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A Guide To Vermont’s New Marijuana Legalization Law

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In January, Vermont became the ninth state to legalize marijuana—and the first to end cannabis prohibition through an act of lawmakers, rather than a ballot initiative. But with the law set to take effect on July 1, questions remain about how the recreational system will actually function.

What you need to know

Vermont Governor Phil Scott (R) signed the adult-use legalization bill, H. 511, into law on January 22. The governor said that he had “mixed feelings” about the legislation, but added that he believed “what adults do behind closed doors and on private property is their choice, so long as it does not negatively impact the health and safety of others, especially children.”

The law permits adults 21 and older to:

  • Possess up to an ounce of cannabis, or five grams of hashish.
  • Grow “two mature and four immature marijuana plants” on private property in a secured enclosure that’s kept out of public sight.
  • Those plants wouldn’t count toward the one ounce possession limitation.
  • If you don’t own the property, you’d have to get the property owner’s permission before cultivating cannabis.

“Consumption of marijuana in a public place or in a vehicle is prohibited as is possession of an open container of marijuana in a vehicle, and violations are subject to civil penalties,” a summary of the bill text explains. There are also penalties for providing or “enabling consumption” of marijuana to individuals under 21.

The legislation doesn’t explicitly address marijuana “gifting,” which has served as a way to circumvent market restrictions in certain legal jurisdictions like the District of Columbia.

Employers are still allowed to enforce policies against consuming, cultivating or displaying marijuana in the workplace.

If an employer has a no-tolerance drug policy, employees can be fired for violating that policy even if they use cannabis outside the workplace. However, the Vermont Attorney General’s office cautioned employers when it comes to penalizing medical cannabis patients suffering from debilitating conditions in a recent guidance report:

“Under [Vermont’s Fair Employment Practices Act], it is unlawful for any employer, employment agency, or labor organization to discriminate against a “qualified individual with a disability.” Discrimination means not only intentional mistreatment of a disabled employee or applicant, but also failure to provide a reasonable accommodation to that individual… employees carrying a medical marijuana card and those dealing with substance abuse issues may be protected under VFEPA’s disability provisions.”

The new system does not provide access to cannabis seeds or products at dispensaries, as is the case in other states where recreational marijuana is legal. And that’s where things start to get tricky.

Where are adult users supposed to obtain cannabis or seeds to grow their own plants if there’s no legal retail system in place? If you’re a registered medical marijuana patient, who does have access to dispensaries that sell cannabis and seeds, then you could hypoathetically circumvent that issue; but for adults outside the medical system, the conflicting regulations could create headaches.

“Legalization advocates argue that people who are interested in growing marijuana probably have access already,” The Burlington Free Press reported. “The main difference after legalization, they say, will be the lifting of penalties and stigma.”

The winding road to non-commercial legalization in Vermont

While Vermont made history in January by becoming the first state to pass a legalization measure through the legislature, it wasn’t necessarily a smooth path to reform. It’s taken about two years, since the state Senate first voted in favor of a tax and regulate legalization bill—which the House ultimately rejected.

Even as recently as April, Vermont lawmakers attempted to rally support for a commercial legalization bill but were defeated in a floor vote. But House Speaker Mitzi Johnson (D) and others cautioned that the timing wasn’t right, considering the fact that the governor had just signed the non-commercial legalization bill into law just three months prior.

Lt. Gov. David Zuckerman (D) told Vermont Public Radio in April that regardless of the fate of the eleventh-hour effort to move a tax and regulate legalization bill forward, it would only be a matter of time.

“This vote does not reflect the sentiment of the people, and when the sentiment of the people is reflected in this body, it will move forward,” Zuckerman said.

Are medical marijuana patients being left behind as the state prepares to implement its recreational system?

Though adult users won’t have a legal way to obtain cannabis or seeds under the law, there are a number of other differences in how laws apply to medical patients and recreational consumers. For example, adults over 21 are allowed to grow up to six plants outdoors, whereas medical patients can grow up to nine plants—but they’re required to keep their grows indoors.

Also, while harvested cannabis doesn’t count toward a recreational user’s one ounce possession restriction, harvested plants do count toward medical patients two ounce possession restriction.

“I’ve heard concerns from several medical cannabis patients and their loved ones that they cannot get clear guidance from anyone in state government regarding how many plants they are allowed to grow for their own use, and how they may grow them,” Dave Silberman, a Middlebury, Vermont attorney and pro bono drug policy reform advocate, told Marijuana Moment.

“Many patients are wondering whether these rights can be ‘stacked,’ such that, for example, a married couple consisting of one registered medical patient and one non-patient could legally grow four mature plants (two for “adult use” and two for “symptom relief”),” he said.

There is currently a bill being considered in special session that aims to reconcile some of these regulatory differences, according to The Burlington Free Press. Among other things, the bills seeks to impose “locked container transport” requirements that are currently in effect for medical patients but do not apply to adult users. It would also clarify the state’s prohibition on providing cannabis to individuals under 21 under the recreational system, as medical patients may be under 21 and the law doesn’t offer assurances to medical caregivers that they wouldn’t be penalized under the new law.

“Vermont’s homegrow law is a great first step, but is incomplete,” Silberman said. “Despite the failure to move [a more wide-ranging legalization bill, H. 490] forward this past session, I’m optimistic that we’ll be able to move forward quickly in 2019 with a comprehensive bill to establish a regulated market and clear up the inconsistencies between the current ‘adult use’ and ‘medical’ regimes, as more and more legislators are coming to understand the reality that it’s the same damned cannabis either way.”

In the meantime, beginning on July 1, adults over 21 in Vermont will finally be able to legally use, possess and grow marijuana without a doctor’s recommendation.

These States Will Probably Vote On Marijuana In 2018

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

Kyle Jaeger is Marijuana Moment's Sacramento-based senior editor. His work has also appeared in High Times, VICE and attn.

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Top IRS Official Says Marijuana Banking Reform Would Help Feds ‘Get Paid’

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The Internal Revenue Service (IRS) would like to get paid—and it’d help if the marijuana industry had access to banks like companies in other legal markets, an official with the federal department said. She also talked about unique issues related to federal tax deductions for cannabis businesses.

At an event hosted by UCLA’s Annual Tax Controversy Institute on Thursday, IRS’s Cassidy Collins talked about the “special type of collection challenge” that the agency faces when it comes to working with cannabis businesses while the product remains federally illegal.

While IRS isn’t taking a stand on federal marijuana policy, Collins said that the status quo leaves many cannabis businesses operating on a cash-only basis, creating complications for the agency, in part by making it harder for banks to “pay us.”

“The reason why [the marijuana industry is] cash intensive is twofold,” she said. “Number one, a lot of customers don’t want a paper trail showing that they’re buying marijuana, and number two, the hesitancy of banks to allow marijuana businesses to even bank with them.”

Of course, the reason why many financial institutions remain hesitant to take on cannabis companies as clients is because the plant is a strictly controlled substance under federal law.

“There’s been a number of legislative bills that have been introduced—and I am definitely not expressing any opinion personally or on behalf of the IRS about any pending or proposed legislation,” Collins, who is a senior counsel in the IRS Office of Chief Counsel, said. “But it is interesting to note that, if the law changed so that the marijuana businesses could have banks, that would make the IRS’s job to collect [taxes] a lot easier. As part of collection, we want the money. That’s our end goal there.”

A major part of what makes cannabis businesses unique is that they don’t qualify for traditional tax credits under an IRS code known as 280E. That policy “prohibits them from claiming deductions for business expenses because they’re technically being involved in drug trafficking,” Collins explained at the event, from which small excerpts of her comments were reported by Bloomberg.

There are some options available to lessen the burden on marijuana firms, however. At the end of the day, “IRS will work with marijuana companies because, again, we want to get paid,” Collins said.

One of the ways the agency works with marijuana business operators is to have them visit designated IRS “tax assistance centers” that accept cash payments in excess of $50,000. But the official warned businesses to “be prepared to be there for a little while” as the center checks—and double checks—the amount of cash being submitted.

“Revenue officers will assist the marijuana companies in paying us,” she said.

IRS officials could also help cannabis firms by having officials accompany them “to the bank in order to try to help the taxpayer secure a cashier’s payment to pay the IRS, as well as using money orders,” she said, adding that “our revenue officers are are wanting to work with the marijuana companies to help assist them to pay us.”

“When the revenue officers are there in person with the taxpayer, that could potentially help increase the likelihood that the bank will cooperate and help the taxpayer transition into a cashier’s check,” she continued. “And that has been a trend since this first became legal [at the state level], that more and more banks are allowing cannabis companies to bank with them.”

In a report published earlier this year, congressional researchers examined tax policies and restrictions for the marijuana industry—and how those could change if any number of federal reform bills are enacted.

IRS, for its part, said last month that it expects the cannabis market to continue to grow, and it offered some tips to businesses on staying compliant with taxes while the plant remains federally prohibited.

As it stands, banks and credit unions are operating under 2014 guidance from the Financial Crimes Enforcement Network (FinCEN) that lays out reporting requirements for those that choose to service the marijuana industry.

Leaders in both chambers of Congress are working on legalization bills to end federal marijuana prohibition. But stakeholders are hopeful that, in the interim, legislators will enact modest marijuana banking reform. Legislation to protect financial institutions from being penalized for working with cannabis businesses passed the House for the fifth time last month.

Rodney Hood, a board member of the National Credit Union Administration, wrote in a Marijuana Moment op-ed this month that legalization is an inevitability—and it makes the most sense for government agencies to get ahead of the policy change to resolve banking complications.

IRS separately hosted a forum in August dedicated to tax policy for marijuana businesses and cryptocurrency.

Earlier this year, IRS Commissioner Charles Rettig told Congress that the agency would “prefer” for state-legal marijuana businesses to be able to pay taxes electronically, as the current largely cash-based system under federal cannabis prohibition is onerous and presents risks to workers.

Former Treasury Secretary Steven Mnuchin said in 2019 that he’d like to see Congress approve legislation resolving the cannabis banking issue and he pointed to the fact that IRS has had to build “cash rooms” to deposit taxes from those businesses as an example of the problem.

IRS released updated guidance on tax policy for the marijuana industry last year, including instructions on how cannabis businesses that don’t have access to bank accounts can pay their tax bills using large amounts of cash.

The update appears to be responsive to a Treasury Department internal watchdog report that was released earlier in the year. The department’s inspector general for tax administration had criticized IRS for failing to adequately advise taxpayers in the marijuana industry about compliance with federal tax laws. And it directed the agency to “develop and publicize guidance specific to the marijuana industry.”

Luxembourg Set To Become First European Country To Legalize Marijuana Following Government Recommendation

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Luxembourg Set To Become First European Country To Legalize Marijuana Following Government Recommendation

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Luxembourg is poised to become the first European country to legalize marijuana, with key government agencies putting forward a plan to allow the possession and cultivation of cannabis for personal use.

The ministers of justice and homeland security on Friday unveiled the proposal, which will still require a vote in the Parliament but is expected to pass. It’s part of a broader package of reform measures the agencies are recommending.

Under the marijuana measure, adults 18 and older could grow up to four plants. However, under the non-commercial model that is being proposed, possessing more than three grams in public would still be a civil offense, carrying a fine of €25-500 ($29-581). Currently, the maximum fine for possession is €2,500 ($2,908).

In terms of access, adults would be able to buy and trade cannabis seeds for their home garden.

Justice Minister Sam Tamson said the government felt it “had to act” and characterized the home cultivation policy change as a first step, The Guardian reported.

“The idea is that a consumer is not in an illegal situation if he consumes cannabis and that we don’t support the whole illegal chain from production to transportation to selling where there is a lot of misery attached,” he said. “We want to do everything we can to get more and more away from the illegal black market.”

While limited in scope, the reform would make Luxembourg the first country in Europe to legalize the production and possession of marijuana for recreational use. Cannabis has been widely decriminalized in certain countries in the continent, but it has remained criminalized by statute.

Government sources in Luxembourg told The Guardian that plans are in the works to develop a program where the state regulates the production and distribution of marijuana. Tamson said they are working to resolve “international constraints” before taking that step, however, referring to United Nations treaty obligations that multiple U.S. states and other countries like Canada and Uruguay have openly flouted.

For now, the country is focusing on legalization within a home setting. Parliament is expected to vote on the proposal in early 2022, and the ruling parties are friendly to the reform.

This has been a long time coming, as a coalition of major parties of Luxembourg agreed in 2018 to enact legislation allowing “the exemption from punishment or even legalization” of cannabis.

Meanwhile in the U.S., congressional lawmakers are working to advance legalization legislation. A key House committee recently approved a bill to end marijuana prohibition, and Senate leadership is finalizing a separate reform proposal.

In Mexico, a top Senator said this week that lawmakers could advance legislation to regulate marijuana in the coming weeks. The Supreme Court has already ruled that adults cannot be criminalized over possession or cultivation, but there’s currently no program in place to provide access.

New Bipartisan Marijuana Research Bill In Congress Would Let Scientists Study Dispensary Products

Photo courtesy of Mike Latimer.

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New Bipartisan Marijuana Research Bill In Congress Would Let Scientists Study Dispensary Products

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A bipartisan group of federal lawmakers introduced a bill on Thursday to remove barriers to conducting research on marijuana, including by allowing scientists to access cannabis from state-legal dispensaries.

The Medical Marijuana Research Act, filed by the unlikely duo of pro-legalization Rep. Earl Blumenauer (D-OR) and prohibitionist Rep. Andy Harris (R-MD), would streamline the process for researchers to apply and get approved to study cannabis and set clear deadlines on federal agencies to act on their applications.

“Congress is hopelessly behind the American people on cannabis, and the quality of our research shows why that is an urgent problem,” Blumenauer told Marijuana Moment. “Despite the fact that 99 percent of Americans live in a state that has legalized some form of cannabis, federal law is still hamstringing researchers’ ability to study the full range of health benefits offered by cannabis, and to learn more about the products readily available to consumers.”

“It’s outrageous that we are outsourcing leadership in that research to Israel, the United Kingdom, Canada, and others. It’s time to change the system,” he said.

Late last year, the House approved an identical version of the cannabis science legislation. Days later, the Senate passed a similar bill but nothing ended up getting to the president’s desk by the end of the last Congress. Earlier this year, a bipartisan group of senators refiled their marijuana research measure for the current 117th Congress.

Meanwhile, lawmakers are also advancing a separate strategy to open up dispensary cannabis to researchers. Large-scale infrastructure legislation that has passed both chambers in differing forms and which is pending final action contains provisions aimed at allowing researchers to study the actual marijuana that consumers are purchasing from state-legal businesses instead of having to use only government-grown cannabis.

The new bill filed this week by Blumenauer and Harris, along with six other original cosponsors, would also make it easier for scientists to modify their research protocols without having to seek federal approval.


Marijuana Moment is already tracking more than 1,200 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

It would additionally mandate that the Drug Enforcement Administration (DEA) license more growers and make it so there would be no limit on the number of additional entities that can be registered to cultivate marijuana for research purposes. It would also require the U.S. Department of Health and Human Services (HHS) to submit a report to Congress within five years after enactment to overview the results of federal cannabis studies and recommend whether they warrant marijuana’s rescheduling under federal law.

“The cannabis laws in this country are broken, including our laws that govern cannabis research,” Blumenauer said in remarks in the Congressional Record. “Because cannabis is a Schedule I substance, researchers must jump through hoops and comply with onerous requirements just to do basic research on the medical potential of the plant.”

The new legislation will “both streamline the often-duplicative licensure process for researchers seeking to conduct cannabis research and facilitate access to an increased supply of higher quality medical grade cannabis for research purposes,” he said, adding that expanded studies will help make sure “Americans have adequate access to potentially transformative medicines and treatments.”

For half a century, researchers have only been able to study marijuana grown at a single federally approved facility at the University of Mississippi, but they have complained that it is difficult to obtain the product and that it is of low quality. Indeed, one study showed that the government cannabis is more similar to hemp than to the marijuana that consumers actually use in the real world.

There’s been bipartisan agreement that DEA has inhibited cannabis research by being slow to follow through on approving additional marijuana manufacturers beyond the Mississippi operation, despite earlier pledges to do so.

In May, the agency finally said it was ready to begin licensing new cannabis cultivators. Last week, DEA proposed a large increase in the amount of marijuana—and psychedelics such as psilocybin, LSD, MDMA and mescaline—that it wants produced in the U.S. for research purposes next year.

Under the new House bill, the agency would be forced to start approving additional cultivation applications for study purposes within one year of the legislation’s enactment.

HHS and the attorney general would be required under the bill to create a process for marijuana manufacturers and distributors to supply researchers with cannabis from dispensaries. They would have one year after enactment to develop that procedure, and would have to start meeting to work on it within 60 days of the bill’s passage.

In general, the legislation would also establish a simplified registration process for researchers interested in studying cannabis, in part by reducing approval wait times, minimizing costly security requirements and eliminating additional layers of protocol review.

Read the full text of the new marijuana research bill below:

Click to access medical-marijuana-research-act-hr-5657-text.pdf

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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