Va. moving to legalize marijuana sales
Virginia took one step closer to legalizing marijuana sales Wednesday due to legislation proposed by Gov. Ralph Northam’s team.
Backed by state Sens. Louise Lucas, D-Portsmouth, and Adam Ebbin, D-Alexandria, the legislation would allow licensed people 21 and older to sell the drug starting on Jan. 1, 2023.
License-seekers will have five types to choose from: cultivation, processing, distribution/wholesale, retail and testing.
There will be limits, including a possession limit of one ounce of plant material, which is normal for most other states.
An outline of the proposed legislation said there will be a 21% tax on marijuana sales, and localities can add a 3% additional tax on retailers.
Lucas said at the Virginia Senate Democratic Caucus’ virtual session Wednesday that marijuana prohibition has historically discriminated against people of color. Legalization will change that, and, the way it’s going to be done in Virginia, will help younger Virginians, she said. The bill calls for dedicating a portion of revenues to expand pre-kindergarten access to at-risk 3- and 4-year-olds, Lucas said.
“As you all know, 72% of 3-year-olds from economically disadvantaged homes do not have access to quality early learning,” Lucas said.
Also included are substance abuse prevention efforts in schools, and protections for young people, such as mandatory ID checks and education campaigns.
Northam also is looking to expunge marijuana-related offenses, which have disproportionately affected minority and low-income communities. Expungements will be automatic for misdemeanor marijuana convictions, including marijuana paraphernalia. They’ll be petition-based for felony marijuana crimes. According to the plan’s outline, the Virginia Alcoholic Beverage Control Authority will regulate the marijuana industry and include a seven-member Cannabis Control Advisory Board appointed by the governor. Funding initially will come from a loan to the authority, and then regulation will be fully funded by license fees and tax revenue collected from the industry, the plans said.
Advisory board members will include those with expertise in the industry, as well as in public health, and a representative from a historically disadvantaged community.
The outline offers “diverse participation” plans for the cannabis industry, including a licensing process that includes social-equity-qualified candidates and rules about application requirements that can disproportionately impact applicants from historically disadvantaged communities.
Also mentioned are low or no-interest loans for qualified applicants, administered by a community development finance organization.
Other options will include potentially waiving or reducing costs associated with application and licensing fees for candidates in need and a Cannabis Equitable Business Support Team to do outreach and help applicants from underrepresented communities.
There also will be a Health Advisory Council, a pharmaceutical processor program, a mandatory seed-to-sale tracking program and mandatory testing of products for THC potency levels.
Retailers who want to get into the business can’t hire anyone under 21, they can’t sell marijuana grown by unlicensed people, and they can’t be near schools or child-focused areas.
Advertising will be limited as well, barring neon signs, cartoons and billboards, the plans said.
Business owners wanting to control every phase of production in a vertically-integrated model will be able to do so, but it’s not required, the plans said. Such companies will have extra requirements, including submitting approval for a diversity, equity and inclusion plan for its operations.
They’ll also have to give $250,000 to either a Cannabis Reinvestment Fund, a social-equity-qualified business, or an organization that provides job training services to people recently incarcerated.
Virginians who want to partake personally can have up to two mature and two immature plants per household. Folks can grow it at their primary residence, but plants have to be out of public view and out of the reach of children.
The legislation comes nearly a year after Virginia lawmakers voted to decriminalize the possession of small amounts of marijuana. That move took effect July 1, and included a maximum civil fine of $25 for someone caught with up to an ounce of marijuana.
In December, Hampton Roads’ first medical marijuana dispensary opened in Portsmouth, and in November, on the heels of a report showing that the average arrest rate of Black people in Virginia for marijuana possession was 3.5 times higher than the arrest rate for white people, Northam said he intended to legalize marijuana.