Virginia lawmakers convened on Tuesday to review proposed amendments to a 2026 cannabis retail market bill.

In 2020, Virginia lawmakers began to see success in marijuana legislation, with Gov. Ralph Northam signing a bill into law that would decriminalize simple marijuana possession. In 2021, cannabis possession and cultivation were legalized, making Virginia the first southern state in the country to legalize recreational marijuana.

Since the initial legalization, efforts to start a retail market have continuously been vetoed by Republican Gov. Glenn Youngkin. This has resulted in a legal gray zone in the commonwealth, as possession is legal, but retail sales are not.

Democratic governor-elect Abigail Spanberger said she supports retail market legislation, raising hopes among supporters that a bill may finally be signed into law.

On Tuesday, the Joint Commission to Oversee the Transition of the Commonwealth into a Cannabis Retail Market went over a myriad of proposed amendments to their legislation in an effort to hone the bill prior to a vote in the upcoming 2026 session, which will begin in January. Here are some of the highlights.

“A regulated retail market will replace the illicit market, because it includes product testing, accurate labeling, and consumer education, age-verified purchases and sales, and we’ll be using the revenue to support youth-focused prevention and education efforts.”

Del. Paul Krizek, Chair of the Joint Commission to Oversee the Transition of the Commonwealth into a Cannabis Retail Market

No opt-out clause

Most notably, a new amendment would prohibit “localities from holding a referendum to prohibit the sale of marijuana.” Supporters of this amendment say it would prohibit an illicit drug market in those areas.

Taxation

The excise tax on cannabis would remain at 8% statewide, but localities can adjust their local tax rate on the product up to 3.5%. In addition, marijuana paraphernalia would no longer have an additional tax.

In the meeting’s opening remarks, Commission Chair Del. Paul Krizek said a chunk of the tax revenue would go towards the Cannabis Equity Reinvestment Fund.

Virginia Cannabis Control Authority changes

The leading voice in cannabis in the commonwealth is the Virginia Cannabis Control Authority. They oversee licensing and various market regulations. The proposed amendments now direct the authority to:

• Issue an annual report on the condition and health of the cannabis retail market
• Maintain a public registry available online with information on ownership and financial disclosures for all licensees
• Provide consumer education on various topics, such as the dangers of marijuana consumption
• Various licensing changes

Members of the CCA would also now be designated as “state employees.”

Advertisements and market locations

Language was added and changed in regards to outdoor advertisements for cannabis retailers. It has been clarified that outdoor marijuana advertisements cannot display imagery of marijuana or marijuana use, and must not “draw undue attention to the facility,” which parallels many state laws for alcohol and tobacco. Retailers also can not be located within 1,000 feet of the following areas:

• places of religious worship
• hospitals
• schools
• playgrounds
• child day programs
• substance use disorder treatment facilities
• government facilities

When retail sales could begin

This legislation would allow market sales to begin on Nov. 1, 2026. The Cannabis Control Authority would begin accepting applications on July 1, 2026.

A finalized bill was not revealed today, as Krizek said the legislation still needs to be worked on. Many of these proposed amendments could be changed, adjusted, or cut altogether prior to the next session.

“Today, we are not actually unveiling the actual bill because there is still a lot of tweaking going on… We’ve got some things that we still need to work on.”

Del. Paul Krizek, Chair of the Joint Commission to Oversee the Transition of the Commonwealth into a Cannabis Retail Market

If you would like to see the proposed amendments, click here.