Vermont Cannabis License Update

This article was originally featured on the CB Advisors blog here.

Seven more applicants were approved for recreational cannabis licenses this week as Vermont prepares for the start of retail sales to adults in October. All seven of the applicants were social equity or economic empowerment applicants.

“The board is required to consider license applications from social equity or economic empowerment applicants first. Once it has ruled on those applicants, the next group will be applicants who plan to grow plants outdoors this summer,” said James Pepper, the chair of the board.

Vermont legalized medical cannabis in 2004, and recreational cannabis in 2018. In 2019, the state established a system to tax and regulate the production and sale of marijuana through licensed recreational cannabis businesses.

Vermont Cannabis Business License Types

There are six types of licenses available in Vermont:

Cultivation

A cultivator licensed under this chapter may cultivate, process, package, label, transport, test, and sell cannabis to a licensed wholesaler, product manufacturer, retailer, integrated licensee, and dispensary. Cultivator licenses are based on the plant canopy size of the cultivation operation or plant count for breeding stock and retail licenses. Cultivation of cannabis shall occur only in an enclosed, locked facility.

Small Cultivator – A cultivator with a plant canopy or space for cultivating plants for breeding stock of not more than 1,000 square feet; however, it does not apply to hemp or therapeutic use of cannabis. The application for small cultivator licenses shall be prioritized over larger cultivation licenses during the initial application period.

Manufacturing

A product manufacturer licensed may purchase cannabis from a licensed cultivator, wholesalers, or integrated licensee, and cannabis products from a licensed wholesaler, product manufacturer, integrated licensee, and dispensary; use cannabis and cannabis products to produce cannabis products; and transport, process, package, and sell cannabis products to a licensed wholesaler, product manufacturer, retailer, integrated licensee, and dispensary.

Retail

A retailer licensed may purchase cannabis from a licensed cultivator, wholesaler, or integrated licensee, and cannabis products from a licensed wholesaler, product manufacturer, integrated licensee, and dispensary; and transport, possess and sell cannabis and cannabis products to the public for consumption off the registered premises. A retailer may provide one ounce of cannabis or the equivalent in cannabis products, or a combination thereof, to a person 21 in one transaction.

The Department of Public Safety has currently issued five medical retail licenses.

Applications for a sixth dispensary will be announced when the number of registered patients reaches 7,000.

Wholesale

A wholesaler license allows for purchase cannabis from a licensed cultivator and integrated licensee, and cannabis products from a licensed product manufacturer, integrated licensee, and dispensary; and transport, process, package, and sell cannabis and cannabis products to a licensed product manufacturer, retailer, integrated licensee, and dispensary.

Testing Laboratory

A testing laboratory licensed may acquire, possess, analyze, test, and transport cannabis and cannabis products obtained from a licensed cannabis establishment, dispensary, or a member of the public. Testing may address residual solvents, poisons or toxins, harmful chemicals, dangerous molds, mildew, or filth, harmful microbials, such as E. coli or salmonella, pesticides, and tetrahydrocannabinol and cannabidiol potency.

Integrated

An integrated license shall allow the licensee to engage in the activities of a cultivator, wholesaler, product manufacturer, retailer, and testing laboratory. An integrated licensee may not hold a separate cultivator, wholesaler, product manufacturer, retailer, or testing laboratory license. An integrated license shall permit only one location for each of the types of activities permitted by the license: cultivation, wholesale operations, product manufacturing, retail sales, and testing.

An integrated license is only available to an applicant and its affiliates that hold a dispensary registration on April 1, 2022. There shall be no more than five total integrated licenses, one for each registered dispensary.

How Can Sapphire Risk Help?

Tony Gallo and the team at Sapphire Risk Advisory Group have experience working with cannabis consultants like RDC to secure cannabis business licenses in Vermont. Follow us on social media to stay up to date with the latest Vermont cannabis industry news!