Virginia releases plan for adult-use cannabis sales legislation!

With Virginia's new governor and lawmakers preparing to be sworn in, we’re optimistic that the Commonwealth will finally legalize adult-use sales in 2026. In 2025, the General Assembly created a Joint Commission to Oversee the Transition of the Commonwealth into a Retail Cannabis Market, which conducted a series of meetings and debates. This week, the commission released the framework for what the preferred legislation would contain.

The Commission’s document outlines the framework as proposed changes to 2025’s legalization bills — SB970 and HB2485 — which were vetoed by Gov. Glenn Youngkin (R). A new bill based on the proposal is expected to be submitted before the General Assembly convenes on January 14.

Under the Commission’s framework, adult-use sales would begin on November 1, 2026. Existing medical cannabis companies could transition to adult-use sales if they pay a hefty fee. Additionally, up to 100 temporary micro-business licenses would be issued to farmers and hemp licensees that qualify as “impact licensees” as defined in page 3 of the document. They could grow and process cannabis and sell directly to consumers. Regulators would also issue up to five large cultivation licenses to hemp licenses, with a fee of $500,000. 

The proposal allows a maximum of 350 dispensaries and a maximum of 10 Tier V cultivators (with up to 35,000 square feet of indoor canopy). The number of licenses for other cultivator tiers and processors will be decided by regulators. The plan includes a license type for delivery and allows for shared processing hubs. Regulators will prioritize licensing for impact licenses, micro-business, and smaller cultivation licenses.

Previous legal sales bills included a local opt-out provision. As lawmakers who are members of the Commission explained in an op-ed, that option will not be in the 2026 legislation.

The tax rate would be an 8% cannabis excise tax, plus standard state and local sales taxes (another 5.3% to 7%). Local governments could also levy a tax of up to 3.5% tax on cannabis sales, which is higher than previous bills. 

Many more details will follow as the final legislation is made public. We look forward to working with allies in finally bringing adult-use cannabis sales to the Old Dominion State in 2026!