Virginia’s Senate has officially approved a proposal that would legalize the retail sale of marijuana in the Commonwealth despite warnings raised by law enforcement organizations who warn that the harms caused by legal cannabis will be greater than those from alcohol.
The Senate approved the sales bill of Sen. Aaron R. Rouse on Tuesday with a vote of 21-18. It then sent the measure to House of Delegates.
The vote was taken a day after the House passed a separate bill on marijuana sales from Del. Paul Krizek’s (D) proposal differs in some key ways from that of the Senate. These differences must be resolved if legislators hope to submit any cannabis commerce legislation. Glenn Youngkin, R. this session.
Rouse said on the Senate floor that Virginia’s legalization in 2021 of cannabis possession and the failure to implement a framework to regulate retail sales led to a “major expansion of the illicit market” where products unregulated, not tested and untaxed are sold.
He said that he heard from Scott County and Virginia Beach that it was a real public safety crisis. “We’re losing out on tens millions of dollars in potential revenue which could be reinvested into our communities.”
Rouse repeated the line that has become popular among supporters of legal sale: “This bill doesn’t create an adult-use marketplace,” he said. “But rather, it sets up a tax and regulation system for what is already available.”
Earlier in the week, though, several law enforcement organizations came out against legal retail sales. In a letter sent to General Assembly members on Monday, the Virginia Sheriff’s Association and Virginia State Police Association, along with the Virginia Association of Chiefs of Police, Virginia Association of Campus Law Enforcement Administrators, urge lawmakers to oppose any legislation that could lead to retail cannabis sales in Virginia.
“Cannabis is more addicting than alcohol.” Thirty-five percent of cannabis users suffer from cannabis use disorder, compared to only 11 % of alcohol users. The police letter states that nine percent of marijuana users who try it will become addicted. The police letter argues that states with legal retail marijuana have not been able to eradicate the black market for cannabis. They also see that cannabis tourism is creating a nexus between the international drug traffic that is dominated primarily by organized crime and that illegal operations are increasing after legalization.
The law enforcement letter states that Virginia will not see a significant change in tax revenues.
The letter states that “the tax revenues raised [sic] would be minimal [sic] in comparison to the additional funds required to increase behavioral health resources and other resources for public safety.” These statistics show why legalizing cannabis retail sales is the wrong course for Virginia.
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 reenactment required of a regulatory structure for retail sales. Since then, illegal stores have opened to meet the demand of consumers.
Reformers have been hoping that regulatory legislation will pass after Democrats gained control of both chambers in the legislature following last year’s election.
Rouse stated that “this bill will achieve what the legislature intended to do in 2021.”
Both bills, SB 448 and H 698, would launch legal and regulated marijuana sales next year. However, there are significant differences in the timing, licensing and taxes, as well as social equity and criminal penalties.
HB698 , as passed by the House , would allow medical marijuana operators to open retail stores on January 1, 2025, earlier than the Senate bill. In order to be eligible for an early opening, medical operators would have to pay $400,000 each to six microbusinesses as part of a proposed accelerator programme.
Under the House proposal cannabis products would be subject to a tax of 9 percent, and outdoor cultivation will be prohibited.
Senate Bill would not allow any license applicant to get a jump on sales for adult use. After a general licensing and application process, retailers would be able to open in 2025.
Rouse stated on the Senate floor that “in this bill, there is no preference for one applicant over another.” “There is no head start.”
The maximum tax rate on products would be about twice as high as the House measure. This would amount to 17.5 percent. It would include a 12.5% state excise, a local tax of up to 3.5 percent that can be imposed by municipalities, and the 1.125 percent of Virginia’s Sales Tax that is used for K-12 education.
The Senate proposal allows for outdoor cultivation by smaller licensed growers, but requires larger cultivators to grow indoors.
Despite the differences, some supporters are still hopeful that a consensus will be reached as the legislative session continues.
After the Senate vote on Tuesday, Jason Blanchette of the Virginia Cannabis Association told Marijuana Moment that a coalition was forming among the stakeholders, as long as they all got what they needed in the final vehicle. This week will be crucial.
The sponsor of the House Bill, , Krizek, , closed his remarks ahead of the second reading passage last week , with a conciliation message to Senate legislators “who share my conviction that it is now time for the $3 billion illegal marijuana market in the state to be challenged by a safe and tested product.”
He said: “I understand that there are many aspects of the bill with which you may not be comfortable.” “But I am committed to working with everyone in this body and you to find a bill that is bipartisan as we continue to work on this complex topic.”
Before the Senate’s vote on the legal sale bill, Schuyler vanValkenburg, a D senator and teacher by profession, stated that the only reasons he supported the Senate’s measure was its public health measures to discourage young people from taking drugs. He pointed out that the bill creates a public-health advisory board, which could veto any proposed cannabis regulations that interfere with public health.
VanValkenburg stated that he wanted a licensee who would make money, but also care for his community.
What’s next? Advocates expect changes as each chamber considers the legal sales bill of the opposite body. The final details could be negotiated by a bi-cameral conference committee.
JM Pedini told Marijuana Moment that after crossover, each chamber will amend the other’s bills with their own versions. The real work is done in the conference committee. At that point, conferees must decide whether these bills are just messaging or if they want to send Governor Youngkin legislation that he will consider vetoing.
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The governor hasn’t explicitly stated that he will veto a proposal to legalize retail marijuana sales, but he indicated last month that he does not have “anyinterest” in doing so under the Democrat’s plans.
Youngkin, when he first became elected, said that he “was not against” commercial sales. He said that certain Democratic “non starters” were included in the earlier 2021 legislation, such as labor union requirements for marijuana business. However, he still indicated that he was open to supporting a bill.
Some have tempered that expectation at the start of the new fiscal year. They predict the governor will veto all legal sales legislation sent to him by lawmakers.
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.
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Photo by Philip Steffan.
The post Virginia Senate and House Pass Competing Marijuana Sales Bills While Ignoring Opposition from Law Enforcement first appeared on Marijuana Moment.
