Virginia lawmakers would not let localities opt out of cannabis sales

The Free Lance Star
​ERIC KOLENICH Richmond TimesDispatch

As Democratic lawmakers in Virginia prepare to launch a legal market to buy and sell recreational cannabis, they intend to make the law more absolute. Localities would not be able to opt out if the bill passes as currently proposed.

Earlier this year, when the General Assembly passed a bill to greenlight the sale of marijuana, the patrons included a provision that would let a county or city conduct a referendum and keep marijuana sales illegal, should the residents choose to do so. Gov. Glenn Youngkin, who opposes establishing a market for legal cannabis sales, vetoed the legislation. 

Now that Democrats will soon control the governor's mansion in addition to both chambers of the legislature they plan to reintroduce the bill when the General Assembly convenes next month. On Tuesday, a joint commission on cannabis unveiled 50 ways in which lawmakers intend to change the bill from its 2025 version, including elimination of the opt-out clause. 

"There will not be dry counties like in the days of alcohol," said Del. Paul Krizek, D-Fairfax, one of the bill's sponsors, referring to the Prohibition era of the 1920s and '30s. 

If Gov.-elect Abigail Spanberger signs the legislation she has indicated support for it the legal market to buy and sell marijuana would begin Nov. 1, 2026. The law would aim to promote agriculture, reduce the racial disparities created by the prohibition of marijuana, protect public safety and promote small business, Krizek said. Virginia legalized the recreational use of marijuana in 2021 but never created a framework for buying or selling it. 

Lawmakers have not yet officially submitted the bill and can still make changes. They still want to hear from the public, they said Tuesday. 

"There's still a lot of tweaking going on," Krizek added. 

Letting a county or city remove itself from the legal market would force the locality to opt in to the black market, Krizek said. 

Todd Gathje, from the conservative advocacy group The Family Foundation, disputed the idea that opting out would encourage illegal sales. In some states that have legalized marijuana sales, the illegal market persists because it offers a cheaper product. 

"The illegal market is alive and well," Gathje said. 

Krizek said the legal market will displace illegal sales because the state will ensure products are tested to be clean and safe and properly labeled to show their dosage. Plus, authorities will make sure stores check that buyers are at least 21 years old. Currently, tobacco shops that illegally sell cannabis in Southwest Virginia often offer products contaminated with mold or remnants of fecal matter and no indication of their dosage, Alaina Holt, a professor at Virginia Commonwealth University, told the Virginia Cannabis Control Authority earlier this fall. 

There would be a windfall for localities in the form of a sales tax. Buyers would pay 12.75% in taxes, with up to 3.5% going to the locality. 

Lawmakers are also considering extending the distance between licensed marijuana shops from 1,000 feet to one mile to spread them out. They plan to issue 350 retail licenses, meaning there could be almost as many cannabis dispensaries as Virginia Alcoholic Beverage Control stores across the state. 

The city of Richmond already passed an ordinance that prohibits marijuana, tobacco, nicotine or vape shops from opening near homes, schools and day cares. The law bans them from 80% of the city. Many of these shops are already selling cannabis illegally, and they have become hotspots for crime, police said. 

Sen. Adam Ebbin, D-Alexandria, said he would like the legislature to toughen the penalty on public consumption. Currently, if a person is caught consuming cannabis in public, he or she can receive a $25 civil fine. A stiffer penalty would help residents who are concerned they will smell marijuana as they walk down public sidewalks, he said. 

But one member of the public said that residents who rent apartments may not be allowed to smoke cannabis in their homes if the landlord prohibits smoking. If the resident does not have a private yard, he or she has no place to consume. 

Under the proposed bill, the Cannabis Control Authority would start accepting applications for licenses in the summer, and sales would begin Nov. 1, 2026. Some members of the public have said small businesses may not be able to open that quickly, and an early start date will help large-scale operators dominate the market. 

Krizek said legislators are writing the bill so that big-tobacco-type companies cannot monopolize the industry. The bill would create a microbusiness license that allows small businesses to grow, process and sell their own marijuana. The provision would limit the amount of space a small business could devote to growing the plant, which is known as a canopy limit. 

The legislation also would create a license for businesses to deliver marijuana which has become a popular option for customers.