Please ensure Javascript is enabled for purposes of website accessibility

Recreational Cannabis Sales Bill Passes Vermont's House of Representatives

By Eric Volkman – Feb 27, 2020 at 2:06PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Though the state legalized adult use in 2018, this bill would finally create a functioning system under which marijuana could be sold for non-medical use.

The government of Vermont is on the verge of supplying the missing piece of the state's marijuana legalization effort. On Wednesday, the state House of Representatives passed a bill that would set standards for the sale of the drug for adult recreational use.

The tax and regulate cannabis bill, as it's titled, passed by a comfortable margin of 90 to 54. It now moves back to the state Senate for reconciliation. (That body passed a similar, but not identical, bill last year.)

The bill's provisions include the creation of a Cannabis Control Board to regulate the industry and grant business licenses. A Cannabis Regulation Fund would also be established in order to finance the Board's operations, and other related purposes.

Most importantly for marijuana companies, the Board would start taking applications for recreational sales licenses as soon as Jan. 15, 2022. Current medical cannabis dispensary operators in the state would be among those getting preference when applying for recreational sale permits.

Generic marijuana dispensary sign.

Image source: Getty Images

Another element of the bill in its present form is a 20% state tax on cannabis sales; the revenue derived from this would be utilized for educational programs. Restrictions include a ban on flavored marijuana vapes, and a limit of 30% potency of THC in all product.

Although the use of recreational cannabis has been legal in Vermont since 2018, the sale of it is still prohibited. Medical marijuana, on the other hand, has essentially been fully sanctioned.

Vermont is a small state, and its medical cannabis retail scene is limited. One company active there is Grassroots, which is set to be acquired by Massachusetts-based Curaleaf (CURLF -7.14%) if and when their long-pending deal finally closes. Look for Grassroots/Curaleaf to file for a recreational sales license when the time comes.

Curaleaf's stock was down marginally in early afternoon trading Thursday. 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Curaleaf Holdings, Inc. Stock Quote
Curaleaf Holdings, Inc.
CURLF
$5.20 (-7.14%) $0.40

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.