Virginia’s efforts to create a legal recreational marijuana market face a significant roadblock as the Governor Glenn Youngkin will likely veto any new legislation. This would undermine efforts to establish a framework for legal cannabis sales and put the industry of Virginia in legal grey area.
Cannabis Legalization: the ongoing struggle
Virginia lawmakers have passed a bill that would regulate recreational marijuana sales. Governor Youngkin, however, has expressed a strong objection. Although home cultivation and possession are legal, the current system of licensed retail sales is not. Some supporters argue that regulation would increase tax revenues, create more jobs and reduce illicit sales. Youngkin, and others who are against legalization of cannabis sales claim it could increase the use by minors and cause public safety issues.
What the Veto means for Virginia’s Cannabis Industry
Youngkin’s veto will leave Virginia in a unique situation, where adult cannabis users can possess it and grow it legally, but there are no businesses that can sell the product. It has created a vibrant illicit cannabis market with products sold by unlicensed sellers and gray-market retailers.
Several industry supporters believe Virginia could lose millions of dollars in tax revenue if it does not have a framework for legal sales. They also think that untested and potentially dangerous products are allowed to be sold. Some lawmakers pledged to press for future legislation. But with Youngkin at the helm, major changes are unlikely anytime soon.
Look Ahead
Virginia legislators could try to override Youngkin’s veto, but would require bipartisan support in order to be successful. Until that time, Virginia’s cannabis sector is stuck, without a clear way forward to legal sales.