VA legislators pass recreational marijuana sales bill, Republican Gov. Youngkin to review

VA legalized recreational marijuana in 2021, but not its retail sale. If a new bill is approved by GOP Gov. Youngkin, recreational retail sales of marijuana will begin next year.

A cannabis plant grows at the Greenleaf Medical Cannabis facility on June 17, 2021, in Richmond, Va. Under current Virginia law, patients who receive certification from a health care provider can purchase medical cannabis from a dispensary, and adults age 21 and up can possess and cultivate the drug. Legislation heading to Gov. Glenn Youngkin's desk would allow recreational sales of marijuana to begin in 2025. (AP Photo/Steve Helber, File)

"I’ve said before, this is an area that I really don’t have any interest in. What I want us to work on are areas where we can find a meeting of the mind and press forward to the betterment of Virginia, and there are so many of them," he told reporters in January.

His press office declined further comment Wednesday.

"This bill regulates an existing market," said Greg Habeeb, a former Republican legislator now lobbying for the Virginia Cannabis Association, who thinks the governor will give the bill "a very serious look."

Competing bills setting up a retail market were introduced at the start of the legislative session. The versions that passed Wednesday were identical and the result of compromise, Krizek and Senate lawmakers said.

Under the legislation, no group would get a head-start on kicking off retail sales, Krizek said.

Products would be taxed at a maximum rate of 11.625%, with 8% going to the state, 2.5% a local option tax and 1.125% to K-12 education, Habeeb said.

The 81-page bills allow for localities to hold a referendum on whether to prohibit retail marijuana stores. They also increase the amount of marijuana a person over 21 may possess from 1 ounce to 2.5 ounces.

The legislation contains a lengthy section on labeling and packaging, including requirements that products identify all ingredients, THC potency, possible allergens and contain a warning label. Products would have to be sold in child-resistant packaging.

The cultivation, processing, or manufacture of marijuana without the proper license would be a Class 6 felony, according to a review of the financial implications of the bill.

In past years, a sticking point in negotiations has been social equity provisions that would aim to give advantages in the licensing process to people and communities hurt by old marijuana laws and disproportionate law enforcement that focused on people of color.

Krizek said this version contains preferences for certain micro-businesses, a provision intended to encourage participation in the industry by individuals from historically economically disadvantaged communities.

"These preferences, which will be race-neutral, will offer significant economic opportunities for economically disadvantaged persons, including persons who have suffered hardship or loss due to this country’s war on marijuana," Krizek said.

The legislation advanced mostly along party lines, with just a couple of Republicans backing it.

"The idea that any of this is going to get rid of the black market is laughable, with all due respect," House Republican Leader Todd Gilbert said.

The bills have also drawn opposition from religious and socially conservative groups, which have raised concerns ranging from the harm of addiction to possible effects on children.

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The 2021 bill that legalized marijuana passed in a chaotic rush, strictly along party lines, with no GOP support.

While there has been some Republican legislative support since then for setting up legal recreational sales, bills to do so have failed two years in a row.

"The bill may not be perfect, but it’s pretty good. And it’s a very, very good framework that I think the governor should consider," Democratic Sen. Barbara Favola said.

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