By Molly Manning
Virginia could see a statewide cannabis retail market as soon as November under pending legislation. Two bills with a framework for the creation of a retail marijuana market in the state have passed their respective chambers and are now being considered in the opposite chamber.
A bipartisan joint commission has been working since last January to plan and oversee the commonwealth’s transition to a fully legal retail marijuana market. Lawmakers created the commission after legislation for a retail market was repeatedly vetoed by former Republican Gov. Glenn Youngkin.
Now, things have changed — Gov. Abigail Spanberger, who took office in January, shared her support for a cannabis retail market in the state throughout her campaign.
House Bill 642, introduced by Del. Paul Krizek, D-Fairfax, and Senate Bill 542, introduced by Sen. Lashrecse Aird, D-Petersburg, outline the framework for the creation of a retail marijuana market.
Krizek said his bill aims to strengthen communities through new jobs in agriculture and justice for those affected by the racial disparities in the prohibition of cannabis while creating a “fair, safe and inclusive cannabis market.”
“That’s the first goal — to really replace the unsafe, untested, and unmonitored products that are currently flooding Virginia,” Krizek said in an interview with Virginia Scope.
Krizek said they have taken community input into account in drafting legislation to create a “well-regulated multi-billion dollar industry.”
The House and Senate bills differ in their proposed tax rates; Krizek said the House version has a slightly lower tax rate to discourage customers from using the black market.
The Senate version proposes a rate of 12.875% with a 1.125% sales tax and a 3% local option tax. Based on this tax rate, Aird said legal adult use sales would be projected to reach approximately $780 million in the first year and nearly $1.9 billion in the second year, and she added the state is projected to generate over $400 million in annual cannabis revenue over the next five years.
Aird said the proposed tax rate is based on Virginia’s tax structure and the rates used by other states with retail markets — the goal is to be competitive enough to attract consumers to legal sales.
She also noted her intention to make the retail marketplace diverse and accessible.
“I think that it’s important to note that in this legislation, we have tried to be very intentional about ensuring that the market will have room for micro-businesses and impact licenses as well,” Aird said in an interview with Virginia Scope.
There are several other key differences between the bill versions.
The Senate version has a start date of Jan. 1, 2027, and the House bill has a start date of Nov. 1, 2026.
Aird said the bills will have to go through a conference period to address their differences before they are finalized.
The Senate bill also includes language to create a single regulatory authority for alcohol and cannabis by January 1, 2028. Aird said the date was determined to ensure both agencies — the Cannabis Control Authority and the Alcoholic Beverage Control — have the time to assess what a singular authority could look like, the capacity to regulate a market with increased need and the necessary requirements and timeline to do so.
The General Assembly first allowed medical cannabis sales, excluding flower, in 2019. A year later, access was expanded to allow additional off-site medical cannabis dispensaries, and the state decriminalized recreational or non-medical marijuana use, according to the CCA.
Legislation to legalize the possession of marijuana — up to an ounce for Virginians 21 and older — was passed in 2021. The bill also created the Virginia Cannabis Control Authority and other regulatory agencies for the cannabis retail industry.
The Virginia Cannabis Control Authority launched a new interactive dashboard to track medical cannabis sales in the state this month.
The state’s year-to-date sales for 2026 as of Feb. 20 — just under two months — total $15,084,882 with 126,706 transactions, per the dashboard.
Other data available includes sales by product type, average price per gram and number of plants harvested.
Chelsea Higgs Wise, executive director of Marijuana Justice, said they are in favor of a later start date in order to benefit small, local businesses.
“A start date of November means that on the first day of Virginia’s sales, there will be lines wrapped around the block at buildings that are owned by out-of-state corporations,” Higgs Wise said in an interview with Virginia Scope. “We believe an early start provides an unfair advantage for these out-of-state corporations that are currently selling medical marijuana.”
She said the larger, out-of-state corporations will benefit from an earlier start as they are already established, which has the potential to create a monopoly in the industry and discount local businesses.
As far as tax rates, Higgs Wise said advocates want the market to be competitive, convenient and good quality, otherwise consumers will continue to shop illicitly or visit neighboring states like Maryland, which has a tax rate of 12%.
Higgs Wise also noted concerns about zoning and where retail stores will be able to open, though she is optimistic about the licensing aspect of the legislation — multiple levels of licenses are included, such as micro-licenses and other opportunities for farmers, as well as impact licenses for individuals with past marijuana-related charges that want to get into the market.
“There are a lot of factors that we have to think about, but both Senator Aird and Delegate Krizek have been champions and head down on this legislation for months, if not years,” Higgs Wise said. “So we’re really thrilled that it’s getting to the finish line, but there’s still a lot of questions.”
Another bill, Senate Bill 62, sponsored by Sen. Louise Lucas, D-Portsmouth, would allow those with past marijuana felony convictions who remain incarcerated or on community supervision to receive an automatic hearing to consider modification of their sentence.
In addition, House Bill 942, sponsored by Del. Nadarius Clark, D-Suffolk, would ensure that no parent or guardian is denied custody or visitation based solely on possession or consumption of legally authorized substances.
Higgs Wise said bills like these show signs of repair owed to Virginians as the state prepares to make billions of dollars from an industry that has been criminalized for decades.
“Even medical patients, medical cannabis patients, have been discriminated against during a family court because they admitted to consuming cannabis,” Higgs Wise said.
However, House Bill 1432, patroned by Del. Leslie Chamber Mehta, D-Chesterfield, which aimed to reduce the penalties for underage consumption or possession of alcoholic beverages or marijuana, did not make it out of the House.
Higgs Wise said even since marijuana was legalized in 2021, there has been at least a 30% increase in school referrals to law enforcement, which she says has the potential to create a new school-to-prison pipeline. She hopes legislators will continue to consider how to support young people and prevent a “new War on Drugs.”