Subcommittee reports substitute for HB 2485 to legalize retail cannabis for adults, 5–1

A Virginia House subcommittee voted to report a substitute for HB 2485, a bill to legalize and regulate retail cannabis sales to adults 21 and older, sending the measure to the Appropriations Committee by a 5–1 vote.

The substitute incorporates two technical amendments adopted at the hearing. One strikes an inappropriately added instance of the word “former” from a cross-reference to an existing distribution-of-marijuana crime section set to be repealed on May 1, 2026. The other removes language that would have added a class 2 misdemeanor in a section that was not intended to include that penalty.

Why it matters: The bill would move adult-use cannabis from the illicit market into a regulated retail framework, establish a state regulatory authority, set purchase and serving limits, create tax rules, and establish an equity-focused licensing program. Supporters told the subcommittee the changes would improve product safety and shift sales away from the illicit market; opponents warned increased commercial availability could worsen public-health harms.

Key provisions reported in the substitute

- Legal retail sales to adults 21 and older and related regulatory structure. Delegate Doug Krizek described the measure as “the bill to legalize and regulate the retail sale of cannabis [for] adults 21 and older.” - Purchase limit: Adults could purchase up to 2.5 ounces in a single transaction. Serving sizes would be capped at 10 milligrams THC per serving and no more than 100 milligrams THC per package. - Taxation: The bill would permit a marijuana-specific tax of 8.0%, a state retail and use tax of 1.125%, and allow localities to levy up to 2.5%, creating a maximum combined tax rate described in testimony as up to 11.625%. - Regulatory authority: A Virginia Cannabis Control Authority (VCCA) would oversee licensing and regulation, including possession, sale, transportation, distribution, delivery and testing. - Local option and location limits: Local governments could ban marijuana establishments only if voters approve an opt-out referendum. Retail locations could not be within 1,000 feet of another marijuana retailer. - Cultivation and canopy: Both indoor and outdoor cultivation would be allowed, with restrictions on outdoor cultivation limited to smaller “lower tier” canopy sizes; larger growers would be required to grow inside (secure greenhouses count as indoor). - Channel restrictions: Only direct, face-to-face retail transactions would be explicitly allowed; the bill would prohibit vending machines, drive-through windows, internet-only platforms and delivery services for adult-use retail (medical delivery issues addressed separately in other bills). - Ownership and licensing limits: No person could have an interest in more than five total licenses (not including transporter licenses). People with felony convictions or crimes involving moral turpitude within the past seven years would be ineligible; employees of police or sheriff’s departments who enforce penal, traffic or motor vehicle laws would also be ineligible. - Criminal penalties and gifting: Sharing (gifting) 2.5 ounces with financial remuneration would be punishable as a class 2 misdemeanor, escalating to a class 1 misdemeanor on second and subsequent offenses; the bill includes other new criminal penalties described by the patron as similar to last year’s measure. - Equity program and revenue uses: An equity-focused microbusiness program would prioritize applicants who are at least two-thirds owned and directly controlled by eligible applicants (including those with prior cannabis misdemeanors, family members of people with convictions, veterans, long-term residents of historically economically disadvantaged communities, and students or recipients of federal Pell grants). After administering program costs, remaining tax revenue would be allocated roughly as described in testimony: 60% to a state cannabis equity reinvestment fund, 25% for substance use disorder treatment and prevention, 10% for pre-K programs for at-risk children and 5% for public health and awareness campaigns.

Public testimony and discussion

Supporters included medical and licensed cannabis industry representatives and criminal-justice advocates. Alexander McAuley, representing Jushi, called the measure “a very good bill” and said Jushi “support[s] it wholeheartedly.” Julie O’Brien for Marijuana Justice urged the committee to move the bill and said the lack of a legal retail option “continues to drive” consumers to an unregulated market.

Opponents included social-conservative groups and public-safety representatives. Grant May of the Family Foundation said his organization remained “in continued opposition to the commercialization of retail marijuana.” Dr. Michael Huffman of the Virginia Assembly of Independent Baptists warned that creating a retail market has not eliminated illicit sales where legalization has already occurred, saying “creating a retail market does not fix the problem, but only has proven to exacerbate the problem.”

Delegate Krizek said the bill represents a compromise carried over from last year and noted that similar language is pending in the Senate; he urged the subcommittee to keep the bill aligned so both chambers can proceed.

Vote and procedural outcome

The subcommittee adopted the two technical amendments and then voted to report HB 2485 with a substitute and re-refer it to the House Appropriations Committee. The clerk recorded the motion as carried by a vote of 5–1; Delegate McClure stated he would vote no.

What’s next

The substitute will be considered by the House Appropriations Committee and remain subject to amendment in subsequent floor or Senate consideration. Supporters and opponents indicated more policy negotiations could occur in the next session if provisions change.

Ending note: The measure contains multiple technical and policy elements that stakeholders said they would continue to negotiate, and testimony reflected differing views about whether commercial retail legalization will reduce illicit sales or increase availability-related harms.