PA Auditor General Finds Oversight Gaps in State's Medical Marijuana Program

First-ever audit of Pennsylvania's Department of Health cannabis oversight cites inconsistent inspections and weak approval processes, with nine recommendations for fixes.

FILE — statehouse · B.D. Gilfry / CC BY-SA 2.0

Pennsylvania Auditor General Timothy L. DeFoor has released the first performance audit of the state's Department of Health oversight of its medical marijuana program, according to WPXI.

The audit examined how the department handled inspections, complaints and enforcement actions against growers, processors and dispensaries during calendar year 2024, WPXI reported. It is the first review of the program's regulatory mechanisms since Pennsylvania's medical marijuana law took effect in 2016.

Two Core Findings

Auditors concluded the Department of Health lacked adequate internal controls to ensure inspections and enforcement actions were carried out consistently, WPXI reported. The audit also found the department's approval processes for complaint conclusions and correction plans were inadequate, weakening state supervision of licensed operators.

"We found a lack of internal controls and inadequate approval processes which can ultimately reduce the effectiveness of DOH's oversight of the program," DeFoor said, according to WPXI. "Inconsistent procedures may allow issues to go uncorrected and lead to unsafe conditions within facilities or products. Hundreds of thousands of Pennsylvanians rely on the program to be safe, secure and trustworthy, so it's up to these regulators to ensure proper procedures are in place."

Nine Recommendations

The report issued nine specific recommendations, including that the department adopt and consistently apply a standardized inspection checklist, finalize and approve standard operating procedures for both inspections and complaints, and implement formal documentation across all monitoring activities, per WPXI's account of the audit.

WPXI reported that the Department of Health agreed with the audit's findings and has already begun implementing some changes. DeFoor credited the department's cooperation. "To their credit, DOH agreed with our findings and they are already working to implement some of our recommendations," he said, according to WPXI. "I'd like to sincerely thank the department for their cooperation throughout this audit process. We're grateful that they have already taken steps to ensure the program continues to serve those who need it most. That's exactly how our audits are supposed to function—we audit and evaluate and the organization being audited then implements our recommendations and Pennsylvanians benefit."

A Growing, Consolidating Market

The audit lands as Pennsylvania's medical marijuana industry continues to expand and consolidate. State licensing records show 181 open retail dispensaries currently operating in the commonwealth, though the database lists no comprehensive figures for cultivation or manufacturing facility counts, pending applications, or year-to-date revenue.

Recent related coverage tracked by Cannabis Newz shows a wave of ownership and store activity: Cresco Labs acquired nine Pennsylvania dispensaries from PharmaCann, according to Cannabis Business Times, while Vireo Growth completed its own dispensary license acquisition in the state. Green Thumb opened a new RISE dispensary in Hanover and Jushi Holdings relocated a Beyond Hello location in Belle Vernon, per separate Cannabis Business Times and Manila Times reports in our database.

Separately, state lawmakers have introduced a bill that would direct new medical marijuana licenses toward small and diverse businesses, Marijuana Moment reported, suggesting continued legislative interest in reshaping who holds licenses even as DeFoor's office scrutinizes how existing operators are monitored.

What to Watch

It remains unclear from the audit summary how quickly the Department of Health will finalize the standardized checklists and standard operating procedures DeFoor's office recommended, or how the agency will measure compliance going forward. WPXI's report does not specify a timeline for full implementation of the nine recommendations.

The audit's findings on inconsistent state oversight arrive alongside a string of unrelated criminal cases involving large-scale marijuana trafficking in Pennsylvania — including a Montgomery County operation that authorities say involved 250 pounds of marijuana and cocaine, per NBC10 Philadelphia, and a Pennsylvania Turnpike stop where state police seized more than 700 pounds of marijuana valued at over $3 million, according to CBS News. Those cases involve illicit activity outside the regulated medical program and are not tied to the audit, but they underscore the broader enforcement landscape state regulators operate within.

Whether the Department of Health's promised changes translate into measurably more consistent inspections will likely depend on future compliance reviews, which the auditor general's office has not yet scheduled, based on available reporting.