Legalization and Regulatory Framework for Adult-Use Marijuana

On the heels of the election of Governor Abigail Spanberger, who has publicly supported the legalization and sale of adult-use marijuana, Delegate Paul Krizek introduced HB624 on January 14, 2026. The bill would establish a framework for the creation of a retail marijuana market in the Commonwealth, to be administered by the Virginia Cannabis Control Authority.

The bill largely tracks the framework adopted by the Joint Commission to Oversee the Transition of the Commonwealth of Virginia into a Cannabis Retail Market.

The bill contains significant changes from prior legislation. Of note, retail sales could begin as early as November 1, 2026.

Key provisions of the bill as laid out in Marijuana Moment include:

Purchasing Limits: Adults may purchase up to 2.5 ounces of marijuana per transaction, or an equivalent amount of other cannabis products as determined by regulators.
Regulatory Oversight: The Virginia Cannabis Control Authority will oversee licensing and regulation, including the control of possession, sale, transportation, distribution, delivery, and testing of cannabis.
Taxation: A retail cannabis sales tax of up to 11.625% will be imposed, comprising a 1.125% state retail and use tax and an 8% marijuana-specific tax. Additionally, local governments can levy a 3.5% tax.
Revenue Allocation: Tax proceeds will fund administrative costs, a Cannabis Equity Reinvestment Fund, pre-kindergarten programs, substance use disorder prevention and treatment, and public health initiatives aimed at preventing impaired driving and underage use.
Local Regulations: Local governments will not be allowed to prohibit marijuana businesses altogether, ensuring industry consistency across jurisdictions.
Delivery Services: Cannabis deliveries will be permitted.
Product Restrictions: Serving sizes will be limited to 10 milligrams THC, with a maximum of 100 mg THC per package.
Existing Medical Operators: Medical cannabis operators seeking to enter the adult-use market will need to pay a $10 million licensing conversion fee.
Labor Protections: Cannabis businesses will be required to establish labor peace agreements with their employees.
Future Considerations: A legislative commission will evaluate potential new licenses, including on-site consumption licenses and microbusiness cannabis event permits—enabling sales at venues like farmers markets or pop-up events. The commission will also explore the possibility of involving the Virginia Alcoholic Beverage Control Authority in marijuana regulation and enforcement.

We will continue to monitor developments in the Commonwealth of Virginia as the legislature moves forward with establishing an adult-use marijuana market. Buchanan’s Cannabis Practice and Government Relations Groups are well poised to assist your cannabis business and look forward to working with you.