Pennsylvania Issues Grower/Processor and Dispensary Permit Applications for Medical Marijuana Program

On January 17, 2017, the Pennsylvania Department of Health (“DOH”) released grower/processor and dispensary permit applications (“Applications”), which can be found on Pennsylvania’s Medical Marijuana Program website. DOH will accept Applications from February 20 – March 20, 2017, and will begin taking questions about the Applications on February 8, 2017. Other highlights regarding the application process are set forth below.

• 12 grower/processor permits will be issued.
• 27 dispensary permits will be issued.
• Two grower/process permits will be issued in each of the six regions in the Commonwealth.
• The maximum number of dispensary locations in each region (by county) is set forth in the Applications’ instructions on page two.
• Each applicant will receive a weighted score out of a maximum number of 1,000 points.
• The Applications require information regarding, among other items, an applicant’s diversity plan, background information about principals, financial backers, operators and employees, capital sufficiency, an applicant’s plan of operation and an operational timetable, and an applicant’s anticipated community impact.
• Principals means “an officer, director or person who directly or beneficially owns securities of an applicant or permittee, or a person who has a controlling interest in an applicant or permittee or who has the ability to elect the majority of the board of directors of an applicant or permittee or otherwise control an applicant or permittee, other than a financial institution.”
• Financial backers means “an investor, mortgagee, bondholder, note holder, or other source of equity, capital or other assets other than a financial institution.”
• Financial institution means “a bank, a National banking association, a bank and trust company, a trust company, a savings and loan association, a building and loan association, a mutual savings bank, a credit union or a savings bank.”
• The non-refundable application fee for growers/processors is $10,000, and the initial permit fee for growers/processors is $200,000 (both payable with the Application).
• The non-refundable application fee for dispensaries is $5,000, and the initial permit fee for dispensaries is $30,000 per dispensary location, for up to $90,000 (both payable with the Application).
• A rejected Application would be returned to an applicant with the initial permit fee.
• DOH may reject an Application that is received after March 20, 2017 or without a U.S. Postal Form 3817, which is required as proof of an applicant’s mailing date.
• The DOH will post FAQs regarding the Applications on its website.

For more specific information regarding the application process contact Chris Raphaely, Nicole Martin or another member of Cozen O’Connor’s Cannabis Industry Team.

Marijuana is still classified as a Schedule I controlled substance by the U.S. Drug Enforcement Agency, and as such it remains a federal crime to grow, sell and/or use marijuana.  Any content contained herein is not intended to provide legal advice to assist with violation of any state or federal law.