The continuous operation of financially viable medical marijuana dispensaries is not something that everyone can afford to take for granted. There are millions of Americans who rely on medical marijuana to support their wellbeing. It can be used to help treat multiple sclerosis, Parkinson’s disease, chronic pain, and nausea or vomiting induced by cancer treatment—serious health issues. What happens when medical marijuana dispensaries lack the financial means to operate and are forced to close? How are Pennsylvania patients/consumers affected? These are questions that Pennsylvania’s Medical Marijuana Act (the MMA or the act) should help to avoid. Taking a few steps back, the goal of the MMA is to “provide a program of access to medical marijuana which balances the need of patients to have access to the latest treatments with the need to promote patient safety” and to “provide a safe and effective method of delivery of medical marijuana to patients.” See35 P.S. Section 10231.102. In connection with these policy goals, the MMA allows the Department of Health to issue permits to medical marijuana organizations (e.g., dispensaries) to authorize them to dispense medical marijuana.

Now, the act and its corresponding regulations prioritize ensuring that only viable companies can obtain dispensary permits and permit renewals. For example, as part of the initial permit application, the regulations require applicants to submit, under oath, “evidence that the applicant is responsible and capable of successfully establishing and operating a facility.” See Section 1141a.29(a)(9). Additionally, the Department of Health may only grant a permit to a dispensary if, among other requirements, “it is in the public interest to grant the permit” and “the applicant, including the financial backer or principal, is of good moral character and has the financial fitness necessary to operate.” See 35 P.S. Section 10231.603(a.1)(5)-(6). The regulations also note that the Department of Health may deny the issuance of a permit based on “failure or refusal to submit information or documentation requested by the department during the review process” or a “misrepresentation by an applicant of fact, or failure to disclose a material fact to the department during the review process.” These are important gatekeeping mechanisms that help protect patients from unworthy dispensaries. In short, dispensary permit holders who misrepresent their financial viability on a renewal application should lose their permit.