Virginia Cannabis Control Authority Postpones Decision on Medical Cannabis License

LOS ANGELES- The Virginia Cannabis Control Authority (CCA) has delayed its decision to award a medical cannabis license for Health Service Area 1, which includes the Shenandoah Valley and parts of central Virginia. Originally scheduled to announce the licensee on June 26, the CCA now requires more time to review the extensive application materials.

Review Process and Delays

Shawn Casey, deputy chief of the CCA’s regulatory affairs office, stated that the postponement is due to the large volume of application materials—totaling 16,000 pages—from 40 applicants. “Given the great interest in the application process, as shown by the number of applications … we know the result will be highly scrutinized,” Casey said. He emphasized the need to ensure the integrity and comprehensiveness of the review before making a recommendation to the board. A new timeline for the decision has not been provided.

Historical Context and Current Challenges

Health Service Area 1 has not had a dispensary since Pharmacann Virginia, the original permit holder, lost its license in 2020 for failing to meet construction deadlines. The region’s dispensary license is one of five that Virginia issues for medical cannabis distribution.

Greg Habeeb, president of Gentry Locke Consulting and a lobbyist for the Virginia Cannabis Association, suggested that the delay might be due to incomplete information in some applications or the sheer volume of work involved in the review process.

Broader Cannabis Policy Issues in Virginia

The delay in awarding the medical cannabis license is part of a broader set of challenges in Virginia’s cannabis policy. Although the state legalized possession and use of cannabis in 2021, it has yet to establish a framework for recreational sales. Governor Glenn Youngkin vetoed legislation that would have implemented such a framework, leaving the state without a system for legal recreational sales.

Democratic lawmakers now anticipate that legal recreational sales will not commence until at least 2027, following the next gubernatorial election in 2025. The chosen applicant for the medical cannabis license will join four existing pharmaceutical processors in Virginia, all of which are operated by out-of-state companies.

The CCA’s careful approach to awarding the license reflects the ongoing complexities and scrutiny surrounding cannabis regulation in Virginia.