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Virginia Lawmakers Reject Governor’s Substitute for Cannabis Sales Bill

The legislation, to allow adult-use dispensary sales in 2027, is in jeopardy of failing after lawmakers declined to take up the governor’s amendments.

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Virginia lawmakers behind an adult-use cannabis dispensary sales bill decided they’d rather risk losing the entirety of their legislation than adopt Democratic Gov. Abigail Spanberger’s amendments.

The Virginia Senate voted, 21-18, and the Virginia House voted by voice on April 22 to reject the governor’s amended substitute, which sponsors of the original legislation said would undermine restorative justice measures that intend to right the wrongs of prohibition.

Both votes came in blocks with other bills that the legislative chambers chose to return to the Spanberger in their original form, meaning the governor can now veto, sign or let those bills become law without her signature. If she decides to veto the cannabis sales bill, the Democratic-controlled Legislature does not have the supermajority required for an override.

The Legislature’s rejection comes after Spanberger chose not to sign the cannabis bill on April 13. Her proposed amendments, in part, would have criminalized public cannabis use and underage possession, in addition to creating a new felony offense for transporting certain amounts of cannabis that would have been punishable by life in prison.

The governor also amended the bill to increase the cannabis excise tax rate and remove tax revenue allocations for specific programs, including 30% that was earmarked for a Cannabis Equity Reinvestment Fund. That fund, under the Legislature’s bill, would support people, families and communities “historically and disproportionately targeted and affected” by drug enforcement.

Sen. Lashrecse Aird, D-Henrico, sponsored the legislation in the upper chamber, while Del. Paul Krizek, D-Fairfax, sponsored it in the House. They urged their colleagues to reject the governor’s amendments.

“The governor’s substitute substantially introduces harsh escalating criminal penalties that risk repeating the very harm legalization was meant to correct, particularly in communities that have historically been harmed by prohibition,” Aird said in a statement she released with Krizek the day after the governor proposed her amendments.

In addition to the criminal penalties, the lawmakers rejected gubernatorial amendments that would have:

  • pushed the adult-use sales launch date from Jan. 1 to July 1, 2027;
  • reduced possession limits from 2.5 to 2 ounces;
  • increased the excise tax on retail sales from 6% to 8% beginning on July 1, 2029;
  • reduced the dispensary license cap from 350 to 200 stores before Jan. 1, 2029;
  • eliminated dedicated tax revenue allocations for early childhood care and education, behavioral health services and public health programs (in addition to the equity fund); and
  • extended the allowance of intoxicating hemp products until November 2026.

Krizek said the proposals would have created a less accessible legal marketplace.

“These changes reduce the number of available licenses, delay the launch of retail sales and impose high barriers to entry, resulting in revenue losses, delayed economic opportunity for market participants and the elimination of investment to small businesses,” he said. “These barriers do not eliminate demand; it simply redirects it back to the illicit market.”

After adults 21 and older in Virginia have been allowed to possess 1 ounce of cannabis and grow up to four plants at home since 2021, but with nowhere to legally purchase it, Aird and Krizek said their legislation offers the commonwealth the opportunity to implement a cannabis marketplace that is safe, accessible and fair.

They said the governor’s now-rejected substitute fell “short” of the standard they established after years of collaborating with fellow lawmakers, state regulators, industry leaders, advocates and public safety stakeholders.

“By making the legal market hard to access, [the governor’s] proposal allows the illicit market to continue to thrive in every corner store in our commonwealth,” Aird said. “That undermines the core goals of legalization and increases the likelihood of untested products, inconsistent potency and lacks consumer protection.”

The bill that the Legislature is now returning to Spanberger in its original form would assign the Virginia Cannabis Control Authority (CCA) to oversee the adult-use program, including licensing and regulating cultivation, processing, retail sales and testing laboratories. The Virginia Alcoholic Beverage Control Authority would help the CCA with enforcement mechanisms.

It would also align the state’s definition of hemp with a forthcoming federal ban on intoxicating products, shifting the regulation and enforcement of those products from the Virginia Department of Agriculture and Consumer Services to the CCA.

Edible cannabis products would be capped at 10 milligrams of THC per serving and 100 milligrams per package.

To meet the Jan. 1 adult-use dispensary launch date, the legislation included a $10 million license conversion fee for the state’s five existing medical cannabis operators to transition their operations: The one-time fee could be paid over three years. Each of the state’s medical licensees is currently allowed to operate up to six dispensaries in their respective health service regions.

The legislation would prevent local governments from opting out of allowing cannabis establishments in their municipalities, although they could impose zoning ordinances and control fixed business hours for dispensaries.

After Virginians had been caught in somewhat of a legalization purgatory for the past five years, with former Republican Gov. Glenn Youngkin vetoing previous sales bills, Spanberger indicated along her 2025 campaign trail that she would support an adult-use sales bill.

The fate of such a bill is now back on her desk.

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