By Asif Charania, CPA/ABV/CFF, ASA, Partner, Valuation & Forensic Practice Leader
Cannabis in Virginia: Current Status and Proposals
On April 7, 2021, Virginia began the process of legalizing cannabis possession in the Commonwealth. With the enactment of HB2312 and SB1406, criminal penalties were eliminated for simple possession (up to one ounce) by persons 21 years of age or older. The Virginia Assembly also plans to lay the foundation for a three-year process to legalize cannabis and create a regulatory framework for the sale of the product.[1]
Commonwealth of Virginia Cannabis Control Authority
On July 1, 2021, a new state authority was authorized to regulate the industry. According to the Commonwealth of Virginia’s website:
Following the reenactment by the 2022 General Assembly, the Cannabis Control Authority (“CCA”), advised by a Health Advisory Council, will complete regulations, implement a social equity program, and issue business licenses. On January 1, 2024, assuming reenactment, legal sales to adults 21 and older can begin.[2]
Future of Cannabis in Virginia
Our friends over at Gentry Locke Consulting have been providing valuable insights on the future of cannabis in Virginia. Gentry Locke noted that an initial meeting of the Cannabis Oversight Commission was held, and fundamental questions were raised about the future of cannabis law in Virginia. The Joint Legislative Audit and Review Commission (JLARC) presented several recommend changes, which in certain cases, may drastically alter the prospects for potential licensees. Access more details and insights from Gentry Locke here.[3]
Keiter is monitoring the current legal environment around cannabis and its impact on Virginia’s economy and business landscape and will continue to provide up-to-date guidance and industry best practices. Questions on this topic? Contact your Keiter Opportunity Advisor or Email |Call: 804.747.0000
- [1] https://www.cannabis.virginia.gov/
- [2] Ibid.
- [3] https://mailchi.mp/gentrylocke/the-future-of-virginias-cannabis-law-hangs-in-the-balance?e=791c9f1f1e
About the Author
Asif Charania, CPA/ABV/CFF, ASA, Partner, Valuation & Forensic Practice Leader
Asif Charania conducts business valuation services for purposes of financial reporting relating to business combinations and goodwill impairment testing; litigation and shareholder disputes; estate, gift, and income taxes; mergers and acquisitions; employee stock ownership plans; transfer pricing; reorganizations and bankruptcies; marital dissolution; buy/sell agreements; and appraisal reviews. He has experience valuing complex securities such as preferred stock; convertible preferred stock; and employee stock options, warrants, and stock appreciation rights.
He serves clients in a variety of industries including technology, financial, construction, healthcare, retail trade, manufacturing, distribution, wholesale, government contracting, and professional services.
More Insights from Asif CharaniaThe information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
