Virginia Gov. Youngkin Vetoes Retail Marijuana, Minimum Wage Hike, Workers’ Comp Bills *Centurion Insurance AFS*

Republican Virginia Gov. Glenn Youngkin vetoed two top Democratic legislative priorities last Thursday: bills that would have allowed the recreational retail sales of marijuana to begin next year and measures mandating a minimum wage increase.

The development, which drew criticism from Democrats who control the General Assembly, did not come as a surprise. While Youngkin had not explicitly threatened to veto either set of bills, he told reporters he didn’t think the minimum wage legislation was needed and had repeatedly said he was uninterested in setting up retail marijuana sales.

In 2021, Virginia became the first Southern state to legalize marijuana, adopting a policy change that allowed adults age 21 and up to possess and cultivate the drug. But the state didn’t set up retail sales at the time and still hasn’t, due to shifts in partisan power and policy differences since then.

Advocates say the disconnect is allowing the illicit market to flourish, while opponents have health and safety concerns with further expanding access to the drug. In a statement, Youngkin said he shared those worries.

“States following this path have seen adverse effects on children’s and adolescent’s health and safety, increased gang activity and violent crime, significant deterioration in mental health, decreased road safety, and significant costs associated with retail marijuana that far exceed tax revenue. It also does not eliminate the illegal black-market sale of cannabis, nor guarantee product safety,” he said in a veto statement attached to the bills.

Currently in Virginia, home cultivation and adult sharing of marijuana are legal. And patients who receive a written certification from a health care provider can purchase the product from a dispensary.

Under the bills, the state would have started taking applications on Sept. 1 for cultivating, testing, processing and selling the drug in preparation for the market to open May 1, 2025, with products taxed at a rate of up to 11.625%.

The legislation was supported by a range of industry interests and opposed by religious and socially conservative groups.

Democratic Sen. Aaron Rouse of Virginia Beach, who sponsored his chamber’s version of the bill, said Youngkin had adopted a “dismissive” stance toward the issue.

“This veto blocks a pivotal opportunity to advance public health, safety, and justice in our Commonwealth,” he said in a written statement.

Virginia first took on legalization at a time when Democrats were in full control of state government. Elections later that year changed that, with Youngkin winning and Republicans taking control of the House of Delegates for two years.

While there has been some Republican legislative support since the 2021 session for setting up legal recreational sales, bills to do so have failed in 2022 and 2023.

Wages and Workers’ Compensation

As for the wage legislation, which would have increased the current $12-per-hour minimum wage to $13.50 on Jan. 1, 2025, and then to $15 on Jan. 1, 2026, Youngkin said the bills would “imperil market freedom and economic competitiveness.”

The bills would “implement drastic wage mandates, raise costs on families and small businesses, jeopardize jobs, and fail to recognize regional economic differences across Virginia,” he said in a news release.

Virginia Democrats began an effort to increase the minimum wage in 2020. They passed legislation that year — which took effect with a delay due to the coronavirus pandemic — establishing incremental increases up to $12, with further bumps requiring another Assembly vote.

They and other advocates have argued the legislation would help working families afford basic necessities and keep up with inflation.

Democratic Sen. L. Louise Lucas said in a statement that the bill would have set “a standard that would affirm our commitment to the dignity of labor and the belief that everyone deserves a fair shot at economic stability.”

Youngkin took action on a total of 107 bills Thursday, according to his office. He signed 100, including measures that his office said would “strengthen law enforcement’s ability to prosecute child predators and expand Department of Corrections inmate access to quality health services.”

Besides the marijuana and wage bills, he vetoed three others. One would have removed an exemption for farmworkers from the state’s minimum wage law.

Another would have required that approximately 315 individuals incarcerated or on community supervision with a felony marijuana conviction receive a sentencing review, according to Youngkin’s office.

“Ninety-seven inmates convicted of a violent felony offense, such as first and second-degree murder, kidnapping, and robbery, would be eligible for a reduced sentence under this proposal,” he said in his veto statement.

A final veto came for a bill that dealt with the type of evidence that can be considered in certain workers’ compensation claims. The governor said current law provides a “balanced approach” while the proposal would “create a disproportionate imbalance in favor of one party.”

The proposal would have reduced the burden of proof for employees to demonstrate the work- relatedness of a fall incident. Under current law, injured workers must demonstrate that the injury resulted from something related to their employment and occurred during work hours and at the workplace. The proposal would have allowed employees seeking workers’ compensation for unexplained falls to use circumstantial evidence and hearsay. Opponents said this would disturb the “existing balance” because employers disputing the work-related aspect would still have to provide direct evidence.

The part-time General Assembly adjourned its regular session earlier this month and will meet again in Richmond for a one-day session April 17 to consider Youngkin’s proposed amendments to legislation. They could also attempt to override one or more vetoes, a move that requires a 2/3 vote of both chambers, which are only narrowly controlled by Democrats.

The marijuana legislation advanced mostly along party lines, and the minimum wage bills passed strictly on party lines, meaning any override attempt would be almost certain to fail. The workers’ compensation measure passed the House by nine votes and the Senate by only one.

Youngkin announced the vetoes a day after the public collapse of one of his top legislative priorities: a deal to bring the NHL’s Washington Capitals and NBA’s Washington Wizards to Alexandria. The teams’ majority owner announced they would instead be staying in D.C.

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Topics
Workers’ Compensation
Virginia
Cannabis