Lawmakers hear cannabis market, tax and S.278 primer as regulators flag market and enforcement pressures

James Pepper, chair of the Cannabis Control Board, told the House Government Operations & Military Affairs committee that Vermont's regulated cannabis market has matured but faces structural pressures that affect licensing, prices and tax revenue.

"For the record, my name is James Pepper. I'm chair of the cannabis control board," Pepper said, and walked the committee through slides on license counts, market geography and regulatory requirements.

Pepper said the state briefly saw a spike in license applications in April 2025 when the board stopped issuing some new cultivation and retail licenses, and that cultivators now make up more than half of active licensees. He pointed to retail density in Burlington and Morrisville as an expected outcome of Act 164's default opt‑out rule, which requires an affirmative local vote to allow retail stores.

On regulatory controls,…