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Marijuana market legislation should earn Gov. Youngkin’s signature

Legislation approved by the General Assembly that would create a retail marijuana market represents a commonsense approach to solve a tricky problem facing the commonwealth. It would bring needed clarity to state law regarding cannabis, allow adults to purchase the drug legally and potentially generate hundreds of millions in revenue.

In short, it’s a good bill and Gov. Glenn Youngkin should sign it.

Reports this week suggest that the governor intends to be an obstacle to a measure that enjoys strong bipartisan support across Virginia. Sen. Creigh Deeds, D-Charlottesville, told WIRC

News in Richmond that Democrats had hoped Youngkin would be willing to make concessions on their priorities in exchange for support for a proposed arena in Northern Virginia, but that the governor was unwilling to budge.

“We were advised that the governor wasn’t going to sign the [cannabis market] bill under any circumstance,” Deeds said.

Youngkin said last summer, and again during the session, that he had “no interest” in approving a legal retail market for marijuana. That would put him among the 40% of Virginians who oppose or strongly oppose the creation of such a market, according to polling late last year by the Wason Center at Christopher Newport University.

The survey found that 58% support or strongly support the measure, which includes 76% of Democrats, 59% of independents and 38% of Republicans. As one would expect, voters aged 18-44 were overwhelmingly (69%) in favor, but 54% of voters 45 and older were also behind a legal marketplace.

The bill now on the governor’s desk, crafted primarily by Sen. Aaron R. Rouse, D-Virginia Beach, is the product of extensive deliberation and compromise. It would allow legal sales to begin on May 1, to be administered by the Cannabis Control Authority, includes provisions to encourage small businesses to enter the market, and allows for communities to opt out of marijuana sales if voters choose.

It would tax marijuana purchases at 11.625%, which essentially split the difference between the rates proposed in competing House and Senate measures. Of that, 8% would go to the state, 2.5% would be a local option and 1.125% would be dedicated to public education. The bill’s fiscal impact statement estimates revenue to be $8.24 million in the abbreviated first year of legal sales, rising to $104.59 million annually in year five.

Could the commonwealth and Virginia localities use an additional $100 million in revenue? No question. But arguably the most vital part of this legislation is that it resolves the ambiguity in state law created when the legislature voted to legalize possession of marijuana in 2021.

As it stands, Virginians ages 21 and older can have up to 1 ounce of cannabis and can grow up to four plants at home. It set this year as a deadline for establishing a legal market, though Democrats, then in control of both legislative chambers, were unable to reach agreement on the details.

That meant that Virginians could have and consume marijuana, but not purchase it. They could grow plants, but couldn’t buy seeds. It did little to suppress the marijuana black market in Virginia, which is estimated to be $3 billion annually.

As Virginia dawdles, other states, such as Maryland, and Washington, D.C., are reaping the rewards. And it’s only a matter of time until another southern state presses ahead, leaving the commonwealth with less revenue in a more competitive environment.

This legal limbo isn’t good for anyone — not for adults who wish to responsibly use marijuana; not for the economy, which would benefit from a legal marketplace; and not for law enforcement, which has called on lawmakers to provide an unambiguous path forward.

Now lawmakers have done precisely that, coming together on a well designed bill that even won some Republican votes in a deeply divided General Assembly.

Youngkin may want to punish Democrats for rejecting his arena proposal, but singling out this legislation as an avenue for retribution serves no one. The governor should honor the public will, recognize the legislature’s good work here and sign this bill, not veto it.