Updates from Montpelier: Prevention Legislation
Funding for Substance Use Prevention is on the Chopping Block...again.
The current Vermont House budget bill included a cut of $795,000 to prevention funding. (This is funding that supports coalitions like BPHC and other prevention organizations to work at the community level on substance use prevention strategies). In 2022, Act 185 had appropriated $3,000,000 to the Department of Health’s Division of Substance Use Programs to support Substance Misuse Prevention work at the community level. The legislation noted these funds were a placeholder until cannabis excise tax dollars became available (likely not until at least 2026-27).
The house budget bill does not currently fund prevention coalitions through this funding source, and instead uses a combination of state general funds and opioid abatement funds at a reduced amount. VT Health Commissioner Dr. Mark Levine testified that this reduction was violating state law that mandated the funds for prevention. Dr. Levine also noted that the opioid abatement funds were never part of the initial strategy to fund substance misuse prevention coalition work, and would reduce the funding for harm reduction Initiatives.
Dr. Levine stressed the importance of using a best-practice model for funding substance use prevention. Vermont’s 2022 investments in prevention of Substance Use Disorder was to offset the increased risk from legalizing commercial cannabis use in Vermont. Dr. Levine shared that Vermont has been using an evidence-based public health model for prevention, but that trends in VT’s youth substance use rates have often reflected the availability of funding - showing reductions in youth use when prevention work receives more funding and stagnant or increasing use rates in areas that do not receive funding.
Bill to Ban Flavored Tobacco Products Was Vetoed by Governor Scott
S. 18 a bill to ban flavored tobacco products and e-liquids in VT was passed by Vermont legislators this session after much passionate testimony from health care providers, educators, youth, and prevention advocates about how the flavored products have contributed to the youth vaping epidemic we are seeing in VT. The bill was vetoed by Governor Scott on April 3, 2024. (Read his letter Here.) It takes a two-thirds majority in both the House and Senate to override a veto. The bill did originally pass both chambers by wide margins, but it did not meet that threshold. Last week, Democratic Senator Phil Baruth announced that the Senate would not attempt a veto override.
Misc. Cannabis Bill
H.612 is an act relating to miscellaneous cannabis amendments. It has a lot of stuff in it! Efforts to remove restrictions on cannabis potency were removed from the bill early in the session, Currently, it focuses on changes to the definition of hemp products, proposed to help address the proliferation of hemp derivatives that bypass federal law. It also proposes to allow commercial retailers to sell cannabis to patients with a medical cannabis card as part of the medical cannabis system. Retails would need to ensure patient confidentiality - possibly through separate entrances, reservations and curbside pickup or delivery. There are challenges because currently VTers can receive a medical cannabis card under the age of 21, but they cannot purchase or enter commercial cannabis under the age of 21. There are concerns from health care advocates that this may increase youth access to cannabis, as has been shown in other states. This would likely increase the number of locations where medical cannabis can be purchased, they anticipate this would increase medical cannabis patients, potentially moving over from the commercial system. Since medical products are not subject to taxation, significant revenue loss is anticipated in Fiscal Year 2026.
Regulation of Vermont’s Alcohol Industry
In January the session started off with testimony in House Government Operations and Military Affairs on the history of alcohol-based taxation in Vermont. While there is no legislation currently on the table, this issue will likely come up again in next year’s session. Legislative counsel to the committee identified that the last substantive increase to alcohol tax rates occurred in 1981, and that these rates did not account for inflation.
The bill that has gained some traction is H. 867 - An act relating to miscellaneous amendments to the laws governing alcoholic beverages and the Board of Liquor and Lottery. It is scheduled for more testimony this week in the Senate Committee on Economic Development, Housing and General Affairs. The bill would allow a wider range of retail sectors to apply for Special Venue Permits, to serve alcoholic beverages for special events one time over a 6-hour window.
Representative Donahue offered an amendment that would have prohibited retailers to place alcoholic beverages and non-alcoholic products in the same area, to reduce the impact of having alcoholic beverages highly visible to youth. The committee chose not to add it into the bill.Charles Martin, Director of Communications and Legislative Affairs for the Department of Liquor and Lottery (DLL), testified that DLL found they are struggling to regulate online sales and ensure lawful deliveries. Martin cited a consumer pilot study facilitated by DLL over the summer that found 100% of the online deliveries of alcoholic beverages they tracked were delivered unlawfully.
