Pennsylvania Lawmakers File Bill To Help Small Farmers Enter Marijuana Industry If The State Enacts Legalization

Pennsylvania Democratic lawmakers have 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.

As the legislature once again takes up the issue of marijuana legalization, Rep, Melissa Shusterman (D) and five colleagues filed the legislation on Thursday in a bid to ensure that the industry is inclusive to small farmers, creating a permitting process so they’re able to make inroads with larger operators.

“As more and more states legalize adult-use cannabis, it is only a matter of time before Pennsylvania does the same,” Shusterman said in a cosponsorship memo. “When adult-use cannabis is finally legalized in Pennsylvania, it is my belief that everyone should have accessible and equitable entry into the adult-use cannabis industry, including farmers and small enterprises.”

“Enabling local cultivation would allow Pennsylvania farmers and their communities to benefit from the legalization of adult-use cannabis. Moreover, this legislation would protect participation in the industry by farmers in the Commonwealth,” she said. “The legalization process must ensure PA’s farmers have fair access to this new market so that sales revenue and profits remain in PA.”

Whether the Pennsylvania legislature does legalize marijuana this session remains to be seen, with mixed opinions among Democratic and Republican leadership about the prospects of reform. Gov. Josh Shapiro (D) also included the policy change in his latest budget request.

But if prohibition is ended, the new bill would take a number of steps to provide for equitable access to industry participation.

The Department of Health would be responsible for creating rules and issuing farmer-grower permits to eligible individuals and entities, enabling them to “obtain seed and plant material from a grower/processor within this Commonwealth to grow, process or dispense adult-use cannabis in accordance with department regulations,” the bill text says.

In determining whether or not to grant a farmer-grower permit to an applicant, the department would need to take into account the regional population of the location where cannabis would be grown, access to public transportation in that area and “any other factors that the department deems relevant.”

The legislation also lays out certain requirements for farmer-grown permittees. For example, they would need to report to regulators on certain organizational changes to the operation, notify law enforcement about any incidences where cannabis was stolen and submit to announced and unannounced inspects.

To obtain a permit, there would be a $2,500 initial application fee. If approved, they would need to pay another $2,500 permit fee, which would need to be annually renewed for the same cost.

Marijuana products sold to existing growers and processors would be subject to a 1 percent tax on the gross receipts.

The bill would also amend the state’s current medical cannabis law, requiring the existing advisory board to provide “recommendations and findings as to whether to change, add or reduce the number of farmer-growers.”

Again, however, the legislation’s enactment is contingent on whether lawmakers pass a bill to legalize marijuana, which is yet to be seen.

On Tuesday, Pennsylvania House Speaker Joanna McClinton (D) 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.”

While polls have shown bipartisan support for legalization among voters, the policy change has consistently stalled in the legislature, owing in large part to GOP opposition. But not all Republican members are against the reform—and one recently said she felt her party should seize the “opportunity to snatch” the issue from Democrats.

Rep. Rick Krajewski (D)—who announced in December his intent to file a legalization measure alongside House Health Committee Chair Dan Frankel (D)—also recently said the policy would provide for “more responsible usage” of cannabis, compared to the status quo that’s left adults either buying from the illicit market or traveling across state lines to get regulated products.

Separately last month, 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 new measure, which now heads to the Senate, is necessary to improve testing compliance, product audits and lab inspections, among other aspects of the industry.

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Also, in a video interview released last month, 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.

Meanwhile, a new poll shows 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 as some legislators have promoted.

Ohio House Panel Amends Marijuana Bill With Changes To Tax Revenue, Licensing And Equity Provisions

Photo courtesy of California State Fair.