Pennsylvania Cannabis License Guidelines

Pennsylvania Department of Health

Licensing and Enforcement Criteria

The Pennsylvania Department of Health coordinates the state’s Medical Marijuana Program (MMP). The MMP provides access to medical marijuana for patients with a serious medical condition through a safe and effective method of delivery that balances patient need for access to the latest treatments with patient care and safety as top priority.

An applicant for a grower/processor permit shall provide an affidavit that the applicant has at least $2 million in capital, $500,000 of which is on deposit with one or more financial institutions.

An applicant for a dispensary permit shall provide an affidavit that the applicant has at least $150,000 on deposit with one or more financial institutions.

The Department may conduct announced or unannounced inspections or investigations to determine the medical marijuana organization’s compliance with its permit, the act or this part.

An investigation or inspection may include:

  • Inspection of a medical marijuana organization’s site, facility, vehicles, books, records, papers, documents, data, and other physical or electronic information.
  • Questioning of employees, principals, operators, financial backers, authorized agents of, and any other person or entity providing services to the medical marijuana organization.
  • Inspection of a grower/processor facility’s equipment, instruments, tools and machinery that are used to grow, process and package medical marijuana, including containers and labels.

A medical marijuana organization shall submit the following reports to the Department, on forms prescribed by the Department, at the end of the first 12-month period following the issuance of a permit, and as of the end of each 3-month period thereafter:

In the case of a grower/processor:

  • The number of medical marijuana products sold by the grower/processor to dispensaries during the period for which the report is being submitted.
  • The per-dose price of an amount of medical marijuana products sold by the grower/processor to a medical marijuana organization in a unit of measurement as determined by the Department.
  • The number or amount of seeds, immature medical marijuana plants, medical marijuana plants, medical marijuana and medical marijuana products sold by a grower/processer to other growers/processors during the period for which the report is being submitted.        

In the case of a dispensary:

  • The number of medical marijuana products purchased by the dispensary during the period for which the report is being submitted.
  • The per-dose price of medical marijuana products purchased by a dispensary in a unit of measurement as determined by the Department.
  • The per-dose price of an amount of medical marijuana products dispensed to a patient or caregiver by a dispensary and in a unit of measurement as determined by the Department.

Pennsylvania Cannabis Law & Compliance

Several laws and ordinances regulate the Pennsylvania medical cannabis industry, as well as the many different steps in the supply chain. These laws range over dispositions for cultivators, manufacturers, distributors and retail dispensaries. The most recent news can be found on these websites:

FAQs

What are the requirements to become an approved Grower/Processor of medical marijuana in Pennsylvania?

The department may issue permits for no more than 25 growers/processors. No more than five grower/processors may also be issued a dispensary permit. The application process requires an applicant – at a minimum – to:

  • Apply for, and be awarded, a permit with the department before growing/processing medical marijuana.
  • Provide information in the permit application, including, but not limited to:
    • Ability to maintain effective security and control to prevent diversion, abuse or other illegal conduct.
    • Evidence of municipality zoning requirements compliance.
    • Provide a diversity plan.
  • Submit a permit application with:
    • Initial non-refundable fee of $10,000.
    • Permit fee of $200,000, which is refundable if the permit is not granted.
    • Proof of $2 million in capital ($500,000 of which must be on deposit in a financial institution).

Those that are awarded a permit must complete a two-hour training course. As permitted by the Act, the department may provide for other requirements through temporary regulations.

How much is the fee for an initial grower/processor permit?

The initial permit application fee is $10,000. The initial permit application fee shall be submitted with the initial permit application and is nonrefundable in most circumstances.

Initial permit fee—$200,000. The initial permit fee shall be submitted with the initial permit application and will be refunded if the initial permit is not granted.

How much is the fee for an initial dispensary permit?

The initial permit application fee is $5,000. The initial permit application fee shall be submitted with the initial permit application and is nonrefundable, except as otherwise provided in this part.

Initial permit fee is $30,000 for each dispensary location. The initial permit fee shall be submitted with the initial permit application and will be refunded if the initial permit is not granted.

The permit renewal fee is $5,000. The permit renewal fee shall be submitted with a renewal application and will be refunded if the renewal permit is not granted.

Are any limitations in place on the number of permits available for cannabis businesses?

The following limitations apply regarding the number of permits to be issued under this part:

The Department will not initially issue permits to more than 25 applicants for grower/processor permits. The following apply:

  • The Department will not issue more than one individual grower/processor permit to one person.
  • The Department will not issue an individual dispensary permit to more than five individual grower/processors.

The Department will not initially issue permits to more than 50 applicants for dispensary permits. The following apply:

  • The Department will not issue more than five individual dispensary permits to one person.
  • A dispensary permit may be used to provide medical marijuana at no more than three separate locations as approved by the Department.

In accordance with section 1202(j)(5)(iv) of the act (35 P.S. §  10231.1202(j)(5)(iv)), the Department may issue permits in addition to those in paragraphs (1) and (2) if necessary as the Medical Marijuana Program expands, including to comply with an order of court. No more than 20% of the total number of growers/processors may also be issued permits as dispensaries.

What are some reasons a permit may be denied?

The Department will deny the renewal of a permit if the Department determines:

  • The medical marijuana organization has not or is unlikely to be able to continuously maintain effective control against diversion of medical marijuana at its facility.
  • The medical marijuana organization falsified any part of the permit renewal application or any other application submitted to the Department under this part.
  • The medical marijuana organization is unlikely to comply with all Commonwealth and local laws applicable to the activities in which it may engage under the permit, if renewed.

An existing permit is immediately invalid upon expiration if the medical marijuana organization has not filed a permit renewal application and remitted the required fees.

The MMP has denied my renewal or I failed to submit my paperwork with proper fees in time and my permit has expired, what must I do now?

If the Department denies renewal of the permit or if the medical marijuana organization fails to submit a permit renewal application and permit renewal fee as required, the medical marijuana organization shall do the following upon the expiration of the permit:

  • Cease all operations authorized by the permit.
  • In the case of a grower/processor, dispose of any remaining seeds, immature medical marijuana plants, medical marijuana plants, medical marijuana, medical marijuana products, plant matter or any growing equipment as set forth in §  1151.40 (relating to management and disposal of medical marijuana waste).
  • In the case of a dispensary, return the medical marijuana products to the grower/processor where the medical marijuana products originated.

If a medical marijuana organization submits a permit renewal application and permit renewal fee to the Department as required, the Department may administratively extend the existing permit from the date the existing permit expires until the Department can complete its permit renewal application review.

Pennsylvania Cannabis License Types

Dispensary

A medical marijuana business licensed by the medical marijuana program under the Department of Health. A dispensary may only dispense medical marijuana products to a patient or caregiver who presents a valid identification card to an employee at the facility who is authorized to dispense medical marijuana products at the facility.

Except when noted, a dispensary shall ensure that a physician or a pharmacist is present at the facility at all times during the hours the facility is open to dispense or to offer to dispense medical marijuana products to patients and caregivers.

If a dispensary is authorized to operate more than one facility under its permit, a physician assistant or a certified registered nurse practitioner may be present onsite at each of the other locations instead of a physician or pharmacist.

Grower/Processor

Licensed cultivation and manufacturing cannabis businesses that grow and process marijuana for patient consumption.  Grower/Processor license also allows for the transportation of cannabis to other licensed medical marijuana businesses.

A grower/processor may only grow, store, harvest or process seeds, immature medical marijuana plants, medical marijuana plants, medical marijuana or medical marijuana products in an indoor, enclosed, secure facility as approved by the Department.

A grower/processor shall package and label at its facility each form of medical marijuana products prepared for sale. The original seal of a package may not be broken, except for quality control testing at an approved laboratory, for adverse loss investigations conducted by the Department or by a dispensary that purchased the medical marijuana products.

Laboratory

A laboratory that has applied for, and received, the approval of the Department to identify, collect, handle and conduct tests on samples from a grower/processor and test samples from the Department used in the growing and processing of medical marijuana or dispensing of medical marijuana products as required by the act and this part.

 A list of the specialized laboratory equipment utilized or to be utilized by the laboratory applicant in its testing operations, including the manufacturer’s name and the serial and model number of the equipment, and other specifications as may be required by the Department.

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