Vermont’s Senate Economic Development Committee is reviewing proposed legislation aimed at broadening the state’s legal cannabis market, which was established in 2022. The proposed bill seeks to make significant adjustments to current laws to foster a more robust and accessible cannabis industry.
One of the primary goals highlighted by lead sponsor Sen. Kesha Ram Hinsdale is to develop a vibrant craft cannabis scene similar to Vermont’s well-known craft beer industry. She emphasizes that encouraging small-scale, artisanal growers could help diversify the market and promote local businesses.
Number Of Towns That Host Licensed Cannabis Stores To Possibly Increase
A key feature of the legislation is a proposal to increase the number of towns that can host licensed cannabis stores. Currently, towns must hold votes to permit retail outlets, and only about a third have done so. As a result, retail locations tend to be concentrated in certain areas—Burlington has 12 stores, while Morristown has five. Many larger towns have yet to approve stores, limiting access for residents.
Zoning Authority To Be Granted, Possibly
The new bill would require all municipalities to decide by the end of this year whether to permit cannabis retail stores. Additionally, it would grant towns greater zoning authority to control where stores can be established, potentially encouraging more communities to participate in the legal market.
The legislation also proposes raising the allowable potency limits for various cannabis products. Furthermore, it would permit cannabis consumption at events such as weddings and festivals, similar to alcohol consumption, under the supervision of licensed operators.
State Excise Tax To Be Lowered, Possibly
To make legal cannabis more competitive with the black market, the bill suggests lowering the state excise tax from 14% to 10%. Recent surveys reveal that nearly half of Vermont cannabis users still buy from unregulated sources, primarily due to lower prices, which the tax reduction aims to address.
Senator Ram Hinsdale hopes these changes will help reduce the lingering stigma around cannabis use. “Many Vermonters consume cannabis, and in some cases, it’s a safer alternative to alcohol,” she said.
A Different Approach
Meanwhile, the Vermont Growers Association advocates for a different approach. Executive Director Geoffrey Pizzutillo explains that many of the state’s approximately 400 small growers struggle to get their products onto store shelves due to stiff competition. This situation has led some growers to surrender their licenses because they cannot turn a profit.
He proposes allowing growers to sell directly to consumers, bypassing retail stores altogether. Although a similar proposal was rejected last year, it remains on the table, despite concerns from the Vermont Cannabis Control Board about enforcement challenges.
Additionally, the Growers Association is advocating for the public to be able to consume cannabis wherever tobacco use is currently permitted.
Extensive Testimonies To Be Heard In The Coming Weeks
The Senate committee plans to hear extensive testimony on these proposals in the coming weeks as Vermont continues to shape its approach to legal cannabis.
This news story was originally reported on Vermont Public.
