Regular Session 2023-2024 House Bill 1082 P.N. 1109

PRINTER'S NO. 1109

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1082

Session of

2023

INTRODUCED BY SHUSTERMAN, SMITH-WADE-EL, HILL-EVANS, MADDEN,

GIRAL, McNEILL, SANCHEZ, BURGOS, PARKER, D. WILLIAMS,

CONKLIN, KRAJEWSKI, GREEN AND CEPEDA-FREYTIZ, MAY 2, 2023

REFERRED TO COMMITTEE ON HEALTH, MAY 2, 2023

AN ACT

Establishing the Adult-use Cannabis Program; providing for

farmer-grower permits; and imposing duties on the Department

of Health.

TABLE OF CONTENTS

Section 1. Short title.

Section 2. Definitions.

Section 3. Program.

Section 4. Farmer-growers generally.

Section 5. Unlawful use of adult-use cannabis.

Section 6. Application for farmer-grower permit.

Section 7. Duties of farmer-growers.

Section 8. Fees.

Section 9. Capital.

Section 10. Limitations on farmer-growers and permits.

Section 11. Inventory tracking system.

Section 12. Requirements regarding sites.

Section 13. Reports.

Section 14. Storage, transportation and tracking.

Section 15. Tax on adult-use cannabis.

Section 16. Duties of advisory board.

Section 17. Zoning.

Section 18. Notice of enactment.

Section 19. Effective date.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Adult-use

Cannabis Program Act.

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Adult-use cannabis." Cannabis legalized in this

Commonwealth for personal use by an individual who is 21 years

of age or older.

"Department." The Department of Health of the Commonwealth.

"Farmer-grower." A person, including an individual,

corporation, partnership, association, trust or other entity, or

combination of persons, holding a farmer-grower permit from the

department under this act.

"Grower/processor." As defined under the act of April 17,

2016 (P.L.84, No.16), known as the Medical Marijuana Act.

Section 3. Program.

(a) Establishment.--The Adult-use Cannabis Program is

established within the department.

(b) Administration and enforcement.--The department shall

administer and enforce the program. In doing so, the department

shall develop enforcement procedures, including announced and

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unannounced inspections of facilities of farmer-growers and all

records of the adult-use cannabis organizations.

Section 4. Farmer-growers generally.

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

grower may obtain seed and plant material from a

grower/processor within this Commonwealth to grow, process or

dispense adult-use cannabis in accordance with department

regulations.

(b) Limitations.--A farmer-grower may only grow, store or

harvest adult-use cannabis in an area that:

(1) is delineated to a single site at the address

identified on the permit issued by the department;

(2) does not exceed 10 acres of land;

(3) is enclosed by a roof and walls on all sides;

(4) includes locking systems and other security and

surveillance features required by the department; and

(5) is located within this Commonwealth.

Section 5. Unlawful use of adult-use cannabis.

A person may not grow adult-use cannabis unless the person

has received a farmer-grower permit from the department under

this act.

Section 6. Application for farmer-grower permit.

(a) Components.--An application for a farmer-grower permit

to grow, process or dispense adult-use cannabis shall:

(1) Be in a form and manner prescribed by the

department.

(2) Include verification of all principals, operators,

financial backers or employees of the person applying for the

farmer-grower permit.

(b) Regions.--The department shall establish a minimum of

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three regions within this Commonwealth for the purpose of

granting farmer-grower permits and enforcing this act.

each completed application for a farmer-grower permit, including

a renewal of a farmer-grower permit, and determine whether or

not to grant the permit.

(d) Considerations.--In determining whether to grant a

farmer-grower permit, the department shall consider the

following:

(1) Regional population.

(2) Access to public transportation.

(3) Any other factor that the department deems relevant.

(e) Additional information.--If the department is not

initially satisfied that the person applying for the farmer-

grower permit should be issued a permit, the department shall

notify the person in writing of the additional information or

documentation that is required for further consideration of the

application. Within 30 days of the receipt of the notification,

the person may submit additional information or documentation to

the department.

Section 7. Duties of farmer-growers.

A farmer-grower, including a person applying for a farmer-

grower permit, has a continuing duty to:

(1) Report to the department any change in facts or

circumstances reflected in the application for the farmer-

grower permit or any newly discovered or occurring fact or

circumstance which is required to be included in the

application, including a change in control of the adult-use

cannabis organization.

(2) Report to law enforcement, within 24 hours, any loss

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or theft of adult-use cannabis.

(3) Submit to announced or unannounced inspections by

the department of the facilities for growing, processing,

dispensing or selling adult-use cannabis, including all

records of the farmer-grower organization.

Section 8. Fees.

(a) Initial application fee.--A person applying for a

farmer-grower permit shall pay an initial application fee in the

amount of $2,500. The fee is nonrefundable.

(b) Permit fee and period.--A person applying for a farmer-

grower permit shall pay a farmer-grower permit fee in the amount

of $2,500. The following apply:

(1) The farmer-grower permit shall be valid for one

year.

(2) The person shall submit the farmer-grower permit fee

at the time of submission of the application for the farmer-

grower permit.

(3) The fee under this subsection shall be returned if

the department does not grant the farmer-grower permit.

to renew a farmer-grower permit, the farmer-grower must pay a

renewal fee in the amount of $2,500, which shall cover renewal

for all locations. The following apply:

(1) The renewal fee shall be returned if the department

does not grant the renewal of the farmer-grower permit.

(2) An application to renew a farmer-grower permit must

be filed with the department not more than six months nor

fewer than four months prior to the expiration of the farmer-

grower permit.

(d) Payment.--Each fee under this section must be paid by

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certified check or money order.

Section 9. Capital.

Before issuing an initial farmer-grower permit under this

act, the department shall verify that the person applying for

the farmer-grower permit has enough capital, as determined by

the department, which must be on deposit with a financial

institution.

Section 10. Limitations on farmer-growers and permits.

The following limitations apply:

(1) The department shall promulgate regulations

initially limiting the number of farmer-grower permits

granted under this act. The number of farmer-grower permits

issued shall be determined by the department.

(2) The department may not issue more than one farmer-

grower permit to one person.

(3) A farmer-grower may only provide adult-use cannabis

to a grower/processor holding a valid permit under the act of

April 17, 2016 (P.L.84, No.16), known as the Medical

Marijuana Act.

Section 11. Inventory tracking system.

A farmer-grower must implement an inventory tracking system,

which shall be accessible to the department. The inventory

tracking system shall include tracking of all of the following:

(1) The number of adult-use cannabis plants located on a

site used for growing or cultivating adult-use cannabis.

(2) The number of adult-use cannabis plants located on a

site used for growing or cultivating adult-use cannabis that

have been successfully cultivated for sale to a

grower/processor.

(3) The number of adult-use cannabis plants located on a

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site used for growing or cultivating adult-use cannabis that

are unfit for cultivation and marked for disposal as plant

waste.

(4) The plant waste resulting from the growth of adult-

use cannabis and disposal methods, including the name and

address of any disposal service.

(5) A weekly log of each week's beginning inventory,

acquisitions, amounts sold, disbursements, disposals and

ending inventory. The inventory tracking system shall include

prices paid and amounts collected from grower/processors.

Section 12. Requirements regarding sites.

Sites used for growing or cultivating adult-use cannabis must

be certified, inspected and permitted by and registered with the

department. The failure to permit inspection by the department

shall be a violation of this act.

Section 13. Reports.

Within one year of the issuance of the first permit to a

farmer-grower and every three months thereafter in a form and

manner prescribed by the department, the following information

shall be provided to the department, which shall compile the

information and post it on the department's publicly accessible

Internet website:

(1) The amount of adult-use cannabis sold by the farmer-

grower during each three-month period.

(2) The price charged for each amount of adult-use

cannabis sold by the farmer-grower, as determined by the

department, and total amount of revenue received from the

sales.

Section 14. Storage, transportation and tracking.

The department shall develop regulations relating to the

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storage, transportation and tracking of adult-use cannabis among

farmer-growers and of medical marijuana, to ensure adequate

security to guard against in-transit losses. The regulations

shall provide for transporting adult-use cannabis to a farmer-

grower.

Section 15. Tax on adult-use cannabis.

(a) Tax imposed.--A tax is imposed on the gross receipts of

a grower/processor received from the sale of adult-use cannabis

by a farmer-grower. The tax shall be at a rate of 1%. The tax

shall be charged against and be paid by the grower/processor and

shall not be added as a separate charge or line item on any

sales slip, invoice, receipt or other statement or memorandum of

the price paid by a dispensary, patient or caregiver.

(b) Information.--A farmer-grower that sells adult-use

cannabis shall provide to the Department of Revenue information

required by the Department of Revenue.

Section 16. Duties of advisory board.

The advisory board established under section 1201 of the act

of April 17, 2016 (P.L.84, No.16), known as the Medical

Marijuana Act, shall include recommendations and findings as to

whether to change, add or reduce the number of farmer-growers.

Section 17. Zoning.

A farmer-grower shall meet the same municipal zoning and land

use requirements as other agricultural operations that are

located in the same zoning district.

Section 18. Notice of enactment.

Upon enactment of a law that legalizes adult-use cannabis in

this Commonwealth, the Secretary of the Commonwealth shall

transmit notice of the enactment to the Legislative Reference

Bureau for publication in the next available issue of the

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Pennsylvania Bulletin.

Section 19. Effective date.

This act shall take effect as follows:

(1) Section 18 shall take effect immediately.

(2) This section shall take effect immediately.

(3) The remainder of this act shall take effect upon

publication of the notice under section 18.

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