The General Assembly’s Joint Commission on the Future of Cannabis Sales presented a final proposal for a retail cannabis market ahead of the 2026 session at its Dec. 2 meeting.

Though Virginia legalized personal possession and cultivation in 2021, all attempts since to legalize a market for adult-use marijuana have failed. The newest proposal uses the previous draft as its foundation — with more than 50 changes focused on small businesses, economic justice and public safety.

Some told the commission they’re skeptical about the new proposal’s efforts to give small businesses a fighting chance.

The bill would allow localities to increase local taxes on cannabis products to up to 3.5% and would get rid of additional sales tax on paraphernalia. It doesn’t give localities the option to ban retail sales, getting rid of opt-out clauses from previous versions.

Commission Chair Paul Krizek, who represents Fairfax in the House of Delegates, said allowing “dry counties” does more harm to public safety than good.

“By allowing opting out, what we’re really doing is allowing opting into the illicit market, so there will not be any dry counties like in the days of alcohol,” he said during the meeting.

The proposal is sponsored by Krizek as well as two Hampton Roads senators, Louise Lucas from Portsmouth and Aaron Rouse from Virginia Beach.

Lucas didn’t speak during the commission meeting and a spokesperson told WHRO she doesn’t have a comment at this time. Rouse said the proposal’s emphasis on small businesses will strengthen local economies.

“This retail market will also generate revenue for localities like Virginia Beach and the overall Commonwealth,” he said in an email. “Those dollars will go a long way to strengthen public education, fuel reinvestment in our communities, and create good-paying jobs.”

Rouse said the new proposal gives Virginia the chance to acknowledge the “long-standing connection between cannabis policy and the justice system.”

An analysis by the American Civil Liberties Union found Black and white Americans consume marijuana at roughly the same rate, but Black people were 3.73 times more likely to be arrested for marijuana between 2001 and 2010.

The new proposal gives licensing priority to communities disproportionately policed for marijuana crimes since 2015, as well as small businesses.

Roughly half of the initial licenses would be reserved for smaller operators that grow, process or sell cannabis on a smaller scale, as first reported by Virginia Mercury.

But people expressed concern during public comment that the new proposal still gives larger operations a leg up.

The new proposal would allow existing medical cannabis license holders to pay $10 million for a conversion license that would allow them to enter the retail market. Hemp cultivator Nicholas Austin said during public comment this gives them an advantage over smaller operations.

“They will come out and crush us with cheap flower,” he said, using a colloquial term for cannabis. “Giving them any headstart, and even allowing them in this market, is a lot. $10 million is nothing to them.”

Medical cannabis is a multimillion-dollar industry in the state.

Others expressed concern that the limited number of retail licenses – 350 total – are too few and won’t be enough to outcompete the illicit market.

Rev. William Avon King from Halifax County with Virginia for Safer Cannabis said he was concerned the limited licensing would cut out Black farmers.

“When tobacco farmers were able to raise tobacco in a period of time, they started dealing with the poundage, and it cut out all of the minority farmers and Black farmers to where they were not able to compete, because you had to have a certain poundage to actually be involved in process,” he said.

In an effort to curb market dominance, the proposal caps the number of retail licenses a single person can hold to five, no matter how large their share of an operation is.

“You can have 1% interest in all five, but you can’t have 1% interest in six,” Krizek said, noting the goal is to avoid monopolies, like “Big Tobacco.”

The General Assembly session begins Jan. 14. If approved by lawmakers and signed by Governor-elect Abigail Spanberger, retail cannabis sales could begin as early as Nov. 1 next year.