Pennsylvania Lawmakers Approve Bill To Legalize Marijuana Just One Day After It Was Introduced

Just one day after Pennsylvania Democrats filed a much-anticipated bill to legalize marijuana with a novel model of state-run stores, a House committee has already approved the measure—with floor consideration now expected imminently in the face of criticism about how fast the proposal is advancing.

The legislation is being sponsored by Reps. Rick Krajewski (D) and Dan Frankel (D), who chairs the House Health Committee that took up the proposal on Monday, where it passed in a party-line vote of 14-12 with all Republican members in opposition.

The measure now moves to the House floor, where an initial vote is expected as soon as Tuesday.

“Right now, Pennsylvanians who use cannabis are either crossing state lines to purchase from other legal markets or buying from the illicit market,” Krajewski said at the hearing. “The reality is criminalization of cannabis does not work. It does not deter usage, it does not promote safety and it is not in the best interest of our commonwealth.”

“With legalization, we have the opportunity to rein in a market that is completely deregulated in terms of potency, content or labeling,” he said. “We can promote public health while bringing hundreds of millions of public dollars that can be directed to the communities hit hardest by past criminalization.”

Under the bill, adults 21 and older would be able to legally possess and buy cannabis from stores licensed and operated by the Liquor Control Board (LCB), which currently controls alcohol sales in the state.

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.

“By legalizing and regulating cannabis thoughtfully, we can avoid pitfalls that have marred roll outs in other states,” Frankel said in a press release. “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.”

The abrupt introduction and committee consideration has already elicited criticism from the GOP side of the aisle, with Rep. Charity Grimm Krupa (R), a member of the Health Committee, saying “it’s no secret that I stand in opposition to broadly legalized adult-use marijuana—but frankly, I’m appalled by the manner in which it’s being rammed through the committee and the legislature.”

“At this point, this vote isn’t just about marijuana. It’s about how we govern by scheduling a non-voting session on a Sunday to introduce a sweeping 173-page bill and then racing it through committee and towards the floor vote with barely 48 hours notice,” she said.

Frankel responded to the critique, saying “this has been a transparent process” that has “taken into consideration input from every potential stakeholder.”

“My door has been open to all those stakeholders on an ongoing basis for the past two years—the six hearings we had and an opportunity for the minority party to have to have a meeting to talk about this,” the chair said.

One member made a motion to table the legislation given the concerns about its expedited legislative pathway, but it failed in a 14-12 vote.

“We’ve discussed this legislation thoroughly. We’ve had six hearings on this,” Frankel said. “We need to move this conversation forward. Pennsylvanians are expecting movement on this as the only state in the in the region that does not have a legal market. I think there is an expectation that we move this process forward.”

GOP members also raised various concerns about the policy change itself, such as potential impaired driving and workplace intoxication.

“I know it comes as no surprise to you, Mr. Chair, that I oppose the bill for many reasons, and it’s not solely because of its intent,” Rep. Kathy Rapp (R), ranking member of the Health Committee, said. “To say I’m disappointed by the procedural handling of this bill is an understatement.”

“The timing was clearly planned and intentional. Based on our experience last session, I had higher hopes,” she said.

“While we may not agree on this issue, Mr. Chairman, I have to say I appreciated your thoughtful approach to analyzing such a divisive topic, and honestly thought the testifiers were very informative and did a great job,” Rapp acknowledged. “However, this hasty display we are faced with today, revealing a bill on a Sunday evening to push it out of the House only three days later, is the opposite of transparency.”

Under the bill, LCB would directly control the cannabis retail side of the industry under the measure, but it would also be responsible for licensing marijuana cultivation, processing, transportation and on-site consumption businesses that could be privately owned.

The legislation would specify that cannabis shops could not sell more than 42.5 grams of marijuana, which would be the possession limit, to an adult within a 24-hour period. Cannabis flower could not contain more than 25 percent THC, and edibles would be limited to five milligrams of THC per serving, with a maximum 25 milligrams total.

Adults who obtain a home cultivation permit from LCB would be able to grow up to two mature and two immature plants in a secure location at their residence for personal use.

Marijuana products sold at licensed shops would be subject to a 12 percent excise tax. Revenue from those taxes would be deposited in a Cannabis Revenue Fund, managed by the Department of Revenue (DOR).

That fund would be used to cover administrative costs within the various departments that have a hand in regulating the cannabis program, including the facilitation of expungements for people with prior marijuana convictions for activity that would be made legal under the law.

The remaining revenue would be distributed for a community reinvestment fund (50 percent), substance misuse treatment programs (10 percent), cannabis business development (5 percent), minority business development (2.5 percent) and grants to county courts that process expungements (2 percent).The rest would go into the state general fund.

The Administrative Office of Pennsylvania Courts would be tasked with overseeing cannabis expungements, providing courts with a list of eligible cases that must be automatically sealed within two years.

A Social and Economic Equity Advisory Committee would be established under the bill to “promote inclusion and participation in the regulated cannabis industry, including through an indirect cannabis business, by persons that may qualify to be a social and economic equity applicant.”

The committee would be responsible for a new Social and Economic Equity Loan and Grant Program that would “provide financial assistance to certified social and economic equity applicants, certified social and economic equity licensees and indirect cannabis businesses that meet the qualifications of a social and economic equity applicant.”

Eligible social and economic equity applicants are defined as those with a “household annual income below 200 percent of the Area Median Income in their county of residence,” and they’d also have to either have a minimum of 65 percent ownership by justice-impacted individuals or those who’ve spent five of the last 10 years in a designated historically impacted community.

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. It would also provide state-level protections, clarifying that residents who use cannabis in compliance with the law cannot be denied firearms rights.

The legislation would not permit local municipalities to bar cannabis retailers from operating within their jurisdictions.

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. While there’s evidently strong support within the Democratic caucus given the cosponsorship list, it’s expected to face steep resistance from Republicans, who control the Senate, and at least some Democrats.

For what it’s worth, a recent poll found that Pennsylvania voters say they favor a model where cannabis is sold by licensed private businesses, rather than through a system of state-run stores.

Gov. Josh Shapiro (D) has repeatedly called for adult-use marijuana legalization, including the reform in his last three budget requests. However, he hasn’t endorsed the specific idea of having a state-controlled model.

The first test for the new bill will be its consideration in the Health Committee on 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 recently that “this will be the bill that we will see,” referring to his state-run legalization plan, adding that he’s worked “hand-in-hand” with Democratic leadership.

“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.

Despite the disconnect with Frankel’s comments, Major said she thinks “we are the closest we have ever been, truly” to legalizing cannabis in the Commonwealth.

“No one’s bill right now is going to be the final version. The sooner we can get those conversations started, the better,” Kinkead said, adding that she and Major “are going to have to move something in May or early June.”

While Democrats control the House and governor’s office, they will still need to reach a deal with the GOP-controlled Senate to effectuate change. And in addition to the conflicting perspectives among pro-legalization legislators, another potential barrier to reform is exactly that political dynamic.

Senate Majority Leader Joe Pittman (R) said that while he sees a “path forward” for enacting regulations for separate gaming-related reform, “I’m not seeing consensus between the four caucuses and the governor collectively that [marijuana legalization] should be a priority.”

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. It did not advance, however.

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 argued that, beyond using any resulting tax revenue to fund day-to-day projects and public services, the state should earmark a portion of those tax dollars for a fund to “provide a sustainable source of prosperity that lasts for 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.

Polls have shown bipartisan support for legalization among voters, but the reform has consistently stalled in the legislature, owing in large part to GOP opposition. 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.

While Pennsylvania’s medical cannabis program was enacted nearly a decade ago, lawmakers say the measure, which now heads to the Senate, is necessary to improve testing compliance, product audits and lab inspections, among other aspects of the industry.

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 have also launched a new survey that invites legal marijuana businesses across the country to provide information about their operations to help the state better understand the cannabis industry as lawmakers consider enacting adult-use legalization this 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 it’s an issue of freedom and liberty. I mean, if folks want to smoke, they should be able to do so in a safe and legal way,” he said. “We should shut down the black market—and, by the way, every state around us is doing it. Pennsylvanians are driving to those other states and paying taxes in those 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 Put Marijuana Legalization In His Budget, But Top GOP Senator Remains Skeptical

Photo courtesy of Mike Latimer.

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