Vermont

Equity Project State Briefing

Social Equity

Social Equity Definition / Criteria

  • i. Previous Cannabis Conviction:
  • ii. Income:
  • iii. State Residency:
  • iv. Qualifying Neighborhood / Municipal Residency:

While Vermont has not yet adopted regulations defining the criteria for participation in their social equity program, The Vermont Cannabis Control Board  published recommendations for Vermont’s cannabis licensing scheme and social equity program. Under currently drafted (but not adopted) rules, to qualify for a social equity license, an applicant business must meet at least one of the following criteria:

(A) At least 51 percent ownership and control by one or more individuals who have resided for at least five of the proceeding 10 years in a disproportionately impacted area.

(B) At least 51 percent ownership and control by one or more individuals who:

(i) Have been arrested for, convicted of, or adjudicated delinquent for any cannabis offense that is eligible for expungement; or

(ii) Are a member of an impacted family (defined as an individual who has a parent, legal guardian, spouse, or dependent who prior to July 1, 2021, was arrested or convicted for a cannabis offense that is eligible for expungement).

(C) For applicants with a minimum of 10 full-time employees, an applicant with at least 51 percent of current employees who:

(i) Currently reside in a disproportionately impacted area; or

(ii) Have been arrested for, convicted of, or adjudicated delinquent for any cannabis offense that is eligible for expungement or are a member of an impacted family.

Source:

Vermont Cannabis Control Board "Draft recommendations, CHAPTER 39. CANNABIS SOCIAL EQUITY PROGRAMS". Retrieved January 10, 2022

Social Equity Provisions

The board in Vermont has not yet established social equity provisions. However, the program is designed to provide financial assistance, loans, grants, and outreach to social equity applicants.

Source:

Vt. Stat. tit. 7 § 988. Social equity loans and grants

License Priorities and Set Asides

  • License Priorities / Set Asides:
No

The board in Vermont has not yet established social equity provisions specifying any licensing priority or set asides available to social equity program participants.

Fee Waivers and Reductions

  • Fee Waivers / Reductions:
Yes

While Vermont has not yet adopted regulations defining the criteria for participation in their social equity program, The Vermont Cannabis Control Board  published recommendations for Vermont’s cannabis licensing scheme and social equity program. Under currently proposed (but not adopted) rules, social equity applicants would have their application fees waived and license fees would be waived in the first year, then reduced by 75%, 50%, and 25% in each of the following three years, respectively.

Source:

Vermont Cannabis Control Board "Report to the House Committee on Ways and Means". page 6, Social Equity Fee Reduction Recommendations. Retrieved January 7, 2022

Other Financial Support for Social Equity Applicants and Licensees

Vermont established the Cannabis Business Development Fund. The fund consists of a one-time contribution of $50,000.00 per integrated license to be made on or before October 15, 2022; and  monies allocated to the fund by the General Assembly. (The amount of annual appropriation are still being drafted in regulations)

 The Fund will be used for the following purposes:

(1) to provide low-interest rate loans and grants to social equity applicants to pay for ordinary and necessary expenses to start and operate a licensed cannabis establishment;

(2) to pay for outreach that may be provided or targeted to attract and support social equity applicants;

(3) to assist with job training and technical assistance for social equity applicants.

Source:

Vt. Stat. tit. 7 § 987. Cannabis Business Development Fund

Other Licensing Provisions

License Caps

  • License Caps:
TBD

Vermont has not yet established whether their adult use sector will have licensing caps, however as reference, the state limits the number of medical dispensary licenses that can be issued. local municipalities must consciously opt in to participate in the adult use sector.

Source:

Vt. Stat. tit. 7 § 863. Subsections (a) and (b)

Application Selection Process

  • Selection System:
TBD

Vermont has not yet announced how licenses will be distributed. However the Board is responsible for creating a selection system based on certain priorities, leading us to believe the licenses will be distributed based on merit rather than a lottery. The system of priorities shall require consideration of criteria, including:

(1) whether the applicants have an existing medical cannabis dispensary license in good standing;

(2) whether the applicants would foster social justice and equity in the cannabis industry by being a minority or women-owned business;

(3) whether the applicants propose specific plans to recruit, hire, and implement a development ladder for minorities, women, or individuals who have historically been disproportionately impacted by cannabis prohibition;

(4) whether applicants propose specific plans to pay employees a living wage and offer benefits;

(5) whether the project incorporates principles of environmental resiliency or sustainability, including energy efficiency; and

(6) the geographic distribution of cannabis establishments based on population and market needs.

by the board but they must follow general criteria.

Source:

Vt. Stat. tit. 7 § 903. Priorities; business and technical assistance

Felony Disqualification on Ownership

  • Ownership Exclusion for Felony Convictions:
Yes
  • Exemption for Cannabis Offenses:
Yes

Vermont has not yet established specific felony disqualifications within the adult use sector. However, the Board must set forth standards for determining whether an applicant should be denied a cannabis license because of his/her/their criminal history record based on factors that demonstrate whether the applicant presently poses a threat to public safety or the proper functioning of the regulated market. Nonviolent drug offenses shall not automatically disqualify an applicant.

Source:

Vt. Stat. tit. 7 § 883. Subsection (b)

Employee Criminal Records

  • Conviction Restrictions for Employees:
TBD
  • Exemption for Cannabis Offenses:
TBD

Vermont has not yet established any specific adult-use cannabis employee felony disqualifications.

Availability of Expungements

  • Expungements:
Yes, Automatic

Vermont’s newest expungement provision  S. 234 was signed into law on October 7, 2020. Vermont offers automatic expungement of convictions prior to Jan 2021, for violations of 18 V.S.A. § 4230(a)  (possession or cultivation of less than two ounces of cannabis, 10 grams of hashish, four mature plants, and eight immature plants. ) The automatic expungement process must be completed by January 1, 2022. The possession and cultivation amounts that are decriminalized and eligible for expungement under the new law, are almost twice the legal possession limits for adults.

Source:

Marijuana Policy Project "Vermont Cannabis Expungement and Penalty Reduction Summary". Retrieved January 7
Vt. Stat. tit. 13 § 7602. Amendment note B (2) EXPUNGEMENT OF MARIJUANA CRIMINAL HISTORY RECORDS. Law does not appear to be codified yet. See 2019 Vt. ACT 167, 2020 Vt. S. 234