Pennsylvania Bill Would Add Medical Marijuana Dispensary Permits for Small and Diverse Businesses

Key Points
  • Pennsylvania lawmakers filed House Bill 2694 to authorize six additional medical marijuana dispensary permits, one for each of the state’s six medical marijuana regions.
  • The bill requires the Department of Health to issue new permits to applicants qualifying as disadvantaged, diverse, or small businesses, with definitions provided for each category.
  • House Bill 2694 also creates a process to make surrendered or revoked medical marijuana licenses available annually to new applicants who meet the disadvantaged, diverse, or small business criteria.
  • The legislation, sponsored by State Representative Nathan Davidson and cosponsored by several Democrats, would take effect 120 days after being signed into law, building on Pennsylvania’s Medical Marijuana Act enacted in 2016.

Pennsylvania lawmakers have filed legislation that would authorize six additional medical marijuana dispensary permits, with one issued in each of the state’s six medical marijuana regions.

House Bill 2694 was filed today and referred to the House Health Committee. The measure is sponsored by State Representative Nathan Davidson (D), with State Representatives David Madsen (D), Ben Sanchez (D), Maureen Madden (D), Benjamin Waxman (D), Jose Giral (D), Steven Malagari (D) and Roni Green (D) joining as cosponsors.

Under the proposal, the Pennsylvania Department of Health would be required to issue one additional dispensary permit in each region to an applicant qualifying as a disadvantaged, diverse or small business. Pennsylvania currently divides its medical marijuana market into six geographic regions.

The legislation defines a disadvantaged business as one owned or controlled by a majority of individuals subjected to racial or ethnic prejudice or cultural bias. A diverse business would include certified disadvantaged, minority-owned, women-owned, service-disabled veteran-owned or veteran-owned small businesses.

A small business would be defined as an independently owned and operated for-profit company with no more than 100 employees that is not a subsidiary or affiliate of a corporation.

House Bill 2694 would also establish a process for making surrendered or revoked medical marijuana licenses available to new applicants. The Department of Health would be required to publish a list of those licenses by December 5 each year and begin accepting applications by January 15.

Applications for the available licenses would similarly be limited to disadvantaged, diverse and small businesses.

The measure would take effect 120 days after being signed into law.

Pennsylvania enacted its Medical Marijuana Act in April 2016, establishing a regulated system overseen by the Department of Health.