The latest Virginia cannabis news
February 18, 2026
Things have been busy in the Commonwealth with these last few days being particularly active at legal and regulatory level. Let’s dive in!
What We’ve Learned with the CCA
February 17, 2026 is likely to mark one of the most pivotal days in Virginia cannabis adult-use legalization as we had a Cannabis Control Authority Board of Directors meeting and we saw the passage of two of the most important pieces of cannabis legislation.
For starters, the February CCA Board meeting. The legislative and regulatory updates were sparse at this month’s meeting (lasting roughly fifteen minutes) and that may seem disconcerting, but we learned a great deal through what was said and what also was not said. Timelines are still in place; there is no retreat on that. The Board is optimistic about cannabis licensing beginning as soon as July 1 of this year.
And, one thing we always look for with states and territories at this stage, there was no call for an executive session related to pending litigation. This is one of the biggest barriers a new adult-use market roll out can face. The wrath of attorneys. But as of this writing (knock on wood) no threats of such to slow things down.
The Bills and their Progress
There are close to a dozen cannabis related bills in various stages within the Senate and the House of Delegates, but the two most critical ones are SB 542 and HB 642. These bills are relatively similar and would establish the framework and formally launch adult-use cannabis stales in Virginia.
The great news is that on the same day as the CCA Board meeting, both of these bills passed within their respective chambers. SB 542 passed the Senate 21-19 and HB 642 passed the House of Delegates 65-32. We’re that much closer to the Governor signing a reconciled legalization bill into law and that could occur as soon as the end of this month or sometime (more likely) in March.
What to know now
We have some key provisions and details within these bills that we want to focus on here.
Both would allow for adults 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 start date for sales differs between the bills with the House measure aiming for a November 1, 2026 start date while the Senate measure would launch sales on January 1, 2027. Maybe split the difference and aim for December 1, 2026?
Excise taxes on cannabis products would be 12.875% with an additional 1.125% state tax and a mandatory 3% local tax (so a maximum of 17% tax) in the Senate bill and the House bill would have an excuse tax of 6% along with a 5.3% retail sales and use tax and a local tax of upwards to 3.5% (so a maximum of 14.8% tax).
We will either see these regulatory powers within the current Virginia Cannabis Control Authority if the House bill passes or a new combined Alcoholic Beverage and Cannabis Control Authority under the Senate bill. (This would also explain a lack of significant updates within the CCA Board meeting because who knows if it will be existing in its current form for much longer).
There will be a cap on retail licenses at just 350 throughout the state.
Distance requirements between dispensaries keep changing but ultimately, the final arbiters of this will likely be municipalities and counties who have a great amount of power in restricting or loosening requirements. But! They cannot legally bar a cannabis business from operating within its boundaries. No “dry counties” in Virginia.
Crucially, both bills have application requirements for licensure, including details on financial feasibility, and require securing a labor peace agreement from a certified union and supplying proof of such.
What to do now
Now is the time to get going. It may seem early (“We’re waiting for the Governor to sign”) but it really isn’t. You may think you have all your ducks in a row, but until you have some outside perspective, you may not fully know what your weaknesses and what the threats are for your operations.
Additionally, this is going to be a highly competitive process. Do you really want to delay until the last possible minute and play catch up on an opportunity like this?
Reach out to Square Deal today to get squared away and get on the path towards licensure!