Virginia senators have passed a pair of bills to legalize the sale of recreational marijuana and reduce penalties for people with prior cannabis convictions.
The Senate Judiciary Committee voted 9-6 on Wednesday to advance legislation for Sen. Lashrecse Aird (D) to sell marijuana. Members also voted 12-TK3 to approve Senate President Louise Lucas’ (D) anti-cannabis measure.
Both measures then go to the Senate Finance and Appropriations Committee, potentially before reaching a date.
Aird told colleagues in Wednesday’s speech that his bill “establishes a marketplace that protects consumers and puts health and safety first, ensures a balance in our regulatory framework that ensures legalization is consistent with public health and safety goals, and avoids past mistakes built into alcohol laws that allow the legal substance to continue to be criminalized.”
“I know there’s interest in aligning the approach we take in this legislation with (the Alcoholic Beverage Control Authority’s) enforcement structure, but if we do that too narrowly, we risk building a legal system that relies on arrests, mandatory fines, mandatory minimums, prison sentences and low-level offenses,” he said. “And that approach has failed with alcohol and will fail again for cannabis.”
The panel accepted several amendments from Sen. Scott Surovell (D), the panel’s chairman, over Aird’s objection.
Among the changes are amendments to “essentially align the penalties for the illegal sale of alcohol with the illegal sale of marijuana,” Surovell said, bringing the penalties for minors in possession of cannabis on par with those for alcohol.
Another bench-approved amendment adds criminal penalties for buying marijuana from an unlicensed dealer.
Marijuana Justice’s Chelsea Higgs Wise supported the overall bill, but expressed concern about the recently passed criminal amendments, calling it “a step backwards.”
A representative of the Virginia State Conference of the NAACP also said, “If we really want to prepare our children for success, we’re not going to criminalize them, but we’re going to figure out how to support them so they can make better choices.”
JM Pedini, director of development for advocacy group NORML and executive director of Virginia NORML, told Marijuana Moment that the organization is “deeply concerned about committee members’ re-criminalization of cannabis users and mandatory minimum approvals for marijuana.”
“It is particularly troubling that as this body moves to address resentment of marijuana-related penalties, it is simultaneously entertaining new ways to further criminalize consumers,” Pedini said.
the senate the version calls for sales to begin on January 1, 2027, while the House bill stipulates that the sale of cannabis for adult consumption can begin on November 1 of this year.
Here are the main details of Virginia’s legal marijuana sales legislation:
Adults would be able to purchase up to 2.5 ounces of marijuana in a single transaction, or up to an equivalent amount of other cannabis products, as determined by regulators.
The Virginia Cannabis Control Authority would oversee licensing and regulation of the new industry. Its board of directors would have the authority to control the possession, sale, transportation, distribution, delivery and testing of marijuana.
A tax of up to 12.625 percent would apply to the retail sale of any cannabis product. That would include a 1.125 percent state retail and use tax on top of a new 8 percent marijuana-specific tax. Local governments can charge an additional 3.5 percent.
The tax revenue would be divided between the costs of administering and enforcing the state’s marijuana system, a new Cannabis Equity Investment Fund, pre-kindergarten programs, substance use disorder prevention and treatment programs, and public health programs such as awareness campaigns designed to prevent drug-impaired driving and discourage underage use.
Local governments could not allow marijuana companies to operate in their area.
Delivery services would be allowed.
Serving sizes would be limited to 10 milligrams of THC, with no more than 100 mg of THC per package.
Existing medical cannabis operators could enter the adult-use market if they pay a $10 million license conversion fee.
Cannabis businesses should implement peaceful labor agreements with their employees.
A legislative committee would direct the addition of local consumer licenses and micro-enterprise cannabis event permits that would allow licensees to hold sales at farmers markets or pop-up locations. The Virginia Alcoholic Beverage Control Authority would also investigate the possibility of involvement in marijuana regulation and enforcement.
The legislation would create a process for people who are incarcerated or under community supervision for certain crimes involving the possession, manufacture, sale or distribution of marijuana to receive an automatic sentencing hearing.
The invoice It applies to people with convictions or convictions for conduct that occurred before July 1, 2021, when a state law that legalized personal possession and home cultivation of marijuana went into effect.
The panel approved some technical changes before passing the legislation.
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Speakeasy Dispensary will officially open its newest medical cannabis location in Kentucky at 108 E. Main St., Princeton, KY 42445, further expanding access to patients in Caldwell County and surrounding communities.
The dispensary will open at 11:00 a.m. on Friday, April 10 for registered medical cannabis patients.
Located in the heart of downtown Princeton, the space reflects Speakeasy’s vision to blend local character and a comfortable, patient-first experience. The carefully designed environment provides a welcoming entrance before patients enter the main sales floor, where trained team members provide personalized guidance and education tailored to the individual’s needs.
“Each new location is an opportunity to meet patients where they are,” said Casey Flippo, CEO of Gold Leaf Management. “Communities like Princeton are an important part of Kentucky’s medical cannabis program, and expanding access here means more patients can explore safe and regulated options closer to home. As the program continues to take shape, our focus remains on building something reliable, accessible and rooted in long-term care.”
Opening weekend will feature a low-cost patient drive, offering new and existing patients an affordable and streamlined way to obtain or renew their Kentucky cannabis license.
In partnership with the Kentucky Cannabis Industry Association and LexMed & Wellness, patient tours will be held Friday, April 10th from 11:00am to 7:00pm and Saturday, April 11th from 11:00am to 5:00pm. Appointments will be made with a licensed provider in a mobile unit on site, so patients can complete the entire process, including assessment, notary and state filing, in one visit.
Patients can register for an appointment by clicking here. The appointment fee is $25, and an additional $25 state fee must be paid when submitting documents to the state portal. The $25 state fee is waived for anyone who received a valid medical card in 2025.
As Kentucky’s medical cannabis market continues to develop, product availability and selection will continue to grow along with additional growers and processors entering the space. In addition to flowers and gummies, Speakeasy Princeton plans to have an extensive menu soon after opening, which will include vapes and concentrates, along with a new variety of gummies. Speakeasy continues to focus on providing a consistent education-first experience supported by strong statewide partnerships.
“The issue is not whether the funds should be used, but how they are used and how we are doing it in a responsible and sustainable way.”
By Henry Culvyhouse, Mountain State Spotlight
This story was originally published by Mountain State Spotlight. Get stories like this delivered to your email inbox once a week; sign up for the free newsletter at https://mountainstatespotlight.org/newsletter.
Even with the veto he could have delayed it further $38 million spent on medical marijuana raised over the past four years, state Treasurer Larry Pack (R) now says he will release the funds during his original term.
Last week, Gov. Patrick Morrisey (R) vetoed a bill that would have required the release of medical marijuana funds to help the homeless and expedite child abuse and neglect cases in the court system. He said the bill tied up money for future expenses.
In his veto letter, Morrisey wrote, “West Virginia needs to do a better job of planning for the future, and cannot fully pre-commit future revenue like this if it has reserves to invest more in roads, water, sewer, site selection, rail and future tax cuts.”
Morrisey said he was willing to negotiate with the Legislature on how to spend the money.
“The issue is not whether the funds should be used, but how they are used and whether we are doing so responsibly and sustainably,” Lars Dalseide, a spokesman for the governor’s office, wrote in an email.
But the money was pre-committed in state code.
Pack’s office said 100 percent of that money will go to various offices and programs mandated by the original law; more than half to the Office of Medical Cannabis, with the remaining funds split between the substance abuse treatment grant program and law enforcement grants. The move negates the governor’s desire to use future reserves to deal with infrastructure and tax cuts.
Pack is not the first state treasurer to express concern. State Treasurer John Perdue (D) said his office would not keep money in 2018 after the Medical Cannabis Act was passed. Riley Moore (R), who beat Perdue in the 2020 race, never released the money.
In the 2026 Legislative Session, Del. Rep. Evan Worrell, R-Cabell, said he read a report on the funds raised and wanted to change it. He successfully led a bill that would have forced the state to spend money on a commission to help thousands of children with abuse and neglect in court and homelessness services.
Had the governor not vetoed the bill, the money would have been earmarked for one year for those things. The commission on substance abuse research, treatment, and abuse and neglect would continue for years to come.
Treasurer’s Office spokeswoman Carrie Smith said that due to the complexity of state and federal laws, the office had been working for months to release the money. He said that the money has been sent to the Department of Security and the Department of Health.
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With the April 2025 tax return filing deadline fast approaching, cannabis companies must once again face the burden of Section 280E of the Internal Revenue Code (“Section 280E”). Despite significant developments over the past year — including a major executive order from President Trump and the IRS, for the first time, disclosing legal reasoning funds to keep state cannabis “within the meaning” of Section 280E — taxpayer scrutiny remains the same.
However, whether substantively or psychologically, these recent developments weigh on how taxpayers should deal with Section 280E. Below, we summarize the key developments that cannabis taxpayers should be aware of as they prepare their 2025 returns.
As discussed in previous publications, Section 280E provides: “(e) no deduction or credit shall be allowed for any amount paid or incurred in the course of any trade or business during the taxable year, if such trade or business (or the activities constituting such trade or business) is trafficking in controlled substances (controlled substance classes I and II prohibited by State or Federal law).
Because cannabis is now listed as a Schedule I controlled substance under the Controlled Substances Act (CSA), the IRS has consistently maintained that Section 280E applies to state-licensed cannabis businesses, significantly increasing their effective tax rates.