A BILL to amend and reenact §§ 1-404, 2.2-221, 2.2-509.1, 2.2-1119, 2.2-2696, 2.2-2499.8, 3.2-4113, 4.1-352, 4.1-600, 4.1-601, 4.1-603, 4.1-604, 4.1-606, 4.1-607, 4.1-611, 4.1-614, 4.1-621, 4.1-1100, 4.1-1101, 4.1-1121, 4.1-1500, 4.1-1501, 4.1-1502, 4.1-1601, 4.1-1604, 5.1-13, 9.1-1101, 16.1-69.40:1, 16.1-260, 16.1-273, 16.1-278.9, 18.2-46.1, 18.2-247, 18.2-248, 18.2-248.01, 18.2-251, 18.2-251.03, 18.2-251.1:1, 18.2-251.1:2, 18.2-251.1:3, 18.2-252, 18.2-254, 18.2-255, 18.2-255.1, 18.2-255.2, 18.2-258, 18.2-258.02, 18.2-258.1, 18.2-265.1, 18.2-265.2, 18.2-265.3, 18.2-287.2, 18.2-308.012, 18.2-308.4, 18.2-460, 18.2-474.1, 19.2-66, 19.2-81, 19.2-81.1, 19.2-83.1, 19.2-188.1, 19.2-303.01, 19.2-386.22 through 19.2-386.25, 19.2-389, as it is currently effective and as it shall become effective, 19.2-389.3, 19.2-392.02, 19.2-392.6, 19.2-392.12:1, 22.1-206, 22.1-277.08, 23.1-1301, 46.2-105.2, 46.2-347, 48-17.1, 53.1-231.2, 54.1-2903, 54.1-3443, 58.1-301, 59.1-200, 65.2-107, 65.2-402, and 65.2-402.1 of the Code of Virginia; to amend the Code of Virginia by adding in Chapter 6 of Title 4.1 sections numbered 4.1-629, 4.1-630, and 4.1-631, by adding in Title 4.1 chapters numbered 7 through 10, consisting of sections numbered 4.1-700 through 4.1-1008, by adding sections numbered 4.1-1102 through 4.1-1105, 4.1-1106, 4.1-1113, 4.1-1114, 4.1-1115, 4.1-1117, 4.1-1118, and 4.1-1119, by adding in Title 4.1 a chapter numbered 12, consisting of sections numbered 4.1-1200 through 4.1-1206, by adding in Chapter 13 of Title 4.1 sections numbered 4.1-1300, 4.1-1301, and 4.1-1303 through 4.1-1309, by adding in Chapter 14 of Title 4.1 sections numbered 4.1-1403 through 4.1-1406, by adding in Article 2 of Chapter 1 of Title 6.2 a section numbered 6.2-108, and by adding in Chapter 44 of Title 54.1 a section numbered 54.1-4426; and to repeal §§ 4.1-1101.1, 4.1-1105.1, 18.2-248.1, and 18.2-251.1 of the Code of Virginia, relating to taxation, revenues, and cannabis.
SB826 is a comprehensive cannabis and alcohol-related revenue bill that rewrites large portions of the Virginia Code to create and govern a new Virginia Alcoholic Beverage and Cannabis Control Authority and a separate Virginia Cannabis Control Authority framework. It establishes detailed licensing, enforcement, tax collection, and regulatory systems for retail marijuana and marijuana products, including cultivation, manufacturing, wholesaling, retail sales, testing, transport, recordkeeping, inspections, penalties, and forfeiture. The bill also creates advisory bodies focused on public health and equity, sets limits on license ownership and vertical integration, and directs the Board to adopt regulations on product safety, labeling, advertising, tracking, and market participation.
The bill legalizes possession of up to 2.5 ounces of marijuana for adults 21 and older and allows home cultivation of up to four plants per household for personal use, while preserving criminal and civil penalties for larger amounts, unlawful sales, unlicensed cultivation or processing, and other prohibited conduct. It also imposes a 12.875 percent state marijuana tax, authorizes a 3 percent local tax, and directs revenues to the state treasury and then to specified uses including early childhood care and education, cannabis equity reinvestment, substance use disorder prevention and treatment, and public health programs. Related provisions repeal or amend existing marijuana possession and paraphernalia laws, update open meetings and public records provisions, and make conforming changes across numerous titles dealing with criminal law, taxation, procurement, health insurance, and agency authority.
The bill’s impact on state law would be broad and structural. It would replace the current prohibition-based framework with a regulated adult-use cannabis market, create new licensing categories and compliance obligations for businesses, and shift enforcement authority to the new cannabis authority and its special agents. It also changes how marijuana-related tax revenue is collected and distributed, limits local regulatory authority over retail marijuana except in narrow areas such as hours of sale and public park restrictions, and adds new criminal and civil penalties for conduct outside the licensed market. In addition, it makes extensive conforming amendments to existing statutes that reference the Alcoholic Beverage and Cannabis Control Authority, criminal offenses, procurement rules, public records exemptions, and state employee health and governance provisions.
The available voting history shows strong support in committee, with the bill incorporated by the Finance and Appropriations Committee on a 15-0 vote. No committee transcript was provided, so there is no recorded floor discussion in the materials supplied. Based on the bill’s structure and the committee action, the general sentiment appears to be supportive of moving the bill forward as a major revenue and regulatory package, especially one tied to cannabis legalization, public health funding, and equity-oriented reinvestment.
The main points of contention likely center on the scope of legalization, the size and structure of the new market, and the distribution of tax revenue. The bill’s detailed licensing caps, limits on vertical integration, and social equity requirements suggest likely debate over market access and whether the framework favors certain applicants or business models. Other likely concerns include the adequacy of public health safeguards, the extent of local control, the use of law-enforcement powers, and whether the bill’s tax and revenue provisions appropriately balance state revenue goals with community reinvestment and treatment funding.
SB826 would substantially revise Virginia law by creating a regulated adult-use marijuana market, establishing new authority structures, and repealing or amending numerous criminal, tax, procurement, public records, and administrative provisions to conform to cannabis legalization. It would authorize adult possession and home cultivation within specified limits, create licensing and enforcement rules for cultivation, manufacturing, wholesale, retail, testing, and transport, and impose state and local marijuana taxes with dedicated revenue allocations. The bill also narrows or redirects existing marijuana-related criminal prohibitions, adds forfeiture and nuisance provisions, and limits local governments’ ability to regulate retail marijuana beyond the bill’s express allowances.