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Senate advances cannabis-market bill with packaging, pilot permits and conditional interstate compact authority
Summary
The Senate advanced S.2.78—adjusting purchase and packaging limits, authorizing two pilot permit programs (events and delivery), expanding municipal opt‑in rules, and authorizing the governor to enter interstate compacts if federal law changes; the bill was ordered for third reading after floor amendments.
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Senator Rahm Hinsdale, reporting for the Senate Committee on Economic Development, described S.2.78 on March 26 as a package of market and public‑health changes aimed at aligning Vermont’s regulated cannabis market with neighboring states while preserving safety guardrails.
The bill raises the per‑package THC cap from 100 mg to 200 mg and increases the personal purchase and possession limit from one ounce to two ounces; Hinsdale and committee members emphasized that these changes do not alter potency caps for individual product types. The measure also establishes two time‑limited pilot programs: an event-permit pilot (up to 20 events per year, with local approval and strict safety standards, and no co‑location with alcohol) and a delivery‑permit pilot (up to 15 permits targeted primarily at small cultivators and manufacturers, limited hours and trained staff, with no resale).
The bill strengthens municipal clarity by allowing towns to opt in by voter petition and to regulate time, place and manner of sales, while making clear towns may not fully prohibit voter‑approved businesses. It modernizes licensing rules, supports grower cooperatives, and expands access to the Cannabis Business Development Fund; the bill included a $1,000,000 appropriation to support organizations that help businesses comply with state rules.
Committee reports from Finance and Appropriations outlined small expected revenues from permit fees and noted certain appropriation language was amended on the floor. Senators debated eligibility limits for delivery permits (an amendment adopted restricted permits to tier 1/2 cultivators and manufacturers without retail licenses) and removed a study item about EV supply equipment from an unrelated report.
Senators also added a floor amendment authorizing the governor to enter interstate compact agreements enabling regulated interstate cannabis commerce, but only if specific federal changes occur (for example, federal authorization for interstate transfer or a written DOJ opinion permitting it) and contingent on a Vermont Attorney General opinion on legal risk. The Cannabis Control Board would have rulemaking authority for admission of licenses under any compact.
After further procedural amendments and committee confirmations, the Senate ordered S.2.78 for third reading; it had not been finally passed on March 26.

