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As soon as a business is granted a license, their initial permit (good for one year) is $200,000, with an annual renewal fee of $10,000. Once they have completed the application process and purchased their permit, the grower will have to operate under the supervision of the PA Department of Health as well as use an electronic inventory tracking system.

The application process to grow and process medical marijuana will open January 17, 2017, and the state will accept applications from February 20th through March 20th.

Dispensaries

For dispensaries, the Department reviewed a number of factors to establish placement of dispensaries across the state. A full population study was conducted over a six-month period. This study found the locations and number of patients suffering from severe medical conditions to establish the quantities of medical marijuana needed and where it should be accessed.

PA is taking applications over the next few months with the goal of having the system established by mid-2018. According to Health Secretary Karen Murphy, the permit applications for dispensaries will also be available January 17th. The first phase, beginning February 20th, will award 12 grower-processor permits and 27 dispensary licenses. The Health Department is dividing them up into six regions. The Southeastern region, where Philadelphia is located, will have the most dispensary licenses, with up to 10 dispensaries distributed throughout the eight counties in the region. Southwestern PA will house up to five dispensaries.

To receive a permit to open a dispensary, the initial application fee is $5,000, and applicants have to show that they have $150,000 on deposit with a financial institution. Once this is accomplished, these dispensaries will have to pay $30,000 for each location, with an annual renewal fee of $5,000. Like the growers, they also have to follow strict requirements and an electronic tracking system.

The Department of Health will write the regulations and monitor the activity of the dispensaries from growth to transport to possession, and even testing. The Department will even monitor advertising and marketing, which must be consistent with federal regulations. Medical marijuana is to be treated like any prescription drug. Aside from that, everyone involved in the process must be fingerprinted for criminal background checks before receiving a permit or ID card.

Regulations and Taxes

In Pennsylvania, the electronic inventory tracking system will be monitored by the state every day. The medical marijuana will be watched from the time it is a seed to the time it reaches a patient or caregiver. Statistics like daily sales, prices paid, defective medical marijuana, and plant waste will be monitored closely.