Gov. Abigail Spanberger and two key legislators have come to an agreement to legalize recreational cannabis sales.
That agreement includes a later start to recreational sales and a slower roll out of retail licenses than what was in legislation that the General Assembly passed, as well as the removal of tougher penalties for the transport of unlawfully large quantities of cannabis that the governor had included in her amendments.
The compromise includes a July 2027 start date for recreational sales and retail licenses will be capped at 350 across the state with their issuance to be rolled out gradually over time.
Spanberger had vetoed the bill by state Sen. Lashrecse Aird, D-Henrico County, and Del. Paul Krizek, D-Fairfax County, that passed during the 2026 legislative session to create a framework for recreational cannabis sales after the General Assembly discarded amendments to the bill made by the governor. A vetoed bill can be resurrected if it is included in the commonwealth’s budget, which is what the lawmakers plan to do.
The governor has line item veto authority over the budget but Tuesday’s joint press conference signaled Spanberger’s approval of the effort.
“We have always shared the same priorities and goals for this marketplace, including measures to keep our kids safe once the marketplace is open. It’s important to all of us that retailers don’t advertise to young people, that they comply with the new laws in place about selling to minors,” Spanberger said.
The House of Delegates and state Senate still appear at odds regarding the full biennial spending bill, however, with tax exemptions for data centers as the main point of contention. The House unveiled an updated proposal on Friday and the Senate presented their updated proposal on Tuesday during the Senate Finance Committee meeting. The House and Senate conferees were slated to meet Tuesday afternoon to work out the differences between the two proposals.
As it pertained to cannabis, however, prior differences between the legislative and executive branch appear to have been smoothed over through negotiations that took place after the 2026 session concluded.
“To compromise and find agreement, leaders have to be open, they have to be willing to know their priorities but understand that to reach agreement you have to be flexible,” Aird said of the cannabis framework negotiations. “Too many have been affected by 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.”
Krizek added that communities who have been disproportionately affected by past cannabis enforcement should not be “locked out” of the economic opportunity created by reform.
“The goal really is to create a cannabis market that is responsible and one that is regulated, competitive but most important, open to small businesses that deserve a real chance to succeed,” he said.
What else is included in the retail cannabis framework:
- A state tax rate of 6% at launch, which will rise to 8% after July 1, 2029;
- Localities are able to include an additional local retail tax of up to 3%;
- Retail license cap of 350, not all of which will be issued at once but instead rolled out over time;
- The authority to issue up to 100 microbusiness licenses by May 2027;
- 75% of license fee deposits in the first year will be directed into the Cannabis Equity Business Loan Fund;
- 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.
- Increases the possession limit from one ounce to two ounces;
- A $250 public consumption civil penalty that will start in July 2027;
- Strict testing and labeling requirements;
- A measure to address the proliferation of intoxicating hemp products sold in retail settings;
- Restores regulatory language designed to protect impact licensees and small businesses from predatory investment structures, and other limits on the transfer of licenses;
- Establishes the Cannabis Impact Business Support Team to help businesses in communities disproportionately impacted by past cannabis enforcement.
The Joint Commission to Oversee the Transition of the Commonwealth into a Cannabis Retail Market will continue to make recommendations for further consideration by the legislature, Aird added.
“There are several additional actions that the joint commission will continue to review and assess,” she said.
