Illicit market fears arise as Virginia adult-use marijuana launch date debated

Virginia marijuana sales could begin in November, but some advocates want a delay that others say would boost the illicit market.

Virginia lawmakers took another small step toward the highly anticipated launch of adult-use sales in the state, but the exact start date is still unclear.

The state House of Delegates Appropriations Committee on Wednesday approved a bill that could see sales begin Nov. 1, shortly before a federal ban on hemp THC is scheduled to take effect.

But that might be too soon – and might advantage the large marijuana multistate operators that hold the state’s five existing medical cannabis licenses, according to small business advocates.

When will Virginia adult-use marijuana sales begin?
Barbara Biddle, a Washington, D.C.-area hemp retailer and president of the Virginia-based Cannabis Small Business Association, called for Virginia adult-use marijuana sales to be delayed until May 2027.

“We want to make sure that we push the start date to a practical date to fully assess the legislation, analyze it and make any recommendations prior to the market actually opening up,” she told WHRO.

That’s a controversial take for others, given a rise in illicit-market sales, according to Jamie Patten, the chief administrative officer of the Virginia Cannabis Control Authority.

Critics have blamed a slow start to legal sales for the troubles plaguing other state markets, most notably New York.

Multimillion-dollar fees proposed for MSOs converting to adult-use
The MSOs, meanwhile, may be asked to pay conversion fees to start selling to adult-use consumers ranging from $4 million to $20 million, according to WVIR.

Virginia legalized adult-use cannabis in 2021 without setting up regulated sales.

After years of Republican obstructionism, newly elected Democratic Gov. Abigail Spanberger has pledged to sign a sales bill into law.

Monthly medical cannabis sales are averaging about $15 million, according to the state Cannabis Control Authority.

According to a 2020 study commissioned by state lawmakers, Virginia could support between:

- 100 and 800 cultivation permits
- 30 and 150 processing or distribution licenses
- 200 and 600 retail licenses