An act relating to cannabis

Personal possession limit increased from one ounce of cannabis and five grams of hashish to two ounces of cannabis and ten grams of hashish. Retail transaction limit also doubled from one ounce to two ounces.

Outdoor cannabis cultivators made eligible for the Use Value Appraisal Program and exempt from retail sales tax under specific statutory provisions, reducing their property tax burden.

THC concentration cap for concentrate products raised from 60% to 70%. The 30% THC cap on cannabis flower was removed entirely. Per-package THC limit increased from 100mg to 110mg.

Event permits now explicitly prohibit cannabis consumption at events (previously allowed). Maximum of 10 permits per year statewide. Events restricted to municipalities that voted affirmatively for cannabis retail. No events at locations selling alcohol on-premises. Fee increased from $250 to $500.

Employee identification cards changed from annual to biennial (two-year) validity. Fee doubled from $50 to $100 per employee per two years. Local license fee distribution to municipalities changed from quarterly to annual.

Added youth protection rules requiring child-resistant packaging and labels clearly indicating cannabis content that should be kept away from persons under 21.

Delivery permits, on-premises consumption permits, and event administrator endorsements were all removed from the bill. These previously allowed cannabis delivery to customers, on-site consumption at retail locations, and multi-event hosting authority respectively.

All integrated license provisions repealed, including the definition, rules, license type limits, and the $100,000 annual fee. Integrated licensees can no longer hold a single license covering cultivation, wholesale, manufacturing, retail, and testing at one location.

New Commercial Cannabis Compact provisions authorize the Governor to form agreements with other states that have commercial cannabis markets, citing shifting federal posture including Executive Order 14370.

Municipal authority restructured: instead of requiring municipalities that had not voted to hold a vote at the 2026 general election, the bill now requires affirmative municipal permission (majority vote by Australian ballot) before any cannabis retailer or integrated licensee can operate. Rescission does not apply to establishments already operating at the time of the vote.

New provision allows licensed cannabis cultivators to form cooperative corporations under existing agricultural cooperative law.

Outdoor cultivator licensing fees halved for tiers 1 through 5 (e.g., tier 1 dropped from $750 to $375, tier 5 from $18,000 to $9,000). Tier 6 unchanged at $34,000. The $1,000,000 General Fund appropriation to the Cannabis Business Development Fund and the $5,600,000 appropriation to the Vermont Land Access and Opportunity Board were removed.

Cannabis excise tax reduced from 14% to 10% of retail sales price.

Employee identification cards changed from annual to biennial (two-year) validity. Fee doubled from $50 to $100 per employee per two years. Local license fee distribution to municipalities changed from quarterly to annual.

Cannabis Business Development Fund: removed the one-time $50,000 contribution per integrated license (since integrated licenses are repealed). Removed the $1,000,000 General Fund appropriation for fiscal year 2027.

Advertising rules relaxed: removed the requirement to submit advertisements to the Board before dissemination, raised the under-21 audience threshold from 15% to 30%, and removed prohibitions on stating THC content or comparing THC levels in ads.

Added tax record confidentiality provision allowing the Commissioner of Taxes to disclose returns to the Cannabis Control Board for administering the cannabis excise tax and sales and use tax.

Added provision allowing small cultivators to sell cannabis to dispensaries at any time, including before retail sales are permitted for licensed retailers.

Retail transaction limit doubled from one ounce to two ounces of cannabis per transaction.

Legal possession limit for adults increased from one ounce to two ounces of cannabis, and hashish possession limit increased from five grams to 10 grams.

Delivery permits expanded from being limited to tier 1 and tier 2 cultivators and manufacturers (capped at 15 annually, $100 fee) to any licensed cannabis establishment ($500 fee, no stated cap).

The on-premises consumption permit section was deleted from the enacted version.

Municipal authority over cannabis establishments changed from a local control commission licensing model to a requirement that municipalities affirmatively permit operation by majority Australian ballot vote, with votes remaining in effect until rescinded.

Several integrated license provisions were repealed, including specific rules concerning integrated licensees and related licensing restrictions.

The 30 percent THC concentration cap on cannabis flower was eliminated entirely.

THC concentration limit for solid and liquid concentrate products increased from 60 percent to 70 percent.

Event permits now prohibit consumption of cannabis at events (Senate version allowed consumption). The cap was also reduced from 20 total permits (10 public, 10 private) to 10 public event permits only.

Advertising rules changed: the under-21 audience threshold for paid third-party ads increased from 15 percent to 30 percent, the prior submission requirement to the Board was removed, and new prohibitions were added on stating THC content or comparing THC levels in advertisements.

New packaging requirements added mandating child-resistant packaging and labels indicating contents contain cannabis and should be kept away from persons under 21.

Cannabis excise tax reduced from 14 percent to 10 percent of retail sales price.

Outdoor cultivator licensing fees were approximately halved across tiers 1 through 5 (e.g., tier 1 dropped from $750 to $375, tier 5 from $18,000 to $9,000).

Employee identification card fees changed from $50 annually to $100 biennially (two-year validity period).

Effective date structure changed: the enacted version sets a rulemaking deadline of July 1, 2027 for event permit rules and requires a Board report to legislative committees by November 15, 2027 assessing the program's viability.

The 30 percent THC concentration cap on cannabis flower was eliminated entirely (repealed), while the concentrate cap was raised from 60 percent to 70 percent. This allows higher-potency products to be cultivated and sold.

A new event administrator endorsement (Sec. 7) was added, allowing a cannabis establishment to host multiple events at a single approved location over time, with a $500 annual fee split between the host municipality and the Cannabis Regulation Fund.

A new on-premises consumption permit (Sec. 9) was added, authorizing retailers to sell cannabis for on-site consumption provided they can also serve meals, with a $1,000 annual fee and 12-month validity period.

Municipalities that have not previously held a vote on authorizing cannabis establishments are now required to put the question before voters at the 2026 general election.

The per-package THC limit for cannabis products was reduced from 200 milligrams to 110 milligrams, tightening packaging restrictions despite the removal of the flower concentration cap.

Advertising regulations were amended to eliminate the requirement that cannabis advertisements be submitted to the Cannabis Control Board for review prior to dissemination.

The hashish possession threshold for civil penalties was lowered from 10 grams to 5 grams, meaning possession of 5-10 grams of hashish now triggers a civil penalty rather than being within the legal limit for adults.

Delivery permits were expanded from being limited to tier 1 and tier 2 cultivators and manufacturers (who could not also hold a retailer license) to being available to any cannabis establishment licensed under the chapter. The annual cap of 15 permits was removed and the fee increased from $100 to $500.

Event permit application fees were reduced from $500 to $250, and the annual caps of 10 public events and 10 private events per year were removed in the official version.

The cannabis excise tax was reduced from 14 percent to 10 percent (per the statement of purpose).

$1,000,000 is appropriated from the General Fund to the Cannabis Business Development Fund, and the list of entities eligible for CBDF grants was expanded.

Per-package THC limit increased from 100mg to 200mg for cannabis products (up from the introduced version's 100mg).

Outdoor cultivator licensing fees halved across tiers 1-5: Tier 1 from $750 to $375, Tier 2 from $1,875 to $925, Tier 3 from $4,000 to $2,000, Tier 4 from $8,000 to $4,000, Tier 5 from $18,000 to $9,000. Tier 6 remains at $34,000.

Event permit application fee increased from $250 to $500, with 50 percent distributed to the host municipality and 50 percent deposited in the Cannabis Regulation Fund.

Employee licensing fee changed from annual $50 to biennial $100 (same per-year cost but two-year validity period).

Local license fee distribution to municipalities changed from quarterly to annual basis.

Delivery permits restricted to tier 1 and tier 2 cultivators and manufacturers that do NOT also hold a retailer license (introduced version allowed any licensed cannabis establishment). Annual cap set at 15 permits. Fee reduced from $500 to $100.

On-premises consumption permit (introduced as section 915 with $1,000 annual fee) was eliminated in the Senate-passed version.

Event administrator endorsement (introduced as section 913) was eliminated in the Senate-passed version.

Mandatory 2026 general election vote for municipalities that had not previously voted on cannabis (introduced as section 863a) was removed. Replaced with a voluntary model where municipalities may affirmatively permit cannabis by majority Australian ballot vote, triggered by legislative body proposal or petition of 5 percent of voters.

New explicit prohibition: municipalities shall not adopt ordinances or bylaws that completely prohibit the operation of cannabis establishments, nor regulate them in a manner that has the effect of complete prohibition.

Multiple integrated license provisions marked as repealed, including the definition of integrated licensee, rulemaking authority for integrated licensees, and the $100,000 annual integrated license fee.

New reporting requirement: Cannabis Control Board must submit a written report to legislative committees by November 15, 2027 assessing the event and delivery permit programs, including whether either statute should be repealed.