Vermont cannabis stakeholders press lawmakers for equity funding, direct sales and event permits

Vermont cannabis industry leaders, social‑equity advocates and educators told the House Committee on Government Operations & Military Affairs on Wednesday that state policy changes are needed to make the legal market viable for small producers, repair harms from past enforcement, and unlock tourism opportunities.

The coalition of groups urged the committee to consider directing a portion of cannabis excise revenue to community reinvestment, creating pathways for direct sales by small cultivators, reforming advertising rules they say impose high compliance costs, and authorizing temporary event or catering permits to allow legal public consumption at controlled venues.

Why it matters: Committee members heard requests that would shift how cannabis tax revenue is used, alter market access rules for small growers and change public‑consumption policy. Supporters said those changes would help small farms survive, advance racial and economic equity, and capture tourism dollars; the committee did not take any formal actions during the session.

Stakeholders and funding proposals

Jean Hamilton, director of program development for the Land Access and Opportunity Board, told the committee the board and the Cannabis Control Board’s social equity working group recommended dedicating 25% of the state cannabis excise tax to community reinvestment activities. Hamilton said the board’s projection equates that share to a $5,600,000 investment and described plans to target most of the money to direct investments that help Vermonters buy homes and access farmland.

“The recommendation…is that 25% of the excise tax be invested into community reinvestment activities, to create the economic conditions so that people…can participate equitably in this economy,” Hamilton said.

Market structure, small producers and direct sales

Jeffrey Cassello, executive director and co‑founder of the Vermont Growers Association, said the state’s regulated adult‑use market has about 600 active licensees and that, while overall tax performance is strong, the market is “a mixed bag” for small firms. He said the excise tax surpassed alcohol excise receipts in April 2023 but that market structure and statutory design favor larger operators.

“We need to address…market structural issues,” Cassello said, adding that solutions the coalition will press include forms of direct sales that would allow small producers better routes to market.

Educational and workforce pipeline

A representative of Vermont State University’s cannabis program described steady growth in education and workforce placement. The witness said roughly 60 students have earned a 12‑credit cannabis studies certificate since the program began and that more than 100 students have been placed in the cannabis workforce. The university is developing additional courses, including compliance training, and working on an articulation agreement with Vermont Law and Graduate School.

Advertising and regulatory burdens

Timothy (first name given), a Vermont State University instructor and outreach participant, and other industry witnesses argued that current advertising and consumer‑information rules impose time and cost burdens on small businesses and reduce their competitiveness with neighboring states. They asked lawmakers to consider changes that would reduce redundant review processes and packaging burdens that seem, they said, to add cost without improving consumer information.

Event permits and public consumption

Several witnesses, including Eli Harrington, founder of the Vermont Cannabis Convention, urged creation of a state permit for temporary cannabis events or a “cannabis catering” permit modeled on alcohol‑event permits. Harrington outlined permit elements he said would mitigate risks: defined hours, ID checks at controlled entrances, trained servers, limited and tracked inventory and town‑level approvals. He suggested a modest permit fee (he recommended under $500) and noted that insurance requirements could make event hosting costly for businesses.

“Legally purchase cannabis everywhere, legally consume cannabis nowhere,” Harrington said, summarizing the current legal gap. He added that event permits would allow venues, ski areas and festivals to offer controlled consumption while protecting employees and ensuring products are regulated and sold by licensed retailers.

Equity, enforcement and safety concerns

Mark Hughes, appearing remotely as a representative of the Vermont Cannabis Equity Coalition and the Vermont Racial Justice Alliance, described the coalition’s vision for “a racially just, economically equitable, agriculturally accessible and environmentally sound” market. Hughes also told the committee he has limited in‑person participation at the State House after an encounter with law enforcement staff in a public cafeteria left him feeling unsafe; he said he had raised the matter with legislative leadership.

“No one from our communities should feel unsafe doing the work of the people in this building,” Hughes said.

Small‑business relief and emergency aid

Cassello described a Vermont Growers Association grant program that awarded funds to 11 licensees last year, totaling roughly $30,000, which the association presented as emergency relief for small operators who cannot access many federal disaster programs.

Tourism and economic impact

Timothy, citing a Vermont Department of Tourism and Marketing report mentioned in his remarks, said visitors spent a record $4,000,000,000 in 2023 and that researchers found about 15,800,000 visitors that year; the witness said visitor spending supported roughly 31,053 jobs. He and others argued that event permits and clearer consumption policy could help Vermont capture more tourism spending and encourage business and resident relocation.

What the committee did (and did not) do

There were no formal motions or votes recorded during the hourlong presentation and discussion. Committee members said they will digest the proposals and that Representative Boyden (committee point of contact for cannabis policy work, referenced by the chair) will work with the chair on drafting legislation. The chair noted conversations with the governor’s office about shared priorities but gave no timeline for formal bills.

Notes and next steps

Speakers said they will return with legislation and more granular proposals, including detailed budget breakdowns for the land‑access funding request and draft language for event permits and advertising changes. The Land Access and Opportunity Board and Cannabis Control Board were named as partners in forthcoming proposals; the committee indicated it expects to consider those legislative ideas as bills are drafted.

Ending

Committee members thanked the groups for coming and paused the session to continue later. No formal action or referral was taken at the Jan. 29 meeting.