Vermont Senate Advances S.278 to Raise Marijuana Limits and Expand Cannabis Permits

26 March 2026

Vermont’s cannabis business could be headed for another round of adjustments, and S.278 sits at the center of that effort.

The bill would make several consumer-facing changes to marijuana law.

• It would raise the retail transaction limit and adult possession limit from one ounce to two ounces.
• It would also increase the possession limit for concentrates from five grams to 10 grams and raise the THC cap for a single package of cannabis products from 100 milligrams to 200 milligrams.

The bill would create temporary permits for marijuana deliveries and events, allow a limited number of public and private event permits each year, authorize a limited number of delivery permits for certain smaller operators, permit interstate compact participation, and bar municipalities from fully prohibiting marijuana establishments. Most provisions, under that account, would take effect July 1, 2026.

In the introduced version, S.278 would raise the retail transaction limit from one ounce to two ounces for adults 21 and older. It would also increase lawful possession from one ounce to two ounces and raise the hashish threshold from five grams to 10 grams.

But the introduced bill goes beyond purchase limits. It repeals the existing 30 percent THC cap on cannabis flower and raises the THC cap for concentrate cannabis products from 60 percent to 70 percent, although concentrates above that threshold still could not be sold to the public by a licensed retailer or integrated licensee. It also changes the THC limit for a single package of a cannabis product from 100 milligrams to 110 milligrams, which is notably lower than the 200-milligram figure described in the Senate-approved summary.

The permit structure also appears broader in the introduced text. It authorizes the Cannabis Control Board to issue event permits for single events lasting no more than 24 hours, event administrator endorsements for approved recurring event locations, delivery permits for off-site delivery to adults 21 and older, and on-premises consumption permits for retailers that can meet meal-service and space requirements. Deliveries, under the introduced bill, would be limited to Vermont addresses and could only happen between 9:00 a.m. and 5:00 p.m.

Advertising rules would change too

The introduced bill would relax the audience threshold for paid third-party advertising, from no more than 15 percent under 21 to no more than 30 percent under 21, while still requiring health warnings and continuing restrictions on youth-oriented marketing. It would also eliminate the requirement that all ads be submitted to the Cannabis Control Board before dissemination, but it would prohibit advertising that states THC content or promotes one product as having higher THC than similar products.

Cannabis Taxes

Tax and local control are also part of the introduced package. The bill would lower the cannabis excise tax from 14 percent to 10 percent. It would require any municipality that had not yet voted on whether to permit licensed cannabis retailers to place that question on the 2026 general election ballot. And it would allow municipalities to condition local cannabis licenses on compliance with local bylaws or certain ordinances.

Cannabis Business Development Fund

There is also a business development piece that may matter to cultivators and smaller operators. The introduced version expands the Cannabis Business Development Fund so that tier 1 cultivators, tier 1 manufacturers, and businesses granted economic empowerment status could access low-interest loans and grants, in addition to social equity applicants. It also transfers $1 million from the General Fund to that fund in fiscal year 2027.

Bottom Line:

So the overall direction seems clear even if the details shifted as the bill advanced. Vermont lawmakers appear to be trying to loosen some consumer restrictions, create more ways for licensed businesses to sell and distribute cannabis, and adjust the economics of the regulated market. For adult consumers, that may mean higher legal purchase limits and more access options. For businesses, especially smaller ones, the delivery, event, and funding provisions could matter. For municipalities, the bill continues the balancing act between local control and statewide market access.

S.278 is not a minor cleanup bill. It is a broader rewrite of how Vermont wants parts of its cannabis market to function in the next phase of legalization.