Licensing Update: 10 New VT Licenses Issued Today; Hemp-Derived THC Will Be Regulated

MONTPELIER — The Vermont Cannabis Control Board issued ten new licenses at today’s meeting, including five retailers. Members also announced that hemp-derived THC products will be regulated, significant news for processors and retailers, and reviewed its official Advertising Guidance.

The following establishments became officially licensed today:

• Humble Skunk – Indoor Cultivator, Tier 1
• Subterra Cannabis – Indoor Cultivator, Tier 2
• Somewhere On The Mountain – Retailer, Rutland
• Sunday Drive – Retailer, Woodstock
• Vermont Hemp Craft LLC DBA Green Retailers – Retailer, Burlington
• Emeraldrose Retail – Retailer, Bristol
• Epona Farms – Retailer, Brandon
• Ojorojo Cannabis – Wholesaler
• Quintessential Botanicals – Outdoor Cultivator, Tier 3
• District 802 – Manufacturer, Tier 1

Location of Retail Licensees and Applicants in the Queue as of 11/9/2022 (does not show integrated licensee in Burlington).

See licenses approved in last week’s Nov. 2 meeting.

Backlog of Product Approvals

Chair of the Board James Pepper began today’s meeting by briefly addressing the product approval backlog. He offered his thanks to all those who have been diligently registering their products and have been patiently waiting for approval.

Due to the size of Board staff, the Licensing team is also responsible for approving products and employee ID card applications. “The more [the Board] focuses resources on product registration, the less capacity we have for actually getting businesses their licenses,” Pepper explained.

In order to help mitigate this backlog, a portion of the Compliance team has been assigned to review product registrations in tandem with the Licensing team. Additionally, Board staff uses Microsoft Teams which requires staff to piece parts of applications together manually. However, by the end of the year the Board will transition to Salesforce for product registration which will streamline much of the process that has created the backlog thus far.

License holders may mail the Board at [email protected] to inquire whether a product they’d like to sell has already been registered.

Hemp-Derived THC Products Will Be Regulated

On Friday November 4, the Board posted an industry bulletin to their website regarding hemp and hemp-derived high THC products, announcing that all hemp-derived products containing a minimum amount of THC must be regulated by the Board. Today, they followed up with an explanation of what means for the hemp industry.

Executive Director of the Board Brynn Hare explained, “The bulletin was designed to give both hemp growers and processors an early roadmap on the Board’s approach to hemp products that are going to be entering the market.”

During the last legislative session, regulatory authority over hemp and hemp-derived products was transferred from the Vermont Agency of Agriculture, Food and Markets to the Vermont Cannabis Control Board by the General Assembly.

In 2023, Vermont hemp growers must to register with the USDA in order to comply with federal law. Hemp processors who intend to produce hemp-derived products with one or more milligrams of THC per serving will need to obtain a cannabis establishment manufacturing license. The same goes for retailers who intend to sell hemp-derived products with THC content greater than or equal to 1mg. This rule also applies to synthetic cannabinoids and hemp-derived cannabinoids, including delta-8 and delta-10 tetrahydrocannabinol.

With hemp-derived THC products having gained in popularity over the past several years, the bulletin and subsequent meeting announcement today is significant news for growers, processors and retailers in Vermont.

In January, the Board must submit a report to the General Assembly laying out a plan for regulating hemp processors and hemp-derived products. As the Board develops rules for hemp processing, the public is invited to weigh in before rules are finalized in the coming months. For more detailed information on updates to the Hemp Policy, refer to the Board’s website.

“There’s a constant evolution of cannabis law and policy both at the state and the federal level that could inform changes to the way the Board will regulate hemp products.”   –Brynn Hare

Advertising Guidance

Board Commissioner Julie Hulburd led viewers of today’s meeting through a short but thorough overview on the do’s and don’ts of cannabis advertising in Vermont. Everything reviewed by Hulburd can be found in the guidance document under the Guidance tab of the Board’s website.

Cannabis Establishments should read the related sections of 7 V.S.A. Chapter 33 and Board Rule 2 to fully understand advertising requirements in their entirety. Cannabis Establishments should also review the Board’s Labeling Guidance, available on their guidance page.

Staff Recommendations

Other Meeting Item(s):

• The Board has two new positions available on the VT Human Resources website.
• November 21 @ 7pm: Live remote Q+A session on testing, inventory tracking, and product registration. Link to join will be available on the Board’s website.

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