Governor Shapiro aims to craft a competitive cannabis law in Pennsylvania
Harrisburg: A recent rally at the Pennsylvania Capitol highlighted the push for cannabis legalization. Governor Josh Shapiro met with dispensary owners from neighboring states to discuss how many customers were crossing into Pennsylvania to buy cannabis. The number? Over 60%!
Shapiro pointed out that while Pennsylvanians are buying cannabis, they’re paying taxes in other states. He believes it’s time for Pennsylvania to step up and create a competitive market.
This isn’t the first time Shapiro has supported legalizing recreational cannabis. He mentioned it in his budget address last year. However, despite some attempts, no significant legalization bill has moved forward yet. Still, public opinion seems to favor legalization.
With a new legislative session underway, advocates are hopeful. Shapiro’s budget has led to a projected decrease in surplus funds, and nobody wants to raise taxes. This could motivate Republicans in the Senate to consider a cannabis bill more seriously.
Kate Flessner, a spokesperson for Senate Majority Leader Joe Pittman, mentioned that any proposals would need thorough vetting before moving forward. It’s not a definite no, and at least one Republican senator has shown support for legalization.
House Democrats have generally been more open to cannabis legalization, but their efforts didn’t gain much traction last year. With a special election coming up, the dynamics could shift.
However, the real challenge lies in crafting a bill that addresses public health, social equity, and criminal justice concerns. Different lawmakers have varying priorities, making consensus tricky.
Pittman’s team emphasized the importance of community safety. Shapiro aims to keep tax revenue in Pennsylvania while promoting individual rights and freedoms.
Leaders in the Legislative Black Caucus want a bill that invests in communities affected by the war on drugs and supports minority entrepreneurs in the cannabis industry.
Some lawmakers are also concerned about public health impacts and how to manage rising cannabis consumption seen in other states.
Beau Kilmer, a drug policy researcher, noted that legalizing cannabis isn’t a simple yes or no decision. The details matter a lot. Lawmakers need to be clear about their goals.
Decisions on taxation and licensing can significantly affect product prices and market behavior. For instance, if the goal is to eliminate the illegal market quickly, fewer restrictions might be the way to go.
On the flip side, public health advocates might prefer more regulations to prevent price drops and control consumption levels.
Last year, Pennsylvania lawmakers learned from Canadian experts about their strict cannabis regulations, which resulted in fewer cannabis-related incidents compared to other regions.
Some Pennsylvania representatives are considering a bill that would limit cannabis sales to state liquor stores, aiming for a controlled approach.
Cherron Perry-Thomas, co-founder of the Diasporic Alliance for Cannabis Opportunities, emphasizes the need for legislation that creates opportunities for those impacted by drug laws.
She believes cannabis legislation is a chance to address past injustices, especially since Black individuals face harsher penalties for cannabis-related offenses.
Perry-Thomas is advocating for state resources to help minority entrepreneurs start businesses as the market opens. She wants to ensure these communities are prioritized.
Many states have tried social equity programs with mixed results. In Illinois, for example, entrepreneurs faced challenges due to a lack of support from state agencies.
Perry-Thomas suggests Pennsylvania can learn from these experiences by establishing a state-backed incubator program to assist small business owners before the market launches.
She also proposes that no new businesses should open until equity-focused businesses are up and running, along with low-interest loans for qualifying candidates.
Some lawmakers agree with her ideas, having heard from entrepreneurs in other states about their experiences with equity licensing.
However, Perry-Thomas is concerned that broader discussions about diversity and inclusion might influence decisions in Pennsylvania.
Rep. Napoleon Nelson, chair of the Pennsylvania Legislative Black Caucus, insists that any legalization bill must include provisions to help those affected by the war on drugs.
He also stresses the need for criminal justice reforms, including expungements for cannabis-related charges.
Nelson believes it’s crucial to address the impact of past cannabis laws on families and communities.
Lawmakers also face pressure from the cannabis lobby, which has been vocal about their preferences for a private retail market over a state store model.
Some industry advocates argue that a private market would create more opportunities for minority entrepreneurs and support social equity programs.
While there’s some agreement on the need for social equity, opinions differ on the best approach to achieve it.
Kilmer suggests that a state store model could help manage cannabis revenue and direct funds toward programs supporting entrepreneurs impacted by drug laws.
However, any proposal for a state store model may face resistance, as public sentiment generally leans against state-run liquor stores.
Rep. Emily Kinkead plans to reintroduce a cannabis bill that includes equity licensing and criminal justice reforms, aiming to address feedback from constituents.
Her bill will also cover product labeling and advertising regulations, ensuring clarity for businesses.
One aspect missing from Kinkead’s bill is a restriction on equity-qualifying business holders from selling their licenses, which Perry-Thomas believes is essential to prevent larger companies from dominating the market.
Existing medical marijuana businesses would be allowed to transition to recreational sales under Kinkead’s proposal.
Peter Marcus, a cannabis business owner, sees Pennsylvania as a promising market, especially with adult-use cannabis on the horizon.
He notes that other states are facing challenges due to market saturation, which has led to price drops affecting small businesses.
Kilmer believes that a state store model could help stabilize prices and ensure reliable funding for government programs.
Marcus supports a cautious approach to industry growth, emphasizing the importance of learning from past experiences to create a balanced marketplace.
Ultimately, Kilmer argues that starting with a state store model could allow for gradual adjustments based on the market’s performance.
