What Do We Know About Act 164?
Act 164 Summarized:
Legalizes sale / purchase / taxation of adult use cannabis with regulation and establishes a regulated retail market.
Towns can vote to “Opt In” the retail sale of adult use cannabis and integrated licenses.
It creates an independent commission within the executive branch — the Cannabis Control Board — to regulate and license an adult-use cannabis industry in VT and make recommendations to legislature (As of November 2021, there are decisions that have not yet been made by the CCB about how the law will impact local retail markets)
Retail sales may begin October 2022
Public consumption is illegal.
30% THC limit for Cannabis flower, 60% limit for concentrates
All sales (6%) and excise tax revenue (14%) sent to the State. 30% of these taxes are currently earmarked for funding universal afterschool and prevention initiatives
Only adults over 21 will be allowed entry, sale, and product usage.
For a full version go to: https://ccb.vermont.gov/sites/ccb/files/documents/ACT164%20As%20Enacted_1.pdf.
What is an Integrated License?
Towns get to vote for retail and integrated licenses (but are not required to). A company with an integrated license can grow it, sell it to other companies for retail sales, manufacture products (such as edibles), conduct testing (for their own cannabis or others), and sell it themselves in a retail store. The reason why integrated licenses require an opt-in vote by a town is because they include retail licenses.
Towns only have say in retail sales. All other licenses are issued and controlled at the state level.
Timeline and Cannabis Control Board
The Cannabis Control Board is still in the process of developing rules and regulations for the cannabis retail market. Towns that vote now are voting without full knowledge of all the information and implications.
Act 164 Timeline:
March 1, 2022: Final adoption of rules. RULEMAKING IS NOT FINAL!
On or before May 1, 2022: Begin issuing licenses for small cultivators, integrated licensees, and testing labs; and Integrated licensees may begin selling cannabis and cannabis products to the public in those towns that have opted in.
On or before Oct. 1, 2022: Begin issuing licenses for retailers; and retailers may begin selling cannabis and cannabis products to the public in those towns that have opted in.
The Cannabis Control Board (CCB) will establish regulations and administer compliance and enforcement. The CCB will oversee regulations for: Cultivators, Testing laboratories, Product manufacturers, Wholesalers, Retailers, Integrated licenses. Meetings continue for the Full Board and Sub-Committees. The meeting schedule and other information about the CCB can be found here. Act 164 established the CCB during the 2020 legislative session. It was subsequently amended by Act 62 in 2021.
Recent updates / current items up for consideration by the CCB:
Note: While the CCB is creating baseline rules/regulations, towns may be given local control to craft rules/regulations that best fit what they want for their communities.
Making recommendations for tax and regulate structure, considering:
Capping local license fees at $100
Proposing to legislature a 1%-2% tax for towns opting in; currently NO tax revenue for towns that don’t have local options tax
Focusing on policies that address social equity to overcome negative impacts of the war on drugs
Set new “buffer zone” rule prohibiting retail store within 500 ft. from school – 1000’; towns will be allowed to choose their own (reduce or expand) up to 1000’