PA Update: Gov. Pushes For Legalization, Reform Bills, Fed Court Rules In Favor Of Weed Workers

Pennsylvania Gov. Josh Shapiro (D) has proposed legalizing and taxing recreational cannabis as part of his 2023-2024 budget request.

What Happened

The government budget, an estimated $188 million in annual cannabis revenue by 2028, proposes to impose a 20 percent tax “on the wholesale price of [cannabis] products sold through the regulated framework of the production and sales system, once legalized.”

"Assuming that sales begin on January 1, 2025, the budget estimates that the state would generate about $16 million in cannabis tax revenue that year, increasing to $64 million in 2026, $132.6 million in 2027, and $188 million in 2028," per Marijuana Moment, first news media outlet to report it.

The executive document does not include any proposed marijuana policy changes.

Adult-Use Cannabis Bills On The Table

Meanwhile, a PA measure is seeking to regulate cannabis. Sponsored by Rep. Dan Frankel and Rep. Donna Bullock, the bill would create "a legal and regulatory framework structured to control and regulate the cultivation, processing, transportation, distribution, delivery, and sale at retail of cannabis and cannabis products with the following central goals in mind: consumer safety, social justice, economic equity, prevention of substance use disorder, and revenue."

A co-sponsorship memo from the PA House seeks to sell cannabis in the state's liquor stores, restricting possession and use to adults 21 and older. Sponsored by Rep. David M. Delloso, HB1180 would allow private companies to sell cannabis across the state, permitting large corporations to take over the cannabis industry by putting profits before the well-being of communities. The legislation would also eliminate low-level cannabis convictions and allow people to grow up to six plants.

State legislators are also looking to allow farmers to grow medical marijuana. Reps. Melissa Shusterman and Ismail Smith-Wade-El recently revealed in a memo their intention to introduce a measure that would allow new producers to enter the space. Under the bill, farmers and other small agricultural businesses would have the opportunity to apply to grow and sell medical marijuana to growers and processors already operating across PA.

Weed Workers' Rights

A federal court in Pennsylvania ruled in favor of medical marijuana company FarmaceuticalRX's former delivery drivers, who claim in the lawsuit that the company (with operations in PA and OH) "misclassified them as independent contractors and denied overtime wages and they should have been considered full-time workers," per MjBizDaily. According to Law360, U.S. District Judge William Stickman denied the MMJ producer and its affiliates’ motion for dismissing claims filed under the Fair Labor Standards Act and Pennsylvania Minimum Wage Act.

FARMACEUTICALRX recently announced that it closed a $34 million senior secured term loan provided by Chicago Atlantic Real Estate Finance, Inc. REFI a commercial real estate finance company, and other institutional lenders.

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Photo: Courtesy Of Jonathan Rivera On Unsplash