Pennsylvania’s governor is not a secret. Josh Shapiro is pushing for his state’s legalization of adult-use marijuana after the medical cannabis industry had already achieved impressive sales figures. Pennsylvania Department of Health reported that the state had $1.7 Billion in MMJ Sales for 2024, and $7 Billion since the MMJ Program was launched in 2020.
These figures are very attractive. Medical cannabis operators fear their business could be destroyed by one of the proposed recreational programs.
Meredith Buettner Schneider said Pennsylvania Cannabis Coalition executive director, that under the leadership of Democrats in the Pennsylvania State House, a new policy is being implemented to allow cannabis distribution through the system operated by the government.
She explained that the state is responsible for selling liquor. Our state sells all the wine and liquor in Pennsylvania. They are also considering similar treatments for cannabis used by adults.
Democrats claim that a model run by the government would increase revenue for the state and prevent big companies from dominating the marketplace.
At the moment, 40 companies operate 186 dispensaries for medical marijuana. There are large MSOs such as Trulieve and Cresco Labs. Curaleaf, Verano and Curaleaf, and also smaller operators and local cultivators.
Buettner Schnieder says jobs is one of her biggest concerns when it comes to a state run model. She said, “This industry created more than 25,000 jobs that are family-sustaining in Pennsylvania. We cannot put any of them out of work.”
Luke Koval is a local grower and the founder of Gratitude Gardens.
We hope that it does not become a state-store model. He added, “We can create products for other people.” “… If we go through that model (store), you could not only eliminate 25,000 jobs but diminish a lot of potential for new job creation.”
NORML Pennsylvania also has a stance against it. “We’re against the state-store model. Theresa Nightingale from NORML’s Pittsburgh chapter said that the glass ceiling is for people of color, those in working-class families, or anyone else who wants to become an owner. Nightingale works as the Cresco Labs corporate social responsibility manager.
This type of consideration in legislation will also make the implementation of adult-use sale take longer, she believes.
Next, the next step is to introduce legislation. Nightingale said she heard that new legislation is about to drop on 4/20 – which isn’t necessarily a positive.
“I’m sick of it,” said the woman, who added that the public is tired of politicians swayed by the April media fad. Legalization does not have to happen. Legalization has been achieved without support from Democrats. Not from Republicans. “While the Republicans seem hostile and aggressive, it seems that the Democrats are apathetic.”
State-store models have not been adopted by states who have legalized the adult-use of alcohol. Pennsylvania will follow the model of its liquor industry where alcohol is controlled by and operated under unionized government workers. A 2013 American Economic Review study found that Pennsylvania had higher costs for alcohol stores and fewer shops per person than any other state.
In the same report, it is noted that privatizing the system would lower costs and provide more shops for citizens of the state. This report found that less stores lead to lower alcohol consumption. It is a legacy from prohibition.
A recent analysis by Spotlight PA reported that 26 companies spent over $1.6 million on lobbying efforts for cannabis reforms in Pennsylvania last year. MSOs were among the largest spenders, accounting for more than $800,000.