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'Team effort' compromise bill on marijuana sales moves forward in Virginia: 'It's been a hard road'

Retail Marijuana Sales
Posted at 6:01 PM, Feb 23, 2024
and last updated 2024-02-23 18:26:58-05

RICHMOND, Va. -- Advocates are celebrating a compromise bill that would create a retail market for marijuana sales in Virginia.

"This was a truly team effort from every aspect of our Commonwealth," Sen. Aaron Rouse (D — Virginia Beach) said Friday.

Before now competing proposals had been moving through the Virginia Senate and House of Delegates.

The bill would allow the licensing process for recreational sales of the drug to begin in September with retail sales starting May 1, 2025.

Virginia became the first Southern state to legalize marijuana in 2021, adopting a policy change that allowed adults to possess and cultivate the drug. But lawmakers had yet to enact a framework for recreational sales.

"It's been a hard road, but really proud of all the work that's gone in to create this compromise," Marijuana Justice Executive Director Chelsea Higgs Wise said. "It allows folks to get started, it allows folks to get their money and it really allows for time for that first grow season."

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A portion of the state tax of 4.5% will also support that for a time. But it would also go for things like pre-K and substance abuse treatment programs. Additionally, localities could choose to add another 4.5% tax.

"You want the taxes as low as possible, so that you can compete with the black market, a lot of states regulated systems has failed because they put the taxes too high," Greg Habeeb with the Virginia Cannabis Association said.

The legislation allows for up to 350 stores around Virginia, but cities and counties could hold a referendum to opt-out of retail stores.

However, that would have to be done in 2024. And if a locality rejects the stores, they would have to wait at least four years before another vote to reconsider.

To help with the equity-aspect, licensing fees would be used to financially support microbusinesses.

There would qualify by a scoring system based on things like past marijuana convictions or being a military veteran.

"Making sure the little guys have a true stake in setting up this market, and making sure that when they come to market, they are not overshadowed or being under the wings of the big guys," Rouse said.

State Sen. Aaron Rouse
State Sen. Aaron Rouse

While advocates celebrated, opponents to commercialization of the drug remain.

"Parents do not want to see a pot shop on every corner. It is not helpful to their kids," Family Foundation of Virginia President Victoria Cobb said. "They are doing everything they can to keep their kids from a life of addiction and that just enables it."

The legislation passed committee along party lines in the House and only had the support of one Senate Republican.

Additionally, the bill still needs to clear both full chambers before making it to Republican Gov. Glenn Youngkin's desk.

When asked about his plans if a bill reached his desk, a spokesperson for Youngkin pointed to comments the governor made at the start of session that retail marijuana sales are not an area he is interested in pressing forward on.

"This has been a big undertaking, talking to members of both sides of our industry stakeholders, community leaders and advocates, criminal justice reform advocacy as well," Rouse said. "My job was to get this bill in a place to where it can get broad support and get it to the governor's desk. I think we're almost there. And the governor will have his say t the end of the day."

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