On February 27, 2021, the Virginia Legislature handed Invoice 2312, containing growth, regulatory, and enforcement provisions governing the private use of cannabis-containing merchandise by individuals 21 years of age and older. The laws, which awaits the signature of presidency Ralph Northam, additionally creates the Commonwealth Hashish Management Authority, which can oversee the hashish market from Could, with the primary hashish gross sales going down in 2024.
The legislation additionally offers for felony justice reforms with respect to enumerated offenses related to the manufacture, distribution or distribution of small quantities of marijuana. It empowers the authority to take part within the business by individuals beforehand convicted or discovered to be delinquent for any hashish associated offense in addition to by individuals from socially and economically deprived communities.
The legislation establishes 5 classes of licensed marijuana companies:
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Utility course of
The authority will set up an utility course of that, to the extent potential, will stop disparate impacts on traditionally deprived communities. Nonetheless, the legislation doesn’t specify how the authority ought to obtain this. In different states, this has resulted in a factors program through which social fairness candidates are given extra factors or precedence based mostly on their social fairness standing.
Candidates for leisure hashish licenses shall be required to submit a discover of utility on the entrance door of the constructing or room through which the industrial exercise will happen for 30 days and publish it in a newspaper as soon as. per week for 2 consecutive weeks. The discover will present the general public with a chance to lift issues with the authority concerning the request. As well as, the authority will notify the native authorities of the jurisdiction the place the applicant will function and provides the native authorities 30 days to object.
The legislation prohibits any individual holding or having an curiosity in a couple of class of license, besides authorization of the authority. It defines “curiosity” as together with any full or partial possession curiosity in or another kind of economic curiosity, together with that of an investor or an individual in a managerial place. Until the authority promulgates rules on this matter, the restrictions within the legislation would stop, for instance, any investor in retailers from investing in wholesale or manufacturing operations.
Nonetheless, the authority will even have the capability to allow vertical integration between small companies, producers of medical marijuana and producers of business hemp.
In contrast to more moderen state legalization measures, the legislation doesn’t permit supply providers.
The pool of license holders shall be restricted. The authority may have the primary say on the variety of licenses approved within the completely different lessons, however the variety of licenses issued per class won’t exceed the next limits:
- Marijuana Retail Shops: 400
- Marijuana Wholesalers: 25
- Marijuana manufacturing amenities: 60
- Marijuana develop amenities: 450
The Commonwealth can be within the course of of building a Hashish Enterprise Mortgage Fund below which hashish licensees eligible for social fairness can obtain low-interest loan application to advertise enterprise possession and financial progress. in communities which have been disproportionately affected by prohibition.
Charges, penalties and taxes
The Commonwealth will accumulate an excise tax of 21% (along with any gross sales tax) and native municipalities could impose a further excise tax of three%. All license charges, penalties and tax revenues collected by the authority and deposited within the Treasury, in addition to all monies collected by the authority much less all prices, bills and fees approved below the legislation, shall be distributed: 40% preschool applications for kids aged 3 and 4 in danger; 30% to the Hashish Fairness Reinvestment Fund; 25% for substance use issues and prevention and remedy applications; and 5% to public well being applications.