A bipartisan commission in Virginia designed to create a pathway towards legal cannabis sales in the state held a meeting this week, hearing hours of testimony on issues ranging from tax design to equity and small business participation.
The Joint Commission to Oversee the Transition of the Commonwealth into a Cannabis Retail Market met for the second time yesterday at the Capitol, hearing hours of testimony on issues ranging from tax design to equity and small business participation. The group was created through a legislative resolution that bypassed Youngkin’s veto power, and it will operate until at least 2028 with the goal of presenting lawmakers a workable framework for retail sales by 2026.
Virginia legalized possession and home cultivation in 2021 but never set up a retail system. Earlier this year, the legislature approved a bipartisan plan that would have launched sales in 2026, projected to bring in nearly $88 million annually by 2031. That measure also directed revenue to education, equity reinvestment, substance use treatment, and public health. Youngkin rejected the plan, warning it would harm public safety and children. He also vetoed related expungement provisions, a move advocates said undercut the intent of legalization.
With the governor unwilling to sign off, lawmakers established the commission to keep the issue alive. Its latest meeting marked the first deep dive into policy decisions ahead.
National experts told members that Virginia can learn from the 23 states with legal marijuana markets, but also warned of pitfalls. Andrea Jimenez with the National Conference of State Legislatures noted that while some states have seen strong revenue collections, others face falling prices and oversupply. “There’s just simply too much product for the amount of demand that exists,” she said, pointing to revenue struggles in California and Michigan.
Fiscal analysts highlighted the stakes, saying revenue could swing widely depending on how taxes are structured. Rodrigo Soto of The Commonwealth Institute testified that taxing marijuana at 20% to 25% could generate up to $254 million annually by the fifth year of sales, more than double current projections.
Small business owners also pressed their case. Barbara Biddle, who founded District Hemp Botanicals, said Virginia’s 2023 hemp crackdown wiped out half her revenue. “The bill did far more than just outlaw Delta 8. It knocked out 90% of the market, including non-intoxicating CBD products my customers came to rely on,” she told the commission.
Biddle urged policymakers to avoid repeating mistakes that favor large companies at the expense of local operators. Eric Spanbauer of the East Coast Collective added that small entrepreneurs “are your neighbors, your local employers, and your community partners,” and said micro-licenses and lower fees would help ensure they aren’t shut out.
The political backdrop is significant. All 100 seats in the House of Delegates and three statewide offices are on the ballot this year. Youngkin has been a consistent opponent of legalization, arguing it won’t curb the illicit market and could harm youth. But his likely successor, former U.S. Rep. Abigail Spanberger, the Democratic nominee for governor, has pledged to support retail sales.
“I support a legal marketplace for cannabis,” Spanberger said in a recent interview. “I want to ensure that it is fully regulated, people know what they’re buying, and revenues go towards education.”
For now, Virginia residents remain in limbo — allowed to grow marijuana at home, but without a legal way to buy it. Lawmakers hope the commission’s work will set the stage for that to change by 2026.
