Va. Code Ann. tit. 4.1, ch. 6

Va. Code Ann. tit. 4.1, ch. 6
in effect

Va. Code Ann. § 4.1-600 (Effective August 15, 2026) Definitions.

As used in this subtitle, unless the context requires a different meaning: "Advertisement" or "advertising" means any written or verbal statement, illustration, or depiction that is calculated to induce sales of marijuana, marijuana products, marijuana plants, or marijuana seeds, including any written, printed, graphic, digital, electronic, or other material, billboard, sign, or other outdoor display, publication, or radio or television broadcast. "Authority" means the Virginia Cannabis Control Authority created pursuant to this subtitle. "Board" means the Board of Directors of the Virginia Cannabis Control Authority. "Cannabis Control Act" means Subtitle II (§ 4.1-600 et seq.). "Canopy" means the space used by a licensee to produce flowering marijuana plants, including areas between plants, pathways, walkways, and empty space between rows that allow for airflow, light, growth, access for watering, trimming, and other activities associated with marijuana cultivation. "Canopy" does not include space used for mother plants, clones, immature or nonflowering plants, processing, drying, curing, trimming, storage, offices, hallways, work areas, or other administrative and nonproduction uses. If flowering marijuana plants are cultivated using a shelving or other layered system, the surface area of each level shall be included for purposes of calculating canopy. "Child-resistant" means, with respect to packaging or a container, (i) specially designed or constructed to be significantly difficult for a typical child younger than five years of age to open and not to be significantly difficult for a typical adult to open and reseal and (ii) for any product intended for more than a single use or that contains multiple servings, resealable. "Cultivation" or "cultivate" means the planting, propagation, growing, harvesting, drying, curing, grading, trimming, packaging, or other similar manufacturing of marijuana for use or sale. "Cultivation" or "cultivate" does not include processing or testing. "Edible hemp product" means any hemp product that is or includes an industrial hemp extract, as defined in § 3.2-5145.1 , and that is intended to be consumed orally. "Edible marijuana product" means a marijuana product intended to be consumed orally, including marijuana intended to be consumed orally or marijuana concentrate intended to be consumed orally. "Hemp product" means a product, including any raw materials from industrial hemp that are used for or added to a food or beverage, that (i) contains industrial hemp and has completed all stages of processing needed for the product and (ii) when offered for retail sale (a) contains a total tetrahydrocannabinol concentration of no greater than 0.3 percent and (b) contains no more than two milligrams of total tetrahydrocannabinol per package. "Hemp product intended for smoking" means any hemp product intended to be consumed by inhalation. "Historically economically disadvantaged community" means either (i) a jurisdiction identified by the Board utilizing census tract data made available by the United States Census Bureau in which offenses for marijuana possession were committed at a rate in excess of 150 percent of the statewide average for marijuana possession offenses during the 10-year period of 2009 to 2019 or (ii) a historically underutilized business zone as defined in 15 U.S.C. § 657a. "Immature plant" means a nonflowering marijuana plant that is no taller than eight inches and no wider than eight inches, is produced from a cutting, clipping, or seedling, and is growing in a container. "Impact licensee" means a licensee that meets the criteria set forth in subdivision B 13 of § 4.1-606 . "Industrial hemp" means the same as that term is defined in § 3.2-4112 . "Industrial hemp extract" means the same as that term is defined in § 3.2-5145.1 . "Inhalable marijuana product" means a marijuana product that is intended to be inhaled, including marijuana intended to be inhaled or marijuana concentrate intended to be inhaled. "Licensed" means the holding of a valid license or permit granted by the Authority. "Licensee" means any person to whom a license or permit has been granted by the Authority. "Marijuana" means any part of a plant of the genus Cannabis, whether growing or not, its seeds or resin; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds, its resin, or any extract containing one or more cannabinoids. "Marijuana" does not include (i) the mature stalks of such plant, fiber produced from such stalk, or oil or cake made from the seed of such plant, unless such stalks, fiber, oil, or cake is combined with other parts of plants of the genus Cannabis; (ii) industrial hemp that is possessed by a person registered pursuant to subsection A of § 3.2-4115 or his agent; (iii) industrial hemp that is possessed by a person who holds a hemp producer license issued by the U.S. Department of Agriculture pursuant to 7 C.F.R. Part 990; (iv) a hemp product; (v) an industrial hemp extract; or (vi) any substance containing a tetrahydrocannabinol isomer, ester, ether, salt, or salts of such isomer, ester, or ether that has been placed by the Board of Pharmacy into one of the schedules set forth in the Drug Control Act (§ 54.1-3400 et seq.) pursuant to § 54.1-3443 . "Marijuana concentrate" means marijuana that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product's potency. Resin from granular trichomes from a marijuana plant is a concentrate for purposes of this subtitle. "Marijuana cultivation facility" means a facility licensed by the Board to cultivate, label, and package marijuana; to purchase or take possession of marijuana plants and seeds from other marijuana cultivation facilities; to transfer possession of and sell marijuana, immature marijuana plants, and marijuana seeds to retail marijuana stores; to transfer possession of marijuana, immature marijuana plants, and marijuana seeds to marijuana transporters; to transfer possession of and sell marijuana, marijuana plants, and marijuana seeds to other marijuana cultivation facilities; to transfer possession of and sell marijuana to marijuana processing facilities; and to transport marijuana, immature marijuana plants, and marijuana seeds from the marijuana cultivation facility's licensed premises to another licensed marijuana establishment. "Marijuana delivery operator" means an entity licensed by the Board to take possession of marijuana or marijuana products from a retail marijuana store, microbusiness, pharmaceutical processor, or cannabis dispensing facility and deliver such marijuana or marijuana products only in person to patients or consumers at their residence or business. "Marijuana establishment" means a marijuana cultivation facility, marijuana microbusiness, marijuana delivery operator, marijuana testing facility, marijuana processing facility, marijuana transporter, retail marijuana store, or pharmaceutical processor or cannabis dispensing facility authorized to exercise dual-use privileges. "Marijuana paraphernalia" means all equipment, products, and materials of any kind that are either designed for use or are intended for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, strength testing, analyzing, packaging, repackaging, storing, containing, concealing, ingesting, inhaling, or otherwise introducing into the human body marijuana. "Marijuana processing facility" means a facility licensed by the Board to process, label, and package marijuana and marijuana products; to purchase or take possession of marijuana from a marijuana cultivation facility or another marijuana processing facility; to transfer possession of and sell marijuana and marijuana products to retail marijuana stores or other marijuana processing facilities; to transfer possession of marijuana and marijuana products to marijuana transporters; and to transport marijuana and marijuana products from the marijuana processing facility's licensed premises to another licensed marijuana establishment. "Marijuana products" means (i) products that are composed of marijuana and other ingredients and are intended for use or consumption, ointments, and tinctures or (ii) marijuana concentrate. "Marijuana testing facility" means a facility licensed by the Board to develop, research, transport, or test marijuana, marijuana products, or other substances. "Marijuana transporter" means a facility licensed by the Board to take possession of marijuana, marijuana products, immature marijuana plants, and marijuana seeds from a marijuana cultivation facility, a marijuana processing facility, a retail marijuana store, a microbusiness, or another marijuana transporter; to transfer possession of marijuana, marijuana products, immature marijuana plants, and marijuana seeds to a marijuana cultivation facility, marijuana processing facility, retail marijuana store, microbusiness, or another marijuana transporter; and to transport marijuana, marijuana products, immature marijuana plants, and marijuana seeds from one licensed establishment to another. "Microbusiness" means a facility licensed by the Board to conduct any activities authorized for marijuana cultivation facilities, marijuana processing facilities, and retail marijuana stores, as determined by the Board. "Outdoor cultivation" means cultivation in an area exposed to natural sunlight and open to environmental conditions, including variable temperature, precipitation, and wind. "Place or premises" means the real estate, together with any buildings or other improvements thereon, designated in the application for a license as the place at which the cultivation, manufacture processing, sale, or testing of marijuana or marijuana products shall be performed. "Principal" means (i) any individual who solely or together with his immediate family members (a) owns or controls, directly or indirectly, five percent or more of the pecuniary interest in any entity that is a licensee or permittee or (b) has the power to vote or cause the vote of five percent or more of the voting securities or other ownership interests of such entity and (ii) any person who manages marijuana establishment operations on behalf of a licensee or permittee. "Processing" or "process" means the production of marijuana products or the blending, infusing, compounding, or other preparation of marijuana or marijuana products, including marijuana extraction or preparation by means of chemical synthesis. "Processing" or "process" does not include cultivation or testing "Public place" means any place, building, or conveyance to which the public has, or is permitted to have, access, including restaurants, soda fountains, hotel dining areas, lobbies and corridors of hotels, and any park, place of public resort or amusement, highway, street, lane, or sidewalk adjoining any highway, street, or lane. "Regulated hemp product" means a hemp product intended for smoking or an edible hemp product. "Residence" means any building or part of a building or structure where a person resides, but does not include any part of a building that is not actually and exclusively used as a private residence, nor any part of a hotel or club other than a private guest room thereof. "Retail marijuana store" means a facility licensed by the Board to purchase or take possession of marijuana, marijuana products, immature marijuana plants, or marijuana seeds from a marijuana cultivation facility or marijuana processing facility; to take possession of marijuana, marijuana products, immature marijuana plants, or marijuana seeds from a marijuana transporter; to sell marijuana, marijuana products, marijuana paraphernalia, immature marijuana plants, or marijuana seeds to consumers on premises approved by the Board; to deliver marijuana, marijuana products, marijuana paraphernalia, immature marijuana plants, or marijuana seeds only in person to consumers; to transfer possession of marijuana, marijuana products, marijuana paraphernalia, immature marijuana plants, or marijuana seeds to marijuana delivery operators; and to transport marijuana, marijuana products, marijuana paraphernalia, immature marijuana plants, and marijuana seeds from the retail marijuana store's licensed premises to another retail marijuana store. "Security" means the same as that term is defined in § 13.1-501. If the Board finds that any obligation, stock, or other equity interest creates control of or voice in the management operations of an entity in the manner of a security, then such interest shall be considered a security. "Sale" and "sell" includes soliciting or receiving an order; keeping, offering, or exposing for sale; peddling, exchanging, or bartering; or delivering other than gratuitously, by any means. "Secure agricultural greenhouse" means an enclosed structure that has transparent walls and roofing and is used for controlled-environment agriculture. "Special agent" means an employee, agent, or contractor of the Virginia Cannabis Control Authority whom the Board has designated as a law-enforcement officer pursuant to this subtitle. "Testing" or "test" means the research and analysis of marijuana, marijuana products, or other substances for contaminants, safety, or potency. "Testing" or "test" does not include cultivation or processing. "Tetrahydrocannabinol" means any naturally occurring or synthetic tetrahydrocannabinol, including its salts, isomers, and salts of isomers whenever the existence of such salts, isomers, and salts of isomers is possible within the specific chemical designation and any preparation, mixture, or substance containing, or mixed or infused with, any detectable amount of tetrahydrocannabinol. For the purpose of this definition, "isomer" means the optical, position, and geometric isomers. "Topical hemp product" means a hemp product that (i) is intended to be rubbed, poured, sprinkled, or sprayed on or otherwise applied to the human body or any part thereof and (ii) is not intended to be consumed orally or by inhalation. "Topical marijuana product" means a marijuana product that is intended to be applied topically to the skin. "Total tetrahydrocannabinol" means the sum, after the application of any necessary conversion factor, of the percentage by weight of tetrahydrocannabinol and the percentage by weight of tetrahydrocannabinolic acid. 2021, Sp. Sess. I, cc. 550 , 551 ; 2023, cc. 744 , 794 ; 2026, Sp. Sess. I, c. 1 .

Va. Code Ann. § 4.1-601 Virginia Cannabis Control Authority created.

A. There is hereby created an independent political subdivision of the Commonwealth, exclusive of the legislative, executive, or judicial branches of state government, to be known as the Virginia Cannabis Control Authority. The Authority's exercise of powers and duties conferred by this subtitle shall be deemed the performance of an essential governmental function and a matter of public necessity for which public moneys may be spent. B. The Board of Directors of the Authority is vested with control of the possession, sale, transportation, distribution, and delivery of marijuana, marijuana products, and regulated hemp products in the Commonwealth, with plenary power to prescribe and enforce regulations and conditions under which marijuana, marijuana products, and regulated hemp products are possessed, sold, transported, distributed, and delivered, so as to prevent any corrupt, incompetent, dishonest, or unprincipled practices and to promote the health, safety, welfare, convenience, and prosperity of the people of the Commonwealth. The exercise of the powers granted by this subtitle shall be in all respects for the benefit of the citizens of the Commonwealth and for the promotion of their safety, health, welfare, and convenience. No part of the assets or net earnings of the Authority shall inure to the benefit of, or be distributable to, any private individual, except that reasonable compensation may be paid for services rendered to or for the Authority affecting one or more of its purposes, and benefits may be conferred that are in conformity with said purposes, and no private individual shall be entitled to share in the distribution of any of the corporate assets on dissolution of the Authority. 2021, Sp. Sess. I, cc. 550 , 551 ; 2026, Sp. Sess. I, c. 1 .

Va. Code Ann. § 4.1-602 Virginia Cannabis Control Authority; composition

A. The Virginia Cannabis Control Authority shall consist of the Board of Directors, the Cannabis Public Health Advisory Council, the Chief Executive Officer, and the agents and employees of the Authority. B. Nothing contained in this subtitle shall be construed as a restriction or limitation upon any powers that the Board might otherwise have under any other law of the Commonwealth. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-603 Cannabis Public Health Advisory Council; purpose; membership; quorum; meetings; compensation and expenses; duties

A. The Cannabis Public Health Advisory Council (the Advisory Council) is established as an advisory council to the Board. The purpose of the Advisory Council is to assess and monitor public health issues, trends, and impacts related to marijuana and marijuana legalization and make recommendations regarding health warnings; marijuana, marijuana products, and regulated hemp products safety and product composition, and public health awareness, programming, and related resource needs. B. The Advisory Council shall have a total membership of 21 members that shall consist of 14 nonlegislative citizen members and seven ex officio members. Nonlegislative citizen members of the Council shall be citizens of the Commonwealth and shall reflect the racial, ethnic, gender, and geographic diversity of the Commonwealth. Nonlegislative citizen members shall be appointed as follows: four to be appointed by the Senate Committee on Rules, one of whom shall be a representative from the Virginia Foundation for Healthy Youth, one of whom shall be a representative from the Virginia Chapter of the American Academy of Pediatrics, one of whom shall be a representative from the Medical Society of Virginia, and one of whom shall be a representative from the Virginia Pharmacists Association; six to be appointed by the Speaker of the House of Delegates, one of whom shall be a representative from a community services board, one of whom shall be a person or health care provider with expertise in substance use disorder treatment and recovery, one of whom shall be a person or health care provider with expertise in substance use disorder prevention, one of whom shall be a person with experience in disability rights advocacy, one of whom shall be a person with experience in veterans health care, and one of whom shall be a person with a social or health equity background; and four to be appointed by the Governor, subject to confirmation by the General Assembly, one of whom shall be a representative of a local health district, one of whom shall be a person who is part of the cannabis industry, one of whom shall be an academic researcher knowledgeable about cannabis, and one of whom shall be a registered medical cannabis patient. The Secretary of Health and Human Resources, the Commissioner of Health, the Commissioner of Behavioral Health and Developmental Services, the Commissioner of Agriculture and Consumer Services, the Director of the Department of Health Professions, the Director of the Department of Forensic Science, and the Chief Executive Officer of the Virginia Cannabis Control Authority, or their designees, shall serve ex officio with voting privileges. Ex officio members of the Advisory Council shall serve terms coincident with their terms of office. After the initial staggering of terms, nonlegislative citizen members shall be appointed for a term of four years. Appointments to fill vacancies, other than by expiration of a term, shall be for the unexpired terms. Vacancies shall be filled in the same manner as the original appointments. All members may be reappointed. The Advisory Council shall select a chair and vice-chair from among its membership. A majority of the members shall constitute a quorum. The Advisory Council shall meet at least two times each year and shall meet at the call of the chair, whenever the majority of the members so request. The Advisory Council shall have the authority to create subgroups with additional stakeholders, experts, and state agency representatives. C. Members shall receive no compensation for the performance of their duties but shall be reimbursed for all reasonable and necessary expenses incurred in the performance of their duties as provided in §§ 2.2-2813 and 2.2-2825 . D. The Advisory Council shall have the following duties, in addition to duties that may be necessary to fulfill its purpose as described in subsection A: 1. To review multi-agency efforts to support collaboration and a unified approach on public health responses related to marijuana and marijuana legalization in the Commonwealth and to develop recommendations as necessary. 2. To monitor changes in drug use data related to marijuana and marijuana legalization in the Commonwealth and the science and medical information relevant to the potential health risks associated with such drug use, and make appropriate recommendations to the Department of Health and the Board. 3. To review Board regulations related to public health pursuant to subsection F of § 4.1-606 . The Advisory Council shall review such regulations within 30 calendar days of the Board's submission of the regulations to the Advisory Council. If the Advisory Council fails to review a regulation within 30 calendar days, the Advisory Council shall request a 30-day extension to review the regulations from the Board or provide a written explanation to the Board on why the Advisory Council failed to review the regulation within 30 calendar days. If the Advisory Council fails to review a regulation within 30 calendar days and does not request an extension, the Board may adopt such regulation without review by the Advisory Council. 4. To submit an annual report to the Governor and the General Assembly for publication as a report document as provided in the procedures of the Division of Legislative Automated Systems for the processing of legislative documents and reports. The chair shall submit to the Governor and the General Assembly an annual executive summary of the interim activity and work of the Advisory Council no later than the first day of each regular session of the General Assembly. The executive summary shall be submitted as a report document as provided in the procedures of the Division of Legislative Automated Systems for the processing of legislative documents and reports and shall be posted on the General Assembly's website. 2021, Sp. Sess. I, cc. 550 , 551 ; 2026, Sp. Sess. I, c. 1 .

Va. Code Ann. § 4.1-604 Powers and duties of the Board

The Board shall have the following powers and duties: 1. Promulgate regulations in accordance with the Administrative Process Act (§ 2.2-4000 et seq.) and § 4.1-606 ; 2. Control the possession, sale, transportation, and delivery of marijuana, marijuana products, and regulated hemp products; 3. Grant, suspend, restrict, revoke, or refuse to grant or renew any license, permit, or registration issued or authorized pursuant to this subtitle; 4. Determine the nature, form, and capacity of all containers used for holding marijuana products or regulated hemp products to be kept or sold and prescribe the form and content of all labels and seals to be placed thereon; 5. Maintain actions to enjoin common nuisances as defined in § 4.1-1113 ; 6. Establish standards and implement an online course for employees of retail marijuana stores and microbusinesses that trains employees on how to educate consumers on the potential risks of marijuana use; 7. Establish a plan to develop and disseminate to retail marijuana store and microbusinesses licensees a pamphlet or similar document regarding the potential risks of marijuana use to be prominently displayed and made available to consumers; 8. Establish a position for a Cannabis Impact Business Liaison who shall lead the Cannabis Impact Business Support Team and liaise with the Director of Diversity, Equity, and Inclusion on matters related to and impact licensee participation in the marijuana industry; 9. Establish a Cannabis Impact Business Support Team, which shall (i) be responsible for conducting an analysis of potential barriers to entry for small, women-owned, and minority-owned businesses and veteran-owned businesses interested in participating in the marijuana industry and recommending strategies to effectively mitigate such potential barriers; (ii) provide assistance with business planning for potential marijuana establishment licensees; (iii) spread awareness of business opportunities related to the marijuana marketplace in areas disproportionately impacted by marijuana prohibition and enforcement; (iv) provide technical assistance in navigating the administrative process to potential marijuana establishment licensees; and (v) conduct other outreach initiatives in areas disproportionately impacted by marijuana prohibition and enforcement as necessary; 10. Establish a position for an individual with professional experience in a health related field who shall staff the Cannabis Public Health Advisory Council, established pursuant to § 4.1-603 , liaise with the Office of the Secretary of Health and Human Resources and relevant health and human services agencies and organizations, and perform other duties as needed; 11. Establish and implement a plan, in coordination with the Cannabis Impact Business Liaison, to promote and encourage participation in the marijuana industry by people from historically economically disadvantaged communities and to positively impact those communities; 12. Sue and be sued, implead and be impleaded, and complain and defend in all courts; 13. Adopt, use, and alter at will a common seal; 14. Fix, alter, charge, and collect rates, rentals, fees, and other charges for the use of property of, the sale of products of, or services rendered by the Authority at rates to be determined by the Authority for the purpose of providing for the payment of the expenses of the Authority; 15. Make and enter into all contracts and agreements necessary or incidental to the performance of its duties, the furtherance of its purposes, and the execution of its powers under this subtitle, including agreements with any person or federal agency; 16. Employ, at its discretion, consultants, researchers, architects, engineers, accountants, financial experts, investment bankers, superintendents, managers, and such other employees and special agents as may be necessary and fix their compensation to be payable from funds made available to the Authority. The Board may employ or retain legal counsel of its choice, subject to the approval of the Attorney General, to advise or represent the Authority in hearings, controversies, or other matters involving the interests of the Authority; however, upon request by the Board, the Attorney General shall provide legal services for the Authority in accordance with Chapter 5 (§ 2.2-500 et seq.) of Title 2.2; 17. Receive and accept from any federal or private agency, foundation, corporation, association, or person grants or other aid to be expended in accomplishing the objectives of the Authority, and receive and accept from the Commonwealth or any state and any municipality, county, or other political subdivision thereof or from any other source aid or contributions of either money, property, or other things of value, to be held, used, and applied only for the purposes for which such grants and contributions may be made. All federal moneys accepted under this section shall be accepted and expended by the Authority upon such terms and conditions as are prescribed by the United States and as are consistent with state law, and all state moneys accepted under this section shall be expended by the Authority upon such terms and conditions as are prescribed by the Commonwealth; 18. Adopt, alter, and repeal bylaws, rules, and regulations governing the manner in which its business shall be transacted and the manner in which the powers of the Authority shall be exercised and its duties performed. The Board may delegate or assign any duty or task to be performed by the Authority to any officer or employee of the Authority. The Board shall remain responsible for the performance of any such duties or tasks. Any delegation pursuant to this subdivision shall, where appropriate, be accompanied by written guidelines for the exercise of the duties or tasks delegated. Where appropriate, the guidelines shall require that the Board receive summaries of actions taken. Such delegation or assignment shall not relieve the Board of the responsibility to ensure faithful performance of the duties and tasks; 19. Conduct or engage in any lawful business, activity, effort, or project consistent with the Authority's purposes or necessary or convenient to exercise its powers; 20. Develop policies and procedures generally applicable to the procurement of goods, services, and construction, based upon competitive principles; 21. Develop policies and procedures consistent with Article 4 (§ 2.2-4347 et seq.) of Chapter 43 of Title 2.2; 22. Acquire, purchase, hold, use, lease, or otherwise dispose of any property, real, personal or mixed, tangible or intangible, or any interest therein necessary or desirable for carrying out the purposes of the Authority; lease as lessee any property, real, personal or mixed, tangible or intangible, or any interest therein, at such annual rental and on such terms and conditions as may be determined by the Board; lease as lessor to any person any property, real, personal or mixed, tangible or intangible, or any interest therein, at any time acquired by the Authority, whether wholly or partially completed, at such annual rental and on such terms and conditions as may be determined by the Board; sell, transfer, or convey any property, real, personal or mixed, tangible or intangible, or any interest therein, at any time acquired or held by the Authority on such terms and conditions as may be determined by the Board; and occupy and improve any land or building required for the purposes of this subtitle; 23. Purchase, lease, or acquire the use of, by any manner, any plant or equipment that may be considered necessary or useful in carrying into effect the purposes of this subtitle, including rectifying, blending, and processing plants; 24. Appoint every agent and employee required for its operations, require any or all of them to give bonds payable to the Commonwealth in such penalty as shall be fixed by the Board, and engage the services of experts and professionals; 25. Hold and conduct hearings, issue subpoenas requiring the attendance of witnesses and the production of records, memoranda, papers, and other documents before the Board or any agent of the Board, and administer oaths and take testimony thereunder. The Board may authorize any Board member or agent of the Board to hold and conduct hearings, issue subpoenas, administer oaths and take testimony thereunder, and decide cases, subject to final decision by the Board, on application of any party aggrieved. The Board may enter into consent agreements and may request and accept from any applicant, licensee, or permittee a consent agreement in lieu of proceedings on (i) objections to the issuance of a license or permit or (ii) disciplinary action. Any such consent agreement (a) shall include findings of fact and provisions regarding whether the terms of the consent agreement are confidential and (b) may include an admission or a finding of a violation. A consent agreement shall not be considered a case decision of the Board and shall not be subject to judicial review under the provisions of the Administrative Process Act (§ 2.2-4000 et seq.), but may be considered by the Board in future disciplinary proceedings; 26. Make a reasonable charge for preparing and furnishing statistical information and compilations to persons other than (i) officials, including court and police officials, of the Commonwealth and of its subdivisions if the information requested is for official use and (ii) persons who have a personal or legal interest in obtaining the information requested if such information is not to be used for commercial or trade purposes; 27. Take appropriate disciplinary action and assess and collect civil penalties and civil charges for violations of this subtitle and Board regulations; 28. Review and approve any proposed legislative or regulatory changes suggested by the Chief Executive Officer as the Board deems appropriate; 29. Report quarterly to the Secretary of Public Safety and Homeland Security on the law-enforcement activities undertaken to enforce the provisions of this subtitle; 30. Establish and collect fees for all licenses permits set forth in this subtitle, including fees associated with applications for such licenses and permits; 31. Develop and make available on its website guidance documents regarding compliance and safe practices for persons who cultivate marijuana at home for personal use, which shall include information regarding cultivation practices that promote personal and public safety, including child protection, and discourage practices that create a nuisance; 32. Develop and make available on its website a resource that provides information regarding (i) responsible marijuana consumption; (ii) health risks and other dangers associated with marijuana consumption, including inability to operate a motor vehicle and other types of transportation and equipment; and (iii) ancillary effects of marijuana consumption, including ineligibility for certain employment opportunities. The Board shall require that the web address for such resource be included on the label of all marijuana and marijuana product as provided in § 4.1-1405 ; 33. Establish, advertise, and administer a tip line, which may be accessed by phone and by internet, for members of the public to anonymously report concerns about, or suspected instances of, illicit retail marijuana practices in violation of this subtitle; 34. Create and require a decal for retail marijuana stores, microbusinesses, pharmaceutical processors, and cannabis dispensing facilities to prominently display on the premises of such establishments where marijuana, marijuana products, marijuana paraphernalia, immature marijuana plants, or marijuana seeds are sold to consumers that allows consumers to electronically verify the validity of such establishment's license or permit from the Board; 35. Access during business hours any facility governed by this subtitle and any business that offers for sale or sells at retail a substance intended for human consumption, orally or by inhalation, that is advertised or labeled as containing a cannabinoid for the purpose of conducting an inspection or securing samples to identify potential violations of this subtitle; 36. Conduct training and provide educational resources to the public on the application process for licenses; 37. Develop and provide consumer education that (i) highlights the ways purchasing marijuana and marijuana products from or cultivated and processed by licensees supports farmers, small business, and community reinvestment; (ii) educates consumers on how to recognize licensed retail marijuana stores and microbusinesses; and (iii) informs consumers about responsible marijuana consumption and health risks and other dangers associated with marijuana consumption. 38. Issue a semi-annual report that contains information regarding (i) license fees waived or reduced pursuant to § 4.1-606 ; (ii) licenses issued to or renewed for persons identified in subdivision B 13 of § 4.1-606 ; (iii) public education initiatives, including public awareness campaigns regarding driving under the influence, underage consumption and youth awareness, and health risks; (iv) community engagement initiatives; (v) sales and tax revenue; (vi) programs funded by marijuana tax revenue; (vii) efforts made pursuant to subdivisions 8, 9, 11, and 32; and (viii) license denials and disciplinary actions taken; 39. Maintain a public registry available online of information for all licensees that includes a searchable directory of licenses by license type and impact licensee designation; 40. Develop policies and procedures generally applicable to the audit of ownership and financial relationships across all licenses on a schedule established by the Board. The audits shall be conducted by an independent certified public accountant and the costs of such audits shall be borne by the licensee; 41. Beginning on July 1, 2029, and each July 1 thereafter, issue an annual report on the performance and health of the retail marijuana market in the Commonwealth, including information related to: (i) sales and tax revenue, including information on sales and tax revenue broken down by marijuana and marijuana product category; (ii) the distribution of tax revenue; (iii) the total number of licenses issued and the number of licensees actively operating in the Commonwealth; (iv) ownership diversity; (v) the number of jobs created in the marijuana industry, including information on the number of people employed by specific license type; (vi) average wholesale and retail prices of different types of marijuana and marijuana products; (vii) licenses issued to or renewed for persons identified in subdivision B 13 of § 4.1-606 , amounts distributed to such impact licensees through the Cannabis Equity Business Loan Fund, and performance metrics for such licensees; (viii) an anonymized summary of the compliance findings from any audit of ownership and financial relationships across all licenses conducted pursuant to the policies and procedures of subdivision 38; (ix) whether licensees with substantial market share of any category of licensure have an impact on the goals of (a) inclusion of microbusiness and impact licensees in the market, (b) maintaining adequate supplies of marijuana, and (c) prevention of dominant marketplace participation in the marijuana industry; (x) the potential expansion or contraction of the marijuana market in the Commonwealth, which may include information related to any increase in retail marijuana sales and activity in the illicit marijuana market; (xi) a comparison of estimated sales in the illicit marijuana market to sales in the retail marijuana market; (xii) information on the viability of marijuana establishments in the Commonwealth; (xiii) the feasibility of requiring pharmaceutical processors and cannabis dispensing facilities issued a permit by the Board pursuant to the provisions of Chapter 16 (§ 4.1-1600 et seq.) to offer for sale a certain amount or percentage of marijuana and marijuana products cultivated or processed by microbusinesses and impact licensees, including a proposed timeline for when such requirement may go into effect; and (xiv) any recommendations, including recommendations for statutory or regulatory changes, to strengthen the Commonwealth's retail marijuana market; 42. Investigate the ownership and control interests of all licensees, including a review of the licensee's or applicant's management and brand-licensing agreements to ensure compliance with § 4.1-807 ; 43. Coordinate with the Department of Criminal Justice Services to ensure the exchange of any information necessary to comply with the reporting requirements of the Community Policing Reporting Database established pursuant to § 52-30.3 ; 44. Establish, advertise, and administer a tip line, which may be accessed by phone and by internet, for members of the public to anonymously report concerns about, or suspected instances of, illicit retail marijuana practices in violation of this subtitle; 45. Create and require a decal for retail marijuana stores, microbusinesses, pharmaceutical processors, and cannabis dispensing facilities to prominently display on the premises of such establishments where marijuana, marijuana products, marijuana paraphernalia, immature marijuana plants, or marijuana seeds are sold to consumers that allows consumers to electronically verify the validity of such establishment's license or permit from the Board; and 46. Do all acts necessary or advisable to carry out the purposes of this subtitle. 2021, Sp. Sess. I, cc. 550 , 551 ; 2023, cc. 740 , 773 ; 2026, c. 1016 ; 2026, Sp. Sess. I, c. 1 .

Va. Code Ann. § 4.1-605 Additional powers; mediation; alternative dispute resolution; confidentiality

A. As used in this section: "Appropriate case" means any alleged license or permit violation or objection to the application for a license or permit in which it is apparent that there are significant issues of disagreement among interested persons and for which the Board finds that the use of a mediation or dispute resolution proceeding is in the public interest. "Dispute resolution proceeding" means the same as that term is defined in § 8.01-576.4 . "Mediation" means the same as that term is defined in § 8.01-576.4 . "Neutral" means the same as that term is defined in § 8.01-576.4 . B. The Board may use mediation or a dispute resolution proceeding in appropriate cases to resolve underlying issues or reach a consensus or compromise on contested issues. Mediation and other dispute resolution proceedings as authorized by this section shall be voluntary procedures that supplement, rather than limit, other dispute resolution techniques available to the Board. Mediation or a dispute resolution proceeding may be used for an objection to the issuance of a license or permit only with the consent of, and participation by, the applicant for a license or permit and shall be terminated at the request of such applicant. C. Any resolution of a contested issue accepted by the Board under this section shall be considered a consent agreement as provided in § 4.1-604 . The decision to use mediation or a dispute resolution proceeding is in the Board's sole discretion and shall not be subject to judicial review. D. The Board may adopt rules and regulations, in accordance with the Administrative Process Act (§ 2.2-4000 et seq.), for the implementation of this section. Such rules and regulations may include (i) standards and procedures for the conduct of mediation and dispute resolution proceedings, including an opportunity for interested persons identified by the Board to participate in the proceeding; (ii) the appointment and function of a neutral to encourage and assist parties to voluntarily compromise or settle contested issues; and (iii) procedures to protect the confidentiality of papers, work products, or other materials. E. The provisions of § 8.01-576.10 concerning the confidentiality of a mediation or dispute resolution proceeding shall govern all such proceedings held pursuant to this section except where the Board uses or relies on information obtained in the course of such proceeding in granting, suspending, restricting, or revoking a license or permit, or in accepting payment of a civil penalty or investigative costs. Consent agreements shall be signed by all parties and shall include provisions regarding whether the terms of the consent agreement are confidential. 2021, Sp. Sess. I, cc. 550 , 551 ; 2023, cc. 740 , 773 .

Va. Code Ann. § 4.1-606 Regulations of the Board

A. The Board shall promulgate reasonable regulations, not inconsistent with this subtitle or the general laws of the Commonwealth, that it deems necessary to carry out the provisions of this subtitle and to prevent the illegal cultivation, processing, transportation, distribution, sale, and testing of marijuana, marijuana products, and regulated hemp products. The Board may amend or repeal such regulations. Except as otherwise provided by law, such regulations shall be promulgated, amended, or repealed in accordance with the Administrative Process Act (§ 2.2-4000 et seq.) and shall have the effect of law. B. The Board shall also promulgate regulations that: 1. Govern the outdoor cultivation of marijuana by a marijuana cultivation facility licensee, including security requirements to include lighting, physical security, and alarm requirements, provided that such requirements do not prohibit the cultivation of marijuana outdoors or in a greenhouse; 2. Establish requirements for (i) securely transporting marijuana between marijuana establishments and (ii) securely delivering marijuana or marijuana products from retail marijuana stores or microbusinesses only in person to consumers, which shall include requirements of age verification, delivery radius, and recordkeeping; 3. Establish sanitary standards for marijuana product and regulated hemp product preparation; 4. Establish a testing program for marijuana, marijuana products, and regulated hemp products pursuant to Chapter 14 (§ 4.1-1400 et seq.); 5. Establish an application process for licensure as a marijuana establishment pursuant to this subtitle in a way that, when possible, prevents disparate impacts on historically economically disadvantaged communities; 6. Establish requirements for health and safety warning labels to be placed on marijuana and marijuana products to be sold or offered for sale by a licensee to a consumer and on regulated hemp products to be sold or offered for sale by a person in accordance with the provisions of this subtitle; 7. Establish a maximum tetrahydrocannabinol level for marijuana products, which shall not exceed (i) 10 milligrams per serving for edible marijuana products and where practicable an equivalent amount for other marijuana products or (ii) 100 milligrams per package for edible marijuana products and where practicable an equivalent amount for other marijuana products. Such regulations may include other product and dispensing limitations on tetrahydrocannabinol; 8. Establish requirements for the form, content, and retention of all records and accounts by all licensees and by any person selling a regulated hemp product; 9. Provide alternative methods for licensees to maintain and store business records that are subject to Board inspection, including methods for Board-approved electronic and offsite storage; 10. Establish (i) criteria by which to evaluate new licensees based on the density of retail marijuana stores in the community and (ii) metrics that have similarly shown an association with negative community-level health outcomes or health disparities. In promulgating such regulations, the Board shall coordinate with the Cannabis Public Health Advisory Council established pursuant to § 4.1-603 ; 11. Require retail licensees to file an appeal from any hearing decision rendered by a hearing officer within 30 days of the date the notice of the decision is sent. The notice shall be sent to the licensee at the address on record with the Board by certified mail, return receipt requested, and by regular mail; 12. Prescribe the schedule of proration for refunded license fees to licensees who qualify pursuant to subsection C of § 4.1-1003 ; 13. Establish a process by which to identify impact license applicants, which shall be an applicant that has at least 51 percent ownership and direct control by a person or persons who (i) have resided (a) between the years 1999 and 2025 in a jurisdiction that, after utilizing census tract data made available by the Unites States Census Bureau, is determined to have been disproportionately policed for marijuana crimes or (b) for at least three of the past five years in a historically economically disadvantaged community and (ii) meet one or more of the following six criteria: (1) have been convicted of or adjudicated delinquent for any violation of § 18.2-248.1 , former § 18.2-250.1 , or subsection A of § 18.2-265.3 as it relates to marijuana or any substantially similar offense under the laws of another jurisdiction; (2) are the parent, child, sibling, or spouse of a person who has been convicted of or adjudicated delinquent for any violation of § 18.2-248.1 , former § 18.2-250.1 , or subsection A of § 18.2-265.3 as it relates to marijuana or any substantially similar offense under the laws of another jurisdiction; (3) have attended for at least five years a public elementary or secondary school located in a historically economically disadvantaged community; (4) have received a Federal Pell Grant or attended for at least two years a college or university at which at least 30 percent of the students, on average, are eligible for a Federal Pell Grant; (5) are veterans of the Armed Forces of the United States; or (6) have qualified for financial assistance or relief from the U.S. Department of Agriculture as a distressed farmer in the last five years; 14. For impact license applicants, establish standards and requirements for (i) a preference in the licensing process; (ii) what percentage of application or license fees are waived to promote participation by impact licensees with an inability to pay standard application fees; (iii) grant or low-interest business loan programs; (iv) a waiver of any requirements to show proof of funds or current possession and control of the proposed licensed premises at the time of application; and (v) to the extent practicable, the proportional distribution of licenses among the applicants set forth in clauses (i) through (vii) of subdivision 13. If at any time the Board determines that an impact license was obtained on the basis of a fraudulent financial transaction or predatory operating agreement or if a prohibited assignment, sale, or transfer of an impact license occurs in violation of subsection C of § 4.1-702 , the Board shall immediately begin revocation proceedings pursuant to § 4.1-903 and require the original impact licensee and any other true parties of interest to repay to the Commonwealth the full value of any and all application or licensing fees that were waived; 15. Establish guidelines, in addition to requirements set forth in this subtitle, for the personal cultivation of marijuana that promote personal and public safety, including child protection, and discourage personal cultivation practices that create a nuisance, including a nuisance caused by odor; 16. Establish reasonable restrictions on outdoor advertising of marijuana, marijuana products, or regulated hemp products, not inconsistent with the provisions of this chapter, so that such advertising displaces the illicit market and notifies the public of the location of marijuana or hemp establishments. Such regulations shall be promulgated in accordance with § 4.1-1402 ; 17. Establish restrictions on the number of licenses that a person may be granted to operate a marijuana establishment in single locality or region; 18. Allow impact licensees and microbusinesses to (i) enter into cooperative agreements; (ii) lease space and equipment and cultivate, process, and sell marijuana and marijuana products on the premises of another licensee; and (iii) process marijuana and marijuana products out of a shared processing space, provided that no more than one license authorizing outdoor cultivation may be exercised on any given parcel of land, nor on parcels that are contiguous and under common ownership or control to said parcel; 19. Establish approval process for the Board to approve or deny ownership, financing, management, and brand-licensing agreements to ensure compliances with § 4.1-807 and establish an investigation process for determining whether a financial arrangement between a licensee and another party is commercially reasonable or constitutes undue influence, including the consideration of factors such as price-setting authority, shelf-space control, financing dependency, or shared personnel. Such regulations shall presume the permissibility of (i) passive investments resulting in less than a 10 percent equity interest in a licensee, unless the Board determines such investment otherwise results in undue influence, and (ii) management services agreements or brand licensing agreements that do not result in actual or contractual rights to control the management or operations of a licensee. Such regulations shall stipulate that any such investments or agreements described in clauses (i) and (ii) do not constitute undue influence or independently render any individual a principal of a licensee; 20. Establish procedures governing ownership disclosure and prior written approval of the Board for the assignment, sale, or transfer of any license or any change in ownership or control and background investigations of transferees. Such regulations shall (i) require that ownership interests be traced through all intermediary entities to the ultimate beneficial owners and (ii) include provisions specifying that a change of control occurs upon the (a) acquisition of 25 percent or more of equity or voting power, (b) execution of any instrument conferring appointment or removal rights over managers, or (c) cumulative transfers totaling 25 percent or more within any 24-month period; 21. Require that licensees, their employees, and their agents require all individuals to present bona fide evidence of legal age, as described in subsection B of § 4.1-1104 , to make a purchase in a retail marijuana store, with escalating civil penalties for repeated instances of noncompliance by licensees, their employees, or their agents; and 22. Establish penalties for any violations by licensees, their employees, or their agents of § 4.1-1104 , relating to the sale, transfer, or distribution of marijuana or marijuana products to a person (i) younger than 21 years of age or (ii) intoxicated. The Board shall provide for escalating civil penalties, leading up to and including the revocation of any license issued by the Authority, for repeated violations of § 4.1-1104 by licensees, their employees, or their agents. C. The Board may promulgate regulations that: 1. Set the number of licenses issued by type or class to operate a marijuana establishment in order to ensure that there is a significant supply of marijuana to meet demand, provide market stability, avoid market dominance, ensure a competitive market that considers small business opportunities and concerns, and limit the sale of unregulated marijuana; however, only five Tier V marijuana cultivation facilities licenses shall be issued before January 1, 2027. Beginning January 1, 2028, the Board shall determine the number of tier V marijuana cultivation facility licenses that the Authority will issue consistent with the goals identified in this subsection. If the Board makes an additional number of tier V marijuana cultivation facility licenses available, the number of licenses available to impact licensee applicants shall be equal to or greater than the number of licenses available to all other applicants. The Board shall not issue more than 350 retail marijuana store licenses. The Board may issue as many licenses as it deems necessary for any other license type not specified in this subdivision. If the Board does limit the number of licenses available for any other license type not specified in this subdivision, the number of licenses available to impact licensee applicants shall be equal to or greater than the number of licenses available to other applicants. 2. Prescribe any requirements deemed appropriate for the administration of taxes under § 4.1-1004 , including method of filing a return, information required on a return, and form of payment. 3. Limit the allowable square footage of a retail marijuana store, which shall not exceed 2,500 square feet of retail floor space. 4. Ensure that marijuana establishment licenses are, as possible and practicable, issued evenly among all areas of the Commonwealth and accounting for the population density of such areas; and 5. Establish additional market-concentration thresholds, including regional or statewide market-share and Herfindahl-Hirschman Index (HHI) benchmarks and policies and procedures for denying or conditioning the issuance of licenses or approval of transfers of licenses that would create undue market concentration. D. Board regulations shall be uniform in their application, except those relating to hours of sale for licensees. E. Courts shall take judicial notice of Board regulations. F. The Board shall consult with the Cannabis Public Health Advisory Council in promulgating any regulations relating to public health, including regulations promulgated pursuant to subdivision B 3, 4, 6, 7, 10, or 15, and except as otherwise provided in § 4.1-603 , shall not promulgate any such regulation that has not been approved by a majority of the members of the Cannabis Public Health Advisory Council. G. The Board's power to regulate shall be broadly construed. 2021, Sp. Sess. I, cc. 550 , 551 ; 2026, Sp. Sess. I, c. 1 .

Va. Code Ann. § 4.1-607 Board membership; terms; compensation

A. The Authority shall be governed by a Board of Directors, which shall consist of five citizens at large appointed by the Governor and confirmed by the affirmative vote of a majority of those voting in each house of the General Assembly. Each appointee shall (i) have been a resident of the Commonwealth for a period of at least three years next preceding his appointment, and his continued residency shall be a condition of his tenure in office; (ii) hold, at a minimum, a baccalaureate degree in business or a related field of study; and (iii) possess a minimum of seven years of demonstrated experience or expertise in the direct management, supervision, or control of a business or legal affairs. Members shall be appointed in a manner that ensures expertise among the Board members in health, law, finance, and law enforcement. Appointees shall reflect the racial, ethnic, gender, and geographic diversity of the Commonwealth. Appointees shall be subject to a background check in accordance with § 4.1-609 . B. After the initial staggering of terms, members shall be appointed for a term of five years. All members shall serve until their successors are appointed. Any appointment to fill a vacancy shall be for the unexpired term. No member appointed by the Governor shall be eligible to serve more than two consecutive terms; however, a member appointed to fill a vacancy may serve two additional consecutive terms. Members of the Board may be removed from office by the Governor for cause, including the improper use of its police powers, malfeasance, misfeasance, incompetence, misconduct, neglect of duty, absenteeism, conflict of interests, failure to carry out the policies of the Commonwealth as established in the Constitution or by the General Assembly, or refusal to carry out a lawful directive of the Governor. C. The Governor shall appoint the chair and vice-chair of the Board from among the membership of the Board. The Board may elect other subordinate officers, who need not be members of the Board. The Board may also form committees and advisory councils, which may include representatives who are not members of the Board, to undertake more extensive study and discussion of the issues before the Board. A majority of the Board shall constitute a quorum for the transaction of the Authority's business, and no vacancy in the membership shall impair the right of a quorum to exercise the rights and perform all duties of the Authority. D. The Board shall meet at least every 60 days for the transaction of its business. Special meetings may be held at any time upon the call of the chairman of the Board or the Chief Executive Officer or upon the written request of a majority of the Board members. E. Members of the Board shall receive annually such salary, compensation, and reimbursement of expenses for the performance of their official duties as set forth in the general appropriation act for members of the House of Delegates when the General Assembly is not in session, except that the chair of the Board shall receive annually such salary, compensation, and reimbursement of expenses for the performance of his official duties as set forth in the general appropriation act for a member of the Senate of Virginia when the General Assembly is not in session. F. The provisions of the State and Local Government Conflict of Interests Act (§ 2.2-3100 et seq.) shall apply to the members of the Board, the Chief Executive Officer of the Authority, and the employees of the Authority. 2021, Sp. Sess. I, cc. 550 , 551 ; 2026, Sp. Sess. I, c. 1 .

Va. Code Ann. § 4.1-608 Appointment, salary, and powers of Chief Executive Officer; appointment of confidential assistant to the Chief Executive Officer

A. The Chief Executive Officer of the Authority shall be appointed by the Governor and confirmed by the affirmative vote of a majority of those voting in each house of the General Assembly. The Chief Executive Officer shall not be a member of the Board, shall hold, at a minimum, a baccalaureate degree in business or a related field of study, and shall possess a minimum of seven years of demonstrated experience or expertise in the direct management, supervision, or control of a business or legal affairs. The Chief Executive Officer shall receive such compensation as determined by the Board and approved by the Governor, including any performance bonuses or incentives as the Board deems advisable. The Chief Executive Officer shall be subject to a background check in accordance with § 4.1-609 . The Chief Executive Officer shall (i) carry out the powers and duties conferred upon him by the Board or imposed upon him by law and (ii) meet performance measures or targets set by the Board and approved by the Governor. The Chief Executive Officer may be removed from office by the Governor for cause, including the improper use of the Authority's police powers, malfeasance, misfeasance, incompetence, misconduct, neglect of duty, absenteeism, conflict of interests, failure to meet performance measures or targets as set by the Board and approved by the Governor, failure to carry out the policies of the Commonwealth as established in the Constitution or by the General Assembly, or refusal to carry out a lawful directive of the Governor. B. The Chief Executive Officer shall devote his full time to the performance of his official duties and shall not be engaged in any other profession or occupation. C. The Chief Executive Officer shall supervise and administer the operations of the Authority in accordance with this subtitle. D. The Chief Executive Officer shall: 1. Serve as the secretary to the Board and keep a true and full record of all proceedings of the Authority and preserve at the Authority's general office all books, documents, and papers of the Authority; 2. Exercise and perform such powers and duties as may be delegated to him by the Board or as may be conferred or imposed upon him by law; 3. Employ or retain such special agents or employees subordinate to the Chief Executive Officer as may be necessary to fulfill the duties of the Authority conferred upon the Chief Executive Officer, subject to the Board's approval; and 4. Make recommendations to the Board for legislative and regulatory changes. E. Neither the Chief Executive Officer nor the spouse or any member of the immediate family of the Chief Executive Officer shall make any contribution to a candidate for office or officeholder at the local or state level or cause such a contribution to be made on his behalf. F. To assist the Chief Executive Officer in the performance of his duties, the Governor shall also appoint one confidential assistant for administration who shall be deemed to serve on an employment-at-will basis. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-609 Background investigations of Board members and Chief Executive Officer

All members of the Board and the Chief Executive Officer shall be fingerprinted before, and as a condition of, appointment. These fingerprints shall be submitted to the Federal Bureau of Investigation for a national criminal history records search and to the Department of State Police for a Virginia criminal history records search. The Department of State Police shall be reimbursed by the Authority for the cost of investigations conducted pursuant to this section. No person shall be appointed to the Board or appointed by the Board who (i) has defrauded or attempted to defraud any federal, state, or local government or governmental agency or authority by making or filing any report, document, or tax return required by statute or regulation that is fraudulent or contains a false representation of a material fact; (ii) has willfully deceived or attempted to deceive any federal, state, or local government or governmental agency or governmental authority by making or maintaining business records required by statute or regulation that are false and fraudulent; or (iii) has been convicted of (a) a felony or a crime involving moral turpitude or (b) a violation of any law applicable to the manufacture, transportation, possession, use, or sale of marijuana within the five years immediately preceding appointment. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-610 Financial interests of Board, employees, and family members prohibited

No Board member or employee of the Authority shall (i) be a principal stockholder or (ii) otherwise have any financial interest, direct or indirect, in any licensee subject to the provisions of this subtitle or in any entity that has submitted an application for a license under Chapter 8 (§ 4.1-800 et seq.). No Board member and no spouse or immediate family member of a Board member shall make any contribution to a candidate for office or officeholder at the local or state level or cause such a contribution to be made on his behalf. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-611 Seed-to-sale tracking system

To ensure that no marijuana or marijuana products grown or processed by a marijuana establishment are sold or otherwise transferred except as authorized by law, the Board shall develop and maintain a seed-to-sale tracking system that tracks marijuana from either the seed or immature plant stage until the marijuana or marijuana product is sold, dispensed, or destroyed. 2021, Sp. Sess. I, cc. 550 , 551 ; 2026, Sp. Sess. I, c. 1 .

Va. Code Ann. § 4.1-612 Moneys of Authority

All moneys of the Authority, from whatever source derived, shall be paid in accordance with § 4.1-614 . 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-613 Forms of accounts and records; audit; annual report

A. The accounts and records of the Authority showing the receipt and disbursement of funds from whatever source derived shall be in a form prescribed by the Auditor of Public Accounts. The Auditor of Public Accounts or his legally authorized representatives shall annually examine the accounts and books of the Authority. The Authority shall submit an annual report to the Governor and General Assembly on or before December 15 of each year. Such report shall contain the audited annual financial statements of the Authority for the year ending the previous June 30. The Authority shall also submit a six-year plan detailing its assumed revenue forecast, assumed operating costs, number of retail facilities, capital costs, including lease payments, major acquisitions of services and tangible or intangible property, any material changes to the policies and procedures issued by the Authority related to procurement or personnel, and any proposed marketing activities. B. Notwithstanding any other provision of law, in exercising any power conferred under this subtitle, the Authority may implement and maintain independent payroll and nonpayroll disbursement systems. These systems and related procedures shall be subject to review and approval by the State Comptroller. Upon agreement with the State Comptroller, the Authority may report summary level detail on both payroll and nonpayroll transactions to the State Comptroller through the Department of Accounts' financial management system or its successor system. Such reports shall be made in accordance with policies, procedures, and directives as prescribed by the State Comptroller. A nonpayroll disbursement system shall include all disbursements and expenditures, other than payroll. Such disbursements and expenditures shall include travel reimbursements, revenue refunds, disbursements for vendor payments, petty cash, and interagency payments. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-614 Disposition of moneys collected by the Board

A. All moneys collected by the Board shall be paid directly and promptly into the state treasury, or shall be deposited to the credit of the State Treasurer in a state depository, without any deductions on account of salaries, fees, costs, charges, expenses, refunds, or claims of any description whatever, as required by § 2.2-1802 . All moneys so paid into the state treasury, less the net profits determined pursuant to subsection C, shall be set aside as and constitute an Enterprise Fund, subject to appropriation, for the payment of (i) the salaries and remuneration of the members, agents, and employees of the Board and (ii) all costs and expenses incurred in the administration of this subtitle. B. The net profits derived under the provisions of this subtitle shall be transferred by the Comptroller to the general fund of the state treasury quarterly, within 50 days after the close of each quarter or as otherwise provided in the appropriation act. As allowed by the Governor, the Board may deduct from the net profits quarterly a sum for the creation of a reserve fund not exceeding the sum of $2.5 million in connection with the administration of this subtitle and to provide for the depreciation on the buildings, plants, and equipment owned, held, or operated by the Board. After accounting for the Authority's expenses as provided in subsection A, all net profits shall be appropriated in the general appropriation act only to the following sources: 1. To support early childhood care, early childhood education, and elementary and secondary education in the Commonwealth; 2. To the Cannabis Equity Reinvestment Fund established pursuant to § 2.2-2499.8 ; 3. To the Department of Behavioral Health and Developmental Services, which shall distribute such appropriated funds to community services boards for the purpose of administering substance use disorder prevention and treatment programs; and 4. To public health programs, including public awareness campaigns that are designed to prevent drugged driving, discourage consumption by persons younger than 21 years of age, and inform the public of other potential risks. C. As used in this section, "net profits" means the total of all moneys collected by the Board, less local marijuana tax revenues collected under subsection B of § 4.1-1004 and all costs, expenses, and charges authorized by this section. D. All local tax revenues collected under subsection B of § 4.1-1004 shall be paid into the state treasury as provided in subsection A and credited to a special fund, which is hereby created on the Comptroller's books under the name "Collections of Local Marijuana Taxes." The revenues shall be credited to the account of the locality in which they were collected. If revenues were collected from a marijuana establishment located in more than one locality by reason of the boundary line or lines passing through the marijuana establishment, tax revenues shall be distributed pro rata among the localities. The Authority shall provide to the Comptroller any records and assistance necessary for the Comptroller to determine the locality to which tax revenues are attributable. On a quarterly basis, the Comptroller shall draw his warrant on the Treasurer of Virginia in the proper amount in favor of each locality entitled to the return of its tax revenues, and such payments shall be charged to the account of each such locality under the special fund created by this section. If errors are made in any such payment, or adjustments are otherwise necessary, whether attributable to refunds to taxpayers, or to some other fact, the errors shall be corrected and adjustments made in the payments for the next quarter. 2021, Sp. Sess. I, cc. 550 , 551 ; 2026, Sp. Sess. I, c. 1 .

Va. Code Ann. § 4.1-615 Leases and purchases of property by the Board

The making of leases and the purchasing of real estate by the Board under the provisions of this subtitle are exempt from the Virginia Public Procurement Act (§ 2.2-4300 et seq.). The Authority shall be exempt from the provisions of § 2.2-1149 and from any rules, regulations, and guidelines of the Division of Engineering and Buildings in relation to leases of real property into which it enters. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-616 Exemptions from taxes or assessments

The exercise of the powers granted by this subtitle shall be in all respects for the benefit of the people of the Commonwealth, for the increase of their commerce and prosperity, and for the improvement of their living conditions, and as the undertaking of activities in the furtherance of the purposes of the Authority constitutes the performance of essential governmental functions, the Authority shall not be required to pay any taxes or assessments upon any property acquired or used by the Authority under the provisions of this subtitle or upon the income therefrom, including sales and use taxes on the tangible personal property used in the operations of the Authority. The exemption granted in this section shall not be construed to extend to persons conducting on the premises of any property of the Authority businesses for which local or state taxes would otherwise be required. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-617 Exemption of Authority from personnel and procurement procedures; information systems; etc

A. The provisions of the Virginia Personnel Act (§ 2.2-2900 et seq.) and the Virginia Public Procurement Act (§ 2.2-4300 et seq.) shall not apply to the Authority in the exercise of any power conferred under this subtitle. Nor shall the provisions of Chapter 20.1 (§ 2.2-2005 et seq.) of Title 2.2 or Article 2 (§ 51.1-1104 et seq.) of Chapter 11 of Title 51.1 apply to the Authority in the exercise of any power conferred under this subtitle. B. To effect its implementation, the Authority's procurement of goods, services, insurance, and construction and the disposition of surplus materials shall be exempt from: 1. State agency requirements regarding disposition of surplus materials and distribution of proceeds from the sale or recycling of surplus materials under §§ 2.2-1124 and 2.2-1125 ; 2. The requirement to purchase from the Department for the Blind and Vision Impaired under § 2.2-1117 ; and 3. Any other state statutes, rules, regulations, or requirements relating to the procurement of goods, services, insurance, and construction, including Article 3 (§ 2.2-1109 et seq.) of Chapter 11 of Title 2.2, regarding the duties, responsibilities, and authority of the Division of Purchases and Supply of the Department of General Services, and Article 4 (§ 2.2-1129 et seq.) of Chapter 11 of Title 2.2, regarding the review and the oversight by the Division of Engineering and Buildings of the Department of General Services of contracts for the construction of the Authority's capital projects and construction-related professional services under § 2.2-1132 . C. The Authority (i) may purchase from and participate in all statewide contracts for goods and services, including information technology goods and services; (ii) shall use directly or by integration or interface the Commonwealth's electronic procurement system subject to the terms and conditions agreed upon between the Authority and the Department of General Services; and (iii) shall post on the Department of General Services' central electronic procurement website all Invitations to Bid, Requests for Proposal, sole source award notices, and emergency award notices to ensure visibility and access to the Authority's procurement opportunities on one website. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-618 Reversion to the Commonwealth

In the event of the dissolution of the Authority, all assets of the Authority, after satisfaction of creditors, shall revert to the Commonwealth. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-619 Certified mail; subsequent mail or notices may be sent by regular mail; electronic communications as alternative to regular mail; limitation

A. Whenever in this subtitle the Board is required to send any mail or notice by certified mail and such mail or notice is sent certified mail, return receipt requested, then any subsequent, identical mail or notice that is sent by the Board may be sent by regular mail. B. Except as provided in subsection C, whenever in this subtitle the Board is required or permitted to send any mail, notice, or other official communication by regular mail to persons licensed under Chapter 8 (§ 4.1-800 et seq.), upon the request of a licensee, the Board may instead send such mail, notice, or official communication by email, text message, or other electronic means to the email address, telephone number, or other contact information provided to the Board by the licensee, provided that the Board retains sufficient proof of the electronic delivery, which may be an electronic receipt of delivery or a certificate of service prepared by the Board confirming the electronic delivery. C. No notice required by § 4.1-903 to a licensee of a hearing that may result in the suspension or revocation of his license or the imposition of a civil penalty shall be sent by the Board by email, text message, or other electronic means, nor shall any decision by the Board to suspend or revoke a license or impose a civil penalty be sent by the Board by email, text message, or other electronic means. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-620 Reports and accounting systems of Board; auditing books and records

A. The Board shall make reports to the Governor as he may require covering the administration and enforcement of this subtitle. Additionally, the Board shall submit an annual report to the Governor, the General Assembly, and the Chief Executive Officer of the Authority on or before December 15 each year, which shall contain: 1. The number of state licenses of each category issued pursuant to this subtitle; 2. Demographic information concerning the licensees; 3. A description of enforcement and disciplinary actions taken against licensees; 4. A statement of revenues and expenses related to the implementation, administration, and enforcement of this subtitle; 5. A statement showing the taxes collected under this subtitle during the year; 6. General information and remarks about the working of the cannabis control laws within the Commonwealth; 7. A description of the efforts undertaken by the Board to promote diverse business ownership within the cannabis industry; and 8. Any other information requested by the Governor. B. The Board shall maintain an accounting system in compliance with generally accepted accounting principles and approved in accordance with § 2.2-803 . C. A regular postaudit shall be conducted of all accounts and transactions of the Board. An annual audit of a fiscal and compliance nature of the accounts and transactions of the Board shall be conducted by the Auditor of Public Accounts on or before October 1. The cost of the annual audit and postaudit examinations shall be borne by the Board. The Board may order such other audits as it deems necessary. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-621 Certain information not to be made public

Neither the Board nor its employees shall divulge any information regarding (i) financial reports or records required pursuant to this subtitle; (ii) the purchase orders and invoices for marijuana or marijuana products filed with the Board by marijuana licensees; (iii) taxes collected from, refunded to, or adjusted for any person; or (iv) information contained in the seed-to-sale tracking system maintained by the Board pursuant to § 4.1-611 . The provisions of § 58.1-3 shall apply, mutatis mutandis, to taxes collected pursuant to this subtitle and to purchase orders and invoices for marijuana or marijuana products filed with the Board by marijuana licensees. Nothing contained in this section shall prohibit the use or release of such information or documents by the Board to any governmental or law-enforcement agency, or when considering the granting, denial, revocation, or suspension of a license or permit, or the assessment of any penalty against a licensee or permittee, nor shall this section prohibit the Board or its employees from compiling and disseminating to any member of the public aggregate statistical information pertaining to (a) tax collection, as long as such information does not reveal or disclose tax collection from any identified licensee; (b) the total amount of marijuana or marijuana products sales in the Commonwealth by marijuana licensees collectively; or (c) the total amount of purchases or sales submitted by licensees, provided that such information does not identify the licensee. 2021, Sp. Sess. I, cc. 550 , 551 ; 2026, Sp. Sess. I, c. 1 .

Va. Code Ann. § 4.1-622 Criminal history records check required on certain employees; reimbursement of costs

All persons hired by the Authority whose job duties involve access to or handling of the Authority's funds or merchandise shall be subject to a criminal history records check before, and as a condition of, employment. The Board shall develop policies regarding the employment of persons who have been convicted of a felony or a crime involving moral turpitude. The Department of State Police shall be reimbursed by the Authority for the cost of investigations conducted pursuant to this section. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-623 Employees of the Authority

Employees of the Authority shall be considered employees of the Commonwealth. Employees of the Authority shall be eligible for membership in the Virginia Retirement System or other retirement plan as authorized by Article 4 (§ 51.1-125 et seq.) of Chapter 1 of Title 51.1 and participation in all health and related insurance and other benefits, including premium conversion and flexible benefits, available to state employees as provided by law. Employees of the Authority shall be employed on such terms and conditions as established by the Board. The Board shall develop and adopt policies and procedures that afford its employees grievance rights, ensure that employment decisions shall be based upon the merit and fitness of applicants, and prohibit discrimination because of race, color, religion, national origin, sex, pregnancy, childbirth or related medical conditions, age, marital status, sexual orientation, gender identity, or disability. Notwithstanding any other provision of law, the Board shall develop, implement, and administer a paid leave program, which may include annual, personal, and sick leave or any combination thereof. All other leave benefits shall be administered in accordance with Chapter 11 (§ 51.1-1100 et seq.) of Title 51.1, except as otherwise provided in this section. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-624 Police power of members, agents, and employees of Board

Members of the Board are vested, and such agents and employees of the Board designated by it shall be vested, with like power to enforce the provisions of (i) this subtitle and the criminal laws of the Commonwealth as is vested in the chief law-enforcement officer of a county, city, or town; (ii) § 3.2-4207 ; (iii) § 18.2-371.2 ; and (iv) § 58.1-1037 . 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-624.1 Enforcement of laws by Chief Executive Officer or investigators; authority of investigators appointed by Chief Executive Officer

A. The Chief Executive Officer or investigators appointed by him shall be sworn to enforce the provisions of this subtitle and Board regulations. The Chief Executive Officer or investigators appointed by him shall have the authority to investigate violations of the statutes and regulations that the Authority is required to enforce. The Chief Executive Officer or investigators appointed by him shall also have the authority to issue summonses for violations of the statutes and regulations governing the unlicensed cultivation, processing, distribution, or selling of marijuana or marijuana products. In the event a person issued such a summons fails or refuses to discontinue the unlawful acts or refuses to give a written promise to appear at the time and place specified in the summons, the investigator may appear before a magistrate or other issuing authority having jurisdiction to obtain a criminal warrant pursuant to § 19.2-72 . B. All investigators appointed by the Chief Executive Officer are vested with the authority to administer oaths or affirmations for the purpose of receiving complaints and conducting investigations of violations of this subtitle, or any regulation promulgated pursuant to the authority given by this subtitle. Such investigators are vested with the authority to obtain, serve, and execute any warrant, paper, or process issued by any court or magistrate or any regulatory board under the authority of the Chief Executive Officer and request and receive criminal history information under the provisions of § 19.2-389 . 2026, c. 1016 .

Va. Code Ann. § 4.1-625 Liability of Board members; suits by and against Board

A. No Board member may be sued civilly for doing or omitting to do any act in the performance of his duties as prescribed by this subtitle, except by the Commonwealth, and then only in the Circuit Court of the City of Richmond. Such proceedings by the Commonwealth shall be instituted and conducted by the Attorney General. B. The Board may, in the name of the Commonwealth, be sued in the Circuit Court of the City of Richmond to enforce any contract made by it or to recover damages for any breach thereof. The Board may defend the proceedings and may institute proceedings in any court. No such proceedings shall be taken against, or in the names of, the members of the Board. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-626 Counsel for members, agents, and employees of Board

If any member, agent, or employee of the Board shall be arrested, indicted, or otherwise prosecuted on any charge arising out of any act committed in the discharge of his official duties, the Board chairman may employ special counsel approved by the Attorney General to defend such member, agent, or employee. The compensation for special counsel employed pursuant to this section, shall, subject to the approval of the Attorney General, be paid in the same manner as other expenses incident to the administration of this subtitle are paid. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-627 Hearings; representation by counsel

Any licensee, permittee, or applicant for a license or permit authorized by this subtitle shall have the right to be represented by counsel at any Board hearing for which he has received notice. The licensee, permittee, or applicant shall not be required to be represented by counsel during such hearing. Any officer or director of a corporation may examine, cross-examine, and question witnesses, present evidence on behalf of the corporation, and draw conclusions and make arguments before the Board or hearing officers without being in violation of the provisions of § 54.1-3904 . 2021, Sp. Sess. I, cc. 550 , 551 ; 2023, cc. 740 , 773 .

Va. Code Ann. § 4.1-628 Hearings; allowances to witnesses

Witnesses subpoenaed to appear on behalf of the Board shall be entitled to the same allowance for expenses as witnesses for the Commonwealth in criminal cases in accordance with § 17.1-611 . Such allowances shall be paid out of the fund from which other costs incurred by the Board are paid upon certification to the Comptroller. 2021, Sp. Sess. I, cc. 550 , 551 .

Va. Code Ann. § 4.1-629 Local ordinances or resolutions regulating marijuana or marijuana products.

A. No county, city, or town shall, except as provided in § 4.1-630 , adopt any ordinance or resolution that regulates or prohibits the cultivation, processing, possession, sale, distribution, handling, transportation, consumption, use, advertising, or dispensing of marijuana or marijuana products in the Commonwealth. B. 1. Notwithstanding subsection A, the governing body of any county, city, or town may adopt an ordinance that prohibits the acts described in § 4.1-1108 or the acts described in § 4.1-1109 in its local public parks, playgrounds, public streets, or any sidewalk adjoining any public street. A penalty may be prescribed by the locality for a violation of such ordinance. 2. Notwithstanding subsection A, the governing body of any county, city, or town may adopt an ordinance that decreases the minimum distance requirements as promulgated in Board regulations (i) between retail marijuana stores and microbusinesses or (ii) between a retail marijuana store or microbusiness and any hospital; public, private, or parochial school or institution of higher education; or child day program. C. Except as provided in this section, nothing in this subtitle shall be construed to supersede or limit the authority of a locality to adopt and enforce local ordinances to regulate businesses licensed pursuant to this subtitle, including local zoning and land use requirements and business license requirements. D. Except as provided in this section, all local acts, including charter provisions and ordinances of counties, cities, and towns, inconsistent with any of the provisions of this subtitle, are repealed to the extent of such inconsistency. 2026, Sp. Sess. I, c. 1 .

Va. Code Ann. § 4.1-630 Local ordinances regulating time of sale of marijuana or marijuana products.

The governing body of each county may adopt ordinances effective in that portion of such county not embraced within the corporate limits of any incorporated town, and the governing body of each city and town may adopt ordinances effective in such city or town, fixing hours during which marijuana and marijuana products may be sold. Such governing bodies shall provide for fines and other penalties for violations of any such ordinances, which shall be enforced as if the violations were Class 1 misdemeanors with a right of appeal pursuant to § 16.1-106 . A copy of any ordinance adopted pursuant to this section shall be certified by the clerk of the governing body adopting it and transmitted to the Board. On and after the effective date of any ordinance adopted pursuant to this section, no marijuana store shall sell marijuana or marijuana products during the hours limited by the ordinance. 2026, Sp. Sess. I, c. 1 .
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://law.lis.virginia.gov/vacode/title4.1/chapter6/Fetched: 10/16/2026