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Joint committee hears extensive testimony on S.278 as growers, retailers and health officials clash over potency, access and equity

Senate Committee on Economic Development, Housing & General Affairs (joint with House Government Operations & Military Affairs) · February 19, 2026
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Summary

A joint hearing on S.278 drew testimony from growers, retailers, the Land Access and Opportunity Board, health officials and patients over proposed changes to THC and package limits, purchase limits, excise tax, direct sales/delivery and a $5.6M LAOB appropriation, with sharp disagreements on public‑health and market impacts.

A joint session of the Senate Committee on Economic Development, Housing & General Affairs and the House Government Operations & Military Affairs spent a half day taking testimony on S.278, a broad bill that would change THC and package limits, add direct‑sales and delivery options, alter advertising rules, adjust the cannabis excise tax and direct funding to equity programs.

Supporters of the bill, including small producers and retailers, argued the changes are needed to stabilize Vermont’s nascent market and protect local growers from cross‑border competition. "The early rules determine who can remain viable long term in these markets," policy director Damien Fagan told the committee, urging limited direct sales and regulated events so small producers can build customer recognition before wholesale price competition concentrates supply. Retail owners said higher package and purchase limits would reduce cross‑border shopping and illicit purchases.

Nathan Davidson of the Vermont Department of Economic Development reported on the Cannabis Business Development…

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