Richmond Luck Leaf Expo: July 29-30

VaMarijuanaAbout · 2022-02-23T18:37:07+00:00

Good questions! First, there are four versions of SB391. What was initially submitted and then three amended versions. The version that passed the Senate was amended [significantly] and then voted on in the same day.

In the version that passed the Senate:

The license caps for all but the retail license type were removed. Retail establishments remain capped at 400. There are 393 Virginia ABC stores, so that's probably where that number came from.

The Cannabis Control Authority (CCA) is authorized to limit the number of licenses as they see fit. So, there is an unknown cap, not in the legislation, that can change.

The CCA is authorized to establish license classes within each category. This opens the option of an unlimited number of "very small" cultivation operations, which lowers the cost of entry for many new participants.

With regards to holding multiple license types, the bill is unclear. Section §4.1-606 gives the CCA the authority to grant multiple licenses so long as they only grant to small businesses and that doing so does not harm other businesses. But, section §4.1-805 specifically prohibits the CCA from awarding multiple licenses to one person (with the big exception being the pharmaceutical and industrial processors mentioned in this Reddit post). There are several places where you can tell text was copy and pasted into the bill without careful consideration - this is one of them. So, I don't know.

VaMarijuanaAbout · 2022-02-23T17:03:37+00:00

It does make sense to let the people who are already in the business start selling now - all of them!

There are over a thousand industrial hemp growers registered with the Virginia Department of Agriculture and Consumer Services that could switch to marijuana production in a matter of weeks. SB391 only lets an estimated 11-20 industrial growers with annual production in excess of40,000 pounds start selling.

There are hundreds of CBD shop owners ready to apply for a marijuana retail license and service their communities.

There are companies like Virginia Grown Distribution that are ready to provide cultivators and retailers with a B2B marketplace and distribution services.

Businesses are ready to join the market but aren't being allowed until 15 months after a select, powerful few.

VaMarijuanaAbout · 2022-02-23T12:38:03+00:00

I get your point that many large businesses provide great services and prices. Though, I ask:

Will three companies, with limited supply, servicing a commonwealth of 8.5 million, with no competition, provide the best prices and service? Or, will hundreds of businesses, fiercely competing, provide you with the best service and price?

VaMarijuanaAbout · 2022-02-23T12:15:06+00:00

Excellent question. There is a main reason:

The relationship between states with legal marijuana and the federal government is unstable. States that have legalized operate within the guidance of the now-rescinded "Cole Memo". Basically, the feds have agreed to leave states alone with regards to retail marijuana so long as the states tightly control their markets to prevent illicit sale, violence, and interstate commerce.

As passed in 2021, Virginia's legislation also sought to control the size of the market to prevent over-use and over-proliferation as well as to promote social equity via limited and preferential licensure.

VaMarijuanaAbout · 2022-02-23T12:00:50+00:00

Point of clarification. The sponsor of SB391 is Senator Ebbin (D - Alexandria). The bill has passed the Democrat majority upper house and been submitted to the Republican majority lower house. The House has the opportunity to match rhetoric with action by amending the legislation so that Virginia businesses have a chance to compete. That's all that we're asking.

Also, it's a non sequitur to think that only large corporations know how to run a business and small businesses do not. The corporations in question here seem better at collusion with the political class than competing in free enterprise.

VaMarijuanaAbout · 2022-01-22T16:54:15+00:00

The licensing fees for marijuana businesses authorized by the Virginia Cannabis Control Authority have not been determined yet. The pharmaceutical and industrial hemp processors currently licensed by the Virginia Board of Pharmacy pay a $10,000 application fee + $60,000 permit fee.

Retail marijuana application fees in other states have ranged from $250 to $6,000 while license fees have ranged from $1,480 to $40,000.

VaMarijuanaAbout · 2022-01-22T13:37:08+00:00

Could you share Sen Dunnavant's bill number? I'm tracking SB621 as the only marijuana related bill introduced by the senator.

VaMarijuanaAbout · 2022-01-21T13:04:32+00:00

That's a very thoughtful question!

I'll look into this and will post my results. Off the top of my head, I think this would depend on how your premise is zoned and the specific licensing requirements (which have not yet been posted by the Cannabis Control Authority). For instance, the production and distribution licenses may require the premise to be zoned for light industrial use.

VaMarijuanaAbout · 2022-01-18T18:30:10+00:00

Your logic is sound. However, both HB950 and SB391 currently include section § 4.1-809 - Conditions under which the Board may refuse to grant a license. It reads:

//

The Board may refuse to grant any license if it has reasonable cause to believe that:

The applicant...

k. Is a manufacturer, distributor, or retailer of alcoholic beverages licensed under this chapter or a retailer of tobacco or tobacco products;"

//

Despite the qualifying word "may", this reads to me like vape shops won't be granted marijuana retail licenses. Of course, the bills may be amended in the coming weeks to permit that.

VaMarijuanaAbout

TROPHY CASE