The proposed bill S.278 seeks to amend Vermont's cannabis regulations by removing the THC concentration limit for cannabis flower and increasing the limit for concentrate products to 70 percent. It also raises the retail sales transaction limit from one ounce to two ounces and allows the Cannabis Control Board to issue various permits, including event and delivery permits, while eliminating the requirement for pre-approval of cannabis advertisements. Additionally, the cannabis excise tax is set to be reduced from 14 percent to 10 percent.

The bill further mandates a vote in the 2026 general election for municipalities that have not yet decided on permitting cannabis establishments and expands eligibility for grants from the Cannabis Business Development Fund, which will receive a $1,000,000 appropriation from the General Fund. It introduces new fees for various permits and enhances local government authority over cannabis establishments. The bill also establishes the Cannabis Business Development Fund to provide low-interest loans and grants to social equity applicants and tier 1 cultivators, with a one-time contribution of $50,000 per integrated license. Certain sections of the bill will take effect upon passage, while others will become effective on July 1, 2026.

Statutes affected:
As Introduced: 7-868, 7-881, 7-907, 18-4230, 18-4230a, 7-910, 7-864, 7-866, 32-7902, 7-863, 7-987