Virginia

Virginia Guidance on CBD Sales Offers Bright Spot for Industry

The Virginia Department of Agriculture and Consumer Services issued guidance related to in-state processing and sales of CBD products that are intended for human consumption. Virginia’s policy statement is significantly relaxed as compared to the position outlined by New York State recently.

Virginia will treat CBD oil that is intended for human consumption as an approved food ingredient or dietary supplement, and it may be added to food and beverages. Virginia will also allow the import of CBD oil from other states so long as it is produced in accordance with the state’s food laws and regulations.

Only CBD products that are tested may be sold in the state. The products must also be manufactured and labeled in accordance with federal regulations that apply to dietary supplements. Failure to comply with these requirements could result in the state initiating an enforcement action against the violator.

Virginia’s stance on the manufacturing and sales of CBD related products is a bright spot for the industry that has been hamstrung by restrictive policies issued by other states and recent enforcement activity by the US FDA.

5 Things to Know About Virginia's Recreational Marijuana Legalization Bill

The Virginia Legislature introduced HB 2373 which legalizes recreational marijuana and establishes a regulatory framework for the licensing and oversight of marijuana cultivators, retailers, processors, testing labs, transporters and microbusinesses by the Department of Agriculture and Consumer Services. Virginia’s legislation closely resembles Michigan’s new recreational marijuana law.

Below are 5 things that you should know about Virginia’s recreational marijuana bill.

  • The first $20 million in revenue will be earmarked for the Veterans Treatment Fund.

  • A 10 percent sales tax will be imposed on retail marijuana and retail marijuana products sold by retail marijuana stores and microbusinesses, and 30% of the tax revenue will be shared with the counties and cities where the recreational marijuana stores and microbusinesses are located.

  • A person may only have an interest in 5 growing licenses or 1 microbusiness until January 1, 2023.

  • A license may be not be granted if the applicant is not a resident of Virginia.

  • Municipalities may opt in to the recreational marijuana program or local voters can petition for the initiation of an ordinance. Municipal license fees are capped at $5,000.