HB 1735 — An Act providing for cannabis; regulating the personal use and possession of cannabis; establishing the Cannabis Control Board; providing for powers and duties of the Cannabis Control Board; establishing the Cannabis Regulation Fund; providing for disproportionately impacted area, for regulation of cannabis business establishments, for enforcement and immunities, for laboratory testing, for advertising, marketing, packaging and labeling and for preparation, destruction and regulation of cannabis, edible and infused products; imposing a sales tax and excise tax on cannabis, edible and infused products; providing for cannabis clean slate and for miscellaneous provisions; imposing penalties; consolidating provisions relating to medical use of cannabis; transferring powers and duties of the Department of Health to the Cannabis Control Board; and making repeals.

PRINTER'S NO.   2137

                    THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        HOUSE BILL
                        No. 1735
                                                 Session of
                                                   2025

     INTRODUCED BY A. BROWN, GUZMAN AND MADDEN, JULY 14, 2025

     REFERRED TO COMMITTEE ON HEALTH, JULY 16, 2025


                                      AN ACT
 1   Providing for cannabis; regulating the personal use and
 2      possession of cannabis; establishing the Cannabis Control
 3      Board; providing for powers and duties of the Cannabis
 4      Control Board; establishing the Cannabis Regulation Fund;
 5      providing for disproportionately impacted area, for
 6      regulation of cannabis business establishments, for
 7      enforcement and immunities, for laboratory testing, for
 8      advertising, marketing, packaging and labeling and for
 9      preparation, destruction and regulation of cannabis, edible
10      and infused products; imposing a sales tax and excise tax on
11      cannabis, edible and infused products; providing for cannabis
12      clean slate and for miscellaneous provisions; imposing
13      penalties; consolidating provisions relating to medical use
14      of cannabis; transferring powers and duties of the Department
15      of Health to the Cannabis Control Board; and making repeals.
16                            TABLE OF CONTENTS
17   Chapter 1.   Preliminary Provisions
18   Section 101.   Short title.
19   Section 102.   Definitions.
20   Chapter 2.   Cannabis
21      Subchapter A.   Cannabis Control Board
22   Section 201.   Establishment of board.
23   Section 202.   Code of conduct.
24   Section 203.   Applicability of other statutes.
25   Section 204.   Board meetings.
 1   Section 205.   Board records.
 2   Section 206.   Regulations.
 3   Section 207.   Powers and duties of board.
 4   Section 208.   Confidentiality and public disclosure.
 5   Section 209.   Unauthorized activities and civil penalties.
 6   Section 210.   Cannabis Regulation Fund.
 7   Section 211.   Report of board.
 8   Section 212.   Authority.
 9   Section 213.   Transfer of authority.
10      Subchapter B.   (Reserved)
11      Subchapter C.   Lawful Use of Cannabis
12   Section 221.   Lawful use of cannabis.
13   Section 222.   Possession limits.
14   Section 223.   Individuals younger than 21 years of age.
15   Section 224.   Identification.
16   Section 225.   Immunities and presumptions related to use of
17              cannabis by purchasers, patients and caregivers.
18   Section 226.   Discrimination prohibited.
19   Section 227.   Limitations.
20   Section 228.   Employment and employer liability.
21      Subchapter D.   (Reserved)
22      Subchapter E.   Disproportionately Impacted Area and Small
23          Business
24   Section 241.   Disproportionately impacted area and small
25              business.
26   Section 242.   Grants and loans to disproportionately impacted
27              area and small business applicants.
28   Section 243.   Transfer of permit awarded to qualified
29              disproportionately impacted area or small business
30              applicant.

20250HB1735PN2137                     - 2 -
 1      Subchapter F.   Regulation of Cannabis Business Establishments
 2   Section 251.   Permit required.
 3   Section 252.   Authorization of current medical cannabis
 4              organizations to commence dispensing cannabis to
 5              purchasers.
 6   Section 253.   Issuance of dispensary permits to qualified
 7              applicants in disproportionately impacted area.
 8   Section 253.1. Issuance of small business dispensary permits.
 9   Section 254.   New dispensing organization permits.
10   Section 255.   Selection criteria for new dispensing organization
11              permits.
12   Section 256.   Dispensing organization operational requirements
13              and prohibitions.
14   Section 257.   Dispensing cannabis.
15   Section 258.   Agent-in-charge.
16   Section 258.1. Seed-to-sale tracking system.
17   Section 258.2. Storage requirements.
18   Section 258.3. Destruction and disposal of cannabis.
19   Section 258.4. Security measures.
20   Section 258.5. Recordkeeping.
21   Section 258.6. Issuance of cultivation center permits.
22   Section 258.7. Issuance of cultivation center permits to current
23              medical cannabis grower/processor permit holders.
24   Section 258.8. New cultivation center permits.
25   Section 258.9. Cultivation center requirements and prohibitions.
26   Section 258.10. Issuance of micro cultivation center permits.
27   Section 258.11. Micro cultivation center permit applications.
28   Section 258.12. Selection criteria for micro cultivation center
29              permits.
30   Section 258.13. Issuance of additional micro cultivation

20250HB1735PN2137                    - 3 -
 1              permits.
 2   Section 258.14. Micro cultivation center requirements and
 3              prohibitions.
 4   Section 258.15. Cannabis business establishment agent
 5              identification cards.
 6   Section 258.16. Background check for cannabis business
 7              establishment applicants.
 8   Section 258.17. Renewal of cannabis business establishment
 9              permits and cannabis business establishment agent
10              identification cards.
11   Section 258.18. Warehousing and distribution permits.
12   Section 259.   Prices.
13      Subchapter G.   Enforcements and Immunities
14   Section 261.   Permit discipline.
15   Section 262.   Immunities and presumptions relating to handling
16              of cannabis by cannabis business establishments and
17              agents.
18   Section 263.   Commonwealth standards and requirements.
19   Section 264.   Violation of tax acts and refusal, revocation or
20              suspension of permit or agent identification card.
21      Subchapter H.   Laboratory Testing
22   Section 271.   Laboratory testing requirements and prohibitions.
23      Subchapter I.   Advertising, Marketing, Packaging and Labeling
24   Section 281.   Advertising and promotions.
25   Section 282.   Edible and non-edible infused product packaging
26              and labeling.
27      Subchapter J.   Preparation, Destruction and Regulation of
28          Cannabis, Edible and Non-edible Infused Products
29   Section 291.   Preparation of edible and non-edible infused
30              products.

20250HB1735PN2137                  - 4 -
 1   Section 292.   Destruction of cannabis.
 2   Section 293.   Local ordinances.
 3   Section 294.   Confidentiality.
 4   Section 295.   Financial institutions.
 5   Section 296.   Contracts enforceable.
 6   Section 297.   Medical cannabis.
 7      Subchapter K.   Taxes
 8   Section 299.1. Imposition of sales tax and excise tax.
 9   Section 299.2. Administration of taxes and distribution of
10                revenue.
11   Section 299.3. (Reserved).
12      Subchapter L.   Cannabis Clean Slate
13   Section 299.11. Cannabis clean slate.
14      Subchapter M.   Miscellaneous Provisions
15   Section 299.21. Conflicts.
16   Section 299.22. (Reserved).
17   Section 299.23. Implementation.
18   Chapter 3.   Medical Use of Cannabis
19      Subchapter A.   Preliminary Provisions
20   Section 301.   Scope of chapter.
21   Section 302.   Declaration of policy.
22   Section 303.   (Reserved).
23      Subchapter B.   Program
24   Section 311.   Program established.
25   Section 312.   (Reserved).
26   Section 313.   Lawful use of medical cannabis by patients.
27   Section 314.   (Reserved).
28      Subchapter C.   Practitioners
29   Section 321.   Practitioner registration.
30   Section 322.   Practitioner restrictions.

20250HB1735PN2137                  - 5 -
 1   Section 323.   Issuance of certification.
 2   Section 324.   Certification form.
 3   Section 325.   Duration.
 4      Subchapter D.   Patients
 5   Section 331.   Identification cards.
 6   Section 332.   Caregivers.
 7   Section 333.   Notice.
 8   Section 334.   Verification.
 9   Section 335.   Special conditions.
10   Section 336.   (Reserved).
11   Section 337.   Minors.
12   Section 338.   Caregiver authorization and limitations.
13   Section 339.   Contents of identification card.
14   Section 339.1. Suspension.
15   Section 339.2. Prohibitions.
16      Subchapter E.   (Reserved)
17      Subchapter F.   (Reserved)
18      Subchapter G.   Dispensaries
19   Section 361.   Dispensing to patients and caregivers.
20   Section 362.   Facility requirements.
21   Section 363.   Posting.
22      Subchapter H.   (Reserved)
23      Subchapter I.   (Reserved)
24      Subchapter J.   (Reserved)
25      Subchapter K.   Offenses Related to Patients, Caregivers and
26          Providers
27   Section 393.1. Criminal diversion of medical cannabis by
28              practitioners.
29   Section 393.2. (Reserved).
30   Section 393.3. (Reserved).

20250HB1735PN2137                    - 6 -
 1   Section 393.4. (Reserved).
 2   Section 393.5. Falsification of identification cards.
 3   Section 393.6. Adulteration of cannabis by patient, caregiver or
 4              practitioner.
 5   Section 393.7. Disclosure of information prohibited.
 6   Section 393.8. Additional penalties.
 7   Section 393.9. Other restrictions.
 8      Subchapter L.   (Reserved)
 9      Subchapter M.   Academic Clinical Research Centers and
10          Clinical Registrants
11   Section 399.21. Legislative findings and declaration of policy.
12   Section 399.22. Definitions.
13   Section 399.23. Academic clinical research centers.
14   Section 399.24. Clinical registrants.
15   Section 399.25. Research study.
16      Subchapter N.   Miscellaneous Provisions
17   Section 399.31. Conflict.
18   Section 399.32. (Reserved).
19   Section 399.33. Insurers.
20   Section 399.34. Protections for patients and caregivers.
21   Section 399.35. (Reserved).
22   Section 399.36. (Reserved).
23   Section 399.37. (Reserved).
24   Section 399.38. Notice.
25   Section 399.39. (Reserved).
26   Section 399.40. (Reserved).
27   Section 399.41. Repeals.
28   Section 399.42. Continuation.
29   Section 399.43. Effective date.
30      The General Assembly of the Commonwealth of Pennsylvania

20250HB1735PN2137                    - 7 -
 1   hereby enacts as follows:
 2                                     CHAPTER 1
 3                            PRELIMINARY PROVISIONS
 4   Section 101.    Short title.
 5      This act shall be known and may be cited as the Cannabis Act.
 6   Section 102.    Definitions.
 7      The following words and phrases when used in this act shall
 8   have the meanings given to them in this section unless the
 9   context clearly indicates otherwise:
10      "Adult-use."     Purchase and consumption of cannabis by an
11   individual who is at least 21 years of age.
12      "Advertise."     To engage in promotional activities, including
13   through newspaper, radio, Internet and electronic media and
14   television advertising. The term includes the distribution of
15   fliers and circulars, billboard advertising and the display of
16   window signs. The term does not include interior dispensary
17   signage or exterior signage displaying the name of the permitted
18   cannabis business establishment.
19      "Agent" or "cannabis business establishment agent."     A
20   principal officer, board member, employee or other agent of a
21   cannabis business establishment who is 21 years of age or older.
22      "Applicant."     An individual or entity applying for a permit
23   under this act.
24      "Board."    The Cannabis Control Board established under
25   Subchapter A of Chapter 2.
26      "Cannabis."      As follows:
27          (1)     Any of the following:
28                 (i)   Marijuana, hashish or other substances that are
29          identified as including any parts of the plant Cannabis
30          sativa and including derivatives or subspecies, such as

20250HB1735PN2137                       - 8 -
 1          indica, of all strains of cannabis, whether growing or
 2          not, including the seeds, resin extracted from any part
 3          of the plant and any compound, manufacture, salt,
 4          derivative, mixture or preparation of the plant. The term
 5          includes THC and all other naturally produced cannabinol
 6          derivatives, whether produced directly or indirectly by
 7          extraction, including, delta-7 THC, delta-8 THC, delta-9
 8          THC or any structural, optical or geometric isomers of
 9          tetrahydrocannabinol, cannabis flower, concentrate,
10          edible and infused products.
11                (ii)   A product intended for human consumption with a
12          THC concentration, however derived, greater than the
13          allowable THC limit specified in this act.
14          (2)   The term does not include the mature stalks of the
15      plant, fiber produced from the stalks, oil or cake made from
16      the seeds of the plant or any other compound, manufacture,
17      salt, derivative, mixture or preparation of the mature
18      stalks, the sterilized seed of the plant that is incapable of
19      germination or industrial hemp as defined in 3 Pa.C.S. § 702
20      (relating to definitions).
21      "Cannabis business establishment."     An individual or entity
22   holding a permit issued by the board to cultivate, process,
23   dispense, infuse or transport cannabis, including a dispensing
24   organization, cultivation center, disproportionately impacted
25   area dispensing organization permit holder, small business
26   permit holder or micro cultivation center.
27      "Cannabis business establishment agent identification card"
28   or "agent identification card."     An identification card held by
29   an authorized agent of a dispensing organization,
30   disproportionately impacted area dispensing organization permit

20250HB1735PN2137                    - 9 -
 1   holder, micro cultivation center, small business or cultivation
 2   center.
 3      "Cannabis concentrate."     A product derived from cannabis that
 4   is produced by extracting cannabinoids, including THC, with the
 5   intended use of smoking, vaping or making an edible or infused
 6   product. The term includes a product derived from cannabis that
 7   is produced by means of heat and pressure or mechanical
 8   separations.
 9      "Cannabis flower."     Marijuana, hashish or other substances
10   identified as including any parts of the plant Cannabis sativa
11   and including derivatives or subspecies, such as indica, of all
12   strains of cannabis, including raw kief, leaves and buds. The
13   term does not include resin that has been extracted from any
14   part of the plant or any compound, manufacture, salt,
15   derivative, mixture or preparation of the plant, the plant's
16   seeds or resin.
17      "Cannabis-infused edible product."     A product meant to be
18   chewed, dissolved, taken sublingually or buccally or swallowed.
19   The term includes liquids, including beverages, food, oil,
20   tincture, capsule, tablet, gummies or other ingestible forms
21   containing cannabis or cannabis concentrate that are not
22   intended to be smoked or otherwise inhaled.
23      "Cannabis-infused non-edible product."     A product meant to be
24   used topically or otherwise not intended to be ingested. The
25   term includes gels, creams, patches or ointments containing
26   cannabis or cannabis concentrate.
27      "Cannabis paraphernalia."      Any equipment, product or material
28   of any kind which is primarily intended or designed for any of
29   the following:
30             (1)   Use in vaporizing, ingesting, inhaling or otherwise

20250HB1735PN2137                     - 10 -
 1      introducing an edible or non-edible infused product into the
 2      human body.
 3          (2)   Preparing, storing or containing cannabis.
 4      "Cannabis seed-to-sale tracking system" or "seed-to-sale
 5   tracking system."     A system designated by the board as the
 6   system of record or a secondary electronic tracking system used
 7   by a cannabis business establishment or testing laboratory.
 8      "Cannabis testing facility."      An entity registered by the
 9   board to test cannabis for potency and contaminants.
10      "Caregiver."      The term includes the following entities
11   designated to deliver medical cannabis:
12          (1)   An individual designated by a patient.
13          (2)   If the patient is under 18 years of age, an
14      individual under section 337(2).
15          (3)   Individuals designated in writing, for purposes of
16      section 332, by an organization that provides hospice,
17      palliative or home health care services and:
18                (i)    are employed by an organization that is licensed
19          under the act of July 19, 1979 (P.L.130, No.48), known as
20          the Health Care Facilities Act;
21                (ii)    have significant responsibility for managing
22          the health care and well-being of a patient; and
23                (iii)    were designated by the organization to provide
24          care to a patient who has provided authorization for the
25          designation.
26          (4)   Individuals designated in writing, for purposes of
27      section 332, by a residential facility, including a long-term
28      care nursing facility, skilled nursing facility, assisted
29      living facility, personal care home, independent long-term
30      care facility or intermediate care facility for individuals

20250HB1735PN2137                     - 11 -
 1      with intellectual disabilities that:
 2                 (i)    are licensed by the board or the Department of
 3          Human Services;
 4                 (ii)    have significant responsibility for managing
 5          the health care and well-being of the patient; and
 6                 (iii)    were designated by the residential facility to
 7          provide care to a patient who has provided authorization
 8          for the designation.
 9      "Certified medical use."      The acquisition, possession, use or
10   transportation of medical cannabis by a patient, or the
11   acquisition, possession, delivery, transportation or
12   administration of medical cannabis by a caregiver, for use as
13   part of the treatment of the patient's serious medical
14   condition, as authorized in a certification under this act,
15   including enabling the patient to tolerate treatment for the
16   serious medical condition.
17      "Certified registered nurse practitioner."      As defined in
18   section 2 of the act of May 22, 1951 (P.L.317, No.69), known as
19   The Professional Nursing Law.
20      "Change in control."      The acquisition by a person or group of
21   persons acting in concert of a controlling interest in an
22   applicant or permittee either all at one time or over the span
23   of a 12-consecutive-month period.
24      "Chief medical officer."      The chief medical officer hired
25   under section 207(a)(2).
26      "Clone."    A plant section from a female cannabis plant not
27   yet root-bound, growing in a water solution or other propagation
28   matrix, that can develop into a new plant.
29      "Continuing care."      Treating a patient, in the course of
30   which the practitioner has completed a full assessment of the

20250HB1735PN2137                      - 12 -
 1   patient's medical history and current medical condition,
 2   including a consultation with the patient.
 3      "Controlling interest."   As follows:
 4          (1)   For a publicly traded entity, voting rights that
 5      entitle a person to elect or appoint one or more of the
 6      members of the board of directors or other governing board or
 7      the ownership or beneficial holding of 5% or more of the
 8      securities of the publicly traded entity.
 9          (2)   For a privately held entity, the ownership of any
10      security in the entity.
11      "Cultivation center."   An organization that cultivates,
12   processes, cures, produces or performs other necessary
13   activities to make cannabis available to patients or purchasers,
14   including a micro cultivation center.
15      "Cultivation center permit."   A permit issued by the board
16   that permits an entity to act as a cultivation center under this
17   act or any regulation promulgated in accordance with this act
18   and permits the entity to offer home delivery services where
19   cannabis, edibles and infused products, as approved by the
20   board, are delivered directly to a purchaser or patient.
21      "Curbside."   The transfer or dispensing of cannabis or an
22   edible or non-edible infused product by an employee of a
23   cannabis business establishment to a vehicle located in the
24   parking area or to an individual at the entrance of the
25   facility.
26      "Department."   The Department of Health of the Commonwealth.
27      "Dispensary."   A person, including a natural person,
28   corporation, partnership, association, trust or other entity, or
29   any combination thereof, which holds a permit issued by the
30   board to dispense medical cannabis.

20250HB1735PN2137                  - 13 -
 1      "Dispensing organization."     An organization, including a
 2   person, that meets all of the following criteria:
 3          (1)    The organization is permitted by the board to
 4      acquire cannabis from a cultivation center or micro
 5      cultivation center or other dispensary for the purpose of
 6      selling or dispensing cannabis, cannabis concentrates, edible
 7      and non-edible infused products, cannabis seeds,
 8      paraphernalia or related supplies to purchasers under this
 9      chapter or to patients and caregivers under Chapter 3.
10          (2)    The organization is a dual-use dispensary.
11          (3)    The organization complies with the provisions of
12      Chapter 3.
13      "Dispensing organization permit."     A permit issued by the
14   board that allows a person to act as a dispensing organization
15   under this chapter or any regulation promulgated in accordance
16   with this chapter and Chapter 3.
17      "Disproportionately impacted area."     A census tract that
18   satisfies the criteria determined by the board and that meets at
19   least one of the following criteria:
20          (1)    The area has a poverty rate of at least 20%
21      according to the most recent Federal decennial census.
22          (2)    Seventy-five percent or more of the children in the
23      area participate in the National School Lunch Program
24      according to reported statistics from the State Board of
25      Education.
26          (3)    At least 20% of the households in the area receive
27      assistance under the Supplemental Nutrition Assistance
28      Program.
29          (4)    The area has an average unemployment rate, as
30      determined by the Department of Labor and Industry, that is

20250HB1735PN2137                    - 14 -
 1      more than 120% of the national unemployment average as
 2      determined by the United States Department of Labor for a
 3      period of at least 12 consecutive calendar months preceding
 4      the date of the application for a permit under this act and
 5      has a high rate of arrest, conviction and incarceration
 6      related to the sale, possession, use, cultivation,
 7      manufacture or transport of cannabis.
 8      "Disproportionately impacted area applicant."     An applicant
 9   that does not generate an annual income of more than $75,000 or
10   have financial assets exceeding $250,000 and is composed of at
11   least 75% ownership and control by one or more individuals who
12   have resided for at least five of the preceding 10 years in a
13   disproportionately impacted area in this Commonwealth.
14      "Enclosed, locked facility."     A room, greenhouse, building or
15   other enclosed area equipped with locks or other security
16   devices that permit access only to cannabis business
17   establishment agents working for the permitted cannabis business
18   establishment or acting under this act to cultivate, process,
19   store or distribute cannabis.
20      "Enclosed, locked space."     Space within a facility, building
21   or other enclosed area equipped with locks or other security
22   devices that permit access only to authorized individuals under
23   this act.
24      "Excipients."   Solvents, chemicals or materials reported by a
25   medical cannabis organization and approved by the board for use
26   in the processing of medical cannabis.
27      "Executive director."   The executive director of the board.
28      "Family or household member."     As defined in 23 Pa.C.S. §
29   6102 (relating to definitions).
30      "Financial backer."   An investor, mortgagee, bondholder, note

20250HB1735PN2137                    - 15 -
 1   holder or other source of equity, capital or other assets, other
 2   than a financial institution.
 3      "Financial institution."     As defined in section 3003.22(r) of
 4   the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
 5   Code of 1971.
 6      "Flowering stage."   The stage of cultivation where and when a
 7   cannabis plant is cultivated to produce plant material for an
 8   edible or non-edible infused product. The term includes mature
 9   plants if any of the following apply:
10          (1)   More than two stigmas are visible at each internode
11      of the plant.
12          (2)   The cannabis plant is in an area that has been
13      intentionally deprived of light for a period of time intended
14      to produce flower buds and induce maturation, from the moment
15      the light deprivation began through the remainder of the
16      cannabis plant growth cycle.
17      "Form of medical cannabis."     The characteristics of the
18   medical cannabis recommended or limited for a particular
19   patient, including the method of consumption and any particular
20   dosage, strain, variety and quantity or percentage of medical
21   cannabis or particular active ingredient.
22      "Identification card."   A document issued under section 331
23   that authorizes access to cannabis for a patient under this
24   chapter.
25      "Individual dose."   A single measure of medical cannabis.
26      "Limited access area."   A room or other area under the
27   control of a dispensing organization where cannabis sales occur
28   with access limited to individuals who are 21 years of age or
29   older and qualified patients and caregivers or other individuals
30   as determined by the board's regulations.

20250HB1735PN2137                    - 16 -
 1      "Medical cannabis."   Cannabis for certified medical use as
 2   set forth in this act.
 3      "Medical cannabis grower/processor."      A person, including a
 4   natural person, corporation, partnership, association, trust or
 5   other entity, or any combination thereof, which holds a permit
 6   from the board under this act to grow and process medical
 7   cannabis.
 8      "Medical cannabis organization."      A dispensary or a
 9   cultivation center.
10      "Micro cultivation center."     A facility operated by an
11   individual or entity that is permitted to cultivate, dry, cure
12   and package cannabis and perform other necessary activities to
13   make cannabis available for sale at a dispensing organization.
14      "Micro cultivation center permit."      A permit issued by the
15   board to an individual or entity to conduct activities of a
16   micro cultivation center under this act.
17      "Minority-owned business."     As defined in 74 Pa.C.S. § 303(b)
18   (relating to diverse business participation).
19      "Ordinary public view."     Within the sight line of a normal
20   visual range of an individual, unassisted by visual aids, from a
21   public street or sidewalk adjacent to real property or from
22   within an adjacent property.
23      "Patient."   An individual who:
24          (1)   has a serious medical condition;
25          (2)   has met the requirements for certification under
26      this act; and
27          (3)   is a resident of this Commonwealth.
28      "Permit" or "license."    An authorization issued by the board
29   to a cannabis business establishment to conduct activities under
30   this act.

20250HB1735PN2137                    - 17 -
 1      "Permittee" or "licensee."     An individual or entity granted a
 2   permit under this act.
 3      "Person."    An individual, firm, partnership, association,
 4   joint stock company, joint venture, public or private
 5   corporation, limited liability company or a receiver, executor,
 6   trustee, guardian or other representative appointed by order of
 7   a court.
 8      "Physician assistant."    As defined in section 2 of the act of
 9   December 20, 1985 (P.L.457, No.112), known as the Medical
10   Practice Act of 1985, and section 2 of the act of October 5,
11   1978 (P.L.1109, No.261), known as the Osteopathic Medical
12   Practice Act.
13      "Possession limit."    The amount of cannabis that a purchaser
14   may possess at any one time, not including an individual who is
15   a patient or caregiver under Chapter 3.
16      "Practitioner."    A physician who is registered with the board
17   under section 321.
18      "Prescription drug monitoring program."    The Achieving Better
19   Care by Monitoring All Prescriptions Program (ABC-MAP).
20      "Principal."    An officer, director or person who directly
21   owns a beneficial interest in or ownership of the securities of
22   an applicant or permittee, a person who has a controlling
23   interest in an applicant or permittee or who has the ability to
24   elect the majority of the board of directors of an applicant or
25   permittee or otherwise control an applicant or permittee, other
26   than a financial institution.
27      "Principal officer."    Any of the following:
28          (1)     An officer, director or person who directly owns
29      more than a 1% beneficial interest or ownership of the
30      securities of a cannabis business establishment applicant or

20250HB1735PN2137                    - 18 -
 1      permittee or more than a 10% beneficial interest or ownership
 2      of the securities of a cannabis business establishment
 3      applicant or permittee that is a publicly traded company.
 4          (2)   A person who has a controlling interest in a
 5      cannabis business establishment applicant or permittee or who
 6      has the ability to elect the majority of the board of
 7      directors of a cannabis business establishment applicant or
 8      permittee.
 9          (3)   A person who otherwise controls a cannabis business
10      establishment applicant or permittee, not including a
11      financial institution.
12      "Process lot."   An amount of a cannabis product of the same
13   type and processed using the same cannabis extract, standard
14   operating procedures and the same or combination of different
15   harvest lots.
16      "Purchaser."   An individual 21 years of age or older who
17   acquires cannabis for consideration. The term does not include a
18   cannabis business establishment agent identification card holder
19   as used in accordance with Chapter 3.
20      "Registry."    The registry established by the board for
21   practitioners.
22      "Remediation."   The reprocessing of a manufactured edible or
23   non-edible infused product batch that has failed laboratory
24   testing conducted by a cannabis testing facility or the
25   processing of a harvest lot that has failed laboratory testing
26   conducted by a cannabis testing facility.
27      "Restricted access area."    An area of a permitted cannabis
28   business establishment where only cannabis business
29   establishment agents are allowed, with limited exceptions.
30      "Safety-sensitive position."    A position that requires any

20250HB1735PN2137                   - 19 -
 1   activity that an employer reasonably believes presents a
 2   potential risk of harm to the health or safety of an employee or
 3   others while under the influence of medical cannabis, including:
 4          (1)    Duties performed at heights or in confined spaces,
 5      including mining.
 6          (2)    The operation of a motor vehicle, other vehicle,
 7      equipment, machinery or a power tool.
 8          (3)    Repairing, maintaining or monitoring the performance
 9      or operation of any equipment, machinery or manufacturing
10      process, the malfunction or disruption of which could result
11      in injury or property damage.
12          (4)    Performing firefighting duties as permitted under
13      Chapter 3.
14          (5)    The operation, maintenance or oversight of critical
15      services and infrastructure, including electric, gas and
16      water utilities, power generation or distribution.
17          (6)    The extraction, compression, processing,
18      manufacturing, handling, packaging, storage, disposal,
19      treatment or transport of potentially volatile, flammable or
20      combustible materials, elements, chemicals or other highly
21      regulated component.
22          (7)    Dispensing pharmaceuticals.
23          (8)    A position that requires the employee to carry a
24      firearm.
25          (9)    Direct patient care or direct child care.
26      "Secretary."    The Secretary of Health of the Commonwealth.
27      "Security."    As defined in section 102(t) of the act of
28   December 5, 1972 (P.L.1280, No.284), known as the Pennsylvania
29   Securities Act of 1972.
30      "Serious medical condition."    Any of the following:

20250HB1735PN2137                   - 20 -
 1          (1)    Cancer, including remission therapy.
 2          (2)    Positive status for human immunodeficiency virus or
 3      acquired immune deficiency syndrome.
 4          (3)    Amyotrophic lateral sclerosis.
 5          (4)    Parkinson's disease.
 6          (5)    Multiple sclerosis.
 7          (6)    Damage to the nervous tissue of the central nervous
 8      system (brain-spinal cord) with objective neurological
 9      indication of intractable spasticity and other associated
10      neuropathies.
11          (7)    Epilepsy.
12          (8)    Inflammatory bowel disease.
13          (9)    Neuropathies.
14          (10)     Huntington's disease.
15          (11)     Crohn's disease.
16          (12)     Posttraumatic stress disorder.
17          (13)     Intractable seizures.
18          (14)     Glaucoma.
19          (15)     Sickle cell anemia.
20          (16)     Severe chronic or intractable pain of neuropathic
21      origin or severe chronic or intractable pain.
22          (17)     Autism.
23          (18)     Other conditions that a certifying physician
24      determines may benefit a patient under their continuing care.
25          (19)     Other conditions that are recommended by the chief
26      medical officer and approved by the board under section 207.
27      "Small business."      An independently owned and operated for-
28   profit business employing 100 or fewer employees and not a
29   subsidiary or affiliate of a corporation.
30      "Smoking."    The inhalation of smoke caused by the combustion

20250HB1735PN2137                       - 21 -
 1   of cannabis.
 2      "Synchronous interaction."         A two-way or multiple-way
 3   exchange of information between a patient and a health care
 4   provider that occurs in real time via audio or video
 5   conferencing.
 6      "Terminally ill."        A medical prognosis of life expectancy of
 7   approximately one year or less if the illness runs its normal
 8   course.
 9      "THC."       A delta-9 tetrahydrocannabinol and any structural,
10   optical or geometric isomers of tetrahydrocannabinol, including
11   delta-7, delta-8 and delta-10 tetrahydrocannabinol,
12   tetrahydrocannabinolic acid, tetrahydrocannabiphorol,
13   hexahydrocannabinol and any other substance, however derived,
14   that has similar effects on the mind or body as determined by
15   the board.
16      "Tincture."         A cannabis-infused solution, typically comprised
17   of alcohol, glycerin or vegetable oils derived either directly
18   from the cannabis plant or from a processed cannabis extract.
19   The term does not include an alcoholic liquor as used in the act
20   of April 12, 1951 (P.L.90, No.21), known as the Liquor Code. The
21   term shall include a calibrated dropper or other similar device
22   capable of accurately measuring servings.
23      "Under the influence."        One or more of the following:
24             (1)    A drug test resulting in:
25                   (i)    a level of tetrahydrocannabinolic acid in an
26             employee's urine that is equal to or greater than 15
27             nanograms per milliliter; or
28                   (ii)    an adulterated or substituted testing sample
29             provided by an employee.
30             (2)    An employer's good faith determination that an

20250HB1735PN2137                        - 22 -
 1      employee is under the influence of cannabis based on
 2      observable physical behavior or characteristics, provided
 3      that the employee may rebut the determination by immediately
 4      submitting to a drug test, the results of which demonstrate
 5      that the level of tetrahydrocannabinolic acid in the
 6      employee's urine is less than 15 nanograms per milliliter.
 7      "Veteran-owned small business."          As defined in 51 Pa.C.S. §
 8   9601 (relating to definitions).
 9      "Women-owned business."       As defined in 74 Pa.C.S. § 303(b).
10                                    CHAPTER 2
11                                     CANNABIS
12                                   SUBCHAPTER A
13                              CANNABIS CONTROL BOARD
14   Section 201.     Establishment of board.
15      (a)     Board established.--The Cannabis Control Board is
16   established as an independent board which shall be a body
17   corporate and politic.
18      (b)     Membership.--The board shall consist of the following
19   members:
20            (1)   Three members appointed by the Governor.
21            (2)   One member appointed by each of the following:
22                  (i)    The President pro tempore of the Senate.
23                  (ii)    The Speaker of the House of Representatives.
24                  (iii)    The Minority Leader of the Senate.
25                  (iv)    The Minority Leader of the House of
26            Representatives.
27      (c)     Removal.--A member of the board shall be removed from
28   office by the appointing authority:
29            (1)   for misconduct in office, willful neglect of duty or
30      conduct evidencing unfitness for office or incompetence; or

20250HB1735PN2137                       - 23 -
 1            (2)   upon conviction of an offense graded as a felony, an
 2      infamous crime, an offense under Chapter 3 or an equivalent
 3      offense under Federal law or the law of another jurisdiction.
 4      (d)   Initial appointments to board.--
 5            (1)   Gubernatorial appointees initially appointed under
 6      subsection (b)(1) shall serve an initial term of one, two and
 7      three years respectively as designated by the Governor at the
 8      time of appointment and until their successors are appointed
 9      and qualified.
10            (2)   Legislative appointees initially appointed under
11      subsection (b)(2) shall serve until the third Tuesday in
12      January 2027 and until their successors are appointed and
13      qualified.
14            (3)   An appointment to fill a vacancy created by a member
15      appointed in accordance with paragraph (1) or (2) shall be
16      for the remainder of the unexpired term.
17      (e)   Terms of office.--Upon the expiration of a term of a
18   member appointed under subsection (d), the following shall
19   apply:
20            (1)   The term of office of a gubernatorial appointee
21      shall be three years and until a successor is appointed and
22      qualified.
23            (2)   The term of office of a legislative appointee shall
24      be two years and until a successor is appointed and
25      qualified.
26            (3)   A gubernatorial appointee shall serve no more than
27      two full consecutive terms.
28            (4)   A legislative appointee shall serve no more than
29      three full consecutive terms.
30            (5)   An appointment to fill a vacancy shall be for the

20250HB1735PN2137                    - 24 -
 1      remainder of the unexpired term.
 2             (6)   A member appointed to fill a vacancy under paragraph
 3      (3) may serve two full terms following the expiration of the
 4      term related to the vacancy.
 5             (7)   A member appointed to fill a vacancy under paragraph
 6      (4) may serve three full terms following the expiration of
 7      the term related to the vacancy.
 8      (f)    Ex officio members.--The Secretary of Agriculture, the
 9   Secretary of Health, the Secretary of Community and Economic
10   Development, the Attorney General and the Pennsylvania State
11   Police Commissioner, or their designees, shall serve on the
12   board as nonvoting ex officio members of the board. The designee
13   shall be a deputy secretary or an equivalent position within the
14   agency.
15      (g)    Executive director of the board.--Within seven days of
16   the effective date of this subchapter, the Governor shall
17   nominate an interim executive director. The Governor's nominee
18   shall be subject to Senate confirmation and the Senate shall
19   hold the confirmation vote within seven days of the nomination.
20   If the Senate fails to hold the confirmation vote within seven
21   days of nomination, the Senate shall be deemed to have confirmed
22   the nominee. If the Senate rejects the nominee, the Governor
23   shall have five days to nominate a second proposed interim
24   executive director and the Senate shall have five days after the
25   nomination to hold a confirmation vote. If the Senate fails to
26   hold a confirmation vote within five days of the nomination, the
27   Senate shall be deemed to have confirmed the nominee. If the
28   Senate rejects the nominee, the Governor shall have three days
29   to nominate a third proposed interim executive director and the
30   Senate shall have three days after the nomination to hold a

20250HB1735PN2137                     - 25 -
 1   confirmation vote. The process for the third proposed interim
 2   director shall continue until an interim executive director is
 3   confirmed by the Senate. The following shall apply:
 4            (1)   The interim executive director may be the permanent
 5      executive director and shall not be prohibited from
 6      employment with the board in any other position.
 7            (2)   Between the effective date of this subchapter and
 8      when the board is fully constituted, staffed and operational,
 9      it is the intent of the General Assembly for regulated
10      materials and regulated activities to be administered by the
11      interim executive director on a temporary basis.
12            (3)   The interim executive director and executive
13      director shall be considered employees of the board for
14      compensation purposes.
15      (h)   Background investigation.--Appointees shall be subject
16   to a background investigation conducted by the Pennsylvania
17   State Police in accordance with this subchapter.
18      (i)   Qualifications and restrictions.--
19            (1)   Each member at the time of appointment shall be at
20      least 25 years of age and shall have been a resident of this
21      Commonwealth for a period of at least one year immediately
22      preceding appointment. Each member shall continue to remain a
23      resident of this Commonwealth during the term of membership
24      on the board.
25            (2)   Except for ex officio members, a person may not be
26      appointed a member of the board or be employed by or be an
27      independent contractor of the board if that individual is a
28      public official or party officer, as those terms are defined
29      in 4 Pa.C.S. § 1512 (relating to financial and employment
30      interests), in this Commonwealth or any of its political

20250HB1735PN2137                    - 26 -
 1    subdivisions.
 2        (3)   Each member, employee and independent contractor of
 3    the board shall sign an agreement to not disclose
 4    confidential information.
 5        (4)   A member, employee or independent contractor of the
 6    board or another agency having regulatory authority over the
 7    board or cannabis business establishments may not be
 8    employed, hold any office or position or be engaged in any
 9    activity which is incompatible with the position, employment
10    or contract.
11        (5)   A member may not engage in any business, employment
12    or vocation for which the member receives a salary,
13    compensation or fee for services rendered which is in excess
14    of 15% of the member's gross annual salary as a member of the
15    board. For purposes of this paragraph, the terms "salary,"
16    "compensation" and "fee" do not include any of the following:
17              (i)    Passive or unearned income, including interest,
18        dividends or capital gains from the sale of assets or
19        securities held for investment purposes.
20              (ii)    Health care benefits or retirement, pension or
21        annuity payments.
22              (iii)    Amounts received from a family-controlled
23        trade or business in which both personal services and
24        capital are income-producing factors, provided that the
25        personal services actually rendered by the member do not
26        generate a significant amount of income.
27              (iv)    Director's fees attributable to board
28        membership of a corporate or nonprofit body or board or
29        reimbursement for expenses incurred in connection with
30        board membership.

20250HB1735PN2137                   - 27 -
 1        (6)   A member may not be paid or receive any fee or other
 2    compensation for any activity related to the duties or
 3    authority of the board other than the salary and expenses
 4    provided by law.
 5        (7)   A member, employee or independent contractor of the
 6    board may not participate in a hearing, proceeding or other
 7    matter in which the member, employee or independent
 8    contractor, or an immediate family member thereof, has a
 9    financial interest in the subject matter of the hearing or
10    proceeding or other interest that could be substantially
11    affected by the outcome of the hearing or proceeding without
12    first fully disclosing the nature of the interest to the
13    board and other persons participating in the hearing or
14    proceeding. The board shall determine if the interest is a
15    disqualifying interest that requires the disqualification or
16    nonparticipation of an employee or independent contractor.
17    For the purposes of this paragraph, the term "immediate
18    family" shall mean a spouse, parent, brother, sister or
19    child.
20        (8)   At the time of appointment and annually thereafter,
21    each member shall disclose the existence of any financial
22    interest in any applicant, permitted entity, intermediary,
23    subsidiary or holding company thereof held by the member or
24    known to be held by the member's immediate family. The
25    disclosure statement shall be filed with the executive
26    director of the board and with the appointing authority for
27    the member and shall be open to inspection by the public at
28    the office of the board during the normal business hours of
29    the board for the duration of the member's term and for two
30    years after the member leaves office. For the purposes of

20250HB1735PN2137                - 28 -
 1    this paragraph, the term "immediate family" shall mean a
 2    spouse, parent, brother, sister or child.
 3        (9)    Prior to being sworn as a member, an appointee and
 4    the appointee's immediate family shall divest any financial
 5    interest in any applicant, permitted entity, intermediary,
 6    subsidiary or holding company thereof owned or held by the
 7    appointee or known to be held by the appointee's immediate
 8    family. For the duration of the member's term and for one
 9    year thereafter, the member and the member's immediate family
10    may not acquire a financial interest in any applicant,
11    permitted entity, intermediary, subsidiary or holding company
12    thereof. For purposes of this paragraph, the term "immediate
13    family" shall mean a spouse and any minor or unemancipated
14    child.
15        (10)   Prior to entering into employment or a contract
16    with the board and annually thereafter, an employee or
17    independent contractor shall disclose the existence of any
18    financial interest in any applicant, permitted entity,
19    intermediary, subsidiary or holding company thereof owned or
20    held by the employee or independent contractor or known to be
21    held by the immediate family of the employee or independent
22    contractor. The disclosure statement shall be filed with the
23    board and shall be open to inspection by the public at the
24    office of the board during the normal business hours of the
25    board and for two years after termination of employment or a
26    contract with the board. For purposes of this paragraph, the
27    term "immediate family" shall mean a spouse, parent, brother,
28    sister or child.
29        (11)   Prior to entering into employment or contracting
30    with the board, an employee or independent contractor and the

20250HB1735PN2137                 - 29 -
 1    employee's or independent contractor's immediate family shall
 2    divest any financial interest in any applicant, permitted
 3    entity, intermediary, subsidiary or holding company thereof,
 4    owned or held by the employee or independent contractor or
 5    known to be held by the immediate family of the employee or
 6    independent contractor. For the duration of the employee's
 7    employment with the board or the independent contractor's
 8    contract with the board and for one year thereafter, the
 9    employee or independent contractor and the immediate family
10    thereof shall not acquire, by purchase, gift, exchange or
11    otherwise, any financial interest in any applicant, or
12    permitted entity, intermediary, subsidiary or holding company
13    thereof. For purposes of this paragraph, the term "immediate
14    family" shall mean a spouse and any minor or unemancipated
15    child.
16        (12)     A member, employee or independent contractor of the
17    board may not directly or indirectly solicit, request,
18    suggest or recommend to any applicant, permitted entity,
19    intermediary, subsidiary or holding company thereof or to any
20    principal, employee, independent contractor or agent thereof,
21    the appointment or employment of any person in any capacity
22    by the applicant, permitted entity, intermediary, subsidiary
23    or holding company thereof for a period of two years from the
24    termination of term of office, employment or contract with
25    the board.
26        (13)     A member may not accept employment with any
27    applicant, permitted entity or an affiliate, intermediary,
28    subsidiary or holding company thereof for a period of two
29    years from the termination of term of office.
30        (14)     A former member may not appear before the board in

20250HB1735PN2137                  - 30 -
 1    any hearing or proceeding or participate in any other
 2    activity on behalf of any applicant, permitted entity or an
 3    affiliate, intermediary, subsidiary or holding company of an
 4    applicant or permitted entity, or any other permittee, for a
 5    period of two years from the termination of term of office.
 6        (15)   A member who has been convicted during the member's
 7    term in any domestic or foreign jurisdiction of a felony
 8    criminal offense related to the manufacture, delivery or
 9    possession with intent to manufacture or deliver a controlled
10    substance in violation of the act of April 14, 1972 (P.L.233,
11    No.64), known as The Controlled Substance, Drug, Device and
12    Cosmetic Act, shall, upon conviction, be automatically
13    removed from the board and shall be ineligible to become a
14    member in the future. If an ex officio member is convicted
15    during the ex officio member's term in any domestic or
16    foreign jurisdiction of a felony criminal offense related to
17    the manufacture, delivery or possession with intent to
18    manufacture or deliver a controlled substance in violation of
19    the Controlled Substance, Drug, Device and Cosmetic Act, the
20    ex officio member shall, upon conviction, be automatically
21    removed from the board, and a designee shall be designated
22    under subsection (g) to serve the remainder of the ex officio
23    member's term.
24        (16)   The following shall apply to an employee of the
25    board whose duties substantially involve licensing,
26    enforcement, development of law, promulgation of regulations
27    or development of policy relating to cannabis or who has
28    other discretionary authority which may affect or influence
29    the outcome of an action, proceeding or decision, including
30    the executive director, bureau directors and attorneys:

20250HB1735PN2137                - 31 -
 1               (i)    The individual may not, for a period of two
 2        years following termination of employment, accept
 3        employment with or be retained by an applicant or
 4        permitted entity or by an affiliate, intermediary,
 5        subsidiary or holding company of an applicant or
 6        permitted entity.
 7               (ii)    The individual may not, for a period of two
 8        years following termination of employment, appear before
 9        the board in any hearing or proceeding or participate in
10        any activity on behalf of any applicant, permittee or
11        permitted entity or on behalf of an affiliate,
12        intermediary, subsidiary or holding company of any
13        applicant, permittee or permitted entity.
14               (iii)    An applicant or a permitted entity or an
15        affiliate, intermediary, subsidiary or holding company of
16        an applicant or a permitted entity may not, until the
17        expiration of two years following termination of
18        employment, employ or retain the individual. Violation of
19        this subparagraph shall result in termination of the
20        individual's employment and subject the violator to
21        penalties determined by the board.
22               (iv)    A prospective employee who, upon employment,
23        would be subject to this paragraph must, as a condition
24        of employment, sign an affidavit that the prospective
25        employee will not violate subparagraph (i) or (ii). If
26        the prospective employee fails to sign the affidavit, the
27        board shall rescind any offer of employment and may not
28        employ the individual.
29        (17)    The following shall apply to an independent
30    contractor and to an employee of an independent contractor

20250HB1735PN2137                    - 32 -
 1    whose duties substantially involve consultation relating to
 2    licensing, enforcement, development of law, promulgation of
 3    regulations or development of policy, relating to cannabis:
 4             (i)    The person may not, for a period of one year
 5        following termination of the contract with the board, be
 6        retained by an applicant or a permitted entity or by an
 7        affiliate, intermediary, subsidiary or holding company of
 8        an applicant or a permitted entity.
 9             (ii)    The person may not, for a period of two years
10        following termination of the contract with the board,
11        appear before the board in a hearing or proceeding or
12        participate in activity on behalf of any applicant,
13        permittee or permitted entity or on behalf of an
14        affiliate, intermediary, subsidiary or holding company of
15        any applicant, permittee or permitted entity.
16             (iii)    An applicant or a permitted entity or an
17        affiliate, intermediary, subsidiary or holding company of
18        an applicant or a permittee may not, until the expiration
19        of one year following termination of the contract with
20        the board, employ or retain the person. A knowing
21        violation of this subparagraph shall result in
22        termination of the person's employment and subject the
23        violator to penalties determined by the board.
24             (iv)    Each contract between the board and an
25        independent contractor which involves the duties provided
26        under this paragraph shall contain a provision requiring
27        the independent contractor to sign an affidavit that the
28        independent contractor will not violate subparagraph (i)
29        or (ii). If the independent contractor fails to sign the
30        affidavit, the board may not enter into the contract.

20250HB1735PN2137                  - 33 -
 1               (v)   An independent contractor shall require a
 2        prospective employee whose employment would involve the
 3        duties provided under this paragraph to sign an affidavit
 4        that the prospective employee will not violate
 5        subparagraph (i) or (ii). If the prospective employee
 6        fails to sign the affidavit, the independent contractor
 7        shall rescind any offer of employment and may not employ
 8        the individual.
 9        (18)    Nothing under paragraph (16) or (17) shall prevent
10    a current or former employee of the board, a current or
11    former independent contractor or a current or former employee
12    of an independent contractor from appearing before the board
13    in any hearing or proceeding as a witness or testifying as to
14    any fact or information.
15        (19)    The State Ethics Commission shall issue a written
16    determination of whether a person is subject to paragraph
17    (16) or (17) upon the written request of the person or the
18    person's employer or potential employer. A person that relies
19    in good faith on a determination issued under this paragraph
20    shall not be subject to any penalty for an action taken,
21    provided that all material facts provided in the request for
22    the determination are correct.
23        (20)    The State Ethics Commission shall publish a list of
24    all employment positions within the board and employment
25    positions within independent contractors whose duties would
26    subject the individuals in those positions to the provisions
27    of paragraphs (16) and (17). The board and each independent
28    contractor shall assist the State Ethics Commission in the
29    development of the list, which shall be transmitted by the
30    State Ethics Commission to the Legislative Reference Bureau

20250HB17

…  [truncated — open the source document for the complete text]