Virginia Medical Cannabis

In 2019, Virginia became the 33rd state to launch a medical cannabis program with five vertically integrated licenses (pharmaceutical processors). Additionally, the Board may issue or renew a maximum of 5 permits for cannabis dispensing facilities in each health service area.  The cannabis dispensing facility must be owned in part by the pharmaceutical processor permitted in that area. Virginia cannabis market first dispensary began operations in October 2020.

Medical cannabis products in Virginia were limited to cannabis oils, edibles and vape cartridges with single doses capped at 10 milligrams of THC. In 2021, the Virginia Legislature has approved a bill to add flower products to the state’s medical cannabis program.

Effective July 1, 2022, HB933 removes the requirement for patients, parents, and legal guardians to register with the Board of Pharmacy. A Written Certification for the Use of Medical Cannabis from a Registered Practitioner for Medical Cannabis is still required and must be presented at the dispensary, along with a government-issued ID, to obtain medical cannabis products.

In 2023, Virginia passed legislation that exempt businesses from Section 280E of the federal tax code that allows cannabis companies to deduct business expenses from their state income taxes.

Beginning January 1, 2024, the Virginia Cannabis Control Authority (CCA) assumed regulatory oversight of Virginia’s medical cannabis program.

There are currently over 1,100 registered practitioners in the state and 4 pharmaceutical processors are licensed, Dharma Pharmaceuticals, LLC in Abingdon, Columbia Care Eastern Virginia, LLC in Portsmouth, Green Leaf Medical of Virginia, Inc. in Richmond and Dalitso, LLC in Mananssas with 22 dispensing facilities operated in total.

The Virginia medical market was estimated to reach up to $25 million in sales in 2022 and up to $95 million by 2026, according to the 2022 MJBiz Factbook.

Weed Delivery in Virginia

Medical cannabis delivery services became legal under the provisions of HB 933 for patient and caregivers registered with the state and with a valid written medical cannabis certification. Medical cannabis can be ordered by phone or through medical cannabis dispensary websites. Dispensaries use registered delivery agents to deliver medical cannabis to customers after verifying their identity.

Cannabis Delivery Service by State

Virginia Recreational Cannabis

On April 8, 2021, Virginia Gov. Ralph Northam’s administration announced an adult-use cannabis legalization plan. Starting July 1, 2021, public possession of up to one ounce of cannabis by adults over 21 is legal, and personal cultivation of up to four plants at home is also allowed. Private sharing of up to an ounce of cannabis between adults is also legal, as long as no remuneration is involved.

How to Start a Cannabis Business in Virginia?

Retail sales could begin May 1, 2025, but the state could start accepting dispensary applications as early as September 2024. The recreational cannabis market in the state is projected to hit upward of $500 million in its first year, and in two years, sales could exceed $1 billion.

According to legislation passed in February 2024 (HB 698 and SB 448):

• Adults would be able to purchase up to 2.5 ounces of cannabis per transaction or up to an equivalent amount of other cannabis products.
• The legislation would prohibit delivery services.
• Retail sales would be taxed at 11.625% (state 8%, local 2.5% and 1.125% for K-12 education).
• Municipalities could ban cannabis operations through local referendums.

Virginia Cannabis Market Infographics

Virginia Hemp Industry