A bill introduced today in Vermont’s Senate would eliminate criminal penalties for possessing and dispensing small amounts of drugs while directing cannabis tax revenue toward harm reduction services.

Vermont flag.
Senate Bill 120, filed by Senators Anya Vyhovsky (D), Martine Gulick (D), and Rebecca White (D), was read for the first time and referred to the Senate Committee on Judiciary today. If passed, the legislation would mark a significant shift in Vermont’s approach to drug policy, focusing on public health rather than criminalization.
The bill proposes the elimination of misdemeanor charges for possessing and dispensing what it defines as a “benchmark personal use supply” of regulated drugs. Instead of arrest and prosecution, individuals found in possession of small amounts would be provided with health screenings and referrals to available services. A new Drug Use Health and Safety Advisory Board would be established to determine the specific quantity limits for personal use.
SB 120 also creates the Community Care, Health, and Safety Special Fund, which would be financed by 40% of Vermont’s cannabis excise tax revenue and a portion of funds from opioid settlements. The money would be used for harm reduction services, including overdose prevention centers, drug-checking programs, and substance use treatment facilities. Additionally, 30% of the cannabis excise tax (up to $10 million annually) would be allocated for substance use prevention programs.
Supporters of the bill argue that criminalization has failed to curb drug use and has instead contributed to overdose deaths and barriers to treatment. The legislation highlights data showing that despite over 10,000 drug possession arrests in Vermont since 2010, fatal overdoses have continued to rise. Lawmakers also cite studies indicating that incarceration significantly increases the risk of fatal overdoses upon release.
For the full text of SB 120, click here.