PRINTER'S NO. 2333
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2050
Session of
2021
INTRODUCED BY WHEATLEY, FRANKEL, HILL-EVANS, ZABEL, McNEILL,
N. NELSON, MALAGARI, SANCHEZ, HOHENSTEIN, BURGOS, SIMS,
HARRIS, DALEY, STURLA, GUZMAN, A. DAVIS, KINSEY, D. WILLIAMS,
FITZGERALD, GUENST, KINKEAD AND SHUSTERMAN, OCTOBER 27, 2021
REFERRED TO COMMITTEE ON JUDICIARY, OCTOBER 27, 2021
AN ACT
1 Providing for the regulation of cannabis and cannabis products
2 for personal use and for exemptions related to the personal
3 use of cannabis and cannabis products; establishing a
4 cannabis regulatory control board and providing for its
5 powers, duties and restrictions; conferring powers and
6 imposing duties on the Department of Revenue, the Department
7 of Agriculture, the Department of Health and the Office of
8 Attorney General; regulating the cultivation, processing,
9 distribution, testing, transporting, sale and offering for
10 sale of cannabis and cannabis products; providing for
11 licensing and permitting of cannabis entities, cannabis
12 microbusinesses, cannabis testing laboratories and other
13 persons engaged in a regulated activity, for certification or
14 registration of essential employees, officers, principals and
15 other persons and for social and economic equity;
16 establishing the Office of Social and Economic Equity and the
17 Cannabis Business Development Fund; providing for diverse
18 business development and a grant and loan program;
19 establishing the Cannabis Revenue Fund; providing for
20 Communities Reimagined and Reinvestment Program, for
21 Community Reimagined and Reinvestment Account and for
22 Substance Abuse Prevention, Treatment and Education Fund;
23 imposing fees, taxes and assessments on cannabis entity
24 licensees, permittees and persons engaged in a regulated
25 activity; and providing for enforcement, for prohibited acts,
26 for penalties, for sanctions and immunities, for certain
27 expungements, for transfer of functions of the Department of
28 Health and for medical marijuana.
29 TABLE OF CONTENTS
30 Chapter 1. Preliminary Provisions
 1 Section 101. Short title.
2 Section 102. Legislative findings and intent.
3 Section 103. Definitions.
4 Chapter 2. Exemptions Related to Personal Use of Cannabis and
5 Cannabis Products
6 Section 201. Personal use of cannabis and cannabis products
7 and exemptions.
8 Chapter 3. Cannabis Regulatory Control Board
9 Section 301. Cannabis Regulatory Control Board established.
10 Section 302. Qualifications and restrictions.
11 Section 303. Code of conduct.
12 Section 304. Powers and duties of board.
13 Section 305. Regulatory authority of board.
14 Section 306. Additional regulatory authority.
15 Section 307. Temporary regulations.
16 Section 308. Cannabis entity application appeals from board.
17 Section 309. Hearing process.
18 Section 310. Board minutes and records.
19 Section 311. Selection criteria.
20 Section 312. Collection of fees and fines.
21 Section 313. Cannabis entity license fees.
22 Chapter 4. Social and Economic Equity
23 Section 401. Office of Social and Economic Equity.
24 Section 402. Cannabis Business Development Fund.
25 Section 403. Social and Economic Equity Loan and Grant Program.
26 Section 404. Fee waivers.
27 Section 405. Transfer of cannabis entity license.
28 Section 406. Required reports.
29 Chapter 5. Regulation of Cannabis
30 Section 501. Regulation of cannabis.
20210HB2050PN2333 - 2 -
 1 Section 502. Order of initial issuance of cannabis entity
2 licenses.
3 Section 503. Expedited approval of cannabis entity license.
4 Section 504. Authorization for secondary site.
5 Section 505. Cannabis entity license application.
6 Section 506. Application requirements.
7 Section 507. Additional license requirements.
8 Section 508. Change in ownership or control of cannabis entity
9 licensee.
10 Section 509. Licensing of principals.
11 Section 510. Registration of essential employees.
12 Section 511. Divestiture of disqualifying person.
13 Section 512. Financial fitness requirements.
14 Section 513. Alternative licensing standards.
15 Section 514. Bond for issuance of cannabis entity license.
16 Section 515. Required content of license, permit or other
17 authorization.
18 Section 516. Renewals.
19 Section 517. Home cultivation.
20 Chapter 6. License, Permit or Other Authorization
21 Section 601. Additional requirements for issuance.
22 Section 602. Conditional cannabis entity license.
23 Section 603. Licensure of cannabis microbusinesses.
24 Section 604. Cannabis cultivator license.
25 Section 605. Cannabis cultivator grow canopy.
26 Section 606. Cannabis processor license.
27 Section 607. Cannabis retailer license.
28 Section 608. Inventory verification system; cannabis retailer
29 licensee.
30 Section 609. Storage requirements.
20210HB2050PN2333 - 3 -
 1 Section 610. Cannabis transporter license.
2 Section 611. Cannabis handler certificate.
3 Section 612. Cannabis responsible training required.
4 Section 613. Provisions governing cultivation and processing of
5 cannabis and cannabis products.
6 Section 614. Provisions governing cannabis retailer licensees.
7 Section 615. Provisions governing cannabis transporter
8 licensees.
9 Section 616. Need for additional licenses.
10 Chapter 7. Packaging, Labeling, Testing and Special Use Permits
11 Section 701. Packaging and labeling.
12 Section 702. Laboratory testing.
13 Section 703. Cannabis laboratory testing permit.
14 Section 704. Special use permits.
15 Chapter 8. Recordkeeping, Tracking, Inspection and Advertising
16 Section 801. Recordkeeping and tracking.
17 Section 802. Inspections.
18 Section 803. Advertising.
19 Chapter 9. Administration and Enforcement
20 Section 901. Authority and duties of department and Department
21 of Agriculture.
22 Section 902. Liens and suits for taxes.
23 Section 903. No eminent domain authority.
24 Section 904. Cannabis establishment zoning and land-use
25 appeals.
26 Section 905. Labor hiring preferences.
27 Section 906. Financial and employment interests.
28 Section 907. Additional restrictions.
29 Section 908. Investigation and enforcement.
30 Section 909. Additional authority and Office of Enforcement
20210HB2050PN2333 - 4 -
 1 Counsel.
2 Section 910. Prohibited acts and penalties.
3 Section 911. Administrative sanctions.
4 Section 912. General immunities and presumptions.
5 Section 913. Adoption of State standards and requirements.
6 Chapter 10. Fees and Taxes
7 Section 1001. Cannabis cultivator and processor privilege tax.
8 Section 1002. Cannabis excise tax.
9 Section 1003. Registration required.
10 Section 1004. Unlawful disclosure and penalty.
11 Section 1005. Violation of tax requirements and administrative
12 penalty.
13 Chapter 11. Revenue
14 Section 1101. Cannabis Revenue Fund.
15 Section 1102. Communities Reimagined and Reinvestment
16 Restricted Account.
17 Section 1103. Substance Use Disorder Prevention, Treatment and
18 Education Account.
19 Section 1104. Small business recovery grants.
20 Chapter 12. Municipalities
21 Section 1201. Provisions specific to municipalities.
22 Section 1202. Local opt-out and municipal control and
23 preemption.
24 Section 1203. Preemptions.
25 Section 1204. Local cannabis taxation.
26 Chapter 13. Protections
27 Section 1301. Protections for personal use of cannabis.
28 Section 1302. Lawful actions.
29 Section 1303. Access to criminal history information through
30 Pennsylvania State Police.
20210HB2050PN2333 - 5 -
 1 Section 1304. Cannabis clean slate.
2 Chapter 20. Miscellaneous Provisions
3 Section 2001. Transfer of powers and duties.
4 Section 2002. Repeals.
5 Section 2003. Effective date.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 CHAPTER 1
9 PRELIMINARY PROVISIONS
10 Section 101. Short title.
11 This act shall be known and may be cited as the Cannabis
12 Regulatory Control Act.
13 Section 102. Legislative findings and intent.
14 (a) Findings.--The General Assembly finds and declares as
15 follows:
16 (1) The criminalization of marijuana has not been
17 effective in reducing arrests, prosecutions and convictions
18 for simple marijuana offenses but has, instead, resulted in
19 collateral social and economic damage, including mass
20 incarcerations, which serves to inhibit the ability of some
21 otherwise law-abiding citizens of this Commonwealth to access
22 employment, housing, business ownership, traditional banking
23 systems and capital, quality health care and other vital
24 services and, juxtaposed with the "war on drugs," has
25 disproportionately impacted the long-term social and economic
26 well-being of communities and people of color.
27 (2) The criminalization of marijuana served as one, if
28 not the primary, catalyst that triggered the growth of the
29 illicit marijuana market, which continues to flourish,
30 threaten public health and safety and obstruct legislative
20210HB2050PN2333 - 6 -
 1 and societal efforts to deter possession and use by children.
2 (3) The implementation of the Commonwealth's Medical
3 Marijuana Program reveals that additional efforts are needed
4 to manage barriers to participation in this Commonwealth's
5 regulated cannabis industry. As of May 15, 2020, 22 marijuana
6 grower/processor permits and 80 marijuana dispensary permits
7 had been issued by the Department of Health authorizing the
8 holders to grow, process or sell medical marijuana. In
9 transitioning to a regulated cannabis industry for adult
10 cannabis consumers, the General Assembly seeks to ensure that
11 opportunities for entrepreneurship and jobs exist so that
12 businesses and individuals within the cannabis industry
13 reflect the diverse population of this Commonwealth. In the
14 interest of inclusion and equity, a regulated cannabis
15 industry should be equitable and accessible to individuals
16 and communities adversely impacted by enforcement of
17 marijuana laws in this Commonwealth.
18 (4) The regulation of personal use cannabis authorized
19 under this act is intended to provide broad economic
20 opportunities to the residents of this Commonwealth and shall
21 be implemented in a manner as to prevent possible
22 monopolization by establishing reasonable restrictions on the
23 control of multiple cannabis entity licenses in this
24 Commonwealth.
25 (5) Participation in the commercial cannabis industry
26 under this act by a licensee, permittee or other person
27 authorized to engage in a regulated activity shall be deemed
28 a privilege, conditioned upon the proper and continued
29 qualification of the licensee, permittee or other person and
30 upon the discharge of the affirmative responsibility of each
20210HB2050PN2333 - 7 -
 1 licensee, permittee or other person to provide the regulatory
2 and investigatory authorities of the Commonwealth with
3 assistance and information necessary to assure that the
4 policies declared by this act are achieved.
5 (6) Strictly monitored and enforced control over all
6 aspects of the regulation of cannabis authorized under this
7 act shall be provided through regulation, licensing and
8 appropriate enforcement actions of specified locations,
9 persons, associations, practices, activities, licensees,
10 permittees and other persons authorized to engage in a
11 regulated activity as under this act.
12 (7) The public interest of the residents of this
13 Commonwealth and the social effects of the personal use of
14 cannabis shall be taken into consideration in any decision or
15 order made by the Cannabis Regulatory Control Board under
16 this act.
17 (8) The Commonwealth has a compelling State interest in
18 protecting the integrity of a regulated cannabis industry by
19 preventing corruption and the appearance of corruption, which
20 may arise from the regulation of cannabis for personal use in
21 this Commonwealth.
22 (9) It is therefore necessary to maintain the integrity
23 of the regulatory control and legislative oversight over the
24 operation of a regulated cannabis industry, to ensure the
25 bipartisan administration of this act and avoid actions which
26 may erode public confidence in the regulatory and legislative
27 process and, thereby, the system of representative
28 government.
29 (10) In the interest of allowing law enforcement to
30 focus on violent and property crimes, generating revenue for
20210HB2050PN2333 - 8 -
 1 social justice programs, small businesses, substance use
2 disorder prevention and treatment, freeing public resources
3 to invest in communities and other public purposes and
4 individual freedom, the General Assembly further finds and
5 declares that the personal use of cannabis should be legal
6 for individuals 21 years of age or older and should be taxed
7 in a manner designed to enhance the conditions of daily
8 living for marginalized individuals in this Commonwealth
9 while, simultaneously, effectuating tax revenues for the
10 Commonwealth and the Commonwealth's political subdivisions.
11 (b) Objectives.--The General Assembly declares that
12 paramount among the objectives of this act, to which all other
13 objectives and purposes are secondary, is to keep marijuana out
14 of the hands of children and to keep profits out of the hands of
15 criminals, including organized criminal enterprises. Other
16 principal objectives of this act are to:
17 (1) Reduce the burden on law enforcement and the
18 criminal justice system associated with simple marijuana
19 possession offenses.
20 (2) Prevent children from entering the criminal justice
21 system due to convictions for simple marijuana offenses.
22 (3) Protect public health and safety by strengthening,
23 where appropriate, laws and enforcement measures which deter
24 and punish more serious marijuana offenses, specifically,
25 trafficking controlled substances to children, selling
26 outside of the regulatory framework authorized under this act
27 and operating a motor vehicle while under the influence of
28 marijuana.
29 (4) Ensure that the residents of this Commonwealth are
30 well-informed through sustained and appropriate public health
20210HB2050PN2333 - 9 -
 1 campaigns and ensure that the risks are understood,
2 especially for children.
3 (5) Establish and enforce a strict system of
4 cultivation, processing, distribution, testing and sales of
5 cannabis and cannabis products, emphasizing public health and
6 safety, with regulation of quality and safety.
7 (6) Promote ownership and participation by individuals
8 who reside or have resided in areas of high poverty, high
9 unemployment and high enforcement of cannabis-related laws to
10 foster the development and growth of an equitable cannabis
11 industry in this Commonwealth.
12 (7) Ensure that the provisions of this act are not
13 construed to diminish the Commonwealth's obligation and
14 commitment to individuals suffering from serious medical
15 conditions as provided under the Medical Marijuana Act, nor
16 alter the privileges and protections granted to individuals
17 suffering from serious medical conditions as provided under
18 the Medical Marijuana Act.
19 (c) Intent.--The following apply:
20 (1) The General Assembly finds and declares that the
21 intent of this act is to:
22 (i) Create a new industry in this Commonwealth
23 through the regulation, control and taxation of cannabis
24 for personal use by adults 21 years of age or older,
25 thereby:
26 (A) Generating significant new tax revenue.
27 (B) Requiring certain entities to make
28 substantial financial investments in people and
29 communities traditionally and adversely impacted by
30 the criminalization of marijuana to help address the
20210HB2050PN2333 - 10 -
 1 social and economic consequences of marijuana
2 criminalization.
3 (C) Preventing access to