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

PRINTER'S NO.   1020

                    THE GENERAL ASSEMBLY OF PENNSYLVANIA



                       SENATE BILL
                       No. 49
                                               Session of
                                                 2025

     INTRODUCED BY LAUGHLIN, K. WARD, STREET, ARGALL, TARTAGLIONE,
        ROBINSON, SCHWANK, MALONE, VOGEL, BARTOLOTTA, KANE, BOSCOLA,
        A. WILLIAMS, FONTANA, SAVAL, STEFANO AND FLYNN, JUNE 30, 2025

     REFERRED TO LAW AND JUSTICE, JUNE 30, 2025


                                      AN ACT
 1   Establishing the Cannabis Control Board; providing for powers
 2      and duties of the Cannabis Control Board; establishing the
 3      Cannabis Regulation Fund; providing for permits and for
 4      dispensing cannabis to patients and caregivers; and making
 5      repeals.
 6                            TABLE OF CONTENTS
 7   Chapter 1.   Preliminary Provisions
 8   Section 101.   Short title.
 9   Section 102.   Definitions.
10   Chapter 3.   Cannabis Control Board
11   Section 301.   Scope of chapter.
12   Section 302.   Definitions.
13   Section 303.   Establishment of board.
14   Section 304.   Code of conduct.
15   Section 305.   Applicability of other statutes.
16   Section 306.   Board meetings.
17   Section 307.   Board records.
18   Section 308.   Regulations.
19   Section 309.   Powers and duties of board.
 1   Section 310.   Confidentiality and public disclosure.
 2   Section 311.   Unauthorized activities and civil penalties.
 3   Section 312.   Cannabis Regulation Fund.
 4   Section 313.   Report of board.
 5   Section 314.   Authority.
 6   Section 315.   Transfer of authority.
 7   Chapter 5.   Permits
 8   Section 501.   (Reserved).
 9   Section 502.   (Reserved).
10   Section 503.   Warehousing and distribution permit.
11   Section 504.   Third-party transporter permit.
12   Chapter 7.   Miscellaneous Provisions
13   Section 701.   Dispensing to patients and caregivers.
14   Section 702.   Repeals.
15   Section 703.   Effective date.
16      The General Assembly of the Commonwealth of Pennsylvania
17   hereby enacts as follows:
18                                 CHAPTER 1
19                          PRELIMINARY PROVISIONS
20   Section 101.   Short title.
21      This act shall be known and may be cited as the Cannabis
22   Control Board Act.
23   Section 102.   Definitions.
24      The words and phrases used in this act shall have the
25   meanings given to them in the act of April 17, 2016 (P.L.84,
26   No.16), known as the Medical Marijuana Act, unless the context
27   clearly indicates otherwise.
28                                 CHAPTER 3
29                          CANNABIS CONTROL BOARD
30   Section 301.   Scope of chapter.

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 1      This chapter relates to the Cannabis Control Board.
 2   Section 302.    Definitions.
 3      The following words and phrases when used in this chapter
 4   shall have the meanings given to them in this section unless the
 5   context clearly indicates otherwise:
 6      "Board."    The Cannabis Control Board established under
 7   section 303(a).
 8      "Cannabis."       As follows:
 9          (1)     Any of the following:
10                 (i)    Marijuana, hashish or other substances that are
11          identified as including any parts of the plant cannabis
12          sativa and including derivatives or subspecies, such as
13          indica, of all strains of cannabis, whether growing or
14          not, including the seeds, resin extracted from any part
15          of the plant and any compound, manufacture, salt,
16          derivative, mixture or preparation of the plant. The term
17          includes THC and all other naturally produced cannabinol
18          derivatives, whether produced directly or indirectly by
19          extraction, including delta-7 THC, delta-8 THC, delta-9
20          THC or any structural, optical or geometric isomers of
21          tetrahydrocannabinol, cannabis flower, concentrate,
22          edible and infused products.
23                 (ii)    A product intended for human consumption with a
24          THC concentration, however derived, greater than the
25          allowable THC limit specified in the Medical Marijuana
26          Act.
27          (2)     The term does not include the mature stalks of the
28      plant, fiber produced from the stalks, oil or cake made from
29      the seeds of the plant or any other compound, manufacture,
30      salt, derivative, mixture or preparation of the mature

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 1      stalks, the sterilized seed of the plant that is incapable of
 2      germination or industrial hemp as defined in 3 Pa.C.S. § 702
 3      (relating to definitions).
 4      "Cannabis organization."       A medical marijuana organization as
 5   defined in the Medical Marijuana Act.
 6      "Medical Marijuana Act."       The act of April 17, 2016 (P.L.84,
 7   No.16), known as the Medical Marijuana Act.
 8      "Ownership interest."       Owning or holding, or being deemed to
 9   hold, debt or equity securities or other ownership interest or
10   profit interest.
11      "THC."      A delta-9 tetrahydrocannabinol and any structural,
12   optical or geometric isomers of tetrahydrocannabinol, including
13   delta-7, delta-8 and delta-10 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   Section 303.     Establishment of board.
18      (a)     Board established.--The Cannabis Control Board is
19   established as an independent board which shall be a body
20   corporate and politic.
21      (b)     Membership.--The board shall consist of the following
22   members:
23            (1)    Three members appointed by the Governor.
24            (2)    One member appointed by each of the following:
25                  (i)    The President pro tempore of the Senate.
26                  (ii)    The Speaker of the House of Representatives.
27                  (iii)    The Minority Leader of the Senate.
28                  (iv)    The Minority Leader of the House of
29            Representatives.
30      (c)     Removal.--A member of the board shall be removed from

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

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 1      two full consecutive terms.
 2            (4)   A legislative appointee shall serve no more than
 3      three full consecutive terms.
 4            (5)   An appointment to fill a vacancy shall be for the
 5      remainder of the unexpired term.
 6            (6)   A member appointed to fill a vacancy under paragraph
 7      (3) may serve two full terms following the expiration of the
 8      term related to the vacancy.
 9            (7)   A member appointed to fill a vacancy under paragraph
10      (4) may serve three full terms following the expiration of
11      the term related to the vacancy.
12      (f)   Ex officio members.--The Secretary of Agriculture, the
13   Secretary of Health, the Attorney General and the Pennsylvania
14   State Police Commissioner, or their designees, shall serve on
15   the board as nonvoting ex officio members of the board. The
16   designee shall be a deputy secretary or an equivalent position
17   within the agency.
18      (g)   Executive director of the board.--Within seven days of
19   the effective date of this subsection, the Governor shall
20   nominate an interim executive director. The Governor's nominee
21   shall be subject to Senate confirmation and the Senate shall
22   hold the confirmation vote within seven days of the nomination.
23   If the Senate fails to hold the confirmation vote within seven
24   days of nomination, the Senate shall be deemed to have confirmed
25   the nominee. If the Senate rejects the nominee, the Governor
26   shall have five days to nominate a second proposed interim
27   executive director and the Senate shall have five days after the
28   nomination to hold a confirmation vote. If the Senate fails to
29   hold a confirmation vote within five days of the nomination, the
30   Senate shall be deemed to have confirmed the nominee. If the

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

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 1    public official or party officer, as those terms are defined
 2    in 4 Pa.C.S. § 1512 (relating to financial and employment
 3    interests), in this Commonwealth or any of its political
 4    subdivisions.
 5        (3)   Each member, employee and independent contractor of
 6    the board shall sign an agreement to not disclose
 7    confidential information.
 8        (4)   A member, employee or independent contractor of the
 9    board or another agency having regulatory authority over the
10    board or cannabis organizations may not be employed, hold any
11    office or position or be engaged in any activity which is
12    incompatible with the position, employment or contract.
13        (5)   A member may not engage in any business, employment
14    or vocation for which the member receives a salary,
15    compensation or fee for services rendered which is in excess
16    of 15% of the member's gross annual salary as a member of the
17    board. For purposes of this paragraph, the terms "salary,"
18    "compensation" and "fee" do not include any of the following:
19              (i)    Passive or unearned income, including interest,
20        dividends or capital gains from the sale of assets or
21        securities held for investment purposes.
22              (ii)    Health care benefits or retirement, pension or
23        annuity payments.
24              (iii)    Amounts received from a family-controlled
25        trade or business in which both personal services and
26        capital are income-producing factors, provided that the
27        personal services actually rendered by the member do not
28        generate a significant amount of income.
29              (iv)    Director's fees attributable to board
30        membership of a corporate or nonprofit body or board or

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

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

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

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

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

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

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

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 1      development of the list, which shall be transmitted by the
 2      State Ethics Commission to the Legislative Reference Bureau
 3      for publication in the Pennsylvania Bulletin biennially and
 4      posted by the board on the board's publicly accessible
 5      Internet website. Upon request, employees of the board and
 6      each independent contractor shall have a duty to provide the
 7      State Ethics Commission with adequate information to
 8      accurately develop and maintain the list. The State Ethics
 9      Commission may impose a civil penalty under 65 Pa.C.S. §
10      1109(f) (relating to penalties) upon an individual who fails
11      to cooperate with the State Ethics Commission under this
12      paragraph. An individual who relies in good faith on the list
13      published by the State Ethics Commission shall not be subject
14      to any penalty for a violation of paragraph (16) or (17).
15            (21)   If a member of the board violates any provision of
16      this section, the appointing authority may remove the
17      individual from the board. A member removed under this
18      paragraph shall, for a period of five years following
19      removal, be prohibited from future appointment to the board
20      and shall be prohibited from applying for a permit or other
21      authorization under the Medical Marijuana Act and from
22      becoming an independent contractor or registering as a
23      permitted entity representative.
24      (j)   Fiduciary relationship.--A member or employee of the
25   board shall serve as a fiduciary of the Commonwealth.
26      (k)   Standard of care.--Members shall exercise the standard
27   of care required by 20 Pa.C.S. Ch. 73 (relating to
28   municipalities investments) in the performance of their duties
29   under this chapter.
30      (l)   Liability.--Members shall not be personally liable for

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 1   any of the following:
 2            (1)   Obligations of the board.
 3            (2)   Actions which were within the scope of their office
 4      and made in good faith.
 5      (m)   Compensation.--
 6            (1)   The Executive Board as established in the act of
 7      April 9, 1929 (P.L.177, No.175), known as The Administrative
 8      Code of 1929, shall establish the compensation of the
 9      members.
10            (2)   Members shall be reimbursed for all necessary and
11      actual expenses.
12            (3)   Members shall be eligible for retirement under the
13      State Employees' Retirement Code and shall, if the member
14      elects to participate, be considered a State employee for the
15      purposes of 71 Pa.C.S. Pt. XXV (relating to retirement for
16      State employees and officers).
17      (n)   Chairperson.--The chairperson of the board shall be
18   selected by a majority vote of appointed and qualified members.
19      (o)   Appointments.--The appointing authorities shall make
20   their initial appointments within 30 days of the effective date
21   of this subsection. Appointments to fill a vacancy shall be made
22   within 30 days of the creation of the vacancy. No appointment
23   shall be final until receipt by the appointing authority of the
24   required background investigation of the appointee by the
25   Pennsylvania State Police which shall be completed within 15
26   days. A person who has been convicted in any domestic or foreign
27   jurisdiction of a felony, infamous crime or gaming offense may
28   not be appointed to the board.
29      (p)   Prohibition against nepotism.--A member may not solicit,
30   request, suggest or recommend the employment by the board of any

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 1   individual related within the second degree of consanguinity to
 2   the member as provided in 23 Pa.C.S. § 1304(e) (relating to
 3   restrictions on issuance of license) or the spouse of the
 4   individual.
 5      (q)   Employment requirements.--
 6            (1)   Prospective employees shall submit an application
 7      and a personal disclosure form to the board which shall
 8      include a complete criminal history, including convictions
 9      and current charges for all felonies and misdemeanors.
10            (2)   Prospective employees shall be required to undergo
11      testing which detects the presence of illegal substances in
12      the body.
13            (3)   The board shall obtain fingerprints and photographs
14      for each prospective employee consistent with the standards
15      adopted by the Pennsylvania State Police.
16            (4)   The board shall verify the identification,
17      employment and education of each prospective employee,
18      including:
19                  (i)    Legal name, including any alias.
20                  (ii)    All educational institutions attended
21            regardless of graduation status.
22                  (iii)    Places of residence for the past 10 years.
23                  (iv)    Employment history for the past 15 years.
24            (5)   The board may not hire a prospective employee if the
25      prospective employee:
26                  (i)    has been convicted of a crime that bears a close
27            relationship to the duties and responsibilities of the
28            position for which employment is sought;
29                  (ii)    has been dismissed from other employment for
30            gross misconduct; or

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 1                  (iii)    has intentionally made a false statement
 2            concerning a material fact in connection with the
 3            application to the board.
 4            (6)   The board may not employ a person unless the
 5      requirements of paragraphs (1), (2), (3) and (4) have been
 6      met. This paragraph shall apply only to persons employed
 7      after the effective date of this paragraph.
 8            (7)   The board shall:
 9                  (i)    Immediately refer any criminal matter involving
10            an employee to law enforcement.
11                  (ii)    Develop a disciplinary process for an employee
12            charged with a crime or with gross misconduct.
13                  (iii)    Immediately suspend from employment any
14            employee charged with a felony.
15                  (iv)    Develop a process to discipline all other
16            instances of misconduct.
17            (8)   Disciplinary action shall be instituted promptly
18      against an employee who, while on or off duty, engages in
19      serious misconduct which may bring the board into disrepute.
20      (r)   Budgetary impasse.--If, in the event of a budgetary or
21   other fiscal crisis, the Governor orders the furlough of
22   Commonwealth employees, the board and its employees whose duties
23   involve the regulation and oversight of cannabis shall not be
24   subject to furlough and shall continue to perform their duties
25   of employment.
26      (s)   Definitions.--As used in this section, the following
27   words and phrases shall have the meanings given to them in this
28   subsection unless the context clearly indicates otherwise:
29      "Financial interest."       An ownership, property, leasehold or
30   other beneficial interest in a cannabis organization. The term

20250SB0049PN1020                       - 19 -
 1   does not include an interest which is held or deemed to be held
 2   in any of the following:
 3            (1)   Securities that are held in a pension plan, profit-
 4      sharing individual retirement account, tax-sheltered annuity,
 5      a plan established under 26 U.S.C. § 457 (relating to
 6      deferred compensation plans of State and local governments
 7      and tax-exempt organizations), deferred compensation plan
 8      whether qualified or not qualified under 26 U.S.C. (relating
 9      to Internal Revenue Code) or other retirement plan that:
10                  (i)    is not self-directed by the individual; and
11                  (ii)    is advised by an independent investment adviser
12            who has sole authority to make investment decisions with
13            respect to contributions made by the individual to these
14            plans.
15            (2)   A tuition account plan organized and operated under
16      26 U.S.C. § 529 (relating to qualified tuition programs) that
17      is not self-directed by the individual.
18            (3)   A mutual fund where the interest owned by the mutual
19      fund in a cannabis organization does not constitute a
20      controlling interest.
21   Section 304.      Code of conduct.
22      (a)   Scope.--The board shall adopt a comprehensive code of
23   conduct prior to the consideration of any permit or registration
24   application. The code of conduct shall supplement all other
25   requirements under the Medical Marijuana Act and 65 Pa.C.S. Pt.
26   II (relating to accountability) and shall provide guidelines
27   applicable to members, employees, independent contractors of the
28   board and the immediate families of the members, employees and
29   independent contractors to enable them to avoid any perceived or
30   actual conflict of interest and to promote public confidence in

20250SB0049PN1020                       - 20 -
 1   the integrity and impartiality of the board. At a minimum, the
 2   code of conduct adopted under this section shall include
 3   restrictions under subsection (b).
 4      (b)   Restrictions.--A member of the board shall:
 5            (1)   Not accept any discount, gift, gratuity,
 6      compensation, travel, lodging or other thing of value,
 7      directly or indirectly, from any applicant, permittee or any
 8      representative thereof.
 9            (2)   Disclose and disqualify the member from any
10      proceeding in which the member's objectivity, impartiality,
11      integrity or independence of judgment may be reasonably
12      questioned due to the member's relationship or association
13      with a party connected to any proceeding or a person
14      appearing before the board.
15            (3)   Refrain from any financial or business dealing which
16      would tend to reflect adversely on the member's objectivity,
17      impartiality or independence of judgment.
18            (4)   Not hold or campaign for public office, hold an
19      office in any political party or political committee,
20      contribute to or solicit contributions to a political
21      campaign, party, committee or candidate, publicly endorse a
22      candidate or actively participate in a political campaign.
23            (5)   Not solicit funds for any charitable, educational,
24      religious, health, fraternal, civic or other nonprofit entity
25      from an applicant, cannabis organization, subsidiary,
26      intermediary or holding company of a cannabis organization,
27      interested party or cannabis organization representative.
28            (6)   Not meet or engage in discussions with any
29      applicant, permitted entity or a cannabis organization
30      representative unless the meeting or discussion occurs on the

20250SB0049PN1020                    - 21 -
 1      business premises of the board and is recorded in a log
 2      maintained for this purpose. The log shall be available for
 3      public inspection during the regular business hours of the
 4      board. This paragraph shall not apply to meetings of the
 5      board to consider matters requiring the physical inspection
 6      of the equipment or premises of an applicant or a cannabis
 7      organization at their location.
 8            (7)   Avoid impropriety and the appearance of impropriety
 9      at all times and observe standards and conduct that promote
10      public confidence in the oversight of cannabis.
11            (8)   Comply with any other laws, rules or regulations
12      relating to the conduct of a member.
13      (c)   Ex officio members.--The restrictions under subsection
14   (b)(5) shall not apply to ex officio members.
15   Section 305.     Applicability of other statutes.
16      (a)   Applicability to board.--The board shall be subject to
17   the following acts:
18            (1)   The act of July 19, 1957 (P.L.1017, No.451), known
19      as the State Adverse Interest Act.
20            (2)   The act of February 14, 2008 (P.L.6, No.3), known as
21      the Right-to-Know Law.
22            (3)   The provisions of 65 Pa.C.S. Chs. 7 (relating to
23      open meetings) and 11 (relating to ethics standards and
24      financial disclosure).
25      (b)   Status of board.--
26            (1)   The board shall be considered an independent agency
27      for the purposes of the following:
28                  (i)    The act of October 15, 1980 (P.L.950, No.164),
29            known as the Commonwealth Attorneys Act.
30                  (ii)   62 Pa.C.S. Pt. I (relating to Commonwealth

20250SB0049PN1020                       - 22 -
 1            Procurement Code). The expediting of the payment of
 2            revenue to the Commonwealth shall not be grounds for an
 3            emergency procurement by the board.
 4            (2)   The board shall be considered an agency for the
 5      purposes of the following:
 6                  (i)    The act of July 31, 1968 (P.L.769, No.240),
 7            referred to as the Commonwealth Documents Law.
 8                  (ii)    The act of June 25, 1982 (P.L.633, No.181),
 9            known as the Regulatory Review Act.
10   Section 306.     Board meetings.
11      (a)   Meetings.--
12            (1)   The board shall meet at the call of the chairperson.
13            (2)   The board and each advisory committee or
14      subcommittee of the board shall meet as often as deemed
15      necessary.
16            (3)   Within 30 days of the appointment of the initial
17      members of the board, the board shall conduct its first
18      meeting.
19      (b)   Designees.--In the case of absence of the chairperson
20   during a meeting of the board, the chairperson of the board may
21   designate another member to serve as a substitute chairperson
22   for the meeting.
23      (c)   Quorum.--
24            (1)   A majority of the members of the board shall
25      constitute a quorum of the board for the purpose of
26      organizing the authority and conducting official business.
27            (2)   Only members of the board who are physically present
28      at a meeting of the board or able to participate fully in the
29      deliberations by appropriate telecommunications means shall
30      count toward a quorum of the board.

20250SB0049PN1020                       - 23 -
 1            (3)   If a quorum is not present, a hearing of the board
 2      may still take place.
 3      (d)   Qualified majority vote.--
 4            (1)   Except as permitted in paragraphs (2) and (3), any
 5      action, including the approval, issuance, denial or
 6      conditioning of any permit by the board or the making of any
 7      order or the ratification of any permissible act done or
 8      order made by one or more of the members, shall require a
 9      qualified majority vote consisting of at least one
10      gubernatorial appointee and the four legislative appointees.
11            (2)   Any action to suspend or revoke, not renew, void or
12      require forfeiture of a permit, to impose any administrative
13      fine or penalty or to issue cease and desist orders or
14      similar enforcement actions shall require a majority vote of
15      all the members appointed to the board.
16            (3)   In addition to the provisions of this chapter or 65
17      Pa.C.S. § 1103(j) (relating to restricted activities), a
18      member shall disclose the nature of the member's
19      disqualifying interest, disqualify the member and abstain
20      from voting in a proceeding under this chapter in which the
21      member's objectivity, impartiality, integrity or independence
22      of judgment may be reasonably questioned, as provided in
23      section 304(b)(7). If a legislative appointee has
24      disqualified themself, the qualified majority shall consist
25      of all the remaining legislative appointees and at least two
26      gubernatorial appointees.
27   Section 307.    Board records.
28      (a)   Record of proceedings.--The board shall cause to be made
29   and kept a record of all proceedings held at public meetings of
30   the board. The verbatim transcript of the proceedings shall be

20250SB0049PN1020                     - 24 -
 1   the property of the board and shall be prepared by the board
 2   upon the request of any board member or upon the request of any
 3   other person and the payment by that person of the costs of
 4   preparation.
 5      (b)   Applicant information delivered to Governor and General
 6   Assembly under the Medical Marijuana Act.--
 7            (1)   The board shall maintain a list of all applicants
 8      for permits. The list shall include a record of all actions
 9      taken with respect to each applicant. The list shall be open
10      to public inspection during the normal business hours of the
11      board.
12            (2)   Information under paragraph (1) regarding any
13      applicant whose permit has been denied, revoked or not
14      renewed shall be removed from the list after seven years from
15      the date of the action.
16      (c)   Other files and records.--The board shall maintain other
17   files and records as it may deem appropriate.
18      (d)   Confidentiality of information.--All information
19   submitted by an applicant or obtained by the board as part of a
20   background investigation from any source shall be considered
21   confidential. Except as necessary to carry out the criminal
22   history investigation specified under this chapter, the
23   information shall be withheld from public disclosure in whole or
24   in part, except that any information shall be released upon the
25   lawful order of a court of competent jurisdiction or, with the
26   approval of the Attorney General, to a duly authorized law
27   enforcement agency or shall be released to the public, in whole
28   or in part, to the extent that the release is requested by an
29   applicant and does not otherwise contain confidential
30   information about another person. The board may not require an

20250SB0049PN1020                    - 25 -
 1   applicant to waive any confidentiality provided for in this
 2   subsection as a condition for the approval of a permit or any
 3   other action of the board. Any person who violates this
 4   subsection shall be administratively disciplined by discharge,
 5   suspension or other formal disciplinary action as the board
 6   deems appropriate.
 7      (e)     Notice.--Notice of the contents of any information,
 8   except to a duly authorized law enforcement agency under this
 9   section, shall be given to any applicant or permittee in a
10   manner prescribed by the rules and regulations adopted by the
11   board.
12      (f)     Information held by department.--Files, records, reports
13   and other information in the possession of the department
14   pertaining to permits shall be made available to the board as
15   may be necessary to the effective administration of this
16   chapter.
17   Section 308.    Regulations.
18      (a)     Temporary regulation.--The board shall promulgate
19   temporary regulations no later than 90 days from the effective
20   date of this subsection. The temporary regulations under this
21   subsection shall expire not later than two years after the
22   effective date of this subsection and shall not be subject to
23   any of the following:
24            (1)   Section 612 of the act of April 9, 1929 (P.L.177,
25      No.175), known as The Administrative Code of 1929.
26            (2)   Sections 201, 202, 203, 204 and 205 of the act of
27      July 31, 1968 (P.L.769, No.240), referred to as the
28      Commonwealth Documents Law.
29            (3)   Sections 204(b) and 301(10) of the act of October
30      15, 1980 (P.L.950, No.164), known as the Commonwealth

20250SB0049PN1020                    - 26 -
 1      Attorneys Act.
 2            (4)   The act of June 25, 1982 (P.L.633, No.181), known as
 3      the Regulatory Review Act.
 4      (a.1)   Failure to promulgate regulations.--If the board fails
 5   to promulgate regulations under subsection (a), regulations
 6   promulgated under the Medical Marijuana Act shall apply.
 7      (b)   Compliance deadline.--A current cannabis organization on
 8   the effective date of this subsection that is authorized to
 9   cultivate, process, dispense or transport cannabis shall have 90
10   days from the effective date of a new temporary regulation
11   promulgated by the board under subsection (a) to comply with the
12   temporary regulation.
13      (c)   Regulations.--The board shall promulgate regulations,
14   with input from stakeholders, to implement the provisions of
15   this chapter, including all of the following:
16            (1)   Regulation of unregulated cannabis products that are
17      sold at unpermitted locations.
18            (2)   The types of permits issued by the board.
19            (3)   The methods and forms of permit applications,
20      including timeline, fees and minimum requirements.
21            (4)   The policies and procedures to prioritize, promote
22      and encourage diversity and full participation by individuals
23      from communities that have been disproportionately harmed by
24      cannabis prohibition and cannabis enforcement prohibition.
25            (5)   Procedures to process and competitively score permit
26      applications.
27            (6)   Procedures to process administrative requests,
28      including changes of ownership and location.
29            (7)   Security procedures for cannabis organizations.
30            (8)   Enforcement procedures, including fines, suspensions

20250SB0049PN1020                    - 27 -
 1    and revocations.
 2        (9)    Ownership and financial disclosure procedures and
 3    requirements for cannabis organizations, including record
 4    keeping requirements.
 5        (10)    Procedures and requirements concerning the
 6    divestiture of a beneficial ownership interest by a person
 7    found unqualified.
 8        (11)    Procedures, processes and requirements for
 9    transfers of ownership, including the involvement of a
10    publicly traded corporation.
11        (12)    Seed-to-sale tracking system procedures. The system
12    shall be the record or a secondary electronic tracking system
13    used by a cannabis organization or testing laboratory that
14    meets all of the following criteria:
15               (i)    The system shall capture everything that happens
16        to a cannabis plant from seed and cultivation through the
17        growth, harvest and manufacturing of cannabis, including
18        testing and transportation, to final sale.
19               (ii)    The system shall use unique plant
20        identification and unique batch identification.
21               (iii)    The system shall track the involvement of an
22        agent or permittee with cannabis products.
23               (iv)    The system shall integrate with a secondary
24        system used by a cannabis organization or a cannabis
25        testing facility, if applicable, in a form and manner
26        determined by the board.
27               (v)    The system shall allow for two-way
28        communication, automation and a secure application-
29        programming interface with a cannabis organization's
30        enterprise resource planning, inventory, accounting and

20250SB0049PN1020                    - 28 -
 1        point-of-sale software.
 2               (vi)    The system shall include a secure application
 3        program interface capable of accessing all data required
 4        to be transmitted to the board to ensure compliance with
 5        the operational reporting requirements specified under
 6        this chapter and any regulations promulgated by the
 7        board.
 8               (vii)    The board and the board's contracted seed-to-
 9        sale vendor shall allow cannabis business establishments
10        to utilize any enterprise resource planning, inventory,
11        accounting and point-of-sale software of the cannabis
12        business establishment's choosing, provided that the
13        systems must integrate through application-programming
14        interface to the State's seed-to-sale software.
15               (viii)    The board's contracted seed-to-sale vendor
16        may not offer point-of-sale services to a cannabis
17        business establishment.
18        (13)    Procedures and requirements for curbside pickup
19    services offered by dispensing organizations.
20        (14)    Transportation requirements, including:
21               (i)    Establishing procedures and requirements for
22        home delivery services by dispensing organizations and
23        micro cultivation centers.
24               (ii)    A requirement that transportation between
25        cannabis organizations occurs in secured vehicles but
26        allowing for transportation in vehicles other than those
27        owned and operated by cannabis organizations for
28        purchasers to transport cannabis.
29               (iii)    Details required on transportation manifests.
30               (iv)    Policies encouraging bulk shipment where

20250SB0049PN1020                    - 29 -
 1        appropriate.
 2               (v)    Requirements relating to shipping containers and
 3        packaging.
 4               (vi)    The manner in which trucks, vans, trailers or
 5        other carriers will be secured.
 6               (vii)    Security systems that include a numbered seal
 7        on the trailer.
 8               (viii)    Obtaining copies of drivers' licenses and
 9        registrations and other information related to security
10        and tracking.
11               (ix)    Use of GPS systems.
12               (x)    Number of drivers or other security required to
13        ensure against storage or in-transit losses.
14               (xi)    Recordkeeping for delivery and receipt of
15        medical cannabis products.
16               (xii)    Storing of cannabis temporarily at fulfillment
17        centers operated by third-party contractors contracted by
18        cultivation centers for transporting cannabis. A third-
19        party contractor may not hold a permit issued by the
20        board or be otherwise affiliated with a cannabis
21        organization or laboratory.
22        (15)    Labeling requirements.
23        (16)    Advertising and marketing regulations that balance
24    the ability of a cannabis organization to engage in
25    reasonable marketing and promotional activities that are not
26    directed at minors to promote the use of cannabis.
27        (17)    Product safety regulations, including:
28               (i)    Regulations consistent with best practices for
29        food products, except where necessary modifications are
30        required due to the active compounds in the cannabis

20250SB0049PN1020                    - 30 -
 1            plant.
 2                   (ii)    Standards for packaging to address freshness,
 3            tamper evidence and limiting access to children.
 4                   (iii)    Standard symbols and warnings where the board
 5            shall review symbols and warnings from other
 6            jurisdictions where cannabis sales are permitted. As
 7            national standards are made available, the board shall
 8            plan to adopt national standards.
 9                   (iv)    A prohibition on packaging that is likely to
10            appeal to minors.
11            (18)    Requirements that cannabis organizations use
12      standards and practices that align with United States
13      Department of Agriculture and Food and Drug Administration
14      standards, when appropriate for the purposes of this chapter.
15            (19)    Procedures for the investigation and enforcement of
16      unregulated and unpermitted cultivation, processing,
17      manufacturing, sale, dispensing or distribution of cannabis
18      or products intended for consumption or inhalation.
19            (20)    Procedures for medical professionals in
20      dispensaries.
21      (d)   Compliance deadline.--A permittee shall have 180 days
22   from the effective date of a new regulation promulgated by the
23   board under this section to comply with the new regulation.
24      (e)   Review of current regulations.--When promulgating
25   regulations under this section, the board shall review current
26   regulations promulgated under the Medical Marijuana Act and may
27   implement or revise those regulations.
28   Section 309.      Powers and duties of board.
29      (a)   General powers.--
30            (1)    The board shall have general and sole regulatory

20250SB0049PN1020                        - 31 -
 1    authority over the conduct of cannabis organizations and
 2    related activities as described in this chapter.
 3        (2)   The board shall employ individuals, including a
 4    chief medical officer and an executive director as provided
 5    under section 303(g), as necessary to carry out the powers
 6    and duties of the board, who shall serve at the board's
 7    pleasure. An employee of the board shall be considered a
 8    State employee for purposes of 71 Pa.C.S. Pt. XXV (relating
 9    to retirement for State employees and officers). For the
10    purposes of this paragraph, the board shall not be considered
11    an executive or independent agency under the act of October
12    15, 1980 (P.L.950, No.164), known as the Commonwealth
13    Attorneys Act.
14        (3)   In addition to employees authorized by the board,
15    each member may employ one special assistant whose
16    classification and compensation shall be established by the
17    board. A special assistant shall be a State employee for
18    purposes of 71 Pa.C.S. Pt. XXV, shall serve at the pleasure
19    of the member and may only be removed by the board for cause.
20        (4)   The board shall establish a system of classification
21    and compensation of its employees and shall not be subject to
22    the provisions of the act of April 9, 1929 (P.L.177, No.175),
23    known as The Administrative Code of 1929, as to
24    classification and compensation for its employees and conduct
25    its activities consistent with the practices and procedures
26    of Commonwealth agencies.
27        (5)   Within 90 days of the effective date of this
28    paragraph, the board shall transmit to the Legislative
29    Reference Bureau for publication in the next available issue
30    of the Pennsylvania Bulletin and publish on the board's

20250SB0049PN1020                 - 32 -
 1      publicly accessible Internet website the classification
 2      system for all employees of the board.
 3            (6)   A request for proposal to conduct investigations of
 4      employees and applicants under this chapter shall include a
 5      requirement that an offeror provide the number of employees
 6      of the offeror who will be engaged in the conduct of
 7      investigations and who are residents of this Commonwealth and
 8      annuitants of a Federal, State or local law enforcement
 9      agency. Preference shall be given to an offeror with a
10      substantial number of employees who will be engaged in the
11      conduct of investigations and who are residents of this
12      Commonwealth and annuitants of a Federal, State or local law
13      enforcement agency.
14      (b)   Specific powers.--The board shall have the specific
15   power and duty:
16            (1)   To adopt, use and alter a corporate seal.
17            (2)   To pay or satisfy obligations of the board.
18            (3)   To sue or be sued, implead and be impleaded or
19      interplead.
20            (4)   To contract and execute instruments as necessary to
21      carry out the powers and duties of the board. Contracts for
22      the purchase of supplies, services and construction shall be
23      for a term not to exceed two years.
24            (5)   To sell, transfer, convey and dispose of tangible or
25      intangible property owned by the board.
26            (6)   To establish, charge and collect fees and fines as
27     

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