Passed! What’s Next in Virginia Cannabis
March 14, 2026
At long last, we have a cannabis legalization heading to the Governor’s desk…and this time, the Governor should actually sign it! The timelines for cannabis legalization in the Commonwealth are aggressive to get the long-awaited market up and running at the start of next year, so let’s not waste time and dive into what’s in the bill that you should know and what is going to be coming up soon.
Key Points for Legalization
We already have a high-level blog of the House of Delegates version of the bill, and a significant amount of the language has been mirrored in the bill that ultimately was passed by the Senate and House. However, there are some notable updates that individuals and businesses should bear in mind.
Microbusinesses will be allowed to have two physical locations in which they can operate their single license out of, but these locations must be within 10-miles of one another. An example of this would be having cultivation operations at one location and retail cannabis operations at another. They will also be subject to distance requirments as a retailer would be.
The launch of retail cannabis sales is scheduled for January 1, 2027. This was a sticking point between House and Senate versions of the bill (with previous versions looking at a launch on November 1, 2026). Even though the launch of sales is pushed out by two months, compared with many other states this is still a pretty fast timeline to get the market off the ground.
There will be a 6% excise tax as well as 5.3% retail sales and use tax along with municipalities being able to set local taxes as high as 3.5%.
The current Virginia Cannabis Control Authority will formally lead the rollout of licenses and applications for licensure (as opposed to a joint alcohol-cannabis commission).
Distance requirements also apply to microbusinesses, just as they do with retail operations. This is the case between cannabis businesses and select other business or non-profit designated buildings such as houses of worship or schools.
Municipalities cannot opt-out of allowing cannabis operations in their boundaries, but they can have certain restrictions (or allowances, such as distance variances if an ordinance is passed).
What’s Next
Governor Abigail Spanberger has a series of cannabis related bills on her desk now. There is this legalization bill along with a bill to provide resentencing relief for people with prior cannabis convictions and another bill to protect the parental rights cannabis consumers. The most immediate need for legalization will be Spanberger’s signature, but all indications are that she will sign this bill and the others shortly.
Depending on the timing, we could then be seeing a very busy and active Cannabis Control Authority Board of Directors meeting, the next one of these being scheduled for April 8. While we may not get a full application unveiled then, we should get a clearer sense on some of the requirements they will be looking for in application submissions.
Final regulations are set to be unveiled fully on or before September 1.
What Can You Do Now
Now is the ideal time to start preparing for what is to come in the application process. Strategizing which license or licenses are ideal for you, seeing if you need a property (or need to move locations), identifying necessary vendors for operations, and so forth.
We at Square Deal offer decades of experience in the cannabis and hemp space nationwide. We win licenses. We get business open. We offer the best services at the best price for you. Get in touch today to get started, because there is no time to wait and you don’t want to be in a position scrambling for a license.