Virginia Adult-Use Cannabis Update: Cannabis Bills Move Forward

The last few days have been busy in the Commonwealth of Virgina! Where to begin? Let’s start with the February Cannabis Control Authority Board of Directors meeting.  

What We’ve Learned with the CCA 

Frankly, not nearly as much as we would have liked! The legislative and regulatory updates with this month’s meeting—usually a ripe opportunity to learn more about the state of things—was surprisingly light on detail. However, we can be heartened that the timelines have remained as planned with cannabis business licensing poised to start in just a few short months.  

Bills and Their Progress 

There are close to a dozen cannabis related bills in various stages within the Senate and the House of Delegates right now, but the two arguably most critical ones are SB 542 and HB 642. These bills are relatively similar and would establish the framework and formally launch adult-use cannabis stales in Virginia. The great news is on February 17, both of these bills passed within their respective chambers. SB 542 passed the Senate 21-19 and HB 642 passed the House of Delegates 65-32. The next stage involves a reconciliation process and then sending a unified bill that much closer to the Governor’s desk, where she’s expected to sign this into law.  

What to Know Now 

We have some key provisions and details within these bills. Both would allow for adults to purchase up to 2.5 ounces of cannabis in a single transaction or up to an equivalent amount of other cannabis products as determined by regulators. The start date for sales differs between the bills with the House measure aiming for a November 1, 2026 start date while the Senate measure would launch sales on January 1, 2027. Maybe split the difference and aim for December 1, 2026? Excise taxes on cannabis products would be 12.875% with an additional 1.125% state tax and a mandatory 3% local tax (so a maximum of 17% tax) in the Senate bill and the House bill would have an excise tax of 6% along with a 5.3% retail sales and use tax and a local tax of upwards to 3.5% (so a maximum of 14.8% tax). We will either see these regulatory powers within the current Virginia Cannabis Control Authority if the House bill passes or a new combined Alcoholic Beverage and Cannabis Control Authority under the Senate bill. Crucially, both bills have application requirements for licensure and require securing a labor peace agreement from a certified union.  

What can you do now?

Preparing. Reach out to Canna Advisors so you can make sure you’re in the best position possible for licensure.