RICHMOND, Va. — Governor Abigail Spanberger, Senator Lashrecse Aird and Delegate Paul Krizek have announced an agreement to establish a regulated adult-use retail cannabis market in Virginia through the state budget process.
The proposal would allow recreational cannabis sales to begin July 1, 2027, completing a process that began with the legalization of adult possession in 2021.
In a June 16, 2026 media release, officials said the delayed launch date would give the Virginia Cannabis Control Authority time to develop regulations, establish testing and safety standards, and create an oversight framework before sales begin.
The legislation includes provisions for strengthening public safety, expanding consumer protections, increasing safeguards for minors and providing greater flexibility for entrepreneurs.
“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.”
Aird said the agreement addresses concerns that have existed since Virginia legalized adult possession without creating a retail marketplace.
“Getting this done took hard conversations and a shared commitment to move Virginia beyond the failed status quo,” said 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.”
Krizek said the legislation seeks to balance public safety concerns with economic opportunities for small businesses.
“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.
State officials said the agreement includes stronger penalties for illegal operators, criminal organizations and out-of-state businesses operating outside Virginia law.
The proposal would also eliminate what supporters described as the “25:1 hemp loophole,” which they said allowed highly intoxicating THC products to be sold with limited oversight.
From the official media release, read more about additional details on the proposed compromise legislation:
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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