A key Virginia Senate committee has approved a bill to legalize and regulate adult-use marijuana sales, clearing the first legislative hurdle amid opposition from Governor Glenn Youngkin. The bill, sponsored by Sen. Aaron Rouse (D), passed the Senate Committee on Rehabilitation and Social Services with an 8-7 vote on Friday. However, challenges lie ahead, as Youngkin has indicated he intends to veto the legislation, as he did with a similar proposal last year.
A Legislative Push for Legal Sales
The proposed measure, SB 970, builds on previous efforts by lawmakers to establish a regulated cannabis market in Virginia. Last year, Rouse and Del. Paul Krizek (D) presented competing versions of a retail framework, ultimately reaching a compromise that passed the legislature but was blocked by the governor. This year, SB 970 and its companion bill, HB 2485, seek to revive the effort, introducing updates to the previously vetoed proposal.
Speaking before the committee vote, Rouse emphasized the importance of creating a safe and regulated marketplace for adult-use cannabis.
“This bill prioritizes public safety by ensuring products are tested, labeled accurately, and sold in a controlled environment,” Rouse said. “Unregulated marijuana sales have flourished, endangering Virginians with untested and untaxed products, often sold to children.”
The bill would allow regulated cannabis sales to begin by May 1, 2026, with licenses for businesses issued as early as September 2024. The legislation outlines strict guidelines to govern cultivation, sales, and taxation, aiming to curb illegal operations and enhance consumer safety.
Governor’s Resistance and Public Safety Concerns
Governor Youngkin has remained steadfast in his opposition to retail cannabis sales. In a recent State of the Commonwealth address, he reiterated his concerns, claiming legalization could harm children, worsen mental health issues, and lead to increased violent crime.
“Everyone knows where I stand on establishing a retail marijuana market,” Youngkin said, signaling that he is unlikely to collaborate with lawmakers on this issue.
Despite these objections, proponents argue that regulation is key to addressing the very problems Youngkin highlights. By creating a legal framework, they say, Virginia can eliminate illicit stores, ensure product safety, and generate tax revenue for public programs.
Key Provisions of the Legislation
The bills, SB 970 and HB 2485, present a comprehensive framework for the retail marijuana market. Some notable details include:
- Purchasing Limits: Adults could buy up to 2.5 ounces of marijuana per transaction or equivalent cannabis products determined by regulators.
- Tax Structure: Cannabis products would be taxed at up to 11.625%, comprising a state retail tax (1.125%), a marijuana-specific tax (8%), and an optional local tax (2.5%).
- Local Control: Municipalities could ban cannabis businesses through voter-approved referendums.
- Retail Restrictions: Stores cannot operate within 1,000 feet of another marijuana retailer.
- Cultivation Rules: Growers would be regulated by canopy size, with only smaller operations allowed to cultivate outdoors.
- Operational Guidelines: Retail transactions must occur face-to-face, prohibiting vending machines, delivery services, and online sales.
- Existing Medical Providers: Licensed medical marijuana providers entering the adult-use market could establish up to five additional retail locations.
Addressing the Illicit Market
Supporters of legalization point to the proliferation of unregulated cannabis stores as evidence of consumer demand and the need for oversight. Rouse warned that these illegal operations put Virginians at risk by selling untested products, often targeting younger demographics.
“A regulated market is essential for public safety,” Rouse said. “It ensures products meet safety standards and remain out of the hands of children.”
The legislation also seeks to prevent market monopolization, limiting license holders to no more than five retail establishments. Additionally, it includes safeguards against conflicts of interest, disqualifying applicants with recent felony convictions or ties to law enforcement.
Future of the Bill
Following its approval by the Senate Committee on Rehabilitation and Social Services, SB 970 will proceed to the Senate Finance & Appropriations Committee for further consideration. If passed, it will still face a challenging path, particularly given the governor’s stated opposition.
For now, supporters and opponents of marijuana legalization continue to debate the potential impact of the proposed market. Proponents argue that regulation is a necessary step toward addressing public safety and economic opportunities, while critics caution against unintended consequences.
Virginia remains at a crossroads in its cannabis policy. With adult-use marijuana already legalized, the push for a retail market represents the next step in shaping the state’s approach to cannabis regulation. As the legislative session unfolds, all eyes will be on lawmakers to determine whether this latest effort can overcome political roadblocks.
