Please ensure Javascript is enabled for purposes of website accessibility

Vermont Recreational Marijuana Sales Bill Returns to State Senate

By Eric Volkman - Feb 28, 2020 at 2:46PM

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

That body must reconcile its version of the bill with the one passed by the State House of Representives this week before sending it to the governor.

The Vermont House of Representatives gave its final approval to a bill legalizing the sale of recreational marijuana on Thursday.

The largely procedural move means the proposed law, called the tax and regulate cannabis bill, will return to the state Senate, which passed a version of it in March 2019. The differences between the two versions must be reconciled before the final version can go to Gov. Phil Scott to be signed into law. 

The bill sets the rules for recreational marijuana sales, and establishes the state infrastructure to regulate and tax the businesses that do so. Two entities, the Cannabis Control Board and the Cannabis Regulation Fund, are to be created for the latter purposes.

Vermont road sign with marijuana leaf.

Image source: Getty Images

Initially, the board will allow medical marijuana dispensary operators currently operating in the state to apply for licenses to sell for recreational use; it is anticipated that these licenses will start to be granted by Feb. 15, 2022. Presumably soon after that, other marijuana companies would also be allowed to apply for permits.

The recreational use of marijuana has been legal for adults in Vermont since 2018. Uniquely among states that permit that, however, it had not created a legal framework to allow the sale of the drug for non-medical purposes. The tax and regulate cannabis bill is an attempt to rectify that rather odd situation.

Currently, the small state has only seven registered medical cannabis dispensaries. One of them is operated by Grassroots, the multistate operator (MSO) that agreed last year to be acquired by Curaleaf (CURLF 1.24%), which is headquartered in neighboring Massachusetts. When and if that deal closes, Curaleaf would almost certainly apply for a recreational license for its Vermont store.

Curaleaf stock was down by slightly over 3% in mid-afternoon trading Friday. 

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
$6.05 (1.24%) $0.07

*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
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/14/2022.

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.