The bill is primed to head to the desk of Gov. Youngkin, who has previously said he has “no interest” in setting up a retail market for recreational marijuana
RICHMOND, Va. (WRIC) — After weeks of debate, Virginia Democrats have struck a deal they hope will put a bill to create a retail market for recreational marijuana on Governor Glenn Youngkin’s desk.
The deal will allow up to 350 retail stores to open in Virginia on May 1, 2025. However, if passed, localities would have the option to opt out of retail sales through a referendum.
“The timing is really to make sure that those that are already existing businesses don’t have that leg up,” Chelsea Higgs Wise, Executive Director of Marijuana Justice, told 8News. “This is a time to get licenses out for Cannabis Control Authority, as well as for new businesses to start up in a fair way.”
Advocates say the May start date, which is later than in previous proposals, will ensure that medical marijuana producers who are already operating don’t get a head start.
Plus, they say it will allow the state to develop a program to provide start-up capital to people negatively impacted by previous laws criminalizing marijuana possession.
“So, the money that is coming straight into micro-businesses through the funding of licensing fees is going to give that lift many small businesses need, particularly Black and minority businesses,” Wise explained.
The compromise lays out a tax structure, which includes a 4.5% state tax and a 4.5% local tax option. Some of the state tax revenue will go toward funding early childhood education and other priorities.
“We are optimistic that this cannabis retail industry will be able to provide those revenues for our coffers [and] for our legislative priorities, but at the same time, the focus is doing it in a correct and regulated manner,” said State Senator Aaron Rouse (D-Virginia Beach), who was the architect behind the original Senate bill.
The legislation still has a few more hurdles to clear, but all expectations are that it will land on Governor Glenn Youngkin’s desk. The governor has previously said he has “no interest” in setting up a retail market for recreational marijuana.
