RICHMOND, Va. (WRIC) – The Democrat-crafted bill setting up a legal retail cannabis market in Virginia appears destined to meet the end of Gov. Glenn Youngkin’s veto pen, but that isn’t stopping Democrats from pushing for it and holding out thin hope.
After coming into the 2024 Virginia General Assembly session with two different approaches, Democrats agreed on a proposal to open a legal marketplace for recreational weed sales in 2025 that’s currently on Youngkin’s desk after passing mostly along party lines.
Sen. Creigh Deeds (D-Charlottesville), one of the 12 lawmakers involved in the state’s budget talks, said Tuesday that he thought Democrats could renegotiate the contract for the arena deal to bring the Washington Capitals and Wizards to Alexandria and leverage some of their legislative priorities, including the legal retail cannabis marketplace, in the process.
“But it wasn’t possible,” Deeds said. “We were advised that the governor wasn’t going to sign the [cannabis market] bill under any circumstance.”
Virginia legalized cannabis in 2021, allowing people 21 and older to possess small amounts. And while Virginians can buy cannabis at dispensaries through the state’s medical program, there’s no way to buy it for recreational use as lawmakers didn’t pass a framework for retail sales.
Deeds cast strong doubt that Youngkin, who continues to say he’s not interested in opening a legal retail cannabis market, would change his mind after negotiators removed the arena plan that the governor prioritized from the state budget. But he said he wasn’t ruling it out entirely.
“I might be surprised,” he said, “but the only way the arena was happening would have been through a compromise on Democratic priorities, and lots of Democratic priorities were not on the table.”
Del. Paul Krizek (D-Fairfax County), the sponsor of the Virginia House’s initial version of the bill — who also worked with Sen. Aaron Rouse (D-Virginia Beach), who carried the Senate’s, on the compromise currently on Youngkin’s desk — said he hasn’t heard from the governor or his administration about the bill.
“I take him at his word, as he has stated publicly, that he has no interest in signing it,” Krizek wrote in an email. “It’s a pity he hasn’t (probably) read it as he would know that it does the opposite of his ‘cannabis shops on every street corner’ statement.”
Krizek was pointing to recent remarks Youngkin made about the cannabis market bill after lawmakers announced a proposed spending plan without language to help finance the proposed $2 billion sports and entertainment district where the Capitals and Wizards would play.
“At the end of the day here we are talking about an opportunity, truly an opportunity, to bring 30,000 jobs [and] $12 billion of economic impact in the commonwealth of Virginia in the fastest growing, most dynamic area — which is sports and entertainment,” Youngkin said on March 7. “And, bluntly, you want to talk about putting a cannabis shop on every corner. I don’t quite get it, honestly.”
Krizek noted that the cannabis marketplace bill, which would allow up to 350 retail stores, “would highly regulate the legal sales of marijuana with strict zoning and licensing which would make it far less ubiquitous than an ABC store (which are only around 400 statewide) as even fewer licenses would be issued.”
Under the bill on Youngkin’s desk, legal retail cannabis sales would start in May 2025 with applications for dispensaries being available starting in September. It would subject products to an 11.625% tax rate (8% for the state, a 2.5% local option and 1.125% towards K-12 education funding).
Krizek said the proposal comes with “race-neutral” license preferences for micro-businesses that are economically disadvantaged, “including persons who’ve suffered hardship or loss due to this country’s war on marijuana.”
Democrats have framed the proposal to open an adult-use retail cannabis market as a way to combat the illicit market, saying it would help boost public safety by setting rules on buying and testing products.
Republicans who spoke against the legislation, like House Minority Leader Todd Gilbert (R-Shenandoah), called the idea of eliminating the illicit market “laughable,” arguing it would only bolster the illegal market and could have consequences for taxpayers.
Krizek, who told the Virginia Mercury the bill was “up in smoke,” said Virginia needs to establish a retail market to ensure the cannabis people consume is safe, tested and taxed.
“Look, Virginia has a $3 billion ticking time bomb: the illegal cannabis market,” he said. “Every day we wait to defuse it is another day our citizens are exposed to deadly products, criminals profiting, and not enough resources to combat underage use.”
Youngkin has until the end of April 8 to take action on the cannabis retail market bill before lawmakers return to Richmond for the General Assembly’s veto session on April 17. Youngkin can sign, veto or recommend changes to the bill. He can also not take any action on it — making it law without his signature.
A spokesman for Youngkin did not share a response for this story by publication.