Thinking About Getting into the Medical Pot Business? Here’s What You Need to Know

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Vista Today
Allison Gilmer Vista TOday Chester County Business News
The PA Department of Health has released temporary regulations to guide the start of medical marijuana production and distribution.

Karen Murphy, the Pennsylvania Department of Health Secretary, has outlined the steps the state is taking to develop temporary regulations to implement the medical marijuana program, writes John George for Philadelphia Business Journal.

“Our vision is to have a high quality, efficient and compliant medical marijuana program for Pennsylvania residents with serious medical conditions as defined by Act 16,” said Murphy. She also emphasized that the entire process will be open to input from the public, stakeholders, and partners.

The first set of temporary regulations will focus on growers/processors so they can start production. The PDOH has already listed some of the requirements on its webpage including the significant funds required to enter the business as a grower/processor or dispenser.

In addition to an initial $10,000 and a $200,000 permit fee, growers/processors must prove $2 million in capital with $500,000 of that on deposit in a financial institution.

The hill is a little less steep for would-be medical pot dealers. Those applying for a dispensary permit will have to pay an initial $5,000 fee, then $30,000 for the permit, and provide proof of $150,000 in capital.

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PA Dept of Health Secretary Dr. Karen Murphy–photo via NewsWorks.org

Initial plans are for up to 25 growers/processors and up to 50 dispensaries, each of which cannot operate more than three locations with only five growers/processors allowed a dispensary permit as well. Everyone applying for permits will go through background checks and need to fulfill several requirements including training sessions.

The department plans to issue the rest of the temporary regulations for physicians, patients, caregivers, and laboratories sequentially by the end of the year. 

The entire program is expected to be up and running within 18 to 24 months.

The PDOH is also reviewing the 123 applications submitted for the newly created medical marijuana program director position and expects to fill the position by the middle of next month.

Read more about the plans at Philadelphia Business Journal here and here, and check out previous VISTA Today coverage of the subject here.

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