Launch Details: Vermont legalized adult-use cannabis through legislative action, making it the first state to legalize possession and cultivation by legislation rather than a ballot initiative. Governor Phil Scott signed Act 86 into law on January 22, 2018, allowing limited personal use and cultivation, but retail sales were not initially permitted. In 2020, the legislature passed S.54, which established a regulated market, with retail sales beginning on October 1, 2022.
Enabling Legislation: Act 86 legalized possession and home cultivation, and S.54 established Vermont’s regulated retail market under the oversight of the Cannabis Control Board (CCB).
Notable Amendments/Legal Adjustments: The CCB continues to refine regulations, with recent updates focused on social equity licensing and provisions for small cultivators.
Historical Milestones: Vermont’s legalization set a precedent for legislative cannabis reform, distinguishing it from other states that used ballot measures.
Legal Possession and Cultivation Limits
Possession Limits: Adults 21 and older may possess up to 1 ounce of cannabis flower. Concentrate possession is allowed only within the total 1-ounce flower-equivalent limit.
Cultivation Permissions: Vermont permits home cultivation, allowing adults to grow up to two mature and four immature plants per household.
Compliance Information: Home-grown plants must be kept secure and out of public view, and cultivated only in private residences. Cannabis must be transported in a secure, non-visible manner in vehicles.
Licensing and Business Regulation
License Types: Vermont offers licenses for retail, cultivation, manufacturing, testing, and integrated licenses for medical cannabis dispensaries. There are also licenses specifically for small cultivators and social equity applicants.
Business Operation Requirements: Licensed businesses must comply with state security measures, seed-to-sale tracking, and environmental regulations, with regular inspections conducted by the CCB.
Zoning and Fees: Local governments may restrict the number and location of cannabis businesses within their jurisdictions. Licensing fees vary by business size and type, with lower fees for small cultivators.
Tax Structure: Vermont levies a 14% excise tax on adult-use cannabis sales, plus the state’s 6% sales tax. Revenue is allocated to state programs, including education and public health initiatives.
Testing and Product Safety Standards
Testing Requirements: All cannabis products must undergo testing for potency, pesticides, heavy metals, and other contaminants before they reach the consumer. Testing must be done by licensed laboratories.
Labeling Standards: Products must include labels with THC/CBD content, health warnings, and dosing information. Child-resistant packaging is mandatory, and designs appealing to minors are prohibited.
Compliance Verification: The CCB conducts regular inspections and audits to ensure compliance with product testing, labeling, and packaging standards. Non-compliance can lead to penalties and product recalls.
Age and Access Restrictions
Purchase Age: Adults 21 and older can legally purchase cannabis products from licensed retail establishments.
Public Consumption Rules: Public consumption is prohibited statewide, and violators may face fines. Consumption is allowed only on private property, or within designated consumption areas if allowed by local ordinances.
Penalties for Violation: Penalties include fines for public consumption and underage possession, with escalating consequences for repeated offenses.
Social Equity and Community Impact
Social Equity Initiatives: Vermont’s cannabis program includes provisions to support social equity applicants, including reduced fees and priority licensing. Social equity resources focus on communities disproportionately affected by past cannabis prohibitions and small cultivators.
Local Control: Municipalities have the authority to regulate or opt out of allowing cannabis businesses. However, they cannot prohibit personal possession or use in private residences.
Consumer Protection and Enforcement
Recall Procedures and Consumer Complaints: Vermont requires cannabis businesses to implement recall protocols for contaminated or mislabeled products. Consumers may report adverse effects or product issues to the CCB.
Advertising Restrictions: Advertising targeting minors is prohibited. Advertisements cannot be placed near schools or youth-oriented areas, and all marketing must avoid language or visuals appealing to children.
Penalties and Compliance Measures: Non-compliance with Vermont’s cannabis regulations may result in fines, suspension, or license revocation. The CCB enforces strict compliance to maintain program integrity and consumer safety.
