SB 49

PRIOR PRINTER'S NOS. 1020, 1506, 1680  PRINTER'S NO.   1805
               THE GENERAL ASSEMBLY OF PENNSYLVANIA
                  SENATE BILL
                  No. 49
                                          Session of
                                            2025
INTRODUCED BY LAUGHLIN, K. WARD, STREET, ARGALL, TARTAGLIONE,
   ROBINSON, SCHWANK, MALONE, VOGEL, BARTOLOTTA, KANE, BOSCOLA,
   A. WILLIAMS, FONTANA, SAVAL, STEFANO, FLYNN AND PICOZZI,
   JUNE 30, 2025
SENATOR PITTMAN, RULES AND EXECUTIVE NOMINATIONS, RE-REPORTED AS
   AMENDED, JUNE 9, 2026
                                 AN ACT
1 Establishing the Cannabis Control Board; providing for powers
2    and duties of the Cannabis Control Board; establishing the
3    Cannabis Regulation Fund; providing for permits and for
4    dispensing cannabis to patients and caregivers; and making
5    repeals.
6TABLE OF CONTENTS
7 Chapter 1.   Preliminary Provisions
8 Section 101.   Short title.
9 Section 102.   Definitions.
10 Chapter 2.   (Reserved)
11 Chapter 3.   Cannabis Control Board
12 Section 301.   Scope of chapter.
13 Section 302.   Definitions.
14 Section 303.   Establishment of board.
15 Section 304.   Code of conduct.
16 Section 305.   Applicability of other statutes.
17 Section 306.   Board meetings.
18 Section 307.   Board records.
1 Section 308.   Regulations.
2 Section 309.   Powers and duties of board.
3 Section 310.   Confidentiality and public disclosure.
4 Section 311.   Unauthorized activities and civil penalties.
5 Section 312.   Cannabis Regulation Fund.
6 Section 313.   Report of board.
7 Section 314.   Authority.
8 Section 315.   Transfer of authority.
9 Section 316.   Construction.
10 Chapter 4.   (Reserved)
11 Chapter 5.   Permits
12 Section 501.   (Reserved).
13 Section 502.   (Reserved).
14 Section 503.   Warehousing and distribution permit.
15 Section 504.   Third-party transporter permit.
16 Chapter 6.   (Reserved)
17 Chapter 7.   Miscellaneous Provisions
18 Section 701.   Dispensaries.
19 Section 702.   Grower/processors.
20 Section 703.   Repeals.
21 Section 704.   Effective date.
22    The General Assembly of the Commonwealth of Pennsylvania
23 hereby enacts as follows:
24CHAPTER 1
25PRELIMINARY PROVISIONS
26 Section 101.   Short title.
27    This act shall be known and may be cited as the Cannabis
28 Control Board Act.
29 Section 102.   Definitions.
30    The words and phrases used in this act shall have the
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1 meanings given to them in the act of April 17, 2016 (P.L.84,
2 No.16), known as the Medical Marijuana Act, unless the context
3 clearly indicates otherwise.
4CHAPTER 2
5(Reserved)
6CHAPTER 3
7CANNABIS CONTROL BOARD
8 Section 301.    Scope of chapter.
9    This chapter relates to the Cannabis Control Board.
10 Section 302.    Definitions.
11    The following words and phrases when used in this chapter
12 shall have the meanings given to them in this section unless the
13 context clearly indicates otherwise:
14    "Board."    The Cannabis Control Board established under
15 section 303(a).
16    "Cannabis."      As follows:
17(1)     Any of the following:
18(i)   Marijuana, hashish or other substances that are
19identified as including any parts of the plant cannabis
20sativa and including derivatives or subspecies, such as
21indica, of all strains of cannabis, whether growing or
22not, including the seeds, resin extracted from any part
23of the plant and any compound, manufacture, salt,
24derivative, mixture or preparation of the plant. The term
25includes THC and all other naturally produced cannabinol
26derivatives, whether produced directly or indirectly by
27extraction, including delta-7 THC, delta-8 THC, delta-9
28THC or any structural, optical or geometric isomers of
29tetrahydrocannabinol, cannabis flower, concentrate,
30edible and infused products.
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1(ii)    A product intended for human consumption with a
2THC concentration, however derived, that is a hemp-
3derived cannabinoid product and is excluded from the
4definition of "hemp" under this section.
5(iii)    An intermediate hemp-derived cannabinoid
6product which is marketed or sold as a final product or
7directly to an end consumer for personal or household
8use.
9(2)    The term does not include the mature stalks of the
10    plant, fiber produced from the stalks, oil or cake made from
11    the seeds of the plant or any other compound, manufacture,
12    salt, derivative, mixture or preparation of the mature
13    stalks, the sterilized seed of the plant that is incapable of
14    germination or industrial hemp.
15    "Cannabis organization."       A medical marijuana organization as
16 defined in the Medical Marijuana Act.
17    "Container."       The innermost wrapping, packaging or vessel in
18 direct contact with a final hemp-derived cannabinoid product in
19 which the final hemp-derived cannabinoid product is enclosed for
20 retail sale to consumers, such as a jar, bottle, bag, box,
21 packet, can, carton or cartridge. The term does not include bulk
22 shipping containers or outer wrappings that are not essential
23 for the final retail delivery or sale to an end consumer for
24 personal or household use.
25    "Final hemp-derived cannabinoid product."      A hemp-derived
26 cannabinoid product that is in the final form or preparation
27 marketed or intended to be used or consumed by a human or
28 animal. The term does not include an intermediate hemp-derived
29 cannabinoid product.
30    "Hemp."    The plant Cannabis sativa L. and any part of that
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1 plant, including the seeds thereof and all derivatives,
2 extracts, cannabinoids, isomers, acids, salts and salts of
3 isomers, whether growing or not, with a total
4 tetrahydrocannabinols concentration, including
5 tetrahydrocannabinolic acid, of not more than 0.3% on a dry
6 weight basis. The term:
7(1)   Includes industrial hemp.
8(2)   Does not include:
9(i)    any viable seeds from a Cannabis sativa L. plant
10that exceeds a total tetrahydrocannabinols concentration,
11including tetrahydrocannabinolic acid, of 0.3% in the
12plant on a dry weight basis;
13(ii)    any intermediate hemp-derived cannabinoid
14products containing:
15(A)   cannabinoids that are not capable of being
16naturally produced by a Cannabis sativa L. plant;
17(B)   cannabinoids that:
18(I)    are capable of being naturally produced
19by a Cannabis sativa L. plant; and
20(II)   were synthesized or manufactured
21outside the plant; or
22(C)   more than 0.3% combined total of:
23(I)    total tetrahydrocannabinols, including
24tetrahydrocannabinolic acid; and
25(II)   any other cannabinoids that have
26similar effects, or are marketed to have similar
27effects, on humans or animals as a
28tetrahydrocannabinol as determined by the board;
29(iii)    any intermediate hemp-derived cannabinoid
30products which are marketed or sold as a final product or
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1      directly to an end consumer for personal or household
2      use; or
3(iv)    any final hemp-derived cannabinoid products
4      containing:
5(A)   cannabinoids that are not capable of being
6naturally produced by a Cannabis sativa L. plant;
7(B)   cannabinoids that:
8(I)    are capable of being naturally produced
9by a Cannabis sativa L. plant; and
10(II)    were synthesized or manufactured
11outside the plant; or
12(C)   greater than 0.4 milligrams combined total
13per container of:
14(I)    total tetrahydrocannabinols, including
15tetrahydrocannabinolic acid; and
16(II)    any other cannabinoids that have
17similar effects, or are marketed to have similar
18effects, on humans or animals as a
19tetrahydrocannabinol as determined by the board.
20  "Hemp-derived cannabinoid product."  The following:
21      (1)   Any intermediate or final product derived from hemp,
22  other than industrial hemp, that:
23(i)    contains cannabinoids in any form; and
24(ii)    is intended for human or animal use through any
25      means of application or administration, such as
26      inhalation, ingestion or topical application.
27      (2)   The term does not include a drug that is the subject
28  of an application approved under 21 U.S.C. § 355(c) or (j)
29  (relating to new drugs).
30  "Industrial hemp."  Hemp:
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1(1)     grown for the use of the stalk of the plant, fiber
2    produced from such a stalk or any other non-cannabinoid
3    derivative, mixture, preparation or manufacture of such a
4    stalk;
5(2)     grown for the use of the whole grain, oil, cake,
6    nut, hull or any other non-cannabinoid compound, derivative,
7    mixture, preparation or manufacture of the seeds of such
8    plant;
9(3)     grown for purposes of producing microgreens or other
10    edible hemp leaf products intended for human consumption that
11    are derived from an immature hemp plant that is grown from
12    seeds that do not exceed the threshold for total
13    tetrahydrocannabinols concentration specified in the
14    definition of "hemp";
15(4)     that is a plant that does not enter the stream of
16    commerce and is intended to support hemp research at an
17    institution of higher education as defined in 20 U.S.C. §
18    1001 (relating to general definition of institution of higher
19    education) or an independent research institute; or
20(5)     grown for the use of a viable seed of the plant
21    produced solely for the production or manufacture of any
22    material.
23    "Intermediate hemp-derived cannabinoid product."    A hemp-
24 derived cannabinoid product which:
25(1)     is not yet in the final form or preparation marketed
26    or intended to be used or consumed by a human or animal; or
27(2)     is a powder, liquid, tablet, oil or other product
28    form which is intended or marketed to be mixed, dissolved,
29    formulated or otherwise added to or prepared with or into any
30    other substance prior to administration or consumption.
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1    "Medical Marijuana Act."       The act of April 17, 2016 (P.L.84,
2 No.16), known as the Medical Marijuana Act.
3    "Ownership interest."       Owning or holding, or being deemed to
4 hold, debt or equity securities or other ownership interest or
5 profit interest.
6    "THC."      A delta-9 tetrahydrocannabinol and any structural,
7 optical or geometric isomers of tetrahydrocannabinol, including
8 delta-7, delta-8 and delta-10 tetrahydrocannabiphorol,
9 hexahydrocannabinol and any other substance, however derived,
10 that has similar effects on the mind or body as determined by
11 the board.
12    "Transaction scan device."       A device capable of deciphering,
13 in an electronically readable format, the information encoded on
14 the magnetic strip or bar code of a State-issued identification
15 card.
16 Section 303.     Establishment of board.
17    (a)     Board established.--The Cannabis Control Board is
18 established as an independent board which shall be a body
19 corporate and politic.
20    (b)     Membership.--The board shall consist of the following
21 members:
22(1)    The following members appointed by the Governor:
23(i)    An individual with experience in law
24enforcement.
25(ii)    An individual with experience in the medical
26field and dealing with addiction.
27(iii)    An individual with experience in cannabis
28matters.
29(2)    One member appointed by each of the following:
30(i)    The President pro tempore of the Senate.
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1(ii)    The Speaker of the House of Representatives.
2(iii)    The Minority Leader of the Senate.
3(iv)    The Minority Leader of the House of
4Representatives.
5    (c)   Removal.--A member of the board shall be removed from
6 office by the appointing authority:
7(1)   for misconduct in office, willful neglect of duty or
8    conduct evidencing unfitness for office or incompetence; or
9(2)   upon conviction of an offense graded as a felony, an
10    infamous crime, an offense under the Medical Marijuana Act or
11    an equivalent offense under Federal law or the law of another
12    jurisdiction.
13    (d)   Initial appointments to board.--
14(1)   Gubernatorial appointees initially appointed under
15    subsection (b)(1) shall serve an initial term of one, two and
16    three years respectively as designated by the Governor at the
17    time of appointment and until their successors are appointed
18    and qualified.
19(2)   Legislative appointees initially appointed under
20    subsection (b)(2) shall serve until the third Tuesday in
21    January 2027 and until their successors are appointed and
22    qualified.
23(3)   An appointment to fill a vacancy created by a member
24    appointed in accordance with paragraph (1) or (2) shall be
25    for the remainder of the unexpired term.
26    (e)   Terms of office.--Upon the expiration of a term of a
27 member appointed under subsection (d), the following shall
28 apply:
29(1)   The term of office of a gubernatorial appointee
30    shall be three years and until a successor is appointed and
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1    qualified.
2(2)   The term of office of a legislative appointee shall
3    be two years and until a successor is appointed and
4    qualified.
5(3)   A gubernatorial appointee shall serve no more than
6    two full consecutive terms.
7(4)   A legislative appointee shall serve no more than
8    three full consecutive terms.
9(5)   An appointment to fill a vacancy shall be for the
10    remainder of the unexpired term.
11(6)   A member appointed to fill a vacancy under paragraph
12    (3) may serve two full terms following the expiration of the
13    term related to the vacancy.
14(7)   A member appointed to fill a vacancy under paragraph
15    (4) may serve three full terms following the expiration of
16    the term related to the vacancy.
17    (f)   Ex officio members.--The Secretary of Agriculture, the
18 Secretary of Health, the Attorney General and the Pennsylvania
19 State Police Commissioner, or their designees, shall serve on
20 the board as nonvoting ex officio members of the board. The
21 designee shall be a deputy secretary or an equivalent position
22 within the agency.
23    (g)   Executive director of the board.--Within seven days of
24 the effective date of this subsection, the Governor shall
25 nominate an interim executive director. The Governor's nominee
26 shall be subject to Senate confirmation and the Senate shall
27 hold the confirmation vote within seven days of the nomination.
28 If the Senate fails to hold the confirmation vote within seven
29 days of nomination, the Senate shall be deemed to have confirmed
30 the nominee. If the Senate rejects the nominee, the Governor
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1 shall have five days to nominate a second proposed interim
2 executive director and the Senate shall have five days after the
3 nomination to hold a confirmation vote. If the Senate fails to
4 hold a confirmation vote within five days of the nomination, the
5 Senate shall be deemed to have confirmed the nominee. If the
6 Senate rejects the nominee, the Governor shall have three days
7 to nominate a third proposed interim executive director and the
8 Senate shall have three days after the nomination to hold a
9 confirmation vote. The process for the third proposed interim
10 director shall continue until an interim executive director is
11 confirmed by the Senate. The following shall apply:
12(1)   The interim executive director may be the permanent
13    executive director and shall not be prohibited from
14    employment with the board in any other position.
15(2)   Between the effective date of this paragraph and
16    when the board is fully constituted, staffed and operational,
17    it is the intent of the General Assembly for regulated
18    materials and regulated activities to be administered by the
19    interim executive director on a temporary basis.
20(3)   The interim executive director and executive
21    director shall be considered employees of the board for
22    compensation purposes.
23    (h)   Background investigation.--Appointees shall be subject
24 to a background investigation conducted by the Pennsylvania
25 State Police in accordance with this act.
26    (i)   Qualifications and restrictions.--
27(1)   Each member at the time of appointment shall be at
28    least 25 years of age and shall have been a resident of this
29    Commonwealth for a period of at least one year immediately
30    preceding appointment. Each member shall continue to remain a
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1  resident of this Commonwealth during the term of membership
2  on the board.
3      (2)   Except for ex officio members, a person may not be
4  appointed a member of the board or be employed by or be an
5  independent contractor of the board if that individual is a
6  public official or party officer, as those terms are defined
7  in 4 Pa.C.S. § 1512 (relating to financial and employment
8  interests), in this Commonwealth or any of its political
9  subdivisions.
10      (3)   Each member, employee and independent contractor of
11  the board shall sign an agreement to not disclose
12  confidential information.
13      (4)   A member, employee or independent contractor of the
14  board or another agency having regulatory authority over the
15  board or cannabis organizations may not be employed, hold any
16  office or position or be engaged in any activity which is
17  incompatible with the position, employment or contract.
18      (5)   A member may not engage in any business, employment
19  or vocation for which the member receives a salary,
20  compensation or fee for services rendered which is in excess
21  of 15% of the member's gross annual salary as a member of the
22  board. For purposes of this paragraph, the terms "salary,"
23  "compensation" and "fee" do not include any of the following:
24(i)    Passive or unearned income, including interest,
25      dividends or capital gains from the sale of assets or
26      securities held for investment purposes.
27(ii)    Health care benefits or retirement, pension or
28      annuity payments.
29(iii)   Amounts received from a family-controlled
30      trade or business in which both personal services and
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1      capital are income-producing factors, provided that the
2      personal services actually rendered by the member do not
3      generate a significant amount of income.
4(iv)   Director's fees attributable to board
5      membership of a corporate or nonprofit body or board or
6      reimbursement for expenses incurred in connection with
7      board membership.
8      (6)   A member may not be paid or receive any fee or other
9  compensation for any activity related to the duties or
10  authority of the board other than the salary and expenses
11  provided by law.
12      (7)   A member, employee or independent contractor of the
13  board may not participate in a hearing, proceeding or other
14  matter in which the member, employee or independent
15  contractor, or an immediate family member thereof, has a
16  financial interest in the subject matter of the hearing or
17  proceeding or other interest that could be substantially
18  affected by the outcome of the hearing or proceeding without
19  first fully disclosing the nature of the interest to the
20  board and other persons participating in the hearing or
21  proceeding. The board shall determine if the interest is a
22  disqualifying interest that requires the disqualification or
23  nonparticipation of an employee or independent contractor.
24  For the purposes of this paragraph, the term "immediate
25  family" shall mean a spouse, parent, brother, sister or
26  child.
27      (8)   At the time of appointment and annually thereafter,
28  each member shall disclose the existence of any financial
29  interest in any applicant, permitted entity, intermediary,
30  subsidiary or holding company thereof held by the member or
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1  known to be held by the member's immediate family. The
2  disclosure statement shall be filed with the executive
3  director of the board and with the appointing authority for
4  the member and shall be open to inspection by the public at
5  the office of the board during the normal business hours of
6  the board for the duration of the member's term and for two
7  years after the member leaves office. For the purposes of
8  this paragraph, the term "immediate family" shall mean a
9  spouse, parent, brother, sister or child.
10      (9)    Prior to being sworn as a member, an appointee and
11  the appointee's immediate family shall divest any financial
12  interest in any applicant, permitted entity, intermediary,
13  subsidiary or holding company thereof owned or held by the
14  appointee or known to be held by the appointee's immediate
15  family. For the duration of the member's term and for one
16  year thereafter, the member and the member's immediate family
17  may not acquire a financial interest in any applicant,
18  permitted entity, intermediary, subsidiary or holding company
19  thereof. For purposes of this paragraph, the term "immediate
20  family" shall mean a spouse and any minor or unemancipated
21  child.
22      (10)   Prior to entering into employment or a contract
23  with the board and annually thereafter, an employee or
24  independent contractor shall disclose the existence of any
25  financial interest in any applicant, permitted entity,
26  intermediary, subsidiary or holding company thereof owned or
27  held by the employee or independent contractor or known to be
28  held by the immediate family of the employee or independent
29  contractor. The disclosure statement shall be filed with the
30  board and shall be open to inspection by the public at the
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1  office of the board during the normal business hours of the
2  board and for two years after termination of employment or a
3  contract with the board. For purposes of this paragraph, the
4  term "immediate family" shall mean a spouse, parent, brother,
5  sister or child.
6      (11)   Prior to entering into employment or contracting
7  with the board, an employee or independent contractor and the
8  employee's or independent contractor's immediate family shall
9  divest any financial interest in any applicant, permitted
10  entity, intermediary, subsidiary or holding company thereof,
11  owned or held by the employee or independent contractor or
12  known to be held by the immediate family of the employee or
13  independent contractor. For the duration of the employee's
14  employment with the board or the independent contractor's
15  contract with the board and for one year thereafter, the
16  employee or independent contractor and the immediate family
17  thereof shall not acquire, by purchase, gift, exchange or
18  otherwise, any financial interest in any applicant, or
19  permitted entity, intermediary, subsidiary or holding company
20  thereof. For purposes of this paragraph, the term "immediate
21  family" shall mean a spouse and any minor or unemancipated
22  child.
23      (12)   A member, employee or independent contractor of the
24  board may not directly or indirectly solicit, request,
25  suggest or recommend to any applicant, permitted entity,
26  intermediary, subsidiary or holding company thereof or to any
27  principal, employee, independent contractor or agent thereof,
28  the appointment or employment of any person in any capacity
29  by the applicant, permitted entity, intermediary, subsidiary
30  or holding company thereof for a period of two years from the
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1  termination of term of office, employment or contract with
2  the board.
3      (13)     A member may not accept employment with any
4  applicant, permitted entity or an affiliate, intermediary,
5  subsidiary or holding company thereof for a period of two
6  years from the termination of term of office.
7      (14)     A former member may not appear before the board in
8  any hearing or proceeding or participate in any other
9  activity on behalf of any applicant, permitted entity or an
10  affiliate, intermediary, subsidiary or holding company of an
11  applicant or permitted entity, or any other permittee, for a
12  period of two years from the termination of term of office.
13      (15)     A member who has been convicted during the member's
14  term in any domestic or foreign jurisdiction of a felony
15  criminal offense related to the manufacture, delivery or
16  possession with intent to manufacture or deliver a controlled
17  substance in violation of the act of April 14, 1972 (P.L.233,
18  No.64), known as The Controlled Substance, Drug, Device and
19  Cosmetic Act, shall, upon conviction, be automatically
20  removed from the board and shall be ineligible to become a
21  member in the future. If an ex officio member is convicted
22  during the ex officio member's term in any domestic or
23  foreign jurisdiction of a felony criminal offense related to
24  the manufacture, delivery or possession with intent to
25  manufacture or deliver a controlled substance in violation of
26  The Controlled Substance, Drug, Device and Cosmetic Act, the
27  ex officio member shall, upon conviction, be automatically
28  removed from the board, and a designee shall be designated
29  under subsection (f) to serve the remainder of the ex officio
30  member's term.
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1      (16)    The following shall apply to an employee of the
2  board whose duties substantially involve licensing,
3  enforcement, development of law, promulgation of regulations
4  or development of policy relating to cannabis or who has
5  other discretionary authority which may affect or influence
6  the outcome of an action, proceeding or decision, including
7  the executive director, bureau directors and attorneys:
8(i)    The individual may not, for a period of two
9      years following termination of employment, accept
10      employment with or be retained by an applicant or
11      permitted entity or by an affiliate, intermediary,
12      subsidiary or holding company of an applicant or
13      permitted entity.
14(ii)    The individual may not, for a period of two
15      years following termination of employment, appear before
16      the board in any hearing or proceeding or participate in
17      any activity on behalf of any applicant, permittee or
18      permitted entity or on behalf of an affiliate,
19      intermediary, subsidiary or holding company of any
20      applicant, permittee or permitted entity.
21(iii)    An applicant or a permitted entity or an
22      affiliate, intermediary, subsidiary or holding company of
23      an applicant or a permitted entity may not, until the
24      expiration of two years following termination of
25      employment, employ or retain the individual. Violation of
26      this subparagraph shall result in termination of the
27      individual's employment and subject the violator to
28      penalties determined by the board.
29(iv)    A prospective employee who, upon employment,
30      would be subject to this paragraph must, as a condition
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1      of employment, sign an affidavit that the prospective
2      employee will not violate subparagraph (i) or (ii). If
3      the prospective employee fails to sign the affidavit, the
4      board shall rescind any offer of employment and may not
5      employ the individual.
6      (17)    The following shall apply to an independent
7  contractor and to an employee of an independent contractor
8  whose duties substantially involve consultation relating to
9  licensing, enforcement, development of law, promulgation of
10  regulations or development of policy, relating to cannabis:
11(i)    The person may not, for a period of one year
12      following termination of the contract with the board, be
13      retained by an applicant or a permitted entity or by an
14      affiliate, intermediary, subsidiary or holding company of
15      an applicant or a permitted entity.
16(ii)    The person may not, for a period of two years
17      following termination of the contract with the board,
18      appear before the board in a hearing or proceeding or
19      participate in activity on behalf of any applicant,
20      permittee or permitted entity or on behalf of an
21      affiliate, intermediary, subsidiary or holding company of
22      any applicant, permittee or permitted entity.
23(iii)    An applicant or a permitted entity or an
24      affiliate, intermediary, subsidiary or holding company of
25      an applicant or a permittee may not, until the expiration
26      of one year following termination of the contract with
27      the board, employ or retain the person. A knowing
28      violation of this subparagraph shall result in
29      termination of the person's employment and subject the
30      violator to penalties determined by the board.
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1(iv)    Each contract between the board and an
2      independent contractor which involves the duties provided
3      under this paragraph shall contain a provision requiring
4      the independent contractor to sign an affidavit that the
5      independent contractor will not violate subparagraph (i)
6      or (ii). If the independent contractor fails to sign the
7      affidavit, the board may not enter into the contract.
8(v)    An independent contractor shall require a
9      prospective employee whose employment would involve the
10      duties provided under this paragraph to sign an affidavit
11      that the prospective employee will not violate
12      subparagraph (i) or (ii). If the prospective employee
13      fails to sign the affidavit, the independent contractor
14      shall rescind any offer of employment and may not employ
15      the individual.
16      (18)    Nothing under paragraph (16) or (17) shall prevent
17  a current or former employee of the board, a current or
18  former independent contractor or a current or former employee
19  of an independent contractor from appearing before the board
20  in any hearing or proceeding as a witness or testifying as to
21  any fact or information.
22      (19)    The State Ethics Commission shall issue a written
23  determination of whether a person is subject to paragraph
24  (16) or (17) upon the written request of the person or the
25  person's employer or potential employer. A person that relies
26  in good faith on a determination issued under this paragraph
27  shall not be subject to any penalty for an action taken,
28  provided that all material facts provided in the request for
29  the determination are correct.
30      (20)    The State Ethics Commission shall publish a list of
20250SB0049PN1805  - 19 -
1    all employment positions within the board and employment
2    positions within independent contractors whose duties would
3    subject the individuals in those positions to the provisions
4    of paragraphs (16) and (17). The board and each independent
5    contractor shall assist the State Ethics Commission in the
6    development of the list, which shall be transmitted by the
7    State Ethics Commission to the Legislative Reference Bureau
8    for publication in the Pennsylvania Bulletin biennially and
9    posted by the board on the board's publicly accessible
10    Internet website. Upon request, employees of the board and
11    each independent contractor shall have a duty to provide the
12    State Ethics Commission with adequate information to
13    accurately develop and maintain the list. The State Ethics
14    Commission may impose a civil penalty under 65 Pa.C.S. §
15    1109(f) (relating to penalties) upon an individual who fails
16    to cooperate with the State Ethics Commission under this
17    paragraph. An individual who relies in good faith on the list
18    published by the State Ethics Commission shall not be subject
19    to any penalty for a violation of paragraph (16) or (17).
20(21)   If a member of the board violates any provision of
21    this section, the appointing authority may remove the
22    individual from the board. A member removed under this
23    paragraph shall, for a period of five years following
24    removal, be prohibited from future appointment to the board
25    and shall be prohibited from applying for a permit or other
26    authorization under the Medical Marijuana Act and from
27    becoming an independent contractor or registering as a
28    permitted entity representative.
29    (j)   Fiduciary relationship.--A member or employee of the
30 board shall serve as a fiduciary of the Commonwealth.
20250SB0049PN1805  - 20 -
1    (k)   Standard of care.--Members shall exercise the standard
2 of care required by 20 Pa.C.S. Ch. 73 (relating to
3 municipalities investments) in the performance of their duties
4 under this act.
5    (l)   Liability.--Members shall not be personally liable for
6 any of the following:
7(1)   Obligations of the board.
8(2)   Actions which were within the scope of their office
9    and made in good faith.
10    (m)   Compensation.--
11(1)   The Executive Board as established in the act of
12    April 9, 1929 (P.L.177, No.175), known as The Administrative
13    Code of 1929, shall establish the compensation of the
14    members.
15(2)   Members shall be reimbursed for all necessary and
16    actual expenses.
17(3)   Members shall be eligible for retirement under the
18    State Employees' Retirement Code and shall, if the member
19    elects to participate, be considered a State employee for the
20    purposes of 71 Pa.C.S. Pt. XXV (relating to retirement for
21    State employees and officers).
22    (n)   Chairperson.--The chairperson of the board shall be
23 selected by a majority vote of appointed and qualified members.
24    (o)   Appointments.--The appointing authorities shall make
25 their initial appointments within 30 days of the effective date
26 of this subsection. Appointments to fill a vacancy shall be made
27 within 30 days of the creation of the vacancy. No appointment
28 shall be final until receipt by the appointing authority of the
29 required background investigation of the appointee by the
30 Pennsylvania State Police which shall be completed within 15
20250SB0049PN1805  - 21 -
1 days.
2    (p)   Prohibition against nepotism.--A member may not solicit,
3 request, suggest or recommend the employment by the board of any
4 individual related within the second degree of consanguinity to
5 the member as provided in 23 Pa.C.S. § 1304(e) (relating to
6 restrictions on issuance of license) or the spouse of the
7 individual.
8    (q)   Employment requirements.--
9(1)   Prospective employees shall submit an application
10    and a personal disclosure form to the board which shall
11    include a complete criminal history, including convictions
12    and current charges for all felonies and misdemeanors.
13(2)   Prospective employees shall be required to undergo
14    testing which detects the presence of illegal substances in
15    the body.
16(3)   The board shall obtain fingerprints and photographs
17    for each prospective employee consistent with the standards
18    adopted by the Pennsylvania State Police.
19(4)   The board shall verify the identification,
20    employment and education of each prospective employee,
21    including:
22(i)    Legal name, including any alias.
23(ii)    All educational institutions attended
24regardless of graduation status.
25(iii)    Places of residence for the past 10 years.
26(iv)    Employment history for the past 15 years.
27(5)   The board may not hire a prospective employee if the
28    prospective employee:
29(i)    has been convicted of a crime that bears a close
30relationship to the duties and responsibilities of the
20250SB0049PN1805  - 22 -
1position for which employment is sought;
2(ii)    has been dismissed from other employment for
3gross misconduct; or
4(iii)    has intentionally made a false statement
5concerning a material fact in connection with the
6application to the board.
7(6)   The board may not employ a person unless the
8    requirements of paragraphs (1), (2), (3) and (4) have been
9    met. This paragraph shall apply only to persons employed
10    after the effective date of this paragraph.
11(7)   The board shall:
12(i)    Immediately refer any criminal matter involving
13an employee to law enforcement.
14(ii)    Develop a disciplinary process for an employee
15charged with a crime or with gross misconduct.
16(iii)    Immediately suspend from employment any
17employee charged with a felony.
18(iv)    Develop a process to discipline all other
19instances of misconduct.
20(8)   Disciplinary action shall be instituted promptly
21    against an employee who, while on or off duty, engages in
22    serious misconduct which may bring the board into disrepute.
23    (r)   Budgetary impasse.--If, in the event of a budgetary or
24 other fiscal crisis, the Governor orders the furlough of
25 Commonwealth employees, the board and its employees whose duties
26 involve the regulation and oversight of cannabis shall not be
27 subject to furlough and shall continue to perform their duties
28 of employment.
29    (s)   Definitions.--As used in this section, the following
30 words and phrases shall have the meanings given to them in this
20250SB0049PN1805  - 23 -
1 subsection unless the context clearly indicates otherwise:
2    "Financial interest."       An ownership, property, leasehold or
3 other beneficial interest in a cannabis organization. The term
4 does not include an interest which is held or deemed to be held
5 in any of the following:
6(1)   Securities that are held in a pension plan, profit-
7    sharing individual retirement account, tax-sheltered annuity,
8    a plan established under 26 U.S.C. § 457 (relating to
9    deferred compensation plans of State and local governments
10    and tax-exempt organizations), deferred compensation plan
11    whether qualified or not qualified under 26 U.S.C. (relating
12    to Internal Revenue Code) or other retirement plan that:
13(i)    is not self-directed by the individual; and
14(ii)    is advised by an independent investment adviser
15who has sole authority to make investment decisions with
16respect to contributions made by the individual to these
17plans.
18(2)   A tuition account plan organized and operated under
19    26 U.S.C. § 529 (relating to qualified tuition programs) that
20    is not self-directed by the individual.
21(3)   A mutual fund where the interest owned by the mutual
22    fund in a cannabis organization does not constitute a
23    controlling interest.
24 Section 304.      Code of conduct.
25    (a)   Scope.--The board shall adopt a comprehensive code of
26 conduct prior to the consideration of any permit or registration
27 application. The code of conduct shall supplement all other
28 requirements under the Medical Marijuana Act and 65 Pa.C.S. Pt.
29 II (relating to accountability) and shall provide guidelines
30 applicable to members, employees, independent contractors of the
20250SB0049PN1805  - 24 -
1 board and the immediate families of the members, employees and
2 independent contractors to enable them to avoid any perceived or
3 actual conflict of interest and to promote public confidence in
4 the integrity and impartiality of the board. At a minimum, the
5 code of conduct adopted under this section shall include
6 restrictions under subsection (b).
7    (b)   Restrictions.--A member of the board shall:
8(1)   Not accept any discount, gift, gratuity,
9    compensation, travel, lodging or other thing of value,
10    directly or indirectly, from any applicant, permittee or any
11    representative thereof.
12(2)   Disclose and disqualify the member from any
13    proceeding in which the member's objectivity, impartiality,
14    integrity or independence of judgment may be reasonably
15    questioned due to the member's relationship or association
16    with a party connected to any proceeding or a person
17    appearing before the board.
18(3)   Refrain from any financial or business dealing which
19    would tend to reflect adversely on the member's objectivity,
20    impartiality or independence of judgment.
21(4)   Not hold or campaign for public office, hold an
22    office in any political party or political committee,
23    contribute to or solicit contributions to a political
24    campaign, party, committee or candidate, publicly endorse a
25    candidate or actively participate in a political campaign.
26(5)   Not solicit funds for any charitable, educational,
27    religious, health, fraternal, civic or other nonprofit entity
28    from an applicant, cannabis organization, subsidiary,
29    intermediary or holding company of a cannabis organization,
30    interested party or cannabis organization representative.
20250SB0049PN1805  - 25 -
1(6)   Not meet or engage in discussions with any
2    applicant, permitted entity or a cannabis organization
3    representative unless the meeting or discussion occurs on the
4    business premises of the board and is recorded in a log
5    maintained for this purpose. The log shall be available for
6    public inspection during the regular business hours of the
7    board. This paragraph shall not apply to meetings of the
8    board to consider matters requiring the physical inspection
9    of the equipment or premises of an applicant or a cannabis
10    organization at their location.
11(7)   Avoid impropriety and the appearance of impropriety
12    at all times and observe standards and conduct that promote
13    public confidence in the oversight of cannabis.
14(8)   Comply with any other laws, rules or regulations
15    relating to the conduct of a member.
16    (c)   Ex officio members.--The restrictions under subsection
17 (b)(5) shall not apply to ex officio members.
18 Section 305.    Applicability of other statutes.
19    (a)   Applicability to board.--The board shall be subject to
20 the following acts:
21(1)   The act of July 19, 1957 (P.L.1017, No.451), known
22    as the State Adverse Interest Act.
23(2)   The act of February 14, 2008 (P.L.6, No.3), known as
24    the Right-to-Know Law.
25(3)   The provisions of 65 Pa.C.S. Chs. 7 (relating to
26    open meetings) and 11 (relating to ethics standards and
27    financial disclosure).
28    (b)   Status of board.--
29(1)   The board shall be considered an independent agency
30    for the purposes of the following:
20250SB0049PN1805  - 26 -
1(i)    The act of October 15, 1980 (P.L.950, No.164),
2known as the Commonwealth Attorneys Act.
3(ii)    62 Pa.C.S. Pt. I (relating to Commonwealth
4Procurement Code). The expediting of the payment of
5revenue to the Commonwealth shall not be grounds for an
6emergency procurement by the board.
7(2)   The board shall be considered an agency for the
8    purposes of the following:
9(i)    The act of July 31, 1968 (P.L.769, No.240),
10referred to as the Commonwealth Documents Law.
11(ii)    The act of June 25, 1982 (P.L.633, No.181),
12known as the Regulatory Review Act.
13 Section 306.     Board meetings.
14    (a)   Meetings.--
15(1)   The board shall meet at the call of the chairperson
16not less than two times per month.
17(2)   Advisory committees or subcommittees of the board
18    shall meet as often as deemed necessary by the board.
19(3)   Within 30 days of the appointment of the initial
20    members of the board, the board shall conduct its first
21    meeting.
22    (b)   Designees.--In the case of absence of the chairperson
23 during a meeting of the board, the chairperson of the board may
24 designate another member to serve as a substitute chairperson
25 for the meeting.
26    (c)   Quorum.--
27(1)   A majority of the members of the board shall
28    constitute a quorum of the board for the purpose of
29    organizing the authority and conducting official business.
30(2)   Only members of the board who are physically present
20250SB0049PN1805  - 27 -
1    at a meeting of the board or able to participate fully in the
2    deliberations by appropriate telecommunications means shall
3    count toward a quorum of the board.
4(3)   If a quorum is not present, a hearing of the board
5    may still take place.
6    (d)   Qualified majority vote.--
7(1)   Except as permitted in paragraphs (2) and (3), any
8    action, including the approval, issuance, denial or
9    conditioning of any permit by the board or the making of any
10    order or the ratification of any permissible act done or
11    order made by one or more of the members, shall require a
12    qualified majority vote consisting of at least one
13    gubernatorial appointee and the four legislative appointees.
14(2)   Any action to suspend or revoke, not renew, void or
15    require forfeiture of a permit, to impose any administrative
16    fine or penalty or to issue cease and desist orders or
17    similar enforcement actions shall require a majority vote of
18    all the members appointed to the board.
19(3)   In addition to the provisions of this act or 65
20    Pa.C.S. § 1103(j) (relating to restricted activities), a
21    member shall disclose the nature of the member's
22    disqualifying interest, disqualify the member and abstain
23    from voting in a proceeding under this act in which the
24    member's objectivity, impartiality, integrity or independence
25    of judgment may be reasonably questioned, as provided in
26    section 304(b)(7). If a legislative appointee has
27    disqualified themself, the qualified majority shall consist
28    of all the remaining legislative appointees and at least two
29    gubernatorial appointees.
30 Section 307.    Board records.
20250SB0049PN1805  - 28 -
1    (a)   Record of proceedings.--The board shall cause to be made
2 and kept a record of all proceedings held at public meetings of
3 the board. The verbatim transcript of the proceedings shall be
4 the property of the board and shall be prepared by the board
5 upon the request of any board member or upon the request of any
6 other person and the payment by that person of the costs of
7 preparation.
8    (b)   Applicant information delivered to Governor and General
9 Assembly under the Medical Marijuana Act.--
10(1)   The board shall maintain a list of all applicants
11    for permits. The list shall include a record of all actions
12    taken with respect to each applicant. The list shall be open
13    to public inspection during the normal business hours of the
14    board.
15(2)   Information under paragraph (1) regarding any
16    applicant whose permit has been denied, revoked or not
17    renewed shall be removed from the list after seven years from
18    the date of the action.
19    (c)   Other files and records.--The board shall maintain other
20 files and records as it may deem appropriate.
21    (d)   Confidentiality of information.--All information
22 submitted by an applicant or obtained by the board as part of a
23 background investigation from any source shall be considered
24 confidential. Except as necessary to carry out the criminal
25 history investigation specified under this act, the information
26 shall be withheld from public disclosure in whole or in part,
27 except that any information shall be released upon the lawful
28 order of a court of competent jurisdiction or, with the approval
29 of the Attorney General, to a duly authorized law enforcement
30 agency or shall be released to the public, in whole or in part,
20250SB0049PN1805  - 29 -
1 to the extent that the release is requested by an applicant and
2 does not otherwise contain confidential information about
3 another person. The board may not require an applicant to waive
4 any confidentiality provided for in this subsection as a
5 condition for the approval of a permit or any other action of
6 the board. Any person who violates this subsection shall be
7 administratively disciplined by discharge, suspension or other
8 formal disciplinary action as the board deems appropriate.
9    (e)   Notice.--Notice of the contents of any information,
10 except to a duly authorized law enforcement agency under this
11 section, shall be given to any applicant or permittee in a
12 manner prescribed by the rules and regulations adopted by the
13 board.
14    (f)   Information held by department.--Files, records, reports
15 and other information in the possession of the department
16 pertaining to permits shall be made available to the board as
17 may be necessary to the effective administration of this act.
18 Section 308.    Regulations.
19    (a)   Temporary regulation.--The board shall promulgate
20 temporary regulations no later than 90 days from the effective
21 date of this subsection. The temporary regulations under this
22 subsection shall expire not later than two years after the
23 effective date of this subsection and shall not be subject to
24 any of the following:
25(1)   Section 612 of the act of April 9, 1929 (P.L.177,
26    No.175), known as The Administrative Code of 1929.
27(2)   Sections 201, 202, 203, 204 and 205 of the act of
28    July 31, 1968 (P.L.769, No.240), referred to as the
29    Commonwealth Documents Law.
30(3)   Sections 204(b) and 301(10) of the act of October
20250SB0049PN1805  - 30 -
1    15, 1980 (P.L.950, No.164), known as the Commonwealth
2    Attorneys Act.
3(4)   The act of June 25, 1982 (P.L.633, No.181), known as
4    the Regulatory Review Act.
5    (a.1)   Failure to promulgate regulations.--If the board fails
6 to promulgate regulations under subsection (a), regulations
7 promulgated under the Medical Marijuana Act shall apply.
8    (b)   Compliance deadline.--A current cannabis organization on
9 the effective date of this subsection that is authorized to
10 cultivate, process, dispense or transport cannabis shall have 90
11 days from the effective date of a new temporary regulation
12 promulgated by the board under subsection (a) to comply with the
13 temporary regulation.
14    (c)   Regulations.--The board shall promulgate regulations,
15 with input from stakeholders, to implement the provisions of
16 this act, including all of the following:
17(1)   Regulation of cannabis and all its derivatives.
18(2)   Enforcement procedures for cannabis and all its
19    derivatives.
20(3)   The types of permits issued by the board.
21(4)   The methods and forms of permit applications,
22    including timeline, fees and minimum requirements.
23(5)   Procedures to process and competitively score permit
24    applications.
25(6)   Procedures to process administrative requests,
26    including changes of ownership and location.
27(7)   Security procedures for cannabis organizations.
28(8)   Enforcement procedures, including fines, suspensions
29    and revocations.
30(9)   Ownership and financial disclosure procedures and
20250SB0049PN1805  - 31 -
1  requirements for cannabis organizations, including record
2  keeping requirements.
3      (10)    Procedures and requirements concerning the
4  divestiture of a beneficial ownership interest by a person
5  found unqualified.
6      (11)    Procedures, processes and requirements for
7  transfers of ownership, including the involvement of a
8  publicly traded corporation.
9      (12)    Seed-to-sale tracking system procedures. The system
10  shall be the record or a secondary electronic tracking system
11  used by a cannabis organization or testing laboratory that
12  meets all of the following criteria:
13(i)    The system shall capture everything that happens
14      to a cannabis plant from seed and cultivation through the
15      growth, harvest and manufacturing of cannabis, including
16      testing and transportation, to final sale.
17(ii)    The system shall use unique plant
18      identification and unique batch identification.
19(iii)    The system shall track the involvement of an
20      agent or permittee with cannabis products.
21(iv)    The system shall integrate with a secondary
22      system used by a cannabis organization or a cannabis
23      testing facility, if applicable, in a form and manner
24      determined by the board.
25(v)    The system shall allow for two-way
26      communication, automation and a secure application-
27      programming interface with a cannabis organization's
28      enterprise resource planning, inventory, accounting and
29      point-of-sale software or a laboratory's laboratory
30      information system.
20250SB0049PN1805  - 32 -
1(vi)    The system shall include a secure application
2      program interface capable of accessing all data required
3      to be transmitted to the board to ensure compliance with
4      the operational reporting requirements specified under
5      this act and any regulations promulgated by the board.
6(vii)    The board and the board's contracted seed-to-
7      sale vendor shall allow cannabis business establishments
8      to utilize any enterprise resource planning, inventory,
9      accounting and point-of-sale software of the cannabis
10      business establishment's choosing or a laboratory
11      information system of the laboratory's choosing, provided
12      that the systems must integrate through application-
13      programming interface to the State's seed-to-sale
14      software.
15(viii)    The board shall not require cannabis business
16      establishments to utilize the board's contracted seed-to-
17      sale vendor as a point-of-sale-system.
18      (13)    Procedures and requirements for curbside pickup
19  services offered by dispensing organizations.
20      (14)    Transportation requirements, including:
21(i)    Establishing procedures and requirements for
22      home delivery services by dispensing organizations and
23      third-party transporters.
24(ii)    A requirement that transportation between
25      cannabis organizations occurs in secured vehicles but
26      allowing for transportation in vehicles other than those
27      owned and operated by cannabis organizations for
28      purchasers to transport cannabis.
29(iii)    Details required on transportation manifests.
30(iv)    Policies encouraging bulk shipment where
20250SB0049PN1805  - 33 -
1      appropriate.
2(v)    Requirements relating to shipping containers and
3      packaging.
4(vi)    The manner in which trucks, vans, trailers or
5      other carriers will be secured.
6(vii)    Security systems that include a numbered seal
7      on the trailer.
8(viii)    Obtaining copies of drivers' licenses and
9      registrations and other information related to security
10      and tracking.
11(ix)    Use of GPS systems.
12(x)    Number of drivers or other security required to
13      ensure against storage or in-transit losses.
14(xi)    Recordkeeping for delivery and receipt of
15      cannabis products.
16(xii)    Procedures for storing cannabis temporarily at
17      warehousing and distribution permit holder facilities.
18      (15)    Labeling requirements consistent with industry best
19  practices, including:
20(i)    Standard symbols and warnings where the board
21      shall review symbols from other jurisdictions where
22      cannabis sales are permitted. As national standards are
23      available, the board shall plan to adopt national
24      standards.
25(ii)    An itemization, including weight of all
26      cannabinoid and terpene ingredients specified for the
27      product. The requirements of this subparagraph may be
28      satisfied through the use of electronic QR codes as
29      prescribed by the board.
30      (16)    Advertising and marketing regulations that balance
20250SB0049PN1805  - 34 -
1  the ability of a cannabis organization to engage in
2  reasonable marketing and promotional activities that are not
3  directed at minors to promote the use of cannabis.
4      (17)    Product safety regulations, including:
5(i)    Regulations consistent with best practices for
6      food products, except where necessary modifications are
7      required due to the active compounds in the cannabis
8      plant.
9(ii)    Standards for packaging to address freshness,
10      tamper evidence and limiting access to children.
11(iii)    Standard symbols and warnings where the board
12      shall review symbols and warnings from other
13      jurisdictions where cannabis sales are permitted. As
14      national standards are made available, the board shall
15      plan to adopt national standards.
16(iv)    A prohibition on packaging that is likely to
17      appeal to minors.
18      (18)    Requirements that cannabis organizations use
19  standards and practices that align with United States
20  Department of Agriculture and Food and Drug Administration
21  standards, when appropriate for the purposes of this act.
22      (19)    Procedures for the investigation and enforcement of
23  unregulated and unpermitted cultivation, processing,
24  manufacturing, sale, dispensing or distribution of cannabis
25  or products intended for consumption or inhalation.
26      (20)    Procedures for medical professionals to be
27  accessible to patients.
28      (21)    Testing standards.
29      (22)    Permissible forms and concentrations.
30      (23)    Restrictions necessary to protect public health and
20250SB0049PN1805  - 35 -
1    safety.
2(24)    Enforcement against unpermitted cannabinoid
3    products.
4    (d)   Compliance deadline.--A permittee shall have 180 days
5 from the effective date of a new regulation promulgated by the
6 board under this section to comply with the new regulation.
7    (e)   Review of current regulations.--When promulgating
8 regulations under this section, the board shall review current
9 regulations promulgated under the Medical Marijuana Act and may
10 implement or revise those regulations.
11 Section 309.     Powers and duties of board.
12    (a)   General powers.--
13(1)    The board shall have general and sole regulatory
14    authority over the manufacture, processing, testing,
15    distribution and sale of cannabis and all consumable
16    cannabinoid products within this Commonwealth, including
17    products containing hemp-derived cannabinoids, marijuana-
18    derived cannabinoids and synthetic cannabinoids. Nothing in
19    this paragraph shall be construed to allow the board to
20    authorize the sale of recreational marijuana absent approval
21    by the General Assembly.
22(2)    The board shall employ individuals, including a
23    chief medical officer and an executive director as provided
24    under section 303(g), as necessary to carry out the powers
25    and duties of the board, who shall serve at the board's
26    pleasure. An employee of the board shall be considered a
27    State employee for purposes of 71 Pa.C.S. Pt. XXV (relating
28    to retirement for State employees and officers). For the
29    purposes of this paragraph, the board shall not be considered
30    an executive or independent agency under the act of October
20250SB0049PN1805  - 36 -
1  15, 1980 (P.L.950, No.164), known as the Commonwealth
2  Attorneys Act.
3      (3)   In addition to employees authorized by the board,
4  each member may employ one special assistant whose
5  classification and compensation shall be established by the
6  board. A special assistant shall be a State employee for
7  purposes of 71 Pa.C.S. Pt. XXV, shall serve at the pleasure
8  of the member and may only be removed by the board for cause.
9      (4)   The board shall establish a system of classification
10  and compensation of its employees and shall not be subject to
11  the provisions of the act of April 9, 1929 (P.L.177, No.175),
12  known as The Administrative Code of 1929, as to
13  classification and compensation for its employees and conduct
14  its activities consistent with the practices and procedures
15  of Commonwealth agencies.
16      (5)   Within 90 days of the effective date of this
17  paragraph, the board shall transmit to the Legislative
18  Reference Bureau for publication in the next available issue
19  of the Pennsylvania Bulletin and publish on the board's
20  publicly accessible Internet website the classification
21  system for all employees of the board.
22      (6)   A request for proposal to conduct investigations of
23  employees and applicants under this act shall include a
24  requirement that an offeror provide the number of employees
25  of the offeror who will be engaged in the conduct of
26  investigations and who are residents of this Commonwealth and
27  annuitants of a Federal, State or local law enforcement
28  agency. Preference shall be given to an offeror with a
29  substantial number of employees who will be engaged in the
30  conduct of investigations and who are residents of this
20250SB0049PN1805  - 37 -
1    Commonwealth and annuitants of a Federal, State or local law
2    enforcement agency.
3    (b)   Specific powers.--The board shall have the specific
4 power and duty:
5(1)   To adopt, use and alter a corporate seal.
6(2)   To pay or satisfy obligations of the board.
7(3)   To sue or be sued, implead and be impleaded or
8    interplead.
9(4)   To contract and execute instruments as necessary to
10    carry out the powers and duties of the board. Contracts for
11    the purchase of supplies, services and construction shall be
12    for a term not to exceed two years.
13(5)   To sell, transfer, convey and dispose of tangible or
14    intangible property owned by the board.
15(6)   To establish, charge and collect fees and fines as
16    authorized by the Medical Marijuana Act and this act.
17(7)   To administer oaths, examine witnesses and issue
18    subpoenas compelling the attendance of witnesses or the
19    production of documents and records or other evidence. This
20    paragraph shall apply to designated officers and employees.
21(8)   To purchase insurance against a loss related to the
22    board's property or assets.
23(8.1)   To retain attorneys, accountants, auditors and
24    financial and other experts to render services as necessary.
25    For the purposes of this paragraph, the board shall be
26    considered an independent agency for purposes of the
27    Commonwealth Attorneys Act.
28(9)   To require background investigations on applicants,
29    permittees, principals, key employees or permittees under the
30    jurisdiction of the board.
20250SB0049PN1805  - 38 -
1      (10)   To enter into an agreement with the Pennsylvania
2  State Police for the reimbursement of actual costs as
3  approved by the board to the Pennsylvania State Police for
4  the investigations. Investigations shall include information
5  in the possession of the Attorney General.
6      (11)   For purposes of enforcement and for purposes of the
7  background investigation, to receive information otherwise
8  protected by 18 Pa.C.S. Ch. 91 (relating to criminal history
9  record information).
10      (12)   To require prospective and existing employees,
11  independent contractors, applicants and permittees to submit
12  to fingerprinting by the Pennsylvania State Police. The
13  Pennsylvania State Police shall submit the fingerprints to
14  the Federal Bureau of Investigation for purposes of verifying
15  the identity of the individual and obtaining records of
16  criminal arrests and convictions.
17      (13)   To require prospective and existing employees,
18  independent contractors, applicants and permittees to submit
19  photographs consistent with the standards of the Commonwealth
20  Photo Imaging Network.
21      (14)   Within six months after the effective date of this
22  paragraph, in a manner that does not impede the immediate
23  implementation of the duties and responsibilities of the
24  board under this act during the immediate two years after the
25  effective date of this paragraph, to develop and implement an
26  affirmative action plan to assure that all persons are
27  accorded equality of opportunity in employment and
28  contracting by the board, its contractors, subcontractors,
29  assignees, lessees, agents, vendors and suppliers.
30      (15)   To promulgate regulations pertaining to the
20250SB0049PN1805  - 39 -
1  operation of the board. The board shall provide the employees
2  necessary for enforcement of this act.
3      (16)     To transmit to the Legislative Reference Bureau for
4  publication each January in the Pennsylvania Bulletin and
5  publish on the board's publicly accessible Internet website a
6  complete list of all persons or entities who applied for or
7  held a cannabis organization permit during the preceding
8  calendar year and all intermediaries, subsidiaries and
9  holding companies thereof and the status of the application
10  or permit.
11      (17)     To prepare and, through the Governor, submit
12  annually to the General Assembly an itemized budget
13  consistent with Article VI of The Administrative Code of 1929
14  consisting of the amounts necessary to be appropriated by the
15  General Assembly out of the accounts established under this
16  act required to meet the obligations accruing during the
17  fiscal period beginning July 1 of the following year.
18      (18)     If, in any year, appropriations for the
19  administration of this act are not enacted by June 30, any
20  funds appropriated for the administration of this act which
21  are unexpended, uncommitted and unencumbered at the end of a
22  fiscal year shall remain available for expenditure by the
23  board or other agency to which they were appropriated until
24  the enactment of appropriation for the ensuing fiscal year.
25      (19)     To promulgate rules and regulations necessary for
26  the administration and enforcement of this act. Except for
27  temporary regulations authorized under this act, regulations
28  shall be adopted as provided under the act of July 31, 1968
29  (P.L.769, No.240), referred to as the Commonwealth Documents
30  Law, and the act of June 25, 1982 (P.L.633, No.181), known as
20250SB0049PN1805  - 40 -
1  the Regulatory Review Act.
2      (20)   To award, deny, deny the renewal of, revoke,
3  condition or suspend any permit provided for in this act if
4  the board finds in its sole discretion that a permittee, or
5  its officers, employees or agents, have furnished false or
6  misleading information to the board or failed to comply with
7  applicable laws or the rules and regulations of the board and
8  that it would be in the public interest to deny, deny the
9  renewal of, revoke, condition or suspend the permit.
10      (21)   Restrict access to confidential information in the
11  possession of the board which has been obtained under this
12  act and ensure that the confidentiality of information is
13  maintained and protected. Records shall be retained by the
14  board for seven years.
15      (22)   Prescribe and require periodic financial reporting
16  and internal control requirements for all cannabis
17  organizations.
18      (23)   Require that each cannabis organization provide to
19  the board its audited annual financial statements, with
20  additional detail as the board from time to time shall
21  require, which information shall be submitted not later than
22  90 days after the end of the cannabis organization's fiscal
23  year.
24      (24)   Prescribe the procedures to be followed by cannabis
25  organizations for any security breach or diversion event that
26  occurs in the operation of cannabis organizations.
27      (25)   Establish procedures for the inspection and
28  certification of compliance of each cannabis organization
29  prior to being deemed operational.
30      (26)   Require each cannabis organization permit applicant
20250SB0049PN1805  - 41 -
1  to provide detailed site plans of its proposed facility which
2  shall be reviewed and approved by the board for the purpose
3  of determining the adequacy of the proposed security and
4  surveillance measures inside and outside the facility.
5  Applicants shall cooperate with the board in making changes
6  to the plans suggested by the board and ensure that the plans
7  as modified and approved are implemented.
8(27)    Consult with members of the Pennsylvania State
9  Police, the Office of Attorney General, State agencies and
10  other persons the board deems necessary for advice regarding
11  the various aspects of the powers and duties imposed on it
12  under this act and its jurisdiction over the authorization
13  and operation of cannabis organization facilities.
14(28)    Enter into contracts with persons for the purposes
15  of carrying out the powers and duties of the board under this
16  act.
17(29)    Appoint committees and subcommittees as necessary.
18  The following shall apply:
19(i)    The chairperson of the board may appoint
20advisory committees that may consist of members,
21nonmembers, outside experts and staff of the board.
22(ii)    Only a board member may be chairperson of an
23advisory committee.
24(iii)    An advisory committee or subcommittee may be
25formed to address and make recommendations on subjects
26determined by the board, including any of the following
27topics:
28(A)   Public health and wellness.
29(B)   Community safety and well-being.
30(C)   Judicial and carceral systems.
20250SB0049PN1805  - 42 -
1(D)   Education.
2(E)   Employment and labor.
3(F)   Business and entrepreneurship.
4(G)   Agriculture and food systems.
5(H)   Medical cannabis program efficiency.
6(iv)    A department, agency, office or other entity of
7      the Commonwealth may cooperate and provide the board or
8      its advisory committees or subcommittees with staff and
9      expertise to assist the board in carrying out the powers
10      and duties under this act.
11(v)    Recognized experts in the subject matter of an
12      advisory committee or subcommittee of the board may be
13      appointed to advise and assist the advisory committee or
14      subcommittee by the board.
15      (30)    Create a cannabis organization registration. The
16  following shall apply:
17(i)    A cannabis organization representative shall
18      register with the board in a manner prescribed by the
19      board, which shall include the name, employer or firm,
20      address, telephone number and the cannabis organization
21      being represented including any and all aliases.
22(ii)    A cannabis organization representative shall
23      have an ongoing duty to update its registration
24      information on an ongoing basis.
25(iii)    The cannabis organization list shall be
26      available for public inspection at the offices of the
27      board and on the board's publicly accessible Internet
28      website.
29      (31)    To issue, notwithstanding section 617(a)(1) of the
30  Medical Marijuana Act, an additional dispensary permit to a
20250SB0049PN1805  - 43 -
1    cannabis organization within 60 days after the cannabis
2    organization submits a complete application for the
3    additional dispensary permit in accordance with procedures
4    established by the board under section 308(c)(4), if the
5    cannabis organization satisfies all of the following:
6(i)    The cannabis organization was an independent
7grower/processor under the Medical Marijuana Act before
8April 12, 2024.
9(ii)    The cannabis organization satisfies the
10applicable requirements for a dispensary permit under
11section 618 of the Medical Marijuana Act.
12 Section 310.     Confidentiality and public disclosure.
13    (a)   Exempt from access.--All personal information obtained
14 by the board relating to agents, patients or purchasers shall be
15 exempt from access under the act of February 14, 2008 (P.L.6,
16 No.3), known as the Right-to-Know Law.
17    (b)   Public records.--The following records are public
18 records and shall be accessible for inspection and duplication
19 in accordance with the Right-to-Know Law:
20(1)   With exceptions for private, security-related and
21    trade secret information, applications for permits submitted
22    by a cannabis organization.
23(2)   Information relating to penalties or other
24    disciplinary actions taken against a cannabis organization or
25    agent by the board for violation of this act.
26 Section 311.     Unauthorized activities and civil penalties.
27    (a)   Unauthorized activities.--
28(1)   A person may not do any of the following:
29(i)    Manufacture, sell, offer for sale, dispense,
30distribute or market an intermediate hemp-derived product
20250SB0049PN1805  - 44 -
1as a final hemp-derived cannabinoid product or directly
2to an end consumer for personal or household use.
3(ii)   Manufacture, sell, offer for sale, dispense,
4distribute or market a hemp-derived cannabinoid product
5that is excluded from the definition of "hemp."
6(2)   In addition to any other penalty provided by Federal
7    or State Law, a person who manufactures, sells or offers for
8    sale, dispenses or distributes cannabis, cannabis
9    concentrates, cannabis flower or any product intended for
10    consumption or inhalation without a permit issued by the
11    board shall be subject to a civil penalty not to exceed
12    $10,000 for each offense. Each day a person engages in
13    unpermitted activity under this subsection shall constitute a
14    separate offense.
15    (b)   Enforcement.--The Attorney General, the board, a State
16 or local law enforcement agency or a local government unit may
17 investigate an unpermitted activity under subsection (a) and
18 engage in enforcement measures, including entering into an
19 intergovernmental agreement to prevent the conduct of an
20 unpermitted activity under subsection (a) or exercise searches,
21 seizures and forfeitures.
22    (c)   Suspension or revocation.--In addition to any other
23 penalty provided by Federal or State law, upon the conduct of a
24 third or subsequent unpermitted activity under subsection (a), a
25 local government unit may suspend, revoke or deny a license,
26 permit or other authorization to conduct business whatsoever,
27 issued by the local government unit and held by the person or
28 for which the person has made application.
29    (d)   Violations.--A violation of subsection (a) is an unfair      <--
30 or deceptive act or practice under the act of December 17, 1968
20250SB0049PN1805  - 45 -
1 (P.L.1224, No.387), known as the Unfair Trade Practices and
2 Consumer Protection Law. All remedies, penalties and authority
3 granted to the Attorney General under that act shall be
4 available for the enforcement of this act.
5    (e)   Actions.--In addition to the authority granted to the
6 Attorney General under this section, an organization or consumer
7 injured by a violation of subsection (a) may bring an action to
8 enjoin an organization retailing, cultivating, manufacturing,
9 distributing or possessing cannabis without a permit and to
10 recover actual damages sustained. A court shall enter judgment
11 in an amount equal to three times actual damages and may award
12 punitive damages in an amount commensurate with actual damages.
13 The court shall award attorney fees and costs to the prevailing
14 party.
15    (D)   VIOLATIONS.--  <--
16(1)   A VIOLATION OF SUBSECTION (A) IS AN UNFAIR OR
17    DECEPTIVE ACT OR PRACTICE UNDER THE ACT OF DECEMBER 17, 1968
18    (P.L.1224, NO.387), KNOWN AS THE UNFAIR TRADE PRACTICES AND
19    CONSUMER PROTECTION LAW.
20(2)   ALL REMEDIES, PENALTIES AND AUTHORITY GRANTED TO THE
21    ATTORNEY GENERAL UNDER THAT ACT SHALL BE AVAILABLE FOR THE
22    ENFORCEMENT OF THIS ACT.
23(3)   THE ATTORNEY GENERAL SHALL HAVE EXCLUSIVE
24    ENFORCEMENT AUTHORITY UNDER THIS SECTION.
25 Section 312.    Cannabis Regulation Fund.
26    (a)   Fund established.--The Cannabis Regulation Fund is
27 established as a separate fund in the State Treasury. Money in
28 the fund is appropriated as specified in subsection (c).
29    (b)   Source of funds.--Fees, taxes and money payable under
30 this act and the Medical Marijuana Act shall be deposited into
20250SB0049PN1805  - 46 -
1 the fund. The money deposited into the fund may only be used for
2 the purposes specified in this section. Any interest accrued
3 shall be deposited into the fund.
4    (c)   Use of proceeds.--After any repayment made under
5 subsection (d), money in the fund is appropriated in accordance
6 with the following percentages:
7(1)   To the board, 55% of the revenue in the fund. Forty
8    percent of the revenue in the fund shall be expended for
9    operations of the board, including outreach efforts and other
10    projects, as required by this act. Fifteen percent of the
11    amount in the fund shall be used by the board to establish
12    the following:
13(i)    a program to assist patients with the cost of
14providing medical marijuana to patients who demonstrate
15financial hardship or need under this act, and the board
16shall develop guidelines and procedures to ensure maximum
17availability to individuals with financial need;
18(ii)    a program to assist patients and caregivers
19with the cost associated with the waiver or reduction of
20fees for identification cards under sections 501(c)(5)
21and 502(a)(2) of the Medical Marijuana Act; and
22(iii)    a program to reimburse caregivers for the cost
23of providing background checks for caregivers.
24(2)   To the Department of Drug and Alcohol Programs, for
25    drug abuse prevention and counseling and treatment services,
26    10% of the revenue in the fund.
27(3)   To the Pennsylvania Commission on Crime and
28    Delinquency, for distribution to local police departments
29    which demonstrate a need relating to the enforcement of this
30    act, 10% of the revenue in the fund.
20250SB0049PN1805  - 47 -
1(4)   The remainder shall be transferred to the General
2    Fund to provide economic relief to this Commonwealth.
3    (d)   Repayment of initial funding.--The board shall repay
4 from the fees and investment earnings of the fund to the General
5 Fund any money appropriated from the General Fund for the
6 initial planning, organization and administration by the board
7 with respect to the establishment of the program at the time of
8 the original enactment of this act.
9    (e)   Transfers.--As soon as practical after the effective
10 date of this subsection, the State Treasurer shall transfer the
11 balance of the Medical Marijuana Program Fund into the Cannabis
12 Regulation Fund.
13    (f)   Prohibition.--The Cannabis Regulation Fund shall not be
14 subject to sweeps, administrative charge-backs or any other
15 fiscal or budgetary maneuver that would transfer money from the
16 Cannabis Regulation Fund into any other fund of the
17 Commonwealth.
18 Section 313.    Report of board.
19    (a)   Issuance.--Eighteen months after the effective date of
20 this subsection and every year on that date thereafter, the
21 board shall issue a report to the Governor and each member of
22 the General Assembly on the general operation of the board and
23 performance of the operations of cannabis entities and
24 permittees, including sales during the previous year, all taxes,
25 fees, fines and other revenues collected and, where appropriate,
26 disbursed, the costs of operation of the board, all hearings
27 conducted and the results of the hearings and other information
28 that the board deems necessary and appropriate.
29    (b)   Reports to General Assembly.--The board shall conduct an
30 ongoing review of the operation of this act and the impact of
20250SB0049PN1805  - 48 -
1 cannabis in this Commonwealth, including reviews of other
2 jurisdictions, Federal laws and academic research. The board
3 shall submit an annual report to the General Assembly by
4 December 30. The report shall be submitted to the Majority
5 Leader and the Minority Leader of the Senate and the Majority
6 Leader and the Minority Leader of the House of Representatives
7 and the chairperson and minority chairperson of the standing
8 committees in the Senate and the chairperson and minority
9 chairperson of the standing committees in the House of
10 Representatives with jurisdiction over the board. The report
11 shall be posted by the board on its publicly accessible Internet
12 website.
13 Section 314.    Authority.
14    (a)     Sole authority.--The board shall have general and sole
15 regulatory authority over the conduct of cannabis or related
16 activities as described in this act and shall administer and
17 enforce the provisions of this act. The board shall have all the
18 powers necessary or convenient to carry out and effectuate its
19 purposes in administering the cannabis program.
20    (b)     Granted authority.--An authority granted to a
21 Commonwealth agency or Commonwealth employee or appointee under
22 this act shall be given to the Commonwealth agency or employee
23 or appointee empowered to permit, discipline, revoke, regulate
24 or make regulations under this act.
25 Section 315.    Transfer of authority.
26    (a)     Department of Health.--The Department of Health's
27 oversight of the medical marijuana program shall be transferred
28 to the board. All authority, permits, information, documents,
29 databases and necessary information of the medical marijuana
30 program shall be transferred to the board.
20250SB0049PN1805  - 49 -
1    (b)   Process.--The transfer under subsection (a) shall begin
2 on the earlier of 14 days after the effective date of this
3 subsection or the day after an interim executive director is
4 confirmed by the Senate and be completed within 180 days. The
5 following shall apply:
6(1)   The board shall exercise the authority and perform
7    the duties of the Department of Health.
8(2)   The executive director shall exercise the authority
9    and perform the duties of the Secretary of Health.
10(3)   Any reference to the Department of Health which
11    concerns the powers or duties specified shall be deemed a
12    reference to the board.
13(4)   Any reference to the Secretary of Health which
14    concerns the powers or duties specified shall be deemed a
15    reference to the executive director.
16(5)   The following are transferred to the board:
17(i)    All personnel, allocations, appropriations,
18equipment, files, permits, records, contracts,
19agreements, obligations and other materials which are
20used, employed or expended by the Department of Health in
21connection with the functions transferred under this
22section to the board and as if the contracts, agreements
23and obligations had been incurred or entered into by the
24board.
25(ii)    The personnel, appropriations, equipment and
26other items and material transferred to the board under
27this section shall include an appropriate portion of the
28general administrative, overhead and supporting
29personnel, appropriations, equipment and other material
30of the Department of Health and shall include, where
20250SB0049PN1805  - 50 -
1applicable, Federal grants and money and other benefits
2from any Federal program.
3(iii)   All personnel transferred under this section
4shall retain any civil service employment status assigned
5to the personnel.
6(6)   To provide an efficient and cost-minimizing
7    transition, licenses, contracts, deeds and other official
8    actions of the board shall not be affected by the use of the
9    designation as the Department of Health. The board may
10    continue to use the name "Department of Health" on badges,
11    licenses, contracts, deeds, stationery and other official
12    documents until existing supplies are exhausted or new
13    materials are produced.
14(7)   To provide an efficient and cost-minimizing
15    transition, licenses, contracts, deeds and other official
16    actions of the executive director shall not be affected by
17    the use of the designation as the Secretary of Health. The
18    executive director may continue to use the name "Secretary of
19    Health" on badges, licenses, contracts, deeds, stationery and
20    other official documents until existing supplies are
21    exhausted.
22 Section 316.     Construction.
23    (a)   Federal conformity sweep.--Any hemp-derived cannabinoid
24 product that is excluded from the definition of "hemp" under 7
25 U.S.C. § 1639o (relating to definitions), as amended and
26 effective, shall be deemed "cannabis" for purposes of this act.
27    (b)   Compliant hemp products outside board jurisdiction.--A
28 hemp-derived cannabinoid product that meets the definition of
29 "hemp" under this act, including a final hemp-derived
30 cannabinoid product containing not more than 0.4 milligrams
20250SB0049PN1805  - 51 -
1 combined total per container of total tetrahydrocannabinols,
2 including tetrahydrocannabinolic acid, and any other
3 cannabinoids that have similar effects, or are marketed to have
4 similar effects, on humans or animals as a tetrahydrocannabinol
5 as determined by the board, shall not be subject to regulation
6 by the board under this act unless and until otherwise provided
7 by the laws of this Commonwealth.
8CHAPTER 4
9(Reserved)
10CHAPTER 5
11PERMITS
12 Section 501.     (Reserved).
13 Section 502.     (Reserved).
14 Section 503.     Warehousing and distribution permit.
15    (a)    Issuance.--Within 180 days of the effective date of this
16 subsection, the board shall issue warehousing and distribution
17 permits, which authorize the storage, inventory management and
18 transportation of cannabis and cannabis products between
19 cannabis organizations, to eligible applicants. The board shall
20 issue no more than three warehousing and distribution permits at
21 a time.
22    (b)    Scope of permit.--A permit issued under this section
23 shall authorize a permittee to:
24(1)   Store cannabis and cannabis products in secure,
25    compliant facilities.
26(2)   Manage inventory, including tracking and reporting,
27    as required by the board.
28(3)   Transport cannabis and cannabis products between
29    grower/processors, dispensaries and other authorized entities
30    within this Commonwealth.
20250SB0049PN1805  - 52 -
1    (c)   Fees.--
2(1)   A one-time, nonrefundable application fee of $10,000
3    shall be payable to the board upon submission of the initial
4    application for a permit.
5(2)   An annual renewal fee of $5,000 shall be payable to
6    the board for a permit.
7    (d)   Residency requirement.--At least 51% of the ownership
8 interest in the entity applying for a permit must be held by
9 individuals who have been residents of this Commonwealth for at
10 least two consecutive years immediately prior to the application
11 date.
12    (e)   Restriction on other permits.--The holder of a
13 warehousing and distribution permit, including its owners,
14 principals and operators, may not hold a grower-processor,
15 clinical registrant or dispensary permit or have a financial
16 interest in an approved laboratory.
17    (f)   Employee background checks.--
18(1)   All employees of a permittee shall undergo a
19    criminal history background check conducted by the
20    Pennsylvania State Police prior to employment.
21(2)   A permittee shall submit employee background check
22    results to the board upon request and maintain records for
23    inspection.
24    (g)   Regulatory oversight.--The board shall establish and
25 enforce rules governing the permitting, operation and compliance
26 of warehousing and distribution facilities, including:
27(1)   Security protocols for storage and transportation.
28(2)   Inventory tracking and reporting requirements.
29(3)   Compliance with health and safety standards.
30    (h)   Inspections.--The board, or a designee, may conduct
20250SB0049PN1805  - 53 -
1 regular and unannounced inspections of permitted facilities to
2 ensure compliance.
3    (i)   Penalties.--A violation of this section may result in
4 fines or permit suspension or revocation, as determined by the
5 board.
6    (j)   Definitions.--As used in this section, the following
7 words and phrases shall have the meanings given to them in this
8 subsection unless the context clearly indicates otherwise:
9    "Permit."   A permit issued under subsection (a).
10    "Permittee."   The holder of a permit.
11 Section 504.   Third-party transporter permit.
12    (a)   Issuance.--Within 180 days of the effective date of this
13 subsection, the board shall issue 15 permits to qualified third-
14 party transporters to deliver cannabis products on behalf of
15 permitted dispensaries to patients and caregivers. The board may
16 issue up to 15 additional third-party transporter permits
17 annually. The board shall not require permitted dispensaries to
18 contract with third-party transporter permits to deliver
19 cannabis products.
20    (b)   Eligibility.--An applicant for a permit must be over 21
21 years of age, possess a valid driver's license, pass a criminal
22 background check and demonstrate compliance with security and
23 operational standards.
24    (c)   Residency requirement.--At least 51% of the ownership
25 interest in the entity applying for a permit must be held by
26 individuals who have been residents of this Commonwealth for at
27 least two consecutive years immediately prior to the application
28 date.
29    (d)   Permit fee.--A third-party transporter shall pay initial
30 fee of $7,500 for a permit and an annual renewal fee of $3,000.
20250SB0049PN1805  - 54 -
1    (e)   Permit duration.--A permit shall be valid for one year
2 and renewable upon compliance verification.
3    (f)   Operations.--
4(1)   Third-party transporters must have a written
5    contract with a permitted dispensary to receive and fulfill
6    delivery orders.
7(2)   Deliveries may only be made to registered medical
8    marijuana patients or caregivers who are 21 years of age or
9    older and have a valid medical marijuana card.
10(3)   Deliveries may only be to private residences,
11    excluding college campuses, government facilities or public
12    spaces.
13(4)   A maximum of one delivery per customer per day, with
14    a purchase limit as provided under the Medical Marijuana Act.
15(5)   Deliveries may be made between 8 a.m. and 8 p.m.
16    daily.
17    (g)   Security and compliance.--
18(1)   Each delivery team member shall carry a valid
19    driver's license and State-issued identification badge,
20    presented upon request to law enforcement or regulatory
21    agents.
22(2)   Delivery vehicles shall be staffed by at least two
23    delivery team members, one of whom shall remain with the
24    vehicle at all times.
25(3)   Delivery vehicles shall have no markings indicating
26    cannabis transport and shall include a secure lockbox or
27    cargo area for products.
28(4)   Each delivery team member shall have access to
29    secure communication with the dispensary during transport.
30(5)   Third-party transporters shall use GPS tracking and
20250SB0049PN1805  - 55 -
1  report delivery schedules, routes and times weekly to the
2  board via electronic communication.
3(6)   Third-party transporters shall report vehicle
4  accidents, losses or diversions to the board within 24 hours.
5  (h)   Customer verification.--
6(1)   A third-party transporter or dispensary shall verify
7  a patient's certification identity using a valid government-
8  issued photo ID and a valid medical marijuana card at the
9  time of delivery utilizing a transaction scan device.
10(2)   If a third-party transporter or dispensary is
11  delivering to a caregiver on behalf of a patient, the third-
12  party transporter or dispensary shall verify the caregiver's
13  certification, their designation as a caregiver for the
14  patients they are accepting a delivery for using a valid
15  government-issued photo ID and a valid medical marijuana card
16  at the time of delivery utilizing a transaction scan device.
17(3)   A third-party transporter or dispensary:
18(i)    May not sell or share data collected utilizing a
19transaction scan device.
20(ii)   May use the data collected utilizing a
21transaction scan device to show the board that the third-
22party transporter or dispensary is in compliance with
23this act.
24(4)   Only the individual who placed the order may receive
25  the delivery.
26  (i)   Delivery requirements.--
27(1)   A third-party transporter shall complete a State-
28  approved training program on cannabis delivery, including
29  compliance, safety and customer interaction.
30(2)   Electronic payments may be accepted, with
20250SB0049PN1805  - 56 -
1    transactions recorded for auditing.
2(3)   Products shall be sealed and tamper-evident, with no
3    consumption permitted by delivery personnel.
4    (j)   Issuance, renewal and revocation.--The board shall
5 issue, renew and revoke permits in accordance with Chapter 6 of
6 the Medical Marijuana Act.
7    (k)   Penalties.--
8(1)   A violation of this section, in addition to any
9    other penalty provided by Federal or State law, shall be
10    subject to a civil penalty not to exceed $10,000 for each
11    offense or suspension or revocation of a delivery permit.
12    Each day a person engages in a violation of this section
13    shall constitute a separate offense.
14(2)   The Attorney General, the board, a State or local
15    law enforcement agency or a local government unit may
16    investigate violations of this section and engage in
17    enforcement measures, including entering into an
18    intergovernmental agreement to prevent violations of this
19    section.
20    (l)   Definitions.--As used in this section, the following
21 words and phrases shall have the meanings given to them in this
22 subsection unless the context clearly indicates otherwise:
23    "Delivery team."     Two or more delivery employees staffed for
24 a delivery vehicle.
25    "Third-party transporter."     A permitted entity contracted by
26 a permitted cannabis dispensary to deliver cannabis products to
27 patients.
28CHAPTER 6
29(Reserved)
30CHAPTER 7
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1MISCELLANEOUS PROVISIONS
2 Section 701.    Dispensaries.
3    The following shall apply:
4(1)   A dispensary permittee shall have a physician,
5    pharmacist, physician assistant or certified nurse
6    practitioner available, either in person or by synchronous
7    interaction to consult with patients and caregivers at all
8    times during the hours the dispensary is open to receive
9    patients and caregivers. If a dispensary permittee has more
10    than one separate location, a single physician, pharmacist,
11    physician assistant or a certified registered nurse
12    practitioner may consult with patients and caregivers, either
13    in person or by synchronous interaction, at up to three
14    locations if the locations are licensed under one permit. The
15    permittee shall have in place a plan to demonstrate and
16    maintain compliance with the labor laws of the Commonwealth.
17    A physician, a pharmacist, a physician assistant or a
18    certified registered nurse practitioner shall, prior to
19    assuming duties under this paragraph, successfully complete
20    the course established in section 301(a)(6) of the Medical
21    Marijuana Act. A physician may not issue a certification to
22    authorize patients to receive medical marijuana or otherwise
23    treat patients at the dispensary.
24(2)   A dispensary shall maintain video surveillance
25    equipment in continuous operation, including motion activated
26    video surveillance equipment with pre-motion and post-motion
27    detection capabilities.
28 Section 702.    Grower/processors.
29    (a)   Remediation.--A grower/processor may apply solvent-based
30 extraction methods and processes to medical marijuana plants
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1 that have failed a test conducted by an approved laboratory at
2 harvest, subject to the following:
3(1)   The test failure shall be limited to yeast and mold.
4(2)   The medical marijuana product must pass a final
5    processed test under section 704 of the Medical Marijuana
6    Act.
7    (b)    Video surveillance equipment.--Grower/processors shall
8 maintain video surveillance equipment in continuous operation,
9 including motion-activated video surveillance equipment with
10 pre-motion and post-motion detection.
11 Section 703.     Repeals.
12    Repeals are as follows:
13(1)   The General Assembly declares that the repeal under
14    paragraph (2) is necessary to effectuate the addition of
15    section 308(c)(12).
16(2)   Section 701 of the Medical Marijuana Act is
17    repealed.
18(3)   The General Assembly declares that the repeal under
19    paragraph (4) is necessary to effectuate the addition of
20    section 701.
21(4)   Section 801(b) of the Medical Marijuana Act is
22    repealed.
23(5)   The General Assembly declares that the repeal under
24    paragraph (6) is necessary to effectuate the addition of
25    section 312.
26(6)   Section 902 of the Medical Marijuana Act is
27    repealed.
28(7)   The General Assembly declares that the repeal under
29    paragraph (8) is necessary to effectuate the addition of
30    section 303.
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1(8)     Chapter 12 of the Medical Marijuana Act is repealed.
2 Section 704.    Effective date.
3    This act shall take effect in 30 days.
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