SB 120 — 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; establishing the Cannabis Regulation Fund; 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.   1044

                    THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 120
                                                 Session of
                                                   2025

     INTRODUCED BY LAUGHLIN, STREET, SAVAL, KANE, KEARNEY AND FLYNN,
        JULY 10, 2025

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

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

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 1   Section 258.13. Issuance of additional micro cultivation
 2              permits.
 3   Section 258.14. Micro cultivation center requirements and
 4              prohibitions.
 5   Section 258.15. Cannabis business establishment agent
 6              identification cards.
 7   Section 258.16. Background check for cannabis business
 8              establishment applicants.
 9   Section 258.17. Renewal of cannabis business establishment
10              permits and cannabis business establishment agent
11              identification cards.
12   Section 258.18. Warehousing and distribution permits.
13   Section 259.   Prices.
14      Subchapter G.   Enforcements and Immunities
15   Section 261.   Permit discipline.
16   Section 262.   Immunities and presumptions relating to handling
17              of cannabis by cannabis business establishments and
18              agents.
19   Section 263.   Commonwealth standards and requirements.
20   Section 264.   Violation of tax acts and refusal, revocation or
21              suspension of permit or agent identification card.
22      Subchapter H.   Laboratory Testing
23   Section 271.   Laboratory testing requirements and prohibitions.
24      Subchapter I.   Advertising, Marketing, Packaging and Labeling
25   Section 281.   Advertising and promotions.
26   Section 282.   Edible and non-edible infused product packaging
27              and labeling.
28      Subchapter J.   Preparation, Destruction and Regulation of
29          Cannabis, Edible and Non-edible Infused Products
30   Section 291.   Preparation of edible and non-edible infused

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

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 1   Section 322.   Practitioner restrictions.
 2   Section 323.   Issuance of certification.
 3   Section 324.   Certification form.
 4   Section 325.   Duration.
 5      Subchapter D.   Patients
 6   Section 331.   Identification cards.
 7   Section 332.   Caregivers.
 8   Section 333.   Notice.
 9   Section 334.   Verification.
10   Section 335.   Special conditions.
11   Section 336.   (Reserved).
12   Section 337.   Minors.
13   Section 338.   Caregiver authorization and limitations.
14   Section 339.   Contents of identification card.
15   Section 339.1. Suspension.
16   Section 339.2. Prohibitions.
17      Subchapter E.   (Reserved)
18      Subchapter F.   (Reserved)
19      Subchapter G.   Dispensaries
20   Section 361.   Dispensing to patients and caregivers.
21   Section 362.   Facility requirements.
22   Section 363.   Posting.
23      Subchapter H.   (Reserved)
24      Subchapter I.   (Reserved)
25      Subchapter J.   (Reserved)
26      Subchapter K.   Offenses Related to Patients, Caregivers and
27          Providers
28   Section 393.1. Criminal diversion of medical cannabis by
29              practitioners.
30   Section 393.2. (Reserved).

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 1   Section 393.3. (Reserved).
 2   Section 393.4. (Reserved).
 3   Section 393.5. Falsification of identification cards.
 4   Section 393.6. Adulteration of cannabis by patient, caregiver or
 5              practitioner.
 6   Section 393.7. Disclosure of information prohibited.
 7   Section 393.8. Additional penalties.
 8   Section 393.9. Other restrictions.
 9      Subchapter L.   (Reserved)
10      Subchapter M.   Academic Clinical Research Centers and
11          Clinical Registrants
12   Section 399.21. Legislative findings and declaration of policy.
13   Section 399.22. Definitions.
14   Section 399.23. Academic clinical research centers.
15   Section 399.24. Clinical registrants.
16   Section 399.25. Research study.
17      Subchapter N.   Miscellaneous Provisions
18   Section 399.31. Conflict.
19   Section 399.32. (Reserved).
20   Section 399.33. Insurers.
21   Section 399.34. Protections for patients and caregivers.
22   Section 399.35. (Reserved).
23   Section 399.36. (Reserved).
24   Section 399.37. (Reserved).
25   Section 399.38. Notice.
26   Section 399.39. (Reserved).
27   Section 399.40. (Reserved).
28   Section 399.41. Repeals.
29   Section 399.42. Continuation.
30   Section 399.43. Effective date.

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

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

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

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

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

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

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

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

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

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

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

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

20250SB0120PN1044                   - 19 -
 1      "Safety-sensitive position."    A position that requires any
 2   activity that an employer reasonably believes presents a
 3   potential risk of harm to the health or safety of an employee or
 4   others while under the influence of medical cannabis, including:
 5          (1)    Duties performed at heights or in confined spaces,
 6      including mining.
 7          (2)    The operation of a motor vehicle, other vehicle,
 8      equipment, machinery or a power tool.
 9          (3)    Repairing, maintaining or monitoring the performance
10      or operation of any equipment, machinery or manufacturing
11      process, the malfunction or disruption of which could result
12      in injury or property damage.
13          (4)    Performing firefighting duties as permitted under
14      Chapter 3.
15          (5)    The operation, maintenance or oversight of critical
16      services and infrastructure, including electric, gas and
17      water utilities, power generation or distribution.
18          (6)    The extraction, compression, processing,
19      manufacturing, handling, packaging, storage, disposal,
20      treatment or transport of potentially volatile, flammable or
21      combustible materials, elements, chemicals or other highly
22      regulated component.
23          (7)    Dispensing pharmaceuticals.
24          (8)    A position that requires the employee to carry a
25      firearm.
26          (9)    Direct patient care or direct child care.
27      "Secretary."    The Secretary of Health of the Commonwealth.
28      "Security."    As defined in section 102(t) of the act of
29   December 5, 1972 (P.L.1280, No.284), known as the Pennsylvania
30   Securities Act of 1972.

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

20250SB0120PN1044                      - 21 -
 1      "Smoking."         The inhalation of smoke caused by the combustion
 2   of cannabis.
 3      "Synchronous interaction."         A two-way or multiple-way
 4   exchange of information between a patient and a health care
 5   provider that occurs in real time via audio or video
 6   conferencing.
 7      "Terminally ill."        A medical prognosis of life expectancy of
 8   approximately one year or less if the illness runs its normal
 9   course.
10      "THC."       A delta-9 tetrahydrocannabinol and any structural,
11   optical or geometric isomers of tetrahydrocannabinol, including
12   delta-7, delta-8 and delta-10 tetrahydrocannabinol,
13   tetrahydrocannabinolic acid, tetrahydrocannabiphorol,
14   hexahydrocannabinol and any other substance, however derived,
15   that has similar effects on the mind or body as determined by
16   the board.
17      "Tincture."         A cannabis-infused solution, typically comprised
18   of alcohol, glycerin or vegetable oils derived either directly
19   from the cannabis plant or from a processed cannabis extract.
20   The term does not include an alcoholic liquor as used in the act
21   of April 12, 1951 (P.L.90, No.21), known as the Liquor Code. The
22   term shall include a calibrated dropper or other similar device
23   capable of accurately measuring servings.
24      "Under the influence."        One or more of the following:
25             (1)    A drug test resulting in:
26                   (i)    a level of tetrahydrocannabinolic acid in an
27             employee's urine that is equal to or greater than 15
28             nanograms per milliliter; or
29                   (ii)    an adulterated or substituted testing sample
30             provided by an employee.

20250SB0120PN1044                        - 22 -
 1            (2)   An employer's good faith determination that an
 2      employee is under the influence of cannabis based on
 3      observable physical behavior or characteristics, provided
 4      that the employee may rebut the determination by immediately
 5      submitting to a drug test, the results of which demonstrate
 6      that the level of tetrahydrocannabinolic acid in the
 7      employee's urine is less than 15 nanograms per milliliter.
 8      "Veteran-owned small business."          As defined in 51 Pa.C.S. §
 9   9601 (relating to definitions).
10      "Women-owned business."       As defined in 74 Pa.C.S. § 303(b).
11                                    CHAPTER 2
12                                     CANNABIS
13                                   SUBCHAPTER A
14                              CANNABIS CONTROL BOARD
15   Section 201.     Establishment of board.
16      (a)     Board established.--The Cannabis Control Board is
17   established as an independent board which shall be a body
18   corporate and politic.
19      (b)     Membership.--The board shall consist of the following
20   members:
21            (1)   Three members appointed by the Governor.
22            (2)   One member appointed by each of the following:
23                  (i)    The President pro tempore of the Senate.
24                  (ii)    The Speaker of the House of Representatives.
25                  (iii)    The Minority Leader of the Senate.
26                  (iv)    The Minority Leader of the House of
27            Representatives.
28      (c)     Removal.--A member of the board shall be removed from
29   office by the appointing authority:
30            (1)   for misconduct in office, willful neglect of duty or

20250SB0120PN1044                       - 23 -
 1      conduct evidencing unfitness for office or incompetence; or
 2            (2)   upon conviction of an offense graded as a felony, an
 3      infamous crime, an offense under Chapter 3 or an equivalent
 4      offense under Federal law or the law of another jurisdiction.
 5      (d)   Initial appointments to board.--
 6            (1)   Gubernatorial appointees initially appointed under
 7      subsection (b)(1) shall serve an initial term of one, two and
 8      three years respectively as designated by the Governor at the
 9      time of appointment and until their successors are appointed
10      and qualified.
11            (2)   Legislative appointees initially appointed under
12      subsection (b)(2) shall serve until the third Tuesday in
13      January 2027 and until their successors are appointed and
14      qualified.
15            (3)   An appointment to fill a vacancy created by a member
16      appointed in accordance with paragraph (1) or (2) shall be
17      for the remainder of the unexpired term.
18      (e)   Terms of office.--Upon the expiration of a term of a
19   member appointed under subsection (d), the following shall
20   apply:
21            (1)   The term of office of a gubernatorial appointee
22      shall be three years and until a successor is appointed and
23      qualified.
24            (2)   The term of office of a legislative appointee shall
25      be two years and until a successor is appointed and
26      qualified.
27            (3)   A gubernatorial appointee shall serve no more than
28      two full consecutive terms.
29            (4)   A legislative appointee shall serve no more than
30      three full consecutive terms.

20250SB0120PN1044                    - 24 -
 1             (5)   An appointment to fill a vacancy shall be for the
 2      remainder of the unexpired term.
 3             (6)   A member appointed to fill a vacancy under paragraph
 4      (3) may serve two full terms following the expiration of the
 5      term related to the vacancy.
 6             (7)   A member appointed to fill a vacancy under paragraph
 7      (4) may serve three full terms following the expiration of
 8      the term related to the vacancy.
 9      (f)    Ex officio members.--The Secretary of Agriculture, the
10   Secretary of Health, the Secretary of Community and Economic
11   Development, the Attorney General and the Pennsylvania State
12   Police Commissioner, or their designees, shall serve on the
13   board as nonvoting ex officio members of the board. The designee
14   shall be a deputy secretary or an equivalent position within the
15   agency.
16      (g)    Executive director of the board.--Within seven days of
17   the effective date of this subchapter, the Governor shall
18   nominate an interim executive director. The Governor's nominee
19   shall be subject to Senate confirmation and the Senate shall
20   hold the confirmation vote within seven days of the nomination.
21   If the Senate fails to hold the confirmation vote within seven
22   days of nomination, the Senate shall be deemed to have confirmed
23   the nominee. If the Senate rejects the nominee, the Governor
24   shall have five days to nominate a second proposed interim
25   executive director and the Senate shall have five days after the
26   nomination to hold a confirmation vote. If the Senate fails to
27   hold a confirmation vote within five days of the nomination, the
28   Senate shall be deemed to have confirmed the nominee. If the
29   Senate rejects the nominee, the Governor shall have three days
30   to nominate a third proposed interim executive director and the

20250SB0120PN1044                     - 25 -
 1   Senate shall have three days after the nomination to hold a
 2   confirmation vote. The process for the third proposed interim
 3   director shall continue until an interim executive director is
 4   confirmed by the Senate. The following shall apply:
 5            (1)   The interim executive director may be the permanent
 6      executive director and shall not be prohibited from
 7      employment with the board in any other position.
 8            (2)   Between the effective date of this subchapter and
 9      when the board is fully constituted, staffed and operational,
10      it is the intent of the General Assembly for regulated
11      materials and regulated activities to be administered by the
12      interim executive director on a temporary basis.
13            (3)   The interim executive director and executive
14      director shall be considered employees of the board for
15      compensation purposes.
16      (h)   Background investigation.--Appointees shall be subject
17   to a background investigation conducted by the Pennsylvania
18   State Police in accordance with this subchapter.
19      (i)   Qualifications and restrictions.--
20            (1)   Each member at the time of appointment shall be at
21      least 25 years of age and shall have been a resident of this
22      Commonwealth for a period of at least one year immediately
23      preceding appointment. Each member shall continue to remain a
24      resident of this Commonwealth during the term of membership
25      on the board.
26            (2)   Except for ex officio members, a person may not be
27      appointed a member of the board or be employed by or be an
28      independent contractor of the board if that individual is a
29      public official or party officer, as those terms are defined
30      in 4 Pa.C.S. § 1512 (relating to financial and employment

20250SB0120PN1044                    - 26 -
 1    interests), in this Commonwealth or any of its political
 2    subdivisions.
 3        (3)   Each member, employee and independent contractor of
 4    the board shall sign an agreement to not disclose
 5    confidential information.
 6        (4)   A member, employee or independent contractor of the
 7    board or another agency having regulatory authority over the
 8    board or cannabis business establishments may not be
 9    employed, hold any office or position or be engaged in any
10    activity which is incompatible with the position, employment
11    or contract.
12        (5)   A member may not engage in any business, employment
13    or vocation for which the member receives a salary,
14    compensation or fee for services rendered which is in excess
15    of 15% of the member's gross annual salary as a member of the
16    board. For purposes of this paragraph, the terms "salary,"
17    "compensation" and "fee" do not include any of the following:
18              (i)    Passive or unearned income, including interest,
19        dividends or capital gains from the sale of assets or
20        securities held for investment purposes.
21              (ii)    Health care benefits or retirement, pension or
22        annuity payments.
23              (iii)    Amounts received from a family-controlled
24        trade or business in which both personal services and
25        capital are income-producing factors, provided that the
26        personal services actually rendered by the member do not
27        generate a significant amount of income.
28              (iv)    Director's fees attributable to board
29        membership of a corporate or nonprofit body or board or
30        reimbursement for expenses incurred in connection with

20250SB0120PN1044                   - 27 -
 1        board membership.
 2        (6)   A member may not be paid or receive any fee or other
 3    compensation for any activity related to the duties or
 4    authority of the board other than the salary and expenses
 5    provided by law.
 6        (7)   A member, employee or independent contractor of the
 7    board may not participate in a hearing, proceeding or other
 8    matter in which the member, employee or independent
 9    contractor, or an immediate family member thereof, has a
10    financial interest in the subject matter of the hearing or
11    proceeding or other interest that could be substantially
12    affected by the outcome of the hearing or proceeding without
13    first fully disclosing the nature of the interest to the
14    board and other persons participating in the hearing or
15    proceeding. The board shall determine if the interest is a
16    disqualifying interest that requires the disqualification or
17    nonparticipation of an employee or independent contractor.
18    For the purposes of this paragraph, the term "immediate
19    family" shall mean a spouse, parent, brother, sister or
20    child.
21        (8)   At the time of appointment and annually thereafter,
22    each member shall disclose the existence of any financial
23    interest in any applicant, permitted entity, intermediary,
24    subsidiary or holding company thereof held by the member or
25    known to be held by the member's immediate family. The
26    disclosure statement shall be filed with the executive
27    director of the board and with the appointing authority for
28    the member and shall be open to inspection by the public at
29    the office of the board during the normal business hours of
30    the board for the duration of the member's term and for two

20250SB0120PN1044                - 28 -
 1    years after the member leaves office. For the purposes of
 2    this paragraph, the term "immediate family" shall mean a
 3    spouse, parent, brother, sister or child.
 4        (9)    Prior to being sworn as a member, an appointee and
 5    the appointee's immediate family shall divest any financial
 6    interest in any applicant, permitted entity, intermediary,
 7    subsidiary or holding company thereof owned or held by the
 8    appointee or known to be held by the appointee's immediate
 9    family. For the duration of the member's term and for one
10    year thereafter, the member and the member's immediate family
11    may not acquire a financial interest in any applicant,
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        (10)   Prior to entering into employment or a contract
17    with the board and annually thereafter, an employee or
18    independent contractor shall disclose the existence of any
19    financial interest in any applicant, permitted entity,
20    intermediary, subsidiary or holding company thereof owned or
21    held by the employee or independent contractor or known to be
22    held by the immediate family of the employee or independent
23    contractor. The disclosure statement shall be filed with the
24    board and shall be open to inspection by the public at the
25    office of the board during the normal business hours of the
26    board and for two years after termination of employment or a
27    contract with the board. For purposes of this paragraph, the
28    term "immediate family" shall mean a spouse, parent, brother,
29    sister or child.
30        (11)   Prior to entering into employment or contracting

20250SB0120PN1044                 - 29 -
 1    with the board, an employee or independent contractor and the
 2    employee's or independent contractor's immediate family shall
 3    divest any financial interest in any applicant, permitted
 4    entity, intermediary, subsidiary or holding company thereof,
 5    owned or held by the employee or independent contractor or
 6    known to be held by the immediate family of the employee or
 7    independent contractor. For the duration of the employee's
 8    employment with the board or the independent contractor's
 9    contract with the board and for one year thereafter, the
10    employee or independent contractor and the immediate family
11    thereof shall not acquire, by purchase, gift, exchange or
12    otherwise, any financial interest in any applicant, or
13    permitted entity, intermediary, subsidiary or holding company
14    thereof. For purposes of this paragraph, the term "immediate
15    family" shall mean a spouse and any minor or unemancipated
16    child.
17        (12)     A member, employee or independent contractor of the
18    board may not directly or indirectly solicit, request,
19    suggest or recommend to any applicant, permitted entity,
20    intermediary, subsidiary or holding company thereof or to any
21    principal, employee, independent contractor or agent thereof,
22    the appointment or employment of any person in any capacity
23    by the applicant, permitted entity, intermediary, subsidiary
24    or holding company thereof for a period of two years from the
25    termination of term of office, employment or contract with
26    the board.
27        (13)     A member may not accept employment with any
28    applicant, permitted entity or an affiliate, intermediary,
29    subsidiary or holding company thereof for a period of two
30    years from the termination of term of office.

20250SB0120PN1044                  - 30 -
 1        (14)   A former member may not appear before the board in
 2    any hearing or proceeding or participate in any other
 3    activity on behalf of any applicant, permitted entity or an
 4    affiliate, intermediary, subsidiary or holding company of an
 5    applicant or permitted entity, or any other permittee, for a
 6    period of two years from the termination of term of office.
 7        (15)   A member who has been convicted during the member's
 8    term in any domestic or foreign jurisdiction of a felony
 9    criminal offense related to the manufacture, delivery or
10    possession with intent to manufacture or deliver a controlled
11    substance in violation of the act of April 14, 1972 (P.L.233,
12    No.64), known as The Controlled Substance, Drug, Device and
13    Cosmetic Act, shall, upon conviction, be automatically
14    removed from the board and shall be ineligible to become a
15    member in the future. If an ex officio member is convicted
16    during the ex officio member's term in any domestic or
17    foreign jurisdiction of a felony criminal offense related to
18    the manufacture, delivery or possession with intent to
19    manufacture or deliver a controlled substance in violation of
20    the Controlled Substance, Drug, Device and Cosmetic Act, the
21    ex officio member shall, upon conviction, be automatically
22    removed from the board, and a designee shall be designated
23    under subsection (g) to serve the remainder of the ex officio
24    member's term.
25        (16)   The following shall apply to an employee of the
26    board whose duties substantially involve licensing,
27    enforcement, development of law, promulgation of regulations
28    or development of policy relating to cannabis or who has
29    other discretionary authority which may affect or influence
30    the outcome of an action, proceeding or decision, including

20250SB0120PN1044                - 31 -
 1    the executive director, bureau directors and attorneys:
 2               (i)    The individual may not, for a period of two
 3        years following termination of employment, accept
 4        employment with or be retained by an applicant or
 5        permitted entity or by an affiliate, intermediary,
 6        subsidiary or holding company of an applicant or
 7        permitted entity.
 8               (ii)    The individual may not, for a period of two
 9        years following termination of employment, appear before
10        the board in any hearing or proceeding or participate in
11        any activity on behalf of any applicant, permittee or
12        permitted entity or on behalf of an affiliate,
13        intermediary, subsidiary or holding company of any
14        applicant, permittee or permitted entity.
15               (iii)    An applicant or a permitted entity or an
16        affiliate, intermediary, subsidiary or holding company of
17        an applicant or a permitted entity may not, until the
18        expiration of two years following termination of
19        employment, employ or retain the individual. Violation of
20        this subparagraph shall result in termination of the
21        individual's employment and subject the violator to
22        penalties determined by the board.
23               (iv)    A prospective employee who, upon employment,
24        would be subject to this paragraph must, as a condition
25        of employment, sign an affidavit that the prospective
26        employee will not violate subparagraph (i) or (ii). If
27        the prospective employee fails to sign the affidavit, the
28        board shall rescind any offer of employment and may not
29        employ the individual.
30        (17)    The following shall apply to an independent

20250SB0120PN1044                    - 32 -
 1    contractor and to an employee of an independent contractor
 2    whose duties substantially involve consultation relating to
 3    licensing, enforcement, development of law, promulgation of
 4    regulations or development of policy, relating to cannabis:
 5             (i)    The person may not, for a period of one year
 6        following termination of the contract with the board, be
 7        retained by an applicant or a permitted entity or by an
 8        affiliate, intermediary, subsidiary or holding company of
 9        an applicant or a permitted entity.
10             (ii)    The person may not, for a period of two years
11        following termination of the contract with the board,
12        appear before the board in a hearing or proceeding or
13        participate in activity on behalf of any applicant,
14        permittee or permitted entity or on behalf of an
15        affiliate, intermediary, subsidiary or holding company of
16        any applicant, permittee or permitted entity.
17             (iii)    An applicant or a permitted entity or an
18        affiliate, intermediary, subsidiary or holding company of
19        an applicant or a permittee may not, until the expiration
20        of one year following termination of the contract with
21        the board, employ or retain the person. A knowing
22        violation of this subparagraph shall result in
23        termination of the person's employment and subject the
24        violator to penalties determined by the board.
25             (iv)    Each contract between the board and an
26        independent contractor which involves the duties provided
27        under this paragraph shall contain a provision requiring
28        the independent contractor to sign an affidavit that the
29        independent contractor will not violate subparagraph (i)
30        or (ii). If the independent contractor fails to sign the

20250SB0120PN1044                  - 33 -
 1        affidavit, the board may not enter into the contract.
 2               (v)   An independent contractor shall require a
 3        prospective employee whose employment would involve the
 4        duties provided under this paragraph to sign an affidavit
 5        that the prospective employee will not violate
 6        subparagraph (i) or (ii). If the prospective employee
 7        fails to sign the affidavit, the independent contractor
 8        shall rescind any offer of employment and may not employ
 9        the individual.
10        (18)    Nothing under paragraph (16) or (17) shall prevent
11    a current or former employee of the board, a current or
12    former independent contractor or a current or former employee
13    of an independent contractor from appearing before the board
14    in any hearing or proceeding as a witness or testifying as to
15    any fact or information.
16        (19)    The State Ethics Commission shall issue a written
17    determination of whether a person is subject to paragraph
18    (16) or (17) upon the written request of the person or the
19    person's employer or potential employer. A person that relies
20    in good faith on a determination issued under this paragraph
21    shall not be subject to any penalty for an action taken,
22    provided that all material facts provided in the request for
23    the determination are correct.
24        (20)    The State Ethics Commission shall publish a list of
25    all employment positions within the board and employment
26    positions within independent contractors whose duties would
27    subject the individuals in those positions to the provisions
28    of paragraphs (16) and (17). The board and each independent
29    contractor shall assist the State Ethics Commission in the
30    development of the list, which shall be transmitted by the

20250SB0120PN1044

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