                                 CODE OF VIRGINIA

REGULATIONS OF THE BOARD (§ 4.1-606)

A. The Board may promulgate reasonable regulations, not inconsistent with this
subtitle or the general laws of the Commonwealth, that it deems necessary to
carry out the provisions of this subtitle and to prevent the illegal
cultivation, manufacture, sale, and testing of marijuana and marijuana products.
The Board may amend or repeal such regulations. Such regulations shall be
promulgated, amended, or repealed in accordance with the Administrative Process
Act (&#xA7; 2.2-4000 et seq.) and shall have the effect of law.

B. The Board shall promulgate regulations that:

   1. Govern the outdoor cultivation of marijuana by a marijuana cultivation
   facility licensee, including security requirements to include lighting,
   physical security, and alarm requirements, provided that such requirements do
   not prohibit the cultivation of marijuana outdoors or in a greenhouse;

   2. Establish requirements for securely transporting marijuana between
   marijuana establishments;

   3. Establish sanitary standards for retail marijuana product preparation;

   4. Establish a testing program for retail marijuana and retail marijuana
   products pursuant to Chapter 14 (&#xA7; 4.1-1400 et seq.);

   5. Establish an application process for licensure as a marijuana establishment
   pursuant to this subtitle in a way that, when possible, prevents disparate
   impacts on historically disadvantaged communities;

   6. Establish requirements for health and safety warning labels to be placed on
   retail marijuana and retail marijuana products to be sold or offered for sale
   by a licensee to a consumer in accordance with the provisions of this
   subtitle;

   7. Establish a maximum tetrahydrocannabinol level for retail marijuana
   products, which shall not exceed (i) five milligrams per serving for edible
   marijuana products and where practicable an equivalent amount for other
   marijuana products or (ii) 50 milligrams per package for edible marijuana
   products and where practicable an equivalent amount for other marijuana
   products. Such regulations may include other product and dispensing
   limitations on tetrahydrocannabinol;

   8. Establish requirements for the form, content, and retention of all records
   and accounts by all licensees;

   9. Provide alternative methods for licensees to maintain and store business
   records that are subject to Board inspection, including methods for
   Board-approved electronic and offsite storage;

   10. Establish (i) criteria by which to evaluate new licensees based on the
   density of retail marijuana stores in the community and (ii) metrics that have
   similarly shown an association with negative community-level health outcomes
   or health disparities. In promulgating such regulations, the Board shall
   coordinate with the Cannabis Public Health Advisory Council established
   pursuant to &#xA7; 4.1-603;

   11. Require retail licensees to file an appeal from any hearing decision
   rendered by a hearing officer within 30 days of the date the notice of the
   decision is sent. The notice shall be sent to the licensee at the address on
   record with the Board by certified mail, return receipt requested, and by
   regular mail;

   12. Prescribe the schedule of proration for refunded license fees to licensees
   who qualify pursuant to subsection C of &#xA7; 4.1-1002;

   13. Establish criteria by which to evaluate social equity license applicants,
   which shall be an applicant who has lived or been domiciled for at least 12
   months in the Commonwealth and is either (i) an applicant with at least 66
   percent ownership by a person or persons who have been convicted of or
   adjudicated delinquent for any misdemeanor violation of &#xA7; 18.2-248.1,
   former &#xA7; 18.2-250.1, or subsection A of &#xA7; 18.2-265.3 as it relates
   to marijuana; (ii) an applicant with at least 66 percent ownership by a person
   or persons who is the parent, child, sibling, or spouse of a person who has
   been convicted of or adjudicated delinquent for any misdemeanor violation of
   &#xA7; 18.2-248.1, former &#xA7; 18.2-250.1, or subsection A of &#xA7;
   18.2-265.3 as it relates to marijuana; (iii) an applicant with at least 66
   percent ownership by a person or persons who have resided for at least three
   of the past five years in a jurisdiction that is determined by the  Board
   after utilizing census tract data made available by the United States Census
   Bureau to have been disproportionately policed for marijuana crimes; (iv) an
   applicant with at least 66 percent ownership by a person or persons who have
   resided for at least three of the last five years in a jurisdiction determined
   by the Board after utilizing census tract data made available by the United
   States Census Bureau to be economically distressed; or (v) an applicant with
   at least 66 percent ownership by a person or persons who graduated from a
   historically black college or university located in the Commonwealth;

   14. For the purposes of establishing criteria by which to evaluate social
   equity license applicants, establish standards by which to determine (i) which
   jurisdictions have been disproportionately policed for marijuana crimes and
   (ii) which jurisdictions are economically distressed;

   15. Establish standards and requirements for (i) any preference in the
   licensing process for qualified social equity applicants, (ii) what percentage
   of application or license fees are waived for a qualified social equity
   applicant, and (iii) a low-interest business loan program for qualified social
   equity applicants;

   16. Establish guidelines, in addition to requirements set forth in this
   subtitle, for the personal cultivation of marijuana that promote personal and
   public safety, including child protection, and discourage personal cultivation
   practices that create a nuisance, including a nuisance caused by odor;

   17. Establish reasonable time, place, and manner restrictions on outdoor
   advertising of retail marijuana or retail marijuana products, not inconsistent
   with the provisions of this chapter, so that such advertising displaces the
   illicit market and notifies the public of the location of marijuana
   establishments. Such regulations shall be promulgated in accordance with
   &#xA7; 4.1-1404;

   18. Establish restrictions on the number of licenses that a person may be
   granted to operate a marijuana establishment in single locality or region; and

   19. Establish restrictions on pharmaceutical processors and industrial hemp
   processors that have been granted a license in more than one license category
   pursuant to subsection C of &#xA7; 4.1-805 that  ensure all licensees have an
   equal and meaningful opportunity to participate in the market. Such
   regulations may limit the amount of products cultivated or manufactured by the
   pharmaceutical processor or industrial hemp processor that such processor may
   offer for sale in its retail marijuana stores.

C. The Board may promulgate regulations that:

   1. Limit the number of licenses issued by type or class to operate a marijuana
   establishment; however, the number of licenses issued shall not exceed the
   following limits:
   				a. Retail marijuana stores, 400;
   				b. Marijuana wholesalers, 25;
   				c. Marijuana manufacturing facilities, 60; and
   				d. Marijuana cultivation facilities, 450.
   				In determining the number of licenses issued pursuant to this subdivision,
   the Board shall not consider any license granted pursuant to subsection C of
   &#xA7; 4.1-805 to (i) a pharmaceutical processor that has been issued a permit
   by the Board of Pharmacy pursuant to Article 4.2 (&#xA7; 54.1-3442.5 et seq.)
   of the Drug Control Act or (ii) an industrial hemp processor registered with
   the Commissioner of Agriculture and Consumer Services pursuant to Chapter 41.1
   (&#xA7; 3.2-4112 et seq.) of Title 3.2.

   2. Prescribe any requirements deemed appropriate for the administration of
   taxes under &#xA7;&#xA7; 4.1-1003 and 4.1-1004, including method of filing a
   return, information required on a return, and form of payment.

   3. Limit the allowable square footage of a retail marijuana store, which shall
   not exceed 1,500 square feet.

   4. Allow certain persons to be granted or have interest in a license in more
   than one of the following license categories: marijuana cultivation facility
   license, marijuana manufacturing facility license, marijuana wholesaler
   license, or retail marijuana store license. Such regulations shall be drawn
   narrowly to  limit vertical integration to small businesses and ensure that
   all licensees have an equal and meaningful opportunity to participate in the
   market.

D. Board regulations shall be uniform in their application, except those
relating to hours of sale for licensees.

E. Courts shall take judicial notice of Board regulations.

F. The Board shall consult with the Cannabis Public Health Advisory Council in
promulgating any regulations relating to public health, including regulations
promulgated pursuant to subdivision B 3, 4, 6, 7, 10, or 16, and shall not
promulgate any such regulation that has not been approved by a majority of the
members of the Cannabis Public Health Advisory Council.

G. With regard to regulations governing licensees that have been issued a permit
by the Board of Pharmacy to operate as a pharmaceutical processor or cannabis
dispensing facility pursuant to Article 4.2 (&#xA7; 54.1-3442.5 et seq.) of the
Drug Control Act, the Board shall make reasonable efforts (i) to align such
regulations with any applicable regulations promulgated by the Board of Pharmacy
that establish health, safety, and security requirements for pharmaceutical
processors and cannabis dispensing facilities and (ii) to deem in compliance
with applicable regulations promulgated pursuant to this subtitle such
pharmaceutical processors and cannabis dispensing facilities that have been
found to be in compliance with regulations promulgated by the Board of Pharmacy
that mirror or are more extensive in scope than similar regulations promulgated
pursuant to this subtitle.

H. The Board&#8217;s power to regulate shall be broadly construed.

HISTORY: 2021, Sp. Sess. I, cc. 550, 551.