Virginia Democrats are once again teeing up a bill to legalize adult-use cannabis sales that Republican Gov. Glenn Youngkin has no interest in signing.
The Virginia Senate voted, 21-19, entirely along party lines to pass Senate Bill 970 on Jan. 31. Sponsored by Sen. Aaron Rouse, D-Virginia Beach, the legislation aims to establish a framework for licensed and regulated adult-use dispensaries, allowing those 21 years and older in the commonwealth to purchase up to 2.5 ounces of cannabis.
Virginia Democrats are once again teeing up a bill to legalize adult-use cannabis sales that Republican Gov. Glenn Youngkin has no interest in signing.
The Virginia Senate voted, 21-19, entirely along party lines to pass Senate Bill 970 on Jan. 31. Sponsored by Sen. Aaron Rouse, D-Virginia Beach, the legislation aims to establish a framework for licensed and regulated adult-use dispensaries, allowing those 21 years and older in the commonwealth to purchase up to 2.5 ounces of cannabis.
Under S.B. 970, the Virginia Cannabis Control Authority (CCA) could begin issuing adult-use licenses by Sept. 1, 2025, through a structured application process for retail, cultivation, manufacturing, transportation and laboratory businesses. However, the bill provides that no retail sales may occur before May 1, 2026.
“This bill prioritizes public safety and creating a well-regulated marketplace that keeps adult products out of the hands of kids,” Rouse said Jan. 31 on the Senate floor. “The safety and security of all Virginians is a top priority of this legislation. And in recent years, we’ve seen the unchecked proliferation of illegal and unregulated marijuana stores that have put Virginians at risk as unlicensed drug dealers sell billions of dollars of untested and untaxed products, and frequently to children.”
The Senate’s passage came as House Bill 2485, companion legislation sponsored by Del. Paul Krizek, D-Fairfax, works its way through the lower chamber, where Democrats also hold a slim majority, 51-49.
The push to create a licensed and regulated marketplace comes more than 3 1/2 years since a possession and home grow bill signed by former Democratic Rep. Ralph Northam went into effect, allowing Virginians 21 and older to possess up to 1 ounce of cannabis and cultivate up to four plants in their private residences.
However, those in the commonwealth have nowhere to legally purchase adult-use cannabis that’s been tested for mold, pesticides, heavy metals and other contaminants unless they travel to another state that has more permissive cannabis laws, such as bordering Maryland.
“A well-regulated marijuana retail market is a necessity for public safety and will ensure that products are tested for safety, accurately labeled, sold in a controlled environment, and kept away from kids,” Rouse said. “This bill requires seed-to-sale tracking, detailed testing requirements, and secure transportation protocols to maintain security at every level.”
In addition, the CCA would be tasked with setting up a level playing field to ensure the geographic diversity of adult-use licenses under the legislation.
The legislation calls for up to an 11.625% tax on commercial cannabis sales that would be comprised of an 8% state cannabis tax, a 2.5% local tax option and a 1.125% state sales-and-use tax.
After accounting for the CCA’s expenses of running a regulated cannabis program, the net profits from tax revenues collected would be appropriated as follows:
- 60% to a Cannabis Equity Reinvestment Fund;
- 25% to the Department of Behavioral Health and Development Services for substance-use disorder prevention and treatment programs;
- 10% to pre-kindergarten programs for at-risk 3- and 4-year-olds; and
- 5% to public health programs aimed at preventing drugged driving and underage consumption.
The 2025 legislation comes after Democratic lawmakers passed similar legislation last year—entirely along party lines in both chambers—only to be defeated by Youngkin’s veto. In his 2024 2024 message, Youngkin said he was worried that legalizing adult-use sales would endanger Virginia’s public health and safety.
Although Youngkin’s prohibition stance hasn’t changed and his veto threat remains, Krizek said earlier this year that Democrats don’t intend to give the governor a “free pass” on the “important” public policy issue.
During Friday’s floor session, Sen. Adam Ebbin, D-Alexandria, pointed out a few differences between the 2025 and 2024 renditions of the legislation. Specifically, last year’s bill called for 40% of the tax revenue from adult-use sales to go toward funding pre-kindergarten programs.
Notably, Ebbin and Sen. Louise Lucas, D-Portsmouth, sponsored the 2021 legalization bill that Northam signed. That bill also intended to create a commercial marketplace for sales; however, it included a reenactment clause for certain provisions. The problem was that Democrats lost their trifecta in the November 2021 election, and the sales provision was never reenacted.
Ebbin said last week that the 2025 legislation’s tax revenue distribution ratios veer from the original intent of the 2021 law.
“I just want to say we have a strong need—we have a lot of kids on the waitlist for pre-K,” he said. “This is going to be a while before this bill finally makes it through the process. But I would hope that whatever’s finally adopted—whether it’s a conference report, or if it doesn’t make it through this year—that we don’t tinker with that formula, because we have a strong need for pre-K, and it benefits a lot of kids in at-risk communities.”
Under S.B. 970, the pre-K revenue percentage is cut by 30%, while the state’s Cannabis Equity Reinvestment Fund is increased by 30%. The Cannabis Equity Reinvestment Fund would support people and communities historically and disproportionately targeted by drug enforcement; provide scholarship and other educational opportunities; award grants to support workforce development; and contribute to other equity-focused programs.
Also under S.B. 970, no county, city or town hall would be allowed to adopt a local ordinance or resolution that prohibits licensed cannabis operations entirely without putting a ballot question before its voters. The governing body of a locality would have to, by resolution, petition its circuit court for a referendum on the question.
However, local governments could regulate zoning and land-use requirements for cannabis businesses as well as setting hours for when dispensaries could sell cannabis products, according to the bill. Municipalities would also have local control to prohibit cannabis use in public places, such as parks, playgrounds and sidewalks.
Cultivation licenses as it relates to canopy structures would include five tiers with limits of 2,000, 10,000, 25,000, 45,000 and 70,000 square feet, according to the legislation. The CCA could issue up to 50 licenses for each of the first two tiers (2,000 and 10,000 square feet), up to 10 licenses for the third tier, up to five licenses for the fourth tier and up to 10 licenses for the fifth tier. Outdoor cultivation would be limited to the first two licensing tiers, while indoor cultivation would be allowed for all five.
The state’s five existing medical cannabis operators, known as pharmaceutical processors in Virginia, could open five adult-use dispensaries that are co-located with their current medical cannabis retail facilities, according to the bill.
