ENVIRONMENTAL & SOCIAL JUSTICE
Cannabis In The D-M-V
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nabis oils derived from strains of cannabis with low levels of delta-9 THC (no more than 5%) and high levels of CBD or THC-A (at least 15%) from 1 of 5 licensed “Pharmaceutical Processors”. These Pro - cessors are vertically integrated, which means they can cultivate, process and dispense cannabis by delivering it to patients. Gover - nor Northam recently signed a bill that would permit Pharmaceuti- cal Processors to dispense cannabis flower along with cannabis oil. Virginia’s foray into the world of regulated cannabis proved to be a harbinger of good things to come. In February 2021 both chambers of Virginia’s General Assembly passed an adult use cannabis legalization bill, which was signed by the Governor on April 21, 2021. Beginning on July 1, 2021, adults (21 and over) in Virginia will be allowed to pos - sess up to one ounce of cannabis or an equivalent amount of canna- bis products (like concentrates, oils, edibles, etc.), transfer one ounce of cannabis to another adult, and cultivate no more than 4 cannabis plants in their principal residence. Possession of more than one ounce of cannabis but less than one pound will be a $25 fine. However, keep in mind that, under the new law, possession of over one pound of can- nabis is considered a felony that could garner 1 to 10 years in prison. The Virginia bill resembles I-71 in the District, however there are a few significant distinctions. First, the law explicitly prohibits a business from transferring cannabis to an individual, which closes the gifting loophole that gray market businesses in the District exploit. Second, Virginia is not prohibited from allocating state funds to regulate adult- use cannabis (like the District) and the Cannabis Control Authority (“CCA”), the government entity responsible for regulating Virginia’s cannabis market, will be created on July 1, 2021. The CCA could be tasked with ensuring that law enforcement implements the possession and transfer restrictions prior to the start of the regulated market. The regulated market is expected to become operational in July 2024, which means the Board of Directors of the CCA is expected to release license applications sometime in 2023. The regulated program will be robust. There will be 2 classes of cultivators, processors, dis - pensaries, wholesalers and vertically integrated microbusinesses. The Board of Directors will establish the number of licenses available in each category, but these numbers can not exceed 400 dispensaries, 25 wholesalers, 450 cultivators and 60 processors. The regulated market will address social equity by prioritizing those applicants that have an ownership teamwith 66% representation of individuals that have had a prior cannabis conviction, have a close family member with a cannabis conviction, lives in an area that is considered economically distressed or who has graduated from a Historically Black College or University located in Virginia. Advocates will be pushing for the July 2024 start date for a regulated adult use program to be moved forward, so stay tuned to find out when cannabis sales will be permitted in Virginia. Meredith Kinner and John McGowan are the manag- ing partners of Kinner & McGowan, PLLC, a boutique can- nabis-focused law firm based in Washington, D.C. K&M ad - vises businesses in the hemp, medical cannabis and adult-use cannabis space in Washington, D.C., Maryland, and Virginia. Follow K&M on twitter @KMcannalaw. For credible cannabis news check out The Outlaw Report at www.outlawreport.com.
PATHWAYS—Summer 21—79
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