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Legalizing pot sales in Virginia: Devil is in the details

March 2022 employment law letter
Authors: 
M. Jarrad Wright, DiMuroGinsberg P.C.

Becoming the first state in the Deep South to legalize marijuana has been easier for Virginia than figuring out how to regulate and allow for commercial pot sales in the Commonwealth. When Democrats controlled the General Assembly and the governor’s mansion in 2021, the state took the historic step of legalizing marijuana. But that was the easy step, as legislators now realize.

Reenactment hurdle

While last year’s legalization of pot was permanent, the legislation included a reenactment clause by which this year’s General Assembly would need to vote again on the sales and taxing rules. The idea was that legislators would have more time to consider the business and regulatory implications for selling marijuana. That decision has had unforeseen consequences in light of last November’s elections and the surprise win by Republican Governor Glenn Youngkin and the Republican Party’s takeover of the House of Delegates.

Republican-proposed changes

Although neither party has stated it wants to recriminalize marijuana, house Republicans have put forward eight separate bills to amend the original regulatory scheme and redirect marijuana sales revenue from a cannabis equity reinvestment fund to Virginia’s general revenue fund. The proposed legislation also would eliminate any consideration for awarding licenses based on social or equity concerns and instead favor persons living in economically distressed areas or those who previously have grown hemp legally.

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