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Medical cannabis dispensaries are closing, officials say, and leaving with them are access to products and services not available on the recreational market. A bill, passed out of the House in March, aims to remedy that.
James Pepper, chair of the Cannabis Control Board, told legislators in a Feb. 1 meeting that when medical cannabis dispensaries shut down, patients lose access to medical expertise, higher potency THC and cannabis delivery options. Such services aren’t available on the recreational market.
“The way that the system is set up now, dispensaries start to close because the economics don’t work,” Pepper said. “Those services and products, which are only available on the medical side, would really go away.”
Rep. Michael McCarthy, a St. Albans Democrat and chair of the House government operations committee, along with Rep. Matt Birong, D–Vergennes, introduced H.612 in January. It was introduced in the Senate and referred to the Committee on Economic Development, Housing and General Affairs on April 2.
Vermont only has five medical cannabis dispensaries as opposed to at least 51 recreational businesses opening within the last two years, according to Vermont Cannabis Information. In addition to the different offerings by medical dispensaries, their products are also free from the state’s 14% tax on cannabis sales.
To boost the medical side of the weed business, the bill would allow recreational dispensaries to apply for medical endorsements, which would let them offer medical services to patients that need them, like product delivery and higher potency cannabis. Patients that qualify would still be exempt from the usual 14% tax, even at the recreational dispensaries, according to the bill.
Other components of the bill came at the recommendation of the Cannabis Control Board’s annual report to the general assembly, published Jan. 15. The report suggested adding ulcerative colitis to the list of qualifying conditions for medical dispensary access, lowering the fees that all dispensaries — recreational and medical alike — are required to pay and removing caps that require recreational dispensaries to limit the potency of THC in their products. THC stands for tetrahydrocannabinol, the main psychoactive ingredient in cannabis that causes people to feel high.
Lawmakers added ulcerative colitis to the list of qualifying conditions in the bill, and they added language that would cut fees dispensaries are required to pay significantly. An application fee for a one-time retail license to sell cannabis products for either type of dispensary would drop from $2,500 to $1,000. Current law also requires businesses to pay a $20,000 fee in their first year of operation. That fee would get slashed entirely, and a yearly renewal fee of $25,000 that businesses have to pay in subsequent years would fall to just $5,000.
Lawmakers did not, however, take the board’s advice to eliminate THC potency caps on all markets. Pepper acknowledged the situation may require a more delicate solution.
“I asked for that one section in 612 to say just lift the potency caps because that’s the kind of cleanest way to just say ‘patients will be held harmless,’” Pepper said. “They’ll get the same kind of products at least. But it’s also kind of taking a sledgehammer to a situation that probably requires a scalpel.”
Vermont enforces a potency cap of 60% THC on cannabis concentrates like oil and waxes, and 30% on flower, the smokable part of a cannabis plant. Lawmakers originally aimed to eliminate the cap altogether, but they rolled that back after weighing testimony from cannabis experts and researchers.
Legislators heard testimony from those in support of the cap elimination’s inclusion in the bill, like Joseph Toploski, lab manager at Satori, a cannabis wholesaler, cultivator, and manufacturer based in Middlebury. Toploski testified to the benefits of eliminating the THC cap on certain products.
“The removal of potency caps on cannabis concentrates offers a pathway to increased state revenue, market diversification, product authenticity and enhanced safety standards,” Toploski told legislators Feb. 1. “As Vermont looks to foster a robust and compliant cannabis industry, reconsidering these caps could be a pivotal step in achieving these goals and shutting down the black market, which I think we can all agree is a good thing.”
The committee’s decision to maintain the cap was in part due to objections from the medical community. Legislators read written testimony from the Vermont Medical Society that pointed out high potency THC products may not even benefit patients. In fact, they may do the opposite.
“Researchers like the Yale School of Medicine are questioning the therapeutic value of high potency products and publishing the increasing adverse effects and risks related to regular use of dabs and high THC concentrates,” the letter reads. “There is also increasing evidence that chronic pain is best managed with products with THC potency that is less than 10-15% THC.”
The letter said high potency THC use can cause psychosis, paranoia, suicidality, and uncontrollable vomiting.