RICHMOND, Va. — Virginia lawmakers on Tuesday introduced a long-anticipated proposal to create a regulated retail cannabis marketplace, outlining a framework they say prioritizes small businesses, community reinvestment and public safety while attempting to curb the state’s illicit market.

The blueprint, released by the Joint Commission on the Future of Cannabis Sales, comes after years of stalled efforts under Republican Gov. Glenn Youngkin, who vetoed past versions. With a new administration taking office in January, Democratic leaders and stakeholders expressed cautious optimism that the latest bill could clear the General Assembly.

“It is a complex undertaking and we’ve been trying to get lots of input from the general public,” said Del. Paul Krizek, D-Fairfax County, who led the effort. “We spent so long in the summer working on this bill to get it just right. It’s kind of a labor of love.”

The proposal includes 53 changes from earlier drafts, ranging from expanded public health reporting to strict oversight of ownership agreements. The Cannabis Control Authority (CCA) would be required to provide annual assessments of the marketplace’s condition, maintain online registries disclosing licensee ownership and finances, and investigate all ownership and brand-licensing contracts to prevent monopolistic or predatory arrangements.

“We’re perfecting what we’ve been working on,” Krizek said. “Small businesses, especially, will have an opportunity to participate. It’s anti-monopolistic.”

Under the plan, Virginia would issue up to 350 retail licenses, including existing medical cannabis dispensaries. The bill sets canopy limits for microbusinesses, allows cannabis events such as farmers markets, and permits licensees to transport products to other operators. Individuals with past marijuana-related convictions would not be disqualified from applying.

Krizek said tens of thousands of jobs could be created, and the marketplace could bring in $400 million in revenue over five years. The tax structure includes providing localities the authority to add up to 3.5% sales tax, generating revenue that could be directed to education, economic development, and reinvestment in communities disproportionately affected by past drug enforcement. At 9%, the proposal includes one of the lowest tax rates in the country for regulated cannabis

“Local government can use that for their purposes as well,” Krizek said.

Still, many stakeholders raised concerns about implementation, equity, and public health. Cynthia Phillips of VirginiansForSaferCannabis.org said more community education is needed, particularly with a focus on cannabis events. 

“The farmers market, that’s a big concern,” she said. 

“Cannabis isn’t necessarily as safe as what’s been perpetrated in our community,” added another speaker. 

Others urged lawmakers to consider more about the impact on youth safety. Chelsea Higgs Wise of Marijuana Justice cautioned that an early November 1 start date could strain the CCA’s ability to hire and train staff.

Advocates for inclusion also questioned whether limited licenses might squeeze out Black farmers and small operators.

Krizek acknowledged that major decisions, particularly the final distribution of tax revenue, remain unsettled. 

“Of all the things that are going to change, this will be the biggest discussion for the General Assembly,” he told WUSA9.

The proposal requires licensees to sign labor-peace agreements, bans predatory lending or marketing payments between operators, and establishes strict retail buffers: stores must be at least one mile apart and more than 1,000 feet from schools, churches, playgrounds and treatment centers. Shops would feature darkened glass and discreet designs to avoid attracting minors.

“Marijuana is already legal, so, what we’re trying to do is regulate the marketplace and make sure marijuana isn’t being sold on the streets,” Krizek said.

Public applications for microbusinesses would open July 1, with sales statewide targeted for Nov. 1.

“This is just a step in the process,” Krizek said. “But it’s a major one.”