Virginia’s cannabis commission met for the second time to discuss the future of cannabis in the state. Members discussed taxation and revenue options, as lawmakers consider the possibility of establishing an official market.
In accordance with a legislative resolution that was passed earlier in the year, the Joint Commission to Oversee the Transformation of the Commonwealth into the Cannabis Retail Market has been tasked to collect feedback and to make recommendations about a range of issues relating to commercial marijuana sale.
The meeting on Wednesday comes nearly two months after it was first held. Members discussed broad regulatory issues and related topics such as THC potency and the hemp market.
Use and possession of marijuana has been legal in Virginia since 2022, but retail sales remain forbidden—a situation that’s helped fuel a multibillion-dollar illicit market. Despite efforts by Democrats in past years to legalize and regulate the retail system, Gov. Glenn Youngkin, (R), has been a barrier to reform. He has vetoed proposals that were passed in each of the two last legislative sessions.
Youngkin is however term-limited, and therefore unable to stand for reelection this November. In the near future, the replacement governor will likely decide if products regulated in Massachusetts are made available.
The work of the Commission could be more useful in the future. And the 10-member panel—comprised of six House and four Senate lawmakers—took aim at future policies around the “economic aspects” of legalization during Wednesday’s meeting, as the chair, Del. Paul Krizek (D), said.
Andrea Jimenez was one of the four witnesses that gave a testimony to the Commission, outlining the tax rates on cannabis for adults in various states.
“One of the primary motivators of marijuana legalization is revenue, and data shows that cannabis revenues do tend to be strong early on when marijuana sales begin—but they tend to slow over time as the market becomes better established and as more states can continue to legalize marijuana,” she said. She said that in recent years a few states reported lower prices for marijuana which has affected the revenue collected.
Chelsea Higgs Wise, executive director of the advocacy group Marijuana Justice, also addressed the question of taxing cannabis and allocating revenue—emphasizing that “the promise that we left in 2021 [when cannabis possession and home cultivation was legalized] It was our intention to ensure that we continue to build an industry [and] We will promote social equity and small Virginia businesses.”
There are some estimates about the revenue that will be generated by a legal system of sales. However, the law that was passed in the past allows localities to reject cannabis through referendums. So, the revenue estimate could change depending on the number of jurisdictions that follow the path.
JM. Pedini of NORML spoke also at the meeting. She said the commission should look into streamlining tax revenue allocation by combining buckets as has been suggested, and giving 30 percent to the Cannabis Control Authority.
Pedini commented to MEDCAN24 after the June first panel meeting that it was important for voters to choose a Governor who is willing to embrace cannabis reform. Unaware of any changes that legislators might make to a cannabis sales law, an executive opposed to the reform may keep it illegal indefinitely.
“The most important consideration for any Virginian interested in participating in the adult-use market—either as a consumer or a business—is their vote this November,” Pedini said. Virginians will have to wait until 2030 to be able to legally sell adult products if they fail to elect governors who are committed to signing the measure.
Youngkin also stood in opposition to more gradual reforms. In May, for example, he vetoed a bill that would have allowed deliveries of medical marijuana directly to patients at locations other than their own homes. This bill also would have required updated labeling standards so the packaging clearly indicated THC levels and CBD.
In March, after the legislature passed the legislation, Youngkin recommended an amendment that would remove language to allow marijuana to be delivered to places other than a patient’s private residence. Lawmakers later declined to make that change, however, and sent the unamended bill back to the governor.
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Youngkin in March also vetoed a host of other drug reform proposals passed by lawmakers, including the legal sales bill and another to authorize the prescription of a synthetic form of psilocybin as soon as the federal government authorizes its use.
Beyond the legal sales and psilocybin bills, the governor also rejected a number of other cannabis-related reforms this session, including efforts to resentence people serving time for cannabis offenses and protect the parental rights of those who legally use the drug.
Youngkin said in a statement of veto that the legalization of sales for adult use marijuana would “endanger Virginians health and safety.”
The governor said that states following this route have experienced adverse health effects and increased violent crime. They also saw a significant decline in road safety and deterioration of mental health. Retail marijuana has also resulted in significant costs, which far outweigh the tax revenues. It also doesn’t eliminate illegal black market sales of cannabis nor does it guarantee product safety.
Even before the start of the current legislative session, Youngkin’s office had signaled it had no interest in the reform.
Christian Martinez, the Youngkin’s spokesperson, was asked by Virginia Public Media last year about the possibility of a “veto” and told them: “I believe you can point out that he is very clear in that regard.”
Reform advocates are already watching to see where his possible replacements stand on legalization and other cannabis policy changes.
The two major party nominees for the position—Republican Lt. Gov. Winsome Earle-Sears and Democratic former U.S. Rep. Abigail Spanberger—have starkly different views on the reform.
Earle-Sears, who recently shared Youngkin’s view on legalization, said: “There is no hope there.”
She also claimed that marijuana was a gateway drug, and fired an employee because they used it.
Spanberger has voiced his support for a regulated market.
She said, “We must have a legalized and emerging market for cannabis that is formalized.” We also have to ensure that [tax] The revenues generated in Virginia go to support our public schools, communities and local governments.”
Mike Latimer is the photographer.
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