Appropriations panel reports substitute for HB 642 to establish regulated adult‑use cannabis market

The House Appropriations Committee on Feb. 12 reported House Bill 642, a substitute measure to establish a regulated recreational adult‑use cannabis market overseen by the Cannabis Control Authority.

The substitute presented by committee members lowers the proposed excise tax from 8 percent to 6 percent and applies the full 5.3 percent state retail sales and use tax to cannabis products consistent with other consumer goods. It also reduces the fee that pharmaceutical processors must pay to operate dual‑use dispensaries from $10,000,000 to $5,000,000.

Unidentified Speaker 6 outlined the substitute’s provisions and described the intent to create a framework for licensing and collection of taxes and fees. The committee voted to report the substitute, 16–6.

The action sends the substitute to the next stage of the legislative process; the transcript does not record additional floor amendments, earmarks, or an implementation date. Details about regulatory timelines, licensing schedules, projected revenue estimates, and expected administrative costs were not specified during the committee’s report.

Next steps: the bill as reported will be considered by the full House. No floor action or final enactment was recorded in the committee transcript.