a cannabis establishment if the

Commonwealth's verification system is inoperative.

(xiv) Have fewer than two people working at the

cannabis retailer licensee's cannabis establishment at

any time during which the cannabis establishment is open

for business.

(xv) Be located within 1,500 feet of the property

line of another cannabis retailer licensee's cannabis

establishment or a dispensary as defined in the Medical

Marijuana Act.

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(xvi) Sell clones or other live plant material.

(xvii) Sell cannabis, cannabis concentrate or

cannabis products in combination or bundled with each

other or other items for one price. Each item of

cannabis, cannabis concentrate or cannabis product must

be separately identified by quantity and price on the

receipt verifying the sales transaction.

(xviii) Violate any other provision of this act or

regulations promulgated by the board under this act.

Section 615. Provisions governing cannabis transporter

licensees.

(a) Requirements.--The following apply:

(1) The operating documents of a cannabis transporter

licensee shall include procedures for the oversight of the

transporter inventory, including an inventory monitoring

system capable of physically recording cannabis and cannabis

products transported or delivered by the cannabis transporter

licensee on a weekly basis, accurate recordkeeping and a

staffing plan.

(2) All cannabis and cannabis products transported by a

cannabis transporter licensee must be entered into a data

collection system and placed into a cannabis container for

transport.

(3) Cannabis transporter licensees shall be subject to

random inspections by the board or a designated employee or

agent of the board and the Pennsylvania State Police.

(4) A cannabis transporter licensee or a designated

employee, contractor or employee of the contractor shall

notify the board or a designated employee or agent of the

board, the Pennsylvania State Police or local law enforcement

20210HB2050PN2333 - 253 -

within 24 hours of the discovery of any loss or theft.

Notification may be made by phone, in person or by written or

electronic communication.

(5) The identification card of all agents and employees

of a cannabis transporter licensee must be visibly affixed on

the agent or employees at all times when on the property of

the cannabis transport licensee's cannabis establishment and

while transporting cannabis or cannabis products.

Identification cards must be provided upon request of the

board or an employee or agent of the board, a member of the

Pennsylvania State Police or to a law enforcement officer

engaged in official duties.

(6) A copy of the cannabis transporter licensee's

cannabis entity license and a manifest of the cannabis or

cannabis products subject to delivery shall be present in any

vehicle used by the cannabis transporter licensee to

transport cannabis and cannabis products.

(7) All cannabis and cannabis products shall be

transported in a manner that is not visible or recognizable

from any angle outside the transporting vehicle.

(8) A vehicle used to transport cannabis and cannabis

products shall not bear any markings, logos, writings,

symbols or any other drawings, depictions or illustrations

which would indicate or cause an individual to believe or

assume that the vehicle contains cannabis or cannabis

products.

(9) Cannabis and cannabis products must be transported

in an enclosed, locked storage compartment which is secured

or affixed to the transporting vehicle.

(10) A cannabis transporter licensee shall provide the

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board with information on:

(i) The number and type of vehicles and equipment

the cannabis transporter licensee will use to transport

cannabis and cannabis products.

(ii) Loading, transporting and unloading plans.

(iii) Experience in transportation, distribution or

security business, if applicable.

(b) Regulations.--In addition to any other regulations

adopted and promulgated by the board under this act, the board

shall adopt and promulgate regulations to govern the

transporting and delivery of cannabis and cannabis products. The

regulations shall include, but not be limited to, the following:

(1) The transport of cannabis and cannabis products only

for delivery to a physical address of a cannabis entity

licensee or a laboratory testing facility in this

Commonwealth.

(2) A cannabis transporter licensee shall not deliver

cannabis or cannabis products to an address located on land

owned by the Federal Government or on land or in a building

leased by the Federal Government.

(3) The staffing of vehicles used to transport cannabis

and cannabis products. A cannabis transporter licensee shall

staff each delivery vehicle with an employee, contractor,

employee of a contractor or other person who holds a valid

and current Pennsylvania driver's license, is 18 years of age

or older and has been approved for and issued a cannabis

handler certificate by the board.

(4) A requirement that all deliveries of cannabis or

cannabis products shall be made in person. A delivery of

cannabis or cannabis products shall not be made through the

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use of an unmanned vehicle.

(5) A requirement that each employee, contractor or

employee of a contractor employed by or under contract with a

cannabis transporter licensee or other person approved by the

board to transport cannabis and cannabis products shall carry

a cannabis transporter identification card approved by the

board. The employee, agent, contractor, employee of a

contractor or other person employed by or under contract with

a cannabis transporter licensee shall present the

identification card upon request by a law enforcement officer

engaged in official duties or by the board or an authorized

employee or agent of the board.

(6) Provisions to govern the content of cannabis

transporter identification cards.

(7) A requirement that during transport of cannabis or

cannabis products, the employee, contractor or employee of

the contractor or other person making the delivery has a

secure form of communication with the cannabis transporter

licensee at all times that a delivery vehicle contains

cannabis or cannabis products. The secure form of

communication shall be owned by and provided to the employee,

contractor, employee of the contractor or other person

transporting cannabis or cannabis products by the cannabis

transporter licensee.

(8) A requirement that, during transport of cannabis or

cannabis products, the employee, contractor, employee of the

contractor or other person making the delivery maintain a

written or electronic itemized copy of the cannabis or

cannabis products subject to transport and delivery. The

itemized copy shall be made available to law enforcement or

20210HB2050PN2333 - 256 -

the board or an authorized employee or agent of the board

upon request.

(9) A requirement that a delivery vehicle be equipped

with a secure lockbox, which shall be stored in the vehicle's

trunk or a secured cargo area and used for the sanitary and

secure transport of cannabis and cannabis products.

(10) Provisions prohibiting an employee, contractor,

employee of the contractor or other person transporting

cannabis or cannabis products from leaving the delivery

vehicle unattended, unless the vehicle is locked and equipped

with an active vehicle alarm system.

(11) A requirement that a delivery vehicle used to

transport cannabis and cannabis products be equipped with a

Global Positioning System device to identify the geographic

location of the delivery vehicle at all times. The device

shall be either permanently or temporarily affixed to the

delivery vehicle while the delivery vehicle is in operation

and shall remain active and under the control of the

employee, contractor, employee of the contractor or other

person making the delivery at all times during transport. At

all times during delivery, the cannabis transporter licensee

shall be able to identify the geographic location of all

vehicles used to transport cannabis or cannabis products and

shall provide that information to the board or law

enforcement upon request.

(12) Provisions requiring all cannabis transporter

licensees to maintain on the premises of the cannabis

establishment a list of all vehicles used by the cannabis

transporter licensee to deliver cannabis and cannabis

products. The following apply:

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(i) The delivery vehicle list shall include a true

and specific description of all delivery vehicles,

including the make, model, color, vehicle identification

number, registration plate number and valid insurance

information.

(ii) The delivery vehicle list shall be immediately

updated to reflect any change in delivery vehicles used

to deliver cannabis and cannabis products.

(iii) The delivery vehicle list shall be made

available to the board or an agent of the board or the

Pennsylvania State Police, upon request.

(iv) No vehicle shall be used by a cannabis

transporter licensee to deliver cannabis products unless

the vehicle is on the delivery vehicle list maintained by

the cannabis transporter licensee.

(v) All delivery vehicles used to transport cannabis

and cannabis products shall be maintained in good working

conditions and in accordance with the vehicle

manufacturer's maintenance schedule.

(vi) A cannabis transporter licensee shall provide

information related to delivery vehicle maintenance to

the board or an employee or agent of the board upon

request.

(13) A cannabis transporter licensee and any contractor

engaged by a cannabis transporter licensee shall maintain

valid automobile liability insurance sufficient to insure all

vehicles used for delivery of cannabis and cannabis products

in the amount of not less than $1,000,000 per occurrence or

accident.

(14) A cannabis transporter licensee shall ensure that

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vehicles used to transport cannabis or cannabis products bear

no words or markings that would either identify or indicate

that the vehicle is used to deliver cannabis or cannabis

products or is owned by the cannabis transporter licensee.

(15) Each cannabis transporter licensee shall ensure

that deliveries are completed in a timely and efficient

manner.

(16) (i) While making deliveries, an employee,

contractor, employee of a contractor or other person

making deliveries for or on behalf of a cannabis

transporter licensee shall only travel from:

(A) the cannabis transporter licensee's licensed

establishment to the delivery address;

(B) one delivery address to another delivery

address; or

transporter licensee's cannabis establishment.

(ii) An employee, contractor, employee of a

contractor or other person making deliveries of cannabis

or cannabis products shall not deviate from the delivery

route described in this paragraph, except in the event of

an emergency or as necessary for fuel, vehicle repair

stops or because weather or road conditions make

continued use of the route or operation of the vehicle

unsafe, impossible or impracticable. Any change in route

directions shall be recorded by the employee, contractor,

employee of the contractor or other person making the

delivery and provided to the cannabis transporter

licensee immediately upon return to the cannabis

transporter licensee's cannabis establishment. Each route

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change shall be included in delivery records in a form

and manner as required by regulation of the board.

(17) Provisions to govern the process of delivery. The

process of delivery shall begin when the employee,

contractor, employee of the contractor or other person

transporting cannabis or cannabis products for a cannabis

transporter licensee leaves the cannabis transporter

licensee's cannabis establishment. The process of delivering

ends when the employee, contractor, employee of the

contractor or other person making the delivery returns to the

cannabis transporter licensee's cannabis establishment.

(18) A requirement that each cannabis transporter

licensee maintain a record of each delivery of cannabis and

cannabis products in a delivery log in either written or

electronic format. For each delivery, the log shall record:

(i) The date and time that the delivery began and

ended.

(ii) The name of the employee or other person making

the delivery.

(iii) The cannabis or cannabis products delivered.

(iv) The lot number of the cannabis.

(v) The signature of the person employed by the

cannabis entity who accepted delivery.

(vi) The address or location of the delivery start

point, the address or location of the delivery end point

and the particulars of any change in route directions

under paragraph (16), if applicable.

(19) Provisions requiring the immediate report of any

vehicle accidents, diversions, losses or other reportable

events that occur during delivery to law enforcement, the

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board or a designated employee or agent of the board.

(20) Provisions governing the issuance of a cannabis

transporter license to the holder of a cannabis cultivator

license or a cannabis processor license. The following apply:

(i) a cannabis cultivator nor a cannabis processor

that holds a valid cannabis entity license may be subject

to the requirements of section 610(b)(3) and (4).

(ii) an applicant for a cannabis cultivator license

or cannabis processor license shall indicate the intent

to transport cannabis cultivated or processed by the

cannabis cultivator licensee or cannabis processor

licensee in the application for a cannabis entity

license.

(1) An individual under 18 years of age may not be an

operator of or a passenger in a delivery vehicle or trailer

owned and used by a cannabis transporter licensee for

transporting cannabis and cannabis products.

(2) An individual who is not a cannabis transporter

licensee or who is not an employee, contractor, employee of a

contractor of a cannabis transporter licensee or other person

approved by the board may not be in a vehicle used to

transport cannabis and cannabis products at any time during

which the cannabis and cannabis products are being

transported.

(3) A cannabis transporter licensee shall not use

commercial vehicles with a weight rating of over 10,001

pounds.

Section 616. Need for additional licenses.

In determining whether to exercise the board's authority to

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issue additional cannabis entity licenses under this chapter,

the board shall consider the following:

(1) The percentage of illicit cannabis sales occurring

in this Commonwealth using data analyzed and compiled by the

Pennsylvania State Police, the United States Drug Enforcement

Agency or any other Federal or State agency to ascertain the

total illicit cannabis sales in this Commonwealth compared to

the amount of sales of cannabis and cannabis products made by

cannabis retailer licensees.

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

cannabis products to serve patients and caregivers under the

Medical Marijuana Act and cannabis consumers under this act.

(3) Whether there is an oversupply of cannabis in this

Commonwealth, which could result in the trafficking of

cannabis and cannabis products to another state or states,

regardless of whether the adult use of cannabis and cannabis

products is statutorily authorized in the other state or

states, or in the diversion of cannabis and cannabis products

to illicit markets.

(4) Population increases or shifts.

(5) The number, density and location of cannabis entity

licenses in this Commonwealth, including the number, density

and location of cannabis entity licenses held by qualified

social and economic equity licensees.

(6) Actual or perceived security risks associated with

increasing the number and location of cannabis entity

licenses.

(7) The past safety record of cannabis entity licensees.

(8) The board's ability to adequately regulate

additional cannabis entity licensees.

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(9) Findings or recommendations of the Office of Social

and Economic Equity related to reducing or eliminating

identified barriers to entry into this Commonwealth's

regulated cannabis industry by social and economic equity

applicants and residents of opportunity zones.

(10) Changes to Federal law.

(11) Any other criteria the board may determine

necessary and appropriate.

CHAPTER 7

PACKAGING, LABELING, TESTING

AND SPECIAL USE PERMITS

Section 701. Packaging and labeling.

(a) General rule.--The board shall adopt and promulgate

regulations to govern the advertising, branding, marketing,

packaging and labeling of cannabis and cannabis products

cultivated, possessed, sold or offered for sale in this

Commonwealth, including rules pertaining to and governing the

accuracy of information and the restriction of marketing and

advertising to minors and individuals under 21 years of age.

(b) Required regulations.--The regulations adopted and

promulgated by the board under subsection (a) shall include, but

not be limited to, requirements that:

(1) The packaging of cannabis and cannabis products

conform with the requirements of the Poison Prevention

Packaging Act of 1970 (Public Law 91-601, 15 U.S.C. §§ 1471-

1475).

(2) (i) Packaging of cannabis products sold or

displayed for sale to cannabis consumers in multiple

servings shall:

(A) Include the statement "INCLUDES MULTIPLE

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SERVINGS" on the exterior of the package in a printed

font that is no smaller than 10-point.

(B) If the cannabis product is in solid form, be

scored in a manner to allow a cannabis consumer to

easily separate the cannabis product into single

servings.

solid form, be easily and permanently scored to

identify individual servings.

(D) If the cannabis product cannot be easily and

permanently scored to identify individual servings,

be packaged in a single-serving size.

(ii) The determination of whether a cannabis product

is able to be easily and permanently scored shall be

decided by the board by regulation.

(3) Cannabis and cannabis products be labeled and placed

in a resealable, child-resistant package prior to delivery to

or sale at a cannabis retailer licensee's cannabis

establishment.

(4) Packages and labels shall not display images,

illustrations, objects or other artwork attractive to minors,

including toys, action figures, emojis or cartoon characters,

or depict any words, phrases, lyrics or slogans designed or

used in any manner to be especially appealing to children,

including the use of images, words, phrases, lyrics or

slogans indicating or depicting candy or candies, gummies or

lollipops.

(5) Labels include warning statements, which shall be

affixed to cannabis and cannabis products, designed to inform

cannabis consumers of any potential harm to human health

20210HB2050PN2333 - 264 -

which may result from the smoking of cannabis or the

consumption of cannabis products, if the warning labels are

determined necessary and appropriate by the board.

requirements of section 501(a)(7)(vii), the regulations

promulgated by the board shall establish the methods and

procedures for determining serving sizes for cannabis products

and active cannabis concentration per serving size. Regulations

may also require a nutritional fact panel that incorporates data

regarding serving sizes and potency of a serving size.

(d) Failure to comply.--In addition to any other penalties

under this act, the packaging, sale, marketing, branding,

advertising, labeling or possession by a licensed cannabis

cultivator licensee, cannabis processor licensee or cannabis

retailer licensee of cannabis or a cannabis product not labeled

in conformity with this act and regulations adopted and

promulgated by the board as provided under this act shall be

grounds for the imposition of a fine or the suspension or

revocation of a license under section 911.

Section 702. Laboratory testing.

(a) Testing required.--

(1) The following apply:

(i) Immediately before manufacturing or natural

processing of cannabis or a cannabis product or packaging

of cannabis, cannabinoid or cannabis product for sale to

a cannabis retailer licensee, each cannabis cultivator

licensee and cannabis processor licensee, including a

cannabis microbusiness licensee, shall make samples of

the cannabis and cannabis product, in a quantity

established by the board, available for quality assurance

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testing by an approved cannabis testing laboratory. Each

sample shall be tested by the cannabis testing laboratory

for:

(A) Microbiological contaminants.

(B) Mycotoxins.

(D) Residual solvent.

(E) An active ingredient analysis.

(ii) Any sample remaining after testing may be

destroyed or returned to the cannabis entity licensee

from which the sample was obtained. The board shall

establish by regulation the amount of cannabis or

cannabis product remaining after testing which may be

returned to the applicable cannabis entity licensee.

(iii) Cannabis shall be tested for the cannabinoid

profile and for contaminants as specified by the board,

including, but not limited to, mold, mildew, heavy

metals, plant growth regulators and the presence of

pesticides.

(iv) The board may require additional testing.

(2) Each cannabis cultivator licensee and cannabis

processor licensee shall contract with a cannabis testing

laboratory that holds a valid permit issued by the board to

test cannabis and cannabis products cultivated or produced by

a cannabis cultivator licensee or processed by a cannabis

processor licensee. The board may assign an approved cannabis

testing laboratory that a cannabis cultivator licensee or a

cannabis processor licensee must use to comply with the

requirements of this section.

(b) Availability of laboratory test reports.--The board

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shall require, in the form and manner prescribed by regulation,

the following:

(1) That cannabis cultivator licensees provide

laboratory test reports to cannabis processor licensees and

cannabis processor licensees provide laboratory test reports

to cannabis retailer licensees as part of all sales

transactions.

(2) That all test reports be entered into the cannabis

plant monitoring system. Subsequent test reports of cannabis

or cannabis products conducted by a cannabis processor

licensee shall also be entered into the cannabis plant

monitoring system by the cannabis processor licensee

conducting a subsequent test.

licensee shall maintain accurate documentation of laboratory

test reports provided to the cannabis retailer licensee under

subsection (b) for cannabis and cannabis products sold or

offered for sale by the cannabis retailer licensee to cannabis

consumers. Documentation of laboratory test shall be retained by

the cannabis retailer licensee for three years.

(d) Onsite testing.--Notwithstanding subsection (a), nothing

in this section shall be construed to prevent a cannabis

cultivator licensee or a cannabis processor licensee from

conducting onsite laboratory testing. The onsite testing

protocol used to test cannabis and cannabis products under this

subsection must be certified by the board and shall, except as

otherwise determined by the board by regulation, not relieve the

cannabis cultivator licensee or the cannabis processor licensee

from the requirements of quality assurance testing of cannabis

or cannabis products by a holder of a valid cannabis laboratory

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testing permit under subsection (a).

(e) Diagram of premises required.--An application for a

cannabis laboratory testing permit shall include a diagram of

the interior of the applicant's cannabis laboratory testing

facility or proposed facility. The diagram shall identify the

principal activity conducted or proposed to be conducted in each

room or partitioned area of the facility, including activities

related to sample receiving, sample storage, record storage,

microbiology and chemical analysis, office space, employee

lounges, restrooms and cafeteria areas, if any.

Section 703. Cannabis testing laboratory permit.

(a) Authority to issue permit.--The board shall issue

permits for one or more independent cannabis testing

laboratories to test cannabis and cannabis products cultivated,

processed, produced, sold or offered for sale in this

Commonwealth.

(b) Submission of application.--To be eligible for a

cannabis testing laboratory permit, a person shall submit an

application to the board in a form and manner as prescribed by

the board by regulation, which demonstrates all of the following

to the satisfaction of the board:

(1) The owners, directors and other persons with

decision-making authority do not pose a threat to the public

interest or the effective regulation and control of cannabis

and cannabis products in this Commonwealth or create or

enhance unsuitable, unfair or illegal practices, methods or

activities related to:

(i) the cultivation, processing, packaging,

repackaging, handling, delivery, transporting,

distribution, storing or sale or offering for sale of

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cannabis or cannabis products;

(ii) the testing of cannabis and cannabis products;

(iii) the operation of a cannabis establishment or

cannabis testing laboratory; and

(iv) any financial arrangements associated with the

operation of a cannabis establishment or cannabis testing

laboratory.

(2) The laboratory and the laboratory's technicians,

employees and other staff have the qualifications, skills,

resources and expertise necessary to accurately and

consistently test cannabis and cannabis products.

(3) The laboratory has in place and will maintain

adequate policies, procedures and facility or building

security to ensure proper collection, labeling, preparation,

analysis, result reporting, disposal and storage of cannabis

and cannabis products.

(4) The laboratory is physically located in this

Commonwealth.

(5) Proof of ISO 17025 accreditation or proof that the

applicant has applied for or is in the process of applying

for or preparing to apply for ISO 17025 accreditation.

(6) The laboratory meets all requirements under this

section and regulation of the board.

this section or regulation of the board, an applicant for a

cannabis testing laboratory permit that meets all the

qualifications for a permit, except for ISO accreditation, may

apply to the board for a provisional cannabis testing laboratory

permit.

(d) Application for provisional permit--An applicant for a

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provisional cannabis testing laboratory permit shall include the

information and documentation required under subsection (b) or

any additional information or documentation as may be required

by regulation of the board, except that documentation evidencing

ISO 17025 accreditation shall not be required.

(e) Issuance of provisional permit.--The following apply:

(1) The board may approve an application for a

provisional cannabis testing laboratory permit if the board

determines that the application satisfies all of the

requirements of this section and regulations of the board.

(2) A provisional cannabis testing laboratory permit

shall expire 12 months from the date of issuance.

(3) The board may, in the board's discretion, renew a

provisional cannabis testing laboratory permit if the testing

laboratory has applied for ISO 17025 accreditation but has

not yet been granted or denied accreditation. A cannabis

testing laboratory applying for a provisional permit shall

provide evidence to the board of having submitted an

application for ISO 17025 accreditation and the status of the

application.

(4) If granted by the board, a provisional cannabis

testing laboratory permit renewed by the board under

paragraph (3) shall expire 180 calendar days after issuance

by the board.

(5) When a testing laboratory holding a provisional

cannabis testing laboratory permit receives ISO 17025

accreditation, the cannabis testing laboratory shall submit

proof of the accreditation to the board within five business

days of receipt of the notice of accreditation. The board, by

regulation, shall specify the form and manner by which proof

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of accreditation may be submitted to the board, including by

electronic mail to a designated office or employee of the

board.

(6) The following apply:

(i) If a cannabis testing laboratory holding a

provisional cannabis testing laboratory permit is denied

ISO 17025 accreditation, the laboratory shall notify the

board of the denial within 24 hours after receipt of the

denial notice. If accreditation is denied, the board

shall revoke the provisional cannabis testing laboratory

permit held by the cannabis testing laboratory and

require immediate stoppage of all testing activities. The

board shall adopt and promulgate regulations that:

(A) Provide the process to be used by the board

to notify a cannabis entity licensee of the

revocation of a cannabis testing laboratory permit

revoked under this paragraph.

(B) Provide the procedures which must be

followed by a cannabis entity licensee that has

submitted cannabis or cannabis products to a cannabis

testing laboratory whose permit is subject to

revocation under this paragraph, including procedures

for reporting and verifying cannabis sample

quantities submitted by each cannabis entity licensee

to the cannabis testing laboratory for testing and

any remaining amounts possessed by the cannabis

testing laboratory from each cannabis entity

licensee.

of cannabis or cannabis products held by a cannabis

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testing laboratory whose permit is subject to

revocation under this paragraph to the cannabis

entity licensee that submitted the cannabis or

cannabis product for testing or for redirecting the

cannabis and cannabis products to another cannabis

testing laboratory.

(D) Provide the conditions under which samples

of cannabis or cannabis products in the possession of

a cannabis testing laboratory whose permit is subject

to revocation may be destroyed or disposed of and the

method of destruction or disposal.

(2) The regulations adopted and promulgated by the board

under this paragraph shall apply to each cannabis testing

laboratory that holds a cannabis testing laboratory permit

issued by the board under subsection (a) if the permit is

subsequently revoked by the board.

(f) Restrictions on ownership.--The following apply:

(1) The holder of a cannabis testing laboratory permit

under this section shall not hold a license, permit or other

authorization to engage in a regulated activity under this

act and shall not have any direct or indirect ownership

interest in a medical marijuana organization under the

Medical Marijuana Act.

(2) A member or employee of the board, the department,

the Department of Agriculture or the Department of Health or

an officer, manager, owner, partner, principal stakeholder,

licensee or other person subject to the board's jurisdiction

under this act, or an immediate family member, may not have

an interest or voting rights in a cannabis testing laboratory

permittee.

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(3) The board shall require that the results of

laboratory test of cannabis and cannabis products be

submitted to the board in a manner, form and time frame as

stipulated by the board in regulations.

(g) Regulations.--The board may, in consultation with the

Department of Agriculture and the Department of Health, adopt

and promulgate regulations to govern the testing of cannabis and

cannabis products by a holder of a cannabis testing laboratory

permit.

Section 704. Special use permits.

(a) Authority to issue.--The following apply:

(1) The board may adopt and promulgate regulations to

govern the issuance of the following special use permits to

carry out activities related to and consistent with the

regulation of cannabis in this Commonwealth:

(i) A packaging permit authorizing a person to sort,

package, label and bundle cannabis and cannabis products.

(ii) A trucking permit authorizing the

transportation of cannabis and cannabis products on

behalf of a cannabis entity licensee by a person other

than a person holding a valid cannabis transporter

license under section 610.

(iii) A warehouse permit authorizing a person to

store cannabis or cannabis products at a location

registered with or otherwise approved by the board.

(b) Specific regulations.--The regulations adopted and

promulgated by the board under subsection (a) shall include, but

not be limited to, the following:

(1) The form and manner for submitting an application

for a special use permit.

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(2) The qualifications necessary to be eligible for a

special use permit.

(3) A reasonable application fee, permit fee and renewal

fee for a special use permit issued by the board under this

section, provided that the permit fee shall be no less than

$10,000 and no more than $15,000.

(4) The terms and renewal requirements for special use

permits authorized under this section.

(5) Recordkeeping requirements for each type of permit

authorized.

(6) Requirements for background investigations,

including the persons affiliated with the applicant for a

special use permit who will be subject to a background

investigation.

(7) Any other requirement, qualification, condition or

information the board deems necessary to carry out this

section.

use permit issued by the board under this section may not have

any interest, financial or otherwise, in the holder of a

cannabis entity license under this act.

CHAPTER 8

RECORDKEEPING, TRACKING, INSPECTION

AND ADVERTISING

Section 801. Recordkeeping and tracking.

(a) Records required.--The board shall require a cannabis

entity licensee to adopt and maintain security, tracking,

inventory control, recordkeeping, record retention and

surveillance systems, relating to all cannabis and cannabis

products at every stage of acquiring, cultivation, processing,

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possession, sale, transporting, delivery, testing and

distribution as provided under this act and regulations of the

board.

(b) Maintenance of records.--A cannabis entity licensee

shall keep and maintain upon the premises of the cannabis

establishment adequate books and records of all transactions

involving the sale of cannabis and cannabis products by the

cannabis entity licensee, which shall include, but is not

limited to, all information required under this section and by

regulation of the board.

(1) Each sale of cannabis or cannabis products shall be

recorded separately on a numbered invoice, which shall

include the following information:

(i) The invoice number.

(ii) The name of the cannabis entity licensee

engaged in the sales transaction.

(iii) The address of the cannabis entity licensee's

cannabis establishment.

(iv) The cannabis entity licensee's current license

number.

(2) A cannabis processor licensee shall deliver to the

cannabis entity licensee from whom the cannabis or cannabis

product is purchased:

(i) A true duplicate numbered invoice stating the

name and address of the cannabis entity licensee's

cannabis establishment involved in the transaction.

(ii) The quantity purchased.

(iii) A description of the cannabis or cannabis

products purchased.

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(iv) The price of the cannabis or cannabis products

purchased.

(v) A true, accurate and complete statement of the

terms and conditions under which the purchase was made.

(vi) Any other information the board may require by

regulation.

(d) Retention period.--All books, records and invoices

required to be maintained under this section shall be kept for a

period of three years and shall be available for inspection by

the board or by an authorized employee or agent of the board.

(e) Additional recordkeeping requirements.--A cannabis

retailer licensee, including a cannabis microbusiness that holds

a cannabis retailer license, shall keep and maintain upon the

premises of the cannabis retailer licensee's cannabis

establishment complete and accurate records of all transactions

involving the purchase and sale of cannabis and cannabis

products. The records shall include, but may not be limited to,

the following:

(1) The total amount of cannabis, by weight, purchased

by the cannabis retailer licensee.

(2) The names, license number, and business addresses of

the cannabis entity licensee from whom the cannabis and

cannabis products were purchased.

(3) The amount of cannabis and cannabis products

involved in each individual purchase.

(4) The total sales of cannabis and cannabis products

made by the cannabis retailer licensee weekly.

Section 802. Inspections.

(a) Random inspections.--The cannabis establishment of a

cannabis entity licensee, permittee or other person engaged in a

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regulated activity under this act shall be subject to random

inspection by the board or a designated employee or agent of the

board during normal business hours. In making inspections, the

board shall make reasonable accommodations so that ordinary

business is not interrupted and safety and security procedures

are not compromised.

(b) Availability of licensee or employee required.--The

person that holds the license, permit or authorization to engage

in a regulated activity under this act or a designated employee

or agent of the person shall be available and present for an

inspection of the cannabis entity licensee's cannabis

establishment.

include, but is not limited to, ensuring compliance by the

licensee, permittee or other person with all applicable State,

municipal and local building codes, fire, health and safety

codes and other applicable regulations.

Section 803. Advertising.

(a) General rule.--In addition to the requirements of

section 501, the board shall adopt and promulgate regulations to

govern the advertising and marketing of cannabis and cannabis

products.

(b) Specific regulations.--The regulations adopted by the

board under subsection (a) shall prohibit advertising which:

(1) Is false, deceptive or misleading.

(2) Promotes overconsumption of cannabis or cannabis

products.

(3) Depicts consumption of cannabis products by children

or other minors.

(4) Is designed in any way to appeal to children or

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other individuals under 21 years of age.

(5) Is within 1,000 feet of the perimeter of a school,

school grounds, playground, park, library, arcade facility,

recreational center, child-care facility or other place where

children congregate or a church, synagogue, mosque or other

building used for religious purposes.

(6) Is in the form of an unsolicited Internet pop-up.

(7) Is on or in a private vehicle or on or in publicly

owned or operated property, including a public transit

vehicle, public transit shelter, bus stop, taxi stand,

transportation waiting area, train station, airport or

similar transit-related location.

(8) Makes medical claims or promotes the smoking or

consumption of cannabis or cannabis products for a medical or

wellness purpose.

(1) The board shall promulgate explicit regulations that

prohibit all marketing strategies and implementation of

marketing strategies, including, but not limited to,

marketing strategies involving the branding, packaging,

labeling, location of cannabis retailers and advertisements

which are designed to:

(i) appeal to minors and individuals under 21 years

of age; or

(ii) provide or otherwise disseminate false or

misleading information to cannabis customers.

(2) The regulations promulgated by the board shall

require that:

(i) All advertisement and marketing accurately and

legibly identify the licensed cannabis retailer and, if

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applicable, any other business or entity responsible for

the content of the advertisement or marketing.

(ii) Any broadcast, cable, radio, print and digital

communication advertisements only be placed where the

audience is reasonably expected to be 21 years of age or

older, as determined by reliable, current audience

composition data.

(d) Permitted practices.--Notwithstanding any provision of

this act to the contrary, a cannabis entity licensee may:

(1) Develop a brand name for use in labeling, signage

and other materials, provided that the use of a medical

symbol or image of cannabis, cannabis products or related

paraphernalia which are appealing to individuals under 21

years of age and colloquial references to cannabis, cannabis

products or related paraphernalia is prohibited and shall not

be used in the brand name.

(2) Use the cannabis entity licensee's brand name for

sponsorship of a charitable, sporting or similar event, if

the following conditions, as determined by the board, are

satisfied:

(i) Sponsorship of the event is limited to the brand

name.

(ii) Any advertisement at or in connection with the

event shall be prohibited, unless the advertising is

targeted to entrants or participants reasonably expected

to be 21 years of age or older, as determined by

reliable, current audience composition data, and

reasonable safeguards have been employed to prohibit

advertising from targeting or otherwise reaching entrants

or participants reasonably expected to be under 21 years

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of age, as determined by reliable, current audience

composition data.

(3) Engage in reasonable marketing, advertising and

branding practices which are not otherwise prohibited under

this act and which do not jeopardize the public health,

welfare or safety of the general public, promote the

diversion of cannabis or cannabis product use in individuals

under 21 years of age or otherwise promote practices

inconsistent with the purposes of this act. Marketing,

advertising or branding created for viewing by the general

public shall include the statement "PLEASE CONSUME

RESPONSIBLY" in bold font and in a conspicuous manner on the

face of the advertisement, and shall include at least two of

the following warnings in their entirety in bold font and in

a conspicuous manner on the face of the advertisement:

(i) "Cannabis causes impairment and may be habit

forming."

(ii) "Cannabis can impair concentration,

coordination and judgment. Do not operate a vehicle or

machinery under the influence of cannabis or a cannabis

product."

(iii) "There may be health risks associated with the

smoking of cannabis or the consumption of a cannabis

product."

(e) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Brand name." A name, alone or in conjunction with any other

word or phrase, trademark, logo, symbol, motto, recognizable

pattern of colors or any other identifiable marker associated

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with a cannabis entity licensee.

"Brand name sponsorship." The payment by a cannabis entity

licensee in exchange for use of a brand name to:

(1) Sponsor a charitable, sporting, musical, artistic or

other social or cultural event.

(2) Identify, advertise or promote an event under

paragraph (1) or an entrant or participant of an event.

CHAPTER 9

ADMINISTRATION AND ENFORCEMENT

Section 901. Authority and duties of department and Department

of Agriculture.

(a) Authority of department.--The department shall:

(1) Administer and collect taxes imposed under this act

and interest imposed under section 806 of the act of April 9,

1929 (P.L.343, No.176), known as The Fiscal Code.

(2) Promulgate and enforce rules and regulations to

carry out the department's prescribed duties as provided

under this act, including the collection of taxes, penalties

and interest imposed by this act, and to prescribe the

extent, if any, to which any rules and regulations shall be

applied without retroactive effect.

(3) Prescribe the forms and the system of accounting and

recordkeeping to be employed by cannabis entity licensees,

permittees and other persons engaged in a regulated activity

under this act to carry out the department's duties under

this act.

(b) Powers and duties of department.--The following apply:

(1) The department, for the purpose of audit and

examination, shall at all times have the power of access to

all books, records, documents, materials, devices and

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equipment, including, but not limited to, point-of-sale

systems, transaction scan devices, weights and measures and

computer software, hardware and associated electronic

equipment, and any other equipment or devices maintained and

used by a cannabis entity licensee, permittee or other person

authorized to engage in a regulated activity under this act

and related to all aspects of cannabis operations, which are

kept, maintained or otherwise used by a cannabis entity

licensee, permittee or other person authorized to engage in a

regulated activity under this act.

(2) Notwithstanding section 353(f) of the act of March

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

the department shall supply the board, the bureau, the

Pennsylvania State Police and the Office of Attorney General

with information concerning the status of delinquent taxes

owned by the applicant, licensee, permittee or other person

authorized to engage in a regulated activity under this act.

department's powers and duties under this act, the department

may adopt and promulgate temporary regulations in the same

manner in which the board is authorized to adopt and promulgate

temporary regulations under section 307.

(d) Additional penalty.--A person that fails to timely remit

to the department or the State Treasurer amounts required under

this act shall be liable, in addition to any liability imposed

elsewhere under this act or which may be imposed under the Tax

Reform Code of 1971, for a penalty of 5% per month up to a

maximum of 25% of the amount ultimately found to be due and

payable, to be recovered by the department.

(e) Duties of Department of Agriculture.--The following

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apply:

(1) In addition to other obligations of the Department

of Agriculture as provided under this act, the Department of

Agriculture shall collaborate with the board to develop

standards and best practices related to the following:

(i) The cultivation of cannabis as a value-added

agricultural crop.

(ii) Cultivation methods, including, but not limited

to, indoor and outdoor cultivation of cannabis, such as

hydroponic and aeroponic cultivation, and other methods

for growing and cultivating cannabis.

(iii) Production protocols, including pest

management and the use of insecticides, pesticides,

herbicides, fertilizers and other chemicals in crop

production.

(iv) Criteria which may be used to determine when

cannabis and cannabis products may be deemed adulterated

or misbranded. In developing criteria, the board and the

Department of Agriculture may base a determination on the

factors under 3 Pa.C.S. §§ 5728 (relating to adulteration

of food) and 5729 (relating to misbranding of food).

(v) Nutrient and waste management.

(vi) Ethical and environmentally friendly

agricultural practices related to the cultivation of

cannabis.

(vii) Other agricultural best practices used in

agricultural operations related to crop production.

(2) The Department of Agriculture shall further advise

and assist the board and the Office of Social and Economic

Equity in developing criteria for identifying and certifying

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disadvantaged farmer-owned small businesses and other small

businesses engaged in agricultural production for

participation in this Commonwealth's regulated cannabis

industry as social and economic equity applicants. In

developing the criteria, the board and the Department of

Agriculture may solicit advice and recommendations from the

Center for Rural Pennsylvania and other stakeholders and

Statewide organizations and associations concerned with

farming and agricultural crop production in this

Commonwealth.

Section 902. Liens and suits for taxes.

(a) Liens for taxes.--All unpaid taxes imposed under this

act shall be subject to section 1401 of the act of April 9, 1929

(P.L.343, No.176), known as The Fiscal Code.

(b) Suits for taxes.-All taxes imposed under this act that

are unpaid or delinquent shall be subject to section 243 of the

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

of 1971.

Section 903. No eminent domain authority.

Neither the Commonwealth nor a political subdivision of the

Commonwealth shall have the right to acquire, with or without

compensation, through the power of eminent domain any property,

easement or land-use right for the siting or construction of a

cannabis establishment.

Section 904. Cannabis establishment zoning and land-use

appeals.

In order to facilitate timely implementation of the

regulation of cannabis and cannabis products for personal use as

provided in this act, notwithstanding 42 Pa.C.S. § 933(a)(2)

(relating to appeals from government agencies), the Supreme

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Court of Pennsylvania is vested with exclusive appellate

jurisdiction to consider appeals of a final order, determination

or decision of a political subdivision or local instrumentality

involving zoning, usage, layout, construction or occupancy,

including location, size, bulk and use of a cannabis entity

licensee's cannabis establishment. The court, as appropriate,

may appoint a master to hear an appeal under this section.

Section 905. Labor hiring preferences.

A cannabis entity licensee, permittee and other person

authorized to engage in a regulated activity under this act

shall prepare a hiring plan for employees of the respective

cannabis establishment or cannabis operation. The hiring plan

shall promote a diverse workforce, advance participation and

inclusion by people of color, service-disabled veterans,

veterans, economically disadvantaged farmers, individuals

residing in opportunity zones and individuals from within the

municipality or geographic region where the cannabis

establishment or cannabis operation is or will be located. The

hiring plan shall be approved by the board and shall be

consistent with the diversity, inclusion and social and economic

equity goals outlined in this act.

Section 906. Financial and employment interests.

(a) Financial interests.--Except as may be provided for the

judiciary by rule or order of the Pennsylvania Supreme Court, an

executive-level public employee, public official or party

officer, or an immediate family member of the employee, official

or officer, shall not intentionally or knowingly hold a

financial interest in an applicant, licensee, permittee or other

person authorized to engage in a regulated activity under this

act or in a holding company, affiliate, intermediary or

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subsidiary while the individual is an executive-level public

employee, public official or party officer and for two years

following termination of the individual's status as an

executive-level public employee, public official or party

officer.

(b) Employment interests.--Except as may be provided by rule

or order of the Pennsylvania Supreme Court and except as

provided in section 302 or section 303, no executive-level

public employee, public official or party officer, or an

immediate family member of the employee, official or officer,

shall be employed by an applicant, licensee, permittee or other

person authorized to engage in a regulated activity under this

act or by a holding company, affiliate, intermediary or

subsidiary, while the individual is an executive-level public

employee, public official or party officer and for two years

following termination of the individual's status as an

executive-level public employee, public official or party

officer.

(1) An executive-level public employee, public official

or party officer, or an immediate family member of the

employee, official or officer, may not solicit or accept a

complimentary service or thing of value or from an applicant

or a cannabis entity licensee, permittee or other person

authorized to engage in a regulated activity under this act

or from any affiliate, intermediary, subsidiary or holding

company, which the executive-level public employee, public

official or party officer, or an immediate family member of

the employee, official or officer, knows or has reason to

know is other than a service or discount which is offered to

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members of the general public in like circumstances.

(2) An applicant, cannabis entity licensee, permittee or

other person engaged in a regulated activity under this act

or any affiliate, intermediary, subsidiary or holding

company, may not offer or deliver to an executive-level

public employee, public official or party officer, or an

immediate family member of the employee, official or officer,

a complimentary service or thing of value from an applicant,

cannabis entity licensee, permittee or other person engaged

in a regulated activity under this act or an affiliate,

intermediary, subsidiary or holding company, that the

applicant, cannabis entity licensee, permittee or other

person engaged in a regulated activity under this act, or any

affiliate, intermediary, subsidiary or holding company, knows

or has reason to know is other than a service or discount

that is offered to members of the general public in like

circumstances.

(3) As used in this subsection, "complimentary service"

shall mean a service, product or other item, including

lodging, which is provided to an individual at no cost or at

a reduced or discounted cost, which is not generally

available to the public under similar circumstances without

cost or at a reduced or discounted cost. Group rates,

including convention and government rates, shall be deemed to

be generally available to the public.

(d) Grading.--An individual who violates this section

commits a misdemeanor and shall, upon conviction, be sentenced

to pay a fine of not more than $1,000 or to imprisonment for not

more than one year, or both.

(e) Divestiture.--The following apply:

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(1) An executive-level public employee, public official

or party officer, or an immediate family member of the

employee, official or officer, who holds a financial interest

prohibited by this section shall divest the financial

interest within three months of the effective date of the

restrictions under subsection (a), as applicable. Thereafter,

an executive-level public employee, public official, party

officer or immediate family member shall have 30 days from

the date the individual knew or had reason to know of the

violation or 30 days from the date of publication in the

Pennsylvania Bulletin of the complete list of persons or

entities who applied for or held a license, permit or other

authorization to engage in a regulated activity under section

304(b)(24), whichever occurs earlier, to divest the financial

interest. The State Ethics Commission may, for good cause,

extend the time period under this subsection.

(f) State Ethics Commission.--The State Ethics Commission

shall do all of the following:

(1) Issue a written determination of whether a person is

subject to subsection (a), (b) or (c) upon the written

request of the person or any other person that may have

liability for an action taken with respect to the person. A

person that relies in good faith on a determination made by

the State Ethics Commission under this paragraph shall not be

subject to any penalty for an action taken, provided that all

material facts stated in the request for the determination

are correct.

(2) Publish a list of all State, county, municipal and

other government positions that meet the definitions of

"public official" and "executive-level public employee" as

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defined under subsection (g). The Office of Administration

shall assist the State Ethics Commission in the development

of the list, which shall be transmitted to the Legislative

Reference Bureau for publication in the Pennsylvania Bulletin

biennially and posted by the board on the board's publicly

accessible Internet website. Upon request, each public

official shall have a duty to provide the State Ethics

Commission with adequate information to accurately develop

and maintain the list. The State Ethics Commission may impose

a civil penalty under 65 Pa.C.S. § 1109(f) (relating to

penalties) upon any individual, including any public official

or executive-level public employee, who fails to cooperate

with the State Ethics Commission under this subsection. A

person that relies in good faith on the list published by the

State Ethics Commission shall not be subject to any penalty

for a violation of this section.

(g) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Executive-level public employee." The term shall include

the following:

(1) Deputy secretaries of the Commonwealth and the

Governor's Office executive staff.

(2) An employee of the executive branch whose duties

substantially involve licensing or enforcement under this

act, who has discretionary power which may affect or

influence the outcome of a Commonwealth agency's action or

decision or who is involved in the development of regulations

or policies relating to a cannabis entity licensee, permittee

or other person engaged in a regulated activity under this

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act. The term shall include an employee with law enforcement

authority.

(3) An employee of a county or municipality with

discretionary powers which may affect or influence the

outcome of the county's or municipality's action or decision

related to this act or who is involved in the development of

law, regulation or policy relating to matters regulated under

this act. The term shall include an employee with law

enforcement authority.

(4) An employee of a department, agency, board,

commission, authority or other governmental body not included

in paragraph (1), (2) or (3) with discretionary power which

may affect or influence the outcome of the governmental

body's action or decision related to this act or who is

involved in the development of regulation or policy relating

to matters regulated under this act. The term shall include

an employee with law enforcement authority.

"Financial interest." Owning or holding, or being deemed to

hold, debt or equity securities or other ownership interest or

profits interest in a cannabis entity licensee, permittee or

other person authorized to engage in a regulated activity under

this act. A financial interest shall not include any debt or

equity security or other ownership interest or profits interest

which is held or deemed to be held in any of the following:

(1) A blind trust over which the executive-level public

employee, public official or party officer or immediate

family member may not exercise any managerial control or

receive income from during the tenure of office and the

period under subsection (a). This paragraph shall apply only

to blind trusts established prior to the effective date of

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this paragraph.

(2) Securities that are held in a pension plan, profit-

sharing plan, individual retirement account, tax-sheltered

annuity, a plan established under section 457 of the Internal

Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et

seq.) or any successor provision deferred compensation plan,

whether qualified or not qualified under the Internal Revenue

Code of 1986 or any successor provision, or other retirement

plan that is:

(i) not self-directed by the individual; and

(ii) advised by an independent investment adviser

who has sole authority to make investment decisions with

respect to contributions made by the individual to the

plan.

(3) A tuition account plan organized and operated under

section 529 of the Internal Revenue Code of 1986 that is not

self-directed by the individual.

(4) A mutual fund where the interest owned by the mutual

fund in a licensed entity does not constitute a controlling

interest as defined in this act.

"Immediate family." A spouse, minor child or unemancipated

child.

"Party officer." A member of a national committee, a

chairperson, vice chairperson, secretary, treasurer or counsel

of a State committee or member of the executive committee of a

State committee, a county chairperson, vice chairperson,

counsel, secretary or treasurer of a county committee in which a

cannabis entity licensee's cannabis establishment is located or

a city chairperson, vice chairperson, counsel, secretary or

treasurer of a city committee of a city in which a cannabis

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establishment is located.

"Public official." The term shall include the following:

(1) The Governor, Lieutenant Governor, a member of the

Governor's cabinet, Treasurer, Auditor General and Attorney

General of the Commonwealth.

(2) A member of the Senate or House of Representatives

of the Commonwealth.

(3) An individual elected or appointed to any office of

a municipality that directly receives a distribution of

revenue under this act.

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

agency, board, commission, authority or other governmental

body not included in paragraph (1), (2) or (3) that directly

receives a distribution of revenue under this act.

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

agency, board, commission, authority, county, municipality or

other governmental body not included in paragraph (1), (2) or

(3) with discretionary power which may influence or affect

the outcome of an action or decision and who is involved in

the development of regulation or policy relating to the

regulation of cannabis for personal use under this act or who

is involved in other matters under this act.

Section 907. Additional restrictions.

(a) Restrictions.--No employee of the department, the

Department of Agriculture, the Department of Health, the Office

of Attorney General or a member or employee of the Pennsylvania

State Police whose duties substantially involve licensing or

enforcement, the development of laws or the development or

adoption of regulations or policy related to the regulation of

cannabis for personal use under this act or who has other

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discretionary authority which may affect or influence the

outcome of an action, proceeding or decision under this act

shall do any of the following:

(1) Accept employment with or be retained by an

applicant or cannabis entity licensee, permittee or other

person authorized to engage in a regulated activity under

this act or an affiliate, intermediary, subsidiary or holding

company for a period of two years after the termination of

employment.

(2) Appear before the board in a hearing or proceeding

or participate in any other activity on behalf of an

applicant or cannabis entity licensee, permittee or other

person authorized to engage in a regulated activity under

this act or an affiliate, intermediary, subsidiary or holding

company for a period of two years after termination of

employment. Nothing in this paragraph shall prevent a current

or former employee of the department, the Department of

Agriculture, the Department of Health, the Office of Attorney

General or a member or employee of the Pennsylvania State

Police from appearing before the board in a proceeding or

hearing as a witness or testifying as to any fact or

information.

(3) As a condition of employment, a potential employee

of the department, the Department of Agriculture, the

Department of Health, the Office of Attorney General and a

member or employee of the Pennsylvania State Police who would

be subject to this subsection shall sign an affidavit that

the individual will not accept employment with or be retained

by an applicant or cannabis entity licensee, permittee or

other person authorized to engage in a regulated activity

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under this act or an affiliate, intermediary, subsidiary or

holding company for a period of two years after the

termination of employment.

(b) Employment or retention.--An applicant or cannabis

entity licensee, permittee or other person authorized to engage

in a regulated activity under this act or an affiliate,

intermediary, subsidiary or holding company shall not employ or

retain an individual subject to subsection (a) until the

expiration of the period required in subsection (a)(1). An

applicant or cannabis entity licensee, permittee or other person

authorized to engage in a regulated activity under this act or

an affiliate, intermediary, subsidiary or holding company that

knowingly employs or retains an individual in violation of this

subsection shall terminate the employment of the individual and

be subject to administrative sanction by the board.

refuses or otherwise fails to sign an affidavit as a condition

of employment under subsection (a)(3), the individual's

potential employer shall rescind the offer of employment.

(d) Code of conduct.--The following apply:

(1) The department, Department of Agriculture,

Department of Health, Office of Attorney General and

Pennsylvania State Police each shall adopt a comprehensive

code of conduct which shall supplement all other requirements

under this act and 65 Pa.C.S. Pt. II (relating to

accountability), as applicable, and shall provide guidelines

applicable to the following persons to enable them to avoid

any perceived or actual conflict of interest and to promote

public confidence in the integrity and impartiality related

to the regulation of cannabis for personal use:

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(i) Employees and independent contractors of the

department, the Department of Agriculture and the

Department of Health.

(ii) Members, employees and independent contractors

of the Pennsylvania State Police and employees and

independent contractors of the Office of Attorney General

whose duties substantially involve licensing or

enforcement, the development of laws or the development

or adoption of regulations or policy related to the

regulation of cannabis for personal use under this act or

who have other discretionary authority which may affect

the outcome of an action, proceeding or decision under

this act.

(iii) The immediate families of employees and

independent contractors of the department, members,

employees and independent contractors of the Pennsylvania

State Police and employees and independent contractors of

the Department of Agriculture, the Department of Health

and the Office of Attorney General.

(2) At a minimum, the code of conduct adopted under this

section shall apply to the types of restrictions applicable

to members of the board under section 303(c), except that the

restrictions under section 303(c)(4) shall not apply to the

Attorney General.

(e) State Ethics Commission and agencies.--The following

apply:

(1) The State Ethics Commission shall do all of the

following:

(i) Issue a written determination of whether an

individual is subject to subsection (a) upon the written

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request of the individual or the individual's employer or

potential employer.

(ii) Transmit to the board for posting on the

board's publicly accessible Internet website and to the

Legislative Reference Bureau for publication in the

Pennsylvania Bulletin and post the commission's publicly

accessible Internet website a list of all positions

within the department, the Department of Agriculture, the

Office of Attorney General and the Pennsylvania State

Police whose duties would subject the individual applying

for or holding the positions to subsection (a).

(2) The department, the Department of Agriculture, the

Department of Health, the Office of Attorney General and the

Pennsylvania State Police shall each assist the State Ethics

Commission in the development of the list under paragraph (1)

(ii). Upon request by the State Ethics Commission, members

and employees of the Pennsylvania State Police and employees

of the department, the Department of Agriculture, the

Department of Health and the Office of Attorney General shall

have a duty to provide the State Ethics Commission with

adequate information to accurately develop and maintain the

list. The State Ethics Commission may impose a civil penalty

under 65 Pa.C.S. § 1109(f) (relating to penalties) upon an

individual who fails to cooperate with the State Ethics

Commission under this paragraph.

(3) An individual who relies in good faith on a

determination made by the State Ethics Commission under

paragraph (1)(i) shall not be subject to any penalty for an

action taken if all material facts stated in the request for

the determination are correct.

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(4) An individual who relies in good faith on the list

published under paragraph (1)(ii) shall not be subject to any

penalty for a violation of subsection (a).

Section 908. Investigation and enforcement.

(a) Establishment.--The Bureau of Cannabis Investigations

and Enforcement is established within the board as an

independent bureau in prosecutorial matters related to

enforcement of this act.

(b) Powers and duties of bureau.--The bureau shall have the

following powers and duties:

(1) Enforce this act.

(2) Investigate and review all applicants and

applications for a license, permit or other authorization to

engage in a regulated activity under this act. The following

apply:

(i) The bureau shall be prohibited from disclosing

any portion of a background investigation report to a

member or employee of the board or to any other person or

Commonwealth agency prior to the submission of the

bureau's complete and final background investigation

report relating to the applicant's suitability to the

board.

(ii) The Office of Enforcement Counsel, on behalf of

the bureau, shall prepare the final background

investigation report for inclusion in the final report

relating to an applicant's suitability for a license,

permit or other authorization to engage in a regulated

activity under this act.

(3) Investigate an applicant, licensee, permittee and

other person applying for or granted authorization to engage

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in a regulated activity under this act for noncriminal

violations of this act or regulations of the board, including

actual or suspected violations referred to the bureau by the

board or other persons.

(4) Monitor the operations of a cannabis entity

licensee, permittee and other person authorized to engage in

a regulated activity under this act to ensure:

(i) Compliance with this act and regulations of the

board and with other laws and regulations of this

Commonwealth.

(ii) The implementation of adequate security and

surveillance measures by a cannabis entity licensee,

permittee and other person engaged in a regulated

activity under this act.

(5) Conduct inspections of a cannabis establishment,

cannabis testing laboratory and any other building, facility

or establishment used or proposed to be used to engage in a

regulated activity under this act. Inspections may include

the review and reproduction of any books, documents or

records required to be maintained by a licensee, permittee

and other person authorized to engage in a regulated activity

under this act.

(6) Conduct a review of a cannabis entity licensee,

permittee or other person authorized to engage in a regulated

activity under this act as necessary to ensure compliance

with this act. A review may include an examination of

accounting, administrative and financial records, management

control systems, procedures and other records utilized by a

cannabis entity licensee, permittee or other person.

(7) Refer possible criminal violations to the

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Pennsylvania State Police. The bureau shall not have the

power of arrest.

(8) Cooperate in the investigation and prosecution of

criminal violations related to this act.

(9) For the purpose of receiving criminal history record

information, be a criminal justice agency under 18 Pa.C.S.

Ch. 91 (relating to criminal history record information).

adopt regulations necessary to ensure that the bureau operates

as a distinct entity and prevent commingling of the

investigatory and prosecutorial functions of the bureau and the

adjudicatory functions of the board. Regulations and procedures

promulgated or adopted under this section shall do all of the

following:

(1) Provide that neither the executive director nor the

chief counsel of the board shall direct or limit the scope of

a background investigation conducted by the bureau.

(2) Incorporate section 303(c) and any other applicable

provisions of section 303.

(d) Office of Enforcement Counsel.--The following apply:

(1) The Office of Enforcement Counsel is established

within the bureau to serve as the prosecutor in all

noncriminal enforcement actions initiated by the bureau under

this act. The Office of Enforcement Counsel shall:

(i) Advise the bureau on all matters related to:

(A) The approval of applications for a license,

permit or other authorization to engage in a

regulated activity under this act.

(B) The conduct of background investigations.

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cannabis entity licensees, permittees and other

persons authorized to engage in a regulated activity

under this act.

(D) The investigation of potential violations of

this act or regulations of the board.

(ii) On behalf of the bureau, file recommendations

and objections relating to the issuance of licenses,

permits and other authorizations issued by the board to

engage in a regulated activity under this act.

(iii) Initiate, at its sole discretion, proceedings

for noncriminal violations of this act by filing a

complaint or other pleading with the board.

(2) The board shall appoint a person to serve as the

director of the Office of Enforcement Counsel who shall be an

attorney admitted to practice before the Pennsylvania Supreme

Court. The director of the Office of Enforcement Counsel

shall report to the executive director of the board.

(3) If it becomes necessary for the chief counsel or a

member to become involved on behalf of the board in an

enforcement proceeding, the chief counsel or the member shall

be prohibited from participating in the adjudication of that

matter and shall designate an appropriate employee or

employees of the board to exercise adjudicatory functions.

(e) Powers and duties of Pennsylvania State Police.--The

Pennsylvania State Police shall have the following powers and

duties:

(1) To promptly conduct background investigations on

persons as requested by the board under section 304. If

determined necessary to facilitate the conduct of background

investigations, the Pennsylvania State Police may contract

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with other law enforcement annuitants to assist in the

conduct of background investigations under this paragraph.

(2) Conduct background investigations of individuals

selected by the board to be employed in the following

positions and promptly submit the records of the background

investigations to the board:

(i) Executive director.

(ii) Chief counsel.

(iii) Director of the Office of Enforcement Counsel.

(iv) Director of the bureau.

(v) Director of the office.

(3) Initiate proceedings for criminal violations of this

act.

(4) Provide the board with information on the

particulars of all proceedings involving the enforcement of

criminal violations of this act.

(5) Enforce the criminal provisions of this act,

including, but not limited to, suspected criminal violations

within a cannabis establishment or a parking lot under the

control of a cannabis entity licensee, permittee or other

person authorized to engage in a regulated activity under

this act.

(6) Fingerprint an applicant for a license, permit or

other authorization or who is authorized to engage in a

regulated activity under this act.

(7) Exchange fingerprint data with and receive national

criminal history record information from the Federal Bureau

of Investigation for use in reviewing applications for a

license, permit or other authorization to engage in a

regulated activity under this act.

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(8) Receive information and take appropriate action on a

referral from the bureau relating to actual or alleged

criminal conduct.

(9) Require the production of any information,

documents, records, material and other data from an

applicant, licensee, permittee or other person seeking

approval from the board to engage in a regulated activity

under this act.

(f) Initiation of criminal action.--The following apply:

(1) The district attorneys of the several counties shall

have authority to investigate and institute criminal

proceedings for a violation of this act.

(2) In addition to the authority conferred upon the

Attorney General under the act of October 15, 1980 (P.L.950,

No.164), known as the Commonwealth Attorneys Act, the

Attorney General shall have the authority to investigate and,

following consultation with the appropriate district

attorney, institute criminal proceedings for a violation of

this act. A person charged with a violation of this act by

the Attorney General shall not have standing to challenge the

authority of the Attorney General to investigate or prosecute

the case, and, if a challenge is made, the challenge shall be

dismissed and no relief shall be available in the courts of

this Commonwealth to the person making the challenge.

(3) Nothing in this section shall be construed to limit

the existing regulatory or investigative authority of a

Commonwealth agency whose functions relate to persons or

matters within the scope of this act.

(g) Inspection and seizure.--The following apply:

(1) The bureau, the department and the Department of

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Agriculture, upon the request of the board, with or without

notice, may do all of the following:

(i) Enter, inspect and examine all cannabis

establishments' enclosed, locked facilities or areas and

other premises of a cannabis entity licensee where

cannabis and cannabis products are cultivated or grown,

processed, produced, tested, transported, distributed,

stored, sold or offered for sale and where records,

books, documents or other materials related to regulated

activities authorized under this act are prepared, kept

or maintained.

(ii) Inspect all devices, equipment, including

point-of-sale systems, transaction scan devices, weights

and measures, computers, including computer hardware and

software and associated electronic equipment, and other

equipment, devices, materials, and supplies, in, about,

upon or around the cannabis establishment or other

premises under subparagraph (i).

(iii) Seize and summarily remove and impound devices

and equipment, including point-of-sale systems,

transaction scan devices, weights and measures,

computers, including computer hardware and software and

associated electronic equipment and other equipment,

devices, materials and supplies, from cannabis

establishments and premises under subparagraph (i) for

the purpose of examination and inspection.

(iv) Inspect, examine and audit all books, records,

materials and documents pertaining to the regulated

activities authorized under this act which are maintained

by cannabis entity licensees, permittees and other

20210HB2050PN2333 - 303 -

persons authorized to engage in a regulated activity

under this act.

(v) Seize, impound or assume physical control of any

book, record, material, document, supply, device and

equipment, including point-of-sale systems, transaction

scan devices, weights and measures, computers, including

computer hardware and software, and associated electronic

equipment, on the premises of a cannabis establishment or

other premises referred to in subparagraph (i).

(2) An enclosed, locked facility or area on the premises

of a cannabis establishment that is used for the cultivation,

processing, producing, storage, testing, distribution,

transportation, sale or offering for sale of cannabis or

cannabis products shall be subject to random inspections by

the board or the bureau or an employee or agent of the board

or the bureau.

(3) Nothing in this section shall be construed to give

the board or the bureau the right of inspection or access to

any location, including any building or other structure, on

the premises of a cannabis establishment that is not used or

intended to be used by the cannabis entity licensee,

permittee or other person to engage in a regulated activity

under this act.

(4) Paragraph (1) shall not be deemed to limit

warrantless inspections except in accordance with

constitutional requirements or the authority of the Attorney

General in matters related to the regulation of cannabis

under this act.

(5) To further effectuate the purposes of this act, the

bureau may obtain administrative warrants for the inspection

20210HB2050PN2333 - 304 -

and seizure of property possessed, controlled, bailed or

otherwise held by a licensee, permittee or other person

authorized to engage in a regulated activity under this act

or an intermediary, subsidiary, affiliate or holding company.

(6) The board may request the assistance of the

Department of Health and the Department of Agriculture in

conducting inspections under this subsection.

(h) Information sharing and enforcement referral.--With

respect to the administration, supervision and enforcement of

this act, the bureau, the department, the Department of

Agriculture, the Office of Attorney General or the Pennsylvania

State Police may obtain or provide pertinent information

regarding applicants, licensees, permittees or other persons

engaged in or seeking authorization to engage in a regulated

activity under this act from or to law enforcement entities or

regulators of cannabis for adult use in other states or

jurisdictions, domestic or foreign, and may transmit information

received to, from and between each state or jurisdiction

electronically.

(i) Involvement in proceedings; disqualification.--In the

event that the chief counsel or a member of the board becomes

involved, on behalf of the board, in an enforcement proceeding,

the chief counsel or member, as the case may be, shall be

prohibited from participating in the adjudication of the matter.

The board shall designate an appropriate individual as necessary

to exercise adjudicatory functions.

(j) Agency agreements.--As provided under section 305(b)(27)

and to facilitate the purposes of this act, the board shall

collaborate with the Department of Agriculture, the Department

of Health, the Attorney General, the Pennsylvania State Police

20210HB2050PN2333 - 305 -

and any other Commonwealth agency as determined necessary and

appropriate by the board to develop guidelines to govern the

content and scope of a memoranda of understanding or agreement

entered into between the board, the Department of Agriculture,

the Department of Health, the Attorney General, the Pennsylvania

State Police and any other Commonwealth agency. The guidelines

shall include policy statements, procedures or processes to

guide the role and jurisdiction of the board, the Department of

Agriculture, the Department of Health, the Attorney General, the

Pennsylvania State Police and any other Commonwealth agency over

an investigation, enforcement action, proceeding or any other

matter related to investigation and enforcement which may be

initiated under this act and may be subject to the regulatory

jurisdiction of one or more of the departments or Commonwealth

agencies specified under this section.

Section 909. Additional authority and Office of Enforcement

Counsel.

(a) General rule.--The director of the Office of Enforcement

Counsel may petition a court of record having jurisdiction over

information in the possession of an agency in this Commonwealth

or, if there is no court of record, petition the Commonwealth

Court for authorization to review or obtain information in the

possession of an agency in this Commonwealth by averring

specific facts demonstrating that the agency has in the agency's

possession information material to a pending investigation or

inquiry being conducted by the bureau under this act and that

disclosure or release is in the best interest of the

Commonwealth. The petition shall request that the court enter a

rule or order directing the agency to show cause why the agency

should not be required to disclose to the bureau, or identified

20210HB2050PN2333 - 306 -

employees or agents of the bureau, information in the agency's

possession about any pending matter under the jurisdiction of

the bureau under this act. If a respondent is a local agency, a

copy of a rule or ordered issued under this section shall be

provided to the district attorney of the county in which the

local agency is located and the Office of Attorney General. Upon

request of a local agency, the district attorney or the Attorney

General may elect to enter an appearance to represent the local

agency in the proceedings.

(b) Procedure.--The filing of a petition under this section

and related proceedings shall be in accordance with court rule,

including issuance as of course. A party to the proceeding shall

not disclose the filing of a petition or answer or the receipt,

content or disposition of a rule or order issued under this

section without leave of court. A party to the proceedings may

request that the record be sealed and proceedings be closed. The

court shall grant the request if the court finds that granting

the request is in the best interest of a person or the

Commonwealth.

(1) Following review of the record, the court shall

grant the relief sought by the director of the Office of

Enforcement Counsel, if the court determines that:

(i) The agency possesses information material to the

investigation or inquiry.

(ii) Disclosure or release of the information is in

the best interest of the Commonwealth or any person.

(iii) Disclosure or release of the information is

not otherwise prohibited by statute or regulation.

(iv) Disclosure or release of the information would

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not inhibit the agency possessing the information from

the performance of the agency's duties.

(2) If the court determines as provided under paragraph

(1), the court shall enter an order authorizing and directing

the information be made available for review in camera.

(d) Release of materials or information.--If, after an in

camera review by the court, the director of the Office of

Enforcement Counsel seeks to obtain copies of materials in the

agency's possession, the court may, if not otherwise prohibited

by statute or regulation, enter a rule or order directing that

the requested materials be provided. An order authorizing the

release of materials or other information in the possession of

an agency shall contain directions regarding the safekeeping and

use of the materials or other information sufficient to satisfy

the court that the materials or information will be sufficiently

safeguarded. In making the determination, the court shall

consider the input of the agency in possession of the

information and any input from the applicable agency with which

the information originated concerning any pending investigation

or ongoing matter and the safety of persons and property.

(e) Modification of order.--If subsequent investigation or

inquiry by the bureau warrants modification of an order entered

under this section, the director of the Office of Enforcement

Counsel may petition the court of jurisdiction to request the

modification. Upon request, the court may modify the order at

any time and in any manner the court deems necessary and

appropriate. The agency named in the original petition shall be

given notice and an opportunity to be heard.

(f) Use of information or materials.--A person that, by any

means authorized by this section, obtained knowledge of

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information or materials solely under this section may use the

information or materials in a manner consistent with directions

imposed by the court and appropriate to the proper performance

of the person's official duties under this act.

(g) Violation.--In addition to any remedies and penalties

provided in this act, a violation of this section may be

punishable as contempt of the court.

(h) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Agency." A local agency and a Commonwealth agency.

"Local agency." An intergovernmental authority, regional

authority, municipal authority, council, board, commission,

bureau, office or similar instrumentality or body of a

municipality.

Section 910. Prohibited acts and penalties.

(a) Criminal offenses.--The following apply:

(1) The provisions of 18 Pa.C.S. § 4902 (relating to

perjury), 4903 (relating to false swearing) or 4904 (relating

to unsworn falsification to authorities) shall apply to a

person providing information or making a statement, whether

written or oral, to the board, the bureau, the department,

the Pennsylvania State Police or the Office of Attorney

General as may be required under this act.

(2) It shall be unlawful for a person to willfully:

(i) fail to report, pay or truthfully account for

and pay over a license fee, permit fee, authorization

fee, tax or assessment imposed under this act or by

regulation of the board; or

(ii) attempt in any manner to evade or defeat a

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license fee, authorization fee, permit fee, tax or

assessment or other fee imposed under this act or by

regulation of the board.

(3) It shall be unlawful for a cannabis entity licensee,

permittee or other person authorized to engage in a regulated

activity under this act to permit the cultivation,

processing, packaging, repackaging, handling, delivery,

transporting, distribution, storing, testing, sale or

offering for sale of cannabis or cannabis products on or from

the premises of the cannabis entity's, permittee's or other

person's cannabis establishment or cannabis testing

laboratory by a person other than a person licensed,

permitted or otherwise authorized to engage in a regulated

activity under this act.

(4) It shall be unlawful for a person to engage in a

regulated activity authorized under this act without first

obtaining a license, permit or other authorization to engage

in a regulated activity under this act from the board.

(5) It shall be unlawful for a cannabis retailer

licensee to sell or offer for sale cannabis or a cannabis

product to an individual under 21 years of age or to allow an

individual to enter the cannabis retailer licensee's cannabis

establishment without first verifying the age and identity of

the individual.

(6) It shall be unlawful for an individual under 21

years of age to purchase or attempt to purchase cannabis or a

cannabis product.

(7) Except as provided in this act, it shall be unlawful

for a cannabis entity licensee, permittee or other authorized

person to engage in a regulated activity under this act after

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the person's license, permit or other authorization has

expired and prior to the actual renewal of the license.

(8) It shall be unlawful for a cannabis entity licensee

or other person to sell, offer for sale, represent or pass

off as lawful cannabis or a cannabis product which was not

cultivated, grown, processed or otherwise produced and tested

in this Commonwealth as provided under this act and

regulations of the board.

(9) It shall be unlawful for a person authorized to

engage in a regulated activity or any other person to divert

or attempt to divert cannabis or cannabis products, except

for research purposes, for any unlawful purpose.

(10) It shall be unlawful for an individual to work or

be employed by a cannabis entity licensee, permittee or other

person authorized to engage in a regulated activity under

this act in a position which would require the issuance of a

license, permit or other authorization under this act without

first obtaining the requisite license, permit or other

authorization.

(11) It shall be unlawful for a cannabis entity

licensee, permittee or other person authorized to engage in a

regulated activity under this act to employ or continue to

employ an individual in a position which requires a license,

permit or other authorization to engage in a regulated

activity under this act, if the individual:

(i) Does not hold a valid license, permit or other

authorization issued as provided under this act.

(ii) Is prohibited from accepting employment from a

cannabis entity licensee, permittee or other person

authorized to engage in a regulated activity under this

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act.

(12) It shall be unlawful for an individual under 21

years of age to enter and remain in any area of a cannabis

establishment, except that an individual 18 years of age or

older may be employed by a cannabis entity licensee or a

cannabis testing laboratory and the board. An individual 18

years of age or older who is employed by a regulatory agency

of the Commonwealth that is subject to any provision of this

act or who is an emergency responder, as that term is defined

in 35 Pa.C.S. § 7332 (relating to definitions), may enter and

remain in a cannabis establishment while engaged in the

performance of the individual's employment duties or duties

as an emergency responder.

(13) It shall be unlawful:

(i) To knowingly cultivate, process, distribute,

deliver, hold, sell or offer for sale cannabis or a

cannabis product that is adulterated or misbranded.

(ii) To adulterate or misbrand cannabis or a

cannabis product.

(iii) To knowingly receive in commerce cannabis or a

cannabis product which is adulterated or misbranded or to

deliver or offer for delivery cannabis or a cannabis

product which is adulterated or misbranded for pay or

otherwise.

(iv) To sell, deliver for sale, hold or offer for

sale cannabis or a cannabis product that contains a

poisonous or deleterious substance.

(v) To refuse to permit during normal business

hours, or randomly as provided under section 802, entry

to a cannabis establishment or cannabis testing

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laboratory for the purpose of inspection of or taking of

a sample of cannabis or a cannabis product or access to

or copying of books, record or other documents as

authorized under this act and regulations of the board.

(vi) To remove, dispose of or destroy cannabis or a

cannabis product in violation of this act.

(vii) To alternate, mutilate, destroy, obliterate or

remove, in whole or part, the labeling of cannabis or a

cannabis product or any other act with respect to

cannabis or a cannabis product, if the act is done while

the cannabis or cannabis product is held for sale and

results in the cannabis or cannabis product being

adulterated or misbranded.

(viii) To forge, counterfeit, simulate, falsely

represent or use without proper authority a label, tag or

identification device authorized or required by

regulation of the board under this act.

(ix) To use by a person to the person's own

advantage or reveal, other than to the board, the bureau

or the courts when relevant in a judicial proceeding

under this act, any information acquired under authority

of this act concerning a method, process or technology

which is proprietary information or confidential and

entitled to protection.

(x) To cultivate, process, store, package,

repackage, handle, transport, deliver, sell or offer for

sale cannabis or cannabis products in a manner which is

unsafe and poses a potential hazard to human health in

violation of this act or regulations promulgated by the

board under this act.

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(xi) To use words or phrases on a label, tag or

other identification marker affixed to a package

containing cannabis or a cannabis product that

incorrectly indicate or imply that the cannabis or

cannabis product contained in the package has received

the approval or the endorsement of the board, the

Commonwealth or an agency of the Commonwealth. A cannabis

entity licensee may not use a label, tag or other

identification marker on a label or package or otherwise

to indicate that the cannabis or cannabis product

contained in the package has been approved or endorsed by

the board, the Commonwealth or an agency of the

Commonwealth. Nothing in this subparagraph shall prohibit

a cannabis entity licensee from incorporating the phrase

"Cultivated in the Commonwealth of Pennsylvania," "Made

in Pennsylvania," "Cultivated in the Commonwealth of PA"

or a similar phrase on a label or package to indicate

that the cultivation, processing or production of the

cannabis or cannabis product occurred in this

Commonwealth.

(xii) For a cannabis transporter licensee, to fail

to make and maintain records showing the movement in

commerce of cannabis or cannabis products as required

under this act and regulations of the board.

(b) Criminal penalties and fines.--The following apply:

(1) A person that commits a first offense in violation

of 18 Pa.C.S. § 4902, 4903 or 4904 in connection with

providing information or making a statement, whether written

or oral, to the board, the bureau, the department, the

Pennsylvania State Police, the Office of Attorney General or

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a district attorney as required by this act commits an

offense to be graded in accordance with the applicable

section violated. A person that is convicted of a second or

subsequent violation of 18 Pa.C.S. § 4902, 4903 or 4904 in

connection with providing information or making a statement,

whether written or oral, to the board, the bureau, the

department, the Pennsylvania State Police, the Office of

Attorney General or a district attorney as required by this

act commits a felony of the second degree.

(2) A person that violates subsection (a)(2), (3), (4),

(7) or (10) commits a misdemeanor of the third degree. A

person that is convicted of a second or subsequent violation

of subsection (a)(2), (3), (4), (7) or (10) commits a

misdemeanor of the second degree. The following apply:

(i) For a first violation of subsection (a)(2), (3),

(4), (7) or (10), a person shall, upon conviction, be

sentenced to pay a fine of:

(A) not more than $10,000, if the person is an

individual;

(B) not less than $100,000 nor more than

$300,000 if the person is a cannabis entity licensee;

if the person is a cannabis testing laboratory or a

person, who is not an individual, authorized to

engage in a regulated activity under this act.

(ii) For a second or subsequent violation of

subsection (a)(2), (3), (4), (7) or (10), a person shall,

upon conviction, be sentenced to pay a fine of:

(A) not more than $15,000 if the person is an

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individual;

(B) not less than $500,000 nor more than

$750,000 if the person is a cannabis entity licensee;

$200,000 if the person is a cannabis testing

laboratory or a person, who is not an individual,

authorized to engage in a regulated activity under

this act.

(3) A cannabis entity licensee or other person that

violates subsection (a)(5), (8) or (11) commits a misdemeanor

offense and shall, upon conviction, be sentenced to pay a

fine of not less than $1,000 nor more than $5,000. A person

that is convicted of a second or subsequent violation of

subsection (a)(5), (8) or (11) commits a misdemeanor of the

second degree and shall, upon conviction, be sentenced to pay

a fine of not less than $5,000 nor more than $7,500.

(4) An individual who violates subsection (a)(6) commits

a summary offense. The following shall apply:

(i) For a first violation of subsection (a)(6), the

individual, upon conviction, shall be sentenced to pay a

fine of not less than $100.

(ii) For a second or subsequent violation of

subsection (a)(6), the individual, upon conviction, shall

be sentenced to pay a fine of not less than $300 nor more

than $500.

(iii) A summary offense under this paragraph shall

not be a criminal offense of record, shall not be

reportable as a criminal act and shall not be placed in

the criminal record of the offending individual, if any

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such record exists.

(iv) When an individual is charged with a second or

subsequent violation of subsection (a)(6), the court may

admit the offender to an adjudication alternative as

authorized under 42 Pa.C.S. § 1520 (relating to

adjudication alternative program) in lieu of or in

addition to the imposition of a fine.

(5) A cannabis entity licensee, person authorized to

engage in a regulated activity or any other person who

violates subsection (a)(9) commits a misdemeanor of the first

degree. A second or subsequent violation of subsection (a)(9)

constitutes a felony offense. The following shall apply:

(i) For a first violation of subsection (a)(9), the

cannabis entity licensee, person authorized to engage in

a regulated activity or other person shall, upon

conviction, be sentenced to pay a fine of not less than

$50,000 nor more than $100,000 or to a term of

imprisonment not to exceed five years, or both.

(ii) For a second or subsequent conviction, the

cannabis entity licensee, person authorized to engage in

a regulated activity or other person shall, upon

conviction, be sentenced to pay a fine of not less than

$150,000 nor more than $300,000 or to a term of

imprisonment not to exceed seven years, or both.

(6) A cannabis entity licensee or other person

authorized to engage in a regulated activity under this act

that commits a first violation of subsection (a)(12) commits

a misdemeanor and, upon conviction, shall be sentenced to pay

a fine of not less than $10,000. A second or subsequent

violation of subsection (a)(12) constitutes a misdemeanor of

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the second degree and, upon conviction, the person shall be

sentenced to pay a fine of not less than $15,000 nor more

than $20,000.

other remedy available at law or in equity for a violation of

this act or a rule or regulation adopted or any order issued by

the board under this act, the board may assess a civil penalty

not to exceed $50,000 upon a cannabis entity licensee, permittee

or other person authorized to engage in a regulated activity

under this act for each offense. The following apply:

(1) No civil penalty shall be assessed unless the person

charged has been given notice and an opportunity for a

hearing.

(2) In determining the amount of the penalty, the board

shall consider the gravity of the violation.

(3) If the board finds a violation which did not cause

harm to human health or public safety, the board may issue a

warning in lieu of assessing a penalty.

(4) In case of inability to collect the civil penalty or

failure of a person to pay all or any portion of the penalty

as the board may determine, the board may refer the matter to

the Attorney General, who shall recover the amount by action

in the appropriate court.

Section 911. Administrative sanctions.

(a) Authority to impose administrative sanctions.--The

following apply:

(1) In addition to any other penalty authorized by law

or under this act, the board may impose without limitation

the following sanctions upon a licensee, permittee or other

person authorized to engage in a regulated activity under

20210HB2050PN2333 - 318 -

this act:

(i) Suspend, revoke or refuse to renew the license,

permit or other authorization to engage in a regulated

activity under this act of a person convicted of a

criminal offense under this act or other law which would

otherwise disqualify the person from holding the license,

permit or other authorization.

(ii) Revoke the license, permit or other

authorization to engage in a regulated activity under

this act of a person determined to have violated this act

or regulations promulgated by the board under this act

which would otherwise disqualify the person from holding

the license, permit or other authorization.

(iii) Revoke the license, permit or other

authorization to engage in a regulated activity under

this act of a person for willfully and knowingly

violating or attempting to violate an order of the board

directed to the person.

(iv) Suspend the license, permit or other

authorization of a person pending the outcome of a

hearing in a case in which the revocation of a license,

permit or authorization to engage in a regulated activity

under this act could result.

(v) Suspend the license of a cannabis entity

licensee for violating or attempting to violate this act

or regulations promulgated under this act relating to the

operation of the cannabis entity licensee's cannabis

establishment.

(vi) Order restitution of money or property

unlawfully obtained or retained by a licensee, permittee

20210HB2050PN2333 - 319 -

or other person authorized to engage in a regulated

activity under this act.

(vii) Enter a cease and desist order that specifies

the conduct that must be discontinued, altered or

implemented by the licensee, permittee or other person

authorized to engage in a regulated activity under this

act.

(viii) Issue a letter of reprimand or censure, which

shall be made a permanent part of the file of the

licensee, permittee or other person sanctioned.

(ix) Assess administrative fines for a violation of

this act or a regulation promulgated under this act,

which shall not exceed:

(A) Fifty thousand dollars for each violation of

this act or a regulation promulgated by the board

under this act by a cannabis cultivator licensee or

cannabis processor licensee or an employee or agent

of the cannabis cultivator licensee or cannabis

processor licensee.

(B) Twenty thousand dollars for each violation

of this act or a regulation promulgated by the board

under this act by a cannabis retailer licensee or an

employee or agent of a cannabis retailer licensee.

of this act or a regulation promulgated by the board

under this act by a cannabis transporter licensee or

an employee or agent of a cannabis transporter

licensee.

(D) Ten thousand dollars for each violation of

this act or a regulation promulgated by the board

20210HB2050PN2333 - 320 -

under this act by a person that holds a permit to

operate a cannabis testing laboratory or by an

employee or agent of the person.

(E) Ten thousand dollars for each violation of

this act or a regulation promulgated by the board

under this act by a person authorized by the board to

engage in a regulated activity under this act.

(2) If the board suspends, revokes or refuses to renew a

license, permit or other authorization to engage in a

regulated activity under this act or assesses a fine or civil

penalty, orders restitution, enters a cease and desist order

or issues a letter of reprimand or censure, the board shall

provide the licensee, permittee or other person with written

notification of the decision, including a statement of the

reasons for the decision, by certified mail within five

business days of the decision of the board. The licensee,

permittee or other person shall have the right to appeal the

decision under 2 Pa.C.S. Chs. 5 Subch. A (relating to

practice and procedure of Commonwealth agencies) and 7 Subch.

A (relating to judicial review of Commonwealth agency

action).

(3) In addition to a fine imposed under paragraph (1)

(ix) or any other fine or penalty that the board may impose

under this act or regulations promulgated under this act, if

a person violates section 910(a)(2), the board shall impose

an administrative penalty of three times the amount of the

license fee, permit fee, authorization fee, tax or any other

assessment which is evaded and not paid, collected or paid

over. This subsection shall be subject to 2 Pa.C.S. Chs. 5

Subch. A and 7 Subch. A.

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(b) Aiding and abetting.--A person that aids, abets,

counsels, commands, induces, procures or causes another person

to violate this act shall be subject to all sanctions and

penalties, both civil and criminal, provided under this act.

determined to be an offense of a continuing nature shall be

deemed to be a separate offense on each event or day during

which the violation occurs. Nothing in this section shall be

construed to preclude the commission of multiple violations of

this act in any one day that establish offenses consisting of

separate and distinct acts or violations of this act or

regulations promulgated under this act.

(d) Property subject to seizure, confiscation, destruction

or forfeiture.--Any equipment, device or apparatus, including a

point-of-sale system, transaction scan device, weight or

measure, computer, including computer hardware, software and

associated equipment, supplies, material, cannabis proceeds or

substituted proceeds, money or real or personal property used,

obtained or received or any attempt to use, obtain or receive

any equipment, device or apparatus, supplies, material, cannabis

proceeds or substituted proceeds, money or real or personal

property in violation of this act shall be subject to 42 Pa.C.S.

§§ 5803 (relating to asset forfeiture), 5805 (relating to

forfeiture procedure), 5806 (relating to motion for return of

property), 5807 (relating to restrictions on use), 5807.1

(relating to prohibition on adoptive seizures) and 5808

(relating to exceptions).

(e) Sanctions.--The following apply:

(1) In considering appropriate administrative sanctions

against a person for a violation of this act, the board shall

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consider all of the following:

(i) The risk to the public and to the integrity of

this Commonwealth's commercial cannabis industry created

by the conduct of the person.

(ii) The seriousness of the conduct of the person

and whether the conduct was purposeful and with knowledge

that the conduct was in contravention of this act or

regulations promulgated by the board under this act.

(iii) Any justification or excuse for the conduct by

the person.

(iv) The prior history of the particular licensee,

permittee or other person authorized to engage in a

regulated activity under this act involved with respect

to the regulated activity, which resulted in the

sanction.

(v) The corrective action taken by the cannabis

entity licensee, permittee or other person authorized to

engage in a regulated activity under this act to prevent

future misconduct of the same or a similar nature from

reoccurring.

(vi) In the case of a monetary penalty, the amount

of the penalty in relation to the severity of the

misconduct and the financial means of the licensee,

permittee or other person authorized to engage in a

regulated activity to pay the penalty. The board may

impose a schedule or terms of payment of the penalty as

the board may deem appropriate.

(2) It shall not be a defense to disciplinary action

before the board that a person inadvertently, unintentionally

or unknowingly violated this act. The factors under paragraph

20210HB2050PN2333 - 323 -

(1) shall only extend to the degree of the penalty to be

imposed by the board and not to a finding of a violation.

(f) Regulations.--The board shall promulgate regulations to

effectuate the purposes of this section.

Section 912. General immunities and presumptions.

(a) General rule.--Notwithstanding any other provision of

law or regulation to the contrary and except as provided in this

act or regulation of the board adopted and promulgated under

this act, in matters related to the regulation of cannabis under

this act, the following apply:

(1) A cannabis entity licensee, permittee or other

person authorized to engage in a regulated activity under

this act shall not be subject to any of the following for

engaging in a regulated activity under this act and any rules

or regulations promulgated under this act related to the

acquisition, possessing, cultivation, processing,

distribution, storage, delivery, testing, transfer,

transport, supply, sale or offering for sale of cannabis,

cannabis products or cannabis paraphernalia:

(i) Prosecution.

(ii) Search, seizure or inspection, except by the

board, the Department of Agriculture, the Department of

Health, the Pennsylvania State Police or local law

enforcement as provided under this act.

(iii) Penalty in any manner, including, but not

limited to, civil penalty.

(iv) Denial of any right or privilege.

(v) Except as provided in section 911,

administrative sanction or disciplinary action by a

licensing board of the Commonwealth or any other

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Commonwealth agency.

(2) An agent, employee or other person employed or

contracted by a cannabis entity licensee shall not be subject

to any of the following for working for or contracting with a

cannabis retailer licensee as provided under this act and any

rules or regulations promulgated by the board under this act:

(i) Prosecution.

(ii) Search.

(iii) Except as provided in this act, a penalty in

any manner, including, but not limited to, civil penalty.

(iv) Denial or any right or privilege.

(v) Disciplinary action by a licensing board of the

Commonwealth or any other Commonwealth agency.

(b) Seizures and forfeitures and personal use.--

Notwithstanding any other provision of law or regulation, any

cannabis, cannabis product, cannabis paraphernalia, legal

property or interest in legal property that is owned, leased,

possessed or otherwise utilized in connection with the use of

cannabis or a cannabis product as authorized under this act, or

acts incidental to that utilization or use, may not be seized or

forfeited. Nothing in this subsection shall be construed to

prevent the seizure or forfeiture of cannabis or a cannabis

product exceeding the amounts authorized under this act or to

prevent seizure or forfeiture if the basis for the seizure or

forfeiture is unrelated to the cannabis or cannabis product that

is possessed, transferred, transported or used as provided under

this act.

preclude the Pennsylvania State Police or a local law

enforcement agency from searching a cannabis establishment

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operated by a cannabis entity licensee, if there is probable

cause to believe that the criminal laws of this Commonwealth

have been violated and the search is conducted in conformity

with the Constitution of the United States, the Constitution of

Pennsylvania and other applicable law or regulation.

(d) Authority of other State agencies.--Nothing in this act

shall preclude the bureau, the department, the Department of

Agriculture, the Department of Health, the Attorney General or

any other authorized Commonwealth agency from investigating or

bringing a civil action against a cannabis entity, licensee,

permittee or other person authorized to engage in a regulated

activity under this act or an agent or employee of the entity,

licensee, permittee or other person, for a violation of a law of

this Commonwealth, including, but not limited to, civil rights

violations, tax evasion or tax fraud and violations of

environmental laws or regulations and consumer protection laws.

Section 913. Adoption of State standards and requirements.

(a) Minimum standards.--The standards, requirements and

rules and regulations related to agricultural products and crop

production, health and safety, environmental protection,

testing, security, food safety and worker protections

promulgated under the laws of this Commonwealth as they relate

to the regulation of cannabis and cannabis products shall be the

Statewide minimum standards for all cannabis entity licensees,

permittees and other persons authorized to engage in a regulated

activity under this act, where applicable.

(b) Sanctions and disciplinary actions.--In addition to any

other violations of this act, the willful or knowing violation

of any law of this Commonwealth or local law, ordinance or rule

conferring worker protections or legal rights on employees of a

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cannabis entity licensee, permittee or other person authorized

to engage in a regulated activity under this act may be grounds

for sanction or disciplinary action under this act.

CHAPTER 10

FEES AND TAXES

Section 1001. Cannabis cultivator and processor privilege tax.

(a) Imposition of tax.--The following apply:

(1) Beginning on a date occurring after the commencement

of the cultivation and processing of cannabis and cannabis

products in this Commonwealth, as determined by the board in

consultation with the department, or January 1, 2022,

whichever is earlier, a tax is imposed upon the privilege of

cultivating cannabis and processing cannabis products in this

Commonwealth at the rate of 7% of the gross receipts from the

first sale of cannabis by a cannabis cultivator and the first

sale of cannabis products by a cannabis processor.

(2) The sale of cannabis or a cannabis product by a

cannabis cultivator or cannabis processor that contains any

amount of cannabis or a derivative of cannabis shall be

subject to the tax imposed under this subsection on the full

selling purchase price of the cannabis.

(3) The department may determine the selling price of

the cannabis when the seller and purchaser are affiliated

persons or when the sale and purchase of the cannabis or

cannabis product is not an arm's length transaction.

(4) The value of the cannabis or cannabis product, as

determined by the department, shall be commensurate with the

actual price received for cannabis or a cannabis product of

like quality, character and use in the area. If there are no

previous sales of the cannabis or cannabis products of like

20210HB2050PN2333 - 327 -

quality, character and use in the same area, the department

shall establish a reasonable value based on sales of cannabis

or cannabis products of like quality, character and use in

other areas of this Commonwealth or in other states or

jurisdictions, taking into consideration any other relevant

factors that may affect value.

(b) Responsibility of imposition.--The tax imposed under

this section shall be the sole responsibility of the cannabis

cultivator licensee and the cannabis processor licensee and

shall not be the responsibility of a subsequent purchaser,

including a cannabis processor licensee, cannabis retailer

licensee, cannabis microbusiness licensee or cannabis

transporter licensee. Nothing in this section shall preclude a

cannabis cultivator licensee or cannabis processor licensee from

imposing a surcharge on the sale of cannabis or a cannabis

product to a purchaser. The surcharge shall be separately listed

as an additional charge on the invoice and receipt or other form

given to the purchaser confirming the details of the sales

transaction.

this section shall be in addition to any other occupation,

privilege or excise tax imposed by the Commonwealth or a

municipality.

(d) Rights and privileges.--In the administration of and

compliance with this section, the department and a person

subject to this section shall:

(1) have the same rights, remedies, privileges,

immunities, powers and duties;

(2) be subject to the same conditions, restrictions,

limitations, penalties and definitions of terms; and

20210HB2050PN2333 - 328 -

(3) employ and be subject to the same modes of Article

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

Tax Reform Code of 1971, as if those provisions were

specified in this section.

(e) Other taxes imposed.--The tax imposed under this section

shall be in addition to any other tax imposed under this

chapter.

(f) Deposit of proceeds.--All money collected by the

department from the tax imposed under subsection (a) shall be

deposited into the Cannabis Revenue Fund.

Section 1002. Cannabis excise tax.

(a) Imposition of tax.--Beginning on the date on which the

retail sale of cannabis and cannabis products for personal use

commences in this Commonwealth, an excise tax is imposed and

assessed upon the sale or possession of cannabis and cannabis

products within this Commonwealth at the rate of 13% of the

purchase price of each retail sale of cannabis and cannabis

products. The tax imposed under this section shall:

(1) Be separate and in addition to the tax imposed under

section 202 of the act of March 4, 1971 (P.L.6, No.2), known

as the Tax Reform Code of 1971, which applies to the retail

sales of tangible personal property.

(2) Not be part of the total retail price of cannabis or

a cannabis product to which the sales and use tax or any

local sales and use tax generally apply. The tax must be

itemized separately on the sales receipt provided to the

cannabis consumer.

(3) Be reflected in the retail price list or quoted

shelf price in the cannabis retailer's cannabis establishment

and in advertising that includes prices for cannabis and

20210HB2050PN2333 - 329 -

cannabis products.

(b) Subject of tax.--The purchase of cannabis or a cannabis

product that contains any amount of cannabis or any derivative

of cannabis is subject to the tax under subsection (a) on the

full purchase price of the cannabis or cannabis product. The tax

imposed under subsection (a) may not be imposed on a purchase of

cannabis or a cannabis product which:

(1) Is medical marijuana and subject to taxation under

the Medical Marijuana Act.

(2) Is a transaction in interstate commerce, to the

extent the transaction may not, under Federal and State law,

be made the subject of taxation by this Commonwealth.

to the tax imposed under subsection (a), there is imposed a tax

on the sale or transfer of cannabis and cannabis products by a

cannabis cultivator licensee, cannabis processor licensee or

other person authorized to engaged in a regulated activity under

this act to a cannabis retailer licensee at the rate of 1% of

the amount charged by the cannabis cultivator licensee, cannabis

processor licensee or other person for the cannabis and cannabis

products, which shall accrue at the point-of-sale or at the time

of transfer. The tax imposed under this subsection shall be held

in trust for and on account of a city having a population of

1,000,000 or more, or a county, other than a county wholly

within the city, in which the cannabis retailer licensee's

cannabis establishment is located.

(d) Imposition and other municipalities.--In addition to the

taxes imposed under subsections (a) and (c), there is imposed a

tax on the sale or transfer of cannabis and cannabis products by

a cannabis cultivator licensee, cannabis processor licensee or

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other person authorized to engaged in a regulated activity under

this act to a cannabis retailer licensee at the rate of 3% of

the amount charged by the cannabis cultivator licensee, cannabis

processor licensee or other person for the cannabis or cannabis

products, which shall accrue at the point-of-sale or at the time

of sale or transfer. The tax imposed under this subsection shall

be held in trust for and on account of a city with a population

of less than 1,000,000, or a town, township or incorporated town

in which the cannabis retailer licensee's cannabis establishment

is located.

(e) Bundling of taxable and nontaxable items, prohibition

and taxation.--If a cannabis retailer licensee sells cannabis,

cannabis concentrate or cannabis products in combination or

bundled with items that are not subject to tax under this

chapter for one price in violation of section 614(b)(12)(xvii),

the tax imposed under this section shall be imposed on the

purchase price of the entire bundled product by the cannabis

retailer licensee.

(f) Collection of tax.--The following apply:

(1) The tax imposed under subsection (a) shall be

collected from the cannabis consumer by the cannabis retailer

licensee at the point-of-sale or transfer at the rate imposed

under subsection (a), with respect to cannabis or cannabis

products sold by the cannabis retailer to the cannabis

consumer, and shall be held in trust for and on account of

the Commonwealth and be remitted to the department in

accordance with the requirements for remitting sales tax

under the Tax Reform Code of 1971.

(2) The sale of cannabis or a cannabis product to a

purchaser or cannabis consumer who is not a holder of a valid

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identification card issued under the Medical Marijuana Act is

presumed subject to the tax imposed under this section.

(3) Cannabis retailers shall collect the tax from

purchasers or cannabis consumers by adding the tax to the

amount of the purchase price received from the purchaser or

cannabis consumer for selling cannabis or a cannabis product

to the purchaser or cannabis consumer. The tax, when

collected, shall be stated on the invoice, receipt or other

form given to the purchaser or cannabis consumer as a

distinct item that is separate and apart from the purchase

price of the cannabis or cannabis product subject to the

transaction.

(g) Other taxes imposed.--The tax imposed under this section

shall be in addition to all other occupation, privilege or

excise taxes imposed under this act or other taxes imposed by

the Commonwealth or a political subdivision of the Commonwealth.

(h) Burden of proof and liability.--The following apply:

(1) Except for medical marijuana, it shall be presumed

that all cannabis and cannabis products within this

Commonwealth are subject to taxation under this act. The

burden of proof that the tax imposed under subsections (a),

applicable cannabis entity license under this act.

(2) Every person holding a cannabis entity license under

this act who possesses cannabis and cannabis products upon

which the taxes imposed under this section have not been paid

shall be liable for the payment of the taxes. The failure of

the person to produce to the department or an authorized

representative of the department upon demand an invoice for

cannabis or cannabis products in the person's possession

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shall be presumptive evidence that the tax has not been paid

and that the person shall be liable for the payment of tax,

unless evidence of the invoice or payment is produced within

30 days of receipt of notice from the department or a

representative of the department demanding evidence of the

invoice or payment. The notice may be made electronically or

in any other manner as determined by the department.

(i) Administration and procedures.--The taxes imposed under

this section shall be administered in the manner provided under

Article II of the Tax Reform Code of 1971.

(j) Deposit of proceeds.--All money received from the tax

imposed under subsection (a) shall be deposited into the

Cannabis Revenue Fund.

(k) Information required by department.--A cannabis entity

licensee subject to the tax imposed under this section shall

provide the department with all documents, materials, books and

records and any other information required by the department

under Chapter VIII of Part VI of Article II of the Tax Reform

Code of 1971.

Section 1003. Registration required.

(a) Registration with department.--The following apply:

(1) Prior to the commencement of cannabis operations in

this Commonwealth, every holder of a valid cannabis entity

license under this act, including every person licensed as a

cannabis microbusiness or authorized to engage in a regulated

activity under this act, shall file an application for

registration with the department. An application for

registration and an application to renew a registration under

this section shall:

(i) Be filed electronically on a form prescribed by

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the department.

(ii) Be accompanied by a nonrefundable application

fee of $300.

(2) A certificate of registration shall not be

assignable or transferable and shall be destroyed immediately

upon the certificate holder leaving the position or

employment or becoming disqualified to hold the license,

permit or other authorization to engage in a regulated

activity under this act.

(b) Refusal to issue or revocation of certificate.--The

department may refuse to issue a certificate of registration to

an applicant and shall revoke the certificate of registration of

a person who does not possess a valid cannabis entity license,

permit or other authorization to engage in a regulated activity

under this act issued by the board. The department may refuse to

issue a certificate of registration to an applicant that:

(1) Is delinquent or has a past-due liability in the

payment of any tax owed to the Commonwealth.

(2) Has had a certificate of registration or a cannabis

entity license revoked within one year from the date on which

an application for a certificate of registration was filed

with the department.

(3) Has had a certificate of registration or a cannabis

entity license suspended where the suspension is in effect on

the date the application for a certificate of registration is

filed or ended less than one year from that date.

(4) Has been convicted of a disqualifying conviction

under section 601(e) within one year from the date on which

the application for a certificate of registration was filed

or on which the certificate was issued, as applicable.

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(5) Willfully fails to file a report or return required

under this section.

(6) Willfully files, causes to be filed, gives or causes

to be given a report, return, certificate or affidavit

required under this chapter or under the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971, which is

false.

(7) Willfully fails to collect or truthfully account for

or pay over a tax imposed under this chapter.

(1) A certificate of registration shall be valid for

three years from the date of issuance, unless earlier

suspended or revoked by the department.

(2) The department may, through regulation, extend the

term of a certificate of registration if the department

determines that a longer term is appropriate to facilitate

the purposes and intent of this act. The regulations shall

include the conditions consistent with the requirements of

this section, under which the terms of a certificate of

registration may be extended for a period of time beyond the

three-year period specified in this subsection.

(3) Upon the expiration of the term stated on a

certificate of registration, the certificate shall be null

and void unless renewed by the holder as provided under this

section.

(d) Required notifications.--The following apply:

(1) A holder of a certificate of registration issued

under this section must notify the department of any changes

relating to the status of the certificate holder's cannabis

entity license or authorization to engage in a regulated

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activity or to any of the information contained in the

application for registration on file with the department or

stated on the certificate of registration.

(2) Notification under paragraph (1) must be made on or

before the last day of the month in which a change occurs and

must be made electronically on a form prescribed by the

department.

(e) Renewal of certificate.--A certificate of registration

issued under this section shall be subject to renewal every

three years or at a time from the date of issuance as specified

by the department in regulation, if the term of a certificate of

registration is subject to a longer term under subsection (c)

(2). The application for renewal shall:

(1) Be submitted at least 180 days prior to the

expiration of the certificate of registration.

(2) Include an update of information contained in the

initial application and prior renewal applications.

(3) Include an application renewal fee, which shall be

calculated by the department to reflect the three-year

renewal period.

(4) Be subject to the same requirements and conditions

as an initial application, including grounds for refusal and

the payment of the application renewal fee.

(f) Penalties.--In addition to any other penalty provided in

this act, the following apply:

(1) A cannabis entity licensee or other person

authorized to engage in a regulated activity under this act

who is required to obtain a certificate of registration under

this section and who engages in an activity related to the

cultivation, processing, distribution, transportation, sale

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or offering for sale of cannabis or cannabis products without

first obtaining a certificate of registration from the

department under this section shall be subject to a penalty

of $5,000 for each month or part of a month during which the

cannabis entity licensee does not hold a valid certificate of

registration. The penalty shall not exceed $30,000.

(2) A cannabis entity licensee to whom cannabis or

cannabis products are sold or transferred and a person

licensed as a cannabis microbusiness who fails to maintain or

make available to the department any records, books,

materials or other information required by the department

shall be subject to a penalty not to exceed $500 for the

first month or part of a month for which the failure to

provide the records, books, materials or other information

occurs. The penalty under this paragraph may not be imposed

more than once for the same month or part of a month. If the

department determines that a failure to maintain or make

available records, books, materials or other information

required by the department in a month was entirely due to

reasonable cause and not willful neglect, the department must

remit the penalty for that month to the licensee.

Section 1004. Unlawful disclosure and penalty.

(a) Disclosure restrictions.--Notwithstanding any other

provision of law or regulations and except as may be provided by

court order, it shall be unlawful for the department, an officer

or employee of the department, an officer or person permitted or

otherwise authorized to inspect a return or report or to whom a

copy, abstract or portion of a return or report is furnished or

to whom information contained in a return or report is furnished

or a person that in any manner may acquire knowledge of the

20210HB2050PN2333 - 337 -

contents of a return or report filed under this chapter to

disclose, divulge or make known in any manner the content or

other information related to the business of the cannabis entity

licensee or other person authorized to engage in a regulated

activity under this act contained in a return or report required

under this chapter. The following apply:

(1) The officers charged with the custody of returns or

reports submitted by a cannabis entity licensee or other

person engaged in a regulated activity under this act shall

not be required to produce the returns or reports or evidence

of anything contained in the returns or reports in an action

or proceeding in court, except on behalf of the Commonwealth,

the board or the department in an action or proceeding

involving the collection of tax due under this chapter to

which the Commonwealth, the board or the department is a

party or a claimant or on behalf of a party to an action or

proceeding under this chapter, when the returns, reports or

facts shown in the returns or reports are directly related to

or involved in the action or proceeding or in an action or

proceeding related to the regulation or taxation of cannabis

and cannabis products on behalf of officers to whom

information was supplied as provided in this section.

(2) The court may require the production of, and may

admit into evidence, the portions of the returns or reports

or of the facts shown in the returns or reports which are

pertinent only to the action or proceeding.

(3) Nothing in this section shall be construed to

prohibit:

(i) The department, in the department's discretion,

from allowing the inspection or delivery of a certified

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copy of a return or report filed under this chapter or of

information contained in a return or report by or to a

duly authorized officer or employee of the board, the

Attorney General or other legal representative of the

Commonwealth if an action or proceeding is recommended or

commenced under this chapter in which the return or

report or the facts shown in the return or report are

directly related.

(ii) The inspection of the return or report required

under this chapter by the State Treasurer or a duly

designated officer or employee of the State Treasurer for

purposes of the audit of a refund of a tax paid by the

cannabis entity licensee or to prohibit the delivery to

the State Treasurer or a duly designated representative

of the State Treasurer of a certified copy of a return or

report filed by a cannabis entity licensee under this

chapter.

(iii) The publication of statistics in a manner that

would identify particular returns or reports and the

information contained in the returns or reports.

(iv) The disclosure, for tax administration

purposes, to a designated employee of the Office of the

Budget or the Treasury Department of information

aggregated from the returns filed by all cannabis

entities. The department may, at the department's

discretion, permit a designated officer of a municipality

entitled to receive a distribution of the money received

on account of the tax imposed under this chapter or the

authorized representative of the officer to inspect a

return filed under this chapter or to furnish to the

20210HB2050PN2333 - 339 -

officer or the officer's designated representative an

abstract of a return or supply the officer or

representative with information concerning specific

information contained in a return or disclosed by an

investigation of tax liability.

(b) Disclosures to other states.--The following apply:

(1) The department may adopt and promulgate regulations

to govern the inspection of returns or reports made under

this chapter by appropriate officers or duly designated

representatives of the officers of other states that regulate

or tax cannabis and cannabis products for personal use.

(2) The department may refuse to provide returns and

reports to officers of another state if the laws of the state

represented by the officer do not grant substantially similar

privileges to the department. Refusal under this paragraph

shall not be mandatory.

(3) An officer of another state or a designated

representative of the officer shall agree not to disclose or

divulge in any manner information contained in a return or

report received from the department under this subsection. An

officer of another state or a designated representative of

the officer may transmit information contained in a return or

report to an authorized employee or legal representative if

necessary to carry out a duty of employment. An authorized

employee or legal representative of another state who

receives a return or report or an abstract of information

contained in a return or report shall be subject to the same

restrictions on disclosure of returns and reports as provided

under this section.

20210HB2050PN2333 - 340 -

Commonwealth, the department, the board or the Attorney General

who knowingly violates subsection (a) or (b) may be suspended or

dismissed from employment and prohibited from holding a public

office in this Commonwealth for a period of five years.

Section 1005. Violation of tax requirements and administrative

penalty.

(a) Acts related to taxes.--In addition to any other

provision of this act governing the issuance of a license,

permit or other authorization to engage in a regulated activity

under this act, the board, upon notification by the department,

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

other authorization to a person for any of the following

violations of this act or the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971:

(1) Failure to file a tax return.

(2) Filing a fraudulent return.

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

finally determined to be due and payable.

(4) Failure to keep books, records, materials or other

information or documents required by the department.

(5) Failure to secure and display a certificate of

registration.

(6) Willful violation of any rule or regulation of the

department or the board related to the administration and

enforcement of tax liability.

(b) Correction of violation.--The following apply:

(1) Upon notification from the department that a

violation under subsection (a) has been corrected or

resolved, the board shall notify the licensee, permittee or

other person authorized to engage in a regulated activity

20210HB2050PN2333 - 341 -

under this act that the violation has been corrected or

resolved.

(2) Upon receiving notice from the department under

paragraph (1), the board may renew the license, permit or

other authorization to engage in a regulated activity under

this act or vacate an order of suspension or revocation.

shall be subject to the criminal penalties under section 910.

(d) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Sale." A transfer or possession of title, or both, or an

exchange, barter, rental, lease or license to use or consume,

conditional or otherwise, in any manner or by any means for a

consideration or an agreement to transfer, possess, exchange,

barter, rent, lease or license.

"Transfer." To grant, convey, hand over, assign, sell,

exchange or barter, in any manner or by any means, with or

without consideration.

CHAPTER 11

REVENUE

Section 1101. Cannabis Revenue Fund.

(a) Establishment of fund.--The Cannabis Revenue Fund is

established as a special fund in the Treasury Department.

(b) Deposits into fund.--The fund shall consist of proceeds

from license fees collected by the board, money collected by the

department from the imposition of taxes under this act, money

appropriated to the board and the department for implementing,

administering and enforcing this act and other money, grants,

gifts, donations or contributions from any other source which

20210HB2050PN2333 - 342 -

may be made to the fund.

Revenue Fund shall be expended for the following:

(1) Actual and necessary costs incurred by the board for

implementing, administering and enforcing this act.

(2) Reasonable costs incurred by the department for

carrying out the duties under this act. Costs may not exceed

5% of the tax revenues collected by the department under this

act.

(3) Reasonable costs incurred by the Department of

Agriculture and the Department of Community and Economic

Development in carrying out the powers and duties under this

act.

(4) Actual and necessary costs incurred by the office

related to the administration of incubators and other

assistance to qualified social and economic equity

applicants, including low-interest and zero-interest loans

and grants which may be provided to social and economic

equity applicants. The costs incurred under this paragraph

may be paid out of money received, including, but not limited

to, from a special one-time fee which the board may impose

and collect from a cannabis entity licensee whose application

for licensure includes a commitment to establish an

initiative, program or activity to assist social and economic

equity applicants to participate in this Commonwealth's

regulated cannabis industry.

(5) Reasonable costs incurred by the Pennsylvania State

Police and the Office of Attorney General to carry out their

duties under this act.

(d) Additional distributions.--Beginning with the third

20210HB2050PN2333 - 343 -

calendar year after the effective date of this subsection and

continuing through January 1, 2032, for the purposes of this

subsection, the sum of $20,000,000 shall be distributed on an

annual basis to pay:

(1) Reasonable costs incurred by the board to track and

report data related to:

(i) The licensing of cannabis entities, including

the geographic location, structure and function of

licensed cannabis entities, and demographic data,

including race, ethnicity and gender, of applicants and

licenseholders, including qualified social and economic

equity licensees, veterans, service-disabled veteran

licensees, disadvantaged farmer-owned small businesses,

cannabis microbusinesses and incubators.

(ii) Cannabis market prices, illicit market prices,

tax structures and rates, including an evaluation of how

to best tax cannabis based on potency, and the structure

and function of licensed cannabis entities.

(iii) Whether additional protections are needed to

prevent unlawful monopolies or anticompetitive behavior

from occurring in this Commonwealth's regulated cannabis

industry and, if so, recommendations as to the most

effective measures for preventing the behaviors.

(iv) The economic impacts in the private and public

sectors, including, but not limited to:

(A) Job creation.

(B) Workplace safety.

(D) Taxes generated for State and local budgets.

(E) Criminal justice impacts, including, but not

20210HB2050PN2333 - 344 -

limited to, impacts on law enforcement and public

health and safety resources, short-term and long-term

consequences of involvement in the criminal justice

system and State and local government agency

administrative costs and revenue.

(v) Whether the regulatory agencies tasked with the

administration, implementation and enforcement of this

act are acting in a manner consistent with the intent and

purposes of this act, and whether different agencies

might do so more effectively.

(vi) Public safety issues related to cannabis use,

including, but not limited to, studying the effectiveness

of the packaging and labeling requirements and

advertising and marketing restrictions contained in this

act at preventing underage access to and use of cannabis

and cannabis products and studying the health-related

effects among users of varying potency levels of cannabis

and cannabis products.

(vii) Environmental impacts and hazards related to

the cultivation of cannabis and the processing of

cannabis products.

(1.1) The board shall transmit the report under

paragraph (1) to the Legislative Reference Bureau for

publication in the Pennsylvania Bulletin annually, submit the

report to the Governor and the General Assembly and post the

report on the board's publicly accessible Internet website.

(2) Reasonable costs incurred by the Pennsylvania State

Police to track and report data related to infractions,

violations or criminal convictions for violations of this

act, including reasonable costs incurred by the Pennsylvania

20210HB2050PN2333 - 345 -

State Police to expand and enhance the drug evaluation and

classification program and technologies utilized to promote

and maintain traffic and highway safety. The Pennsylvania

State Police shall transmit the report under this paragraph

to the Legislative Reference Bureau for publication in the

Pennsylvania Bulletin annually, submit the report to the

Governor and the General Assembly and post the report on the

publicly accessible Internet website of the Pennsylvania

State Police.

(3) Reasonable costs incurred by an academic clinical

research center under Chapter 20 of the Medical Marijuana Act

to conduct clinical research on the medical use of cannabis

and evaluate the effect of the regulation of cannabis for

personal use on public health. No more than 3% of the money

may be used for expenses related to the administrative costs

of conducting research. Academic clinical research centers

may, if determined appropriate, make recommendations to the

board and the General Assembly regarding possible amendments

to this act. An academic clinical research center that

receives funds under this paragraph shall publish reports of

the academic clinical research center's findings biennially,

at a minimum, and submit the reports to the board, the

Governor and the General Assembly. The board shall make the

reports available to the public on the board's publicly

accessible Internet website. The research funded under this

paragraph shall include, but not be limited to:

(i) A description of clinical research activities

related to the medical use of cannabis conducted by the

academic clinical research center during the reporting

period reported in a manner that does not identify or

20210HB2050PN2333 - 346 -

reveal the confidential or proprietary nature of the

research.

(ii) The impact of cannabis on public health,

including health care costs associated with cannabis use,

as well as whether cannabis use is associated with an

increase or decrease in use of alcohol and other

controlled substances.

(iii) The use of cannabis or cannabis products for

the treatment for substance use disorder and the

effectiveness of different treatment programs

incorporating the use of cannabis or cannabis products.

(iv) Cannabis use rates, maladaptive use rates for

adults and youth and diagnosis rates of cannabis-related

substance use disorders.

(4) After the dispersal of money under paragraphs (1),

(2) and (3), money remaining in the fund deposited during the

prior fiscal year shall be distributed as follows:

(i) Fifteen percent of the money remaining in the

fund shall be deposited into the Communities Reimagined

and Reinvestment Restricted Account established under

section 1102 and shall be used for the purposes provided

under section 1102.

(ii) Fifteen percent of the money shall be deposited

into the Substance Use Disorder Prevention, Treatment and

Education Account established under section 1103 and used

for the purposes enumerated under section 1103(c).

(iii) Seventy percent of the money shall be

deposited into the General Fund.

(e) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

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subsection unless the context clearly indicates otherwise:

"Fund." The Cannabis Revenue Fund established under

subsection (a).

Section 1102. Communities Reimagined and Reinvestment

Restricted Account.

(a) Establishment.--The Communities Reimagined and

Reinvestment Restricted Account is established as a restricted

account within the Cannabis Revenue Fund.

(b) Deposits into account.--Each fiscal year, the State

Treasurer, after consultation with the Secretary of the Budget,

shall transfer into the account the money received under section

1101(d)(4)(i). Money deposited into account along with money

which may be appropriated by the General Assembly or which may

be otherwise contributed, donated or received from any other

source, including the Federal Government, for the purposes of

this section are hereby appropriated by the General Assembly to

the board to carry out the purposes of this section.

(1) The account shall be administered and governed by an

advisory committee comprised of 15 members, including the

director of the office, who shall be the chairperson.

(2) The other members of the advisory committee shall

include a representative of the following:

(i) The Department of Drug and Alcohol Programs, who

shall be the Secretary of Drug and Alcohol Programs or a

designee who shall be a deputy secretary concerned with

drug or alcohol use disorder, prevention, intervention,

rehabilitation and treatment.

(ii) The Department of Human Services, who shall be

the Secretary of Human Services or a designee who shall

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be a deputy secretary representing the Office of

Children, Youth and Family Services.

(iii) The Department of Labor and Industry, who

shall be the Secretary of Labor and Industry or a

designee who shall be a deputy secretary concerned with

job creation.

(iv) The director of the Office of Medical

Marijuana.

(v) The Department of Community and Economic

Development, who shall be the Secretary of Community and

Economic Development or a designee who shall be a deputy

secretary concerned with the administration of the

Commonwealth's Opportunity Zone program.

(v) The Department of Health, who shall be the

Secretary of Health or a designee who shall be a deputy

secretary concerned with behavioral and mental health

services.

(3) Legislative appointees to the advisory board shall

include:

(i) One member each appointed by the Majority Leader

of the Senate and the Minority Leader of the Senate who

shall be a person with knowledge and experience in

building healthy communities, including social, economic

and health equity in underserved communities in this

Commonwealth.

(ii) One member each appointed by the Majority

Leader of the House of Representatives and the Minority

Leader of the House of Representatives who shall be a

person with knowledge and experience in building healthy

communities, including social, economic and health equity

20210HB2050PN2333 - 349 -

in underserved communities in this Commonwealth.

(4) The Governor shall appoint five public members to

the advisory board and shall make every effort to ensure that

individuals appointed will achieve a balanced and diverse

representation of the geographic regions and demographics,

including age, race, ethnicity and gender, of this

Commonwealth and have expertise in job placement,

homelessness and housing, behavioral health, substance use

disorder treatment and effective rehabilitative treatment for

adults and juveniles, and shall include representatives of

organizations serving communities impacted by past Federal

and State drug policies.

(5) The Attorney General, the director of the

Pennsylvania Commission on Crime and Delinquency and the

Commissioner of Pennsylvania State Police shall serve as ex

officio members of the advisory committee.

(d) Purpose of advisory board.--In order to address social,

racial and economic disparities in the criminal justice system,

the advisory board is established to:

(1) Directly address the impact of economic

disinvestment, environmental discrimination, violence and the

historical overuse and discriminatory nature of criminal

justice responses in opportunity zones and other identified

communities by providing resources to support local design

and control of community-based activities and programs to

help alleviate these impacts.

(2) Directly address and initiate programs designed to

substantially reduce the total amount of gun violence and

concentrated poverty in designated opportunity zones and

other areas of this Commonwealth.

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(3) Develop policies and programs designed to protect

communities from gun violence through targeted investments

and intervention programs, including investments and programs

in community policing, family violence prevention, community

trauma treatment, gun injury victim services, public health

prevention activities and mental and behavioral health

programs, including trauma-informed care and mindfulness

programs to provide tools for personal growth and coping with

trauma.

(4) Promote economic development, employment

infrastructure and capacity building related to the social

determinants of health in designated opportunity zones and

other areas determined eligible to participate in the

programs under this section.

(e) Duties of advisory board.--Within 180 days after the

effective date of this act, the advisory board, in consultation

with the Department of Community and Economic Development, the

Department of Health and the Department of Human Services, shall

identify communities in designated opportunity zones and other

areas of this Commonwealth which may be eligible for grant

funding under this section. Local organizations, groups and

other persons in the designated opportunity zones and

communities may be eligible to apply for grants under this

section. In addition to designation as an opportunity zone,

qualifications for a Communities Reimagined and Reinvestment

Area designation shall be as follows:

(1) Based on an analysis of data, communities in this

Commonwealth that are high need, underserved,

disproportionately impacted by historical economic

disinvestment and ravaged by violence, as indicated by the

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highest rates of gun injury, early mortality, unemployment,

child poverty rates and commitments to and returns from the

Department of Corrections.

(2) The advisory board shall send to the Joint State

Government Committee and make publicly available the analysis

and identification of areas in this Commonwealth deemed

eligible to participate in a Communities Reimagined and

Reinvestment program or grant under paragraph (1), and shall

recalculate all eligibility data every four years. On an

annual basis, the advisory board shall analyze data and

indicate if data covering a Communities Reimagined and

Reinvestment Area or portion of a Communities Reimagined and

Reinvestment Area has, for four consecutive years,

substantially deviated from the average of Statewide data on

which the original calculation was made to determine

eligibility as a Communities Reimagined and Reinvestment

Area, including disinvestment, violence, early mortality, gun

injury, unemployment, child poverty rates or commitments to

or returns from incarceration.

(f) Community partnerships.--The advisory board shall

develop collaborative partnerships within identified Communities

Reimagined and Reinvestment Areas to minimize multiple

partnerships per area.

(g) Powers of advisory board.--The advisory board may

exercise any power, perform any function, take any action or do

anything in the furtherance of the advisory board's purposes and

goals. Upon the appointment of a quorum of the members, the

advisory board, in consultation with the office, shall:

(1) Develop a process to solicit applications from

persons, groups and organizations in opportunity zones and

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eligible communities designated as Communities Reimagined and

Reinvestment Areas. Groups and organizations eligible for

grant awards under this section shall include, but not be

limited to:

(i) Community-based providers.

(ii) Community and economic development

organizations.

(iii) Hospitals and other health care providers,

including mental and behavioral health providers.

(iv) Groups and organizations concerned with

violence reduction, including gun violence.

(v) Groups and organizations engaged in employment

training and employment opportunities for first offenders

and other individuals returning from incarceration.

(vi) Groups and organizations engaged in family and

child welfare activities.

(vii) Experts in the field of violence reduction and

community policing.

(viii) Other organizations, groups, providers and

experts determined by the advisory board as being

essential to the mission and purposes of the advisory

board.

(2) Develop standard uniform templates for planning and

implementation activities to be submitted by Communities

Reimagined and Reinvestment Areas to the advisory board.

(3) Identify resources sufficient to support the full

administration and evaluation of Communities Reimagined and

Reinvestment programs, including building and sustaining core

program capacity at the community and State levels.

(4) Facilitate the provision of training and technical

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assistance for capacity building for persons, groups and

organizations within and among opportunity zones and other

communities of this Commonwealth eligible to participate in

Communities Reimagined and Reinvestment programs.

(5) Review grant applications and approve the

distribution of grant money.

(6) Develop a performance measurement system that

focuses on positive outcomes, identifies negative results and

provides recommendations for improvement.

(7) Develop a process to support ongoing monitoring and

evaluation of Communities Reimagined and Reinvestment

programs.

(h) Use of money in account.--The money deposited into the

account shall be administered by the office and allocated by the

advisory board to:

(1) Provide grants for qualified community-based

nonprofit organizations and approved local government

entities for the purpose of reinvesting in communities

disproportionately affected by past Federal and State drug

policies. Grants shall be used to support:

(i) Job placement, job skills services and adult

education.

(ii) Mental health and behavioral health treatment,

including post-traumatic stress disorder.

(iii) Substance use disorder treatment.

(iv) Housing.

(v) Financial literacy and community banking.

(vi) Nutrition services.

(vii) Services to address adverse childhood

experiences.

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(viii) Afterschool and child care services.

(ix) System navigation services.

(x) Legal services to address barriers to reentry,

including, but not limited to, providing representation

and related assistance with expungement, vacatur,

substitution and resentencing of cannabis-related

convictions.

(xi) Linkages to medical care, women's health

services, including maternal health, and other community-

based supportive services.

(2) Money in the account may also be used by the

advisory board to award grants to further support the social

and economic equity activities created under this act.

(i) Reports.--On or before March 1 of the second calendar

year following the effective date of this subsection, and each

March 1 thereafter, the office shall submit a report to the

Governor and the General Assembly on the office's activities

under this section. The report shall detail how the money in the

account was distributed and utilized during the preceding

calendar year. The report shall include:

(1) The amount of money available and disbursed from the

account.

(2) The procedure and process used to award grant funds

from the account.

(3) The names of the grant recipients, including the

business address and other identifying information the office

determines necessary and appropriate.

(4) The dollar amount awarded to each grant recipient.

(5) The purposes for which the grant was awarded to each

recipient.

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(6) A summary financial plan for money in the fund,

which shall include estimates of all receipts and all

disbursements for the current and succeeding fiscal years and

the actual results from the prior fiscal year.

(j) Nonlapsing of money.--Any amounts remaining in the

account at the end of a fiscal year shall not lapse and shall

remain in the account and used for the purposes enumerated in

subsection (d).

(k) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Account." The Communities Reimagined and Reinvestment

Restricted Account established under subsection (a).

Section 1103. Substance Use Disorder Prevention, Treatment and

Education Account.

(a) Establishment of account.--The Substance Use Disorder

Prevention, Treatment and Education Account is established as an

account within the Cannabis Regulatory Fund.

(b) Deposits into account.--Each fiscal year, the State

Treasurer, after consultation with the Secretary of the Budget,

shall transfer into the Substance Use Disorder Prevention,

Treatment and Education Account the money received under section

1101(d)(4)(ii). Money deposited into the account and money

appropriated by the General Assembly or which may be otherwise

contributed, donated or received from any other source,

including the Federal Government, for the purposes of this

section are hereby appropriated by the General Assembly to the

Department of Drug and Alcohol Programs to carry out the

purposes of this section.

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Disorder Prevention, Treatment and Education Account

appropriated to the Department of Drug and Alcohol Programs

shall be used for the following purposes:

(1) To develop and implement a youth-focused public

health education and prevention campaign, including school-

based prevention, early intervention and health care services

and programs, to reduce the risk of cannabis and other

substance use by school-age children from kindergarten to

grade 12.

(2) To develop and implement a Statewide public health

campaign focused on the health effects of cannabis and legal

use, including an ongoing education and prevention campaign

that educates the general public, including parents,

consumers and retailers, on the legal use of cannabis, the

importance of preventing youth access, the importance of safe

storage, preventing secondhand cannabis smoke exposure,

information for pregnant or breastfeeding women and the

overconsumption of edible cannabis products.

(3) To provide substance use disorder treatment programs

for youth and adults, with an emphasis on programs that are

culturally and gender competent, trauma-informed, evidence-

based and provide a continuum of care that includes screening

and assessment, including substance use disorder assessment

as well as mental health and behavioral health assessment,

early intervention, active treatment, family involvement,

case management, overdose prevention, prevention of

communicable diseases related to substance use, relapse

management for substance use and other co-occurring

behavioral health disorders, vocational services, literacy

services, parenting classes, family therapy and counseling

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services, medication-assisted treatments, psychiatric

medication, psychotherapy and mindfulness programs.

(4) To evaluate the programs being funded under this

section to determine the programs' effectiveness.

(d) Reports.--The following apply:

(1) On or before March 31 of the second calendar year

following the initial distribution of money from the account

under this section, and each March 31 thereafter, the

Secretary of Drug and Alcohol Programs shall compile and

submit a report detailing how money in the account was

utilized during the preceding fiscal year. The report shall

include the following:

(i) The amount of money dispersed from the account

and the award process used by the Department of Drug and

Alcohol Programs to make disbursements.

(ii) The recipients of money from the account.

(iii) The amount awarded to each recipient.

(iv) The purposes for which the awards were granted,

including a description of programs and services provided

by each recipient.

(v) A description or summary of positive outcomes

resulting from programs and activities implemented by

grant recipients.

(vi) A summary financial plan for the money awarded,

which shall include estimates of all receipts and all

disbursements for the current and succeeding fiscal years

and the actual results from the prior fiscal year.

(2) The report shall be submitted in paper form or

electronically to:

(i) The Governor.

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(ii) The Majority Leader and Minority Leader of the

Senate.

(iii) The Majority Leader and Minority Leader of the

House of Representatives.

(e) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Account." The Substance Use Disorder Prevention, Treatment

and Education Account established under subsection (a).

Section 1104. Small business recovery grants.

(a) Grant program and distribution of funds.--Of the money

transferred for deposit into the General Fund under section

1101(d)(4), $25,000,000 shall be allocated, annually, to the

Department of Community and Economic Development to provide

grants to eligible small businesses through community

development financial institutions. Grants awarded to eligible

small businesses under this section shall be used to solely

assist small businesses to maintain business operations.

(b) Eligibility.--The following apply:

(1) To be eligible for a grant under this section, a

small business must:

(i) Apply for or have applied for grant assistance.

(ii) Be physically located, certified to do business

and generate at least 51% of its revenues in this

Commonwealth.

(iii) Have reported annual gross revenue of

$1,000,000 or less to the department for calendar year

2019.

(iv) Have 100 or fewer full-time equivalent

employees prior to March 6, 2020.

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(v) Have been in operation on March 6, 2020, and if

applicable, paid Federal and State income taxes, as

reported on individual or business Federal and State

income tax returns.

(vi) Have experienced a reduction in business income

activity related to COVID-19 or demonstrate that the

small business was actively engaged in business and, as a

result of COVID-19 mitigation efforts, temporarily closed

operations, which makes the grant request essential to

reopening or continuing business operations.

(vii) Self-attest that operational expenses are not

funded by a private entity.

(viii) Agree to operate in accordance with the

requirements of applicable Federal, State and local

public health mitigation guidance and directives, if the

guidance and directives are still in effect.

(ix) Have expenses that are necessary to reopen

business operations and the expenses are not a Federal,

State or local tax, fee, license or other expense imposed

by the Federal Government, the Commonwealth or a local

government.

(2) Demonstration of active engagement in business may

be provided by evidence of taxable activity reported to the

department or by any other method established by the

Department of Community and Economic Development in

collaboration with the department.

(b) Administration.--The Department of Community and

Economic Development shall administer this section and shall:

(1) Develop all necessary application forms and other

documents to be used by eligible businesses to apply for

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grant funds.

(2) Post on the Department of Community and Economic

Development's publicly accessible Internet website and submit

to the Legislative Reference Bureau for publication in the

Pennsylvania Bulletin a notice of all parameters related to

grant assistance, including eligibility criteria, application

submittal dates, evaluation criteria and reporting and data

maintenance requirements.

(3) Post on the Department of Community and Economic

Development's publicly accessible Internet website and submit

to the Legislative Reference Bureau for publication in the

Pennsylvania Bulletin a list of the eligible financial

institutions that are a part of the CDFI network.

(4) Conduct outreach to underrepresented and unserved

communities and small businesses, including hospitality

businesses, observed from prior grant programs established to

assist small businesses that were adversely impacted,

economically, because of the COVID-19 pandemic.

(5) Ensure equitable distributions of grant funding,

including considerations for geographic location and small

businesses owned by members of historically disadvantaged

communities.

(1) Grants awarded to eligible small businesses under

this section shall be subject to the availability of funds.

(2) An eligible small business may be awarded up to

$75,000 in grant funds.

(3) Nonprofit organizations may be eligible to receive

funding under this subsection, if the primary business

activity of the nonprofit organization satisfies the

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eligibility requirements under subsection (b).

(d) Use of grant funds.--Grants awarded to small businesses

under this section may be used for the following purposes:

(1) Upgrading physical workplaces to adhere to new

safety or sanitation standards, including procuring any

required personal protective supplies for employees, patrons

and business clients.

(2) Updating business plans.

(3) Employee costs including payroll, training and

onboarding.

(4) Rent, lease, mortgage, insurance and utilities

payments.

(5) Securing inventory, supplies and services for

operations.

(6) Any other purpose proposed to enhance ongoing

business operations.

(e) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"CDFI network." The coalition of 17 Pennsylvania-based

community development financial institutions that primarily

provide financing options for small businesses.

"Community development financial institution" or "CDFI." As

defined in section 2501 of the act of June 29, 1996 (P.L.434,

No.67), known as the Job Enhancement Act.

"COVID-19." The novel coronavirus as identified in the

Governor's proclamation of disaster emergency issued on March 6,

2020, published at 50 Pa.B. 1644 (March 21, 2020).

CHAPTER 12

MUNICIPALITIES

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Section 1201. Provisions specific to municipalities.

(a) Required notifications.--The following apply:

(1) Not less than 30 days nor more than 180 days prior

to filing an application with the board for licensure as a

cannabis entity, the applicant shall notify the governing

body of the municipality where the licensed cannabis

establishment is proposed to be located. Municipal

notification shall be made to the governing body by either:

(i) certified mail, return receipt requested;

(ii) overnight delivery service with proof of

mailing; or

(iii) personal service upon the offices of the

governing body of the municipality.

(2) The board shall, by regulation, provide a

standardized form that applicants for a cannabis entity

license must use to notify municipalities under paragraph

(1). The form shall be made available on the board's publicly

accessible Internet website in a downloadable print format.

The form shall be designed to include the following:

(i) The trade name or "doing business as," if any,

of the cannabis entity's cannabis establishment.

(ii) The full name of the applicant for the cannabis

entity license.

(iii) The street address of the proposed cannabis

establishment, including the floor, suite number or room

number, if applicable.

(iv) The mailing address of the proposed cannabis

establishment, if different than the street address.

(v) The name, address and telephone number of the

attorney or licensed representative of the applicant, if

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any.

(vi) A statement indicating whether the application

is for:

(A) a new cannabis establishment;

(B) the transfer of an existing cannabis

establishment, as approved by the board;

establishment; or

(D) an alteration of an existing licensed

premises.

(vii) If the cannabis establishment is a transfer or

previously approved cannabis establishment, the name of

the old cannabis establishment and the cannabis entity's

license number.

(viii) In case of the renewal or alteration of an

existing cannabis establishment, the license number of

the cannabis entity licensee.

(ix) The type of cannabis entity license applied

for.

(b) Board response to municipality.--If the governing body

of a municipality expresses an opinion for or against the

location of a cannabis establishment within the boundaries of

the municipality, the opinion of the governing body shall be

deemed part of the record upon which the board makes the

decision to approve or disapprove the application. The board

shall inform the municipality in writing of the decision,

including an explanation of how the opinion of the municipality

was considered in approving or disapproving the application for

licensure.

Section 1202. Local opt-out and municipal control and

20210HB2050PN2333 - 364 -

preemption.

The following apply:

(1) Within 30 days of receipt of notification under

section 1201(a) and in lieu of an opinion expressed under

section 1201(b), the governing body of the municipality shall

have the option to prohibit the location of a licensed

cannabis establishment within the municipality by delivery of

a resolution of the governing body to the board.

(2) No licensed cannabis establishment shall be located

in a municipality which has exercised the municipality's

option under paragraph (1).

(3) The governing body of a municipality that prohibits

the location of a licensed cannabis establishment within the

municipality under paragraph (1) may rescind that prohibition

at any time by delivering a subsequent resolution of the

municipality's governing body to the board. The governing

body of a municipality that rescinds the initial resolution

submitted to the board under paragraph (1) may not

subsequently prohibit the location of a licensed cannabis

establishment within the boundaries of the municipality.

Section 1203. Preemptions.

Notwithstanding any provision of this act or any other law or

regulation to the contrary, all municipalities are preempted

from adopting any rule, ordinance, regulation or prohibition

pertaining to the operation or licensure of cannabis

establishments. A municipality may adopt local laws or

ordinances governing the place and manner a cannabis retailer

licensee may open a cannabis establishment for business,

provided that the law, ordinance or regulation does not make the

operation of a cannabis retailer licensee's cannabis

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establishment unreasonably impracticable as determined by the

board.

Section 1204. Local cannabis taxation.

(a) Authority to adopt ordinance.--Notwithstanding any

provision of this act or law or regulation to the contrary, a

municipality may adopt an ordinance imposing a tax on the sale

of cannabis and cannabis products by a cannabis retailer

licensee whose cannabis establishment is located in the

municipality. At the discretion of the municipality, the tax

authorized under this subsection may be imposed on:

(1) retail sales by a cannabis retailer to cannabis

customers who are 21 years of age or older;

(2) receipts from the sale of cannabis and cannabis

products from one cannabis retailer licensee to another

cannabis retailer licensee; or

(3) any combination of paragraphs (1) and (2).

(b) Rate of tax.--Each municipality may set the

municipality's own rate or rates, but in no case shall a rate

exceed 2% of the receipts from each sale. A tax imposed by

ordinance under this section shall be in addition to any other

tax imposed by law.

(1) The tax imposed by ordinance under this section

shall be collected and remitted to the municipality by the

cannabis retailer licensee.

(2) The treasurer or chief financial officer of the

municipality shall collect and administer a tax imposed by

the municipality under subsection (a).

(3) A cannabis retailer licensee required to collect a

tax imposed by a municipality under subsection (a) shall be

20210HB2050PN2333 - 366 -

personally liable for the tax imposed, collected or required

to be collected.

(4) A cannabis retailer licensee shall have the same

right with respect to collecting the tax from a cannabis

consumer as if the tax were a part of the sale and payable at

the same time.

(5) A tax imposed by ordinance under subsection (a)

shall be separately stated from the purchase price and other

taxes on a receipt of sale.

(6) A cannabis retailer licensee required to collect a

tax imposed by a municipality under subsection (a) shall not

advertise or hold out to a person or the general public in

any manner, directly or indirectly, that the tax will not be

separately charged and stated to the cannabis consumer or

that the tax will be refunded to the cannabis consumer.

(d) Revenue collected.--The following apply:

(1) All money collected from a tax imposed by ordinance

under subsection (a) shall be remitted to the treasurer or

chief financial officer of the municipality in a manner

prescribed by the governing body of the municipality.

(2) The municipality shall enforce the payment of

delinquent taxes imposed by ordinance under this section in

the same manner as provided for municipal real property

taxes.

(e) Prohibition.--No tax imposed by ordinance under this

section shall be levied upon a dispensary as defined in the

Medical Marijuana Act.

CHAPTER 13

PROTECTIONS

Section 1301. Protections for personal use of cannabis.

20210HB2050PN2333 - 367 -

The following apply:

(1) No licensee, permittee or person authorized to

engage in a regulated activity under this act or an employee

or agent of the licensee, permittee or other person shall be

subject to arrest, prosecution or penalty in any manner, or

denied any right or privilege, including, but not limited to,

civil liability or disciplinary action by a business,

occupational or professional licensing board under 63 Pa.C.S.

(relating to professions and occupations) or under any

municipal or local ordinance or law, solely for conduct

authorized under this act.

(2) Notwithstanding any provision of law, regulation or

rule of court and for the avoidance of doubt under paragraph

(1), the Supreme Court and any disciplinary or character and

fitness committees established by law or by court rule shall

be considered occupational and professional licensing boards

within the meaning of this paragraph.

(3) No college or university or landlord may refuse to

enroll or lease to or otherwise penalize a person solely for

conduct authorized under this act, except if:

(i) failing to do so would cause the college,

university or landlord to lose a monetary or licensing-

related benefit under Federal law or regulation;

(ii) the college or university has adopted a code of

conduct prohibiting the use of cannabis and cannabis

products on the basis of religious belief; or

(iii) a property is advertised as smoke-free by the

landlord.

(4) No employer shall take adverse employment action

against an employee for the consumption of cannabis or a

20210HB2050PN2333 - 368 -

cannabis product, unless:

(i) The employee's consumption of cannabis or a

cannabis product is governed by law or a collective

bargaining agreement which:

(A) limits or prohibits the consumption of

cannabis while performing duties of employment;

(B) limits or prohibits the consumption of

cannabis as a condition of attaining or maintaining a

license, certification or professional status

required for employment; or

procedures related to the use of cannabis or cannabis

products by employees.

(ii) The employee's consumption of cannabis or a

cannabis product is in violation of a law of this

Commonwealth or a collective bargaining agreement.

(5) An employee shall not face adverse employment

actions for consuming cannabis or a cannabis product, if the

employee's conduct is authorized under this act, prior to the

beginning or after the conclusion of the employee's work

hours, off the employer's premises and without the use of the

employer's equipment or property.

(6) No employer shall take adverse employment action

against an applicant for employment or otherwise discriminate

against or refuse to interview an applicant for employment

for using cannabis, if the applicant's conduct is authorized

under this act.

(7) The following apply:

(i) Nothing in this section shall:

(A) Interfere with an employer's obligation to

20210HB2050PN2333 - 369 -

provide a safe and healthy workplace, free from

recognized hazards, as required by Federal and State

occupation safety and health laws.

(B) Require an employer to commit an act that

would cause the employer to be in violation of

Federal law or that would result in the loss of a

Federal contract or Federal funding.

or take adverse employment action for the possession

or use of intoxicating substances during work hours,

or require an employer to commit an act that would

cause the employer to be in violation of Federal law

or that would result in the loss of a Federal

contract or Federal funding.

(ii) For the purposes of this section, an employer

may consider an employee's ability to perform the

employee's job responsibilities to be impaired if, upon

reporting to work or while working, there is reasonable

suspicion of cannabis impairment which decreases or

lessens the employee's ability to perform the duties or

tasks of the employee's job position.

(iii) For the purpose of this paragraph, the term

"adverse employment action" means refusing to hire or

employ, barring or discharging from employment, requiring

a person to retire from employment or discriminating

against an employee in compensation or in terms,

conditions or privileges of employment.

(8) No person may be denied custody of or visitation or

parenting time with a minor for conduct allowed under this

act, unless the child's physical, mental or emotional health

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has been impaired or is in imminent danger of becoming

impaired as a result of the person's behavior as established

by a preponderance of the evidence. For the purposes of this

section, this determination cannot be based solely on

whether, when and how often a person uses cannabis or a

cannabis product without separate evidence of harm.

Section 1302. Lawful actions.

(a) Status of contracts.--Contracts related to the operation

of a cannabis establishment or the activities of a licensee,

permittee or other person authorized to engage in a regulated

activity under this act shall be lawful and shall not be deemed

unenforceable on the basis that the actions permitted under a

license, permit or other authorization to engage in a regulated

activity are prohibited by Federal law.

(b) Actions deemed lawful.--The following actions are not

unlawful as provided under this act, shall not be an offense

under State or local law, shall not result in a civil penalty,

fine, seizure or forfeiture of assets and shall not be the basis

for detention or search against a person acting as provided

under this act:

(1) Actions of a cannabis licensee, permittee or other

person authorized to engage in a regulated activity under

this act or the employees or agents of the licensee,

permittee or other person authorized under this act and

regulations of the board and under a valid license, permit or

other authorization issued by the board.

(2) Actions of a person that allows property owned by

the person to be purchased, leased, rented or otherwise used

by a cannabis entity licensee, permittee or other person

authorized to engage in a regulated activity under this act

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and the employees or agents of the licensee, permittee or

other person as authorized under this act and regulations of

the board and under a valid license, permit or other

authorization issued by the board.

(3) Actions of a person and the employees or agents of a

person providing a service to a cannabis entity licensee,

permittee or any other person engaged in a regulated activity

or to an applicant for a license, permit or other person

seeking authorization to engage in a regulated activity

providing a service as provided under this act and

regulations of the board relating to the formation and

operation of a cannabis establishment or other business

related to the operation of a cannabis establishment.

(4) The purchase, cultivation, processing, possession or

consumption of cannabis and cannabis products as permitted by

law and consistent with rules and regulations of the board.

Section 1303. Access to criminal history information through

Pennsylvania State Police.

(a) Authorization.--In connection with the administration of

this act, the bureau is authorized to request, receive and

review criminal history information through the Pennsylvania

State Police with respect to a person seeking a license, permit,

certificate, registration or other authorization to engage in a

regulated activity under this act to cultivate, process,

distribute or sell cannabis and cannabis products as provided

under this act.

(b) Fingerprinting.--At the board's request, an applicant

for a license, permit, certificate, registration or other

authorization to engage in a regulated activity under this act

or any other person as determined by the board shall submit to

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fingerprinting by the Pennsylvania State Police as provided

under this act.

State Police under this act may also be submitted to the Federal

Bureau of Investigation for a national criminal history record

check.

(d) Copies.--If additional copies of fingerprints are

required, the person subject to fingerprinting shall furnish the

additional copies upon request.

Section 1304. Cannabis clean slate.

(a) General rule.--The following apply:

(1) Notwithstanding 18 Pa.C.S. § 9122 (relating to

expungement) or any other provision of law or regulation to

the contrary, the criminal history record information of a

person who has been arrested, indicted or convicted for a

violation of section 13(a)(16), (30), (31), (32) or (33) of

the act of April 14, 1972 (P.L.233, No.64), known as The

Controlled Substance, Drug, Device and Cosmetic Act, where

the controlled substance is cannabis, shall be expunged under

subsection (b).

(2) If a person is serving or has completed serving a

sentence for a conviction in this Commonwealth referenced in

paragraph (1) which involved cannabis, and the person's

conduct was alleged in the indictment or shown or evidenced

by a guilty plea or trial verdict or shown by other

information, the person's criminal history record shall be

automatically expunged if:

(i) the conduct alleged and resulting in the

conviction would not have been a crime under this act had

this act been in effect at the time of the conduct which

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resulted in the arrest, indictment and conviction; or

(ii) under the circumstances, the person would have

been guilty of a lesser or potentially less onerous

offense under The Controlled Substance, Drug, Device and

Cosmetic Act.

(iii) The conduct alleged and resulting in the

conviction did not involve an act of violence.

(b) Expungement process.--The following apply:

(1) Within 15 days of the effective date of this act,

the Administrative Office of Pennsylvania Courts shall notify

the court of common pleas and the district attorneys of each

county in this Commonwealth of the expungements of criminal

history record information authorized under subsection (a).

(2) As soon as administratively practicable, but no

later than 30 days after receipt of notification under

paragraph (1), the court of common pleas in each county shall

collaborate with the district attorney of each county to

review and compile a list of all persons, including juvenile

offenders, arrested, indicted or convicted for a violation of

either section 13(a) (16), (30), (31), (32) or (33) of The

Controlled Substance, Drug, Device and Cosmetic Act where the

controlled substance is cannabis, and shall submit the list

to the Administrative Office of Pennsylvania Courts.

(3) No later than 30 days after receipt of the list of

persons eligible for expungement submitted under paragraph

(2), the Administrative Office of Pennsylvania Courts shall

review the list and provide a final list of all persons and

criminal history records eligible for expungement.

(4) Immediately upon receipt of the list under paragraph

(2), the president judge of the court of common pleas in each

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county shall order the expungement of all criminal history

records of persons named on the list and any other records

related to the arrest, indictment or conviction of the

persons, including administrative records maintained by the

Department of Transportation or other Commonwealth agency

related to an arrest, indictment or conviction specified in

subsection (a)(1).

(5) If the Administrative Office of Pennsylvania Courts

determines that a record reviewed under paragraph (2) is not

eligible for expungement, the Administrative Office of

Pennsylvania Courts shall notify the appropriate court of

common pleas within 10 days of the finding of ineligibility

and the person shall not be named in the final list compiled

and submitted by the Administrative Office of the Courts

under paragraph (3).

(6) Notice of expungement shall promptly be submitted by

the court of common pleas to the Pennsylvania State Police's

central repository. Upon receipt of the notice, the

Pennsylvania State Police shall immediately remove persons

named on the list under paragraph (2) from the central

repository and notify all criminal justice agencies, the

Department of Transportation and any other Commonwealth

agency that received criminal history record information

subject to expungement under subsection (a) of the names

removed from the central repository. The Pennsylvania State

Police may make notifications of expungements under this

paragraph electronically.

that issued an expungement order under subsection (b)(4) for

persons currently incarcerated shall transmit to the appropriate

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county correctional institution or State correctional

institution, as defined under 61 Pa.C.S. § 102 (relating to

definitions), an order for the immediate release or discharge of

a person whose criminal history record has been ordered

expunged.

(d) Right to petition when eligibility denied.--Nothing in

this section shall preclude a person who believes that the

person's conviction should be eligible for expungement under

this section from filing a petition with the court of record to

effectuate all appropriate relief under the applicable

provisions of 42 Pa.C.S. (relating to judiciary and judicial

procedure) or rules of court adopted by the Supreme Court.

(e) Applicability.--This section shall be available, used

and applied in parallel fashion by the family court and the

criminal courts in juvenile matters, including juvenile

delinquency adjudication and other adjudications related to

juvenile offenders.

(f) Reinstatement of driver's license and other licenses or

registrations.--Notwithstanding any provision of law or

regulation to the contrary, the following apply:

(1) The Department of Transportation shall reinstate a

person's driver's license which was suspended or revoked

because of a conviction referenced in subsection (a) that is

expunged under this section.

(2) A license or registration issued by a Commonwealth

or local agency which was suspended or revoked under section

23 of The Controlled Substance, Drug, Device and Cosmetic Act

due to the holder's arrest, indictment or conviction

referenced under subsection (a), which is expunged under this

section shall be reinstated.

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(g) Definitions.--As used in this section, the terms

"central repository," "criminal history record information,"

"criminal justice agency" and "expunge" shall have the meanings

given to them in 18 Pa.C.S. § 9102 (relating to definitions).

The terms "county correctional institution" and "state

correctional institution" shall have the meanings given to them

in 61 Pa.C.S. § 102 (relating to definitions).

CHAPTER 20

MISCELLANEOUS PROVISIONS

Section 2001. Transfer of power and duties; Department of

Health.

(a) Powers and duties transferred to board.--The powers,

duties and other obligations imposed upon the Department of

Health under the Medical Marijuana Act are hereby conveyed to

the Cannabis Regulatory Control Board established under section

301. All offices, personnel, allocation, appropriations, money

collected with interest accrued, equipment, files, records,

contracts, agreements, obligations and other materials which are

used, employed or expended in connection with the powers, money,

duties or functions of the Department of Health under the

Medical Marijuana Act are hereby transferred to the Cannabis

Regulatory Control Board established under section 301 with the

same force and effect as if the appropriations and money with

accrued interest had been made or paid to and the items had been

the property of the Cannabis Regulatory Control Board in the

first instance, and as if the contracts, agreements and

obligations had been incurred or entered into by the Cannabis

Regulatory Control Board. The personnel, appropriations, money

with accrued interest, equipment and other items and materials

transferred by this section shall include any other funds and

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benefits which may have been donated or contributed to or

collected by the Department of Health from any other source or

program. All personnel transferred under this act shall retain

civil service employment status assigned to the personnel.

(b) Status of departmental administrative actions.--All

orders, permits, regulations, decisions and other actions of the

Department of Health or any department, board, commission or

agency whose functions have been transferred by this act to the

Cannabis Regulatory Control Board shall remain in full force and

effect until modified, repealed, superseded in or otherwise

changed by appropriate action of the Cannabis Regulatory Control

Board or an act of the General Assembly.

Section 2002. Repeals.

All acts and parts of acts are repealed insofar as they are

inconsistent with this act.

Section 2003. Effective date.

This act shall take effect immediately.

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