On Monday, Vermont Gov. Phil Scott signed several bills related to animal welfare, diversity in courts, and addiction recovery support, and allowed a cannabis bill to pass into law without signature. The bill is designed to improve regulations surrounding cannabis and hemp-derived products.

Scott also allowed H.612 to pass into law without his signature. The bill creates a series of changes to Vermont’s laws on cannabis, most notably, banning psychoactive hemp-derived products. Scott said there are pros and cons, and that the bill takes “some steps forward, and some steps back” in terms of regulations to keep products safe. 

Among the pros include a loophole related to hemp products that are infused with THC. The law “ensures individuals with significant, documented medical needs continue to have access to medical cannabis,” he wrote. It “makes progress toward safeguards” for people under 21 who want access to “more potent medical products,” and the bill is “responsive to municipal concerns regarding setbacks for outdoor cannabis cultivators.”

On the other hand, Scott wrote that he is concerned about “warnings from healthcare providers that the availability of high potency medical cannabis products in more retail stores will increase use among those who do not have a valid medical prescription.”

The bill will codify rules the Vermont Cannabis Control Board already adopted last year, limiting the sale of intoxicating hemp-derived products in the state and regulate them as cannabis products if they contain more than 0.3% of total THC. 

The Brattleboro Reformer reported last May that the bill cleared the Senate. “We finally got it down,” Cannabis Control Board Chairman James Pepper told the Reformer. “The Senate made some changes then the House concurred with the Senate.” 

H.612 passed “very late in the day Friday,” Pepper said at the time. The bill loosened up advertising restrictions slightly from earlier versions and added some working groups and more requirements regarding a patient-provider relationship for people under the age of 21. 

The bill provides a path for municipalities to establish preferred cultivation districts and have some power over where cannabis can be grown. It also creates several more changes. A medical use endorsement option will allow adult-use retailers to serve patients with the same authorizations as medical dispensaries such as curbside delivery pickup and tax-exempt sales to patients. On top of the $10,000 fee retailers pay for their license will be a $250 charge for the endorsement. 

Under the bill, retailers with a medical endorsement will be allowed to sell products that exceed potency caps to medical patients. Sales to medical patients will be exempt from taxes. 

Added to the list of conditions to qualify a person for the medical registry is ulcerative colitis. Renewal terms for patients will extend from one to three years. 

Fees for medical dispensaries would be cheaper, with applications costing $1,000 instead of $2,500, and the annual charge would go from $25,000 to $5,000. An initial $20,000 fee is eliminated by the bill. 

Geoffrey Pizzutillo, executive director of Vermont Growers Association, counted more than a dozen sections in the legislation. “We have yet to see the final version of the bill,” he said. “We have an idea of what’s in the bill.” 

“Though we didn’t manage to stop the cultivation districts, we feel like a compromise was arrived at,” he said of language on zoning. “There’s not going to be immediate setbacks. There’s going to be a working group. We’re part of the working group to assess the outdoor siting issue for next year’s General Assembly.” 

Local leaders also applauded its ban on hemp-derived psychoactive products like those containing delta-8 THC and similar compounds.

“Importantly, H.612 will ban synthetic hemp derived intoxicating products with psychoactive THC that are currently unregulated and appear in gas stations and convenience stores, taking advantage of a federal loophole,” Rep. Matthew Birong, D-Addison-3, said from the floor in March before the bill headed to the Senate. “Another major theme will be adopting the medical cannabis statutes to preserve access to products for patients, as the current model for medical dispensaries is becoming economically unviable alongside adult use retail cannabis stores.”

Current state law caps the THC percentage in smokable cannabis flower products at 30%—which is high but exceeded in certain varieties—and the amount of THC in solid or liquid concentrated cannabis at 60%. Vermont also imposes a 5 mg serving size/dose cap on edibles and 100 mg cap on entire packaged edibles. The edible dosages align with what you’d see in most other states.

The governor wrote that the bill’s pros outweigh the cons as he allowed it to pass into law.

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The Vermont House of Representatives voted in favor of S.114 on May 8, which would create a working group to study the pros and cons of allowing psychedelic-assisted therapy, as well as determine what regulations would entail.

S.114 was first read in the Senate on March 1, and passed on March 27. It was read in the House two days later, but a majority of action in the House has taken place over the past week in May. Due to a variety of changes made between Senate and House versions of the bill, another vote is necessary in order to pass the bill on to Gov. Phil Scott. If passed, the first meeting by the working group would take effect starting on July 1, 2024, with the first meeting to be held before July 15, with a report to be presented by Nov. 15. After that, the working group will conclude its role and cease to exist by Jan. 1, 2025.

The working group’s role would be to “review the latest research and evidence of the public health benefits and risks of clinical psychedelic assisted treatments” and “examine the laws and programs of other states that have authorized the use of psychedelics by health care providers in a therapeutic setting,” while also seeking testimony from Johns Hopkins’ Center for Psychedelic and Consciousness Research.

One of the more recent hearings included a change that tasks the Vermont Psychological Association to work with the Vermont Department of Health “for purposes of scheduling and staffing meetings and developing and submitting the report.”

When Sen. Martine Larocque Gulick first introduced the bill, it included language to legalize possession and consumption of psilocybin. The Senate Health and Welfare Committee removed that portion to primarily target the working group.

At the floor hearing on May 8, Rep. Tristan Roberts shared his personal experiences with psychedelic-assisted therapy. “I now recognize that my night terrors were my body’s way of asking me to face my fears,” said Roberts. “Psychedelic-assisted therapy gave me the tools to do that that I hadn’t found in 40 years of looking.”

He also spoke of the positive results of therapy and its benefits. “I sleep much better now. Depression and anxiety are more often symptoms that move through me; they are not me,” Roberts said. “I felt for the first time in memory that I could appreciate and add to the beauty in life. Psychedelic medicine helped me uncover again my true nature.”

In a hearing at the beginning of May, Rep. Anne Donahue voiced concerns about the safety of psychedelics as medicine. “I have lived the life of somebody who has been told, ‘Oh, this is safe, this is safe, this is safe.’ You know, ‘We in psychiatry and mental health know what we’re doing is safe. This is safe, this is safe, this is safe,’ and having my life practically destroyed,” Donahue said. “I see the new ads on TV about, ‘Oh, your distracted mother, calm her down with this drug!’ That’s a drug that’s prohibited in nursing homes, because it’s used to keep their behaviors in line. And it causes early, premature death. But, you know, give it to mom because she needs to be calmed down!”

Donahue did admit that if the U.S. Food and Drug Administration (FDA) is actively investigating psychedelic-assisted therapy, then Vermont should be “following [the FDA’s] lead” rather than acting too quickly. The FDA also recently recommended that cannabis be rescheduled from a Schedule I substance to Schedule III earlier this year in January.

Evidence is building in high-profile research in favor of psychedelic-assisted therapies. In September 2023, MAPS published its research on its Phase 3 Trial on MDMA-assisted therapy for post-traumatic stress disorder (PTSD). “It’s the first innovation in PTSD treatment in more than two decades. And it’s significant because I think it will also open up other innovation,” said MAPS Public Benefit Corporation (MAPS PBC) CEO Amy Emerson.

Last December, MAPS PBC submitted an application for approval to study MDMA-assisted therapy for those who suffer from PTSD. “The filing of our NDA is the culmination of more than 30 years of clinical research, advocacy, collaboration and dedication to bring a potential new option to adults living with PTSD, a patient group that has experienced little innovation in decades,” Emerson said. “If approved, MDMA-assisted therapy would be the first psychedelic-assisted therapy, which we hope will drive additional investment into new research in mental health.”

Recently in Vermont, concerns are mounting against a cannabis company that has had its products recalled by the Vermont Cannabis Control Board for having used myclobutanil. Board Chair James Pepper spoke to local news outlet Seven Days about the harm in using such as fungicide. “Some pesticides are OK for human consumption,” said Pepper. “This one is a very known toxic one. So there’s no excuse here. And the fact that they’ve been through this once before leaves very little room for any sort of leniency.”

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Vermont is the latest state looking to further examine and embrace the potential of psychedelics, as the state Senate recently passed a measure to establish a working group to research psychedelics and confirm whether, and to what extent, they may be used in therapeutic settings.

Senators approved the legislation, S. 114, on March 27, and it now heads to the House of Representatives for further consideration.

Vermont Senators Recognize Psychedelic Potential

Sen. Martine Gulick spoke to the potential of this research, given the growing body of literature finding that psychedelic compounds like psilocybin, found in “magic” mushrooms, could help to ease an array of mental health symptoms and conditions, including bipolar disorder, post-traumatic stress and other trauma-related disorders and more.

Americans appear to be growing more supportive of psilocybin use for therapy as well, with nine in 10 finding its use to be “morally positive” in a recent survey. Additionally, other compounds like MDMA, LSD and ketamine have been shown to offer a number of potential mental health benefits.

“Many would argue that these particular substances never should have been designated as Class One drugs to begin with because their power to heal far outweighs their ability to harm, especially when taken therapeutically with a doctor or health care practitioner,” Gulick said.

Ahead of the bill’s second reading, Gulcik added that the legislation “will start the state of Vermont on a journey to explore other possibilities and other options to treating mental illness.”

A Potential Psychedelic Advisory Group in The Green Mountain State

As it is currently written, the proposal would allow Vermont to establish an eight-member Psychedelic Therapy Advisory Working Group to examine psychedelic use as a means to improve physical and mental health. 

The group would also make findings and recommendations “regarding the advisability of the establishment of a State program similar to other jurisdictions” allowing healthcare providers to  administer psychedelics in a therapeutic setting. The working group would also examine how legal access to psychedelics would impact public health.

The working group would review current research on therapeutic use of psychedelic compounds, along with laws and programs introduced by other jurisdictions. Additionally, the group would be directed to seek out perspectives from individuals with lived experience on the therapeutic use of psychedelics and to provide “potential timelines for universal and equitable access to psychedelic assisted treatments.”

The bill was originally introduced with provisions that would legalize use and possession of psilocybin, though the Senate Health and Welfare Committee decided to eliminate that section in March to focus on the working group explicitly.

Sen. Ginny Lyons (D) suggested that decriminalization could “get in the way” of therapeutic use at the time, adding, “What we’re looking for is the value of therapeutic use.”

Riding the Wave of Psychedelic Research and Reform

While it’s still uncertain if the bill will ultimately pass, the effort represents a growing number of states looking to embrace new wave of psychedelic research and reform, largely with a focus on psilocybin.

Denver, Colorado became the first city to decriminalize psilocybin in 2019, with the entire state of Colorado following suit in 2022. Oregon became the first state to both decriminalize psilocybin and legalize its supervised use in 2020. A number of U.S. cities including Oakland and Santa Cruz, California; Washington D.C.; Somerville, Cambridge and Northampton, Massachusetts; Seattle, Washington and Detroit, Michigan have similarly moved to decriminalize psilocybin in recent years.

Looking at the current legislative session, psychedelic research and reform continues to be a popular focus. 

Indiana Gov. Eric Holcomb recently signed a measure including provisions to fund clinical trials on the clinical benefits of psilocybin, while Utah Gov. Spencer Cox recently authorized a program allowing hospitals to administer psilocybin and MDMA as an alternative treatment option.

Mirroring Vermont’s current effort, Maryland’s Senate and House of Delegates also enacted a measure that would create a task force to study possible regulatory frameworks for therapeutic access to psychedelic substances. Lawmakers in Vermont’s neighboring Connecticut are also considering legislation that would decriminalize psilocybin. 

And this list is far from exhaustive, with plenty more efforts happening nationwide to continue exploring the potential of psychedelic compounds, lessen or eliminate criminal penalties and possibly increase accessibility. 

Of course, it’s unclear what the road ahead holds, but if these trends persist, it’s likely to include increasingly more psychedelic research and reform across the nation.

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Vermont law currently caps THC for cannabis flower and concentrates but that could soon change under a new bill packed with amendments to improve the state’s cannabis market.

The Vermont Cannabis Control Board is asking lawmakers to drop the caps on the potency of cannabis and concentrates from state law, while the edibles caps would remain. Lawmakers argue that the bill could keep more consumers in the legal market, while some medical leaders in the state disagree.

Dropping the THC caps is one of several proposed changes to the state’s cannabis policies included in the new bill H.612, which the House Government Operations Committee took up on the floor for the first time on Jan. 12.

The bill targets hemp-derived products that are vaguely marketing intoxicating effects from synthetic cannabinoids such as delta-8 THC and so on. It would codify rules the board adopted last year, limiting the sale of intoxicating hemp-derived products in the state and regulate them as cannabis products if they contain more than 0.3% of total THC. The bill would codify rules the board already adopted last year that limit the sale of some  intoxicating hemp-derived products and regulate them as cannabis products if they contain more than 0.3% THC.

Current state law caps the THC percentage in smokable cannabis flower products at 30%—which is high but exceeded in certain varieties—and the amount of THC in solid or liquid concentrated cannabis at 60%. Vermont also imposes a 5 mg serving size/dose cap on edibles and 100 mg cap on entire packaged edibles. The edible dosages align with what you’d see in most other states.

“This section proposes to eliminate the first two,” Cannabis Control Board Chairman James Pepper said at the committee meeting. “The CCB has been asked in two subsequent years to evaluate the efficacy of these caps and submit reports about them.”

The problem is this leaves out potent cannabis forms that are needed by people with serious conditions like cancer or other conditions that require high amounts of THC. Valley News reports that the bill would remove those caps and also include “a laundry list of the commission’s requests.”

The bill was introduced by Reps. Michael McCarthy (D – Franklin-3) and Matt Birong (D – Addison-3) on Jan. 3.

Regulated Concentrates Safer Than the Black Market

Some people at the committee meeting argued that potency caps on concentrates only forces manufacturers to use potentially harmful fillers. You can’t just smoke anything, when it comes to vape thickeners and ingredients. 

“By limiting potency to 60%, you’re creating a perverse effect of giving the black market a monopoly on a product,” Dave Silberman, co-owner of FLORA Cannabis in Middlebury, said. “It’s a niche product—it’s maybe 4% or 5% of the entire market—but you’re giving them a monopoly on it.”

Regulated markets are more likely to vet products for harmful additives by requiring lab results and so on. If people are going to the black market to get concentrates over 60%—which are many—they’re going to have a higher risk of smoking an unapproved thickener or additive.

High Times has reported on potentially dangerous fillers such as vitamin E acetate, which is not safe to vape, and others, however it’s important to note that dangerous fillers have been used by the media to fan fear about cannabis.

The Centers for Disease Control and Prevention (CDC) confirmed in 2019 that the additive vitamin E acetate is the likely cause of the nation’s rash of lung injuries caused by vaping. Dr. Anne Schuchat, the principal deputy director of the CDC, told reporters that the additive, which received early attention as a potential cause of e-cigarette or vaping product use–associated lung injury (EVALI), was found in the lung tissue of patients by investigators.

Others have speculated that some hemp-derived compounds have similar traits. Published in the Journal of Medical Toxicology on Dec. 12, 2022, a team of researchers led by Neal L. Benowitz discovered a link between THC-O acetate and significant danger to the lungs. THC-O acetate shares structural similarities with vitamin-E acetate—an additive that becomes dangerous to the lungs when converted by heat.

The bill would also reduce operating fees the state imposed on medical cannabis dispensaries, reducing an application fee from $2,500 to $1,000 and dropping the annual renewal fee from $25,000 down to $5,000.

It would also increase the timeframe of a medical cannabis card from three years to five years for people who consume cannabis for a chronic condition other than pain.

Last October, WCAX in Vermont profiled various school officials to probe what their plans are and how the conversation around cannabis will continue, now that sales are legal for adults.

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A Vermont cannabis farmer has attracted some unwanted attention from his community and neighbors due to some unconventional employees on his cannabis farm: 30 ducks of all shapes, sizes and breeds.

Jason Struthers of Essex Junction, Vermont grows 100 licensed cannabis plants at his property. He uses duck manure to fertilize those plants after he bought them to use as meat but opted to let them hang out a while instead. 

“I actually bought the ducks initially to use them as meat. But I became attached to them too quickly and didn’t want to slaughter them all,” Struthers said to MyNBC5. “And I was also very new to the process and didn’t really understand it. So I just incorporated it into a permaculture.”

Struthers told High Times the duck manure is more useful to him than other fertilizer options because of the speed at which it’s ready to use in his garden. He said this came in handy particularly during the COVID-19  pandemic when supplies across all economic sectors were scarce and highly inflated.

“I have created a duck permaculture. Duck manure is one of the few that can be added directly to gardens without composting or fermentation,” Struthers said. “I’ve been able to create the vast majority of my organic fertilizer needs with the ducks. During COVID, organic fertilizers (everything actually) [were] scarce and extremely expensive. I was able to avoid all that with my ducks.”

Struthers has over seven varieties of ducks now and his cannabis farm appears to be running strong. However, some of his neighboring community members have voiced concerns both to Struthers and to community leaders about both the smell of the cannabis and the sound of the ducks. 

“I have ducks of several different varieties. Pekin, Muscovy, Khaki Campbell, Cayuga, Poofy Heads, Swedish Blue, and hybrids of each that have interbred,” Struthers told High Times. “My neighbors want me to move because they are very sensitive to smell and sound. They don’t like my cannabis or my ducks.”

According to MyNBC5, Struthers cannabis farm is in a bit of a gray area because you’re technically not allowed to have a “farm” in his neighborhood. Struthers lives in an R-1 zone, which does not allow for farms, but his cannabis cultivation license originally protected him from having to relocate his ducks in a ruling by the Essex Junction Development Review Board. 

However, the Vermont Agency of Agriculture officially designated Struthers’ property a farm in May of this year. This caused the review board to reverse their decision during a review of the case in September. They told Struthers he could keep his cannabis plants, but the ducks had to go. 

One of Struthers neighbors who is currently involved in litigation against Struthers and his mallard companions told MyNBC5 that Struthers’ cannabis farm has made life rather unpleasant for those living around him. 

“It really impacts us just not being able to enjoy our outside, you know, our lot. We can enjoy the inside, mostly. But if we go outside, then we’re subject to the smells, the noises,” said Wille Padnos, Struthers’ neighbor, to MyNBC5. 

Both Struthers and Padnos reportedly filed appeals in response to the review board’s decision. Struthers filed an appeal to keep his ducks and Padnos filed an appeal to make Struthers move his cannabis farm and the ducks somewhere else entirely. 

Struthers has not yet given up on his ducks. According to MyNBC5, the process of going through both appeals in court could take months until the fate of the ducks and the weed has been decided. However, the court could decide to fine Struthers as much as $200 per day while the proceedings take place if he opts to keep his ducks. 

“H.270 was specifically tailored to protect people like me from municipalities like the City Of Essex Junction. They can not make me stop Cannabis farming unless the legislation is changed,” Struthers said. “The city council recently drafted a letter to representatives, asking to do just that. I will be writing to the same legislators, asking not only to maintain the protections H.270 provides to small cultivators, but to strengthen them.”

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You can’t ignore the elephant in the room—that is, that cannabis is now legal in Vermont and sold to adults, and it’s only a matter of time until high school students are fully aware of their future options when they become adults.

WCAX in Vermont profiled various school officials to probe what their plans are and how the conversation around cannabis will continue, now that sales are legal for adults.

“Acknowledging that marijuana laws have changed—it’s for sale—so we take a really nuanced view here, which is talking to them about the realities of situations, but also talking to them about where they’re at in their actual lives,” Matt Meunier, a student assistance programming counselor at Champlain Valley Union High School in Hinesburg, Vermont, told WCAX.

Chittenden County—home to Champlain Valley Union High School—is also home to at least 10 cannabis retail stores, and school officials can’t keep pretending that they don’t exist.

“Talking about decision-making, what choices you want and what life you want to live helps take it away from just, ‘Hey, this is all available to you now,’ to what type of member of my community do I want to be? What are my habits?” said Meunier.

Meunier said there are more ways to consume cannabis now, but that there hasn’t been a noticeable increase in student use.

“I think the longer that students put off using for the first time or experimenting for the first time, the easier it gets for them to make those choices and the healthier it will be for them at the end,” said Meunier.

Kelly Dougherty with the Department of Health said that Vermont has the second-highest percentage of people nationwide aged 12 to 17 reporting using cannabis in the past 30 days—but that it’s ultimately up to parents to teach their kids about cannabis, among other things.

The results of a Monitoring the Future (MTF) Survey, conducted by the University of Michigan, were released on Dec. 16, 2015 by the university and the National Institute on Drug Abuse (NIDA). The study revealed that daily cannabis use among high school seniors has “changed little since 2010,” despite the advent of legalization in several states and its consideration in many others.

Another interpretation of the study, however, notes that cannabis use becoming more popular than tobacco use, because for the first time “more high school seniors smoke marijuana daily than cigarettes.”

“Parents are the number one influence on their kids. Our kids are watching us all the time and they model the behavior that they see. So, even with alcohol, we recommend that if parents are using alcohol, keep it kind of out of sight and talk to your kids about the risks of it,” said Dougherty.

The main concern appears to be curbing underage use until they are old enough to decide on their own.

“We like to focus on helping youth develop healthy coping strategies, again, protecting brain health so they can be their best selves. Just because something is legal doesn’t mean it’s safe,” said Dougherty.

Adult-Use Cannabis in Vermont

On Jan. 22, 2018, Gov. Phil Scott signed the adult-use cannabis bill into law, which made Vermont the ninth state in the nation at the time to have legalized cannabis for both medical and recreational purposes. Starting July 1, 2018, adults living in Vermont were permitted to possess up to one ounce of cannabis, as well as grow up to six plants. 

It would take over a year for retail sales to launch in the state.

In 2020, Vermont became the 11th state to tax and regulate cannabis for adults. Two years later, sales figures are beginning to show the rewards. Adult-use cannabis sales officially launched in Vermont recently, with stores in three communities opening their doors to customers.

Under Vermont law, a portion of the excise tax revenue is allocated to fill any deficit in the control board’s budget. Of the excise tax revenue, 70% goes to the state general fund, and 30% goes towards substance abuse and prevention funds. Cannabis sales tax revenue is earmarked for after-school and summer learning programs.

Vermont’s adult-use cannabis industry took off with a bang. According to the Vermont Department of Taxes, Vermont cannabis stores sold $2.6 million worth of product in October, the first month of legal cannabis sales.

James Pepper, chair of the Vermont Cannabis Control Board, said that $2.1 to $2.4 million in excise taxes could be collected during the first nine months of cannabis sales. That translates to around $233,000 to $267,000 per month. “They look pretty much like our projections were accurate,” Pepper said.

Vermont legalized personal possession and cultivation of cannabis for adults back in 2018. The state legalized medical cannabis in 2004.

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“Historic” flooding in Vermont is causing an unprecedented number of landslides in the state, impacting businesses including those in the cannabis industry. After Vermont cannabis businesses were denied federal assistance, local trade organization, Cannabis Retailers Association of Vermont, and local festival Higher Calling plan to raise funds.

Summer flooding wreaked havoc upon the state of Vermont over the summer months. It’s probably not the last of flooding the state is in for: “I don’t want to be alarmist, but I also want to be realistic,” Ben DeJong, the state geologist told VTDigger. “This could be something we deal with again.”

Even with provisions that work in other industries, such as federal crop insurance, cannabis businesses often are left out of those programs. Although Vermont Gov. Phil Scott asked the U.S. Department of Agriculture disaster declaration, it still would not allow affected cannabis farmers to receive federal crop insurance, according to a USDA Farm Service Agency executive director. 

“Because we are a federal agency, we have to follow federal law,” said Small Business administration public information officer, Carl Dombek. “Cannabis is not legal under federal law, and therefore we are not able to lend to cannabis dispensaries.”

Forbins Finest in Barre was among the cannabis stores that were impacted. “The water came in pretty hard, pretty fast,” said Angela Payette, co-owner of Forbin’s Reserve, Inc. 

“To get right back into action, get back open so that people can have just a little bit of relief in some tough times,” said Brandon Marshall, the other co-owner of Forbin’s Reserve, Inc. However, Forbins Finest was able to reopen, while others were not, such as Capital Cannabis.

“The North Branch River was cresting over and immediately flooded the back parking lot as we were pulling out and we haven’t been able to move back in since,” said Lauren Andrews, who owns Capital Cannabis in Montpelier. Capital Cannabis was relocated to the Central Vermont Marketplace in Berlin.

Higher Calling

To lend a helping hand, the Cannabis Retailers Association of Vermont is selling tickets to Higher Calling, a two-day music festival in Cabot, and providing a portion of proceeds to flood victims. Organizers hope to sell 1,500 tickets for Higher Calling. The festival takes place on Sept. 15 and 16 in Cabot, Vermont, at Pransky Farm.

Organizers say that all the proceeds going beyond the festival expenses will go towards flood victims in the industry. “Any money that we make from sponsorships that exceeds the expense of the festival, 100% of those funds will go into the fund to support cannabis businesses,” said Todd Bailey, the executive director of the Cannabis Retailers Association of Vermont.

Planning for the festival began months ago, The Cannabis Retailers Association of Vermont said. But they quickly shifted focus to transform the festival into a fundraising effort once the severity of flooding became more apparent. 

Barre, Vermont was one of the cities most impacted by flooding. Landslides took out houses, powerlines, and infrastructure. Debris litters the streets. It was bad enough that they renamed the state’s annual Green Up Day, Flood Recovery Clean Up Day, which will take place on Saturday, August 26. The idea is to clean up roadsides, rivers, parks, and other areas hit hardest by the recent wave of widespread flooding.

The day is meant to “keep Vermont the clean and beautiful place we know and love, as we welcome visitors to support our economy and communities,” Gov. Phil Scott said during a press conference on Tuesday.

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While the west coast braces for the annual summertime heatwave, states on the east coast are trying to stay afloat amidst heavy rain. Destructive flooding ran through Monteplier, Vermont, the state’s capital, leaving many businesses closed for cleanup and repair. For affected cannabis businesses, this means that they can’t apply for federal aid.

According to VTdigger.com, Lauren Andrews, the owner of Capital Cannabis on Main Street, spent many days last week cleaning up her dispensary with the intention of reopening on July 17. However, upon returning to her business she found a water leak that left the walls and floors soaked through. “We’re going to have to gut the place and start from scratch,” Andrews told the news outlet.

Also on July 17, cannabis business owners received word that they aren’t eligible for federal disaster aid. Instead, those funds are being driven toward other businesses who were impacted by last week’s historic floods.

“Because we are a federal agency, we have to follow federal law,” said Small Business administration public information officer, Carl Dombek. “Cannabis is not legal under federal law, and therefore we are not able to lend to cannabis dispensaries.”

VTdigger.com also noted that a cannabis business that has also received any FEMA Small Business Program assistance is disqualified from aid. Although Vermont Gov. Phil Scott asked the U.S. Department of Agriculture disaster declaration, it still would not allow affected cannabis farmers to receive federal crop insurance, according to a USDA Farm Service Agency executive director.

However, if cannabis industry employees lose their jobs because of the floods, they can still apply for unemployment since it’s a state provided service, and not a federal program.

The floods aren’t threatening to shut down cannabis businesses across the entire state but according to Cannabis Control Board chair, James Pepper, they’re still in need of help. “All these businesses live on a knife’s edge already because of the closed loop system,” said Pepper. “There’s no outlet. There is no pressure-release valve in the cannabis industry. And so … when something bad like this happens, it can ripple through the entire industry.”

“It’s a very interdependent relationship,” said Andrews. “When one of us goes down, it hurts everyone.”

Unlike other agricultural products grown in Vermont, cannabis growers are still learning how to assess damage in the wake of destruction. “We don’t consider cannabis an agricultural product, but it’s a seed and it’s a crop that grows in the ground,” Pepper added. “So we can use some of the best practices from the Agency of Agriculture to help deal with this issue in cannabis.”

Cannabis growing farms will need to test for wastewater contamination, and will have to keep an eye on their crops for water-related issues such as bud rot.

Vermont Growers Association co-founder and executive director, Geoffrey Pizzutillo has been working to distribute assessment forms for cannabis businesses to understand what kind of damage was experienced across the state. “It’s too early to tell,” Pizzutillo said. “But we want to drive home that it is the entire supply chain. Every license type is being impacted—not just the outdoor farmers, but retailers and manufacturers as well.”

U.S. Secretary of Transportation Pete Buttigieg visited Vermont once the floods subsided, likening the scene to the devastation left in the wake of Hurricane Irene in 2011. “You see just how urgent it is to make sure these communities get the help that they need,” Buttigieg said as he visited members of the community. “…Our message is to communities big and small: The federal government is here to help provide resources that are needed.”

While Vermont cannabis businesses won’t be benefitting from federal aid, Pizzutillo and others are hoping to prepare an accurate depiction of the damage so that businesses can at least qualify for emergency state funding—something that can be approved in a special legislative session. “I think the best thing that we can do at the Cannabis Board is collect the data and present it to the Legislature,” said Pepper. “And then we’ll see if there is a political will to help the businesses that are very severely hurt by this.”

Vermont’s recreational cannabis law was signed by Gov. Scott in October 2020, but sales didn’t begin until two years later. The state collected $2.6 million in just three months after recreational cannabis sales launched, and hit $24 million by May 2023.

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Heady Vermont reports that sales that month amounted to $6,477,957, which also represented a “a slight uptick in rate of sales growth, around 6.9% from January to February.”

The outlet has more details on the figures from February:

“The state’s mandatory 14% cannabis excise tax, which must be applied to all adult use cannabis purchases at retailers, brought in $906,914 in February. An additional 6% state sales tax, which must also be leveraged on cannabis products, generated another $388,677. To date, cannabis retailers in Vermont have sold $24,404,171 worth of cannabis products and collected $3,416,584 in excise tax since the state’s adult use market saw a modest launch last fall, with just three Vermont dispensaries licensed and open on October 1. Since October, that number has increased to nearly 50 retail establishments, with 52 Vermont dispensaries currently approved for licensure as of last week’s monthly meeting.”

Vermont’s adult-use cannabis market launched in October of last year after lawmakers in the state passed a law in 2020 establishing regulations for legal weed sales.

The state had essentially legalized recreational cannabis in 2018 when lawmakers ended the ban on personal possession and cultivation, but that measure failed to establish the framework for a market. 

The state’s Republican governor, Phil Scott, signed both of those bills.

“This new bill requires cities and towns to authorize these businesses before retail establishments may open. It ensures local zoning applies to cannabis cultivation and production. It dedicates 30% of the excise tax, up to $10 million per year, to education and prevention efforts. And the sales and use tax on cannabis would fund a grant program to expand afterschool and summer learning programs,” Scott said after signing the 2020 legislation. “Additionally, the FY21 budget includes language I proposed to move toward a universal afterschool network, which is based on a successful model from Iceland and is focused on preventing drug use and improving academic and social outcomes.”

In his statement at the time, Scott also called on lawmakers to continue to improve the law.

“Their work is not done,” he added. “The Legislature needs to strengthen education and prevention – including banning marketing that appeals in any way to our kids – otherwise they are knowingly failing to learn the lessons of the public health epidemic caused by tobacco and alcohol.”

“This has been a top priority for the majority in the Legislature for four years, but their work is not complete. They must ensure equity in this new policy and prevent their priority from becoming a public health problem for current and future generations. For these reasons, I am allowing this bill to become law without my signature,” Scott continued.

After the first legal stores opened for business in the fall, the state said that the stores sold $2.6 million worth of cannabis products in October.

Lawmakers in Vermont have continued to push for reform of the state’s drug laws. In March, they introduced several different bills that would have legalized psychedelics such as mushrooms, among other drugs.

One of the bills introduced would decriminalize all drugs. 

The text of the measure reads: “This bill proposes to change the penalties for possession of a personal use supply of drugs from a misdemeanor or low-level felony to a civil offense subject to a $50.00 penalty. A person cited for such an offense may avoid paying the penalty by agreeing to participate in a screening for substance use disorder treatment and related services. The bill would also establish the Drug Use Standards Advisory Board for the purpose of determining the benchmark personal use dosage and the benchmark personal use supply for regulated drugs with a goal of preventing and reducing the criminalization of personal drug use. Individuals previously arrested for or convicted of possession of a regulated drug in an amount under the benchmark personal use supply amount would also be eligible for immediate sealing of criminal history records. Additionally, to prevent overdose, the bill would also authorize the operation of drug-checking programs to allow individuals to obtain analysis of a regulated drug previously obtained by an individual for purposes of determining the chemical composition of the substance and identifying chemical contaminants. The bill would establish a pilot project to support the development and operation of such programs.”

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Lawmakers in Vermont have introduced several bills aimed at making sweeping changes to the state’s drug laws. 

The website Psychedelic Spotlight has a primer on the four separate pieces of legislation that would “decriminalize simple possession of all drugs, expand harm reduction services, remove criminal penalties for using and selling psilocybin and decriminalize certain psychedelic plants and fungi.”

In the case of bill H.423, lawmakers are seeking a monumental reform. The measure, which has a companion bill in the Vermont state Senate, would decriminalize all drugs.

The text of the bill reads: “This bill proposes to change the penalties for possession of a personal use supply of drugs from a misdemeanor or low-level felony to a civil offense subject to a $50.00 penalty. A person cited for such an offense may avoid paying the penalty by agreeing to participate in a screening for substance use disorder treatment and related services. The bill would also establish the Drug Use Standards Advisory Board for the purpose of determining the benchmark personal use dosage and the benchmark personal use supply for regulated drugs with a goal of preventing and reducing the criminalization of personal drug use. Individuals previously arrested for or convicted of possession of a regulated drug in an amount under the benchmark personal use supply amount would also be eligible for immediate sealing of criminal history records. Additionally, to prevent overdose, the bill would also authorize the operation of drug-checking programs to allow individuals to obtain analysis of a regulated drug previously obtained by an individual for purposes of determining the chemical composition of the substance and identifying chemical contaminants. The bill would establish a pilot project to support the development and operation of such programs.”

According to Psychedelic Spotlight, “nearly a third” of Vermont’s House of Representatives has sponsored that bill. 

Two other bills, one filed in the House and the other in the Senate, specifically address psilocybin mushrooms. 

The bill H.439, sponsored by a handful of House members, would “decriminalize some chemical compounds found in plants and fungi that are commonly used for medicinal, spiritual, religious, or entheogenic purposes.” 

S.114, introduced in the state Senate, would go even further. That measure would remove “criminal penalties for possessing, dispensing, or selling psilocybin,” while also establishing the Psychedelic Therapy Advisory Working Group.

The group would “examine the use of psychedelics to improve physical and mental health and to make recommendations regarding the establishment of a State program similar to Connecticut, Colorado, or Oregon to permit health care providers to administer psychedelics in a therapeutic setting,” according to the text of the legislation.

As that bill referenced, other states have already changed their laws around psychedelic substances such as mushrooms––and more are sure to follow. 

Earlier this month, lawmakers in Nevada introduced a bill that would open the door for research into psilocybin and MDMA.

Specifically, that measure would set up “procedures for a research facility to obtain the approval of the Department of Health and Human Services to conduct certain studies involving certain controlled substances; decriminalizing certain conduct by persons who are 18 years of age or older involving psilocybin and MDMA if conducted in connection with and within the scope of an approved study; decriminalizing certain conduct by persons who are 18 years of age or older involving 4 ounces or less of fungi that produces psilocybin or psilocin; and providing other matters properly relating thereto.”

But advocates in Vermont may want to temper their expectations. As Psychedelic Spotlight noted, the state’s Republican governor, Phil Scott, “famously vetoed two more restrained drug policy reforms last year, so who knows what he’ll do with this month’s proposals.”

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