Virginia's General Assembly passed legislation to open a legal retail cannabis market. Governor Abigail Spanberger has until April 13 to sign it, veto it, or send it back with amendments. She has publicly said she supports a retail market.
What the Bill Does
Senate Bill 542 and House Bill 642, sponsored by Senator Lashrecse Aird and Delegate Paul Krizek, passed both chambers in the final hours of the 2026 session. The Senate voted 21-18. The House followed at 64-32.
The bill creates a statewide licensing system, tax structure, and regulatory framework under the Virginia Cannabis Control Authority (CCA). Retail sales to adults 21 and older begin January 1, 2027.
A few other things in the bill worth knowing: the possession limit increases from 1 ounce to 2.5 ounces. Retail licenses are capped at 350 statewide until January 1, 2028. The CCA can begin accepting license applications as early as July 2026. Oversight of intoxicating hemp products transfers from VDACS to the CCA.
The Tax Structure
Expect layered taxes at the register. The bill sets a 6% cannabis excise tax on top of the existing 5.3% retail sales and use tax. Local governments can tack on up to an additional 3.5%.
Total tax burden at the point of sale could reach around 15% in localities that max their local rate. The final compromise kept the rate below the threshold the Senate had initially resisted.
What It Means for the Hemp Market
Virginia's hemp-derived THC market has operated in a gray zone for years. Under this bill, the CCA takes over regulation of intoxicating hemp products from the Virginia Department of Agriculture and Consumer Services. That's a significant shift in oversight.
What that transition looks like in practice is still being worked out. Hemp retailers should pay attention to CCA rulemaking over the next several months.
If you want the full background on how Virginia got here, we covered the General Assembly's earlier framework vote in February: Virginia Recreational Marijuana Sales 2026: General Assembly Passes Bills to Launch Legal Market.
What to Watch Next
The April 13 deadline is the immediate thing to watch. Spanberger is expected to sign, but her office hasn't confirmed timing. Once signed, the CCA's regulatory rulemaking process kicks off and the July licensing window opens.
Ten cannabis-related bills total were sent to the governor's desk this session, including measures protecting parental rights of cannabis users and improvements to the medical cannabis program. Those are also worth tracking.
For Virginians in Richmond and the surrounding area, Chester Cannabis Co. delivers hemp-derived THC gummies, edibles, and vapes now. No waiting until January. Browse the menu at chestercanna.co.
