RICHMOND, Va. -- A State Senate subcommittee took the first step Thursday toward regulating recreational marijuana sales in Virginia.
Advocates like Greg Habeeb with the Virginia Cannabis Association were pleased.
"Step one, but a very, very positive step," Habeeb said.
While marijuana has been legal to possess in Virginia since 2021, the framework for a marketplace has not been created. As a result, the unregulated market for the drug has continued to flourish.
"We already have a very large cannabis market," State Sen. Adam Ebbin (D - Alexandria) said. "Unfortunately, it's controlled by cartels and organized crime."
Two bills were filed to create a marketplace with a few differences. Lawmakers opted to use State Sen. Aaron Rouse's (D - Virginia Beach) version as the vehicle to move forward with this session.
"It's about getting Virginia's actual opportunity to have a small business to partake in this environment while understanding that there's certainly equity component that's involved in this," Rouse said.
Among the differences between Rouse and Ebbin's bills are the start date of sales.
Ebbin's bill would have allowed established medical marijuana retailers to begin selling in July. In exchange, they would pay a fee and help incubate small and minority businesses. That is something advocates were opposed to.
"There's no guarantee they would be operational in six months or ever," Marijuana Justice Executive Director Chelsea Higgs Wise said.
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Under Rouse's bill, the earliest sales would start would be Jan. 1, 2025.
That bill allows for localities to hold a referendum to prevent retail shops from opening within their borders.
After picking a baseline, lawmakers then debated different aspects of the marketplace, including regulations on the product, how many licenses in each sector will be given out and ensuring equity in who can get a license.
The latter will require the Cannabis Control Authority, the agency that will oversee the market, to consider things like the applicant being from a economically-disadvantaged community.
"There are no literal set asides in this bill. Frankly, those have run into some constitutional issues and other places," Habeeb said. "So we're trying to provide access while passing a bill that we think can stand the test of time legally."
Other aspects, like the tax rate currently set at 12% and how that revenue would be spent, will be taken up by other committees.
Advocates said there are still many details to work through.
"Some additional fee waivers, specifically for folks with very specific licenses or for certain backgrounds," Wise said. "But we do need to clear up some of Sen. Rouse's bill on some of those equity privileges and portions."
As a result, Rouse said his goal is to send something with broad support.
"That people can get behind and continue working for Virginia," Rouse said. "So what the governor decides to do is under his purview."
To that end, a spokesperson for Youngkin pointed to comments the governor made at the start of the session that this is an area he does not have any interest in pressing forward on.
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