On December 2, the Joint Commission to Oversee the Transition of the Commonwealth into a Cannabis Retail Market presented proposed legislative changes to bills from the 2025 legislative session that passed the General Assembly but were vetoed by the Governor. One significant change impacting local authority removes language giving the option for localities to hold a local referendum to prohibit the retail sale of marijuana within its boundaries (see language on local referendum adopted by legislature in 2025). This means that any permit issued by the state Cannabis Control Authority for a local retail store cannot be regulated (except for limiting hours of sales) or prohibited by local resolution or ordinance.
In a recent opinion piece in the Cardinal News commission members (Delegate Paul Krizek, Delegate Will Morefield, and Senator Lashrecse Aird) state “… any legislation that removes the opt-out option will also allow local governments to maintain full zoning authority, set operational guidelines, review local business licensing and set buffer distances from schools and houses of worship.” VACo will be reviewing the draft legislation, once it is introduced, to determine the extent of local zoning authority to regulate location.
Other notable changes that should interest counties include:
- Raising the local tax on sales of product localities may impose from 2.5 percent to 3.5 percent;
- Changes the required minimum distance between retail stores from 1,000 feet to one mile (NOTE: The maximum number of retail stores in the Commonwealth, per the legislation, remains at 350);
- Adds language stating a retail marijuana store shall not be located within 1,000 feet of places of religious worship, hospitals, schools, playgrounds, child day programs, substance use disorder treatment facilities, or government facilities; and
- Directs the Commission to study the establishment and implementation of on-site consumption licenses and microbusiness cannabis event permits, such as farmers markets.
For a full list of the proposed changes go to Proposed Changes for Consideration – 12/2/2025. All proposed changes in this document refer directly to HB 2485 and SB 970 that passed both chambers in the 2025 session prior to being vetoed by the Governor.
To view the presentation by the Commission and public testimony on the proposed changes go to this link.
VACo Contacts: Joe Lerch, AICP and Katie Boyle