Week 4: Vices in Virginia

As we approach crossover, it seems like a good time to check in on where we are on a large number of alcohol-related, marijuana, and gambling bills!

QUOTE OF THE WEEK, Senator Aird, during a somewhat contentious discussion of amendments Sen Surovell wanted to make to her cannabis marketplace bill: “Ultimately, legalization should end criminalization, not rebrand it. I know there is an interest in strictly aligning the approach that we take in this legislation to ABC’s enforcement structure, but doing that too closely we do risk building a legal system that still relies on arrests, mandatory fines, mandatory minimums, jail time and felonies for low-level conduct, and that approach has failed for alcohol and it will fail again for cannabis.”

Pass me the bottle!

• HB385 (Bennett-Parker) allows ABC to sell distilled spirit accessory items (like shakers, margarita salt) and allows employees to hold tasting events in their stores. It passed the House 91-5.
• Bills to increase the ounces of spirits that can be sold by distilleries for on-site consumption and requires food be available on-site when spirits are served. HB934 (Simon) passed the House with a 4 1/2 oz. limit, while SB424 (Perry) that reported to the Senate floor has a 6 oz. limit.
• HB975 (Bennett-Parker) sets up a tiered system for mixed-beverage establishments that eases the food-to-beverage ratio so that high revenue restaurants would not have to meet a ratio, mid-range ones would have a 30% ratio, and small ones would continue at the current 45% ratio.

Pass me the joint!

• House (HB642 Krizek) and Senate (SB542 Aird) bills to create a legal marijuana marketplace have reported out of committee and are now in Appropriations.
  • The intention stated in the bill is to “establish a competitive, sustainable, and decentralized market structure built for long-term success, prioritizing the creation of durable, independent businesses over the maximization of short-term tax revenue.”
  • There would be a preference in the licensing process (assistance in obtaining loans, and some fee waivers) for those who have been directly impacted by previous marijuana laws, live in an over-policed or historically economically disadvantaged community, and/or are a Veteran, etc.
  • Limit of 350 retail establishments before 2028. Limited to 2,500 square feet retail size, and restrict market concentration.
  • Bills specify local ordinances cannot prohibit marijuana, but can place limits on parks, sidewalks, and distance to schools and churches.
  • Ages 21+, limit of 2 1/2 oz. per transaction, 8% additional state sales tax plus 1-3 1/2% local sales tax.
  • Legal for any adult to possess up to 2 1/2 oz and may home-grow up to 4 plants.
  • Differences in House and Senate bills regarding: punishment for illegal cultivating, illegal sales, and possessing with intent to sell. (Senate has steeper penalties, including mandatory minimums that mimic those for alcohol.)

Pass me the dice!

• Competing House (HB396 Krizek) and Senate (SB765 Jones) bills to regulate Texas Hold ‘Em tournaments have passed their respective floors. Both limit participation to 21 years and above, and both restrict some of the more addiction-inducing behaviors, like rebuys and add-ons. The Senate version requires 20% of revenues go towards charitable organizations, requires a security officer be present, and has other limitations.
• Identical House (HB145 Krizek) and Senate (SB129 Ebbin) versions of Fantasy Contests regulation and taxation bills have passed out of committee with bipartisan support, and are now in Appropriations committees. They describe what safeguards info operators must supply with their application for permit; application fee is $50,000, with another $50,000 upon issuance; revenue is taxed at 10%, with 5% going to Problem Gambling Treatment fund, and 95% to the general fund.
• Similar but not identical House (HB161 Simon) and Senate (SB118 Locke) bills to regulate and legalize Internet gaming for adults 21+, with no credit cards accepted, with a number of problem gaming provisions that educate bettors and set cooling off periods, deposit limits, and other self-limiting tools. Gaming revenue is taxed at 15%, with 5% allocated to the Problem Gambling Treatment fund, 6% (until 2030) reserved to offset any losses to the licensed brick and mortar casinos due to i-gaming, and the remainder to the general fund. 
• The Senate bill (SB661 Rouse) to legalize and regulate so-called skill games reported out of committee and to Approps. The House cognate (HB1272 Hayes) has so far stalled in General Laws committee. Legal machines must be certified by ABC and must meet certain requirements–players cannot directly insert money but must visit store clerk to be given access; credit cards cannot be used to play; age 21+; wagers no greater than $5. There is an $800/month gaming tax on distributors per machine, with some revenue going towards Problem Gambling fund and enforcement authorities.
• The Fairfax casino bill (SB756 Surovell), a bill adding Fairfax to the localities authorized to have a casino, and specifying places in the Tyson’s area where such a casino might be allowed upon a referendum vote by Fairfax voters, reported out of Senate General Laws a week ago, but has been sitting in Appropriations, where it is undoubtedly tangled up with other bills, possibly as a bargaining chip–no pun intended.