Vermont celebrates 2.5 years of legal cannabis sales

Vermont ha been at the forefront of cannabis legislation, notably becoming the first state to legalize adult-use possession legislatively in 2018.Building upon this foundation, the state achieved another milestone in fall 2020 by legalizing cannabis sales and enacting a companion expungement and criminal justice reform law. Check out our summary of Vermont’s legalization laws.

Sales commenced in October 2022.. Efforts towards social justice have continued, including the passage of S. 25 in 2021. This bill strengthens social equity provisions, such as reducing or eliminating licensing fees for applicants impacted by previous cannabis laws enforcement and creating a Cannabis Business Development Fund to aid social equity applicants.

Under Vermont’s regulations, adults aged 21 and over with valid identification can purchase up to one ounce of marijuana or 8,400 milligrams of THC in alternative products. Adults can also securely cultivate up to 2 plants (and up to 4 immature plants). Unlike many other states, Vermont achieved this milestone legislatively rather than through voter initiative (a process Vermont does not have). The state imposes a 14% excise tax, 6% sales tax, and 1% local tax option on cannabis sales.

The oversight of the burgeoning industry falls under the purview of the Cannabis Control Board, tasked with regulating cannabis businesses to ensure compliance and safety standards are met.

Since it launched, the retail cannabis marketplace has seen significant growth.There are now 73 dispensaries licensed to serve the adult use market, according to the state’s Cannabis Control Board. Additionally, the state has licensed 317 cultivators at various tier levels. In November 2023, CCB regulators announced a halt on licensing for larger growers to avoid an oversupply in the state, particularly targeting Tier 4 and Tier 5 cultivators.

Vermont’s cannabis laws: new laws and pending bills:

In 2023, the following bills were introduced by the state’s lawmakers to amend the state’s marijuana laws. Several carried over to 2024, the second year other two-year legislative session:

H.270: The Vermont Legislature  approved and Gov. Scott signed  H.270 in Spring 2023, introducing several changes to Vermont's cannabis landscape. The law creates a "cannabis propagation cultivator" license, enabling the establishment of cannabis nurseries focused on developing new strains and cultivars and providing clean, tested source material for cultivators. Additionally, the law eliminates the requirement for psychotherapy for individuals with post-traumatic stress disorder seeking a medical card, allows caregivers to take care of two patients instead of one, and permits patients with lifelong conditions to renew their medical cards every three years instead of annually.

S.72: S.72 was introduced by Senators Sears and Ram Hinsdale and proposed lifting the potency limits on concentrated cannabis products in Vermont. A 60% THC concentration limit currently exists on cannabis concentrates sold in the state. This limit covers hashish, oils, and waxes. This bill is still being discussed in the state legislature.

H.612: H612 seeks to overhaul Vermont’s cannabis regulation by permitting adult use stores to serve medical patients under specific conditions. The bill includes the concept of a “medical endorsement” for adult use dispensaries, enabling them to sell medical grade products tax-free under their state operating license. H.612 also proposes reductions in state charges for dispensary operators, streamlines the medical marijuana card renewal process for many patients, and adds a new qualifying health condition for medical-grade products. H.612 also addresses synthetic hemp-derived intoxicating products with psychoactive THC, which are currently unregulated and commonly found at gas stations and convenience stores.

While these legislative initiatives represent progress, there is still work to be done to ensure that Vermont's cannabis laws continue to evolve to meet the needs of patients and consumers alike.

Timeline of Vermont’s cannabis progress

Vermont has been at the forefront of marijuana policy reform for two decades, and MPP is proud to have worked hand-in-hand with local allies and lawmakers to  make those humane and compassionate laws a reality. Vermont became one of the first state legislatures to pass medical marijuana in 2004, the state has made significant strides in expanding patient access and freedom for all adult cannabis consumers  since then.

Evolution of Vermont's Marijuana Laws:

• S. 76 (2004): Vermont became the ninth state to approve medical marijuana, enacting a very limited law to provide legal protection to qualifying patients. All but one of the earlier laws were by voter initiative.
• H. 645 (2011): Legislation was enacted to allow for the establishment of four dispensaries, expanding patient access to medical cannabis products.
• Decriminalization (2013): Possession of an ounce or less of marijuana by individuals aged 21 and older resulted in a civil penalty akin to a traffic ticket, reducing the burden on patients.
• Legal possession (2018) — On January 22, 2018, Governor Phil Scott signed H. 511, legalizing possession and limited cultivation of cannabis by adults aged 21 and older.
• Legal sales and expungement (2020) — Gov. Scott allowed a legal sales bill, S. 54, to become law without his signature. He also signed legislation providing for automatic expungement of all cannabis possession offenses.
• Establishment of the Cannabis Control Board (2020): The three-member Cannabis Control Board (CCB) was established through Act 164 of 2020 for the purpose of safely, equitably implementing and administering the laws and rules regulating adult-use cannabis (marijuana) in Vermont.
• Legal sales begin (2022) — Adult use sales began in October 2022.

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