MONTPELIER, Vt. (WCAX) – The Vermont Cannabis Control Commission's decision to stop accepting new retail applications may signal the end of an era.
In just under two years, Vermont has issued more than 90 retail cannabis licenses. But now, Vermont's Cannabis Control Commission has the power to create rules that affect geographic distribution based on population.
“There was a concern that as we started to articulate a plan for retail stores, the retail saturation problem would get even worse,” said James Pepper, chairman of the Cannabis Regulatory Commission.
Therefore, we are not accepting new applications from retailers or Tier 2 cultivators. Pepper said the board is following Oregon's experience and resulting regulations. Without state intervention, cannabis growers and sellers could suffer, and other small business protections do not exist in the cannabis industry.
“You can’t get a bank loan to start a cannabis company. You can’t have a line of credit at the end of the month to make ends meet. You can’t get bankruptcy protection if you run out of money. You can’t afford exorbitant taxes. You have to pay. You can't deduct normal business expenses like you would if you were running any other business. And all of that adds up to a very challenging market.” said Pepper.
Not all retailers agree with this decision. Christopher Chabot received approval for his retail license Thursday, after years of waiting. “Overall, I think this decision will be negative,” he says.
He also said there is a trend of cannabis enthusiasts who didn't have the capital to open a retail store two years ago, but who eventually started growing and manufacturing so they could afford to vertically integrate like he did. Ta. He said the decision could shatter the dreams of many and lead to a black market for retailers and high consumer costs. “I think it's good to have more pharmacies and more competition,” he added.
Only two retailers have gone out of business since October 2022. With 10 applications still pending, dispensary dreamers are looking forward to the looming deadline.
Those wishing to apply for a retail license or a second-class cultivation license have until Nov. 15, when the Cannabis Control Commission will no longer accept new applications.
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