Unlocking Hampton Roads | Virginia's New Cannabis Marketplace: What Comes Next?
Feature | Recreational Cannabis Marketplace in VA
Guest Perspective | Technology Due Diligence: Hiring Your Next HRIS
Here & Now | Hampton Roads Mobility Innovation Center Receives $3 Million State Grant
Word in the ‘Roads | Digest of significant press releases and investment announcements from over 40 of the region’s economic development authorities, alliances, chambers, incubators, and local governments
Regional RFPs | Opportunities to buy, build, and service regional municipalities
Recreational Cannabis Market in VA
State lawmakers have approved a framework for a recreational marijuana marketplace set to take effect July 1, 2027, closing a gap that's persisted since medical marijuana first became legal in the Commonwealth in 2017. The path wasn't linear: a 2020 expansion decriminalized simple possession, and by 2021 adults could legally possess and grow marijuana at home – but sales and distribution remained illegal, leaving Virginians to turn to the very black-market that legalization was supposed to undercut.
Similar retail marijuana legislation was proposed between 2023 and 2025, with each bill either failing in the General Assembly due to Republican opposition, or vetoes from then-Governor Glenn Youngkin, whose administration stated that “he [was] not interested in any further moves towards legalization of adult recreational use marijuana.” The current Democratic trifecta within Virginia’s House, Senate, and Governor’s Office voted to create Virginia’s recreational cannabis marketplace.
Thanks to these efforts, the Commonwealth stands to capture significant revenue via taxation of retail sales and associated industry activities. Legalization opens the door to an industry worth up to $2.4 billion as of 2023 – and business owners are diligently preparing to carve out their stake within the nuanced framework.
Here's what businesses and consumers need to know about the legislation's key provisions.
Licensure
2026’s cannabis legislation establishes standards for licensing, impact equity incentives, taxation, and revised criminal/civil penalties. Licenses are specific to segments of the industry – (i) cultivation, (ii) processing facilities, (iii) retail marijuana stores, and (iv) microbusinesses. Further licenses are available for marijuana transportation and marijuana testing facilities. The Cannabis Control Authority may begin accepting applications as early as February 1, 2027, and may issue licenses as early as May 1, 2027. The bill also lays out rules and regulations surrounding temporary licenses, businesses holding multiple licenses, and denial/suspension of licenses.
Marijuana Cultivation License: Permits a business to cultivate, label, and package marijuana. Cultivation licenses follow a five-tier structure, determined by canopy size and environment. Currently, only five Tier V licenses – the largest, commercial-grade growing facilities – may be administered. The CCA has not set limits for Tier I-IV licenses. Licenses are capped at 10 before May 1, 2027.
Marijuana Processing Facility License: Permits a business to extract, infuse, compound or otherwise manufacture products derived from marijuana. Processors may not sell direct to consumers. Licenses are capped at 10 before May 1, 2027.
Retail Marijuana Store License: Permits direct-to-consumer sales establishments, or “dispensaries.” Sales are capped at two ounces per transaction. Transactions are permitted only in (i) direct, face-to-face exchanges, (ii) using a licensed marijuana delivery operator, or (iii) by delivery in person to consumers. Deliveries are prohibited at certain public or government-owned locations. There is a strict cap of 350 available licenses.
Microbusiness License: Licensees may grow, process, and sell cannabis under certain circumstances. Canopy size must not exceed 5,000 square feet for indoor space, and 10,000 square feet for outdoor space. Licensee may only hold one license and may operate at two separate locations – provided that they are appropriately zoned and within 20 miles of each other. No single license privilege may be conducted at more than one location – for example, an operator may not cultivate marijuana at both locations. Licenses are capped at 100 before May 1, 2027.
Marijuana Transporter License: Permits licensees to transport marijuana products between licensed establishments.
Marijuana Delivery Operator License: Permits licensees to deliver marijuana products to consumers.
Marijuana Testing Facility License: Permits licensees to develop, research, transport, or test marijuana and related products. Testing may be done for the license holder, another licensee, or a general consumer.
Multiple Licenses: Excluding transportation, microbusiness, and testing facility licenses, a person may possess up to five different licenses, and no more than one Tier V marijuana cultivation license. Transportation licenses are excluded from the five-license cap. Testing facility and microbusiness licensees may not hold multiple licenses.
Fees and Taxes
An excise tax of 6% at the point of sale is levied upon marijuana and marijuana products before July 1, 2029, and 8% after July 1, 2029. This sales tax is in addition to general sales taxes. Further, each locality is directed to adopt an additional sales tax between 1% and 3.5%. Transactions between marijuana licensees and medical marijuana purchases are exempt from these additional sales taxes.
License and application fees, however, are less clear. As it currently stands, the Board has yet to determine the amount of such fees.
Impact Licenses & Marijuana Equity
Impact licenses are meant to promote equity among those who have been disproportionately impacted by the criminalization of marijuana. Licensees receive special benefits, such as discounted or waived license fees and preferential consideration in the licensing process, among others.
To qualify, impact license applicants must have at least 51% ownership and direct control by a person who (i) has resided (a) between 1999 and 2025 in a jurisdiction that, according to census data, has been disproportionately policed for marijuana crimes, or (b) for at least three of the past five years in a historically economically disadvantaged community (HEDC) and meets one or more of the following criteria:
- Convicted of or adjudicated delinquent for marijuana related crimes, or is the parent, child, sibling, or spouse of such an individual;
- Have attended, for at least five years, a public or secondary school located in a HEDC;
- Received a Federal Pell Grant or attended for at least two years a college or university where at least 30% of students are eligible for Pell Grants;
- Served in the Armed Forces of the United States;
- Qualified for financial assistance or relief from US Department of Agriculture as a distressed farmer in the last five years.
Impact licensees may not transfer more than 49% of controlling interest of the license for five years. If the number of impact license applicants exceeds the license limit of 55, the CCA will conduct a lottery.
Dual-Use Licenses and Conversion Fee
Previously licensed pharmaceutical cannabis processors can apply for a dual-use license, which affords them the same privileges as cultivation, processing, and retail marijuana store licensees. By May 1, 2027, dual-use licensees must pay a one-time $10 million conversion fee, or enter into an installment plan approved by the board, to qualify.
Similarly, 10 cultivation licenses and 10 processing facility licenses are available to pre-existing industrial hemp processors or growers. Such establishments must pay a $500,000 fee to receive the license. The application process for both conversion licenses will start on February 1, 2027.
Looking Forward
The retail marijuana marketplace framework creates significant new business opportunities across the Commonwealth, but the licensing and application process will likely be competitive and complex. Businesses considering entry into this market should expect to navigate detailed eligibility requirements, lottery procedures, and evolving CCA regulations.
Questions about the bill's provisions or assistance with the application process can be directed to Willcox Savage Consulting.
Article written by Carter T. Whitelow, MBA, Dylan Bishop and Peyton Lyons with Willcox Savage Consulting, a Virginia-first public affairs and lobbying firm dedicated to providing strategic guidance and advocacy to clients navigating the complex landscape of state and federal government.
Technology Due Diligence: Hiring Your Next HRIS
Implementing a new Human Resource Information System (HRIS) is one of the most significant operational decisions an organization can make. A well-selected system can improve efficiency, strengthen compliance, streamline payroll and benefits administration, and enhance the employee experience. A poor fit, on the other hand, can create frustration, increase administrative burdens, and hinder growth. As organizations evaluate new platforms, it is important to look beyond product demonstrations and feature lists and focus on how a system will support the organization's unique needs, both today and in the future.
A recent white paper from Fahrenheit Advisors explores this concept by comparing HRIS selection to the process of hiring and developing a key employee. The paper offers practical considerations for evaluating platform capabilities, assessing organizational fit, planning for implementation, and maximizing long-term return on investment.
For organizations considering a new HRIS or evaluating whether their current system is still meeting their needs, the white paper provides valuable insight into making a more strategic and sustainable decision.
Hampton Roads Mobility Innovation Center Receives $3 Million State Grant
Hampton Roads is taking a significant step toward becoming a leader in next-generation aviation and uncrewed systems technology. In April, the Commonwealth awarded a $3.06 million GO Virginia grant to support the creation of the Hampton Roads Mobility Innovation Center (MIC), an initiative designed to advance workforce development, technology testing, applied research, and business growth in the emerging advanced air mobility sector.
The Hampton Roads Mobility Innovation Center will establish a first-of-its-kind FAA-aligned ecosystem for advanced air mobility and uncrewed systems technologies. Leveraging facilities at Newport News-Williamsburg Airport and a dedicated Beyond Visual Line of Sight (BVLOS) operating environment at the Newport News Park Radio Control Club, the center will support workforce training, applied research, and real-world technology testing while further positioning Hampton Roads as a leader in aviation and mobility innovation.
The initiative is expected to strengthen Hampton Roads' position in the aviation and aerospace industries while supporting the region's long-term economic development goals. More than 20 public, private, academic, and government partners—including NASA, Old Dominion University, Christopher Newport University, and the Hampton Roads Alliance—are collaborating to help establish the region as a hub for advanced aviation innovation and workforce readiness.
This investment represents a major opportunity for the region to build on its existing aerospace assets and attract new businesses, talent, and innovation in one of the fastest-growing sectors of the transportation industry.
CITY OF NEWPORT NEWS, MAY 1, 2026
Full press release here.
Word in the 'Roads
Recent press releases regarding regional economic development.
Highwater Established to Support Allied Naval Fleet Readiness- A significant transaction in Hampton Roads' maritime and defense sector was announced this month with the formation of Highwater, a new global naval services platform created through the combination of Australia's Eptec Defence and Norfolk-based AMP United, a leading provider of naval preservation, structural, scaffolding, and ship repair services. Highwater will support U.S., Australian, and allied defense fleets with vessel preservation, maintenance, repair, and sustainment services across key naval hubs, including Norfolk, San Diego, Honolulu, Sydney, Adelaide, and Perth.
The formation of Highwater comes as allied nations expand naval cooperation through initiatives such as AUKUS, and increase investments in fleet readiness and modernization. With more than 600 employees and expertise supporting submarines, aircraft carriers, and surface ships, the company aims to build a scaled platform capable of delivering critical sustainment services for defense customers operating around the globe. Willcox Savage represented the owners of AMP United in the transaction.
Full press release here.
Intecro Robotics Established U.S. Operations in Norfolk- Norfolk’s growing reputation as a hub for maritime innovation and advanced manufacturing received another boost this month as Intecro Robotics, a Türkiye-based robotics and industrial automation company, announced the launch of its U.S. operations at the Hampton Roads Alliance IDEA Lab in downtown Norfolk. The company specializes in autonomous manufacturing technologies and plans to support the region’s maritime, defense, shipbuilding, and advanced manufacturing sectors.
Regional leaders view the investment as another example of Hampton Roads’ expanding role in maritime technology and defense-related innovation. In addition to creating opportunities for high-skill jobs, Intecro’s presence further strengthens the region’s growing ecosystem of companies focused on automation, robotics, and the modernization of the shipbuilding industrial base.
Full press release here.
Regional RFPs
Opportunities to buy, build, and service regional municipalities.
City of Virginia Beach: Managed Print and Digital Distribution Services- The City of Virginia Beach is seeking proposals from qualified vendors to provide managed print and digital distribution services. The scope includes document intake and processing, high-volume and on-demand printing, digital presentment, secure document hosting, reporting, and ongoing operational support.
VIEW RFP | Deadline: 3:00 p.m. on August 5, 2026
City of Norfolk: Medical and Pharmacy Benefits Management Services- The City of Norfolk, on behalf of the City, Norfolk Public Schools, and the Norfolk Redevelopment and Housing Authority, is seeking proposals for medical plan administration and pharmacy benefit management services for employees, pre-65 retirees, and eligible dependents. The contract will cover the period from January 1, 2028, through December 31, 2032, with the option for an additional five-year renewal. The Consortium prefers a bundled ("carved-in") approach but will also consider separate medical and pharmacy proposals if deemed to provide the best value. The solicitation also includes fully insured medical and pharmacy plan options.
VIEW RFP | Deadline: 2:00 p.m. on August 14, 2026
