Vermont has started taking prequalification applications from potential marijuana growers, retailers, product manufacturers and others as it prepares for a retail cannabis market to open this fall.

As of midday on Tuesday, 427 had applied for prequalification, including 66 potential retailers, according to James Pepper, chair of the state's Cannabis Control Board. The application process for licenses starts later, opening first for small growers and testing facilities on Friday, all cultivators on May 1, product manufacturers and wholesalers on July 1, and finally for retailers on Sept. 1, according to the board's website.

Republican Gov. Phil Scott on Friday also signed a bill into law that establishes fees for cannabis retailers and cultivators.

Vermont is among 18 states and Washington D.C. that have legalized cannabis for adults 21 and older, according to the Marijuana Policy Project. Currently, twelve states have retail cannabis sales for adults, the project said.

But Pepper cautioned that as in other states it will take time for Vermont to develop its supply chain including cannabis product manufacturers and testing facilities.

The prequalification process involves checking for criminal histories, as well as civil and potential administrative law adjudications, Pepper said. Since the prequalification process was announced, many financial institutions and insurers do not want to talk to anyone who is not prequalified, he said. [Read More @ AP.com]