House committee advances S.278 markup, backs packaging and possession increases and narrows event pilot

House Government Operations & Military Affairs held a section‑by‑section markup of S.278 on May 12, advancing multiple changes to the state’s regulated cannabis framework.

For the record, Tucker Anderson, Legislative Council, told the committee members they had the Senate‑passed text before them and summarized early provisions, including an amendment to 7 VSA §881 that would increase per‑package THC limits from 100 milligrams to 200 milligrams. Anderson noted that the statutory change also delegates rulemaking to the Cannabis Control Board, meaning there will be a delay before the higher limit reaches the marketplace.

Members also approved identical increases in the bill’s transaction and possession sections, raising single‑transaction and possession limits from one ounce to two ounces and adjusting hash‑equivalents. Several legislators expressed health and safety concerns about larger possession thresholds, while others said the change aligns Vermont with neighboring states and helps local retailers remain competitive.

The committee debated a two‑year pilot program authorizing event permits and initially framed in the Senate as up to 20 permits annually (10 public, 10 private). After extended discussion about training, security, and data collection, the committee settled on a compromise of five public and five private permits for the pilot.

Committee members also voted to remove a separate two‑year delivery‑permit pilot from the bill, citing enforcement, rural access and resource concerns. Chair and committee staff said striking the delivery pilot will require conforming edits to related tax and rule sections.

Other provisions moved forward included a reduction of outdoor cultivator fees in Section 10A and a set of technical changes to licensing structure, grant eligibility and fee distribution language. The committee flagged fees, tax and appropriation changes for Ways and Means review.

The session included extended discussion of local government authority, nuisance ordinances and how municipal licensing conditions should interact with state licenses. Members requested clearer drafting on several points and left Section 11 for further consideration. The committee adjourned and said it will reconvene to finalize drafting and reconcile conforming changes.

James Pepper, chair of the Cannabis Control Board, addressed security standards and confirmed the board retains discretion to set license‑type security rules. "We have very robust rules on that and they’re license‑specific," Pepper said, adding the board has already adjusted outdoor security requirements over time.

The bill will proceed with the committee’s agreed changes and return for additional drafting and votes as needed.