PRINTER'S NO. 860
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
773
Session of
2023
INTRODUCED BY GEBHARD, STEFANO, BARTOLOTTA, ROBINSON, COSTA,
CULVER, LAUGHLIN AND LANGERHOLC, JUNE 8, 2023
REFERRED TO LAW AND JUSTICE, JUNE 8, 2023
AN ACT
Amending the act of April 17, 2016 (P.L.84, No.16), entitled "An
act establishing a medical marijuana program; providing for
patient and caregiver certification and for medical marijuana
organization registration; imposing duties on the Department
of Health; providing for a tax on medical marijuana
organization gross receipts; establishing the Medical
Marijuana Program Fund; establishing the Medical Marijuana
Advisory Board; establishing a medical marijuana research
program; imposing duties on the Department of Corrections,
the Department of Education and the Department of Human
Services; and providing for academic clinical research
centers and for penalties and enforcement," in preliminary
provisions, further providing for definitions; and, in
medical marijuana organizations, further providing for
limitations on permits and providing for additional
dispensary permits authorized, for application and issuance
of additional dispensary permits and for limitations on other
additional permits or licenses.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 103 of the act of April 17, 2016 (P.L.84,
No.16), known as the Medical Marijuana Act, is amended by adding
definitions to read:
Section 103. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
context clearly indicates otherwise:
* * *
"Change of control transaction." The consolidation, merger
or acquisition by a person or group of persons acting in concert
of more than 20% of:
(1) a medical marijuana organization's securities or
other ownership interests, with the exception of any
ownership interest of the person that existed at the time of
the issuance of the initial medical marijuana organization's
permit and payment of the initial permit; or
(2) the securities or other ownership interests of a
corporation or other form of business entity which owns
directly or indirectly 20% of the securities or other
ownership interests of the medical marijuana organization.
* * *
"Independent grower/processor." A grower/processor awarded a
permit to operate in this Commonwealth that meets all of the
following criteria as of the effective date of this definition:
(1) Has not had its permit revoked .
(2) Has not entered into a merger, acquisition or other
change of control transaction with any other entity that was
awarded a grower/processor permit, a dispensary permit or a
clinical registrant permit in this Commonwealth .
(3) Is not otherwise associated with or materially the
same as another medical marijuana organization in this
Commonwealth through a parent company or subsidiary of
another entity that holds a permit from the department under
this act or through the sharing of officers or directors,
employees, facilities, equipment, finances or capital.
* * *
20230SB0773PN0860 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
"Materially the same." A person who shares any of the
following with another person:
(1) Profits or losses.
(2) Common valuation, in the case of a publicly traded
company.
(3) Common ownership of 5% or greater, including
subsidiaries.
* * *
"Parent company." A company which directly or indirectly
controls any other permittee under this act.
* * *
"Person." A natural person, corporation, foundation,
organization, business trust, estate, limited liability company,
licensed corporation, trust, partnership, limited liability
partnership, association or other form of legal business entity.
* * *
Section 2. Section 616(5) of the act is amended to read:
Section 616. Limitations on permits.
The following limitations apply to approval of permits for
grower/processors and dispensaries:
* * *
(5) [No] Except as provided under section 617, no more
than five grower/processors may be issued permits as
dispensaries. If the number of growers/processors is
increased under section 1202, no more than 20% of the total
number of growers/processors may also be issued permits as
dispensaries.
* * *
Section 3. The act is amended by adding sections to read:
Section 617. Additional dispensary permits authorized.
20230SB0773PN0860 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(a) Authorization.--An independent grower/processor that
applies and meets the requirements under section 618 shall be
issued two dispensary permits.
(b) Rights and privileges.--The dispensary permits issued
under this section shall have all the rights and privileges
afforded to dispensaries operating as medical marijuana
organizations under section 601(2).
(c) Suspension or revocation prohibited.--The department may
not suspend, revoke or withdraw a permit or fail to renew the
permit of an entity that receives a dispensary permit under this
section due to the entity ceasing to qualify as an independent
grower/processor after the holder of the dispensary permit
becomes operational in this Commonwealth.
Section 618. Application and issuance of additional dispensary
permits.
(a) Applications.--
(1) The department shall develop a standard application
form and make the form available to independent
grower/processors that apply for dispensary permits
authorized under section 617.
(2) The department shall, within 30 days of the
effective date of this paragraph, accept applications from
independent grower/processors for dispensary permits
authorized under section 617.
(3) The department shall review applications for
dispensary permits authorized under section 617 within 30
days of receipt of an application under paragraph (1) from an
eligible independent grower/processor.
(b) Issuance.--
(1) The department shall issue dispensary permits within
20230SB0773PN0860 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
15 days of review of applications received under this section
to all applicants that meet the minimum requirements for
permitting. The department shall notify an applicant for
dispensary perm its authorized under section 617 of the
approval of an application by certified mail or email.
(2) If an applicant under this section does not meet the
minimum criteria for permitting, the department shall notify
the applicant by certified mail or email within 15 days of
review of the application which shall include deficiencies in
the application and unmet requirements.
(3) If the department denies an application for
dispensary perm its authorized under section 617, no later
than 15 days after completing the review under subsection (a)
(2), the department shall notify the applicant of the denial
by certified mail or email. The notice shall include each
deficiency in the application that does not meet the
requirements to be issued a permit under this act.
(4) If the department determines that an application is
complete but lacks sufficient information upon which to make
a determination, the department shall notify the applicant in
writing of the factors that require additional information
and documentation. The following apply:
(i) Except as provided under subparagraph (iv), an
applicant has 30 days from the mailing date of the notice
under this paragraph to provide the requested information
and documentation to the department.
(ii) An applicant's failure to provide the requested
information to the department by the deadline may be
grounds for denial of the issuance of the dispensary
permit.
20230SB0773PN0860 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(iii) Nothing in this paragraph requires the
department to request additional or supplemental
information from an applicant if the application is
deemed complete under paragraph (1).
(iv) Upon showing of good cause, the department may
extend the deadline in subparagraph (i) one time for up
to an additional 15 days.
(v) The department shall issue the dispensary permit
within 15 days of receipt of the requested information or
documentation required to make a determination.
(5) Upon request for inspection or reinspection for an
operational certificate, the department shall inspect the
dispensary location within 30 days of request by certified
mail or email.
(6) Appeals to the issuance or denials of dispensary
permits under this section must be responded to by the
department within 30 days of submittal.
(c) Fees.--An independent grower/processor applying for a
dispensary permit under this section shall remit at the time of
application:
(1) A nonrefundable application review fee in the amount
of $5,000. A subsequent application for a denied application
under this section shall not incur an additional application
review fee.
(2) A permitting fee in the amount of $30,000 which
shall be considered earned by the department upon the
issuance of a dispensary permit. The permitting fee shall be
held by the department until a dispensary permit is issued by
the department or the applicant notifies the department by
certified mail or email that the applicant is abandoning the
20230SB0773PN0860 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
application and that the applicant requests the return of the
$30,000 permitting fee.
(d) Regions.--
(1) An independent grower/processor may apply for a
dispensary permit under this section in any region
established under section 603(d).
(2) The department may limit the number of dispensary
permits issued under this section to each independent
grower/processor in accordance with the following :
(i) The department may limit the number of
dispensary permits issued under this section to one
dispensary permit per independent grower/processor for
any region established under section 603(d).
(ii) If a single independent grower/processor
applies for two dispensary permits in the same region
established under section 603(d) and the department
determines that issuing the dispensary permits to the
applicant would not be in the best interests of medical
marijuana patients, the department shall notify the
applicant within seven days of the department's
determination and allow the applicant to submit a new
application for a different region without remittance of
an additional application review fee under subsection (c)
(1).
(iii) Nothing in this paragraph shall be construed
to modify the allowable dispensary permits for each
independent grower/processor under section 617.
Section 619. Limitations on other additional permits or
licenses.
Notwithstanding the provisions of section 617 or 618, nothing
20230SB0773PN0860 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
in section 617 or 618 shall be construed to limit an entity that
qualifies as an independent grower/processor from applying for
and receiving additional permits or licenses under any other
provisions of this act upon the release of additional permits or
licenses by the department or the Commonwealth.
Section 4. This act shall take effect in 60 days.
20230SB0773PN0860 - 8 -
1
2
3
4
5
6