Pennsylvania Senate Approves Legislation to Allow All Medical Cannabis Growers to Sell Directly to Patients

Pennsylvania’s 2016 medical cannabis law mandates that only five of the state’s 25 grower/processor licensees can also receive a dispensary license, but legislation that cleared the state Senate this week would allow all of them to sell directly to patients.

Senate Bill 773 passed the Senate Sept. 20 in a 44-3 vote. The legislation would grant retail licenses to all the state’s grower/processors, allowing them to sell their wares directly to the state’s patient base.

Lawmakers have said that S.B. 773, which was introduced in June by Sen. Chris Gebhard, R-Lebanon County, aims to break up a retail market they claim is controlled by only a few companies, Penn Live reported.

Sen. Tim Kearney, D-Delaware County, said that Pennsylvania’s growers must “sell to the corporate buyers on their terms, or you close your shop,” according to the news outlet.

Senate Majority Leader Jay Costa, D-Allegheny County, has made similar claims, describing “a monopoly-type situation with out-of-state, multistate organizations coming in to the detriment of these independent grower/processors,” Penn Live reported.

With the Senate’s approval Wednesday, S.B. 773 now heads to the Pennsylvania House for consideration.

“There will certainly be vigorous discussions there on what shape this bill will come back to the Senate in,” said Sen. Dan Laughlin, R-Erie County, according to Penn Live.

Sen. Camera Bartolotta, R-Washington County, one of the three senators who voted against the legislation this week, cited its lack of home grow provisions, which House lawmakers could choose to add to the bill in that chamber, Penn Live reported.

“If this becomes a vehicle for adult use, I doubt that it would pass this chamber,” Laughlin said. “However, I think if they do add home-grown [cannabis] to this bill, it would strengthen the bill and I believe that we would be able to get it through this chamber as well.”

Costa indicated that advancing S.B 773 also gives lawmakers the opportunity to work toward adult-use legalization, according to Penn Live. The issue has repeatedly resurfaced in the Pennsylvania Legislature the past few years.

In the most recent attempt to reform the state’s cannabis policy, Laughlin and Sen. Sharif Street, D-Philadelphia County, filed Senate Bill 846 in July to legalize cannabis for adults 21 and older. The legislation, which also includes social equity and expungement provisions, was referred to the Law and Justice Committee, but no further action has been taken.

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Meanwhile, Gov. Josh Shapiro included adult-use cannabis legalization in the long-term financial projections within his budget request earlier this year, Penn Live reported. Specifically, his proposal suggests a 20% tax on the wholesale price of cannabis, which is projected to generate $189 million in annual tax revenue by the fourth year of adult-use sales.