Video: Gov. Abigail Spanberger, VA Sen. Lashrecse Aird, Del. Paul Krizek Announce Creation of “safe, legal, and well-regulated cannabis market” Starting 7/1/27

Good stuff from Gov. Abigail Spanberger, State Senator Lashrecse Aird and Del. Paul Krizek, who a few minutes ago announced details of Virginia retail cannabis legislation. See below for video and highlights from their remarks…

• Gov. Spanberger: “I am excited to stand alongside Senator Lashrecse Aird and Delegate Paul Krizek to announce that we have agreed to a proposal that will create a safe, legal, and well-regulated cannabis market here in the Commonwealth of Virginia, with recreational sales beginning on July 1st, 2027.  We will do it in a way that protects consumers, tamps down with the goal of eliminating the illicit market with clear enforcement and regulatory authority, and it creates a more competitive market for small businesses and farmers. The budget proposal put forth by the House of Delegates outlines the specifics, and the patrons will be discussing the bill in more details in a moment. But before I turn it over, I’d like to say that Senator Aird and Delegate Krizek have been fantastic partners throughout this whole process. And that is because we have always shared the same priorities and goals for this marketplace, including measures to keep our kids safe once the marketplace is open. It’s important to all of us that retailers don’t advertise to young people, that they comply with the new laws in place about selling to minors. And I cannot overstate how collaborative and engaged Senator Aird and Delegate Krizek have been with me and my entire team. After I sent back amendments to the initial bill, we began talking in earnest about how to get this bill over the finish line. And this is what good governing and collaboration looks like – bringing people together, listening carefully, focusing on solutions that are practical, enforceable, and in the best interests of Virginians. I appreciate these legislators working with me to create a regulatory framework that Virginians can trust. And in the end, we all wanted to deliver a marketplace that the Commonwealth could implement effectively for the long term. We have always had this same end goal, an end goal that has been years in the making. So I am proud to stand alongside these dedicated legislators and to be working alongside them to deliver a marketplace built to last. Virginians have been waiting a long time for policy makers and a governor who wanted to do this and get it right. And today we are taking an important step forward. And with that, I would like it to turn it over to Senator Lashrecse Aird.

• • Sen. Aird: “I’m proud to be here this morning to discuss the retail marketplace legislation agreement that has been reached. I want to start by saying that to compromise and find agreement, leaders have to be open. They have to be willing to know the priorities, but understand that to reach agreements you have to be flexible in the approach that is taken. And this agreement and this compromise absolutely reflects that. Too many have been affected by real harms for us to get here. And this agreement reflects responsible regulation that protects young people, gives Virginians a safe legal option, and avoids criminalizing adult use. I want to thank the governor…Delegate Krizek, members of her administration and the countless advocates that have been part  of this conversation from the very beginning and especially during the period of time where we were working  together to find agreements and shared compromises. A safe, regulated retail market is not just about legalization.  It is about public safety, consumer protection, and finally giving Virginians a legal marketplace that can compete with and displace the  illicit market. And to start out with doing that, there are several things that need to occur. One, if our goal is to move consumers away from the illicit market, then the legal market has to be able to compete. And keeping the tax rate low at the start is not just an  economic decision, it is a public safety strategy. So in this agreement, the state tax will begin at 6% when retail sales launch and it will rise to 8% only after July 1, 2029, allowing the me legal market to establish time to to be  structured um before any increases take place. Further, a regulated market only works if it can actually be accessed by  those who plan to use it. By restoring the retail cap to locations, which is in this legislation, we are giving the legal market a real opportunity to  meet demand across Virginia. But I would emphasize that that will not roll out all at once or right away. It will  allow us to assess geographically and otherwise, the regulators that is, how that should be rolled out  throughout the Commonwealth. Further, like any compromise, um we we all share the belief that recriminalization is not the answer. We have decades of evidence showing that criminalization alone does not eliminate demand or in the illicit  market. So, we’ve taken several steps to ensure that this is the case. We ensure that several of the provisions for  enforcement are strong and in place but without criminalizing individuals…”

• Del. Krizek: “I want to thank the governor and of course my dear partner Senator Aird…we’ve been working together it seems like for decades on this, but and all my legislative colleagues, the stakeholders, the regulator, the cannabis control authority and of course Senate and House leadership. I want to emphasize that building the market correctly matters as much as launching it. And you heard that from Senator Aird, cannabis enforcement created real consequences for individuals families and documented disproportionate impact to communities. A legal marketplace should not lock those same communities out of the economic opportunity created by reform. So part of the responsible legalization that we have before you today is recognizing that those past cannabis policies did not affect every community equally. As we move into a legal marketplace, we have an obligation to make sure opportunity is not limited only to those who already have access to capital and and political connections. So the goal, indeed the goal really is to create a cannabis market that is that is responsible and one that is regulated, competitive, but most important open to small businesses that deserve a real chance to succeed. And so what this compromise has, is it restores a key investment into the small business loan fund. Specifically, 75% of license fee deposits in the first year will be directed into the cannabis equity , business loan fund. This is important because access to capital is one of the biggest barriers for small businesses entering a highly regulated marketplace. A license alone does not create a successful small business. Entrepreneurs need access to capital, technical support, and a fair shot to compete. Restoring this investment into the loan fund is critical is a critical part of making this promise real. The compromise also preserves a pathway for micro businesses. It includes the authority to issue up to 100 micro business licenses by May 1st, 2027.  Micro businesses are essential because they help prevent the market from being dominated solely by the largest and best-capitalized ventures. If we want a marketplace that reflects Virginia, then small businesses cannot be an afterthought. Micro businesses need a meaningful path into the market from the beginning. And this compromise also allows micro businesses to operate up to two locations under their license structure, giving the small operators more flexibility…

UPDATE – Press release from Gov. Spanberger’s office.

Governor Spanberger, Senator Aird, & Delegate Krizek Announce Agreement to Create a Legal Retail Cannabis Market in Virginia

Agreement Strengthens Public Safety, Establishes Greater Protections for Kids and Families, & Expands Safeguards for Consumers

RICHMOND, VA — Governor Abigail Spanberger, Senator Lashrecse Aird, and Delegate Paul Krizek today announced an agreement to create a safe, legal, and well-regulated adult-use retail cannabis market through the budget process — completing a years-long process that began in 2020.

The proposed compromise legislation strengthens public safety, establishes greater protections for kids and teenagers, expands safeguards for consumers, and offers greater flexibility for entrepreneurs while prioritizing responsible market development. Under the legislation, sales would begin on July 1, 2027, providing the Cannabis Control Authority (CCA) sufficient time to develop regulations, establish testing and safety standards, and build the necessary oversight framework to ensure the marketplace launches safely and responsibly.

“Today, I’m excited to stand alongside Senator Aird and Delegate Krizek to announce that we have agreed to a compromise proposal that will create a safe, legal, and well-regulated cannabis marketplace here in Virginia — with recreational sales beginning on July 1, 2027,” said Governor Abigail Spanberger. “We will do it in a way that protects consumers, targets the illicit market with clear enforcement and regulatory authority, and creates a more competitive market for small businesses and farmers.”

Governor Spanberger continued, “This is what good governing and collaboration look like — bringing people together, listening to families and public safety leaders, and focusing on solutions that are practical, enforceable, and in the best interest of Virginians. In the end, we all wanted to deliver a marketplace that the Commonwealth could implement effectively for the long-term. I’m proud to stand alongside these dedicated legislators, and to be working alongside them to deliver a marketplace built to last.”

“Getting this done took hard conversations and a shared commitment to move Virginia beyond the failed status quo,” said Senator Lashrecse Aird. “Virginia legalized adult possession years ago, but without a regulated retail market, we left the illicit market to fill the gap. This compromise gives us a smarter and safer path forward — one that protects consumers, keeps products tested and accurately labeled, and creates a legal marketplace that is affordable and accessible enough to actually compete. Too many have suffered real harms for us to get here, and this agreement reflects responsible regulation that protects young people, gives Virginians a safe legal option and avoids criminalizing adult use.”

“This agreement reflects the kind of collaboration Virginians expect from their leaders. Bringing people together, working through difficult issues, and finding a responsible path forward,” said Delegate Paul Krizek. “For too long, the failed war on drugs imposed real consequences on individuals, families, and communities, while doing little to create lasting public safety. As Virginia moves forward, we have a responsibility to build a marketplace that is not only legal, but fair, safe, and workable. This compromise restores important support for small businesses, protects impact licensees from predatory investment, and gives microbusinesses a real opportunity to succeed. The benefits of legalization should not be limited to the largest and best-capitalized players, and this agreement helps ensure Virginia entrepreneurs have a fair shot to thrive in this emerging market.”

The agreement reflects Governor Spanberger and the General Assembly’s shared focus on protecting consumers, entrepreneurs, and kids while ensuring strong penalties for bad actors, criminal organizations, and illegal out-of-state operators. Additionally, the agreement would end the 25:1 hemp loophole — passed and advocated for by the previous administration — which allowed highly intoxicating THC products to proliferate in Virginia with limited oversight.

Read below for additional details on the proposed compromise legislation to create a safe, legal, and well-regulated adult-use retail cannabis market in Virginia:

• Creates a maximum of 350 retail cannabis establishment licenses — comparable to commercial markets in other states — and increases the possession limit from 1 ounce to 2 ounces. The CCA would begin accepting applications for licenses on February 1, 2027.
• Strengthens child safety protections — including prohibitions on cartoon advertisements, requirements for child-safe packaging, and prohibitions on products sold in the shape of animals, fruits, vehicles, or humans.
• Authorizes the CCA to create escalating penalties for failing to do ID checks — including license revocation for repeated underage sale and requirements that retail stores be no less than 1,000 feet from schools, hospitals, playgrounds, and drug treatment facilities.
• Strengthens oversight of industrial intoxicating hemp — which is currently regulated by the Virginia Department of Agriculture and Consumer Services — by transferring regulation to the CCA.
• Allows the CCA to maintain a public licensee registry, establish a tip line for members of the public to anonymously report concerns about illicit practices, investigate the ownership and control interests of licensees, and develop policies regarding the audit of ownership and financial relationships across licensees.
• Allocates the revenue of cannabis sales towards early childcare and education, K-12 education, behavioral health programming for substance use disorder prevention and treatment programs, public health programs, and the Cannabis Equity Reinvestment Fund.
• The fund — established in the 2021 legislation — supports scholarships, workforce development, small business growth, reentry services, and community-based initiatives designed to expand opportunity, strengthen economic mobility, and help address longstanding disparities in communities historically and disproportionately targeted and affected by over-policing.
• Establishes a 6 percent state tax rate on cannabis products to transition Virginia to a regulated market from the current illicit market. After July 1, 2029, the state tax will increase to 8 percent to generate additional revenue for education and public health programs. The bill further allows localities to adopt an additional 1-3.5 percent local tax combined with the existing retail sales and use tax.