Pennsylvania

Equity Project State Briefing

Social Equity

Social Equity Definition / Criteria

While Pennsylvania does not have a formalized social equity program the law specifies the legislature’s intent to  promote diversity and the participation by diverse groups in the medical cannabis market. “Diverse groups” includes a disadvantaged business, minority-owned business, women-owned business, service-disabled veteran-owned small business or veteran-owned small business that has been certified by a third-party certifying organization. 

The list of diverse groups that are verified by the Department of General Services, Bureau of Diversity, Inclusion and Small Business Opportunities may be used by a medical marijuana organization to establish the eligibility of a diverse group.

Source:

35 Pa. Stat. Ann. § 10231.615. Subsection d. Diversity goals
74 Pa. Cons. Stat. Ann. § 303. Subsection (b)(3). Diverse business participation

Social Equity Provisions

While Pennsylvania does not have a formalized social equity program the law specifies the legislature’s intent to  promote diversity and the participation by diverse groups in the medical cannabis market. To further this goal, 10% of the points awarded in the evaluation of medical cannabis license applications are given to applicants based on their required diversity plans. A medical marijuana organization can demonstrate achievement of its diversity goals by employing diverse participants and transacting business with diverse groups. The list of diverse groups that are verified by the Department of General Services, Bureau of Diversity, Inclusion and Small Business Opportunities may be used by a medical marijuana organization to establish the eligibility of a diverse group.

As part of each application to renew a permit submitted to the Department, a medical marijuana organization must include information on its efforts to meet the diversity goals of the law and the effectiveness of its diversity plan. The report must include information regarding the following:

   (1)  Representation of diverse participants in the medical marijuana organization’s workforce.

   (2)  Efforts to reach out to and recruit diverse participants for employment, including for executive and managerial positions. (3) Employee retention efforts.

 (4) A list of all contracts entered into or transactions conducted by the medical marijuana organization for goods or services with diverse groups.

In addition to the diversity goals set for businesses the department will implement policies to ensure: (1) that diverse groups are accorded equal opportunity in the permitting process; and (2 )that permittees promote the participation of diverse groups in their operations by affording equal access to employment opportunities.

Additionally, the department will: 

(1) Allocate appropriate staff of the Department to assist medical marijuana organizations in fostering the involvement of diverse participants and diverse groups in their operations.

(2) Provide enhanced publicity of permitting opportunities and information to assist diverse participants and diverse groups in learning how to apply for permits to be issued under the act and this part.

(3) Compile, maintain and make available to medical marijuana organizations lists of diverse participants and diverse groups for the purpose of encouraging medical marijuana organizations to provide employment and contracting opportunities consistent with the act.

Source:

35 Pa. Stat. Ann. § 10231.615. Diversity goals
28 Pa. Code § 1141.32. Subsection c. Diversity goals

Fee Waivers and Reductions

  • Fee Waivers / Reductions:
No

Pennsylvania does not offer fee waivers or reductions to support medical cannabis licensees who have been disproportionately harmed by cannabis prohibition or other diverse groups.

Other Financial Support for Social Equity Applicants and Licensees

Pennsylvania does not offer state level funding to support medical cannabis licensees who have been disproportionately harmed by cannabis prohibition or other diverse groups.

License Priorities and Set Asides

  • License Priorities / Set Asides:
Yes

While Pennsylvania does not reserve any specific number of licenses for individuals impacted by the war on drugs, 10% of the points awarded in the evaluation of medical cannabis license applications are given to applicants based on their required diversity plans.

Source:

Pennsylvania Department of Health| Medical Marijuana Organization Permit Application. Scoring Rubric

Other Licensing Provisions

License Caps

  • License Caps:
Yes

Pennsylvania is a limited license state and has medical use licensing caps. The Department will not initially issue more than 25 grower/processor permits and 50 dispensary permits.

Source:

28 Pa. Code § 1141.23. Subsections 1 and 2. Limitation on number of permits

Application Selection Process

  • Selection System:
Merit

Pennsylvania distributes medical cannabis licenses through a merit system.

Source:

28 Pa. Code § 1141.33. Subsection (a). Review of initial permit applications

Felony Disqualification on Ownership

  • Ownership Exclusion for Felony Convictions:
Yes
  • Exemption for Cannabis Offenses:
No

Pennsylvania medical use framework disqualifies applicants for cannabis licensure on the basis of certain convictions. Potential licensees. financial backers, principals and employees will be disqualified from licensure if they have been convicted of any criminal offense related to the manufacture, delivery or possession with intent to manufacture or deliver a controlled substance.  However, individuals who have completed their sentence at least 10 years prior to the application are exempt from this rule.

Source:

35 Pa. Stat. Ann. § 10231.614. Convictions prohibited
28 Pa. Code § 1141.31. Background checks. Subsection (a)

Employee Criminal Records

  • Conviction Restrictions for Employees:
Yes
  • Exemption for Cannabis Offenses:
Yes

Pennsylvania’s medical sector has restrictions disqualifying potential employees with certain convictions. Potential financial backers, principals and employees will be disqualified if they have been convicted of any criminal offense related to the manufacture, delivery or possession with intent to manufacture or deliver a controlled substance.  However, individuals who have completed their sentence at least 10 years prior to the application are exempt from this rule.

Source:

35 Pa. Stat. Ann. § 10231.614. Convictions prohibited
28 Pa. Code § 1141.31. Background checks. Subsection (a)

Availability of Expungements

  • Expungements:
Yes (Misdemeanor Convictions), Automatic

In Pennsylvania certain misdemeanors can be sealed after a certain amount of time passes since the conviction without subsequent convictions. This process is automated under the state’s clean slate program. There are no avenues of relief for felony convictions and no provisions specific to cannabis or drug possession. However, the Board of Pardons (BOP) has established an expedited review program for non-violent marijuana-specific convictions.

Source:

18 Pa. Cons. Stat. Ann. § 9122. Expungement
18 Pa. Cons. Stat. Ann. § 9122.2. Clean slate limited access
Pennsylvania Board of Pardons Expedited Review Program (Non-Violent Marijuana-Specific Convictions). Retrieved Janauray 13 2022
Clean slate, expungement and limited access. Retrieved Janauray 13 2022