Pennsylvania Democrats officially unveiled a long-awaited bill legalizing marijuana, with a new state-run model of regulation. It’s also scheduled for a vote in a House committee soon.
Reps. Rick Krajewski, (D) and Dan Frankel are the sponsors of the new bill. They will present it to the House Health Committee on Monday.
In a recent press release, Krajewski stated that “the time for Pennsylvania is now”. We have carefully listened to experts in public health, reformers of criminal justice, advocates for small businesses and leaders from the community. Our bill reflects what we’ve learned—that we can and must legalize cannabis in a way that is safe, equitable and beneficial to all Pennsylvanians.”
The bill would allow adults over 21 to possess cannabis and purchase it from licensed stores operated by the Liquor Control Board, which controls the alcohol industry in California.
While there’s a competing bipartisan legalization measure that’s expected to be unveiled soon, this one already has 27 House Democrats signed on as cosponsors—more than one-fourth of the party’s caucus in the chamber.
Frankel stated that by legalizing cannabis and regulating it thoughtfully we could avoid the pitfalls which have plagued roll-outs in other States. “Our plan will create clear rules that protect consumers, educate the public, and ensure that Pennsylvania small businesses and taxpayers—not out-of-state corporations—benefit from the profits.”
Under the new measure, the LCB will control cannabis retail, as well as licensing businesses for marijuana processing, transport, and consumption on site.
A cannabis shop could only sell 42.5 grams to adults in 24 hours. Cannabis flower cannot contain more than 25% THC. Edibles are limited to 5 milligrams THC in each serving.
Adults with a home cultivation license from LCB can cultivate up to 2 mature and 2 immature plants for personal consumption in a secured location of their own residence.
The excise taxes on marijuana products in licensed stores would be 12 percent. Revenues from these taxes will be deposited into a Cannabis Revenue Fund managed by Department of Revenue.
The fund is intended to pay for the administrative costs of various departments who are involved in regulating cannabis, and facilitate expungements.
All remaining revenues would be used to fund a community fund (50%), treatment for substance abuse (10%), cannabis business growth (5%) and minority business expansion (2,5%). The rest would be deposited in the general state fund.
Administrative Office of Pennsylvania Courts is responsible for the oversight of cannabis expungements. It will provide courts a listing of all eligible cases which must be sealed in two years.
Under the bill, a Social and Economic Equity Advisory Committee will be created to “promote the inclusion and participation of persons who may be eligible to apply for social and equity in the regulated marijuana industry including by way of an indirect cannabis-related business.”
This committee will be in charge of the new Social and Economic Equity Loan and Grant Program, which “will provide financial assistance to social and equity applicants who are certified and licensed social and equity licensees and cannabis indirect businesses that qualify as social and equity applicants.”
The criteria for social equity applications are those that have “a household annual income less than 200 percent of Area Median Income in their county,” as well as having a minimum 65 percent share owned by individuals who have been impacted by the justice system, or have lived in an historically-impacted community at least five out of the 10 previous years.
The bill also contains rules around policies related to cannabis advertising, packaging and labeling—as well as requirements for businesses around ownership and a mandate to have a labor peace agreement in place for workers.
The largest challenge for the legislation going forward will likely come down to the proposal to have the state control cannabis sales—a regulatory model that exists in no other legal market in the U.S. Despite the fact that the Democratic Party has a large number of cosponsors, the legislation is expected to be met with stiff resistance by Republicans in the Senate as well as some Democrats.
A recent survey found that Pennsylvanians prefer a model in which cannabis is sold through licensed private businesses rather than a state-run system.
Gov. Josh Shapiro, a Democrat from New York City, has called repeatedly for the legalization of adult-use marijuana. He included this reform in three recent budget requests. He has not endorsed a specific state-controlled marijuana model.
First, it will be examined by the Health Committee Monday.
Key Pennsylvania lawmakers have already made clear that they’re at odds on the path forward for legalization—while a top Republican senator recently dismissed the idea that the reform is achievable at all this session.
Frankel for his part said, “This will be the legislation that we see,” in reference to his plan of state-run cannabis legalization. Frankel added that he has worked “hand-in hand” with Democratic leaders.
“There are zero votes for a state-store model in the Republican caucus,” Rep. Abby Major (R)—who is sponsoring another forthcoming legalization bill that envisions a traditional private sales model alongside Rep. Emily Kinkead (D)—said.
Major stated that despite Frankel’s comment, she feels “we are truly the closest to ever legalizing marijuana in Commonwealth”.
No one’s current bill is the final version. Kinkead stated that the sooner these conversations begin, “the better.” She added she and Major would have to do something by May or June.
Even though Democrats have control of the House, Governor’s Office and Senate, they still must reach an agreement with Republicans to bring about change. In addition to conflicting viewpoints among pro-legalization lawmakers, this political dynamic could be another barrier to reform.
Senate Majority leader Joe Pittman said that, while he saw a “path to forward” in enacting separate regulations related to gaming reforms, he “doesn’t see consensus among the four caucuses or the governor that I can identify.” [marijuana legalization] Priority is important.”
Regardless of which direction Pennsylvania lawmakers do—or don’t—go on marijuana legalization session, a survey released last week shows a majority of adults in the state support the reform—and opposition to the policy change has fallen by nearly 50 percent over the last decade.
Kinkead has made the case in another recent interview that legalizing cannabis in Pennsylvania will help the state mitigate public health and safety concerns associated with the illicit market, including the fact that unregulated products can be laced with fentanyl.
The lawmaker previously introduced a separate bipartisan marijuana legalization bill, alongside 15 other cosponsors, last September. However, it did not move forward.
Meanwhile, a Republican Pennsylvania senator recently called for the creation of a state “legacy” fund, using tax revenue from adult-use marijuana sales and gaming to make long-term investments in the Commonwealth’s economy.
The Senator said that in addition to funding day-today services and projects with the tax money, the State should set aside some of that tax money for “a source of sustainable prosperity for future generations”.
Pennsylvania House Speaker Joanna McClinton (D) recently said that Democrats are ready to pass a marijuana legalization bill this session, but that the party “will need Republican support” to get the job done—adding that it will be a “heavy lift.”
Another Democratic lawmaker said legislature is “substantially closer” to reaching a deal on marijuana legalization, and an initial vote on a bipartisan cannabis reform bill could come as early as this month.
The reform is stalled in part because of GOP opposition. Polls show that legalization has bipartisan support among voters. But not all Republican members are against the policy change—and one recently said she felt her party should seize the “opportunity to snatch” the issue from Democrats.
Separately in March, the Pennsylvania House approved a bill sponsored by Frankel that’s meant to strengthen safety standards and oversight of the state’s medical marijuana program as lawmakers work to advance adult-use legalization.
Pennsylvania’s medical marijuana program has been in place for nearly 10 years. However, legislators say that the bill, now headed to the Senate to be voted on, will improve compliance with testing, audits of products, and laboratory inspections amongst other industry aspects.
Meanwhile, Pennsylvania Democratic lawmakers recently introduced a bill that would allow farmers and other small agriculture operators to sell marijuana they cultivate to existing growers and and processors if the state moves to legalize adult-use cannabis.
Separately, an independent Pennsylvania agency is projecting more tax dollars to be generated from adult-use marijuana sales compared to what the governor’s office has estimated, although it expects significantly less overall revenue from cannabis legalization due to differing views on licensing fees.
Pennsylvania officials also have launched a survey inviting legal marijuana businesses in the United States to share information on their business operations. This will help Pennsylvania better understand the cannabis market as legislators consider adult-use legalization during this legislative session.
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Also, in a video interview released in March, the governor emphasized that the state is “losing out” to others that have already enacted adult-use legalization, while maintaining a policy that’s enriched the illicit market.
I think this is a matter of liberty and freedom. “I mean, people should be allowed to smoke in a legal and safe way if they want to,” said he. “We should shut down the black market—and, by the way, every state around us is doing it. Pennsylvanians pay their taxes and drive into other states.
Pennsylvania’s Republican attorney general recently said he wants to be a “voice for potential public safety risks” of enacting the governor’s proposal—though he said his office would be ready to enforce the new law if lawmakers did vote to pass it.
The state’s agriculture secretary separately told lawmakers that he’s fully confident that his department is in a “really good” position to oversee an adult-use marijuana program if lawmakers act.
Meanwhile, in February, top Pennsylvania police and health officials told lawmakers they are prepared to implement marijuana legalization if the legislature moves forward with the reform—and that they stand ready to work together as the details of legislation to achieve it are crafted.
Amid the growing calls for marijuana legalization in Pennsylvania, a GOP state senator said prohibition has been a “disaster,” and a regulated sales model for cannabis—similar to how alcohol and tobacco are handled—could serve as an effective alternative.
A Republican Pennsylvania senator also recently defended the push to legalize and regulate marijuana, calling it “the most conservative stance” on the issue.
Pennsylvania Governor Will Include Marijuana Legalization Within His Budget But A Top GOP Senator Is Still Skeptical
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