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.
Social Equity
Social Equity Definition / Criteria
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.
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.
License Priorities and Set Asides
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
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.
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.