We need to formalize and legalize the emerging market for cannabis.
Marlin Adam, VCU Capital News Service
Gov. Glenn Youngkin, (R), vetoed a bill to legalize marijuana retail for a second consecutive year. He reaffirmed his opposition at a time when the state is heading into an important election season.
“Anybody who thinks I’m gonna sign that legislation must be smoking something,” Youngkin said in 2024.
The General Assembly has been trying to set up the retail market in both chambers since 2021. Diverse measures have either been blocked, delayed or vetoed.
Virginia voters can decide on the future direction of marijuana policies as Youngkin approaches the end of his tenure. The outcome of this year’s gubernatorial race, between Republican Lt. Gov. Winsome Earle-Sears and Democratic former Rep. Abigail Spanberger, could determine if marijuana retail sales are implemented.
JM Pedini worked closely with legislators to move the bill through the General Assembly.
Pedini stressed the significance of electing someone who will sign adult-use legislation into law. Any bill would continue to be vetoed, and the next election for governor is four years off.
Pedini stated that the next chance to implement such a policy would not come until 2030.
Governor’s departure and the key decision for voters
Earle-Sears echoed Youngkin’s views on recreational marijuana sales when he campaigned in 2021, saying “there’s no hope in that.” She said marijuana is a gateway drug, and also that she had fired a previous employee for their use of it.
Spanberger, meanwhile has expressed his support for a regulated wholesale market.
We also have to ensure that we are able to [tax] Spanberger said RVA Mag that revenues are flowing into Virginia, and they’re used to improve our public schools and strengthen communities. “We require a legalized and emerging market for cannabis that’s formalized.”
Two emails requesting an interview on marijuana policy and its financial impact were never answered by Earle Sears or Spanberger.
What is proposed in the Bill
A proposed bill would have imposed a sales tax of 1.125 percent and an excise duty of 8 percent on all retail marijuana and marijuana related products, as well as paraphernalia. Bill would also have allowed localities to choose to add up to an additional 2.5 percent tax.
The tax structure would have generated around $1.5 million in revenue in fiscal year 2026, but would have grown to $74 million over five years, according to the state fiscal impact statement.
Del. Paul Krizek, D-Fairfax who sponsored House Bill 24,85 is running for reelection. He has stated that he intends to reintroduce this bill should Democrats gain control of the House. Aaron Rouse of Virginia Beach, his Senate counterpart, carried a companion bill. Rouse is among six Democratic candidates running for the position of lieutenant-governor.
Public support and political momentum
The public’s opinion could be changing despite the repeated failures of legislation. Last year, a Wason Center survey found that 57 per cent of Virginia’s likely voters supported the sale of cannabis at retail.
Stephen Farnsworth, professor of political sciences at University of Mary Washington and director of the Center for Leadership and Media Studies is not convinced that marijuana policy will be enough to drive turnout. He predicts that Democrats will maintain their majority in Congress.
Farnsworth stated that “normally, Virginia elections are decided by angry voters.” “People who lost the White House are typically the most angry in the first year after an election.”
Medical market leaves behind many
Virginia allows the sale of medical marijuana through 23 licensed cannabis dispensaries.
The Cannabis Control Authority shared data that showed 46166 medical patients purchased cannabis in fiscal 2024. It tracks the sales of “dispensations”, which are payments made to clients. The average monthly dispensation was 314,061 during the same period.
Not all parts of the state receive equal service. Health Service Area 1 (which includes Shenandoah and Fredericksburg as well as Charlottesville, Harrisonburg, Rappahannock and Charlottesville) has yet to license a dispensary.
Tanner Johnson hoped that would change. He is the CEO of a CBD-and hemp-based company owned by his family. Last year, his company and 40 others applied for a pharma processor license under HSA 1. AYR Wellness, a Florida-based firm, received conditional approval despite 33 other applicants making it to the lottery.
Johnson said that if his company was chosen, it would be the only Virginia company currently holding a license as a processor of pharmaceuticals.
Johnson stated, “We know so much about this field and about patients’ needs.” We just felt we were good candidates for the license.
Virginia’s CCA oversees medical marijuana. Each of the five HSAs is allowed one permit for a pharmaceutical processor. Each processor can open up to five shops to sell cannabis, with an additional shop for cultivation allowed, if approved.
Johnson says that the lack of accessibility has forced people to look for alternatives.
Johnson stated that anyone from the area would have to travel two hours for similar products and pay three times as much. Many of them are coming to us.
According to a CCA study from 2023, 12 percent of medical cannabis patients bought their marijuana in another country. High prices, limited product options and lack of access were cited by many as reasons for not visiting state dispensaries.
Virginia, with its average of $14 per gram, has the highest medical marijuana price among states that are similar in size. This is according to a report from 2023 Cannabis Public Policy Consulting. Washington D.C. had a price of $8.73 per gram, while Maryland charged $9.27.
Washington and Maryland are two states where many medical marijuana patients purchase their cannabis. However, the processes in both places differ. Virginians can only use their card to purchase cannabis in Washington, not Maryland. Maryland is a recreational cannabis state where adults can purchase it, provided they’re 21 years or older.
Why Youngkin rejected the bill
Youngkin, in his recent message of veto, cited concern about illicit markets, the harm caused to children, and possible increases in crime, psychiatric disorders, and criminal activity.
Youngkin argued that it was impossible to achieve the goal of implementing a safe marketplace and decriminalizing pot. The more sensible approach is to review the discrepancies of enforcement.
Krizek said the opposite, claiming that criminals would benefit from a limited retail market.
“The Governor doesn’t get it. In an email, Krizek said that he had worked very hard on crafting sensible and effective legislation. They know that it is wrong for criminals to make hundreds of millions while selling dangerous, unregulated products.
The November elections could have a major impact on marijuana policy, as all House of Delegate races and the Governor’s race are up for grabs. It is a historic year because the two major party candidates for governor this time around are both women.
Capital News Service (CNS) is part of the Robertson School of Media and Culture at Virginia Commonwealth University. In this program, students provide Virginia state government reporting for different media outlets.
Virginia lawmakers reject Governor’s move to limit medical marijuana delivery, but uphold other cannabis bills vetoed