Last week, Virginia lawmakers passed three bills that will have a monumental impact on the cannabis industry within the state: SB 542, HB 642 and HB 75. These bills aim to advance proposals to legalize cannabis sales, provide a pathway to resentencing for prior marijuana convictions and allow medical cannabis access in hospitals for seriously ill patients.
Virginia’s House of Delegates and Senate passed differing versions of cannabis sales legislation, according to Marijuana Moment, and both will now be sent to the other body for consideration. The House approved its measure from Del. Paul Krizek (D) in a 65-32 vote, and the Senate moved its proposal from Sen. Lashrecse Aird (D) in a vote of 21-19.
Here are the key details of the Virginia cannabis sales legalization legislation, SB 542 and HB 642:
- Adults would be able to purchase up to 2.5 ounces of cannabis in a single transaction, or up to an equivalent amount of other cannabis products as determined by regulators.
- The House bill sets the state date for legal sales as November 1, 2026, while the Senate measure would allow them to begin on January 1, 2027.
- The Senate bill would set an excise tax on cannabis products of 12.875%, in addition to a 1.125% state sales tax and a mandatory 3% local tax. The House measure would apply an excise tax of 6% as well as a 5.3% retail sales and use tax, while allowing municipalities to set a local tax of up to 3.5%.
- Under the House bill, the Virginia Cannabis Control Authority would oversee licensing and regulation of the new industry, while the Senate legislation tasks that to a new combined Alcoholic Beverage and Cannabis Control Authority.
- The House bill calls for revenue to be distributed to a new Cannabis Equity Reinvestment Fund (60%), early childhood education (10%), the Department of Behavioral & Developmental Health Services (25%) and public health initiatives (5%). The Senate proposal, meanwhile, would put 30% toward the equity reinvestment fund, 40% for early childhood education, 25% to the behavioral and developmental health services department and 5% to public health initiatives.
- Local governments could not opt out of allowing marijuana businesses to operate in their area.
- Delivery services would be allowed.
- Serving sizes would be capped at 10 milligrams THC, with no more than 100 mg THC per package.
- Existing medical cannabis operators could enter the adult-use market if they pay a licensing conversion fee that is set at $15 million in the Senate bill and $10 million in the House measure.
- Cannabis businesses would have to establish labor peace agreements with workers.
- A legislative commission would be directed to study adding on-site consumption licenses and microbusiness cannabis event permits that would allow licensees to conduct sales at venues like farmers markets or pop-up locations. It would also investigate the possibility of the Virginia Alcoholic Beverage Control Authority becoming involved in marijuana regulations and enforcement.
The third bill, HB 75, aims to enact what’s known as “Ryan’s law,” a policy change providing that patients with terminal illnesses who are registered cannabis patients can access medical marijuana at health facilities such as hospitals. The chamber approved that legislation from Del. Karen Keys-Gamarra (D), in a 95-1 vote, according to Marijuana Moment.
It would require healthcare facilities to establish policies “to address circumstances under which an eligible patient would be permitted to use medical cannabis.”
Under the House legislation, healthcare facilities could suspend medical cannabis allowances if a federal agency such as the Department of Justice or Centers for Medicare and Medicaid Services takes enforcement action on the issue or issues a rule or notification expressly prohibiting use of medical cannabis in health facilities.
