The Pennsylvania House Committee has approved a bill passed by the Senate that allows all licensed medical marijuana processors to directly sell their cannabis products to patients. An amendment was also approved to allow independent growers and dispensaries expand their operations.
On Monday, the House Health Committee approved the bill from Sen. Chris Gebhard’s (R) Senate about a month after the GOP-controlled Senate.
Pennsylvania’s medical cannabis law states that currently, only 25 businesses are eligible to be licensed as marijuana growers and processors. Only five of these licensees may sell directly to patients via vertically integrated dispensaries.
This has created a quasi-monopoly, giving select operators from out of state dominance in the industry. Supporters say that allowing independent growers in the state to vertically combine is a partial solution.
The original statute made it clear that vertically integrated business would be limited. Rep. Dan Frankel, who chairs the committee, said before the vote that it hasn’t turned out this way. We’ve instead seen a dramatic consolidation in the industry. Many of the companies who make medical marijuana now own retail stores that distribute these products. This has tipped the scales against those who make products but don’t have dispensaries and can’t get shelf space to sell their medication.
Before voting to pass the bill, the committee adopted an amendment that reduced the number of permits which could be issued, and added new restrictions regarding the ability of business owners to sell their permits.
Pennsylvania is yet to legalize adult-use marijuana, but there are growing expectations that it will follow other states in the region by allowing recreational sales. As the anticipation for the policy change grows, some businesses are feeling the strain. This is especially true as wholesale marijuana prices continue to drop and as multi-state operators continue acquiring smaller businesses.
Some lawmakers have suggested that the bill could be used as a vehicle to introduce additional reforms. This would include the legalization of cannabis for adults or allowing medical marijuana patients the right to grow their own plants.
Rep. Kathy Rapp, a Republican member of the Health Committee , said on Tuesday in a release that she had “some serious concerns” with the bill, despite voting in favor.
She said: “First, although this bill is marketed as a small business bill, it will certainly help independent growers/processors that are struggling to sell to dispensaries. However, this does not create a market,” she added. Second, why don’t we require these entities to open dispensaries in areas where none exist? What are we achieving if these new dispensaries appear in concentrated markets such as Philadelphia and Pittsburgh?
“Finally,” says the bill, “there will only be a restriction of one or two years on transactions involving a change in control. She said that big conglomerates would try to control these permits. I feel that this bill should be extensively debated in the House before it is ready to become law.
The Pennsylvania House Health Subcommittee on Health Care will meet on Wednesday to hold an meeting for informational purposes. Experts will speak about the legalization of adult-use marijuana. As legislators map out a reform path, the panel’s chair is considering incorporating a model for state-run cannabis sale.
The new, narrow Democratic majority this session in the House and Gov. Josh Shapiro, The prospects for legalization in Pennsylvania improved. But there is still a question as to how the GOP controlled Senate would approach reform if they received a bill from the other chamber.
As a result, more Republican Senators are now on board. Sens. Dan Laughlin and Sharif Street, for example.
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Separate bills have been filed by the House to legalize cannabis sales in state-run stores, and to allow farmers and small agricultural businesses to grow cannabis after adult-use sales become possible.
The House also approved earlier this month a tax reform bill that contains language providing state-level relief for medical marijuana businesses, as they continue struggling under federal financial barriers. Republicans, who normally support tax cuts, were outraged by the reform. They viewed it as a Democratic giveaway of money to the cannabis industry.
Former Gov. Former Gov.
At a conference held last month, black lawmakers discussed separately the need to make equity considerations the core of any marijuana legalization plans.
Shapiro supports cannabis reform, and has proposed legalizing and taxing adult-use marijuana in his budget request for 2023-2024.
Laughlin also wrote a letter in February to the state’s law enforcement, urging them to take action to protect the gun rights of cannabis users and medical marijuana patients in light of a recent federal court ruling.
Lawmakers and Advocates Celebrate Marijuana Reform Legacies Of Retiring Representative Blumenauer, Pledge To Carry On His Work
Photo by Mike Latimer.
The article Pennsylvania House Committee approves Senate-passed bill to allow medical marijuana growers to sell directly to patients first appeared on Marijuana moment.
