The Senate Economic Development Committee is considering legislation that would make some significant changes to the state’s legal cannabis system, which was put in place in 2022.
Chittenden County Sen. Kesha Ram-Hinsdale, the lead sponsor of the bill, said one of its goals is to have Vermont develop a strong craft cannabis market along the lines of its craft beer market.
A key part of the bill is a provision to encourage more towns to allow stores to open in their communities.
Under current law, towns must vote to allow a store to open. Because only one third of towns have taken this step, it has led to the clustering of stores in certain regions of the state. For instance, Burlington has 12 stores and Morristown has five. Some larger communities don’t have any because they haven’t voted on this question.
The bill would require all towns to vote by the end of the year on whether to allow cannabis stores in their communities.
Ram-Hinsdale says the bill would also give towns additional zoning authority to determine where a store can be located, which she thinks will encourage more towns to allow stores.
"It's stopped a lot of communities from wanting to take this vote because then they lack a lot of control,” said Ram-Hinsdale.
The legislation would also increase potency caps for many cannabis products. And it would allow cannabis to be used at special events like weddings and festivals in the same way that alcohol is currently allowed under the auspices of a licensed entity.
The proposal would reduce the state's excise tax from 14% to 10% with the goal of drawing consumers away from the illicit market. Recent surveys indicate that roughly 50% of Vermonters who use cannabis purchase their products from the illicit market and that a lower price is a major reason why.
Ram-Hinsdale says she hopes the bill will help reduce the negative stigma that still surrounds cannabis. “We know that a lot of Vermonters consume cannabis and in many ways it is safer for them than alcohol.”
The Vermont Growers Association has a different approach to expanding the cannabis market in Vermont. Geoffrey Pizzutillo, the group’s executive director, says many of the state’s roughly 400 small growers are finding it very difficult to convince stores to carry their products because there’s enormous competition for the retail shelf space. He says this situation has forced some small cultivators to turn in their licenses because they are unable to make a profit on their farms.
He wants lawmakers to allow these growers to sell their products directly to consumers – essentially bypassing the retail stores.
A similar proposal failed last year, and it again faces uncertain prospects this year, in part because the Vermont Cannabis Control Board says the proposal raises some significant enforcement questions.
The Vermont Growers Association also wants lawmakers to allow the public consumption of cannabis anywhere that tobacco is currently legal.
The Senate Economic Development Committee is expected to take detailed testimony on the cannabis legislation in the coming weeks.
