HB 1107 — An Act establishing the Adult-use Cannabis Program; providing for farmer-grower permits; and imposing duties on the Department of Health.

PRINTER'S NO.   1232

                    THE GENERAL ASSEMBLY OF PENNSYLVANIA



                           HOUSE BILL
                           No. 1107
                                                 Session of
                                                   2025

     INTRODUCED BY SHUSTERMAN, SANCHEZ, PROBST, BURGOS, CERRATO AND
        D. WILLIAMS, APRIL 3, 2025

     REFERRED TO COMMITTEE ON HEALTH, APRIL 3, 2025


                                    AN ACT
 1   Establishing the Adult-use Cannabis Program; providing for
 2      farmer-grower permits; and imposing duties on the Department
 3      of Health.
 4                             TABLE OF CONTENTS
 5   Section 1.    Short title.
 6   Section 2.    Definitions.
 7   Section 3.    Program.
 8   Section 4.    Farmer-growers generally.
 9   Section 5.    Unlawful use of adult-use cannabis.
10   Section 6.    Application for farmer-grower permit.
11   Section 7.    Duties of farmer-growers.
12   Section 8.    Fees.
13   Section 9.    Capital.
14   Section 10.    Limitations on farmer-growers and permits.
15   Section 11.    Inventory tracking system.
16   Section 12.    Requirements regarding sites.
17   Section 13.    Reports.
18   Section 14.    Storage, transportation and tracking.
 1   Section 15.    Tax on adult-use cannabis.
 2   Section 16.    Duties of advisory board.
 3   Section 17.    Zoning.
 4   Section 18.    Notice of enactment.
 5   Section 19.    Effective date.
 6      The General Assembly of the Commonwealth of Pennsylvania
 7   hereby enacts as follows:
 8   Section 1.    Short title.
 9      This act shall be known and may be cited as the Adult-use
10   Cannabis Program Act.
11   Section 2.    Definitions.
12      The following words and phrases when used in this act shall
13   have the meanings given to them in this section unless the
14   context clearly indicates otherwise:
15      "Adult-use cannabis."       Cannabis legalized in this
16   Commonwealth for personal use by an individual who is 21 years
17   of age or older.
18      "Department."    The Department of Health of the Commonwealth.
19      "Farmer-grower."      A person, including an individual,
20   corporation, partnership, association, trust or other entity, or
21   combination of persons, holding a farmer-grower permit from the
22   department under this act.
23      "Grower/processor."       As defined under the act of April 17,
24   2016 (P.L.84, No.16), known as the Medical Marijuana Act.
25   Section 3.    Program.
26      (a)   Establishment.--The Adult-use Cannabis Program is
27   established within the department.
28      (b)   Administration and enforcement.--The department shall
29   administer and enforce the program. In doing so, the department
30   shall develop enforcement procedures, including announced and

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 1   unannounced inspections of facilities of farmer-growers and all
 2   records of the adult-use cannabis organizations.
 3   Section 4.     Farmer-growers generally.
 4      (a)   Authorization.--Subject to subsection (b), a farmer-
 5   grower may obtain seed and plant material from a
 6   grower/processor within this Commonwealth to grow, process or
 7   dispense adult-use cannabis in accordance with department
 8   regulations.
 9      (b)   Limitations.--A farmer-grower may only grow, store or
10   harvest adult-use cannabis in an area that:
11            (1)   is delineated to a single site at the address
12      identified on the permit issued by the department;
13            (2)   does not exceed 10 acres of land;
14            (3)   is enclosed by a roof and walls on all sides;
15            (4)   includes locking systems and other security and
16      surveillance features required by the department; and
17            (5)   is located within this Commonwealth.
18   Section 5.     Unlawful use of adult-use cannabis.
19      A person may not grow adult-use cannabis unless the person
20   has received a farmer-grower permit from the department under
21   this act.
22   Section 6.     Application for farmer-grower permit.
23      (a)   Components.--An application for a farmer-grower permit
24   to grow, process or dispense adult-use cannabis shall:
25            (1)   Be in a form and manner prescribed by the
26      department.
27            (2)   Include verification of all principals, operators,
28      financial backers or employees of the person applying for the
29      farmer-grower permit.
30      (b)   Regions.--The department shall establish a minimum of

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 1   three regions within this Commonwealth for the purpose of
 2   granting farmer-grower permits and enforcing this act.
 3      (c)   Review and determination.--The department shall review
 4   each completed application for a farmer-grower permit, including
 5   a renewal of a farmer-grower permit, and determine whether or
 6   not to grant the permit.
 7      (d)   Considerations.--In determining whether to grant a
 8   farmer-grower permit, the department shall consider the
 9   following:
10            (1)   Regional population.
11            (2)   Access to public transportation.
12            (3)   Any other factors that the department deems
13      relevant.
14      (e)   Additional information.--If the department is not
15   initially satisfied that the person applying for the farmer-
16   grower permit should be issued a permit, the department shall
17   notify the person in writing of the additional information or
18   documentation that is required for further consideration of the
19   application. Within 30 days of receipt of the notification, the
20   person may submit additional information or documentation to the
21   department.
22   Section 7.     Duties of farmer-growers.
23      A farmer-grower, including a person applying for a farmer-
24   grower permit, has a continuing duty to:
25            (1)   Report to the department any change in facts or
26      circumstances reflected in the application for the farmer-
27      grower permit or any newly discovered or occurring fact or
28      circumstance which is required to be included in the
29      application, including a change in control of the adult-use
30      cannabis organization.

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 1            (2)   Report to law enforcement, within 24 hours, any loss
 2      or theft of adult-use cannabis.
 3            (3)   Submit to announced or unannounced inspections by
 4      the department of the facilities for growing, processing,
 5      dispensing or selling adult-use cannabis, including all
 6      records of the farmer-grower organization.
 7   Section 8.     Fees.
 8      (a)   Initial application fee.--A person applying for a
 9   farmer-grower permit shall pay an initial application fee in the
10   amount of $2,500. The fee is nonrefundable.
11      (b)   Permit fee and period.--A person applying for a farmer-
12   grower permit shall pay a farmer-grower permit fee in the amount
13   of $2,500. The following apply:
14            (1)   The farmer-grower permit shall be valid for one
15      year.
16            (2)   The person shall submit the farmer-grower permit fee
17      at the time of submission of the application for the farmer-
18      grower permit.
19            (3)   The fee under this subsection shall be returned if
20      the department does not grant the farmer-grower permit.
21      (c)   Renewal fee and application.--If a farmer-grower chooses
22   to renew a farmer-grower permit, the farmer-grower must pay a
23   renewal fee in the amount of $2,500, which shall cover renewal
24   for all locations. The following apply:
25            (1)   The renewal fee shall be returned if the department
26      does not grant the renewal of the farmer-grower permit.
27            (2)   An application to renew a farmer-grower permit must
28      be filed with the department not more than six months nor
29      fewer than four months prior to the expiration of the farmer-
30      grower permit.

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 1      (d)   Payment.--Each fee under this section must be paid by
 2   certified check or money order.
 3   Section 9.     Capital.
 4      Before issuing an initial farmer-grower permit under this
 5   act, the department shall verify that the person applying for
 6   the farmer-grower permit has enough capital, as determined by
 7   the department, which must be on deposit with a financial
 8   institution.
 9   Section 10.     Limitations on farmer-growers and permits.
10      The following limitations apply:
11            (1)   The department shall promulgate regulations
12      initially limiting the number of farmer-grower permits
13      granted under this act. The number of farmer-grower permits
14      issued shall be determined by the department.
15            (2)   The department may not issue more than one farmer-
16      grower permit to one person.
17            (3)   A farmer-grower may only provide adult-use cannabis
18      to a grower/processor holding a valid permit under the act of
19      April 17, 2016 (P.L.84, No.16), known as the Medical
20      Marijuana Act.
21   Section 11.     Inventory tracking system.
22      A farmer-grower must implement an inventory tracking system,
23   which shall be accessible to the department. The inventory
24   tracking system shall include tracking of all of the following:
25            (1)   The number of adult-use cannabis plants located on a
26      site used for growing or cultivating adult-use cannabis.
27            (2)   The number of adult-use cannabis plants located on a
28      site used for growing or cultivating adult-use cannabis that
29      have been successfully cultivated for sale to a
30      grower/processor.

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 1          (3)    The number of adult-use cannabis plants located on a
 2      site used for growing or cultivating adult-use cannabis that
 3      are unfit for cultivation and marked for disposal as plant
 4      waste.
 5          (4)    The plant waste resulting from the growth of adult-
 6      use cannabis and disposal methods, including the name and
 7      address of any disposal service.
 8          (5)    A weekly log of each week's beginning inventory,
 9      acquisitions, amounts sold, disbursements, disposals and
10      ending inventory. The inventory tracking system shall include
11      prices paid and amounts collected from grower/processors.
12   Section 12.   Requirements regarding sites.
13      Sites used for growing or cultivating adult-use cannabis must
14   be certified, inspected and permitted by and registered with the
15   department. The failure to permit inspection by the department
16   shall be a violation of this act.
17   Section 13.   Reports.
18      Within one year of the issuance of the first permit to a
19   farmer-grower and every three months thereafter in a form and
20   manner prescribed by the department, the following information
21   shall be provided to the department, which shall compile the
22   information and post it on the department's publicly accessible
23   Internet website:
24          (1)    The amount of adult-use cannabis sold by the farmer-
25      grower during each three-month period.
26          (2)    The price charged for each amount of adult-use
27      cannabis sold by the farmer-grower, as determined by the
28      department, and total amount of revenue received from the
29      sales.
30   Section 14.   Storage, transportation and tracking.

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 1      The department shall develop regulations relating to the
 2   storage, transportation and tracking of adult-use cannabis among
 3   farmer-growers and of medical marijuana to ensure adequate
 4   security to guard against in-transit losses. The regulations
 5   shall provide for transporting adult-use cannabis to a farmer-
 6   grower.
 7   Section 15.   Tax on adult-use cannabis.
 8      (a)    Tax imposed.--A tax is imposed on the gross receipts of
 9   a grower/processor received from the sale of adult-use cannabis
10   by a farmer-grower. The tax shall be at a rate of 1%. The tax
11   shall be charged against and be paid by the grower/processor and
12   shall not be added as a separate charge or line item on any
13   sales slip, invoice, receipt or other statement or memorandum of
14   the price paid by a dispensary, patient or caregiver.
15      (b)    Information.--A farmer-grower that sells adult-use
16   cannabis shall provide to the Department of Revenue information
17   required by the Department of Revenue.
18   Section 16.   Duties of advisory board.
19      The advisory board established under section 1201 of the act
20   of April 17, 2016 (P.L.84, No.16), known as the Medical
21   Marijuana Act, shall include recommendations and findings as to
22   whether to change, add or reduce the number of farmer-growers.
23   Section 17.   Zoning.
24      A farmer-grower shall meet the same municipal zoning and land
25   use requirements as other agricultural operations that are
26   located in the same zoning district.
27   Section 18.   Notice of enactment.
28      Upon enactment of a law that legalizes adult-use cannabis in
29   this Commonwealth, the Secretary of the Commonwealth shall
30   transmit notice of the enactment to the Legislative Reference

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1   Bureau for publication in the next available issue of the
2   Pennsylvania Bulletin.
3   Section 19.   Effective date.
4      This act shall take effect as follows:
5          (1)    Section 18 shall take effect immediately.
6          (2)    This section shall take effect immediately.
7          (3)    The remainder of this act shall take effect upon
8      publication of the notice under section 18.




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