Pennsylvania May Finally be on the Verge of Legalizing Cannabis

Adult-use cannabis may at long last arrive in Pennsylvania. Senate Bill 120, sponsored by Senator Dan Laughlin (R), Senator Sharif Street (D) and others, dropped today (July 10, 2025), and it provides for the legalization of cannabis for adult-use in Pennsylvania. The text of SB 120 can be found here. The Bill is comprehensive in scope, sweeps in medical marijuana, and appears to reflect years of learning from the current PA medical marijuana program and adult-use and medical programs in other states. Among its noteworthy provisions are the establishment of a standalone (not part of an agency) Cannabis Control Board that will have broad and specific powers to oversee cannabis and promulgate regulations that include, among other things, new permit types, including micro-cultivation and warehouse and distribution, and an emphasis on social equity. The law includes provisions relating to lab testing, labeling/marketing, penalties for underage cannabis possession, clarity regarding employer and employee liability relative to cannabis use in the workplace, and a framework for ensuring that communities that have been disproportionately impacted by the war on drugs have access to employment in the PA cannabis industry, including special provisions for small businesses. The law also provides for current cannabis operators to apply for continuation of their operations under the new regime, and for new applications to be granted as the Board determines need. A 6% sales tax would be applied to cannabis retail sales and an 8% excise tax would be paid by dispensaries. The act also contains a “clean slate” provision that would expunge cannabis from criminal history records. Importantly, SB 120 appears to allow for a seamless transition of the current medical only market to adult-use without disruption of existing operations.

A corresponding House bill is expected to drop shortly. We will update this blog as the legislation winds its way through.