Virginia legislators have moved closer to creating a legal retail cannabis market, advancing a revised Senate proposal. The updated bill cleared the Senate Finance and Appropriations Committee on a 7 to 5 vote, sending it to the full Senate for debate. Meanwhile, House members are preparing to debate their companion bill.
Virginia legalized possession of small amounts of cannabis and limited home cultivation in 2021. Lawmakers have since worked to establish a system for commercial sales, but previous efforts were blocked by former Governor Glenn Youngkin, who vetoed legislation that would have created a retail framework.
Although the Senate and House bills share the same goal of allowing adults to purchase cannabis legally, they differ in several important areas. Those differences will need to be resolved before any final measure can reach the governor’s desk.
Among the changes adopted in the Senate panel was an increase in the fee required for existing medical cannabis operators to enter the adult-use market. Under the revised language, those businesses would pay $15 million for a conversion license. The proposal also sets a combined tax rate of 17% on marijuana products.
The Senate version would also restructure oversight of the industry. It proposes folding the Cannabis Control Authority into the Alcoholic Beverage Control Authority, creating a single entity called the Alcoholic Beverage and Cannabis Control Authority. The House plan keeps marijuana regulation under the existing Cannabis Control Authority.
Other amendments address banking access for cannabis businesses, ban online sales, and establish new requirements for background checks, product packaging, registration, and application timelines.
Notably, senators removed several criminal penalties that had been added by another committee earlier in the process. Those provisions would have imposed sanctions on individuals who purchased marijuana from unlicensed sellers, reinstated penalties for possession by individuals under 21, and increased consequences for illegal sales.
Under both current proposals, adults could buy up to 2.5 ounces of cannabis per transaction, or an equivalent amount in other products as determined by officials. The House measure sets Nov. 1 as the start date for retail sales, while the Senate measure targets January next year.
Revenue from marijuana taxes would be directed toward regulatory costs, early childhood education, public health initiatives, substance use treatment, and a fund aimed at reinvesting in communities disproportionately affected by past drug enforcement policies.
Both versions also require cannabis companies to enter into labor peace agreements. In addition, a legislative commission would study the possibility of licenses for on-site consumption and temporary event sales.
Governor Abigail Spanberger, who recently took office, has voiced support for establishing a recreational cannabis market. Marijuana industry actors like Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) around the country will be hoping that a legal market for adult-use cannabis finally launches in Virginia.
About CNW420
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
To receive SMS alerts from CNW, text CANNABIS to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CannabisNewsWire.com
Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: https://www.CannabisNewsWire.com/Disclaimer
CannabisNewsWire
Denver, CO
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com
CannabisNewsWire is powered by IBN
