Will Vermont allow recreational cannabis sales?

Vermont is the only U.S. state to have legalized recreational cannabis through its legislators and not by popular initiative. It is also one of the only states to have legalized consumption, possession, and self-cultivation, but not legal sales. However, this situation is likely to change as deputies are preparing to introduce a law to this effect. This already has the support of many senators.

What the law proposes

The bill is currently only in draft form and has not yet been officially introduced in Parliament, but the Judicial Committee has already released some preliminary information on the proposed regulatory and tax systems. Regarding taxes, the bill provides for an excise tax of 10% on cannabis sales and a local tax of 1%. Regarding licenses, the bill provides for six different types: cultivation, manufacturing, wholesale, retail, testing laboratories, and cafes. It would therefore authorize various types of coffee shops where users could consume cannabis on-site (alcohol and tobacco would be prohibited there). On the other hand, the summary does not include home delivery.

Ideally, the law seeks to avoid monopoly situations, which is why the draft text includes a legal provision that prevents the simultaneous holding of multiple types of licenses. The idea is therefore to prevent the establishment of vertically integrated structures that already prevail in the state's medical cannabis system. The Chairman of the Commission that originated the law, Dick Sears, stated on this subject: «Some have expressed concerns over the last three years about.

#VT proposed law would NOT allow #cannabis Products to be combined with alcohol or tobacco…

a lot of #VT beer support in the room, “that one might come back up in committee” #vtpoli pic.twitter.com/wxWGNS6B25

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— Heady Vermont (@HeadyVermont) January 23, 2019

Additionally, with this law, the responsibility for regulating and overseeing the industry will be transferred from the Ministry of Public Health to an independent council: the Cannabis Control Board. The Senate committee suggested that the law could take effect as early as July and the first licenses granted before April 2021, which would leave enough time for the Board to prepare regulations.

What are the chances of success?

The bill will likely be officially introduced next week. It has already received the support of half the senators (15/30). The President of the Senate, Democrat Tim Ashe, announced that his chamber would expedite the transmission of the bill to the House of Representatives. According to him, Vermont is «missing out on ancillary benefits that could be increased through an official, regulated, and secure system.» He also pointed out that tax revenues from cannabis sales, which could fund social services, are benefiting neighboring states like Massachusetts, where residents can purchase cannabis.

While the Senate President appears enthusiastic, the same cannot be said for the Speaker of the House, Mitzi Johnson, who has stated she is «really torn» on the issue. In this instance, she would like to know more about the impact of the current system on road safety and consumption before implementing a commercial system. Nevertheless, the fact that the chamber has become Democratic in the last election suggests a more favorable reception than before. The future of this proposal is more uncertain than ever. Especially since the Republican Governor Phil Scott, who signed the legalization law last year, had expressed reservations Regarding the cannabis trade.