An act relating to cannabis
Sponsored By: Kesha K Ram Hinsdale (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
12 provisions identified: 4 benefits, 4 costs, 4 mixed.
Outdoor cannabis growers pay lower fees
Beginning July 1, 2027, annual outdoor cannabis growing fees fall for tiers 1 through 5. Tier 1 falls from $750 to $375 for up to 1,000 square feet of canopy or fewer than 125 plants. Tier 2 falls from $1,875 to $925 for up to 2,500 square feet; tier 3 falls from $4,000 to $2,000 for up to 5,000. Tier 4 falls from $8,000 to $4,000 for up to 10,000 square feet; tier 5 falls from $18,000 to $9,000 for up to 20,000. The law also removes the $34,000 tier 6 fee for up to 37,500 square feet.
Cannabis businesses lose bundled license option
Beginning July 1, 2026, Vermont ends the integrated cannabis license, which bundled several business activities. Businesses lose that license option, including the special pathway for qualifying dispensary-affiliated applicants. Its $100,000 annual fee also ends. The remaining framework has six separate license types rather than seven.
Adults can possess and buy more cannabis
Beginning July 1, 2026, adults 21 or older can possess up to two ounces of cannabis without state penalties. Protection also covers up to 10 grams of hashish, two mature plants, and four immature plants. Cannabis lawfully grown, harvested, and stored under Vermont’s home-growing law does not count toward the possession limits. Adults can buy two ounces, or equivalent cannabis products, per transaction instead of one ounce; retailers must check government photo ID. The higher possession offense starts above two ounces, and eligible first offenders get diversion unless the prosecutor explains an objection on the record.
Outdoor cannabis growers gain tax breaks
Beginning July 1, 2026, licensed outdoor cannabis growers can enroll their cannabis cultivation land in Vermont’s Use Value Appraisal Program. That program values qualifying agricultural property based on its use. These growers also gain Vermont retail sales-tax exemptions on qualifying purchases. Cannabis Control Board rules define outdoor growing; the law does not state a savings amount.
Renters gain cannabis possession protections
Beginning July 1, 2026, Vermont leases cannot ban tenants from possessing cannabis or cannabis products on the rental premises. They also cannot ban use inside the dwelling. Landlords can still ban lighted cannabis and products intended for inhalation. These protections do not apply when federal law requires the lease to ban cannabis possession or use.
Cannabis event sellers face tax duties
Cannabis event permit holders making taxable sales must collect and remit cannabis excise tax. Before selling, they need a cannabis retail tax license for each Vermont place of business. The license is free when the application is complete and the seller complies with the law. Monthly returns are due by the 25th of the following month, and tax records must be kept at least three years. These duties do not change the tax rate or the amount buyers owe.
Cannabis penalties gain court collection route
The Cannabis Control Board can collect a final administrative penalty through a civil action in any Vermont Superior Court. This gives the Board another way to collect an existing penalty. It does not create a new penalty or set a new penalty amount.
Hemp and medical cannabis exception ends
Beginning July 1, 2026, Vermont removes an exception for hemp and therapeutic cannabis use from its cannabis establishment law. The repeal removes that express legal exclusion. This provision does not identify the replacement requirements for hemp businesses or therapeutic cannabis activity.
Towns receive cannabis fees less often
The Cannabis Control Board pays local cannabis license fees to towns annually instead of quarterly. It deducts administrative and collection costs first. Fee amounts do not change, but towns receive the revenue less often.
Cannabis businesses get longer license terms
Beginning July 1, 2027, cannabis establishments pay $100 per employee for a two-year license instead of $50 each year. The annual cost stays the same, but businesses pay more at once and renew less often. The Board can also register products longer than one year when it finds them low-risk and shelf-stable. Product registration fees are prorated at the same yearly cost, not discounted.
Retailers gain limited cannabis event sales
The Cannabis Control Board can issue up to 10 event permits statewide each year to licensed retailers in good standing. Each covers one access-controlled event lasting up to 24 hours in a town that allows cannabis retailers. Applicants need written local approval, security arrangements, a sales plan, insurance, and a $500 application fee. Half the fee goes to the host town and half to the Cannabis Regulation Fund. Only registered adult-use products can be sold; cannabis consumption and alcohol sold or furnished for on-site drinking are prohibited. Store and event sales cannot happen together unless the locations are adjoining. Permit procedures are due July 1, 2027, a pilot report is due November 15, 2027, and the permit law ends July 1, 2028.
Cannabis businesses get conditional interstate pathway
Beginning July 1, 2026, the Governor can make agreements allowing licensed medical or commercial cannabis trade with other states. Agreements require Board and Joint Fiscal Committee review, public comment, and safeguards at least as strong as Vermont’s. Safeguards cover health, tracking, testing, packaging, marketing, taxes, emergency response, investigations, and social equity. Transport must use authorized routes and cannot pass through jurisdictions that prohibit it. Agreements take effect only after federal law permits transfers, Congress bars spending to prevent them, the Justice Department allows or tolerates them, or Vermont’s Attorney General finds no significant legal risk in writing. Out-of-state licensees still need a Vermont license and proper local authorization to do commercial cannabis business within Vermont.
Sponsors & Cosponsors
Sponsor
Kesha K Ram Hinsdale
Democratic • Senate
Cosponsors
Alison Clarkson
Democratic • Senate
Martine Larocque L Gulick
Democratic • Senate
Rebecca "Becca" E White
Democratic • Senate
Richard A Westman
Republican • Senate
Tanya C Vyhovsky
Democrat/Progressive • Senate
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
Senate Message: Signed by Governor June 18, 2026
5/29/2026SenateSigned by Governor on June 18, 2026
5/29/2026SenateDelivered to Governor on June 12, 2026
5/29/2026SenateSenate Message: House proposal of amendment concurred in
5/28/2026SenateRules suspended & messaged to House forthwith, on motion of Senator Baruth
5/28/2026SenateAs passed by Senate and House
5/28/2026SenateHouse proposal of amendment concurred in
5/28/2026SenateHouse proposal of amendment; text
5/28/2026SenateRules suspended & taken up for immediate consideration, on motion of Senator Baruth
5/28/2026SenateHouse proposal of amendment
5/28/2026SenateEntered on Notice Calendar
5/28/2026SenateHouse message: House passed bill in concurrence with proposal(s) of amendment
5/27/2026HouseRules suspended and bill messaged forthwith to the Senate as moved by Rep. McCoy of Poultney
5/27/2026HouseRead third time and passed in concurrence with proposal of amendment
5/27/2026HouseRules suspended and bill placed in all remaining stages of passage as moved by Rep. McCoy of Poultney
5/27/2026HouseThird Reading ordered
5/27/2026HouseReport of Committee on Government Operations and Military Affairs, as amended, agreed to
5/27/2026HouseRep. Tagliavia of Corinth and Boyden of Cambridge moved to amend the report of the Committee on Government Operations and Military Affairs, as amended, which was agreed to
5/27/2026HouseRep. Nugent of South Burlington moved to amend the report of the Committee on Government Operations and Military Affairs, as amended, which was agreed to
5/27/2026HouseRep. Birong of Vergennes moved to amend the report of the Committee on Government Operations and Military Affairs, which was agreed to
5/27/2026HouseRep. Nigro of Bennington recommended for the Committee on Appropriations
5/27/2026HouseRep. Waszazak of Barre City recommended for the Committee on Ways and Means
5/27/2026HouseRep. Boyden of Cambridge reported for the Committee on Government Operations and Military Affairs
5/27/2026HouseRead second time
5/27/2026HouseAction Calendar: Unfinished Business
5/27/2026House
Bill Text
As Enacted (ACT 176)Opens in a new window
6/22/2026
As Passed by Both Chambers
6/10/2026
House Proposal of Amendment
6/10/2026
House Proposal of Amendment (Unofficial)
6/10/2026
As Passed by Both Chambers (Unofficial)
6/8/2026
As Passed by the Senate
4/1/2026
As Passed by the Senate (Unofficial)
4/1/2026
As Introduced
1/20/2026
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