Immature cannabis plants grow under LED lights in one of Devon Dale's large lorry indoor grow rooms in Peacham on March 27, 2023. File photo: Glenn Russell/VTDigger
The state commission that regulates Vermont's cannabis industry voted Wednesday to temporarily suspend applications for new retail licenses, citing an oversaturated market in some cities and towns. This measure was taken amid growing concerns.
The decision, scheduled to go into effect on Oct. 25, will be the first time the Cannabis Control Commission has halted new retail applications since the first retail operations opened in October 2022. Committee members said at Wednesday's meeting that they plan to reopen the application. As for the future, no specific date has been decided.
The board also voted Wednesday to temporarily suspend applications for certain types of cannabis cultivation licenses. These licenses dictate how much cannabis product someone can grow and whether it can be grown indoors, outdoors, or both.
The new limit affects people looking to grow 2,500 square feet or less of plant coverage. Regulators had previously stopped issuing new licenses to prospective larger cultivators.
The commission did not make any changes to the minimum tier for cultivation licenses, which require cultivation of 1,000 square feet or less of plant coverage indoors or outdoors.
Cannabis Control Commission Chairman James Pepper said in an interview Thursday that the decision to suspend retail licenses comes as Vermont's more than 80 existing retail stores are “very unevenly distributed” in the state. He said that this was a response to the current situation.
That's largely because, under state law, recreational sales are only allowed in a city or town if that community votes to allow it. (About 30% of communities in the state have voted to do so, according to the data.) The result is a situation similar to the city of Burlington, board members said Wednesday. While the city of Burlington has more than 10 active retailers, neighboring South Burlington does not. There's nothing there because the city doesn't allow it.
This year, Congress passed Act 166, which requires the Cannabis Control Commission to develop new rules to improve the geographic distribution of cannabis retailers “based on population and market needs.” It is listed.
But board members say that if they start writing rules that would discourage new retail stores from opening in already crowded markets like Burlington, many who try to set up shop there before the rules are finalized. He said he was concerned that the number could increase further.
“And that would exacerbate the problem that Congress asked us to intervene in,” Pepper said at Wednesday's meeting.
Instead, another board member, Kyle Harris, said during the meeting, “We need to take a step back and look at the market and how we can improve it from the inside out.”
Another member, Julie Halberd, added, “We didn't do that in the first place,” noting that the moratorium would help free up some of the board's resources.
New retail applications will no longer be accepted next month, but prospective retailers who were already in the process of obtaining a license from the commission will have less time to get their plans approved. .
The board decided to approve applications already in preparation for approximately three weeks after the Oct. 25 deadline. Pepper said there are currently 21 retailers across the state in various stages of the application process.
Several people who attended Wednesday's meeting said they were concerned about the new deadline because they too are in the licensing process.
Mark Fryer, who said he has already received pre-approval for a license, told the board that the cannabis business is “five days away from breaking ground, so that's why I'm just concerned.”
Olga Fitch, the board's executive director, said during the meeting that she believes the shortened schedule is reasonable for many current applicants.
“As long as people are aware of our timeline and are willing to work with the licensing team and keep their ducks in a row, so to speak, we should be able to make good progress,” Fitch said. .
