SB 49 — An Act establishing the Cannabis Control Board; providing for powers and duties of the Cannabis Control Board; establishing the Cannabis Regulation Fund; providing for permits and for dispensing cannabis to patients and caregivers; and making repeals.

"HEMP." THE PLANT CANNABIS SATIVA L.

AND ANY PART OF THAT PLANT, INCLUDING THE SEEDS THEREOF AND ALL DERIVATIVES, EXTRACTS, CANNABINOIDS, ISOMERS, ACIDS, SALTS AND SALTS OF ISOMERS, WHETHER GROWING OR NOT, WITH A TOTAL TETRAHYDROCANNABINOLS CONCENTRATION, INCLUDING TETRAHYDROCANNABINOLIC ACID, OF NOT MORE THAN 0.3% ON A DRY WEIGHT BASIS.

THE TERM:

(1) INCLUDES INDUSTRIAL HEMP.

20250SB0049PN1506 - 5 - (2) DOES NOT INCLUDE:

(I) ANY VIABLE SEEDS FROM A CANNABIS SATIVA L.

PLANT THAT EXCEEDS A TOTAL TETRAHYDROCANNABINOLS CONCENTRATION, INCLUDING TETRAHYDROCANNABINOLIC ACID, OF 0.3% IN THE PLANT ON A DRY WEIGHT BASIS;

(II) ANY INTERMEDIATE HEMP-DERIVED CANNABINOID PRODUCTS CONTAINING:

(A) CANNABINOIDS THAT ARE NOT CAPABLE OF BEING NATURALLY PRODUCED BY A CANNABIS SATIVA L.

PLANT;

(B) CANNABINOIDS THAT:

(I) ARE CAPABLE OF BEING NATURALLY PRODUCED BY A CANNABIS SATIVA L.

PLANT;

AND (II) WERE SYNTHESIZED OR MANUFACTURED OUTSIDE THE PLANT;

OR (C) MORE THAN 0.3% COMBINED TOTAL OF:

(I) TOTAL TETRAHYDROCANNABINOLS, INCLUDING TETRAHYDROCANNABINOLIC ACID;

AND (II) ANY OTHER CANNABINOIDS THAT HAVE SIMILAR EFFECTS, OR ARE MARKETED TO HAVE SIMILAR EFFECTS, ON HUMANS OR ANIMALS AS A TETRAHYDROCANNABINOL AS DETERMINED BY THE BOARD;

(III) ANY INTERMEDIATE HEMP-DERIVED CANNABINOID PRODUCTS WHICH ARE MARKETED OR SOLD AS A FINAL PRODUCT OR DIRECTLY TO AN END CONSUMER FOR PERSONAL OR HOUSEHOLD USE;

OR (IV) ANY FINAL HEMP-DERIVED CANNABINOID PRODUCTS CONTAINING:

(A) CANNABINOIDS THAT ARE NOT CAPABLE OF BEING NATURALLY PRODUCED BY A CANNABIS SATIVA L.

PLANT;

(B) CANNABINOIDS THAT:

20250SB0049PN1506 - 6 - (I) ARE CAPABLE OF BEING NATURALLY PRODUCED BY A CANNABIS SATIVA L.

PLANT;

AND (II) WERE SYNTHESIZED OR MANUFACTURED OUTSIDE THE PLANT;

OR (C) GREATER THAN 0.4 MILLIGRAMS COMBINED TOTAL PER CONTAINER OF:

(I) TOTAL TETRAHYDROCANNABINOLS, INCLUDING TETRAHYDROCANNABINOLIC ACID;

AND (II) ANY OTHER CANNABINOIDS THAT HAVE SIMILAR EFFECTS, OR ARE MARKETED TO HAVE SIMILAR EFFECTS, ON HUMANS OR ANIMALS AS A TETRAHYDROCANNABINOL AS DETERMINED BY THE BOARD.

"HEMP-DERIVED CANNABINOID PRODUCT." THE FOLLOWING:

(1) ANY INTERMEDIATE OR FINAL PRODUCT DERIVED FROM HEMP, OTHER THAN INDUSTRIAL HEMP, THAT:

(I) CONTAINS CANNABINOIDS IN ANY FORM;

AND (II) IS INTENDED FOR HUMAN OR ANIMAL USE THROUGH ANY MEANS OF APPLICATION OR ADMINISTRATION, SUCH AS INHALATION, INGESTION OR TOPICAL APPLICATION.

(2) THE TERM DOES NOT INCLUDE A DRUG THAT IS THE SUBJECT OF AN APPLICATION APPROVED UNDER 21 U.S.C.

§ 355(C) OR (J) (RELATING TO NEW DRUGS).

"INDUSTRIAL HEMP." HEMP:

(1) GROWN FOR THE USE OF THE STALK OF THE PLANT, FIBER PRODUCED FROM SUCH A STALK OR ANY OTHER NON-CANNABINOID DERIVATIVE, MIXTURE, PREPARATION OR MANUFACTURE OF SUCH A STALK;

(2) GROWN FOR THE USE OF THE WHOLE GRAIN, OIL, CAKE, NUT, HULL OR ANY OTHER NON-CANNABINOID COMPOUND, DERIVATIVE, MIXTURE, PREPARATION OR MANUFACTURE OF THE SEEDS OF SUCH 20250SB0049PN1506 - 7 - PLANT;

(3) GROWN FOR PURPOSES OF PRODUCING MICROGREENS OR OTHER EDIBLE HEMP LEAF PRODUCTS INTENDED FOR HUMAN CONSUMPTION THAT ARE DERIVED FROM AN IMMATURE HEMP PLANT THAT IS GROWN FROM SEEDS THAT DO NOT EXCEED THE THRESHOLD FOR TOTAL TETRAHYDROCANNABINOLS CONCENTRATION SPECIFIED IN THE DEFINITION OF "HEMP";

(4) THAT IS A PLANT THAT DOES NOT ENTER THE STREAM OF COMMERCE AND IS INTENDED TO SUPPORT HEMP RESEARCH AT AN INSTITUTION OF HIGHER EDUCATION AS DEFINED IN 20 U.S.C.

§ 1001 (RELATING TO GENERAL DEFINITION OF INSTITUTION OF HIGHER EDUCATION) OR AN INDEPENDENT RESEARCH INSTITUTE;

OR (5) GROWN FOR THE USE OF A VIABLE SEED OF THE PLANT PRODUCED SOLELY FOR THE PRODUCTION OR MANUFACTURE OF ANY MATERIAL.

"INTERMEDIATE HEMP-DERIVED CANNABINOID PRODUCT." A HEMP- DERIVED CANNABINOID PRODUCT WHICH:

(1) IS NOT YET IN THE FINAL FORM OR PREPARATION MARKETED OR INTENDED TO BE USED OR CONSUMED BY A HUMAN OR ANIMAL;

OR (2) IS A POWDER, LIQUID, TABLET, OIL OR OTHER PRODUCT FORM WHICH IS INTENDED OR MARKETED TO BE MIXED, DISSOLVED, FORMULATED OR OTHERWISE ADDED TO OR PREPARED WITH OR INTO ANY OTHER SUBSTANCE PRIOR TO ADMINISTRATION OR CONSUMPTION.

"THC." A delta-9 tetrahydrocannabinol and any structural, optical or geometric isomers of tetrahydrocannabinol, including 20250SB0049PN1506 - 8 - delta-7, delta-8 and delta-10 tetrahydrocannabiphorol, hexahydrocannabinol and any other substance, however derived, that has similar effects on the mind or body as determined by the board.

"TRANSACTION SCAN DEVICE." A DEVICE CAPABLE OF DECIPHERING, <-- IN AN ELECTRONICALLY READABLE FORMAT, THE INFORMATION ENCODED ON THE MAGNETIC STRIP OR BAR CODE OF A STATE-ISSUED IDENTIFICATION CARD.

(c) Removal.--A member of the board shall be removed from 20250SB0049PN1020 - 4 - office by the appointing authority:

(d) Initial appointments to board.-- 20250SB0049PN1506 - 9 - (1) Gubernatorial appointees initially appointed under subsection (b)(1) shall serve an initial term of one, two and three years respectively as designated by the Governor at the time of appointment and until their successors are appointed and qualified.

(3) A gubernatorial appointee shall serve no more than 20250SB0049PN1020 - 5 - two full consecutive terms.

20250SB0049PN1506 - 10 - (7) A member appointed to fill a vacancy under paragraph (4) may serve three full terms following the expiration of the term related to the vacancy.

If the 20250SB0049PN1020 - 6 - Senate rejects the nominee, the Governor shall have three days to nominate a third proposed interim executive director and the Senate shall have three days after the nomination to hold a confirmation vote.

(1) The interim executive director may be the permanent executive director and shall not be prohibited from 20250SB0049PN1506 - 11 - employment with the board in any other position.

(2) Except for ex officio members, a person may not be appointed a member of the board or be employed by or be an independent contractor of the board if that individual is a 20250SB0049PN1020 - 7 - public official or party officer, as those terms are defined in 4 Pa.C.S.

(4) A member, employee or independent contractor of the 20250SB0049PN1506 - 12 - board or another agency having regulatory authority over the board or cannabis organizations may not be employed, hold any office or position or be engaged in any activity which is incompatible with the position, employment or contract.

(iv) Director's fees attributable to board membership of a corporate or nonprofit body or board or 20250SB0049PN1020 - 8 - reimbursement for expenses incurred in connection with board membership.

(7) A member, employee or independent contractor of the board may not participate in a hearing, proceeding or other 20250SB0049PN1506 - 13 - matter in which the member, employee or independent contractor, or an immediate family member thereof, has a financial interest in the subject matter of the hearing or proceeding or other interest that could be substantially affected by the outcome of the hearing or proceeding without first fully disclosing the nature of the interest to the board and other persons participating in the hearing or proceeding.

The disclosure statement shall be filed with the executive director of the board and with the appointing authority for the member and shall be open to inspection by the public at the office of the board during the normal business hours of 20250SB0049PN1020 - 9 - the board for the duration of the member's term and for two years after the member leaves office.

(9) Prior to being sworn as a member, an appointee and the appointee's immediate family shall divest any financial interest in any applicant, permitted entity, intermediary, subsidiary or holding company thereof owned or held by the 20250SB0049PN1506 - 14 - appointee or known to be held by the appointee's immediate family.

20250SB0049PN1020 - 10 - (11) Prior to entering into employment or contracting with the board, an employee or independent contractor and the employee's or independent contractor's immediate family shall divest any financial interest in any applicant, permitted entity, intermediary, subsidiary or holding company thereof, owned or held by the employee or independent contractor or known to be held by the immediate family of the employee or independent contractor.

For the duration of the employee's 20250SB0049PN1506 - 15 - employment with the board or the independent contractor's contract with the board and for one year thereafter, the employee or independent contractor and the immediate family thereof shall not acquire, by purchase, gift, exchange or otherwise, any financial interest in any applicant, or permitted entity, intermediary, subsidiary or holding company thereof.

(13) A member may not accept employment with any applicant, permitted entity or an affiliate, intermediary, subsidiary or holding company thereof for a period of two 20250SB0049PN1020 - 11 - years from the termination of term of office.

(15) A member who has been convicted during the member's 20250SB0049PN1506 - 16 - term in any domestic or foreign jurisdiction of a felony criminal offense related to the manufacture, delivery or possession with intent to manufacture or deliver a controlled substance in violation of the act of April 14, 1972 (P.L.233, No.64), known as The Controlled Substance, Drug, Device and Cosmetic Act, shall, upon conviction, be automatically removed from the board and shall be ineligible to become a member in the future.

(16) The following shall apply to an employee of the board whose duties substantially involve licensing, enforcement, development of law, promulgation of regulations or development of policy relating to cannabis or who has other discretionary authority which may affect or influence 20250SB0049PN1020 - 12 - the outcome of an action, proceeding or decision, including the executive director, bureau directors and attorneys:

20250SB0049PN1506 - 17 - (ii) The individual may not, for a period of two years following termination of employment, appear before the board in any hearing or proceeding or participate in any activity on behalf of any applicant, permittee or permitted entity or on behalf of an affiliate, intermediary, subsidiary or holding company of any applicant, permittee or permitted entity.

20250SB0049PN1020 - 13 - (17) The following shall apply to an independent contractor and to an employee of an independent contractor whose duties substantially involve consultation relating to licensing, enforcement, development of law, promulgation of regulations or development of policy, relating to cannabis:

(i) The person may not, for a period of one year following termination of the contract with the board, be retained by an applicant or a permitted entity or by an 20250SB0049PN1506 - 18 - affiliate, intermediary, subsidiary or holding company of an applicant or a permitted entity.

(iv) Each contract between the board and an independent contractor which involves the duties provided under this paragraph shall contain a provision requiring the independent contractor to sign an affidavit that the independent contractor will not violate subparagraph (i) 20250SB0049PN1020 - 14 - or (ii).

If the prospective employee fails to sign the affidavit, the independent contractor 20250SB0049PN1506 - 19 - shall rescind any offer of employment and may not employ the individual.

The board and each independent contractor shall assist the State Ethics Commission in the 20250SB0049PN1020 - 15 - development of the list, which shall be transmitted by the State Ethics Commission to the Legislative Reference Bureau for publication in the Pennsylvania Bulletin biennially and posted by the board on the board's publicly accessible Internet website.

The State Ethics 20250SB0049PN1506 - 20 - Commission may impose a civil penalty under 65 Pa.C.S.

(l) Liability.--Members shall not be personally liable for 20250SB0049PN1020 - 16 - any of the following:

(m) Compensation.-- (1) The Executive Board as established in the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, shall establish the compensation of the 20250SB0049PN1506 - 21 - members.

A person who has been convicted in any domestic or foreign <-- jurisdiction of a felony, infamous crime or gaming offense may not be appointed to the board.

(p) Prohibition against nepotism.--A member may not solicit, request, suggest or recommend the employment by the board of any 20250SB0049PN1020 - 17 - individual related within the second degree of consanguinity to the member as provided in 23 Pa.C.S.

(q) Employment requirements.-- (1) Prospective employees shall submit an application and a personal disclosure form to the board which shall include a complete criminal history, including convictions 20250SB0049PN1506 - 22 - and current charges for all felonies and misdemeanors.

or 20250SB0049PN1020 - 18 - (iii) has intentionally made a false statement concerning a material fact in connection with the application to the board.

20250SB0049PN1506 - 23 - (i) Immediately refer any criminal matter involving an employee to law enforcement.

The term 20250SB0049PN1020 - 19 - does not include an interest which is held or deemed to be held in any of the following:

(relating 20250SB0049PN1506 - 24 - to Internal Revenue Code) or other retirement plan that:

II (relating to accountability) and shall provide guidelines applicable to members, employees, independent contractors of the board and the immediate families of the members, employees and independent contractors to enable them to avoid any perceived or actual conflict of interest and to promote public confidence in 20250SB0049PN1020 - 20 - the integrity and impartiality of the board.

20250SB0049PN1506 - 25 - (2) Disclose and disqualify the member from any proceeding in which the member's objectivity, impartiality, integrity or independence of judgment may be reasonably questioned due to the member's relationship or association with a party connected to any proceeding or a person appearing before the board.

(6) Not meet or engage in discussions with any applicant, permitted entity or a cannabis organization representative unless the meeting or discussion occurs on the 20250SB0049PN1020 - 21 - business premises of the board and is recorded in a log maintained for this purpose.

(7) Avoid impropriety and the appearance of impropriety 20250SB0049PN1506 - 26 - at all times and observe standards and conduct that promote public confidence in the oversight of cannabis.

I (relating to Commonwealth 20250SB0049PN1020 - 22 - Procurement Code).

(ii) The act of June 25, 1982 (P.L.633, No.181), 20250SB0049PN1506 - 27 - known as the Regulatory Review Act.

<-- (2) The board and each advisory committee or subcommittee of the board shall meet as often as deemed necessary.

NOT LESS THAN TWO TIMES PER MONTH.

<-- (2) ADVISORY COMMITTEES OR SUBCOMMITTEES OF THE BOARD SHALL MEET AS OFTEN AS DEEMED NECESSARY BY THE BOARD.

20250SB0049PN1020 - 23 - (3) If a quorum is not present, a hearing of the board may still take place.

(d) Qualified majority vote.-- (1) Except as permitted in paragraphs (2) and (3), any action, including the approval, issuance, denial or conditioning of any permit by the board or the making of any 20250SB0049PN1506 - 28 - order or the ratification of any permissible act done or order made by one or more of the members, shall require a qualified majority vote consisting of at least one gubernatorial appointee and the four legislative appointees.

The verbatim transcript of the proceedings shall be 20250SB0049PN1020 - 24 - the property of the board and shall be prepared by the board upon the request of any board member or upon the request of any other person and the payment by that person of the costs of preparation.

(b) Applicant information delivered to Governor and General Assembly under the Medical Marijuana Act.-- 20250SB0049PN1506 - 29 - (1) The board shall maintain a list of all applicants for permits.

The board may not require an 20250SB0049PN1020 - 25 - applicant to waive any confidentiality provided for in this subsection as a condition for the approval of a permit or any other action of the board.

20250SB0049PN1506 - 30 - (e) Notice.--Notice of the contents of any information, except to a duly authorized law enforcement agency under this section, shall be given to any applicant or permittee in a manner prescribed by the rules and regulations adopted by the board.

(3) Sections 204(b) and 301(10) of the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth 20250SB0049PN1020 - 26 - Attorneys Act.

20250SB0049PN1506 - 31 - (b) Compliance deadline.--A current cannabis organization on the effective date of this subsection that is authorized to cultivate, process, dispense or transport cannabis shall have 90 days from the effective date of a new temporary regulation promulgated by the board under subsection (a) to comply with the temporary regulation.

(1) Regulation of unregulated cannabis products that are <-- sold at unpermitted locations.

(1)(2) REGULATIONThe OFtypes CANNABISof ANDpermits ALLissued ITSby DERIVATIVES.the board.

<--(3) (2)The ENFORCEMENTmethods PROCEDURESand FORforms CANNABISof ANDpermit ALLapplications, ITSincluding DERIVATIVES.timeline, fees and minimum requirements.

(2)(4) (3) The typespolicies ofand permitsprocedures issuedto prioritize, promote and encourage diversity and full participation by theindividuals board.from communities that have been disproportionately harmed by cannabis prohibition and cannabis enforcement prohibition.

<-- (3) (4) The methods and forms of permit applications, <-- including timeline, fees and minimum requirements.

(4) The policies and procedures to prioritize, promote <-- and encourage diversity and full participation by individuals from communities that have been disproportionately harmed by cannabis prohibition and cannabis enforcement prohibition.

(8) Enforcement procedures, including fines, suspensions 20250SB0049PN1020 - 27 - and revocations.

(9) Ownership and financial disclosure procedures and requirements for cannabis organizations, including record 20250SB0049PN1506 - 32 - keeping requirements.

(v) The system shall allow for two-way communication, automation and a secure application- programming interface with a cannabis organization's enterprise resource planning, inventory, accounting and 20250SB0049PN1020 - 28 - point-of-sale software.

(vi) The system shall include a secure application program interface capable of accessing all data required 20250SB0049PN1506 - 33 - to be transmitted to the board to ensure compliance with the operational reporting requirements specified under this chapter and any regulations promulgated by the board.

(viii) The board's contracted seed-to-sale vendor <-- may not offer point-of-sale services to a cannabis business establishment.

(VIII) THE BOARD SHALL NOT REQUIRE CANNABIS BUSINESS <-- ESTABLISHMENTS TO UTILIZE THE BOARD'S CONTRACTED SEED-TO- SALE VENDOR AS A POINT-OF-SALE-SYSTEM.

(i) Establishing procedures and requirements for home delivery services by dispensing organizations and <-- micro cultivation centers.

AND(ii) THIRD-PARTYA TRANSPORTERS.requirement that transportation between cannabis organizations occurs in secured vehicles but allowing for transportation in vehicles other than those owned and operated by cannabis organizations for purchasers to transport cannabis.

<-- (ii) A requirement that transportation between cannabis organizations occurs in secured vehicles but allowing for transportation in vehicles other than those owned and operated by cannabis organizations for purchasers to transport cannabis.

(iv) Policies encouraging bulk shipment where 20250SB0049PN150620250SB0049PN1020 - 3429 - appropriate.

(xi) Recordkeeping for delivery and receipt of <-- medical cannabis products.

(XI) RECORDKEEPING FOR DELIVERY AND RECEIPT OF <-- CANNABIS PRODUCTS.

(XII) PROCEDURES FOR STORING CANNABIS TEMPORARILY AT WAREHOUSING AND DISTRIBUTION PERMIT HOLDER FACILITIES.

(15) LABELING REQUIREMENTS CONSISTENT WITH INDUSTRY BEST PRACTICES, INCLUDING:

(I) STANDARD SYMBOLS AND WARNINGS WHERE THE BOARD SHALL REVIEW SYMBOLS FROM OTHER JURISDICTIONS WHERE 20250SB0049PN1506 - 35 - CANNABIS SALES ARE PERMITTED.

AS NATIONAL STANDARDS ARE AVAILABLE, THE BOARD SHALL PLAN TO ADOPT NATIONAL STANDARDS.

(II) AN ITEMIZATION, INCLUDING WEIGHT OF ALL CANNABINOID AND TERPENE INGREDIENTS SPECIFIED FOR THE PRODUCT.

THE REQUIREMENTS OF THIS SUBPARAGRAPH MAY BE SATISFIED THROUGH THE USE OF ELECTRONIC QR CODES AS PRESCRIBED BY THE BOARD.

(i) Regulations consistent with best practices for food products, except where necessary modifications are required due to the active compounds in the cannabis 20250SB0049PN1020 - 30 - plant.

20250SB0049PN1506 - 36 - (19) Procedures for the investigation and enforcement of unregulated and unpermitted cultivation, processing, manufacturing, sale, dispensing or distribution of cannabis or products intended for consumption or inhalation.

(20) Procedures for medical professionals in <-- dispensaries.

TO BE ACCESSIBLE TO PATIENTS.

<-- (21) TESTING STANDARDS.

(22) PERMISSIBLE FORMS AND CONCENTRATIONS.

(23) RESTRICTIONS NECESSARY TO PROTECT PUBLIC HEALTH AND SAFETY.

(24) ENFORCEMENT AGAINST UNPERMITTED CANNABINOID PRODUCTS.

(a) General powers.-- (1) The board shall have general and sole regulatory <--20250SB0049PN1020 - 31 - authority over the conduct of cannabis organizations and related activities as described in this chapter.

(1)(2) THEThe BOARDboard SHALLshall HAVEemploy GENERALindividuals, ANDincluding SOLEa REGULATORYchief <--medical AUTHORITYofficer OVERand THEan MANUFACTURE,executive PROCESSING,director TESTING,as DISTRIBUTIONprovided ANDunder SALEsection OF303(g), CANNABISas ANDnecessary ALLto CONSUMABLEcarry CANNABINOIDout PRODUCTSthe WITHINpowers THISand COMMONWEALTH,duties INCLUDINGof PRODUCTSthe CONTAININGboard, HEMP-DERIVEDwho CANNABINOIDS,shall MARIJUANA-serve DERIVEDat CANNABINOIDSthe ANDboard's SYNTHETICpleasure. CANNABINOIDS.

20250SB0049PN1506 - 37 - (2) The board shall employ individuals, including a chief medical officer and an executive director as provided under section 303(g), as necessary to carry out the powers and duties of the board, who shall serve at the board's pleasure.

(5) Within 90 days of the effective date of this paragraph, the board shall transmit to the Legislative Reference Bureau for publication in the next available issue of the Pennsylvania Bulletin and publish on the board's 20250SB0049PN1020 - 32 - publicly accessible Internet website the classification system for all employees of the board.

20250SB0049PN1506 - 38 - (6) A request for proposal to conduct investigations of employees and applicants under this chapter shall include a requirement that an offeror provide the number of employees of the offeror who will be engaged in the conduct of investigations and who are residents of this Commonwealth and annuitants of a Federal, State or local law enforcement agency.

(6) To establish, charge and collect fees and fines as authorized by the Medical Marijuana ActAct. AND THIS ACT.

<-- (7) To administer oaths, examine witnesses and issue subpoenas compelling the attendance of witnesses or the production of documents and records or other evidence.

This 20250SB0049PN1020 - 33 - paragraph shall apply to designated officers and employees.

(8) To purchase insurance against a loss related to the 20250SB0049PN1506 - 39 - board's property or assets.

(13) To require prospective and existing employees, independent contractors, applicants and permittees to submit photographs consistent with the standards of the Commonwealth 20250SB0049PN1020 - 34 - Photo Imaging Network.

(14) Within six months after the effective date of this 20250SB0049PN1506 - 40 - paragraph, in a manner that does not impede the immediate implementation of the duties and responsibilities of the board under this chapter during the immediate two years after the effective date of this paragraph, to develop and implement an affirmative action plan to assure that all persons are accorded equality of opportunity in employment and contracting by the board, its contractors, subcontractors, assignees, lessees, agents, vendors and suppliers.

(18) If, in any year, appropriations for the 20250SB0049PN1020 - 35 - administration of this chapter are not enacted by June 30, any funds appropriated for the administration of this chapter 20250SB0049PN1506 - 41 - which are unexpended, uncommitted and unencumbered at the end of a fiscal year shall remain available for expenditure by the board or other agency to which they were appropriated until the enactment of appropriation for the ensuing fiscal year.

20250SB0049PN1020 - 36 - (23) Require that each cannabis organization provide to the board its audited annual financial statements, with 20250SB0049PN1506 - 42 - additional detail as the board from time to time shall require, which information shall be submitted not later than 60 90 days after the end of the cannabis organization's <-- fiscal year.

20250SB0049PN1020 - 37 - (29) Appoint committees and subcommittees as necessary.

20250SB0049PN1506 - 43 - (i) The chairperson of the board may appoint advisory committees that may consist of members, nonmembers, outside experts and staff of the board.

20250SB0049PN1020 - 38 - (i) A cannabis organization representative shall register with the board in a manner prescribed by the 20250SB0049PN1506 - 44 - board, which shall include the name, employer or firm, address, telephone number and the cannabis organization being represented including any and all aliases.

(a) Unauthorized activities.--In addition to any other <-- penalty provided by Federal or State law, a person who cultivates, processes, distributes, sells or offers for sale 20250SB0049PN1020 - 39 - cannabis, cannabis concentrates, cannabis flower or any product intended for consumption or inhalation without a permit issued 20250SB0049PN1506 - 45 - by the board shall be subject to a civil penalty not to exceed $10,000 for each offense.

(A) UNAUTHORIZED ACTIVITIES.-- <-- (1) A PERSON MAY NOT DO ANY OF THE FOLLOWING:

(I) MANUFACTURE, SELL, OFFER FOR SALE, DISPENSE, DISTRIBUTE OR MARKET AN INTERMEDIATE HEMP-DERIVED PRODUCT AS A FINAL HEMP-DERIVED CANNABINOID PRODUCT OR DIRECTLY TO AN END CONSUMER FOR PERSONAL OR HOUSEHOLD USE.

(II) MANUFACTURE, SELL, OFFER FOR SALE, DISPENSE, DISTRIBUTE OR MARKET A HEMP-DERIVED CANNABINOID PRODUCT THAT IS EXCLUDED FROM THE DEFINITION OF "HEMP." (2) IN ADDITION TO ANY OTHER PENALTY PROVIDED BY FEDERAL OR STATE LAW, A PERSON WHO MANUFACTURES, SELLS OR OFFERS FOR SALE, DISPENSES OR DISTRIBUTES CANNABIS, CANNABIS CONCENTRATES, CANNABIS FLOWER OR ANY PRODUCT INTENDED FOR CONSUMPTION OR INHALATION WITHOUT A PERMIT ISSUED BY THE BOARD SHALL BE SUBJECT TO A CIVIL PENALTY NOT TO EXCEED $10,000 FOR EACH OFFENSE.

EACH DAY A PERSON ENGAGES IN UNPERMITTED ACTIVITY UNDER THIS SUBSECTION SHALL CONSTITUTE A SEPARATE OFFENSE.

OR(c) EXERCISESuspension SEARCHES,or <--revocation.--In SEIZURESaddition ANDto FORFEITURES.any other penalty provided by Federal or State law, upon the conduct of a third or subsequent unpermitted activity under subsection (a), a local government unit may suspend or revoke the permit of the person who engaged in the unpermitted activity.

(c) Suspension or revocation.--In addition to any other 20250SB0049PN1506 - 46 - penalty provided by Federal or State law, upon the conduct of a third or subsequent unpermitted activity under subsection (a), a local government unit may suspend or revoke the permit of the <-- person who engaged in the unpermitted activity., REVOKE OR DENY <-- A LICENSE, PERMIT OR OTHER AUTHORIZATION TO CONDUCT BUSINESS WHATSOEVER, ISSUED BY THE LOCAL GOVERNMENT UNIT AND HELD BY THE PERSON OR FOR WHICH THE PERSON HAS MADE APPLICATION.

A court shall enter judgment in an amount equal to three times actual damages and may award 20250SB0049PN1020 - 40 - punitive damages in an amount commensurate with actual damages.

Any 20250SB0049PN1506 - 47 - interest accrued shall be deposited into the fund.

and (iii) a program to reimburse caregivers for the cost 20250SB0049PN1020 - 41 - of providing background checks for caregivers.

20250SB0049PN1506 - 48 - (d) Repayment of initial funding.--The board shall repay from the fees and investment earnings of the fund to the General Fund any money appropriated FROM THE GENERAL FUND for the <-- initial planning, organization and administration by the board with respect to the establishment of the program at the time of the original enactment of this act.

(a) Issuance.--Eighteen months after the effective date of this subsection and every year on that date thereafter, the board shall issue a report to the Governor and each member of the General Assembly on the general operation of the board and 20250SB0049PN1020 - 42 - performance of the operations of cannabis entities and permittees, including sales during the previous year, all taxes, fees, fines and other revenues collected and, where appropriate, disbursed, the costs of operation of the board, all hearings conducted and the results of the hearings and other information that the board deems necessary and appropriate.

The board 20250SB0049PN1506 - 49 - shall submit an annual report to the General Assembly by December 30.

(b) Granted authority.--An authority granted to a Commonwealth agency or Commonwealth employee or appointee under this chapter shall be given to the Commonwealth agency or 20250SB0049PN1020 - 43 - employee or appointee empowered to permit, discipline, revoke, regulate or make regulations under this chapter.

(b) Process.--The transfer under subsection (a) shall begin on the earlier of 14 days after the effective date of this 20250SB0049PN1506 - 50 - subsection or the day after an interim executive director is confirmed by the Senate and be completed within 180 days.

(i) All personnel, allocations, appropriations, equipment, files, permits, records, contracts, agreements, obligations and other materials which are used, employed or expended by the Department of Health in connection with the functions transferred under this section to the board and as if the contracts, agreements 20250SB0049PN1020 - 44 - and obligations had been incurred or entered into by the board.

20250SB0049PN1506 - 51 - (iii) All personnel transferred under this section shall retain any civil service employment status assigned to the personnel.

SECTIONCHAPTER 316.5 20250SB0049PN1020 - 45 - PERMITS Section 501.

CONSTRUCTION.

<-- (A) FEDERAL CONFORMITY SWEEP.--ANY HEMP-DERIVED CANNABINOID PRODUCT THAT IS EXCLUDED FROM THE DEFINITION OF "HEMP" UNDER 7 U.S.C.

§ 1639O (RELATING TO DEFINITIONS), AS AMENDED AND EFFECTIVE, SHALL BE DEEMED "CANNABIS" FOR PURPOSES OF THIS ACT.

(B) COMPLIANT HEMP PRODUCTS OUTSIDE BOARD JURISDICTION.--A HEMP-DERIVED CANNABINOID PRODUCT THAT MEETS THE DEFINITION OF "HEMP" UNDER THIS ACT, INCLUDING A FINAL HEMP-DERIVED CANNABINOID PRODUCT CONTAINING NOT MORE THAN 0.4 MILLIGRAMS COMBINED TOTAL PER CONTAINER OF TOTAL TETRAHYDROCANNABINOLS, INCLUDING TETRAHYDROCANNABINOLIC ACID, AND ANY OTHER 20250SB0049PN1506 - 52 - CANNABINOIDS THAT HAVE SIMILAR EFFECTS, OR ARE MARKETED TO HAVE SIMILAR EFFECTS, ON HUMANS OR ANIMALS AS A TETRAHYDROCANNABINOL AS DETERMINED BY THE BOARD, SHALL NOT BE SUBJECT TO REGULATION BY THE BOARD UNDER THIS ACT UNLESS AND UNTIL OTHERWISE PROVIDED BY THE LAWS OF THIS COMMONWEALTH.

CHAPTER 4 (RESERVED) CHAPTER 5 PERMITS Section 501.

(a) Issuance.--The WITHIN 180 DAYS OF THE EFFECTIVE DATE OF <-- THIS SUBSECTION, THE board shall issue warehousing and distribution permits, which authorize the storage, inventory management and transportation of cannabis and cannabis products between cannabis organizations, to eligible applicants.

THE <-- BOARD SHALL ISSUE NO MORE THAN THREE WAREHOUSING AND DISTRIBUTION PERMITS AT A TIME.

(c) Fees.-- (1) A one-time, nonrefundable application fee of $2,500 <-- 20250SB0049PN1506 - 53 - $10,000 shall be payable to the board upon submission of the <-- initial application for a permit.

(e) Restriction on other permits.--The holder of a WAREHOUSING AND DISTRIBUTION permit, including its owners, <-- principals and operators, may not hold a 20250SB0049PN1020 - 46 - grower-processor permit <-- or cultivation center permit.,permit. CLINICAL REGISTRANT OR DISPENSARY <-- PERMIT OR HAVE A FINANCIAL INTEREST IN AN APPROVED LABORATORY.

20250SB0049PN1506 - 54 - (i) Penalties.--A violation of this section may result in fines or permit suspension or revocation, as determined by the board.

(a) Third-party transporter permit.--The board shall issue <-- delivery permits to qualified third-party transporters to deliver cannabis products on behalf of permitted dispensaries.

(A)(b) ISSUANCE.--WITHINEligibility.--An 180applicant DAYSfor OFa THEpermit EFFECTIVEmust DATEbe OFover THIS21 <--20250SB0049PN1020 SUBSECTION,- THE47 BOARD- SHALLyears ISSUEof 15age, PERMITSpass TOa QUALIFIEDcriminal THIRD-background PARTYcheck TRANSPORTERSand TOdemonstrate DELIVERcompliance CANNABISwith PRODUCTSsecurity ONand BEHALFoperational OFstandards. PERMITTED DISPENSARIES TO PATIENTS AND CAREGIVERS.

THE(c) BOARDPermit MAYfee.--A ISSUEthird-party UPtransporter TOshall 15pay ADDITIONALinitial THIRD-PARTYfee TRANSPORTERof PERMITS$7,500 ANNUALLY.for a permit and an annual renewal fee of $3,000.

THE(d) BOARDPermit SHALLduration.--A NOTpermit REQUIREshall PERMITTEDbe DISPENSARIESvalid TOfor CONTRACTone WITHyear THIRD-PARTYand TRANSPORTERrenewable PERMITSupon TOcompliance DELIVERverification. CANNABIS PRODUCTS.

(b)(e) Eligibility.--AnDelivery applicantoperations.-- for(1) aThird-party permittransporters must behave overa 21written yearscontract ofwith age, POSSESS A VALID DRIVER'S LICENSE, pass a criminalpermitted <--dispensary backgroundto checkreceive and demonstratefulfill compliancedelivery withorders. security and operational standards.

(C)(2) RESIDENCYDeliveries REQUIREMENT.--ATmay LEASTonly 51%be OFmade THEto OWNERSHIPregistered <--medical INTERESTmarijuana INpatients THEwho ENTITYare APPLYING21 FORyears Aof PERMITage MUSTor BEolder HELDand BYhave INDIVIDUALSa WHOvalid HAVEmedical BEENmarijuana RESIDENTScard. OF THIS COMMONWEALTH FOR AT LEAST TWO CONSECUTIVE YEARS IMMEDIATELY PRIOR TO THE APPLICATION DATE.

(c) (D) Permit fee.--A third-party transporter shall pay <-- 20250SB0049PN1506 - 55 - initial fee of $7,500 for a permit and an annual renewal fee of $3,000.

(d) (E) Permit duration.--A permit shall be valid for one <-- year and renewable upon compliance verification.

(e) Delivery operations.-- (F) OPERATIONS.-- <-- (1) Third-party transporters must have a written contract with a permitted dispensary to receive and fulfill delivery orders.

(2) Deliveries may only be made to registered medical marijuana patients who are 21 OR CAREGIVERS WHO ARE 21 years <-- of age or older and have a valid medical marijuana card.

8 <-- P.M.

(f) (G) Security and compliance.-- <-- (1) Each delivery team member shall carry a valid driver's license and State-issued identification badge, presented upon request to law enforcement or regulatory agents.

(3) Delivery vehicles shall have no markings indicating cannabis transport and shall include a secure lockbox or 20250SB0049PN1020 - 48 - cargo area for products.

(4) Each delivery team member shall have access to 20250SB0049PN1506 - 56 - secure communication with the dispensary during transport.

(5) Third-party transporters shall use GPS tracking and report delivery schedules, routes and times daily WEEKLY to <-- the board via electronic communication.

(g) (H) Customer verification.-- <-- (1) A third-party transporter shall verify the <-- customer's age and identity using a valid government-issued photo ID and a valid medical marijuana card at the time of delivery.

(1)(2) AOnly THIRD-PARTYthe TRANSPORTERindividual ORwho DISPENSARYplaced SHALLthe VERIFYorder <--may Areceive PATIENT'Sthe CERTIFICATIONdelivery. IDENTITY USING A VALID GOVERNMENT- ISSUED PHOTO ID AND A VALID MEDICAL MARIJUANA CARD AT THE TIME OF DELIVERY UTILIZING A TRANSACTION SCAN DEVICE.

(2)(h) IFDelivery Arequirements.-- THIRD-PARTY(1) TRANSPORTER OR DISPENSARY IS DELIVERING TO A CAREGIVERthird-party ONtransporter BEHALFshall OFcomplete Aa PATIENT,State- THEapproved THIRD-training PARTYprogram TRANSPORTERon ORcannabis DISPENSARYdelivery, SHALLincluding VERIFYcompliance, THEsafety CAREGIVER'Sand CERTIFICATION,customer THEIRinteraction. DESIGNATION AS A CAREGIVER FOR THE PATIENTS THEY ARE ACCEPTING A DELIVERY FOR USING A VALID GOVERNMENT-ISSUED PHOTO ID AND A VALID MEDICAL MARIJUANA CARD AT THE TIME OF DELIVERY UTILIZING A TRANSACTION SCAN DEVICE.

(3)(2) ACash THIRD-PARTYor TRANSPORTERdebit ORcard DISPENSARY:payments may be accepted, with transactions recorded electronically for auditing.

(I) MAY NOT SELL OR SHARE DATA COLLECTED UTILIZING A TRANSACTION SCAN DEVICE.

(II) MAY USE THE DATA COLLECTED UTILIZING A TRANSACTION SCAN DEVICE TO SHOW THE BOARD THAT THE THIRD- PARTY TRANSPORTER OR DISPENSARY IS IN COMPLIANCE WITH THIS ACT.

(2) (4) Only the individual who placed the order may <-- 20250SB0049PN1506 - 57 - receive the delivery.

(h) (I) Delivery requirements.-- <-- (1) A third-party transporter shall complete a State- approved training program on cannabis delivery, including compliance, safety and customer interaction.

(2) Cash or debit card ELECTRONIC payments may be <-- accepted, with transactions recorded electronically for <-- auditing.

(i) (J) Issuance, renewal and revocation.--The board shall <-- issue, renew and revoke permits in accordance with Chapter 6 of the Medical Marijuana Act.

(j) (K) Penalties.-- <-- (1) A violation of this section, in addition to any other penalty provided by Federal or State law, shall be subject to a civil penalty not to exceed $10,000 for each 20250SB0049PN1020 - 49 - offense or suspension or revocation of a delivery permit.

(k) (L) Definitions.--As used in this section, the following <-- words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:

"Delivery team." Two or more delivery employees staffed for 20250SB0049PN1506 - 58 - a delivery vehicle.

PATIENTS.CHAPTER 7 MISCELLANEOUS PROVISIONS Section 701.

<-- CHAPTER 6 (RESERVED) CHAPTER 7 MISCELLANEOUS PROVISIONS Section 701.

<--A DISPENSARIES.dispensary permittee shall have a physician, pharmacist, physician assistant or certified nurse practitioner available, either in person or by synchronous interaction, to verify patient certifications and to consult with patients and caregivers at all times during the hours the dispensary is open to receive patients and caregivers.

<--If Aa dispensary permittee shallhas havemore than one separate location, a single physician, pharmacist, <-- physician assistant or a certified registered nurse practitioner available,may either in person or by synchronous interaction, to verify patient certifications and to consult with patients and caregiverscaregivers, ateither allin timesperson duringor theby hourssynchronous the20250SB0049PN1020 dispensary- is50 open- interaction, at up to receivethree patientslocations andif caregivers.the locations are licensed under one permit.

If a dispensary permittee has more than one separate location, a single physician, pharmacist, physician assistant or a certified registered nurse practitioner may verify patient certifications and consult with patients and caregivers, either in person or by synchronous interaction, at up to three locations if the locations are licensed under one permit.

20250SB0049PN1506Section -702. 59 - THE FOLLOWING SHALL APPLY:

<-- (1) A DISPENSARY PERMITTEE SHALL HAVE A PHYSICIAN, PHARMACIST, PHYSICIAN ASSISTANT OR CERTIFIED NURSE PRACTITIONER AVAILABLE, EITHER IN PERSON OR BY SYNCHRONOUS INTERACTION TO CONSULT WITH PATIENTS AND CAREGIVERS AT ALL TIMES DURING THE HOURS THE DISPENSARY IS OPEN TO RECEIVE PATIENTS AND CAREGIVERS.

IF A DISPENSARY PERMITTEE HAS MORE THAN ONE SEPARATE LOCATION, A SINGLE PHYSICIAN, PHARMACIST, PHYSICIAN ASSISTANT OR A CERTIFIED REGISTERED NURSE PRACTITIONER MAY CONSULT WITH PATIENTS AND CAREGIVERS, EITHER IN PERSON OR BY SYNCHRONOUS INTERACTION, AT UP TO THREE LOCATIONS IF THE LOCATIONS ARE LICENSED UNDER ONE PERMIT.

THE PERMITTEE SHALL HAVE IN PLACE A PLAN TO DEMONSTRATE AND MAINTAIN COMPLIANCE WITH THE LABOR LAWS OF THE COMMONWEALTH.

A PHYSICIAN, A PHARMACIST, A PHYSICIAN ASSISTANT OR A CERTIFIED REGISTERED NURSE PRACTITIONER SHALL, PRIOR TO ASSUMING DUTIES UNDER THIS PARAGRAPH, SUCCESSFULLY COMPLETE THE COURSE ESTABLISHED IN SECTION 301(A)(6) OF THE MEDICAL MARIJUANA ACT.

A PHYSICIAN MAY NOT ISSUE A CERTIFICATION TO AUTHORIZE PATIENTS TO RECEIVE MEDICAL MARIJUANA OR OTHERWISE TREAT PATIENTS AT THE DISPENSARY.

(2) A DISPENSARY SHALL MAINTAIN VIDEO SURVEILLANCE EQUIPMENT IN CONTINUOUS OPERATION, INCLUDING MOTION ACTIVATED VIDEO SURVEILLANCE EQUIPMENT WITH PRE-MOTION AND POST-MOTION DETECTION CAPABILITIES.

SECTION 702.

GROWER/PROCESSORS.

(A) REMEDIATION.--A GROWER/PROCESSOR MAY APPLY SOLVENT-BASED EXTRACTION METHODS AND PROCESSES TO MEDICAL MARIJUANA PLANTS THAT HAVE FAILED A TEST CONDUCTED BY AN APPROVED LABORATORY AT HARVEST, SUBJECT TO THE FOLLOWING:

20250SB0049PN1506 - 60 - (1) THE TEST FAILURE SHALL BE LIMITED TO YEAST AND MOLD.

(2) THE MEDICAL MARIJUANA PRODUCT MUST PASS A FINAL PROCESSED TEST UNDER SECTION 704 OF THE MEDICAL MARIJUANA ACT.

(B) VIDEO SURVEILLANCE EQUIPMENT.--GROWER/PROCESSORS SHALL MAINTAIN VIDEO SURVEILLANCE EQUIPMENT IN CONTINUOUS OPERATION, INCLUDING MOTION-ACTIVATED VIDEO SURVEILLANCE EQUIPMENT WITH PRE-MOTION AND POST-MOTION DETECTION.

Section 702 703.

<-- Repeals are as follows:

20250SB0049PN1020 - 51 - (8) Chapter 12 of the Medical Marijuana Act is repealed.

Section 703703. 704.

<-- 20250SB0049PN1506 - 61 - This act shall take effect in 30 days.

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