The Vermont State House adjourned on Friday, May 12, with the legislature passing bill H.270 late in the evening with all of the amendments we managed to get included in the legislation, and the Cannabis Control Board is undergoing a rules amendment process. This year has been an extraordinarily busy legislative session for us! We spent more days in the State House, meeting with lawmakers, and in various House and Senate committees this past year than any other year and likely more than any other organization working on cannabis policy in Vermont, except for the CCB.

Updates from the State House

Before the State House adjourned for the year on Friday evening, the House chamber concurred with the Senate's amendments in bill H.270, passing the bill out of the legislature and onto Governor Scott's desk, who is expected to allow the bill to become law without his signature. Bill H.270 was the primary bill for cannabis policy this year, and while it was being called a "housekeeping" bill by lawmakers in the State House and the Cannabis Control Board (CCB), it includes several different broad-ranging policies, many of which are significant and that we fought for in the legislation. We dive deep into a few issues in the bill and then provide a rundown of the legislation.

A top priority this year was to devote a portion of the cannabis excise tax revenue toward racial and social equity and community reinvestment. Vermont is one of the few states with a regulated cannabis market that doesn't devote any monies to these issues. Though we did not manage to include devoted ongoing funding for the Cannabis Business Development Fund (CBDF) and move the fund's administration out of the Vermont Agency of Commerce and Community Development (ACCD), and introduce a Community Redevelopment Fund, we held those vital discussions in various committees with lawmakers and ultimately arrived at continuing the same funding for 2024 as 2023 and a commitment to tackle the devoted funding and community reinvestment policies next legislative session. As a compromise, bill H.270 includes another one-time appropriation of $500,000 into the CBDF to be administered by the ACCD and a legislative report to collect data on and report back to the General Assembly the impacts of the criminalization of cannabis on individuals and communities in Vermont and the United States to help determine how to address social equity and community reinvestment funding next legislative session.

Another top legislative priority this year was to define outdoor cultivation as agriculture as much as possible at the state level without any form of federal compliance from the USDA. Only a couple of states have any degree of recognition that cannabis is agriculture, and Vermont is one of them, which we first achieved last year with Act 158. Last year, Act 158 limited the newly defined agriculture benefits afforded to cannabis cultivators only to Tier 1 licensees and in current use, so this year we revisited that policy to expand the benefits to all tiers, remove current use as a requirement, and begin to move cannabis into Act 250. Together with former Senator John Rodgers, and the Vermont Cannabis Equity Coalition, we spent many days in House and Senate Committees discussing cannabis, ultimately arriving at some of the most progressive and farmer-friendly cannabis policies in the nation. If bill H.270 gets enacted into law by the Governor, not only will Outdoor and the outdoor portion of Mixed-Use licensees become eligible to be enrolled in current use, they will be exempt from certain sales tax, they will be exempt from local control and municipal bylaws, and they will be protected from nuisance under Act 250. This is arguably the most significant policy in bill H.270 and we hope it will bring material change to local farmers and in bringing Vermont as a state closer to a more just cannabis marketplace, with an appellation of origin program, and direct-market sales for small producers.

Bill H.270, The primary cannabis bill in 2023

There are several welcomed policies included in bill H.270 that we supported and fought for and will bring significant improvements to the lives of Vermonters. Will we provide a thorough breakdown of the bill if it gets enacted by the Governor and below is a rundown of some of the key policies:

• Increasing the Tier-1 Manufacturing license annual gross cap from $10,000 to $50,000.

• Expanding the allowance for cultivators to possess and sell cannabis products.

• Increasing the total THC limit for cannabis products from 50 mg to 100 mg per package.

• Removing the Vape Tax from hardware and devices.

• Easing the advertising laws to allow the CCB more discretion to approve advertisements.

• A propagation license allows for the production of seeds and immature plants with the allowance to sell cannabis seeds directly to the public.

• Increasing the plant count from 2 mature and 7 immature to 6 mature and 12 immature for medical patients and caregivers.

• Allowing the CCB to enact medical cannabis rules.

• Allowing a medical cannabis caregiver to care for up to 2 medical cannabis patients (allowing for up to 12 mature and 24 immature plants).

• A medical cannabis legislative report, to determine recommendations to improve the Medical Cannabis Registry.

• Sunsetting the CCB Advisory Committee.

• And more much...

Lifting the THC caps is another top legislative priority this year for us, and that work did not find as much progress as we had hoped. The CCB took the lead on this issue this year, allowing us advocates to focus on other priorities, but their efforts on this issue stalled when the Vermont Medical Society convinced the Governor to veto and THC cap reform bill. The good news on this front is that collectively the industry has a bill in the State House to reform the THC caps that will survive the biennium, that bill was also introduced in committee, and we got it taken off of the wall in committee, meaning initial discussion was held, so we won't have to do that work in 2024 – and we are working the other CCB, lawmakers, and others to set the stage to remove the caps in 2024. Removing the THC caps, lifting the advertising ban, and direct sales for small producers are just some of the issues we are planning to focus on next year.

Even though this past legislative session wasn't all we had hoped for, together with our Coalition we spent a lot of time and resources on bill H.270 and we hope, if allowed to become law, it will bring much-needed improvement to our members, and everyday Vermonters. Take a moment to use the Governor's website to urge he allows bill H.270 to become law link below.

Updates from the CCB

The CCB is holding public comment meetings this month for its rules amendment process. The first meeting was held at 10 AM on Wednesday, May 10, and the second meeting took 6 PM on Monday, May 15. Use the CCB's website to communicate any recommendations to changes in its rules, or attend the meetings to participate in the amendment process. The rules will undergo several more weeks of meetings and the Board is planning a statewide tour to meet in person with Vermonters and the industry to hear from them on proposed changes to the rules, including the emergency hemp rules. We will hold additional Zoom events to help discuss the rules and proposed changes, and be on the lookout for the CCB announcing its in person events.