Licensing Update: Nine New Licenses Issued, Draft Report on Hemp Regulations Reviewed

MONTPELIER — An uplifting announcement kicked off today’s Vermont Cannabis Control Board meeting. Chair of the Board James Pepper reported that in the first month of legal cannabis sales, retailers sold $2.6 million worth of products. Of this sum, excise tax total comes to $329,231 with additional tax adding another $144,000.

Nine new cannabis establishment licenses were issued at todays meeting, including three retailers, two manufacturers, and four small cultivators.

• Theory Wellness of VT Retail LLC – Retailer (Brattleboro)
• Mary Jane Mountain – Retailer (Montgomery)
• Green Union LLC – Retailer (Plymouth)
• Vermont Herbal Essentials, LLC – Manufacturer, Tier 2
• Bear Mother Cannabis, LLC – Manufacturer, Tier 2
• Canna Cultivators Collective – Mixed Cultivator, Tier 1
• High Brix Cannabis Vermont – Indoor Cultivator, Tier 1
• Hidden Door Cannabis LLC – Indoor Cultivator, Tier 1
• 802Farmacy LLC – Indoor Cultivator, Tier 1

New Board Meeting Schedule

The Board voted on their new meeting schedule. Starting in January 2023, the Board will meet on the last Monday of every month at 1:00pm unless there is a holiday. Pepper noted that the Board will reevaluate the new meeting schedule after the next legislative session.

In between meetings, the Board plans to focus on more interactive Q+A sessions and public engagement events. These will pertain to topics the Board feels need additional attention.

Next week, on December 27 at 6:00pm, Board staff will host a Q+A session on inventory tracking, lab testing, and product registration.

Additionally, be sure to check out the Board’s Testing Flowchart for guidance on testing compliance.

Review of Draft Report on Hemp Product Regulation

Board Executive Director Brynn Hare reviewed the Board’s report on Hemp Product Regulation during today’s meeting. Hare emphasized that this report is a draft and some of its finer points still “need to be worked through.”

“Just like [the Board] did with the adult-use and medical programs, [the Board] intends to listen to and be responsive to the needs of hemp growers while balancing our general public health and safety mandates.”
– Chair James Pepper

• Hemp producers who do not manufacture hemp-derived products are within the jurisdiction of the USDA.
• Hemp producers who manufacture non-intoxicating hemp-derived products are required to register with the Control Board. This will be done through an online form that will be available by the end of 2022.
• Hemp producers who manufacture intoxicating hemp-derived products are required to apply for an adult-use manufacturing license.

Definitions

Synthetic Cannabinoid: A cannabinoid-like compound that was produced using synthesis, chemical modification or chemical conversion, including in vitro biosynthesis and bioconversion of any method or type except for those produced through the decarboxylation of naturally occurring cannabinoids from their acidic form.

Intoxicating Hemp Product: Consumable hemp products with one or more milligram (mg) of THC per serving, or more than 10mg of THC per package.

Non-intoxicating Hemp Product: Full spectrum tinctures, capsules, and salves with up to 1.5mg of THC per serving and a 1:20 ratio (or greater) of THC to CBD.

“This calculation may need to be adjusted as time goes on and more research is developed and as we hear public input as well,” said Hare.

The Board’s main concern, based upon the report, center around manufactured novel cannabinoids such as Delta-8 and Delta-10 THC. Neither of these have been consumed by humans in large quantities before thus making the Board skeptical of their health impacts, particularly if they’re not subject to the regularity standards of the Board.

Based on the report, it is clear that the Board’s priority is the consumer. There was a strong emphasis on the potential health and safety risks associated with the aforementioned novel cannabinoids. Concerns of unsafe, unregulated manufacturing methods were of high priority throughout the report.

Four goals of the proposed hemp product regulations:

1. Remove any unsafe products from the market.
2. Limit intoxicating products to the adult-use or medical cannabis markets.
3. Promote Vermont’s local hemp businesses.
4. Give Vermont consumers access to safe and regulated products.

The Board plans to initially prohibit all synthetic cannabinoid products that contain Delta-8, Delta-10 or other novel cannabinoids for which there is a lack of research showing they are safe for human consumption.

Staff Recommendations

Adult License Applications (as of 12/20/22)

Staff Recommendations for Cannabis Establishment Licenses

Submission Status of All Social Equity Applications (as of 12/20/22)

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