A Virginia House committee approved, after a series of negotiations early Thursday morning by stakeholder groups, a revised “compromise version” of legislation that would legalize and regulate the retail sale marijuana in Virginia. Now, supporters hope to pass the bill in both chambers and present it to the governor. Glenn Youngkin, a Republican, has stated that he does not want to sign cannabis commerce legislation.
On a vote of 12-10, the House General Laws Committee approved SB 448 as amended. The members adopted substitute language to try and bridge the remaining gaps between the original bill introduced by Sen. Aaron Rouse, (D), as well as a separate House measure that was sponsored by Del. Paul Krizek (D).
Krizek, speaking to the House General Laws Committee Thursday, said that “Sen. Rouse and I immediately began working with stakeholders to harmonize. There were many areas where there was agreement. These included public safety, public healthcare, enforcement, local land-use referendums, and regulatory oversight.
Krizek added, “We addressed three policy areas that were different between the bills.” The bills have been aligned thanks to the creative and diligent work of the team. They were: the timing for the market, the canopy size, and the way it is characterized.
On Friday, the Senate Rehabilitation and Social Services Committee will take up the House Bill, HB 698. Members are expected to align that measure with the new compromise.
Retail stores would not open before May 1, 2025 under the new compromise legislation, but the licensing process would start in September this year.
The new start date of May 2025 “will be the exact same for all” unlike Krizek’s House proposal that would have allowed certain businesses to start retail sales before others.
Krizek’s proposal would allow existing medical marijuana businesses to start legal sales as early as January 1, 2025. He also allowed up to 60 microbusinesses that were equity-focused to do so. Licensing was then opened up to all other businesses in the following year. Critics said, however, that this approach would allow certain businesses to unfairly control the market.
The amended bill would tax retail sales of cannabis at around 9 percent, which includes a state tax of 4.5 percent and a local tax up to 4.5 percent that can be imposed by local governments. The Senate bill taxed cannabis products up to 17.5%.
The compromise regulates the size of commercial marijuana growers, based on square footage instead of individual plant counts, as originally specified in the Senate bill. The compromise proposal, unlike the House bill which would have prohibited outdoor growing entirely, allows smaller-scale growers to cultivate outdoors. The larger operators would only be allowed to grow indoors.
In order to address the issue of equity, a program would be set up that would grant licenses in part based on personal histories. This would help repair damage caused by the drug war.
At least two-thirds of eligible applicants must own and control the entity. This includes people with previous cannabis misdemeanors or convictions, their family members, veterans, people who have lived in “historically economically depressed communities” for at least three years, people who attended school in these areas, and people who received federal Pell grants or attended a university or college where at least 30% of students qualify for Pell grants.
Microbusinesses are also eligible for additional assistance, such as a partial waiver on application and licensing costs as well as administrative and technical support.
The senator did not attend the hearing of the House committee, even though the substitute had amended Rouse’s bill. Marijuana Moment has repeatedly asked his office for comments in recent weeks, but it has not yet responded.
“Sen. Rouse and I were happy to announce that the Senate, House and Governor are close to sending legislation that will create a retail cannabis market in an extremely responsible and thoughtful manner,” Krizek stated before the committee’s vote. We have to act now because the illicit $3 billion market is a problem. Virginians deserve a product that is safe, tested, and taxed.
At least two groups who have occasionally clashed in recent months supported the compromise bill.
Greg Habeeb is a former Virginia legislator and lobbyist for the Virginia Cannabis Association, which represents small businesses, hemp producers, and other stakeholders. He described the compromise as the “fair way” to go about it.
He said, “There is equal access.” “This protects small businesses and Virginia farmers. It ensures that there are protections in place on the market to make sure it is properly regulated.”
Chelsea Higgs Wise is the executive director of Marijuana Justice. She said that the group supports the revised bill because it “directly supports those who have been affected by marijuana enforcement previously.”
Wise stated, “We are really excited to have been able to reach a consensus and I thank all parties for their hardwork on this.”
The compromise bill is not liked by everyone. JM Pedini is the executive director and development director of NORML’s Virginia Chapter. He did not attend the hearing, but told Marijuana Moment that he was disappointed with the new bill, which pushes back the legal sale date.
A day earlier, Krizek had told reporters that the compromise bill was expected to open in March . This has been delayed by two more months.
Pedini stated that it was unfortunate to have to wait yet another year before Virginians can begin retail sales. There is no industry without customers, but consumers are told to wait in line as business interests take precedence over theirs. Businesses that need more time are purportedly prioritizing themselves.
“I agree” with Del. “Krizek,” they continued. It is time for Virginians to have access to cannabis which is legal and regulated to ensure consumer safety. But this time should be 2024 and not 2025.
Pedini noted that some of NORML’s suggested fixes for earlier versions of legislation were included in this latest bill. These include amendments to remove the penalties for homemade edibles, and lawful possession.
According to Marijuana Moment’s draft, this is what the latest version SB448 will do:
- Retail sales will not start until May 1, 2025, which is later than the March date that proponents had predicted in the revised bill. It’s also later than the January date of the measures passed by the House and Senate earlier in this session.
- Adults will be allowed to buy up to 2.5 ounces in one transaction or an equivalent amount of cannabis products, as determined by the regulators.
- Retail sales of cannabis products would be subject to a state tax of 4.5 %. Local governments could also levy a tax up to 4.5 %.
- Virginia Cannabis Control Authority will oversee the licensing and regulation for this new industry. The board of directors of the Virginia Cannabis Control Authority would be able to regulate possession, sale and distribution of marijuana, as well as testing.
- Local governments can ban marijuana establishments but only after voters approve an opt out referendum.
- The locations of marijuana retailers cannot be located within 1,000 feet of each other.
- Cultivators will be regulated based on the amount of space they dedicate to marijuana cultivation (also known as canopy size) rather than how many plants they actually grow.
- Indoor and outdoor marijuana growing would be permitted, but only those in the lower tiers – with smaller canopy sizes – could grow plants outdoors. The larger growers will need to cultivate their plants indoors. Indoor cultivation would include secure greenhouses.
- Only face-to-face, direct transactions will be allowed. The bill would ban the use of any other means, including vending machines and drive-through windows. It also prohibits internet-based platforms, delivery services, and online sales platforms.
- If you are a medical marijuana provider and want to enter the adult-use market, you can apply for up to five more retail outlets.
- The maximum serving size would be 10 milligrams of THC. This means that no more than 100mg THC can be contained in a package.
- A person cannot hold or be granted more than five licenses in total, excluding transporter’s licenses.
- People who have been convicted of felonies, or crimes that involve moral turpitude, within the last seven years, would not be eligible to apply for a license, nor would employees of sheriffs’ or police departments, if they are responsible for enforcing the penal laws, traffic laws, or motor vehicle law of the Commonwealth.
- The equity-focused program will grant licenses for entities that are at least two thirds owned and controlled by the eligible applicants. This includes people with previous cannabis misdemeanors and their family members, veterans, people who have lived in “historically economically challenged communities” at least three out of the last five years, people who attended school in these areas, and people who received federal Pell grants or attended colleges or universities where at least 30% of students qualify for Pell grants.
- A historically economically disadvantaged area is one where marijuana possession offences have been at or above the state average from 2009 to 2019.
- The tax revenue generated by the program will first cover the cost of administering and enforcing California’s cannabis law. The remaining 60 percent will be used to support the microbusinesses, 25 percent for substance abuse disorder treatment and prevention and 10 percent for pre-K programs.
- Adults can also share up 2.5 ounces of marijuana with other adults, without monetary compensation. However, gray-market “gifting”, of marijuana in conjunction with another transaction is punishable as Class 2 misdemeanors and Class 1 misdemeanors for second and subsequent offenses.
- Other criminal penalties will be introduced. Selling or giving marijuana, or marijuana paraphernalia, to anyone under 21 would be punishable with up to one year in prison and a maximum fine of $2,500. The same would apply to selling cannabis to anyone who is reasonably believed to be drunk. Advertising the sale of paraphernalia containing marijuana to those under 21 is also a Class 1 Misdemeanor.
- A Class 1 misdemeanor would be committed if you knew that someone under the age of 21 was obtaining marijuana for your benefit.
- Under 21s who use or possess marijuana or try to get it would face a civil fine of up to $25, and be ordered to enroll in a treatment program for substance abuse disorders.
- Illegal production or cultivation of marijuana (excluding legal homegrown) would be a Class 6-felony punishable by up five years in prison and $2,500 fine.
- Homegrown marijuana could be processed into edibles. However, the use of butane or other volatile solvents is punishable as Class 1 misdemeanor.
Supporters are motivated to move the bill forward. If both houses pass different legal sales bills, then the issue will be referred to a bi-cameral conference committee. This is a process which can often be hurried along and is even less transparent than normal lawmaking.
“We’ve all had the situation where a massive conference report–that never went through committees, that the public never saw–shows up on the floor on the last day of session, and you have to vote on that,” Habeeb, the lawmaker-turned-lobbyist said at Thursday’s hearing. “This is the transparentest way to pass a law like this.”
VCA President Jason Blanchette said to Marijuana Moment, the group was “extremely pleased to have been in a position to reach consensus prior to conference on such a significant piece of legislation.”
He said, “Survive is the goal and we will fight another day.”
The governor has not explicitly said he’ll veto a retail marijuana bill, but he did signal last month that he a data-google-interstitial=”false” href=”https://www.marijuanamoment.net/gop-virginia Governor does not have any interest in legalizing marijuana sales under new democrat led bills/” rel=”noopener” target=”_blank>doesn’t 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.
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 necessary reenactment for retail sales. Since then, illegal stores have opened to meet the demand of consumers.
After last year’s election, Democrats now control both chambers in the legislature.
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.
Republican Congressman Files Bill Directing VA to Update Lawmakers about Psychedelic Access for Veterans
The article Compromise bill to legalize marijuana sales in Virginia passes out of House committee first appeared on Marijuana moment.
