The Cannabis Control Board voted Wednesday, Sept. 25, to temporarily close the window for new retail and tier 2 cultivation applications in Vermont.
“The Board is committed to adapting to changing market conditions,” the news release stated.
At Wednesday’s meeting, all three of the board’s members spoke of their concern for oversaturation in the regulated cannabis market.
“We know that these have dramatic consequences, and it’s not just about whether we close this licensee type or that license type, it’s how we do it,” said Chair James Pepper.
Regarding retail density, Pepper said the market is currently experiencing an “unnatural distribution” in retail locations. In its most recent session, the General Assembly passed Act 166, instructing the board to adopt rules promoting geographic distribution.
However, rulemaking is an intensive, months-long process. While it is underway, a temporary pause in new applications is a necessary interim step.
Retail applicants now have until Oct. 25, 2024 to submit a new application. For applications already in progress, applicants have until Nov. 15, 2024 to complete all requirements needed for board approval at the November meeting: a fully completed application, a certificate of occupancy (if required), and a successful site review. The board’s licensing team will reach out to those with retail applications in process.
Cultivation deadlines
Chair Pepper noted that the Vermont cannabis market is approaching a seasonal oversupply shock with the arrival of the 2024 outdoor crop, making near-term supply shortages unlikely.
Tier 2 cultivation applicants also have until Oct. 25, 2024 to complete all requirements needed for board approval at the October meeting. Tier 2 cultivation (1,000-2,500 square feet of plant cover) now joins the larger tiers 3-5 which were previously closed. Tier 2-5 outdoor and mixed cultivation licenses in seasonal closure will not reopen.
Tier 1 cultivation applications (for those under 1,000 square feet) will remain open as part of the CCB’s effort to preserve the small-scale, craft nature of the market.
