“Fast tracking the existing large medical marijuana corporations will ring a bell which cannot be unrung to the delight of their investors.”
By Chelsea Higgs Wise, Marijuana Justice
You could be forgiven if you feel like you’ve seen this legislation before. The General Assembly is examining various proposals to implement retail sales of marijuana for adults 21 years and older, just as it did in 2023.
The issue is whether Virginians, who have suffered the most from marijuana criminalization, should be allowed to compete in the new economy.
HB698 would represent a major departure from the initial bill passed in 2021 which made consumption, possession and sharing legal. The original bill passed in 2021 included provisions for legal sales. However, they were subject to reenactment after Republicans gained control of both the House and Governor’s offices.
The 2021 bill, in addition to legalizing marijuana consumption, possession, and home cultivation, was widely praised for its commitment to ensure that Black communities, who have been disproportionately hurt by criminal enforcement for decades, are given an equal opportunity to prosper through the legal distribution of the same product they were previously arrested for.
Advocates are optimistic that now that Democrats are back in control of the two chambers of legislature we can pass legislation that focuses on opportunities for those who have been harmed through criminalization.
Just like last year, powerful out-of state corporations hired lobbyists to undermine the spirit and intent of the 2021 Bill that places the interests of economically disadvantaged Virginians before corporate ones.
This year, the main difference is that those who are working to preserve equal economic opportunities for Virginians in their community are willing to compromise. The 2021 bill’s pathway to retail sales would have been the best way to ensure economic viability for Black-owned marijuana companies based in Virginia. It would have given them an early start in catching up with existing out-of-state medical marijuana operators, who already had their infrastructure in place.
Advocates are now willing to consider a SB448 proposal that would allow existing medical operators to start simultaneously with new license applicants. This includes existing hemp licensees. Others can then start applying. The compromise is not perfect as it favors existing medical businesses over the original proposal for equity applicants. It also continues to exclude equity provisions, such as upfront capital, and includes people and their families directly affected by criminalization.
In turn, out-of state corporate interests have proposed their own compromise through incubator programs. Theoretically, the incubator programs require that existing out-of state corporations partner up with local entrepreneurs in order to provide mentorship as well as other benefits when they start their entry into Virginia’s marijuana-legal economy.
The failure of the incubator programs in Illinois, Connecticut, and other states to effectively foster growth for new, small marijuana business should serve as a warning to lawmakers who are considering this path. These other states show why details of incubators programs are critical, but none of the proposals currently before the General Assembly provides clarity on how it would work.
The large companies prefer the incubator model because it allows them to be in the best possible position to win while maintaining a fair appearance.
The General Assembly has to realize that it only has one shot at getting the adult-use marijuana sale right. The investors of the existing large medical marijuana companies would be delighted if they could fast-track their projects. Fast-tracking, if granted the chance, would guarantee that out-of state corporations will be the biggest winners in Virginia’s new marijuana industry for many years to come.
After the powerful corporate interests have ceased to lobby, Virginia legislators will be faced with a clear choice: If they stand for fair economic opportunity, then they cannot support fast-tracking retail marijuana for medical operators. How can it be fair to grant a head-start to those who are already privileged?
Chelsea Higgs Wise, a social worker and former marijuana arrest victim who now serves as the executive director of Marijuana Justice – an organization that is dedicated to making sure those most affected by criminalization receive priority in marijuana reform legislation.
Virginia Senate committee approves marijuana retail sales and resentencement bills
The post Don’t Let Out-of-State Corporations Undermine the Spirit Of Virginia’s Marijuana Legalization Law appeared on Marijuana Moment.
