Another meeting of the Virginia Legislative Commission was held where legislators and marijuana advocates discussed how to get ready for recreational cannabis sales in Virginia.
Del. Paul Krizek (D), chair of the Joint Commission to Oversee the Transition of the Commonwealth into a Cannabis Retail Market, began Monday’s meeting by noting it would be the second-to-last for the body—saying that at the next and final one in December, members will “go over the bill that we are working on now.”
It is planned that this body will make a suggestion that can be considered by the entire legislature in 2026, which begins in January.
Outside of these meetings [as a commission]We’ve met with as many stakeholders that we could to gather input for the recommendations,” said Sen. Lashrecse Aird, vice-chair of the panel.
Use and possession of marijuana has been legal in Virginia since 2022, but retail sales remain forbidden—a situation that’s helped fuel a multibillion-dollar illicit market. Despite efforts by Democrats in past years to legalize and regulate the retail system, Gov. Glenn Youngkin has obstructed the reforms by refusing to ratify the bills passed in each of the past two legislative sessions.
At the legislative commission’s first meeting in July, members discussing broad regulatory considerations and other issues related to THC potency, the hemp market and more. The panel discussed cannabis taxation and revenue in August.
At Monday’s third meeting, lawmakers and witnesses explored issues related to transitioning from medical marijuana to a full-scale recreational cannabis market—with several presentations focused on how to ensure a fair and competitive industry that doesn’t disproportionately benefit existing multi-state operators while limiting opportunities for newer, smaller businesses.
JM Pedini gave a brief overview of Virginia’s medical cannabis program. He also described how the existing program has helped the state prepare for eventual adult-use sales.
They said, “We have been regulating marijuana in Virginia for some time.” It was not taken lightly.
Pedini also stressed the importance of putting consumers first, and not businesses, when discussing effective marijuana policies.
The NORML activist stated, “We wouldn’t even have a cannabis market in the United States if it wasn’t for cannabis users.” If we don’t prioritize consumer needs, we will fall short.
Ngiste Abebe from the KND Group talked to legislators about what other states have learned after launching recreational marijuana markets, having already had medical cannabis in place.
She mentioned that some of the most important considerations are protecting public health, maintaining access to patients, ensuring fair market conditions, and maximizing revenue opportunities.
She said that the areas “overlap considerably” and “interact with each other quite a bit.” How you choose to handle public safety impacts how much revenue [and] “The choices that you make regarding patient access can impact public safety in the reverse direction.”
Abebe called on lawmakers to restrict the power of localities in banning marijuana businesses, stating that it had “huge unintended effects” in other states. The illicit cannabis market grows when there are no licensed businesses near consumers to buy marijuana from.
Max Jackson from Cannabis Wise Guys discussed how to prevent market capture and excessive consolidation. Jackson argued that state officials should not grant existing medical cannabis business an unfair competitive advantage when selling to recreational users.
A license for a medically limited market does not guarantee access to adult use. His presentation before the panel stated that giving incumbents a special advantage was a choice of policy, and not a legal requirement. Virginia retains full authority in designing a market to serve the Commonwealth, and not only a handful of license holders.
Jackson stated that limited-license markets, where only a few businesses are allowed to sell legal cannabis, “fail in their attempts to compete on the illicit market for price and access. This undermines the public’s safety while guaranteeing the failure of programs promoting social equity.” The choice of market structure determines much more than just tax revenues; it also defines social outcomes and public safety.
“By prioritizing diverse local operators, Virginia can build a market that provides safe, tested products, fulfills the promise of social equity, and successfully displaces the illicit market—achieving all the core goals of legalization,” he said.
Damian Fagon, a former New York cannabis regulator who is now a fellow at the Parabola Center for Law and Policy, similarly told the panel that “with smart design, profits stay with local farmers and small businesses” but that “without safeguards, the market will be captured by a handful of multi-state corporate operators, leaving farmers and small entrepreneurs shut out.”
He specifically advocated that the legislature should create a market for cannabis with two levels and ownership limitations on licenses.
Fagon stated in his presentation, “Virginia’s cannabis market is expected to top $2 billion annually.” “The real question is not whether it grows, but who gains?”
Michelle Peace of Virginia Commonwealth University provided legislators with information on cannabis products sold in an unregulated market, which has grown while the state still prohibits recreational marijuana sales. She suggested that state officials increase education for consumers, improve enforcement against illegal sales and expand testing capability.
After hearing all of the testimony from invited witnesses as well as others who spoke during a public comment portion of the meeting, Krizek, the chairman of the commission, said that members are “going to be taking notes, and we’re going to be getting together and working on this.”
He said, “We will need your help in the General Assembly to try and pass this Bill.”
In the next session of lawmakers, when they push to legalize marijuana, it will be under a different governor. Youngkin has a limited term and can’t run again.
With the election in November and early voting currently underway, Virginia voters have the chance to decide on whether their next governor will be someone who supports or opposes legalizing recreational marijuana sales in the commonwealth—with the two major party nominees holding diametrically opposed views on the future of cannabis policy.
The GOP candidate, Lt. Winsome Earle Sears (R) has been steadfastly against allowing Virginia create a market for adult-use marijuana. She even went so far to suggest that cannabis is a gateway substance and that legalization “decimates communities”.
Abigail Spanberger, former U.S. Rep. (D-VA), is the opposite of this spectrum. She expressed her desire, if she were elected, to work with the legislators in order to create a system for regulated sales that is consistent with what most voters want.
The congresswoman said that “as Virginia moves toward creating a retail cannabis market,” she told MEDCAN24 in a statement last month. “The Commonwealth needs a strategy that’s clear to create a safe market for consumers, one that’s transparent for business, and that treats entrepreneurs fairly.”
She said that she believes that the “revenues from commercial cannabis product sales must be returned to Virginia’s communities, and reinvested in purposes such as strengthening public schools.”
Spanberger stated that if elected she would “work with the leaders of the General Assembly in order to develop a plan for Virginia that prioritizes both public safety and growth.”
Meanwhile, a top Democratic Virginia senator recently said the state should move forward with legalizing recreational marijuana sales—in part to offset the Trump administration’s cuts to federal spending in support of states.
Youngkin rejected both bills, despite the fact that the legislative body had passed two separate bills aimed at creating a regulated market of commercial cannabis following the legalization by 2022 of adult possession and consumption.
Senate Pro Tem Louise Lucas said that with the anticipated increase in Virginia spending due to various federal policies, such as withdrawing federal welfare dollars from states, it was time to look at alternative revenues, including legalizing marijuana.