A Virginia House committee has delayed the consideration of a marijuana legalization bill passed by the Senate to allow supporters of two competing legal sale proposals who were approved on votes in their respective chambers more time to work out a compromise.
The sponsor of another House bill announced that both camps were actively working on a deal.
“We are working with Sen. “We’re working with Sen. Paul Krizek, (D), the sponsor of HB698 and chair of the House General Laws Committee. “To that end we would like a motion passed by the House for this week.”
The motion was approved without debate. Krizek, who was reached after the vote by Marijuana Moment, said that Thursday stakeholders will meet to discuss a bill of compromise. He said that the measure could be discussed as early as Friday by a Senate Committee, and next Tuesday by his House panel.
He said, “What we are looking for is consensus.” “We all want to be on the same page.”
The House of Delegates has passed and sent to the Senate a bill on legal sales. The measures are similar in many ways, but they differ in some important areas, such as licensing and launch dates, social equity and tax rates, and whether marijuana can be grown outside.
Marijuana Moment reported that marijuana advocates expect the Senate Rehabilitation and Social Services Committee will take up the compromise legislation at an hearing this week.
Chelsea Higgs Wise is the executive director of Marijuana Justice. She said, “I am really excited that a compromise bill will be introduced this week. It may even be heard at Senate Rehab Friday.” “I think that the ultimate goal is to reach a compromise.”
Wise, who says it is still unclear how the negotiations will unfold, expects the focus to fall on issues such as social justice, outdoor cultivation, and the date of legal sales. These are some of the most contentious points between the bills.
She noted that both parties were very firm in their stances on certain issues. Rouse, the Senate’s leader, is determined that everyone starts at the same time. And Del. Krizek wants to ensure that there is meaningful equity. I hope that we can please both customers and make it work for what we promised Virginia.”
In an interview, Krizek stated that the goal was to reach a deal as soon as possible rather than risking having to send legislation to a bipartisan conference committee at a later date in the session.
He said: “Certainly, the idea is that we are negotiating in order to come up a consensus bill which both the House of Representatives and the Senate could approve. This way we can avoid having to go into conference.” “The most crucial part for my caucus – the House caucus – is going to be making sure that the bill acknowledges the decades-long harm caused to African American communities due to the so-called drug war.”
Below are some key differences between the two bills in terms of how they approach regulated cannabis sales.
- Priority licensing House Bill would allow certain licensees to start earlier than other applicants. It would allow medical marijuana operators and up to 60 equity focused microbusinesses, as well as up to five hemp businesses, to start legal sales by January 1, 2025. Other operators would need to wait until July 20, 2025 in order to get a license. The Senate bill would, on the other hand, not allow any retailer group to get an early start in sales.
- Timing According to the House bill some retailers will be able open retail marijuana shops on January 1, 2025. Licensing of eligible businesses would begin in July this year. The licensing of other retailers would begin in July 2025. In the Senate bill, stores would be licensed as early as July this year. However, retail sales would not begin until January 1, 2025.
- Social Equity: Both Bills have provisions which provide some benefit to people who come from “historically economic disadvantaged areas”, that were disproportionately policed in the past for marijuana. The House measure, however, includes provisions that prioritize the licensing of those with previous cannabis convictions as well as family members. The House measure also provides $400,000 in startup capital as well as other business supports to each of thirty equity-owned microbusinesses. The medical marijuana providers will be required to provide these funds to the microbusinesses to be eligible for opening sales in January.
- Tax Rates: Under the House bill, marijuana would be taxed at up to 9 percent. This is split between state taxes and optional local taxes. The Senate bill would have a maximum rate of taxation of 17.5%, which would include a 12.5% state excise and a local tax of up to 3.5 % that can be imposed by municipalities.
- Outdoor cultivation. Under the House bill, outdoor grows would be completely banned. However, the Senate bill allows smaller cultivators to grow outside. Both bills require that larger grows be done indoors.
- Penalties: Since the Senate’s version was changed to include mandatory minimum penalties in certain cases, advocates for justice reform preferred the House Bill over the Senate bill. This provision was removed in the past. Both measures currently create new criminal offenses for marijuana-related activities, but the House Bill contains more restrictive language as well as more severe penalties in certain cases.
Krizek, despite the differences between supporters, told Marijuana Moment that he is optimistic about a possible deal.
“Sen. Rouse has the same goal as us, which is to fight the illegal cannabis market,” said he. “We’re on a good track. We are working toward that consensus.
Marijuana Moment sent multiple questions to Rouse’s office, but it never received a response.
Virginia has already made it legal for adults to use, possess and grow cannabis in limited quantities. This is the result of a Democrat proposal that was approved by legislators in 2021. After Republicans gained control of both the House of Representatives and the Governor’s Office later that same year, they blocked the required reenactment for retail sales. Since then, illegal stores have opened to meet the demand of consumers.
Jason Blanchette is the president of Virginia Cannabis Association. He told Marijuana Moment that he has been working on legalizing marijuana sales for almost two years. He feels that the reform is now closer than ever.
He said that the retail cannabis push “is in an excellent place” after Tuesday’s subcommittee meeting.
“I don’t believe there have been any lines in the sand.” “I think we’re in a great place right now,” he told supporters about the negotiations. “The stakeholders are trying to reach a consensus and I am very confident that we will achieve it.”
Even if a bill for legalization is passed by the legislature this session, it still has to be approved by Gov. Glenn Youngkin, a Republican who has mixed messages on legalization. The governor hasn’t explicitly stated that he will veto a bill legalizing retail marijuana sales, but he did indicate last month that he does not have “anyinterest” in doing so under the Democrat’s plans.
Youngkin, when he first was elected, said that he “was not against” categorically commercial sales.
JM Pedini is the development director and executive director of NORML’s Virginia Chapter. He told Marijuana Moment, that supporters need to create a plan that will be acceptable to Youngkin and GOP legislators as the negotiations about legal sales progress.
Pedini stated that he hoped the compromise would be able garner bipartisan backing. “A bill that is passed without Republican votes will be dead as soon as it reaches Gov. Youngkin’s desk.”
When asked about the possibility that the governor could veto a bill, Krizek replied that his job was to create the best legislation possible, and not worry about how he might be received by the governor.
He said: “I don’t write bills based on my opinion of what the governor will do.” “All I can really do is to try and craft the best possible legislation, hoping that it will be compelling enough for the governor to either sign it or…just allow it to become law.”
“We are in a very serious situation, where there is a $2 or $3 billion market for illegal cannabis. “We have the opportunity to change paradigms,” he said. “We can achieve equity and public safety together, I do not know that the Governor is against that.”
Krizek, however, said that if Youngkin does not veto the legal sales bill next year, he will push for it again.
He told Marijuana Moment, “I will keep bringing it back until we pass legislation that does what we are trying to achieve.”
A sales bill did advance through the Democratic-controlled Senate last session, but it stalled in committee in the House, which at the time had a GOP majority.
Marijuana tax revenue should fund education and housing, not police and prisons, voters say in a new poll
Photo by Philip Steffan.
The original Marijuana Moment article Virginia House and Senate leaders work to achieve marijuana sales legalization “compromise” first appeared.
