What Are the Cannabis Licensing Requirements in Virginia? (May 2024)

In recent years, Virginia has emerged as a trailblazer in the world of cannabis legalization. With significant changes in legislation since 2017, the state has transitioned from a strict stance on marijuana to embracing both medical and recreational use. This blog will take you through the key milestones and cannabis licensing requirements in the Commonwealth of Virginia.

Medical Cannabis in Virginia

The shift towards a more lenient approach to cannabis in Virginia began in 2017. That year, the state made a significant move by discontinuing the automatic suspension of a person's driver's license for six months following a conviction for marijuana possession. This change marked the beginning of a more progressive attitude towards cannabis-related matters.

In the same year, Virginia also legalized the medical use of CBD (cannabidiol), another crucial step in the state's evolving cannabis landscape. These early changes set the stage for what was to come in the years ahead.

2017 was a pivotal year for cannabis in Virginia, as it saw the establishment of a comprehensive medical marijuana law. Codified in the Virginia Code Annotated § 54.1-3442.1 et seq., this law aimed to provide relief to patients suffering from terminal illnesses.

Under this legislation, patients with terminal illnesses could be prescribed cannabis extracts containing no more than 10 milligrams of THC (tetrahydrocannabinol) per dose. The introduction of medical cannabis offered new hope and treatment options for patients facing life-threatening conditions.

The progress did not stop in 2017. In February 2021, Virginia's legislators passed a bill that further expanded access to medical cannabis. This new legislation allowed dispensaries to provide unprocessed marijuana flower to patients, offering more choices in treatment.

To access medical cannabis in Virginia, both patients and providers were required to register through the Virginia Board of Pharmacy and pay a $50 registration fee. These measures ensured that the distribution of medical cannabis was regulated and safe for patients in need.

Adult-Use Legalization in 2021

Virginia made history on April 7, 2021, by becoming the first Southern state to legalize adult-use marijuana. This monumental decision came with the passage of HB 2312 and SB 1406, which officially allowed individuals aged 21 and older to possess up to one ounce of cannabis.

In addition to possession, adults were granted the right to grow up to four cannabis plants. To maintain accountability and traceability, these plants were required to be tagged with the grower's identifying information. Virginia's Cannabis Control Authority was granted the power to issue business licenses, setting the stage for a regulated cannabis market.

On the one-year anniversary of adult-use legalization in Virginia, July 1, 2022, Governor Glenn Youngkin signed the 2022 budget bill. This legislation introduced a noteworthy adjustment by recriminalizing activities involving the personal possession of over four ounces of marijuana in public.

Under the new law, such activities are classified as a Class C misdemeanor, subject to a $500 fine for the first offense. Subsequent offenses can result in more severe penalties, including up to six months in jail and/or a $1,000 fine.

Cannabis Licensing Requirements in Virginia

The adult-use cannabis laws in Virginia include provisions for the commencement of retail sales. Starting on July 1, 2024, authorized retail sales of adult-use cannabis will begin. This timeline allows for the establishment of a regulatory framework that covers cultivation, processing, transportation, and sales of cannabis in the state.

Medical cannabis in Virginia is subject to regulation by the Board of Pharmacy, while adult-use cannabis will be overseen by the Virginia Cannabis Control Authority.

Types of Cannabis Cultivation Licenses in Virginia

A marijuana cultivation facility license in Virginia grants the license holder several rights and responsibilities, including the ability to:

• Cultivate, label, and package marijuana.
• Purchase and possess marijuana seeds and plants from other licensed cultivation facilities.
• Transfer possession and sell marijuana flowers, immature plants, and seeds to other cannabis businesses.
• Sell immature plants and seeds to consumers for personal cultivation.

Virginia's Cannabis Control Authority issues two classes of marijuana cultivation facility licenses:

• Class A marijuana cultivation facility license: This class of license authorizes the holder to either cultivate a specific number of marijuana plants or cultivate marijuana plants within a specified area, not exceeding 1,500 square feet. The exact number of plants and cultivation area will be determined by the board of the Cannabis Control Authority (CCA).
• Class B marijuana cultivation facility license: This class of license authorizes the holder to cultivate marijuana plants with THC concentrations of no more than 1%, as determined post-decarboxylation.

Presently, the only legal means of cultivating marijuana for commercial purposes in Virginia is through the possession of a Pharmaceutical Processor permit. This permit is in accordance with the medical marijuana regulations in the state and enables eligible residents and entities to grow and maintain up to 12 cannabis plants for each of their patients.

Eligibility for Cultivation

Virginia's marijuana laws do not impose restrictions on who can engage in marijuana cultivation, provided that the individual or entity holds a valid cultivation facility or pharmaceutical processor license. The state has adopted a social equity focus, with the goal of addressing the historical disparities in cannabis-related law enforcement.

To qualify for social equity status in Virginia, applicants must meet certain criteria:

• Reside in the Commonwealth of Virginia for a specific duration.
• Have a significant ownership stake (at least 66%) from individuals who have been convicted of marijuana-related misdemeanors.
• Be located in areas disproportionately affected by marijuana-related crimes.
• Have resided in economically distressed areas for a set period.
• Graduate from Historically Black Colleges and Universities (HBCUs) in Virginia.

Social equity applicants will receive preferential treatment in the application process, and authorities may waive a percentage of their application fees. These measures aim to promote inclusion and rectify the disproportionate impact of cannabis laws on certain communities.

Application Process for Cultivation Licenses

To apply for a marijuana cultivation facility license in Virginia, interested individuals and entities should follow these steps:

• Apply with the Cannabis Control Authority: Submit your application along with the required documents and pay the applicable fee. You'll also be required to confirm the accuracy of the information provided.
• Undergo a background check by local law enforcement.
• Notify the public of your application by posting it on your proposed business location for a specified period.
• Issue a public notice in a local newspaper for two weeks, once a week.
• Maintain accurate record-keeping as stipulated by the regulations.

The Cannabis Control Authority will provide information about when applications for marijuana cultivation facility licenses are available. Interested residents can sign up on the CCA's webpage to receive notifications regarding license availability and updates.

For those looking to cultivate marijuana in Virginia currently, the process involves obtaining a Pharmaceutical Processor permit from the Board of Pharmacy. These amendments to medical marijuana laws allow pharmaceutical processors to engage in commercial cultivation of cannabis plants.

To obtain a Pharmaceutical Processor permit, submit a completed Application for a Pharmaceutical Processor Permit Form, along with required documents. The application should be submitted in both hard and soft copy formats to the Department of Health Professions, Board of Pharmacy.

A non-refundable application fee is also applicable. Pharmaceutical processor permits are valid for one year and must be renewed annually.

Cost of Marijuana Cultivation Licenses

As of now, the Cannabis Control Authority (CCA) has not disclosed the fees associated with recreational marijuana cultivation facility licenses. This information is pending the state legislature's re-approval of the law legalizing adult-use marijuana sales.

For Pharmaceutical Processor permits, which allow the cultivation of medical marijuana, a $10,000 application fee applies. Successful applicants are also required to pay a $60,000 fee before they receive their permits. These permits are valid for one year and must be renewed annually, with a renewal fee of $10,000.

License Flexibility for Cultivators

Virginia's adult-use cannabis laws empower the Cannabis Control Authority (CCA) to grant multiple cannabis license categories to “certain persons.” While the specifics of what constitutes “certain persons” are yet to be clarified, it's expected that the CCA will provide more guidance when adopting regulations for cannabis business licensing.

On the other hand, a Pharmaceutical Processor permit enables licensees to both cultivate cannabis plants and process them into various products, including concentrates, edibles, and beverages.

As the landscape of cannabis cultivation evolves in Virginia, it's clear that the state aims to accommodate a diverse range of participants in its burgeoning cannabis industry. Stay informed for updates on licensing regulations and the expanding cannabis market in the Commonwealth of Virginia.

Conclusion

As Virginia continues to navigate the complexities of cannabis legalization, these legislative developments demonstrate the state's commitment to evolving its cannabis regulations to best serve its residents. The journey from medical cannabis to full adult-use legalization has paved the way for a dynamic and regulated cannabis industry in the Commonwealth of Virginia. Stay tuned for further updates on the state's evolving cannabis landscape.