Committee advances amendment to let governor enter regional cannabis compact, sets safeguards

The Economic Development, Housing & General Affairs committee advanced a committee amendment intended to let the governor enter into agreements with other states to allow licensed cannabis businesses to operate across state lines, the chair said.

The amendment, described to the committee as draft 1.1 of Senator Clarkson’s proposal, would add a new section (27A) authorizing the governor to negotiate agreements with ‘‘contracting states’’ whose regulatory models ‘‘are the same or substantially similar’’ to Vermont’s. Tucker, who presented the draft, told members the measure is designed to prepare Vermont in case federal policy changes allow interstate cannabis commerce.

Tucker summarized core provisions: definitions for ‘‘foreign license’’ and ‘‘Vermont license,’’ a requirement that contracting states meet or exceed Vermont’s public-health, testing, packaging and labeling standards, seed-to-sale tracking participation, and restrictions on marketing and advertising. He said the draft follows language used in other states with a few Vermont-specific modifications and includes requirements for cooperative investigation and enforcement between states.

The amendment sets four possible federal “trigger” conditions before an agreement could take effect: a change in federal law permitting interstate transfers; a federal funding prohibition on enforcement actions that would block transfers; a Department of Justice memorandum tolerating interstate transfers; or a written opinion by the state attorney general that implementation would not impose significant legal risk. Tucker warned members to monitor potential ‘‘unconstitutional conditions’’—situations where state conditions on out-of-state licensees could infringe constitutional protections.

Gabe Y, identified in the record as general counsel to the Cannabis Control Board, told the committee the board supports positioning the state prudently. ‘‘It strikes us as an effort to position the state as nimly as possible to address whatever happens next,’’ Gabe said, adding that the draft is ‘‘well-considered’’ and closely tracks templates used elsewhere. He recommended care around advertising restrictions and said the CCB would work through implementation details.

The draft would require the governor to submit any proposed agreement to the Cannabis Control Board and the Joint Fiscal Committee for 60 days of review and to post proposed agreements online for public comment. It also gives the CCB discretionary authority to adopt emergency rules related to provisional admission of out-of-state license-holders; emergency rules in the draft would be effective for one year and the board must report to this committee and the House Government Operations and Military Affairs committee within 90 days with rule recommendations.

Chair members signaled no objections to making the draft a committee amendment. ‘‘No objections. Plan on moving this forward,’’ the Chair said, and asked staff to draft an intent section and a simple flowchart showing the roles of the governor, the CCB and the legislature before the bill reaches the floor.

The committee emphasized the amendment is preparatory: it would not automatically permit interstate commerce until one of the specified federal or legal triggers occurs and state and board conditions are satisfied. The committee also requested a list of other states that have adopted similar language and asked staff to coordinate with the governor’s office before floor action.

What happens next: committee staff will draft the proposed intent language and flowchart requested by members, the CCB will prepare its review and any suggested rule text, and the committee expects to move the committee amendment toward the full chamber next week.