Governor Spanberger, Senator Aird, & Delegate Krizek Announce Agreement to Create a Legal Retail Cannabis Market in Virginia

RICHMOND, VA - Governor Abigail Spanberger, Senator Lashrecse Aird, and Delegate Paul Krizek today announced an agreement to create a safe, legal, and well-regulated adult-use retail cannabis market through the budget process - completing a years-long process that began in 2020.

The proposed compromise legislation strengthens public safety, establishes greater protections for kids and teenagers, expands safeguards for consumers, and offers greater flexibility for entrepreneurs while prioritizing responsible market development. Under the legislation, sales would begin on July 1, 2027, providing the Cannabis Control Authority (CCA) sufficient time to develop regulations, establish testing and safety standards, and build the necessary oversight framework to ensure the marketplace launches safely and responsibly.

"Today, I'm excited to stand alongside Senator Aird and Delegate Krizek to announce that we have agreed to a compromise proposal that will create a safe, legal, and well-regulated cannabis marketplace here in Virginia - with recreational sales beginning on July 1, 2027," said Governor Abigail Spanberger. "We will do it in a way that protects consumers, targets the illicit market with clear enforcement and regulatory authority, and creates a more competitive market for small businesses and farmers."

Governor Spanberger continued, "This is what good governing and collaboration look like - bringing people together, listening to families and public safety leaders, and focusing on solutions that are practical, enforceable, and in the best interest of Virginians. In the end, we all wanted to deliver a marketplace that the Commonwealth could implement effectively for the long-term. I'm proud to stand alongside these dedicated legislators, and to be working alongside them to deliver a marketplace built to last."

"Getting this done took hard conversations and a shared commitment to move Virginia beyond the failed status quo," said Senator Lashrecse Aird. "Virginia legalized adult possession years ago, but without a regulated retail market, we left the illicit market to fill the gap. This compromise gives us a smarter and safer path forward - one that protects consumers, keeps products tested and accurately labeled, and creates a legal marketplace that is affordable and accessible enough to actually compete. Too many have suffered real harms for us to get here, and this agreement reflects responsible regulation that protects young people, gives Virginians a safe legal option and avoids criminalizing adult use."

"This agreement reflects the kind of collaboration Virginians expect from their leaders. Bringing people together, working through difficult issues, and finding a responsible path forward," said Delegate Paul Krizek. "For too long, the failed war on drugs imposed real consequences on individuals, families, and communities, while doing little to create lasting public safety. As Virginia moves forward, we have a responsibility to build a marketplace that is not only legal, but fair, safe, and workable. This compromise restores important support for small businesses, protects impact licensees from predatory investment, and gives microbusinesses a real opportunity to succeed. The benefits of legalization should not be limited to the largest and best-capitalized players, and this agreement helps ensure Virginia entrepreneurs have a fair shot to thrive in this emerging market."

The agreement reflects Governor Spanberger and the General Assembly's shared focus on protecting consumers, entrepreneurs, and kids while ensuring strong penalties for bad actors, criminal organizations, and illegal out-of-state operators. Additionally, the agreement would end the 25:1 hemp loophole - passed and advocated for by the previous administration - which allowed highly intoxicating THC products to proliferate in Virginia with limited oversight.

Read below for additional details on the proposed compromise legislation to create a safe, legal, and well-regulated adult-use retail cannabis market in Virginia:

• Creates a maximum of 350 retail cannabis establishment licenses - comparable to commercial markets in other states - and increases the possession limit from 1 ounce to 2 ounces. The CCA would begin accepting applications for licenses on February 1, 2027.
• Strengthens child safety protections - including prohibitions on cartoon advertisements, requirements for child-safe packaging, and prohibitions on products sold in the shape of animals, fruits, vehicles, or humans.
• Authorizes the CCA to create escalating penalties for failing to do ID checks - including license revocation for repeated underage sale and requirements that retail stores be no less than 1,000 feet from schools, hospitals, playgrounds, and drug treatment facilities.
• Strengthens oversight of industrial intoxicating hemp - which is currently regulated by the Virginia Department of Agriculture and Consumer Services - by transferring regulation to the CCA.
• Allows the CCA to maintain a public licensee registry, establish a tip line for members of the public to anonymously report concerns about illicit practices, investigate the ownership and control interests of licensees, and develop policies regarding the audit of ownership and financial relationships across licensees.
• Allocates the revenue of cannabis sales towards early childcare and education, K-12 education, behavioral health programming for substance use disorder prevention and treatment programs, public health programs, and the Cannabis Equity Reinvestment Fund.
• The fund - established in the 2021 legislation - supports scholarships, workforce development, small business growth, reentry services, and community-based initiatives designed to expand opportunity, strengthen economic mobility, and help address longstanding disparities in communities historically and disproportionately targeted and affected by over-policing.
• Establishes a 6 percent state tax rate on cannabis products to transition Virginia to a regulated market from the current illicit market. After July 1, 2029, the state tax will increase to 8 percent to generate additional revenue for education and public health programs. The bill further allows localities to adopt an additional 1-3.5 percent local tax combined with the existing retail sales and use tax.

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