Cannabis Control Board Update

On Thursday, June 10, the Cannabis Control Board held its fourth meeting to discuss small growers and transitioning legacy market actors into the legal marketplace, the Vermont Cannabis Equity Coalition, along with local small farmers and businesses, were invited to talk about the barries-to-entry in Act 164 and policies to address them. The Board also announced their Executive Director, and Governor Scott signed bill S.25 into law.

“Graham detailed simple fixes to the zoning language in Act 164 that can open the doors to thousands across the state, and that a uniquely Vermont licensing structure can become the engine to facilitate a viable marketplace, one that can withstand federal legalization and competition from our neighboring states”

Thursday, June 10’s Cannabis Control Board special meeting was the first in a series planned to address the seven priorities the Board defined in a previous meeting – small cultivators and legacy market, social equity, energy and environment and land use, youth prevention, and education, consumer protection, maintaining continuity of medical program services and highway safety. The meeting began at 9:30 AM and concluded around 2 PM, with the Board and guests spending most of the meeting, almost 3 hours, talking about small growers, farms, and businesses, and how to create an accessible and equitable marketplace.

Stephanie Waterman and Kendall Smith of White River Growpro spoke first before the Board on Thursday and passionately highlighted issues with Act 164. They also outlined how inexpensive licensing fees and affordable and accessible testing can help transition legacy businesses into the legal adult-use market. Both Stephanie and Kendall spoke to their own experiences, as local business owners, including issues Kendall experienced in California during the early days of Proposition 215 – all valuable lived experiences the new Board could benefit from, and it was great to see these Vermonters testifying.

Graham Unangst-Rufenacht, Policy Director of Rural Vermont, and founding member of the Vermont Cannabis Equity Coaltion followed Stephanie and Kendall by outlining the farm and agricultural inequities in Act 164, and how they would impact Vermonters ability to participate in the emerging market. As Policy Director of Rural Vermont, Graham was able to breakdown preciously how Vermont’s current taxation and regulation law would undermine small farms' and businesses' ability to create wealth, and offered to the Board specific policy proposals to address those shortcomings. Graham detailed simple fixes to the zoning language in Act 164 that can open the doors to thousands across the state, and that a uniquely Vermont licensing structure can become the engine to facilitate a viable marketplace, one that can withstand federal legalization and competition from our neighboring states.

After Graham spoke, Josh Decatur, Founder of Trace Vermont, and founding member of the Vermont Cannabis Equity Coaltion continued the conversation by raising the issue of production caps and ensuring that Vermont’s market remains fair and accessible to those with little-to-no capital and land. Act 164 does not cap production for the dispensaries when they enter the adult-use market, effectively allowing them to set up limitless indoor factory farms, Josh detailed why this is inappropriate for Vermont, what other states have done to prevent this, and what solutions Vermont can take. Beyond licensing fees, paperwork, services, and navigating the application process, which can be costly and challenging for small farms and businesses, and is seen as a barrier to entry, Josh detailed that we must do more to prevent inappropriate market consolidation and to ensure big business does not dominate the marketplace as they have done in many other states.

Chris White, founder of West Cresent Farm, a friend, and ally of VGA spoke after Josh and shared his vision for his hemp farm, his business, and how a fair and equitable Vermont adult-use marketplace can be an opportunity for farmers across the state, and for Vermont, itself. He described how the combination of Vermont’s talented farmers and gorgeous land can become another high-value attraction for travelers if outdoor cultivation were to be considered an agricultural practice. Chris also took a moment to speak to youth prevention and safety, a concern of Chair Peppers, and others, by suggesting that the fastest way to arrive at a safe market, for youth and adults, is to normalize cannabis into the fabric of society which means treating it similar to an agriculture product. The more the Board can hear directly from Vermonters, and those that wish to participate in the emerging market, the better our market will become.

Governor Signs Bill S.25

On Tuesday, June 8, Governor Scott signed into law bill S.25, an act relating to miscellaneous cannabis procedures, and without providing any sort of written statement. The bill will go into effect immediately and amends parts of Act 164, impacting the adult-use and medical markets.

Among other things, it tells the dispensaries to obtain 25% of their cannabis from license-holding craft cultivators, if available. The wording here, if available, means they are not compelled to purchase cannabis from other producers. The new law creates new advertising standards and requirements for cannabis products, allows the Board to report to the House Committee on Ways and Means, the Senate Committee on Finance, and the House and Senate Committees on Government Operations to establish fees, it amends certain reporting requirements and deadlines, and more. Read our complete breakdown of the final version of S.25, and here is the final text of the bill.

Executive Director

At the end of the meeting, on Thursday, Chair Pepper announced that the Board has made an offer to Brynn Hare, Legislative Counsel with the Vermont Office of Legislative Counsel, for the Executive Director position and that she has accepted. As Executive Director, Brynn will be responsible for leading many of the Board’s day-to-day functions, including developing rules for the adult- and medical-use cannabis markets, administering the licensing and oversight of cannabis establishments, and overseeing the operation of the medical registry.

Brynn will begin in July, and as Chair Pepper said, “The Board has an extremely complex set of challenges ahead. Brynn’s calm demeanor, matched with her instinct for collaboration and inclusivity will be essential in our ability to deliver on the promise of a safe, equitable, and effective adult-use cannabis marketplace in Vermont, we are so fortunate that someone with the reputation and respect that Brynn has fostered throughout her career was willing to accept this exciting new role.”