The Virginia Cannabis Control Authority released an 82-page draft of retail marijuana regulations.
Adult-use sales are slated to begin July 1, 2027. The CCA oversees marijuana, marijuana products and regulated hemp products in the state.
“These are not final by any means,” stressed CCA Legislative and Regulatory Manager Jake Shuford, according to Virginia Business.
Jamie Patten, acting head and chief administrative officer of the CCA, noted roughly two months have passed since the General Assembly established a recreational marijuana market.
“So to be able to have draft regulations in front of you today is an impressive feat,” she said, according to Virginia Business.
The draft sets fees for different retail marijuana operations. An initial permit for a cannabis dispensing facility carries a $40,000 fee.
An initial authorization for a marijuana cultivation facility ranges between $20,000 and $50,000, depending on facility size. An initial authorization for a retail marijuana store runs $20,000.
A microbusiness authorization, allowing cultivation, processing and/or selling on a smaller scale, costs $2,500. The state will issue “no more” than 350 retail licenses and 100 microbusiness licenses.
Cultivation permits are sorted into five size tiers, ranging from 5,000 to 35,000 square feet of canopy.
Up to 10 cultivation licenses and 10 manufacturing licenses must be issued to existing hemp license holders for a $500,000 conversion fee. The CCA must publish a conversion application process no later than February 1, 2027.
Virginia is giving preference to social equity applicants, called impact licensees. Qualification is based on residency in disproportionately policed or economically disadvantaged areas.
Impact licensees must own at least 51% of a business and meet criteria such as being a veteran or receiving a federal Pell Grant.
The state is implementing financial support for impact applicants, including grants, low-interest, zero-interest and conditional loans, and fee waivers.
During public comment, Shawn Mahoney of Arlington County urged the CCA to “Give prospective licensees clarity before asking them to invest,” according to Virginia Business.
The CCA plans further stakeholder conversations before finalizing the regulations in December. The application process must be finalized before the end of the year.
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