Virginia Marijuana Wholesaler License

What is a Virginia Marijuana Wholesaler?

A marijuana wholesaler in Virginia is a facility or entity that can purchase or take possession of retail marijuana flowers, products, seeds, and immature plants. A marijuana wholesaler in Virginia must obtain these products from a licensed marijuana cultivation facility, licensed marijuana manufacturing facility, or another marijuana wholesaler. A marijuana wholesaler may also transfer possession, sell, or resell retail marijuana flowers, products, seeds, and immature plants. However, this can only be to a marijuana cultivation facility, a marijuana manufacturing facility, a marijuana retail store, or another marijuana wholesaler.

Does Virginia License Marijuana Wholesalers?

The Commonwealth of Virginia requires persons who want to operate as marijuana wholesalers to obtain a license from the Cannabis Control Authority (CCA). The Virginia Legislature passed Senate Bill 1406 (or House Bill 2312) to legalize the adult use of cannabis in Virginia on July 1, 2021. SB 1406 established the CCA to oversee adult-use cannabis in the state and regulate the various categories of cannabis business operations. However, the implementation of this law has been stalled following a failure to pass the re-enactment clause required to establish the state’s adult-use marijuana program.

When the state’s legislature re-approves the recreational marijuana law, licensed marijuana wholesalers in Virginia can retail marijuana and marijuana products, though not directly to consumers. They are, however, not able to cultivate marijuana plants or manufacture marijuana products by themselves. Marijuana wholesalers must procure their products from a marijuana cultivation or manufacturing facility or another marijuana wholesaler. Virginia adult-use marijuana laws limit the number of available marijuana wholesale licenses to 25 in total.

How To Get a Virginia Marijuana Wholesaler License?

The exact processes for obtaining a marijuana wholesaler license in Virginia have not yet been established by the Cannabis Control Authority (CCA). The CCA is not authorized to adopt regulations for licensing cannabis operations in the state until the state’s legislature re-approves the adult-use marijuana law. However, the law does establish a broad set of regulations for the licensing of all cannabis business operations in Virginia.

Generally, an applicant for a marijuana wholesale license in Virginia will need to complete and submit an application form (to be provided by the CCA) that must include a statement affirming the accuracy of the provided information. If the license requires an inspection from the Department of Agriculture and Consumer Services, the applicant must also provide proof of inspection or a request for an inspection. Facilities will not be able to retail marijuana, marijuana products, seeds, or immature plants without receiving a certification from the Department. Applicants must post a notice of their application on the front of the building where the business will be situated. The notice must be up for a minimum of ten days but no more than thirty days. Applicants will be required to submit to a background check by local law enforcement and pay the application fee and license fee (if applicable).

Applications for marijuana wholesaler licenses in the state will not commence until the state legislature re-approves the implementation of the state’s adult-use marijuana laws. The Cannabis Control Authority (CCA) will inform the public when applications for marijuana wholesaler licenses are available. Residents can sign up on the CCA webpage to receive notifications on the availability of licenses and other relevant updates.

How Much Does a Virginia Marijuana Wholesaler License Cost?

Details on the fees applicable to cannabis business licenses in Virginia have not yet been established by the Cannabis Control Authority (CCA). The CCA is not authorized to adopt regulations on the licensing of cannabis business operations before legislators re-approves Virginia’s adult-use cannabis laws. This is required for the re-enactment of the legislation that sets up cannabis business licensing in the state.

Can a Licensed Marijuana Wholesaler also get other Marijuana Licenses in Virginia?

SB 1406 establishes that “certain persons” in Virginia may be granted multiple marijuana business operation licenses by the Cannabis Control Authority (CCA). However, the statute does not give any further definition of who or what constitutes “certain persons”. The Cannabis Control Authority is expected to provide a proper definition of “certain persons” when it releases regulations on marijuana wholesaler license applications. Virginia adult-use marijuana law statutes try to limit the possibility of vertical integration to encourage the growth of small businesses and social equity applicants.