Last week, Democratic Representative Emily Kinkade and GOP Representative Aaron Kaufer filed a measure that would legalize the use of recreational cannabis by adults in the state of Pennsylvania. The measure, dubbed HB 2500, was cosponsored by 15 additional legislators in the House of Representatives.
The measure also places the state’s agriculture department in charge of the production and sale of medical cannabis and adult-use marijuana. The state legalized medical cannabis in 2016.
If approved, the legislation would permit the regulated sales of recreational cannabis to individuals 21 years of age and older, and adults would be allowed to purchase and possess up to 30 grams of cannabis. While it also permits medical cannabis patients to grow up to five marijuana plants at home, it doesn’t allow home growing of recreational marijuana.
The measure also contains provisions to make participation in the regulated marijuana industry by small businesses a priority. This includes businesses owned by minorities, women and veterans as well as companies in the rural parts of the state. In addition, the bill has made it compulsory for all advertising, labeling and packaging regulations for cannabis products to be followed. This is in an effort to prevent marketing to minors.
The bipartisan duo also included criminal justice reforms in the bill, which includes a policy that would provide relief for cannabis-related convictions. This includes resentencing, commutations and expungements.
A 5% excise tax and an 8% sales tax would also be levied on recreational marijuana sales, with 30% of tax revenue generated being allocated to the Cannabis Regulation Fund. The measure also apportions 10% of tax revenue to drug treatment offered by the Drug and Alcohol programs department, 15% to the Commission on Crime and Delinquency and 30% to the Cannabis Business Establishment Fund. Local governments with marijuana businesses in their jurisdiction would also receive 10% tax revenue, with the remainder being used to support the state’s medical cannabis program.
If the bill is approved, Pennsylvania will become the 25th state to legalize the recreational use of cannabis. An economic analysis conducted by FTI Consulting forecasts that the measure will help create about 30,000 employment opportunities in 12 months. The national consulting company also expects that the measure’s passage will also generate an additional $2.6 billion in GDP for Pennsylvania and more than $4 billion in economic output.
Earlier this year, Pennsylvania governor Josh Shapiro included marijuana legalization in his budget proposal, explaining that cannabis needed to be taxed and regulated responsibly.
Industry actors from within and outside the country, such as Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF), will be watching to see how this legalization bill progresses in Pennsylvania because it could broaden opportunities for entities interested in expanding their footprint beyond their current areas of operation.
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