RICHMOND, Va. — Virginia Democrats are once again putting forward a bill that would establish the retail marketplace for recreational marijuana sales in Virginia.
While advocates for a legal marketplace feel there is “hope” to get something done, Republicans and Governor Youngkin have clear skepticism about backing any plan for retail sales.
In Virginia, adults can currently legally possess and use marijuana in private spaces, but there is no place or framework to legally purchase cannabis.
Medical marijuana is available for Virginia patients when their doctor provides written documentation.
Senator Adam Ebbin (D-Alexandria) and Delegate Paul Krizek (D-Fairfax) have put forth bills to set up the legal marketplace in Virginia.
Under the legislation, the four medical operators in Virginia could begin legal recreational sales before other operators, as early as summer 2024.
Those operators would pay a $1 million license fee up front and sales would be taxed. A significant portion of that money, under the plan, would initially go toward creating a “cannabis incubator” program, run by the medical operators for micro business owners.
Advocates said minority communities often face funding and operational hurdles when starting a cannabis business, and the program would help alleviate some of those concerns, they said.
Those seeking a micro business license in the industry would not face initial funding or facility requirements to obtain one, advocates said.
“Some of the barriers that they run into are, of course, up-front money, but also the know-how of how to run a business,” said Phillip Thompson, a cannabis equity consultant working on the legislation.
A majority of the marijuana operators licenses, 52%, would be reserved for micro business owners under the bill.
Micro business is defined as 66% ownership by someone who lives in or attended a public school in an economically disadvantaged area of Virginia, received a Pell Grant, attended a higher education institution a large population of Pell Grant recipients, or served in the military.
Half of the micro business operators could begin sales in early 2025.
“We think the lanes are similar to the Maryland legislation that we’ve identified without explicit racial preferences, but with important characteristics, either for the economic status of the community or the over-policing status of the community in the past, will provide good avenues to ensure diverse ownership and participation in this industry,” Ebbin said.
The bill also allows cities or counties to opt out of having retail marijuana stores via a voter referendum.
With all that said, it takes two to tango politically in Virginia. If Democrats do pass the legislation through the General Assembly with their slim margins, it would almost certainly face a veto by Youngkin.
Although Youngkin has not directly said he would veto a retail marijuana bill, the Governor’s Office pointed to this comment he made directly following his State of the Commonwealth address last week:
Governor Glenn Youngkin (R)
Similarly, House Republican Leader Todd Gilbert (R-Shenandoah) said his party’s attitudes toward the retail marketplace had not changed. In each of the past two sessions when in the majority, Republicans did not address the issue.
“If Democrats want to spend their time on this, that’s certainly their prerogative, but I think it’s probably a waste. There are other things to work on that could pass and get the Governor’s signature,” Gilbert said.
Senator Mark Peake (R-Lynchburg) said he thinks making marijuana more accessible will only worsen complaints from police and educators he said he’s received since Virginia legalized marijuana possession.
“Parents are bringing in their kids to drop them off in the morning, and they’ll wreak of marijuana. The law says they’re not supposed to smoke it near any minors. I don’t think people are following that law,” Peake said.
Meanwhile, Ebbin said he believes the bill will receive some Republican support but did not directly address questions about Youngkin’s view.
“This bill, we believe, will be as, if not more, attractive to Republicans than it’s been in the past,” he said during a press conference Thursday.
Advocates for a legal marketplace said the plan addresses missteps seen in other states where legal sales are already taking place.
“This is an opportunity to right a lot of wrongs. But more importantly, this is an opportunity to prop up economic development that have not had it,” said Paul McLean with the Virginia Minority Cannabis Coalition. “I think it’s a great economic sunrise in Virginia. There’s a lot of hope here, but it just has to be done right and hopefully everyone will see the benefits.”
To this point in the session, neither the House or Senate version of the legislation has received a hearing or vote.
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