Pennsylvania Could Be 25th State to Legalize Adult-Use Cannabis Under New Bill

Pennsylvania could be the 25th state to legalize adult-use cannabis under legislation that a pair of bipartisan senators introduced on July 10.

Sens. Dan Laughlin, R-Erie, and Sharif Street, D-Philadelphia, who worked together on legalization bills in previous legislative sessions, officially filed their latest reform package: Senate Bill 120.

The 181-page legislation would allow adults 21 years and older to possess up to 30 grams of cannabis flower (roughly 1 ounce), 5 grams of cannabis concentrate or 1,000 milligrams of THC in an infused cannabis product.

S.B. 120 would also establish a Pennsylvania Cannabis Control Board (CCB) to oversee a licensed, regulated and taxed industry for commercial business establishments, including cultivation, processing, dispensing and transporting. The bill prioritizes an equitable framework while also merging oversight of both the existing medical and forthcoming adult-use programs. In addition, it addresses intoxicating hemp products.

“Adults should have the freedom to use cannabis responsibly, and Pennsylvania should have a legal system in place that ensures safety, accountability and fairness,” Laughlin said on Thursday. “This legislation delivers that while keeping marijuana out of the hands of kids.”

The legislation would require age verification for all purchases.

Although youth access is often cited as a concern among prohibitionists, a report recently released by the Washington State Liquor and Cannabis Board shows that licensed cannabis dispensaries were 95% compliant in age-gating purchases in 2024, compared to 88% for the tobacco industry, 83% for the vape industry and 77% for the liquor industry.

Laughlin and Street’s legislation also includes penalties for underage use and public consumption, bans marketing to children, requires product testing and labeling, and maintains employer rights to enforce drug-free workplace policies.

Street said S.B. 120 also focused on repairing the injustices of the drug war.

“This plan legalizes cannabis in a way that lifts up communities impacted by prohibition,” Street said. “It includes expungement of low-level offenses, creates real opportunities for small and minority-owned businesses and reinvests in neighborhoods most harmed by past enforcement.”

Moreover, the bill includes Clean Slate provisions to expunge nonviolent cannabis offenses and decriminalizes certain cannabis-related activities.

While existing medical cannabis operators could expand to an adult-use marketplace, the legislation creates a pathway for small businesses and those from disproportionately impacted communities to gain licensure with access to grants and low-interest loans through the Department of Community and Economic Development.

Under S.B. 120, there would be a 6% sales tax and an 8% excise tax imposed on cannabis purchases at dispensaries.

Tax revenue from adult-use cannabis sales would be dispersed as follows:

• 10% to municipalities with cannabis establishments;
• 10% to counties with cannabis establishments; and
• 80% to a Cannabis Regulation Fund, appropriated as follows:
  • 40% to the CCB for operations;
  • 15% to the CCB to establish programs to assist medical cannabis patients and caregivers with access and background checks;
  • 10% to the Department of Drug and Alcohol Programs for drug-abuse prevention and counseling;
  • 10% to the Pennsylvania Commission on Crime and Delinquency, for distribution to local police departments; and
  • 25% to “any other purpose specified under this act,” with the remaining money going to the state’s general fund to provide economic relief to the commonwealth.

According to Laughlin and Street, tax revenue will also be used for equity grants and workforce development.

“This is about justice, jobs and responsible regulation,” Street said.

The legislation also attracted co-sponsorship from Democratic Sens. Nikil Saval, John Kane, Timothy Kearney and Marty Flynn. That quartet signed onto the bill after Laughlin and Street circulated a co-sponsorship memo in February.

That said, it’s going to take more than one Senate Republican to get behind the legalization effort in the state’s upper chamber, where the GOP holds a 27-23 majority.

Laughlin and Street’s bipartisan push comes after Laughlin helped kill an adult-use legalization bill that House Democrats rammed through the lower chamber on a 102-101 party-line vote in early May. That legislation aimed to establish a state-run dispensary model where adult-use cannabis sales would coexist in state-licensed alcohol establishments.

That legislation died in the Senate Law and Justice Committee, which Laughlin chairs, a week later. “I’ve made it pretty crystal clear that I do not believe that the state store model that is included in House Bill 1200 has a path through the Senate, let alone through this committee,” he said at the time.

Laughlin has also pushed back on Democratic Gov. Josh Shapiro’s proposal to legalize adult-use cannabis through the state budget, calling into question the governor’s suggested tax rate on sales as being too high while also saying he thinks Shapiro needs to do more work to lead the way on reform amid a divided Legislature.

Although the commonwealth’s legalization path is not yet clear, the Pennsylvania Cannabis Coalition (PCC) commended Laughlin and Street for their continued leadership on reform. The PCC is a trade organization comprised of medical cannabis license holders and industry partners.

PCC Executive Director Meredith Buettner Schneider called S.B. 120 a “transformative step” for the state’s cannabis policy.

“The bill responsibly legalizes adult use, ensures equitable access and strengthens patient protections—laying the foundation for a safe, inclusive and well-regulated marketplace,” Buettner Schneider said in a statement provided to Cannabis Business Times. “It offers a comprehensive framework to end cannabis prohibition while prioritizing public safety, economic opportunity and community investment. These proposals are poised to create thousands of jobs, generate significant tax revenue and reinvest in Pennsylvania’s small businesses, farming communities, law enforcement and other critical public needs.”

In urging “swift, collaborative” action, the PCC called on Shapiro to bring together the administration, lawmakers and industry stakeholders to help advance an issue the governor has pushed for in recent budget cycles.

Under S.B. 120, the CCB would be required to adopt transitional regulations within six months of enactment, with Laughlin and Street expecting licensed dispensary sales to begin within 12 months.

“This bill is smart, fair and realistic,” Laughlin said. “It’s time Pennsylvania joined the growing number of states that are getting cannabis policy right.”