Pennsylvania Democrats have officially released a much-anticipated bill to legalize marijuana with a novel state-run regulatory model. And it’s already slated for an imminent House committee vote.
The new legislation is being sponsored by Reps. Rick Krajewski (D) and Dan Frankel (D), who chairs the House Health Committee that will be taking up the proposal on Monday.
“The time is now for Pennsylvania,” Krajewski said in a press release. “We have listened carefully to public health experts, criminal justice reformers, small business advocates and community leaders. 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.”
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. “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.”
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.
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.
Keep reading
You must be logged in to post a comment.