The Medical Marijuana Act was signed into law on April 17, 2016, and amended by Act 44 of 2021 on June 30, 2021, which made a number of enhancements to the state’s program. The Act establishes a program for the use of medical cannabis in Pennsylvania by patients with serious medical conditions. The Pennsylvania Department of Health (DOH) issues permits to approved medical cannabis growers/processors and dispensaries.

Pennsylvania Cannabis Business, Cultivation and Processing

Grower/processors grow medical marijuana plants and process those plants into acceptable forms of medical marijuana products for distribution to dispensaries.

The application process requires an applicant to:

1. Apply for a permit with the department before growing\processing marijuana.

2. Provide information or evidence in the permit application, including, but not limited to:

  • business plan with description of business organization and activities;
  • federal and state criminal background check;
  • ability to maintain effective security and control to prevent diversion, abuse or other illegal conduct;
  • compliance with municipality zoning requirements;
  • a diversity plan.

3. 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; and
  • proof of $2 million in capital ($500,000 of which must be on deposit in a financial institution).

Currently, 33 grower/processors are operational and actively growing and processing medical marijuana.

Pennsylvania Cannabis Business, Dispensary

Dispensaries dispense medical marijuana products to certified patients and approved caregivers for the treatment of serious medical conditions. Dispensaries are charged with maintaining clean, efficient, and secure facilities and ensuring that medical marijuana products are dispensed only to certified patients and approved caregivers.

The application process requires an applicant to:

1. Apply for a permit with the department before dispensing marijuana.

2. Provide information or evidence in the permit application, including, but not limited to:

  • business plan with description of business organization and activities;
  • federal and state criminal background check;
  • ability to maintain effective security and control to prevent diversion, abuse or other illegal conduct;
  • compliance with municipality zoning requirements;
  • a diversity plan.

3. Submit a permit application with:

  • initial non-refundable fee of $5,000
  • permit fee of $30,000, which is refundable if the permit is not granted; and
  • proof of $150,000 in capital.

Currently, 177 dispensary sites, of which includes Clinical Registrant dispensaries, have been deemed operational and are actively dispensing medical marijuana products to certified patients and approved caregivers.

Pennsylvania Cannabis Market

Pennsylvania Cannabis Business, Testing Facilities

Laboratories testing medical marijuana are also overseen by the Department. The Department’s Office of Medical Marijuana has issued guidance for testing and sampling of medical marijuana by a Department-approved laboratory. An approved laboratory collects samples for testing after harvesting the medical marijuana and again after processing it into a medical marijuana product. Additionally, Act 44 amended the Medical Marijuana Act to require stability testing at established intervals. Approved medical marijuana laboratories test for contaminants and potency to ensure that medical marijuana adheres to its chemical labeling.

Pennsylvania Cannabis Business, Taxes

There is a 5% tax on gross receipts received from the sale of medical marijuana and marijuana products by a grower/processor to a dispensary. The tax is paid by the grower/processor. Retail sales of medical marijuana and marijuana products (excluding accessories) are not subject to sales tax.


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