Virginia sponsors of adult-use cannabis bills SB 542 and HB 642 oppose Gov. Abigail Spanberger's (D) proposed amendments to delay sales, raise taxes, add criminal penalties, and redirect equity funding.
Sen. Lashrecse Aird (D) said the governor's amendment "substantially introduces harsh escalating criminal penalties that risk repeating the very harm legalization was meant to correct, particularly in communities that have historically been harmed by prohibition, while simultaneously encouraging intoxicating hemp products to continue to be sold without any safeguards."
Del. Paul Krizek (D) said the proposal "creates a less accessible legal marketplace": "These changes reduce the number of available licenses, delay the launch of retail sales and impose high barriers to entry, resulting in revenue losses, delayed economic opportunity for market participants and the elimination of investment to small businesses. These barriers do not eliminate demand, it simply redirects it back to the illicit market."
- Sales launch: January 1, 2027 (lawmakers) vs. July 1, 2027 (governor).
- Purchase limit: 2.5 ounces (lawmakers) vs. 2 ounces (governor).
- Excise tax: 6% (lawmakers) vs. 8% from July 1, 2029 (governor), plus 5.3% retail sales tax and up to 3.5% local tax under both.
- Revenue: lawmakers allocated 30% to the Cannabis Equity Reinvestment Fund, 40% to early childhood education, 25% to the Department of Behavioral & Developmental Health Services, and 5% to public health; the governor would consolidate all into the general fund, eliminating the Equity Reinvestment Fund.
- Criminal penalties: Spanberger would make public use a class 4 misdemeanor (currently a $25 civil fine); under-21 possession a class 1 misdemeanor with a $500 minimum fine or 50 community service hours and a six-month license suspension; and sale or distribution of 50 or more pounds a class 2 felony punishable by life imprisonment.
- The governor would remove study language on on-site consumption and microbusiness event permits.
Both bills set servings at 10 mg THC with a 100 mg per-package cap, allow delivery, bar local opt-outs, require labor peace agreements, and place the Virginia Cannabis Control Authority over cannabis and hemp. Medical operators could convert to adult-use for a $10 million fee.
Personal possession and home cultivation have been legal in Virginia since 2021; former Gov. Glenn Youngkin (R) twice vetoed retail sales bills. Spanberger signed bills Monday protecting parental rights of consumers and allowing medical cannabis in hospitals, and proposed amendments to resentencing and delivery rules.
The legislature reconvenes April 22 to consider the governor's proposal.
