Cannabis Control Board weighs new regulation on retail establishment locations

Concerns over cannabis retail concentration dominated the Vermont Senate Economic Development meeting on April 16, 2025, as lawmakers discussed new regulations aimed at balancing local control and market dynamics. The meeting highlighted the challenges faced by municipalities that opted into cannabis sales, particularly regarding the overconcentration of establishments in certain areas, such as Burlington.

A significant point of discussion was the introduction of a new setback rule for outdoor cannabis cultivation, which aims to evaluate its impact on property lines. Lawmakers also debated how to allocate cannabis excise tax revenue, with suggestions to support both the cannabis industry and broader community reinvestment for those affected by past cannabis prohibition.

The meeting revealed frustrations among local officials who feel their hands are tied by state regulations. Currently, local legislative bodies can only apply the same zoning standards to cannabis retailers as they do to other businesses, limiting their ability to create specific cannabis ordinances. This has led to confusion and dissatisfaction, as local control commissions have been established but lack meaningful authority.

In response to these issues, the Cannabis Control Board (CCB) has been granted new rulemaking authority to address the geographic distribution of cannabis retail establishments. The board is now tasked with considering regional population needs and community input in its decision-making process. However, the anticipated rulemaking will take approximately 18 months, effectively pausing any new retail licenses during this period.

The discussions underscored the delicate balance Vermont lawmakers are trying to strike between fostering a competitive cannabis market and ensuring that local communities have a say in how cannabis businesses operate within their borders. As the CCB prepares to draft new regulations, stakeholders are left to navigate the complexities of a rapidly evolving cannabis landscape.