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Virginia Lawmakers Send Marijuana Legalization Bill To Governor’s Desk Just Hours Before Deadline

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Virginia lawmakers approved a bill to legalize marijuana with just hours left before the deadline to get legislation to the governor this session.

The Senate and House of Delegates approved differing reform proposals earlier this month, and negotiators have since been working to reconcile the bills in conference committee—a contentious process that at times appeared as if it would end without a deal.

But on Saturday, lawmakers agreed to the bicameral compromise plan.

The Senate voted 20-19 to approve the conference committee report on its bill as well as the identical version for the House legislation. The House voted to approve the conference report on its bill, 48-43, with two abstentions. When considering the Senate version, the House voted 47-44, with one abstention.

“It’s been a lot of work to get here,” Sen. Adam Ebbin (D), the lead sponsor of the Senate version of the legislation, said prior to the Senate vote. “But I would say that we’re on the path to an equitable law allowing for responsible adults to use cannabis.”

House Majority Leader Charniele Herring (D), the chief sponsor of the her chamber’s legalization bill, said that “racial justice is about more than addressing penalties for simple possession.”

“It is about reformative justice that provides equitable and social economic opportunity for individuals and communities which have been harmed by disproportionate policing and prosecution of cannabis,” she said. “Legalizing cannabis does not end systematic racism but it does remove one of the tools used in advancing systematic racism.”

The compromise legislation now goes to the desk of Gov. Ralph Northam (D), who supports ending cannabis prohibition.

Among the most pressing issues for lawmakers to negotiate in recent weeks was the timeline for crafting regulations for the cannabis market. The Senate has pushed for a reenactment clause to be included which would extend the process into next session, whereas the House side wanted to complete legislative work during the current session, arguing that enough research has already been done to effectively decide the issue. But Senate negotiators won out, meaning that the legislature will revisit cannabis regulations and post-legalization penalty structures next session.

Another major area of contention dealt with how the state would approach cannabis possession in the time between the bill’s signing and implementation of legal sales going into effect. Under both versions, the adult-use market wouldn’t launch until January 1, 2024 to give the state time to establish a regulatory agency to oversee the program. While the Senate had wanted to make the legalization of simple possession and home cultivation take effect starting on July 1 of this year, negotiators ultimately agreed to delay it to coincide with commercialization in 2024.

In the meantime, under the deal, a new Virginia Cannabis Control Authority will begin work this July to lay the ground for a legal marijuana industry.

Here are some of the other major provisions that were resolved in conference: 

Referendum—The Senate version of the bill would have asked voters to weigh in on legalization through a nonbinding referendum on this November’s ballot. But the issue became increasingly contentious in recent days and conference negotiators decided to drop the idea.

Local control—Whereas the Senate measure called for individual cities to be able to ban marijuana businesses from operating in their area, the House version did not include an opt-out provision. Conferees decided to allow municipalities to elect to ban cannabis commercialization, but they must do so by December 31, 2022.

Penalties for youth—Under the House bill, minors caught possessing cannabis would be subject to a $25 fine with a referral to substance misuse treatment. The Senate, meanwhile, proposed a $250 fine for youth possession for the first offense and then criminal charges and even jail time for subsequent convictions. The agreed-upon final legislation would continue the current approach of treating youth possession as a delinquency, subject to a civil penalty of up to $25, but add a mandatory substance misuse treatment or education program or both. There would be no interaction with courts for such youths. For people between the ages of 18 and 20, the conference deal would continue the existing $25 fee that exists under the state’s decriminalization law and add that they may be ordered to enter a treatment or education program or both.

Social equity—Both versions of the legislation called for licensing priorities for social equity businesses, but there were differences in how each chamber defined what constitutes a social equity applicant. The final legislation defines an equity business as one that has at least 66 percent ownership by people who have been convicted of misdemeanor marijuana offenses (or have family members with such convictions) or people who live in a geographic area that is economically distressed or has a disproportionate rate of cannabis policing. People who graduated from a historically black college or university located in the state would also qualify. Also, beginning on July 1, the state would establish Cannabis Equity Reinvestment Fund and a Cannabis Equity Business Loan Fund.

Vertical integration—The House’s measure would ban vertical integration, a process that would allow a single company could control aspects of growing, processing and selling marijuana products. The Senate, meanwhile, wanted to allow vertical integration only if a cannabis business paid a $1 million fee into a state equity fund. Under the final legislation, vertical integration will be generally limited but will allow existing medical cannabis and hemp businesses to partially vertically integrate. Micro-businesses will also be able to vertically integrate.

In general under the legislation, adults 21 and older would be able to purchase and possess up to one ounce of cannabis and cultivate up to four plants for personal use. It also allows people to petition for suspended or modified sentences for marijuana convictions and establishes criteria for sealing past records.

The bill would set a cannabis excise tax of 21 percent and allow localities to add an additional 3 percent tax on top of the state’s existing 6 percent retail sales tax. Revenue would partly fund pre-K education programs for at-risk youth and would support the new equity funds as well as addiction prevention and treatment services and public health initiatives.


Marijuana Moment is already tracking more than 700 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

The proposal would create a new cannabis-focused state agency to regulate the legal market as opposed to having it fall under the existing alcoholic beverage authority as was the case under the governor’s original plan.

Post-legalization penalties set to go into effect in 2024, which are subject to renewal by the legislature next session, would include a $25 fine for possessing between one ounce and one pound in public. For public consumption, there would be a civil penalty of no more than $25 for first offense. A second offense would come with a $25 civil penalty and an order to enter a substance misuse treatment or education program, or both. Third or subsequent offenses would constitute a Class 4 misdemeanor with no possibility of jail time. Meanwhile, bringing marijuana across state lines would be a Class 1 misdemeanor.

Now that the final bill is headed to Northam’s desk, the governor will have the opportunity to suggest amendments to lawmakers, who can then adopt the suggestions as is or change or reject them, at which point the bill would go back to the governor for final action.

Northam’s spokesperson indicated on Saturday that the governor intends to make some changes to the bill, saying that while its passage is a “major step,” he “looks forward to continuing to improve this legislation.”

Jenn Michelle Pedini, executive director of Virginia NORML, said the bill’s passage “is another historic step for cannabis justice” that will “replace the failed policy of cannabis prohibition with one that promotes Virginia’s economy as well as Virginians’ public health and safety.”

“This effort remains a work in progress and our efforts in Virginia are far from over,” Pedini, who also serves as NORML’s national development director, said. “NORML is dedicated to continuing our work with lawmakers and regulators to advance legislative reforms that are most closely aligned with the views of the majority of Virginians who desire a safe, legal cannabis market. In particular, we hope to expedite the timeline with which Virginia adults will no longer face either criminal or civil penalties for the personal possession and cultivation of cannabis.”

Matt Simon, senior legislative analyst for the Marijuana Policy Project, said it’s “exciting that Virginia is on track to end cannabis prohibition and replace it with sensible regulation.”

“Lawmakers in other states are already taking notice and seeking to learn from Virginia’s example,” he said.

Earlier on Saturday, the ACLU of Virginia and other groups had urged lawmakers to defeat the final proposal prior to the release of its actual text, saying that the provisions as described in media reports showed it to be a “symbolic marijuana legalization bill made behind closed doors that does not advance the cause of equal justice and racial justice.”

The Virginia NAACP argued that the bill, based on press accounts, “includes Systemically Racist probable cause provisions” and pledged that its members “will not stand by while Jim Crow’s sister Jane tries to creep her way into Virginia law.”

But after the bill’s text came out, NAACP issued an updated statement saying that while the final legislation “is not perfect, it’s a step in the right direction.”

The ACLU, for its part, maintained its opposition, saying that lawmakers “failed to legalize marijuana for racial justice” and “paid lip service to the communities that have suffered decades of harm caused by the racist War on Drugs with legislation that falls short of equitable reform and delays justice.”

All of this legislative action comes a little over a month after Northam and top lawmakers initially unveiled their legalization proposal.

The cannabis legislation’s structure was informed by separate studies conducted by a legislative research body and a working group made up of state cabinet officials.

Support for legalizing marijuana is strong in Virginia, according to a poll released this month. It found that a majority of adults in the Commonwealth (68 percent) favor adult-use legalization, and that includes most Republicans (51 percent).

The legislature has also taken up a number of other more modest cannabis reform proposals this session.

Bills to allow medical patients to access whole-flower cannabis in addition to oils, facilitate automatic expungements for certain marijuana convictions, protect employment rights of medical cannabis patients and allow those in hospice and nursing facilities to access medical marijuana have also advanced this session.

Virginia lawmakers passed separate legislation last year that decriminalized possession of up to an ounce of marijuana, replacing existing penalties with a $25 civil fine and no threat of jail time. The law took effect last July.

Read a summary of the provisions of the Virginia marijuana legalization conference report below:

Virginia Marijuana Legalization Conference Details by Marijuana Moment on Scribd

New Mexico House Approves Marijuana Legalization Bill, With Senate Action Imminent

Photo courtesy of Philip Steffan.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

Tom Angell is the editor of Marijuana Moment. A 20-year veteran in the cannabis law reform movement, he covers the policy and politics of marijuana. Separately, he founded the nonprofit Marijuana Majority. Previously he reported for Marijuana.com and MassRoots, and handled media relations and campaigns for Law Enforcement Against Prohibition and Students for Sensible Drug Policy. (Organization citations are for identification only and do not constitute an endorsement or partnership.)

Politics

Another Poll Shows Majority Of Americans Support Marijuana Legalization And Expungements

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Another poll has found that a majority of Americans support legalizing marijuana and clearing the records of those with prior cannabis convictions.

This one—commissioned by CBS News and released on the unofficial marijuana holiday 4/20—shows that 55 percent of respondents said recreational cannabis should be legal in their own state, compared to 42 percent who said it should be illegal.

While still a sizable majority, that’s notably lower than several other recent surveys, including those released by Quinnipiac University and the Pew Research Center this month. Those polls found that 69 percent and 60 percent of Americans back broad legalization, respectively.

Unique to this poll, however, is that participants were also asked about related cannabis issues. For example, 59 percent of adults said that people with non-violent marijuana convictions in states that have legalized should have their records cleared, versus 37 percent who said the conviction shouldn’t be expunged.

Among those who were surveyed and live in a legal marijuana state, 60 percent said they favor the policy. And 53 percent of those living in states where prohibition is still on the books said cannabis should be legalized.

Via CBS News.

Twenty-three percent of respondents said legalizing cannabis would increase crime and 19 percent said it would decrease crime—but the majority (54 percent) said it would have “no effect.”

Via CBS News.

CBS also asked respondents whether they felt legalizing marijuana would lead people to use other drugs. Most people (45 percent) said the reform would have “not much effect” to that end, while 33 percent said they felt more people would seek out other substances and 17 percent said it would make people less likely to try other drugs.

Via CBS News.

Nearly half of Americans (48 percent) said legalization would boost local economies, while 14 percent said it would have a negative economic impact and 35 percent said it wouldn’t have much of an effect at all.

Via CBS News.

Interestingly, while most people backed legalization in the poll, 53 percent said that openly using marijuana socially is “unacceptable,” compared to 43 percent who said it was “acceptable”—perhaps more a reflection of respondents’ perception of other people’s views than their own.

The poll involved interviews with 1,004 adults from March 9-14 and has a margin of error of plus or minus 3.7 percentage points.

Despite this latest example of polling showing that Americans favor ending prohibition, President Joe Biden is still not on board with extending that policy to the federal level, as confirmed again by the White House press secretary on Tuesday.

While the president says he supports allowing states to set their own policies, he feels it should only be decriminalized and rescheduled federally and wants more research to be done if he’s to change his position on broader reform.

This poll comes at a time when there’s a concerted push in both chambers of Congress to seize the opportunity they have with Democratic control to pass legalization legislation.

Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ) have been working on a bill on their side. The majority leader told Marijuana Moment on Monday that he’s working to push the president in a pro-legalization direction as they draft the measure.

Schumer said last week that the legislation will be introduced and placed on the floor “soon.”

On the House side, Judiciary Chairman Jerrold Nadler (D-NY) said recently that he plans to reintroduced his legalization bill, the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, which cleared the chamber last year but did not advance in the Senate under GOP control.

Biden Won’t Commit To Sign Marijuana Bill If Passed By Congress, Press Secretary Says

Photo courtesy of Mike Latimer.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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New House Bills Would Make Cannabis Businesses Eligible For Federal Small-Business Aid

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Lawmakers in the U.S. House of Representatives have introduced three new bills to make state-legal marijuana businesses eligible for federal small business services, including loans, disaster relief and grant programs.

The package of legislation is aimed at establishing parity for cannabis businesses, which are currently prohibited from receiving federal aid due to marijuana still being classified as a Schedule I controlled substance. The country’s legal cannabis industry nevertheless now supports nearly 320,000 full-time jobs in the U.S., according to industry estimates.

The measures are largely similar to legislation introduced by the lawmakers in 2019, with some small changes.

One bill, sponsored by House Small Business Committee Chairwoman Nydia Velázquez (D-NY), would allow marijuana businesses to access resources from the federal Small Business Administration (SBA). The Ensuring Safe Capital Access for All Small Businesses Act of 2021, which had not been assigned a bill number as of Tuesday afternoon, would expand access to services such as microloans, disaster assistance and the agency’s loan guaranty program.

“With more and more states pursuing legalization, including my home state of New York, there are a growing number of legitimate small businesses that are excluded from critical SBA programs,” Velázquez said in a statement, noting that much of the cannabis industry consists of small businesses.

Compared to Velázquez’s 2019 bill, the new version adds clauses meant to expand the availability of services. While the 2019 bill applied to SBA itself, provisions in the new legislation also prevent SBA intermediaries, private lenders and state and local development companies from declining to work with businesses simply because of their marijuana-related work.

Another new section deals with debentures—certain unsecured loan certificates—and clarifies that SBA may not decline to purchase or guarantee a debenture just because of a business’s involvement in cannabis. Nor can other small business investment companies decline to provide assistance to the cannabis sector.

“This legislation will spark growth by extending affordable capital to small firms in the cannabis space,” she continued. “Simultaneously, the bill acknowledges the structural disadvantages facing entrepreneurs of color and seeks to level the playing field.”

Another newly refiled measure, H.R. 2649, sponsored by Rep. Dwight Evans (D-PA), would establish a U.S. Small Business Administration (SBA) grant program to provide funding to state and local governments to help them navigate the licensing process for cannabis businesses. The bill, which also removes marijuana from the Controlled Substances Act, specifies that the grant money should be used to benefit communities disproportionately impacted by the drug war.

“My bill would act as a poverty-buster and help homegrown small businesses, which are the backbone of our economy and our neighborhoods. We need to make sure that the booming legal cannabis industry does not become consolidated in the hands of a few big companies,” Evans said.


Marijuana Moment is already tracking more than 1,000 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

A third bill, H.R. 2649, from Rep. Jared Golden (D-ME), would prohibit SBA partners that provide guidance and training services from denying help to businesses solely because of involvement in cannabis. The changes would affect providers such as SBA’s Small Business Development Centers, Women’s Business Centers and the Veterans Business Outreach Centers, among others.

“Our continued economic recovery depends on the health of American small businesses of all kinds. Especially in this environment, no Maine small business owner should be turned away from crucial SBA programs that could help them create jobs and lift up the economy,” said Rep. Golden. “My bill would help address this problem by providing small business owners directly or indirectly associated with the cannabis industry with access to the services and resources they need to get their small businesses off the ground and grow.”

Meanwhile, federal lawmakers have been making headway on other cannabis-related proposals. The House passed a cannabis banking bill on Monday, and broader legislation to legalize cannabis at the federal level is expected to be introduced soon.

The banking legislation would ensure that financial institutions can take on cannabis business clients without facing federal penalties. Fear of sanctions has kept many banks and credit unions from working with the industry, forcing marijuana firms to operate on a cash basis that makes them targets of crime and creates complications for financial regulators. The full House passed the bill on a 321–101 vote.

“Even if you are opposed to the legalization of cannabis, you should support this bill,” sponsor Rep. Ed Perlmutter (D-CO) said on the House floor. “The fact is that people in states and localities across the country are voting to approve some level of cannabis use, and we need these cannabis businesses and employees to have access to checking accounts, payroll accounts, lines of credit, credit cards and more.

Other Democrats, including Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ) are working on legislation that would end federal cannabis prohibition completely.

Schumer said last week that the long-awaited proposal would be introduced “shortly” and placed on the floor “soon.” Schumer has so far declined to discuss the bill’s specifics, though he’s stressed that it will prioritize small businesses and people most historically impacted by the drug war.

In an interview with Marijuana Moment this week, Schumer worried that passage of the House banking bill could actually undermine broader congressional cannabis reform this year.

On the House side, Judiciary Chairman Jerrold Nadler (D-NY) said recently that he plans to reintroduced his own legalization bill, the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, which cleared the House in a landmark vote last year but did not advance in GOP-controlled the Senate.

Meanwhile, support for legalization among U.S. voters continues to grow. More than 9 in 10 Americans (91 percent) now support legalizing cannabis for either medical or adult use, according to a Pew Research Center poll released on Friday. Sixty percent of respondents said that cannabis should be legal for both medical and adult use. Thirty-one percent said it should be legalized for therapeutic purposes only, while just eight percent said it should continue to be criminalized across the board.

A majority of those in every age, race and political demographic included in the poll said they feel marijuana should be legal in some form, although many Republicans remain wary of adult-use legalization. Seventy-two percent of Democrats favored both medical and adult-use legalization compared to only 47 percent of Republicans.

Among the minority in opposition to federal legalization: President Joe Biden (D). White House Press Secretary Jen Psaki said last month that the president’s position on the issue “has not changed,” meaning he still opposes the reform. on Tuesday, Psaki refused to say whether Biden would sign or veto a cannabis legalization bill if passed by Congress.

The president instead backs modestly rescheduling the plant, decriminalizing possession, legalizing medical cannabis, expunging prior marijuana records and letting states set their own policies.

Read the full text of the new legislation below:

Ensuring Safe Capital Access for All Small Businesses Act of 2021 by Marijuana Moment on Scribd

Ensuring Access to Counseli… by Marijuana Moment

Homegrown Act by Marijuana Moment on Scribd

Schumer Worries Senate Marijuana Banking Vote Could Undermine Broader Legalization Push

 

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Biden Won’t Commit To Sign Marijuana Bill If Passed By Congress, Press Secretary Says

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White House Press Secretary Jen Psaki on Tuesday declined to say whether President Joe Biden would sign or veto a bill to federally legalize marijuana if it arrives on his desk, noting that his cannabis policy position is at odds with broader proposals that congressional Democratic leaders are working on.

She was also asked about his stance on marijuana banking reform, the disconnect between public opinion favoring legalization and the president’s opposition and whether Biden plans to revisit clemency applications for those facing federal sentences over cannabis.

The noncommittal response to the legalization question comes on the unofficial cannabis holiday 4/20—a day that has seen a wide range of politicians, including Senate Majority Leader Chuck Schumer (D-NY), voice support for comprehensive marijuana reform.

Psaki was pressed on the Senate leader’s remarks and asked whether Biden would support legislation to end federal cannabis prohibition if Congress approved it.

“The president supports leaving decisions regarding legalization for recreational use up to the states, rescheduling cannabis as a Schedule II drug so researchers can study its positive and negative impacts and, at the federal level, he supports decriminalizing marijuana use and automatically expunging any prior criminal records,” she said. “He also supports legalizing medicinal marijuana so that’s his point of view on the issue.”

Biden’s positions to that end are well known, but an outstanding question has been whether his opposition to adult-use legalization is so strong that he would reject a reform proposal such as those currently being drafted in the House and Senate.

Asked directly what action the president would take if a federal legalization bill was sent to his desk, Psaki signaled that he wouldn’t be inclined to sign it, stating “I just have outlined what his position is, which isn’t the same as what the House and Senate have proposed, but they have not yet passed a bill.”

The reporter followed up to ask about a separate cannabis pledge Biden made as a presidential candidate, when he said people incarcerated in federal prisons over non-violent marijuana offenses should be released.

Psaki said that would be addressed if cannabis was rescheduled to Schedule II—a dubious claim given that there are still serious penalties for offenses involving substances in that category as well. She also didn’t provide any insight into whether the president is proactively pushing for the modest scheduling change.

Later in the briefing, the press secretary was asked where Biden stands on legislation to protect banks that service state-legal marijuana businesses from being penalized by federal regulators. The House approved the Secure and Fair Enforcement (SAFE) Banking Act along bipartisan lines on Monday.

She said it was a “good question,” but she wasn’t sure and told the reporter she would follow up with a response later.

When pushed on Biden’s opposition to the legalization in the face of mounting, majority support among Americans, Psaki said that while he’s in favor of decriminalization and legalizing medical marijuana, he wants more research on the “positive and negative effects” of adult-use legalization.

“He’ll look at the research once that’s concluded,” she said. “Of course we understand the movement that’s happening toward it. I’m speaking for what his position is and what long, consistently has been his position. He wants to decriminalize, but again, he’ll look at the research of the positive and negative impacts.”

The press conference ended with a final question about cannabis policy—specifically whether the Biden administration plans to revisit requests for clemency for federal cannabis convictions. The reporter cited the case of Luke Scarmazzo, who was sentenced to 22 years in federal prison for operating a state-legal medical cannabis business in California, as an example.

“Given, as you’ve noted in the briefing, the president’s support for decriminalization, support for expunging exactly these types of offenses, are there any plans to revisit some of those bids for clemency?” the reporter asked.

“Well, I would just take it as an opportunity to reiterate that the president supports legalizing medicinal marijuana,” Psaki said. “It sounds like this would have been applicable in this case, and of course decriminalizing marijuana use and automatically expunging any prior criminal records. In terms of individual cases, I can’t get ahead of those obviously.”

These question come, of course, on 4/20. But they also come at a time when there’s a concerted push in both chambers of Congress to seize the opportunity they have with Democratic control to pass legalization legislation.

Schumer, Senate Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ) have been working on a bill on their side. The majority leader told Marijuana Moment on Monday that he’s working to push the president in a pro-legalization direction as they draft the measure.

Schumer said last week that the legislation will be introduced and placed on the floor “soon.”

On the House side, Judiciary Chairman Jerrold Nadler (D-NY) said recently that he plans to reintroduced his legalization bill, the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, which cleared the chamber last year but did not advance in the Senate under GOP control.

Schumer Worries Senate Marijuana Banking Vote Could Undermine Broader Legalization Push

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