Vermont expanded its medical marijuana program after Governor Phillip Scott signed legislation that adds Crohn’s Disease, Parkinson’s Disease, and Post-Traumatic Stress Disorder (PTSD) to the list of qualifying conditions for the state’s legal market.
While it would have been great if Governor Scott signed the recreational cannabis legislation earlier this year, we are favorable on this development. Analysts have said that Vermont’s legal recreational and medical cannabis market could surpass $100 million.
Legislation to Significantly Expand the State’s Cannabis Market
Vermont has a small medical cannabis program and this development should significantly expand the size of the market. The state only has four medical cannabis dispensary licenses which serve less than 5,000 registered patients.
Current law allows patients to only do one or the other, not both. The legislation also allows dispensaries to operate as a for-profit entity (currently required to operate as a non-profit).
If the legislation was approved, beginning in July 2018, it would legalize the possession of up to an ounce of weed, two mature plants and four immature plants.
Governor Rejects Recreational Marijuana Legislation
Earlier this year, both the Vermont House and Senate passed legislation to legalize recreational cannabis. Although the legislation was vetoed by the governor, he indicated his support if certain conditions were addressed.
According to local news outlets, Governor Scott said, “I’m not philosophically opposed to ending the prohibition on marijuana.”
The legislation would have worked to satisfy some but not all the conditions. The legislation would have created a study commission to look at other state models from a taxation and regulation standpoint. This study would be used to make recommendations for Vermont’s adult use market and would provide guidance regarding other state markets.
A Development to Watch
While we are favorable on this development, it will take time for Vermont’s market to grow to a size where it is attractive from an investment standpoint. We continue to view the Vermont market as attractive from a geographic standpoint due to the proximity to Massachusetts and New York, however, we prefer other markets.
There are only a few companies focused on the Vermont market and we will continue to monitor how the state’s cannabis market advances from here.
Authored by: Jason Spatafora
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
