WHAT WE FOUND
Legalizing marijuana would require several legislative decisions If Virginia legalizes marijuana, the General Assembly would need to make several policy choices. The General Assembly would need to determine legal limits on the amount of marijuana an individual could possess; where marijuana could legally be smoked or consumed; the legal age for marijuana use; and whether to allow individuals to grow their own plants. Legislators would also need to determine whether to adjust existing penalties for illegal distribution and possession above the legal amount. In addition, the legislature would need to address consequences for marijuana use in vehicles, driving under the influence of marijuana, and possession and use by youth and other individuals not of-age.
Creating a commercial marijuana market would entail issuing licenses for five types of operations
The General Assembly could authorize the development of a statewide market for commercial adult use marijuana sales. Virginia would need to issue licenses for five types of major business operations that comprise the marijuana industry: cultivation, processing, distribution, retail sales, and testing.
Other states and countries have taken several approaches to structuring their commercial markets, and Virginia could use lessons learned from these experiences. Virginia could allow “vertically integrated" businesses, in which a single business can be licensed to cultivate, process, distribute, and sell marijuana at retail. Virginia could instead prohibit vertical integration by not allowing businesses with a retail license to obtain licenses for cultivation or processing. This could provide greater opportunity for small businesses to participate in the marijuana market. Regardless of the market structure chosen, licensed testing labs would be needed to test products for purity and quality. These labs should be independent of any other marijuana operations.
The number of licenses issued would depend on demand for legal marijuana. Based on the commercial marijuana markets in other states, Virginia could eventually issue between 100 and 800 cultivation licenses, 30 and 150 processing or distribution licenses, and 200 and 600 retail licenses. The size and number of cultivators would need to be limited to prevent over-consolidation of the market and over-supply of marijuana. In addition, the number of retail licenses should be capped to prevent the over-proliferation of retail stores.
State could allow localities to opt out of commercial market, and current medical marijuana businesses should be allowed to participate
States with commercial marijuana markets typically give localities some authority over marijuana businesses. If Virginia created a commercial market, it could allow localities to opt out of it. A JLARC survey suggests that a majority of localities in Northern Virginia and Tidewater would likely participate in a commercial market, but localities in Southwest and Southern Virginia may be less interested in participating. Localities should be able to determine the number of marijuana retail establishments to license in their jurisdictions and be able to apply existing zoning processes and other local requirements that apply to businesses.
Virginia’s currently licensed medical marijuana businesses should be allowed to participate in a commercial market but be required to meet the same requirements as other businesses. Medical marijuana businesses should not be allowed to enter the commercial market before other businesses, based on lessons learned in other states. Over the long term, the goal should be to merge the two markets under a single regulator, license structure, and set of regulations.
Virginia could choose to use legalization to address prior disproportionality in marijuana enforcement
Black Virginians comprise a disproportionately high percentage of individuals arrested and convicted of marijuana offenses. From 2010–2019, the average arrest rate of Black individuals for marijuana possession was 3.5 times higher than the arrest rate for white individuals (and significantly higher than arrest rates for other racial or ethnic groups). Black individuals were also convicted at a much higher rate—3.9 times higher than white individuals.
In other states that have created commercial marijuana markets, relatively few Black individuals have benefited from the establishment of commercial marijuana markets. Industry statistics show the vast majority of current marijuana business owners are white, and there are few Black-owned marijuana businesses.
To redress past disproportionality in marijuana enforcement and ensure Black Virginians have an opportunity to benefit from the new commercial market, Virginia could implement several “social equity" initiatives. Other states are increasingly attempting to achieve social equity goals through their commercial markets. No state, though, has been able to fully achieve these goals, and several are revising their approaches to improve their effectiveness.
The state could consider several approaches to address social equity. It could provide ownership opportunities for social equity businesses by establishing a licensing process and business assistance program needed for these businesses to effectively compete with well-established, larger marijuana businesses. The state could also take measures to maximize employment opportunities for social equity individuals in marijuana and other related businesses. Additionally, the state could allocate marijuana tax revenue to existing programs in communities most affected by drugs and the enforcement of drug laws or create a new community reinvestment program to fund initiatives in these communities. These options have varying potential benefits and costs (see table on page iii).
Virginia would need to take measures to mitigate unintended negative public health consequences
The full health implications of marijuana legalization are not fully understood, but marijuana use does present several public health risks. Marijuana is an intoxicating substance, and people who drive after using marijuana can be at an increased risk of a vehicle accident. People who overconsume marijuana can suffer from several temporary problems such as severe anxiety, vomiting, or drowsiness. Marijuana consumption may encourage the use of other substances, such as alcohol, which can compound marijuana’s negative effects. Research shows likely associations between habitual marijuana use and several negative health outcomes ranging from physical health problems, such as mild respiratory issues, to cognitive and mental health issues.
If marijuana is legalized, Virginia would need to establish prevention efforts to inform both adults and youth about the risks associated with marijuana consumption. The state would need to develop regulations addressing product potency, packaging, and labeling. The state would also need to set restrictions on advertising. Product requirements and advertising restrictions should help to reduce the appeal of marijuana to youth and help prevent accidental consumption and overconsumption. Other states have similar requirements, and they also typically conduct statewide informational prevention campaigns to deter youth use. Virginia could create its own statewide youth prevention campaign while also ensuring adequate funding is provided to community-based substance use prevention programs.
Virginia would need to grant regulatory authority to VABC or create a new agency to regulate the commercial marijuana market
Virginia should vest authority for regulating commercial marijuana with a single board and agency. Regulators in other states uniformly stressed that this is the best approach because it is simpler for both the regulator and the regulated industry. By having one main regulatory body, the state could eliminate duplicative oversight or potential gray areas with other regulators. It is also easier for the regulator to carry out basic functions, such as setting regulations and issuing licenses, because there is less need to coordinate with other regulators. The regulated industry benefits because license holders would not have to work with more than one regulator.
Virginia could grant regulatory authority for commercial marijuana to an existing agency—the Virginia Alcoholic Beverage Control Authority (VABC)—or it could create a new board and agency. There are tradeoffs to each approach (table). For example, because of its existing management and administrative infrastructure, VABC would need fewer additional staff than a new agency. VABC could need $7–$9 million annually to hire approximately 85 to 105 staff. Creating a new agency could require $9–$12 million annually to hire approximately 110 to 140 staff. VABC would also be able to implement its new responsibilities faster than a new agency.
A new agency would be solely focused on regulating marijuana. In addition, it could more easily provide the appropriate emphasis for a social equity program than VABC, which has a broad range of responsibilities. Moreover, a new agency could be directed to focus solely on regulatory compliance and not have law enforcement responsibilities, if the state prefers this approach.
Taxing commercial marijuana sales would eventually produce substantial revenue
Most states with commercial marijuana markets tax marijuana retail sales, and total taxation is typically between 20 and 30 percent of the retail sales value. Virginia could implement a total combined tax rate of 25 to 30 percent comprising (i) a new 20 to 25 percent marijuana retail sales tax and (ii) the existing 5.3 percent standard sales tax. A total rate of 30 percent would be at the upper end of the range of other states’ marijuana tax rates. Colorado, though, has a combined marijuana tax rate of around 30 percent and has a strong marijuana market. Virginia could also tax easier-to-consume products, such as edibles, and higher potency products at higher rates than marijuana flower.
A legalized commercial market could generate substantial revenue for state and local governments, once the market matures. Depending on demand and the tax rate selected, commercial marijuana could produce $31–$62 million during the first full year of sales, depending on the state’s chosen tax rate (see figure on page v). By the fifth year of sales, commercial marijuana could produce $154–$308 million in tax revenue.
A commercial marijuana market could create thousands of new jobs, many at lower than median wage levels
Virginia’s marijuana industry could eventually create approximately 11,000 to more than 18,000 jobs (0.3 to 0.5 percent of the state’s workforce). These jobs would not be created all at once; it would take several years to reach those employment levels. Marijuana industry employment would most likely be concentrated in the state’s most populous areas.
Jobs in the legal marijuana industry can pay a wide range of wages, but the majority would likely pay below Virginia’s median wage. Retail marijuana businesses would employ “budtenders," who sell marijuana to consumers. Cultivators and processors employ growers, technicians, and “trimmers," who trim and weigh marijuana plants. Given the number of lower wage jobs, the median wage in Virginia’s marijuana industry would probably be less than Virginia’s median wage.
Authorizing and implementing a commercial market would take two or more years, but revenue would far exceed costs after sales start
Depending on exactly how the state implements a commercial market, it would take about two to two-and-a-half years to do so after passing legislation legalizing marijuana. The regulatory agency would need to hire agency staff, draft regulations, and issue licenses. If a new regulatory agency were established, it would need additional time to hire its executive staff and establish basic organizational and administrative functions. Marijuana business license holders would then need to establish their operations.
As a commercial marijuana market matures, retail marijuana sales would produce substantially more revenue than associated state costs. The costs of a state regulatory agency, public health programs, and social equity programs could total approximately $10–$16 million annually. Retail sales would begin, at the earliest, two years after legislation is passed. In the interim, the state regulatory agency could raise several million in licensing fees that could partially offset operational costs. After commercial sales started, marijuana sales tax revenues could cover remaining costs. If the state set the marijuana sales tax at 25 percent, there would eventually be an estimated $177–$300 million in net tax revenue after operational costs ($147–$250 million if the marijuana sales tax rate was set at 20 percent).
RECOMMENDATIONS AND POLICY OPTIONS
JLARC staff developed recommendations and policy options for the General Assembly to consider if it legalizes marijuana. The complete list of recommendations and policy options for consideration is available on page vii.
JLARC staff typically make recommendations to address findings during reviews. Staff also sometimes propose policy options rather than recommendations. The three most common reasons staff propose policy options rather than recommendations are: (1) the action proposed is a policy judgment best made by the General Assembly or other elected officials, (2) the evidence indicates that addressing a report finding is not necessarily required, but doing so could be beneficial, or (3) there are multiple ways in which a report finding could be addressed and there is insufficient evidence of a single best way to address the finding.
Recommendations
RECOMMENDATION 1
If marijuana is legalized in Virginia, the Virginia State Police and Department of Motor Vehicles should work together to train more officers to detect and enforce drugimpaired driving through the Drug Recognition Expert (DRE) and Advanced Roadside Impaired Driving Enforcement (ARIDE) training programs. (Chapter 3)
RECOMMENDATION 2
If marijuana is legalized in Virginia, the General Assembly may wish to consider allowing (i) marijuana possession and use by adults aged 21 and older, (ii) of-age adults to possess up to one ounce of marijuana flower, up to five grams of marijuana concentrate, and marijuana-infused products containing up to 500 milligrams of THC, (iii) of-age adults to possess marijuana paraphernalia, and (iv) of-age adults to share marijuana in amounts that are less than or equal to the possession limits. (Chapter 4)
RECOMMENDATION 3
If marijuana is legalized in Virginia, the General Assembly may wish to consider prohibiting marijuana use in public places, including any place, building, or conveyance to which the public has access and establish a small fine for violations of the prohibition. (Chapter 4)
RECOMMENDATION 4
If marijuana is legalized in Virginia, the General Assembly may wish to consider establishing clear, graduated civil or criminal penalties for possessing quantities of marijuana, concentrates, and infused products over a legal limit. (Chapter 4)
RECOMMENDATION 5
If marijuana is legalized in Virginia, the General Assembly may wish to consider prohibiting marijuana from being given as a gift in conjunction with the sale of another good, service, or membership agreement. (Chapter 4)
RECOMMENDATION 6
If marijuana is legalized in Virginia, the General Assembly may wish to consider prohibiting unlicensed individuals from using dangerous methods such as high heat, pressure, and flammable gases to manufacture marijuana concentrates. (Chapter 4)
RECOMMENDATION 7
If marijuana is legalized in Virginia, the General Assembly may wish to consider prohibiting on public roads and highways the (i) consumption of marijuana products by drivers or passengers in motor vehicles and (ii) the presence of open marijuana containers and partly consumed marijuana in the passenger area of motor vehicles. (Chapter 4)
RECOMMENDATION 8
The General Assembly may wish to consider amending § 18.2-250.1 of the Code of Virginia to clarify that juvenile marijuana possession offenses are delinquent acts that are not subject to (i) the requirement that marijuana possession offenses be charged by summons or (ii) the $25 civil penalty associated with adult marijuana possession. (Chapter 4)
RECOMMENDATION 9
The General Assembly may wish to consider including in any legislation authorizing commercial marijuana sales that the marijuana regulatory body issue licenses for marijuana (i) cultivation, (ii) processing, (iii) distribution, (iv) retail sales, and (v) testing. (Chapter 5)
RECOMMENDATION 10
The General Assembly may wish to consider including a requirement in any legislation authorizing commercial marijuana sales that only state licensed businesses are legally allowed to cultivate, process, distribute, sell, test, or otherwise transport or handle marijuana in amounts greater than the individual legal possession and cultivation limits set in state criminal laws. (Chapter 5)
RECOMMENDATION 11
If marijuana is legalized in Virginia, the General Assembly may wish to consider establishing a commercial licensing structure that either (i) allows vertical integration by authorizing marijuana cultivation and processing license holders to also hold a retail license, or (ii) prohibits vertical integration by forbidding any party that holds a marijuana retail sales license from also holding cultivation or processing licenses. (Chapter 5)
RECOMMENDATION 12
The General Assembly may wish to consider including a requirement in any legislation authorizing commercial marijuana sales that the marijuana regulatory body develop different tiers of cultivation licenses and set maximum size limits for each tier based on cultivation square footage or number of plants under cultivation. (Chapter 5)
RECOMMENDATION 13
The General Assembly may wish to consider including a requirement in any legislation authorizing commercial marijuana sales that (i) marijuana production by licensed cultivators be capped based on estimates of consumer demand, (ii) the marijuana regulatory body establish a regulatory process to annually adjust cultivation limits based on consumer demand, and (iii) the marijuana regulatory body establish the number of medium and large tier cultivator licenses that will be issued each year. (Chapter 5)
RECOMMENDATION 14
The General Assembly may wish to consider including a requirement in any legislation authorizing commercial marijuana sales that the marijuana regulatory body (i) award medium and large cultivator licenses through a lottery, (ii) set stringent qualification standards for applicants for medium and large cultivation licenses, and (iii) require license awardees to meet facility and operations compliance standards before cultivation can begin. (Chapter 5)
RECOMMENDATION 15
The General Assembly may wish to consider including a requirement in any legislation authorizing commercial marijuana sales that the marijuana regulatory body develop tiers or other categories of processor and distributor licenses that allow specialization and minimize the need for applicants or licensees to meet regulatory standards that do not apply to the specific products they are processing or distributing. (Chapter 5)
RECOMMENDATION 16
If the General Assembly authorizes commercial marijuana sales, it may wish to consider directing the marijuana regulatory body to develop estimates of the number of stores each locality could support based on demand and share this information with localities. (Chapter 5)
RECOMMENDATION 17
If the General Assembly authorizes commercial marijuana sales, it may wish to consider authorizing localities to pass ordinances setting caps on the number of marijuana retailers that can be licensed to operate in their jurisdictions and require localities to pass ordinances and report caps to the regulatory body within a reasonable amount of time before the retail applications process begins. (Chapter 5)
RECOMMENDATION 18
If the General Assembly authorizes commercial marijuana sales, it may wish to consider prohibiting home delivery of commercially available marijuana and businesses that allow on-site consumption of marijuana until at least three to five years from when commercial sales begin at retail stores. (Chapter 5)
RECOMMENDATION 19
If the General Assembly authorizes commercial marijuana sales, it may wish to consider (i) requiring commercial marijuana products to be tested for safety and quality by licensed laboratories and (ii) prohibiting businesses that hold a testing license from holding licenses to perform any other commercial marijuana operations. (Chapter 5)
RECOMMENDATION 20
If the General Assembly authorizes commercial marijuana sales, it may wish to consider directing the marijuana regulatory body to develop regulatory standards governing product safety and quality sampling and testing. The standards could be specific to Virginia or could be national or other state standards. (Chapter 5)
RECOMMENDATION 21
If the General Assembly authorizes commercial marijuana sales, and the state adopts its own regulatory standards for product safety and quality, the Division of Consolidated Laboratory Services should develop and administer (i) a marijuana testing certification program that certifies that private laboratories meet Virginia standards, and (ii) its own secondary marijuana product safety testing program for products sold to consumers that the regulatory body suspects are contaminated. (Chapter 5)
RECOMMENDATION 22
If the General Assembly authorizes commercial marijuana sales, it may wish to consider expressly defining local authority in a commercial marijuana market by either (i) authorizing cities, counties, and towns to pass ordinances prohibiting all commercial marijuana operations within their jurisdictions, and thereby forgo any associated tax revenues or (ii) preventing any city, county, or town from using any existing or newly created local authority to prohibit commercial marijuana operations. (Chapter 6)
RECOMMENDATION 23
The General Assembly may wish to consider including in any legislation authorizing commercial marijuana sales affirmation that local governments maintain their full powers to (i) require that commercial marijuana operations meet local zoning requirements, including local requirements for setbacks, signage, and hours of operations, (ii) inspect operation premises for building and fire code compliance, (iii) issue occupancy permits, and (iv) require operations to obtain general business licenses. (Chapter 6)
RECOMMENDATION 24
The General Assembly may wish to consider including in any legislation authorizing commercial marijuana sales the authority for local governments to pass ordinances that restrict the number of licensed marijuana retailers that can operate in each of its zoning districts, in addition to ordinances that set caps on the overall number of marijuana retailers allowed in the locality. (Chapter 6)
RECOMMENDATION 25
If the General Assembly authorizes commercial marijuana sales, it may wish to consider authorizing the issuance of no more than five new medical marijuana licenses in the three to five years following commercial legalization. (Chapter 6)
RECOMMENDATION 26
If the General Assembly authorizes commercial marijuana sales, it may wish to consider merging the medical and commercial marijuana markets and regulations by (i) placing medical market authority under the regulatory body for the commercial market, (ii) generally conforming medical laws to commercial laws, while maintaining necessary medical laws, (iii) directing the regulatory body to generally conform medical regulations to commercial regulations, while maintaining necessary medical regulations, (iv) allowing licensed medical and commercial cultivators, processors, distributors, and testers to serve both the commercial and medical markets, and (v) requiring separate retail licenses for medical and commercial adult use, but allowing retailers to be dual-licensed to serve both markets from the same location. (Chapter 6)
RECOMMENDATION 27
If the General Assembly authorizes commercial marijuana sales, it may wish to consider waiting three to five years before merging the medical and commercial marijuana markets and regulatory structures. (Chapter 6)
RECOMMENDATION 28
If the General Assembly authorizes commercial marijuana sales, it may wish to consider directing the marijuana regulatory body to develop regulations governing (i) the license application process, (ii) license qualifications, (iii) facility and operations compliance, (iv) compliance enforcement, (v) disciplinary process and sanctions, (vi) testing and sampling for product safety and quality, (vii) the legitimacy of marijuana businesses and legality of entering into contracts or providing goods and services to these businesses, and (viii) registration of marijuana business employees. (Chapter 6)
RECOMMENDATION 29
If marijuana is legalized in Virginia, the General Assembly may wish to consider directing the Virginia Foundation for Healthy Youth to coordinate a statewide media campaign targeted at preventing youth marijuana use and appropriating the funds necessary to develop and run the campaign. (Chapter 9)
RECOMMENDATION 30
If marijuana is legalized in Virginia, the General Assembly may wish to consider providing community services boards with an additional $1 to $2 million annually in funding for prevention because of the increased need following commercial legalization of marijuana. (Chapter 9)
RECOMMENDATION 31
If marijuana is legalized in Virginia, the General Assembly may wish to consider directing the marijuana regulatory body to establish regulations for products, packaging, and labeling, including but not limited to (i) product shape and appearance restrictions, (ii) serving size and THC potency limits for edible products (iii) packaging restrictions, (iv) health risk warning labels, and (v) marijuana content and THC potency warning labels. (Chapter 9)
RECOMMENDATION 32
If marijuana is legalized in Virginia, the General Assembly may wish to consider directing the marijuana regulatory body to establish regulations restricting advertising and promotions by licensed marijuana businesses, including restrictions on (i) storefront signage and window displays, (ii) outdoor advertising, (iii) media advertising, and (iv) promotional activities, especially use of social media. (Chapter 9)
RECOMMENDATION 33
If the General Assembly authorizes commercial marijuana sales, it may wish to consider assessing a tax on retail sales of marijuana at a rate of 20 to 25 percent of the sales price, which would be applied in addition to the existing standard retail sales tax. (Chapter 10)
RECOMMENDATION 34
If the General Assembly authorizes commercial marijuana sales, it may wish to consider vesting responsibility for both state and local marijuana sales tax collection with either the Department of Taxation or the marijuana regulatory body and provide the designated agency with the staffing and resources needed to effectively collect taxes and audit taxpayers for compliance. (Chapter 10)
RECOMMENDATION 35
If the General Assembly authorizes commercial marijuana sales, it may wish to consider establishing state regulatory authority by either (i) granting regulatory authority to the Virginia Alcoholic Beverage Control Authority and its board or (ii) creating a new standalone regulatory agency and board solely focused on marijuana regulation. (Chapter 11)
RECOMMENDATION 36
If marijuana is legalized in Virginia, and the General Assembly gives commercial marijuana regulatory authority to the Virginia Alcoholic Beverage Control Authority (VABC) and its board, then it may wish to consider prohibiting VABC board members from having a financial interest in any marijuana business. (Chapter 11)
RECOMMENDATION 37
If the General Assembly gives commercial marijuana regulatory authority to the Virginia Alcoholic Beverage Control Authority (VABC) and its board, then it may wish to consider appropriating sufficient funds to VABC to establish its new regulatory functions. (Chapter 11)
RECOMMENDATION 38
If the General Assembly gives commercial marijuana regulatory authority to the Virginia Alcoholic Beverage Control Authority (VABC) and its board, then it may wish to consider directing VABC to develop and submit a detailed staffing and cost proposal to the governor and General Assembly. (Chapter 11)
RECOMMENDATION 39
If the General Assembly creates a new board and agency to regulate commercial marijuana, it may wish to consider (i) establishing a board appointed by the governor and confirmed by the General Assembly, (ii) requiring board members to have general business, government, or legal expertise, and (iii) prohibiting board members from having a financial interest in any marijuana business. (Chapter 11)
RECOMMENDATION 40
If the General Assembly creates a new board and agency to regulate commercial marijuana, it may wish to consider creating an agency that is either (i) within the executive branch and is headed by a director who is appointed by the governor and confirmed by the General Assembly, or (ii) an independent authority and is headed by a director who is either appointed by the governor and confirmed by the General Assembly or appointed by the board. (Chapter 11)
RECOMMENDATION 41
If the General Assembly creates a new board and agency to regulate commercial marijuana, it may wish to consider appropriating sufficient funds to the new agency to establish its new regulatory functions. (Chapter 11)
RECOMMENDATION 42
If the General Assembly creates a new board and agency to regulate commercial marijuana, it may wish to consider directing the agency to develop and submit a detailed staffing and cost proposal after it is created to the governor and the General Assembly. (Chapter 11)
RECOMMENDATION 43
If the General Assembly authorizes commercial marijuana sales, it may wish to consider vesting the marijuana regulatory board with the powers and duties to (i) promulgate all regulations necessary to ensure a safe and secure commercial marijuana market, including but not limited to regulations regarding licensure and enforcement, (ii) approve or deny licenses, and (iii) suspend, revoke, or otherwise sanction license holders for violations of rules. (Chapter 11)
RECOMMENDATION 44
If the General Assembly authorizes commercial marijuana sales, it may wish to consider vesting the marijuana regulatory agency with the powers and duties to (i) assist the board in the execution of its duties and (ii) perform all licensing and enforcement related functions that are necessary to carry out state laws and regulations related to the operations of the commercial marijuana market. (Chapter 11)
RECOMMENDATION 45
If the General Assembly authorizes commercial marijuana sales, it may wish to consider vesting the marijuana regulatory board with the power to set all fees, including application fees, license fees, and renewal fees. (Chapter 11)
RECOMMENDATION 46
If the General Assembly authorizes commercial marijuana sales, it may wish to consider granting the marijuana regulatory board a limited exemption from the standard rulemaking process. (Chapter 11)
Policy Options to Consider
POLICY OPTION 1
If marijuana is legalized in Virginia, the General Assembly could direct the Department of Criminal Justice Services to convene a workgroup to develop a model marijuana law enforcement officer policy and training curriculum. The workgroup should include commonwealth’s attorneys, public defenders, and state and local law enforcement officers. (Chapter 3)
POLICY OPTION 2
If marijuana is legalized in Virginia, the General Assembly could allow of-age adults to cultivate a small number of marijuana plants at their primary residence out of public view but establish caps to limit the amount cultivated. (Chapter 4)
POLICY OPTION 3
If marijuana is legalized in Virginia, the General Assembly could reduce the severity of penalties for illegal distribution by (i) increasing the amount of marijuana required for a felony distribution charge, and/or (ii) eliminating mandatory minimum prison sentences for marijuana distribution without aggravating factors. (Chapter 4)
POLICY OPTION 4
If marijuana is legalized in Virginia, the General Assembly could reduce the severity of penalties for illegal marijuana manufacturing (cultivation) by increasing the number of marijuana plants required for a felony manufacturing charge. (Chapter 4)
POLICY OPTION 5
If marijuana is legalized in Virginia, the General Assembly could expunge individuals’ criminal records for marijuana offenses that are no longer illegal. (Chapter 4)
POLICY OPTION 6
If marijuana is legalized in Virginia, the General Assembly could direct the Virginia State Police to establish and coordinate an automatic expungement process for criminal records of past marijuana offenses that are no longer illegal. (Chapter 4)
POLICY OPTION 7
If the General Assembly authorizes commercial marijuana sales, it could allow the smallest tier of cultivators to sell their own products at or near their licensed cultivation site without having to obtain a retail license to maximize revenue opportunities for small businesses. (Chapter 5)
POLICY OPTION 8
If the General Assembly authorizes commercial marijuana sales, it could direct the marijuana regulatory body to exempt the smallest tier of cultivators from production caps to increase opportunities for small businesses and address social equity. The regulator could also have the authority to temporarily suspend new license awards if it appears that the market is becoming oversupplied. (Chapter 5)
POLICY OPTION 9
If the General Assembly authorizes commercial marijuana sales, it could direct the marijuana regulatory body to set less stringent qualification standards for small cultivation applicants than for large and medium cultivation applicants and make license awards to all small cultivators who are qualified candidates to increase opportunities for small businesses and address social equity. (Chapter 5)
POLICY OPTION 10
If the General Assembly authorizes commercial marijuana sales, it could increase opportunities for small businesses and address social equity by directing the marijuana regulatory body to (i) set comparatively less stringent qualification standards for retail licenses than are typically set in other states but still require licensees to comply with more stringent requirements before sales begin, (ii) make license awards using a lottery instead of merit-based scoring, and (iii) make license awards gradually over three to five years. (Chapter 5)
POLICY OPTION 11
If the General Assembly authorizes commercial marijuana sales, it could allow localities to require that all marijuana operations within their locality be approved through a special use permit process. (Chapter 6)
POLICY OPTION 12
If the General Assembly authorizes commercial marijuana sales, it could automatically award provisional commercial cultivation and processing licenses to current medical marijuana license holders, contingent upon their operations remaining in compliance with medical marijuana regulations, at the same time awards are made to other cultivators and processors. These provisional licenses could be renewed annually until three to five years after commercial legalization, at which time medical cultivators and processors could be required to comply with commercial market regulations. (Chapter 6)
POLICY OPTION 13
If the General Assembly authorizes commercial marijuana sales, it could allow current medical marijuana license holders to apply for retail licenses with other applicants and limit vertically integrated operations to three licenses. (Chapter 6)
POLICY OPTION 14
If the General Assembly authorizes commercial marijuana sales, it could address social equity by requiring the marijuana regulatory body to impose less stringent initial licensing standards than those that have been commonly used in other states related to (i) ownership or leasing of property prior to a license award, (ii) financial assets, (iii) experience in the marijuana industry, and (iv) security or operations plans. (Chapter 7)
POLICY OPTION 15
If the General Assembly authorizes commercial marijuana sales, it could address social equity by directing the marijuana regulatory body to consider criminal history in reviewing license applications but exclude from consideration any prior misdemeanor marijuana offenses and not automatically deny an application based on other prior criminal offenses. (Chapter 7)
POLICY OPTION 16
If the General Assembly authorizes commercial marijuana sales, it could address social equity by directing the marijuana regulatory body to include a mandatory or optional requirement that applicants for a marijuana license submit a social equity plan along with their application. (Chapter 7)
POLICY OPTION 17
If the General Assembly authorizes commercial marijuana sales, it could address social equity by creating a social equity ownership assistance program consisting of (i) community outreach, (ii) application education and assistance, (iii) licensing fee discounts or waivers, (iv) business start-up assistance, (v) financial assistance through loans, and (vi) mentorship. The assistance program should have clearly defined eligibility criteria for participation. (Chapter 7)
POLICY OPTION 18
If the General Assembly authorizes commercial marijuana sales, it could address social equity by directing the marijuana regulatory body to examine whether a preferential licensing program for retail marijuana licenses could be implemented successfully in Virginia, and, if so, design and implement the program. (Chapter 7)
POLICY OPTION 19
If the General Assembly authorizes commercial marijuana sales, it could address social equity by directing the marijuana regulatory agency to (i) use community outreach efforts to connect marijuana businesses with prospective employees and (ii) request or require businesses applying for marijuana licenses to develop and submit social equity hiring plans. (Chapter 8)
POLICY OPTION 20
If the General Assembly authorizes commercial marijuana sales, it could address social equity by directing the marijuana regulatory agency to apply elements of social equity programs to businesses that sell goods or services to marijuana businesses. (Chapter 8)
POLICY OPTION 21
If the General Assembly authorizes commercial marijuana sales, it could address social equity by dedicating tax revenue from marijuana sales to existing programs that seek to address the needs of communities that have been most adversely affected by the enforcement of drug laws. (Chapter 8)
POLICY OPTION 22
If the General Assembly authorizes commercial marijuana sales, it could address social equity by creating a community reinvestment grant program funded by marijuana tax revenue. The program could make grants to public or nonprofit organizations in communities that have been most adversely affected by the enforcement of drug laws. (Chapter 8)
POLICY OPTION 23
If the General Assembly authorizes commercial marijuana sales and creates a community reinvestment program, the legislature could require the program to have (i) clear guidelines for the number of grants to be awarded annually and the dollar amount of each grant, (ii) clearly defined criteria for grant eligibility, (iii) a well-defined and transparent process for receiving grant proposals and reviewing, scoring, and making grant awards, and (iv) ongoing monitoring and public reporting on the status and outcomes of projects that have received grant awards. (Chapter 8)
POLICY OPTION 24
If the General Assembly authorizes commercial marijuana sales and creates a community reinvestment program, the legislature could require the marijuana regulatory board to create a social equity advisory committee to help implement the program. (Chapter 8)
POLICY OPTION 25
If the General Assembly authorizes commercial marijuana sales and creates social equity programs, it could assign responsibility for implementation of the programs to the marijuana regulatory body and assign responsibility for monitoring programs to the social equity advisory committee. (Chapter 8)
POLICY OPTION 26
If marijuana is legalized in Virginia, the General Assembly could direct the appropriate agencies to conduct media campaigns to raise awareness of the importance of keeping marijuana away from children and the potential negative effects of marijuana use, such as impaired driving, general health risks, and risks for pregnant women and people with a history of mental illness. (Chapter 9)
POLICY OPTION 27
If the General Assembly authorizes commercial marijuana sales, it could assess a marijuana sales tax consisting of progressively higher rates for more potent and easierto-consume products to discourage overconsumption. (Chapter 10)
POLICY OPTION 28
If the General Assembly authorizes commercial marijuana sales, it could apportion revenue collected through a marijuana sales tax between the state and the locality in which retails sale occur (in addition to the existing apportionment of the standard sales tax). (Chapter 10)
POLICY OPTION 29
If the General Assembly authorizes commercial marijuana sales, it could require sales to begin three years from the date that the authorizing legislation is passed. (Chapter 12)
