Vermont Governor Phil Scott signed a new cannabis bill into law on Wednesday, introducing several modest changes to the state's marijuana regulations. While the legislation, known as H.321, aims to fine-tune aspects of the legal cannabis industry, many small growers argue it doesn’t go far enough to address the serious challenges they’re facing.
The bill includes a series of regulatory updates that state officials say will help smooth out operations in an industry that has struggled with growing pains since adult-use cannabis sales began three years ago. Among its provisions, H.321 clarifies that police have the authority to confiscate illegally cultivated marijuana, mandates clearer labeling that includes harvest and packaging dates, and establishes a new license category specifically for trimmers.
The legislation also lays out what happens to a cannabis business in the event that an owner dies or files for bankruptcy — a necessary but relatively procedural update. However, for Vermont’s licensed cultivators, these changes do little to address the pressing issues of high regulatory costs, oversupply, and plummeting wholesale prices.
One of the most anticipated changes that did not make it into the final bill was the ability for small growers to sell directly to consumers. Advocates argue this would be a lifeline for cultivators who are being squeezed by falling prices and limited market access. A smaller-scale solution — a pilot program to allow growers to sell at special events — was proposed but ultimately removed during legislative negotiations.
Also absent were changes to the cannabis licensing fee structure. Many in the industry had called for reduced fees for small growers and increased costs for larger operations, arguing that the current system puts small-scale farmers at a disadvantage. Instead of reforming the fees directly, H.321 instructs the state’s Cannabis Control Board to study the issue and deliver a report.
Efforts to expand cannabis use rights also fell short. A proposal to allow marijuana consumption in any location where tobacco smoking is permitted was not included, despite support from many cannabis users who say the restriction is unfair.
The Vermont Cannabis Equity Coalition — an alliance of several advocacy groups — voiced disappointment, saying lawmakers ignored key feedback from industry stakeholders. However, Rep. Matt Birong (D-Vergennes), chair of the House Committee on Government Operations & Military Affairs, pushed back on that claim.
“We dedicated a significant amount of time listening to their concerns and vetting their policy requests,” Birong said. “Being ‘shut out’ and not getting what was requested are very different things.”
For now, Vermont growers will need to wait and see whether future legislation will bring the relief they say is essential for survival.-
