How To Open a Marijuana Dispensary in Vermont
Medical marijuana has been legal in Vermont since 2004. But medical dispensaries were not allowed to sell medical cannabis until 2011. Then, in 2018, the governor of Vermont signed a bill that legalized the possession and limited cultivation of recreational cannabis.
By 2020, the state of Vermont opened the licensing process for recreational use marijuana businesses. Adult-use cannabis dispensaries started opening in Vermont in October 2022.
The legalization of recreational cannabis in Vermont is relatively new. As a result, the Vermont cannabis industry is an exciting place to start a cannabis dispensary. If you want to be part of this growing cannabis market, there are strict state and local marijuana laws you need to follow.
The Vermont Cannabis Control Board oversees cannabis establishments and cannabis business license applications in the state. The table below outlines regulations and compliance issues you should be aware of when opening a dispensary in Vermont.
| Relevant Laws |
|
|---|---|
Application Fees |
|
| Types of Licenses | The state recognizes six cannabis license types that can be stacked. This means a business can have more than one type of license but not more than one license of the same type:
|
| Who Can I Sell To? | Recreational cannabis sales are only for adults 21 or older. Cannabis retail stores must verify this information by asking for an ID when the customer enters the store and again before selling any cannabis products to a customer. Customers can order cannabis online but must pick the order up from your store. Delivery to customers is not available now. |
| Criminal History | The CCB will review your federal, Vermont, and out-of-state criminal records before it decides on your application. Record checks are $425. The CCB will reject your application if you have a pending charge or convicted of:
|
| How Much Cannabis Can I Sell? | A dispensary can sell up to one ounce of cannabis per customer. |
Note: While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
Who Issues the Licenses?
The Cannabis Control Board ensures Vermont dispensaries are compliant with state laws and regulations.
Can I Open My Dispensary Anywhere?
The law prohibits marijuana dispensaries from operating within 500 feet of a preexisting school or childcare facility.
Am I Limited in What I Can Sell at My Vermont Marijuana Dispensary?
Yes. Should you want to sell vape cartridges or products, you need another license to do so. Contact the Department of Liquor and Lottery for this license. Consuming cannabis and cannabis products in public is illegal in Vermont, so do not allow it on your premises.
What Should I Include in the Marijuana Dispensary Registration Application?
Vermont’s application process is very stringent and very specific. Some of the documents you need to present to get a dispensary license include:
- Proof of security measures to prevent and deter unauthorized entrance
- Name, date of birth, and fingerprints of the owner and financer of the dispensary
- Business plan and procedures for accurate record keeping
- The address of the dispensary
The CCB also looks at several factors to determine whether you qualify for a license. Some of these factors include whether:
- Your proposed location is within 500 feet of a school
- You have the required experience to run a dispensary
- You have a prohibited criminal history
The CCB has a guidance document that lists the requirements for new business owners to get their dispensary applications approved. This includes a certificate of good standing from the Department of Taxes, a certificate of occupancy, and a letter from the Division of Fire Safety if your location is not in a public building.
Are There Any Packaging Requirements?
If you own a marijuana dispensary, you must include a label on the packaging of the marijuana you sell. You can find the complete list of the labeling requirements via the CCB’s guidance document on package labeling. You need the current health warning established by the Vermont Department of Health and Vermont Cannabis Control Board on your products.
Are There Any Marketing or Advertising Requirements?
Yes. There are many rules when it comes to your cannabis dispensary. You cannot create ads that would appeal to people under 21. There are also many stipulations, such as no false or misleading advertising or free samples.
Are the Laws Similar in All Vermont Cities?
The laws give broad discretion to municipalities to enact zoning ordinances that determine the manner of dispensary operations. Cities can choose to opt in or opt out of cannabis retail sales. Over 70 Vermont cities have opted-in, including Burlington and Middlebury. You must know the local laws before starting a cannabis business.
More Resources
- Marijuana Business: Licenses, Permits, and Planning
- Setting Up a Marijuana Business: The Basics
- Details on State Marijuana Laws
- Vermont Business Laws
- Hiring Vermont Marijuana Dispensary Employees
Speak With a Vermont Business Attorney Before You Start Your Application
The marijuana industry is a rapidly growing industry. This is especially true in Vermont, where the laws are constantly changing. Consult with a Vermont cannabis business and commercial lawyer today to help you ensure compliance with the application process.
Can I Solve This on My Own or Do I Need an Attorney?
Cannabis is a complex area of law. Start by learning what you need to form and operate a cannabis business:
Then, protect your rights by calling a business lawyer familiar with cannabis laws. Many attorneys offer free consultations.
Stay up-to-date with how the law affects your life
Enter your email address to subscribe
Enter your email address to subscribe
DIY Forms for Cannabis Business
Restrictive federal laws and ever-changing state laws make the marijuana industry a dynamic environment for cannabis business owners. Before you open a cannabis business, make sure it is legal in your state, and follow your state laws. Once you decide on an LLC, S-corp, or C-corp business, you can register your business entity online using DIY business formation forms.
You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help
Meeting with a lawyer can help you understand your options and how to best protect your rights. Visit our attorney directory to find a lawyer near you who can help.