HARRISBURG — A Pennsylvania Senate panel has rejected a bill advanced by Democrats that would permit the sale of recreational cannabis to adults at state-owned stores.

State Sen. Dan Laughlin (R., Erie), leader of the committee, supports legalizing marijuana but said Tuesday the state store approach would unfairly shut out the private sector and small businesses, and create serious logistical hurdles and legal challenges.

“I made it pretty crystal clear that I do not believe that the state store model,” Laughlin said during the committee hearing.

The Law & Justice Committee voted 7-3 to reject the bill, with one Democrat joining all Republicans in rejecting the measure.

Supporters of the state House’s approach, including bill sponsors Reps. Dan Frankel (D., Allegheny) and Rick Krajewski (D., Philadelphia), say that it will prevent large, existing cannabis companies from dominating the industry, protecting consumers and public health.

Critics say the state already has a robust medical marijuana market that should be expanded, and that the state store model, which hasn’t been attempted in any other state, could lead to criminal liability for the commonwealth because cannabis is still federally illegal.

Last session, Laughlin introduced his own proposal to legalize cannabis alongside state Sen. Sharif Street (D., Philadelphia).

The bill that would have created a board to oversee the industry and approve sellers. It also would have allowed companies that are already licensed to sell medical cannabis — many of which are large and well-established — to start making recreational sales.

At least two Democrats on the panel said they support the Street-Laughlin bill, with one asking if the senator would offer it as an amendment to change the state House bill.

Laughlin responded that his measure is not ready for reintroduction.

This story will be updated.