Virginia Lawmakers Approve Cannabis Sales Legalization

Virginia Lawmakers Approve Bill Legalizing Adult-Use Marijuana Sales With Details On Possession Limits, Tax Rates, Delivery Services, And Licensing Requirements

Virginia lawmakers have approved a bill to legalize adult-use marijuana sales, alongside separate legislation creating a pathway for resentencing individuals with past cannabis convictions, marking a major step forward in the state’s cannabis policy.

The House bill, HB 642, sponsored by Del. Paul Krizek (D), passed the Assembly Appropriations Committee Wednesday in a 16-6 vote, following earlier approvals by the Transportation and Public Safety Subcommittee (5-2 vote). The measure largely mirrors recommendations issued last month by the legislature’s Joint Commission to Oversee the Transition of the Commonwealth into a Cannabis Retail Market.

Since legalizing possession and home cultivation in 2021, Virginia has repeatedly attempted to establish a regulated commercial marijuana market. Those efforts stalled under former Gov. Glenn Youngkin (R), who vetoed previous legislation. Under the new bill, adult-use cannabis sales could begin November 1, 2026, ahead of a Senate companion bill targeting January 1, 2027.

Key Provisions Of Virginia’s House Marijuana Sales Bill Include Purchase Limits, Regulatory Authority, Excise Tax, And Labor Peace Requirements

The subcommittee adopted a substitute version of the bill with several amendments, including adjustments to tax rates and a reduced $5 million licensing conversion fee for existing medical cannabis operators entering the adult-use market.

Highlights of HB 642 as amended:

• Adults may purchase up to 2.5 ounces of marijuana or equivalent cannabis products per transaction.
  
• The Virginia Cannabis Control Authority will oversee licensing and regulation, including possession, sale, distribution, transportation, and testing.
  
• Marijuana sales will carry a 6% excise tax and the state 5.3% retail sales and use tax. Local governments may add an additional 3.5% tax.
  
• Revenue will fund regulatory costs, a Cannabis Equity Reinvestment Fund, pre-K programs, substance use disorder prevention and treatment, and public health initiatives such as campaigns discouraging underage consumption and drug-impaired driving.
  
• Localities cannot opt out of allowing marijuana businesses to operate.
  
• Delivery services will be permitted.
  
• Serving sizes capped at 10 mg THC, with no more than 100 mg THC per package.
  
• Medical cannabis operators may enter the recreational market with the conversion fee.
  
• Cannabis businesses must maintain labor peace agreements with workers.
  
• A legislative commission will study on-site consumption licenses, microbusiness event permits, and potential involvement of the Virginia Alcoholic Beverage Control Authority in regulation.
  

Senate Marijuana Sales Bill Faces Criticism For Stricter Penalties On Underage Possession And Unlicensed Cultivation

A Senate measure, SB 542 from Sen. Lashrecse Aird (D), passed the Senate Courts of Justice Committee last week but drew criticism for amendments imposing potential jail penalties for certain cannabis activities. A coalition of reform advocates sent a letter to the Senate Finance Committee urging the rollback of those changes.

Newly sworn-in Gov. Abigail Spanberger (D) supports adult-use marijuana legalization, signaling strong executive backing for the measures.

Virginia Moves Forward On Resentencing Past Cannabis Convictions With Bills In Both Senate And House

The Senate Finance & Appropriations Committee also approved SB 62 from Sen. Louise Lucas (D) on a 10-4 vote, creating a process for automatic hearings to modify sentences for individuals convicted of certain marijuana-related felonies.

The Assembly companion, HB 26 from Del. Rozia Henson (D), advanced through the Appropriations Committee in a 16-6 vote. The legislation applies to convictions occurring before July 1, 2021, when personal possession and home cultivation became legal in Virginia.

Additional Cannabis Policy Measures Include Protections For Hospital Workers Using Medical Marijuana And Workplace Protections For Employees

Separately, the Virginia Senate approved SB 332, extending legal protections to hospital workers assisting terminally ill patients with medical marijuana use, contingent on federal rescheduling of cannabis.

The Virginia Department of Labor and Industry has also issued guidance clarifying workplace protections for employees who consume cannabis, reflecting broader efforts to harmonize cannabis legalization with employment and medical policies.