All 25 of Pennsylvania’s medical cannabis grower/processor licensees will be able to pursue retail licenses and become vertically integrated businesses under legislation that Gov. Josh Shapiro signed into law last week.
Shapiro announced Dec. 14 that he signed Senate Bill 773, which amends Pennsylvania’s 2016 medical cannabis law to remove provisions that formerly allowed only five grower/processor licensees to obtain retail licenses.
Lawmakers have said that the state’s limit on vertically integrated operators has established a medical cannabis retail market controlled by only a few companies.
S.B. 773, introduced in June by Sen. Chris Gebhard, R-Lebanon County, passed the Senate, 44-3, in September. The House approved an amended version of the legislation last month in a 114-89 vote.
House lawmakers’ changes included adding provisions to S.B. 773 that allow independent dispensaries to apply for cultivation licenses, as well as language that reduces the number of dispensary licenses that independent growers/processors can receive from two to one.
Gebhard expressed disappointment with the House’s license limitations.
“That’s certainly frustrating to us because we did a lot of market research and calculations in terms of what we determined should be two permits versus one,” he said, adding that the change puts prospective grower/retailers “in a very difficult position long term to compete in the marketplace.”
Nonetheless, the Senate concurred on the House version of S.B. 773 Dec. 12, sending the legislation to Shapiro.
With the governor’s ink, all of Pennsylvania’s independent medical cannabis grower/processors will be able to apply for retail licenses, and all independent dispensaries may apply for licenses to grow and manufacture their own cannabis products.
To further address what lawmakers see as a need to break up the market, S.B. 773 prohibits grower/processors and dispensaries from transferring their licenses to other entities for a period of time.
