In a long-awaited move, the Vermont Legislature agreed to fully legalize marijuana, becoming the second state to do so through legislation after Illinois. The personal possession (up to one ounce) and cultivation of marijuana were legalized in Vermont in 2018, but retail sales were still illegal. The state Legislature remedied that by finally agreeing on S. 54, a bill that will finalize the legalization process in Vermont.
“I am really pleased that after having introduced some of the first cannabis legalization bills over 20 years ago, we are finally achieving a tax and regulate system with some of the strictest controls on corporate ownership and added protections and resources for youth prevention,” said Vermont’s Lieutenant-Governor David Zuckerman. “This comprehensive and forward-thinking bill addresses the historical harms of the war on drugs, which disproportionately affects communities of color, including here in Vermont.”
At the same time as S. 54 passed the Vermont Senate, its sister bill, S. 234, was approved as well. “That bill will automatically expunge the criminal records of over 10,000 people convicted of possessing two ounces or less of marijuana. The bill also decriminalizes possession of between one and two ounces of marijuana,” Zuckerman explained.
This is a resounding victory that comes at the end of a long, winding road to legalization. S. 54, which legalizes the sale and regulation of legal, adult-use marijuana, has been a year in the making. Both the state House and Senate agreed to it independently, with major differences, forcing the bill to be reviewed in a bicameral conference committee to reconcile the two versions. Ultimately, lawmakers agreed on several key points of contention.
Tax Revenue
The final version of the bill includes an excise tax on cannabis products equal to 14% of the retail price in addition to the state’s 6% sales tax, which is higher than the Senate’s original 10% tax proposal. One-third of the revenue from the excise tax would be used to fund drug-prevention and resources. The bill also contains social justice language to support cannabis ventures from Vermont citizens who were disproportionately impacted by the war on drugs, and it includes the creation of a new, independent Cannabis Control Board that will oversee the budding cannabis market. Each municipality will have the power to grant or withhold permits, giving local governments the power to prohibit cannabis retail stores.
The official timeline provided by Vermont’s Legislature indicates that the act is supposed to take effect by Thursday, Oct. 1, but the real change will occur when members of the Cannabis Control Board, who will be tasked with delivering cannabis licenses, start working, between January and February 2021. The recently revealed fiscal analysis of the project shows that the Vermont Legislative Joint Fiscal Office estimates that marijuana sales will bring at least $650,000 in additional revenue every year, plus local fees that municipalities will be allowed to collect. They estimate that Vermont will obtain between $13.3 and $24.2 million in cannabis revenue by fiscal year 2025, including licensing fees and the regular state sales tax.
The bill is now in the hands of Republican governor Phil Scott. Gov. Scott has been the source of much worry for Vermont’s cannabis activists, in particular due to his insistence to include provisions to address potential impaired driving once marijuana is fully legalized. The final version of the bill does address the issue, but it takes a more liberal approach to it than Gov. Scott called for: In order to conduct a THC (the psychoactive substance of cannabis) test to determine if a driver is indeed high, police would need a search warrant, and the test cannot be taken on the side of the road, except for a breath sample, which is a step down from what Gov. Scott announced as his condition to sign the bill.
As a result, Gov. Scott has said that he will “take a look” at the legislation before deciding whether to sign it, allow it to become law without his signature or veto it. “We’ll take a look, we’ll reflect on all of the areas of disagreement, then I’ll make a decision from there,” he said.
As it stands, both houses of the state Legislature have agreed with a large, bipartisan majority on the two legalization bills that are now sitting on the governor’s desk. Moreover, a recent PBS poll found that only 24% of Vermonters oppose the legalization, taxation and regulation of marijuana sales, while 68% outwardly support it.
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