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After years of clearing the General Assembly only to meet a veto, legislation to create a legal, adult-use cannabis market in Virginia passed both chambers Tuesday 鈥� this time with a governor ready to sign it and retail sales poised to begin as early as November.
The votes mark the clearest signal yet that Virginia is poised to move from legal possession without legal sales to a fully regulated marketplace, a transition that has eluded the commonwealth since 2021, when lawmakers聽聽simple possession.
Tuesday morning, the House passed聽, sponsored by Del. Paul Krizek, D-Fairfax, by a 65-32 vote. Hours later, the Senate approved聽, introduced by Sen. Lashrecse Aird, D-Petersburg, by a narrow 21-19 margin after an initial failed vote.
Similar proposals have cleared the General Assembly in recent years 鈥� often with bipartisan backing 鈥� but were聽聽by former Gov. Glenn Youngkin. This year, the political calculus has shifted. Democratic Gov. Abigail Spanberger has聽聽legislation establishing a regulated retail market.
Under Krizek鈥檚 bill, the Virginia Cannabis Control Authority would administer the retail system, with no retail sales allowed prior to Nov. 1, 2026.
鈥淚t鈥檚 about fixing a status quo that is not working,鈥� he said, noting that while adult possession of cannabis is legal, retail sales remain unregulated.
Right now, he said, the absence of a legal marketplace means 鈥渘o testing, no standards and no oversight whatsoever.鈥�
The bill, he added, would replace what he described as a $5 billion illegal market with a regulated system designed to protect public health. He pointed to requirements for testing, labeling and packaging, as well as enforcement mechanisms and penalties intended to keep products away from minors.
Krizek said the legislation takes a phased approach to give the聽聽time to implement the framework responsibly. It also preserves local control, granting localities full zoning authority over where and how retail stores operate.
He added that the proposal creates opportunities for small businesses and communities disproportionately harmed by past enforcement and called it 鈥渁 measured, responsible step forward.鈥�
Legal to possess, illegal to sell
Virginia first decriminalized marijuana in 2020 before lawmakers legalized simple possession.
But they failed to finalize a retail framework before Republicans regained the governor鈥檚 mansion, leaving cannabis in legal limbo 鈥� legal to possess, illegal to sell.
Over the past year, a聽聽has worked to craft聽, hearing testimony from regulators, industry experts and advocates about safety, access and equity concerns.
Over the past year, the joint legislative commission held a series of hearings and work sessions to refine the framework, beginning with presentations in August on聽聽models, followed by聽聽weighing safety, access and equity concerns.
By November, members were reviewing聽, and in December聽聽revisions aimed at setting the stage for a 2026 launch.
The Senate version, sponsored by Aird, largely mirrors the House proposal but sets a later retail start date of Jan. 1, 2027.
The measure initially failed Tuesday afternoon after Sen. Adam Ebbin, D-Alexandria, recused himself because he is about to assume a role at the Cannabis Control Authority. Moments later, Ebbin asked for reconsideration, stating he has 鈥渘o financial interest鈥� in an adult-use cannabis marketplace. On the second vote, the bill passed 21-19.
The substitute measure adopted this week, Aird said, incorporates many elements lawmakers have seen before but also introduces new approaches 鈥� starting with governance.
鈥淭his new legislation takes on the approach where the Cannabis Control Authority will manage the license and regulatory portions while the marketplace is immediately being stood up,鈥� Aird said.
Taxes, caps and rollout timeline
The measure establishes a state tax rate of 12.875% on retail cannabis sales, along with an additional 3% local option tax. Permit applications would begin in July 2026, and seed-to-sale tracking would start Sept. 1, 2026, ahead of a Jan. 1, 2027 retail launch.
鈥淭he transaction limit for retail purchases will remain at 2.5 ounces, which has always been throughout this process,鈥� Aird said.
The legislation outlines standards for a lottery process for impact licensees and creates a tiered cultivation licensing structure based on canopy size, ranging from tiers one through five, with the largest capped at 35,000 square feet.
A maximum of 350 retail licenses would be issued statewide. Cultivation facilities would be capped at 450 through 2028. At-home cultivation would continue to be permitted, allowing up to four plants per household, provided each plant is tagged with the grower鈥檚 name and identification.
Local governments would no longer be able to ban cannabis retail聽.
The bill also sets THC limits for non-pharmaceutical products at 10 milligrams per serving and 100 milligrams per package. Aird said it includes robust criminal provisions aimed at cracking down on illicit sales and the illegal marketplace.
鈥淭here are a lot of details in this legislation,鈥� she said.
If signed by Spanberger, the measures would mark the final step in a yearslong effort to bring structure and oversight to a market that has operated without a legal retail framework.
Aird emphasized Tuesday that many lawmakers contributed to shaping the legislation 鈥� a proposal she said reflects extensive collaboration across chambers.
鈥淭here are many in this chamber that have helped shape this legislation,鈥� she said.
