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H.321
IntroducedbyRepresentativesBirongofVergennesandBoydenofCambridge
ReferredtoCommitteeon
Date:
Subject:Cannabis;cannabisestablishments
Statementofpurposeofbillasintroduced:Thisbillproposestoclarifythat
cannabispossessedunlawfullyinviolationofadministrativerulesadoptedby
theCannabisControlBoardmaybeseizedbylawenforcementandissubject
toforfeiture;torequirefingerprint-basedstateandnationalcriminalhistory
recordcheckonanypersonpriortoissuanceofacannabisestablishment
identificationcard;toamendthedefinitionof“hemp”tocomportwiththe
Title6definition;torequiretheBoardtoadoptrulesforcannabisretailers
regardingrequirementsandcriteriagoverninglicenseeapplicationstochange
ownership,control,orlocation;toauthorizetheBoardtorepeatcriminal
backgroundchecks;toestablishaprocedureforreceivershipofacannabis
establishmentforaperiodoftimeincasesofdeath,disability,bankruptcy,
insolvency,receivership,assignmentforthebenefitofcreditors,shareholderor
LLCmemberdisputes,licenseinterruption,orotherexceptionalcircumstances
renderingoneormoreownersincapableofperforming,orineligibleto
perform,thedutiesofalicensee;toestablishanewtrimandharvestservice
licensewithanannualfeeof$500.00;torequirecannabiscultivatorsto
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includeoncannabispackaginga“harvestedon”datereflectingthedatethe
cultivatorharvestedthecannabisanda“packedon”datereflectingthedatethe
productwaspackagedforsale;torequirecannabisretailersthatcollect
cannabisexcisetaxtoinformtheDepartmentofTaxesbeforetransferringthe
businesstoanewentity;andtocreateanewposition,EnforcementAttorney,
withintheCannabisControlBoard.
Anactrelatingtomiscellaneouscannabisamendments
ItisherebyenactedbytheGeneralAssemblyoftheStateofVermont:
Sec.1.7V.S.A.§ 832isamendedtoread:
§832.CANNABISPOSSESSEDUNLAWFULLYSUBJECTTOSEIZURE
ANDFORFEITURE
Cannabispossessedunlawfullyinviolationofthistitleoradministrative
rulesadoptedpursuanttothistitlemaybeseizedbylawenforcementandis
subjecttoforfeiture.
Sec.2.7V.S.A.§ 844isamendedtoread:
§844.AUTHORITYFORCRIMINALBACKGROUND CHECKS
(a)TheBoardshallestablishauseragreementwiththeVermontCrime
InformationCenterinaccordancewith20V.S.A.chapter117forthepurpose
ofobtainingVermontcriminalhistoryrecords,out-of-statecriminalhistory
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records,andcriminalhistoryrecordsfromtheFederalBureauofInvestigation
asrequiredbychapters33(cannabisestablishments)and37(medicalcannabis
dispensaries)ofthistitle.
(b)Afingerprint-basedstateandnationalcriminalhistoryrecordcheck
shallbeconductedforeachnaturalpersonpriortobeingissuedacannabis
establishmentidentificationcardpursuanttochapter33(cannabis
establishments)ofthistitleoramedicalcannabisdispensaryidentification
cardpursuanttochapter37(medicalcannabisdispensaries)ofthistitle.The
Boardmayrequirethatsuchrecordchecksbecompletedasacondition
precedenttolicenserenewal.
Sec.3.7V.S.A.§ 861(23)isamendedtoread:
(23)(A)“Hempproducts”or“hemp-infusedproducts”meansall
productswiththefederallydefinedtetrahydrocannabinolconcentrationlevel
forhempderivedfrom,ormadeby,processinghempplantsorplantpartsthat
arepreparedinaformavailableforcommercialsale,includingcosmetics,
personalcareproducts,foodintendedforanimalorhumanconsumption,cloth,
cordage,fiber,fuel,paint,paper,constructionmaterials,plastics,andany
productcontainingoneormorehemp-derivedcannabinoids,suchas
cannabidiol.
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(B)Notwithstandingsubdivision(A)ofthissubdivision(23),“hemp
products”and“hemp-infusedproducts”donotincludeanysubstance,
manufacturingintermediary,orproductthat:
(i)isprohibitedordeemedaregulatedcannabisproductby
administrativeruleoftheCannabisControlBoard;or
(ii)containsmorethan0.3percenttotaltetrahydrocannabinolona
dry-weightbasis.
(C)Ahemp-derivedproductorsubstancethatisexcludedfromthe
definitionof“hempproducts”or“hemp-infusedproducts”pursuantto
subdivision(B)ofthissubdivision(23)shallbeconsideredacannabisproduct
asdefinedby7V.S.A.§831(3);provided,however,thatapersonduly
licensedorregisteredbytheCannabisControlBoardlawfullymaypossess
suchproductsinconformitywiththeperson’slicenseorhempprocessor
registration.
Sec.4.7V.S.A.§ 881isamendedtoread:
§881.RULEMAKING;CANNABISESTABLISHMENTS
(a)TheBoardshalladoptrulestoimplementandadministerthischapterin
accordancewithsubdivisions(1)–(8)(9)ofthissubsection.
(1)Rulesconcerninganycannabisestablishmentshallinclude:
(A)theformandcontentoflicenseandrenewalapplications;
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(B)qualificationsforlicensurethataredirectlyanddemonstrably
relatedtotheoperationofacannabisestablishment,including:
(i)arequirementtosubmitanoperatingplan,whichshallinclude
informationconcerning:
(I)thetypeofbusinessorganization,theidentityofits
controllingownersandprincipals,andtheidentityofthecontrollingowners
andprincipalsofitsaffiliates;and
(II)thesources,amount,andnatureofitscapital,assets,and
financing;theidentityofitsfinanciers;andtheidentityofthecontrolling
ownersandprincipalsofitsfinanciers;
(ii)arequirementtofileanamendmenttoitsoperatingplaninthe
eventofasignificantchangeinorganization,operation,orfinancing;and
(iii)therequirementforafingerprint-basedcriminalhistory
recordcheckandregulatoryrecordcheckpursuanttosection883ofthistitle;
(C)oversightrequirements,includingprovisionstoensurethata
licensedestablishmentcomplieswithStateandfederalregulatoryrequirements
governinginsurance,securities,workers’compensation,unemployment
insurance,andoccupationalhealthandsafety;
(D)inspectionrequirements;
(E)recordstobekeptbylicenseesandtherequiredavailabilityofthe
records;
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(F)employmentandtrainingrequirements;
(G)securityrequirements,includinganyappropriatelighting,
physicalsecurity,video,andalarmrequirements;
(H)healthandsafetyrequirements;
(I)regulationofadditivestocannabisandcannabisproducts,
includingcannabidiolderivedfromhempandsubstancesthataretoxicor
designedtomaketheproductmoreaddictive,moreappealingtopersonsunder
21yearsofage,ortomisleadconsumers;
(J)proceduresforseed-to-saletraceabilityofcannabis,includingany
requirementsfortrackingsoftware;
(K)regulationofthestorageandtransportationofcannabis;
(L)sanitaryrequirements;
(M)proceduresfortherenewalofalicense,whichshallallow
renewalapplicationstobesubmittedupto90dayspriortotheexpirationof
thecannabisestablishment’slicense;
(N)proceduresforsuspensionandrevocationofalicense;
(O)requirementsforbankingandfinancialtransactions,including
provisionstoensurethattheBoard,theDepartmentofFinancialRegulation,
andfinancialinstitutionshaveaccesstorelevantinformationconcerning
licensedestablishmentstocomplywithStateandfederalregulatory
requirements;
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(P)disclosureoreligibilityrequirementsforafinancier,itsowners
andprincipals,anditsaffiliates,whichmayinclude:
(i)requirementstodiscloseinformationtoalicensed
establishment,theBoard,ortheDepartmentofFinancialRegulation;
(ii)aminimumagerequirementandarequirementtoconducta
backgroundcheckfornaturalpersons;
(iii)requirementstoensurethatafinanciercomplieswith
applicableStateandfederallawsgoverningfinancialinstitutions,licensed
lenders,andotherfinancialserviceproviders;and
(iv)anyotherrequirements,conditions,orlimitationsonthetype
oramountofloansorcapitalinvestmentsmadebyafinancieroritsaffiliates,
whichtheBoard,inconsultationwiththeDepartmentofFinancialRegulation,
determinesarenecessarytoprotectthepublichealth,safety,andgeneral
welfare;
(Q)policiesandproceduresforconductingoutreachandpromoting
participationintheregulatedcannabismarketbydiversegroupsofindividuals,
includingthosewhohavebeendisproportionatelyharmedbycannabis
prohibition;
(R)advertisingandmarketing;and
(S)requirementsforcannabiscontroltestingofhemp,hemp-infused
products,cannabis,andcannabisproducts;and
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(T)requirementsandcriteriagoverninglicenseeapplicationsto
changeownership,control,orlocation.
***
(9)Rulesconcerningtrimandharvestservicesshallinclude:
(A)requirementsforverificationofthelicensesofclients;
(B)essentialcontentandpermissibletermsofwrittenservice
contracts,includingprovisionsforsecurityanddiversionprevention;
(C)provisionstoensuresafeandlawfultransportationandlodging
oftravellingpersonnel;
(D)essentialcontentofemployeehealth,safety,andskillstraining,
includingfirstaidandrecognitionofcommonpestsandpathogens;
(E)requirementsappropriatetominimizetheriskofpestand
pathogentransmission;and
(F)proceduresfordocumentinglawfulcompensation.
***
Sec.5.7V.S.A.§ 883isamendedtoread:
§883.CRIMINALBACKGROUND RECORDCHECKS;APPLICANTS
(a)TheBoardshallobtainfromtheVermontCrimeInformationCentera
copyofafingerprint-basedVermontcriminalhistoryrecords,out-of-state
criminalhistoryrecords,andcriminalhistoryrecordsfromtheFederalBureau
ofInvestigationforeachlicenseapplicant,principalofanapplicant,and
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personwhocontrolsanapplicantwhoisanaturalperson.Checksmaybe
repeatedforgoodcauseorwithprudentfrequencyasdeterminedbytheBoard.
(b)TheBoardshalladoptrulesthatsetforthstandardsfordetermining
whetheranapplicantshouldbedeniedacannabisestablishmentlicense
becauseofhisorhertheapplicant’scriminalhistoryrecordbasedonfactors
thatdemonstratewhethertheapplicantpresentlyposesathreattopublicsafety
ortheproperfunctioningoftheregulatedmarket.Nonviolentdrugoffenses
shallnotautomaticallydisqualifyanapplicant.
(c)Notwithstandingsubsection(a)ofthissectionorsubsection844(b)of
thistitle,ifrequiredrecordsarenotreasonablyavailabletotheBoarddueto
circumstancesbeyonditscontrol,withtheconsentoftheapplicant,theBoard
mayacceptthird-partycriminalbackgroundcheckssubmittedbyanapplicant
foracannabisestablishmentlicenseorrenewalinlieuofobtainingtherecords
fromtheVermontCrimeInformationCenteracopyoftheperson’sVermont
fingerprint-basedcriminalhistoryrecords,out-of-statecriminalhistory
records,andcriminalhistoryrecordsfromtheFederalBureauofInvestigation
fromareputablecommercialprovider.Anysuchthird-partybackground
checkshall:
(1)beconductedbyathird-partyconsumerreportingagencyor
backgroundscreeningcompanythatisincompliancewiththefederalFair
CreditReportingAct;and
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(2)includeamultistateandmulti-jurisdictioncriminalrecordlocator.
Consumercreditscoresshallnotbeabasisforlicensedenial.
Sec.6.7V.S.A.§ 884isamendedtoread:
§884.CANNABISESTABLISHMENTIDENTIFICATIONCARD
(a)Everyowner,principal,andemployeeofacannabisestablishmentshall
obtainanidentificationcardissuedbytheBoard.Apersonmayapplyforan
identificationcardpriortoobtainingemploymentwithalicensee.An
employeeidentificationcardshallauthorizethepersontoworkforany
licensee.
(b)(1)(A)Priortoissuingtheidentificationcardtoanownerorprincipalof
acannabisestablishment,theBoardshallobtainfromtheVermontCrime
InformationCenteracopyoftheperson’sVermontfingerprint-basedcriminal
historyrecords,out-of-statecriminalhistoryrecords,andcriminalhistory
recordsfromtheFederalBureauofInvestigation.
(B)Priortoissuingtheidentificationcardtoanemployeeofa
cannabisestablishment,theBoardshallobtainacopyofafingerprint-based
identityhistorysummaryrecordfromtheFederalBureauofInvestigation.
(2)TheBoardshalladoptrulesthatsetforthstandardsfordetermining
whetherapersonshouldbedeniedacannabisestablishmentidentificationcard
becauseofhisorhertheperson’scriminalhistoryrecordbasedonfactorsthat
demonstratewhethertheapplicantpresentlyposesathreattopublicsafetyor
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theproperfunctioningoftheregulatedmarket.Nonviolentdrugoffensesshall
notautomaticallydisqualifyanapplicant.
(c)Onceanidentificationcardapplicationhasbeensubmitted,apersonthe
Board,forgoodcause,mayserveissueatemporarypermitauthorizingthe
applicanttoserveasanemployeeofacannabisestablishmentpendingthe
backgroundcheck,providedthepersonissupervisedinhisorherdutiesby
someonewhoisacardholder.TheBoardshallissueatemporarypermittothe
personforthispurpose,whichshallexpireupontheissuanceofthe
identificationcardordisqualificationofthepersoninaccordancewiththis
sectionGoodcauseexistsif,amongotherreasons,theapplicationis
reasonablyexpectedtotakemorethan12daystoprocess.
(d)Anidentificationcardshallexpireoneyearafteritsissuanceor,inthe
caseofownersandprincipals,upontheexpirationofthecannabis
establishment’slicense,whicheveroccursfirst.
Sec.7.7V.S.A.§ 886isaddedtoread:
§ 886.RECEIVERSHIP;SPECIALPERMITTING;IMMUNITY
(a)Whenacannabisestablishmentbecomesdistressed,itmayabruptly
loseauthorityorabilitytopossesscommercialquantitiesofcannabis.Itisthe
purposeofthissectiontoempowertheCivilDivisionoftheSuperiorCourt
andtheBoardtooverseetheorderlyunwindingofcannabisestablishments,
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includinglawfuldispositionofinventoryinlieuofforfeiture,incaseof
functionaldistressorinterruptioninactivelicensure.
(b)(1)Anindividualmaybeappointedasreceiver,representative,executor,
administrator,guardian,conservator,trustee,orassignee,totemporarily
operateacannabisestablishmentonthelicensedpremisesforaperiodoftime
determinedbytheBoardincasesofdeath,disability,bankruptcy,insolvency,
receivership,assignmentforthebenefitofcreditors,shareholderorLLC
memberdisputes,licenseinterruption,orotherexceptionalcircumstances
renderingoneormoreownersincapableofperforming,orineligibleto
perform,thedutiesofalicensee.Suchappointeeshallbeatleast21yearsof
age.
(2)(A)Suchappointeeshallnotbepermittedtoconductlicensed
activitieswithouttheexpressauthorizationoftheBoard,whichmaybe
granteduponsubmissionandapprovalofawrittenrequestfortheauthorityto
temporarilyconductlicensedactivities.Thewrittenrequestshallinclude
informationordisclosuresrequiredbytheBoard,including:
(i)name;
(ii)valididentification;
(iii)phonenumber;
(iv)mailingaddress;
(v)emailaddress;
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(vi)SocialSecuritynumber;
(vii)thenameofthepersononwhosebehalftheappointeeis
appointed;
(viii)proofthatsuchappointeeisthelegalreceiver,
representative,executor,administrator,guardian,conservator,trustee,or
assignee,and;
(ix)anydirectorindirectinterestsheldbythatappointeeina
cannabislicense,registrationorpermit.
(B)TheBoardmayadoptrulesgoverningappointmentandthe
processandqualifications.
(3)Authorizationtoconductlicensedactivitiesbytheappointeeis
conditionedoncompliancewiththeseregulations,includingrestrictionson
ownershipandotherinterests,approvalbytheBoard,andtheauthorization
shallnotconstituteaguaranteeoflicenseissuanceorrenewalbytheBoard.
(4)Anylicenseeorpersonwhofiles,oragainstwhomisfiled,any
actionorproceeding,orwhoseeksanappointment,assetforthinsubdivision
(1)ofthissubsection,isrequiredtoservetheBoardwithoriginalnoticeofthe
actionorproceedingandprovidetheBoardwithopportunitytobeheard
regardingtheappointment.Suchnoticeshallbeprovidedtoemployeesupon
commencementofsuchproceedingforareceivership.Alicenseesurrendering
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itslicenseshallprovideitsemployeesanylawfullyrequiredwarningsof
closuresandlayoffs.
(c)Whennolicensedcustodiancanbefoundtotakecustodyofor
transportcannabisorcannabisproducts,theBoard,initssolediscretion,may
issueaspecialpermittemporarilyauthorizinganunlicenseddesigneeof
suitableabilityandjudgmenttopossess,transport,ordisposeofcannabisand
cannabisproductsasspecifiedbythetermsofthepermit.Thepermitshallbe
printedonofficialBoardletterhead,bearthesignatureoftheChairofthe
Board,stateclearlyameansofpromptauthenticationbylawenforcementand
licensees,andspecifystartandenddatesandtimes.
(d)Apersonactingasadulyappointedreceiverorinconformitywiththe
termsofaspecialBoardpermitissuedpursuanttosubsection(c)ofthis
sectionshallbeimmunefromcivilandcriminalliabilityinrelationto
possession,transportation,ortransferofcannabiswithinthebordersofthis
State.TheBoardshallnotbeliableforeconomiclossesresultingfrom
forfeiture,seizure,sequestration,salestoppage,transportation,storage,or
destructionofcannabisorcannabisproducts.
Sec.8.7V.S.A.§ 901isamendedtoread:
§901.GENERALPROVISIONS
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(a)Exceptasotherwisepermittedbylaw,apersonshallnotengageinthe
cultivation,preparation,processing,packaging,transportation,testing,orsale
ofcannabisorcannabisproductswithoutobtainingalicensefromtheBoard.
(b)Alllicensesshallbevalidforoneyearandexpireatmidnightonthe
eveoftheanniversaryofthedatethelicensewasissued.Alicenseemay
applytorenewthelicenseannually.
(c)Applicationsforlicensesandrenewalsshallbesubmittedonforms
providedbytheBoardandshallbeaccompaniedbythefeesprovidedforin
section910ofthistitle.
(d)(1)Thereshallbeseveneighttypesoflicensesavailable:
(A)acultivatorlicense;
(B)apropagatorlicense;
(C)awholesalerlicense;
(D)aproductmanufacturerlicense;
(E)aretailerlicense;
(F)atestinglaboratorylicense;and
(G)atrimandharvestservicelicense;and
(H)anintegratedlicense.
(2)(A)TheBoardshalldeveloptiersfor:
(i)cultivatorlicensesbasedontheplantcanopysizeofthe
cultivationoperationorplantcountforbreedingstock;and
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(ii)retailerlicenses.
(B)TheBoardmaydeveloptiersforothertypesoflicenses.
(3)(A)Exceptasprovidedinsubdivisions(B)and(C)ofthis
subdivision(3),anapplicantanditsaffiliatesmayobtainamaximumofone
typeofeachtypeoflicenseasprovidedinsubdivisions(1)(A)–(F)(G)ofthis
subsection(d).Eachlicenseshallpermitonlyonelocationofthe
establishment,howeveratrimandharvestservicelicenseemayprovide
servicesatmultipleotherlicensedcannabisestablishments.
(B)Anapplicantanditsaffiliatesthatcontroladispensaryregistered
onApril1,2022mayobtainoneintegratedlicenseprovidedinsubdivision
(1)(G)(H)ofthissubsection(d)oramaximumofoneofeachtypeoflicense
providedinsubdivisions(1)(A)–(F)ofthissubsection(d).Anintegrated
licenseemaynotholdaseparatecultivator,propagator,wholesaler,product
manufacturer,retailer,ortestinglaboratorylicense,andnoapplicantorits
affiliatesthatcontroladispensaryshallholdmorethanoneintegratedlicense.
Anintegratedlicenseshallpermitonlyonelocationforeachofthetypesof
activitiespermittedbythelicense:cultivation,propagator,wholesale
operations,productmanufacturing,retailsales,andtesting.
(C)Anapplicantanditsaffiliatesmayobtainmultipletesting
laboratorylicenses.
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(e)Adispensarythatobtainsaretailerlicenseoranintegratedlicense
pursuanttothischaptershallmaintainthedispensaryandretailoperationsina
mannerthatprotectspatientandcaregiverprivacyinaccordancewithrules
adoptedbytheBoard.
(f)Eachlicenseeshallobtainandmaintaincommercialgeneralliability
insuranceinaccordancewithrulesadoptedbytheBoard.Failuretoprovide
proofofinsurancetotheBoard,asrequired,mayresultinrevocationofthe
license.
(g)Alllicensesmayberenewedaccordingtoproceduresadoptedthrough
rulemakingbytheBoard.
(h)[Repealed.]
Sec.9.7V.S.A.§ 904isamendedtoread:
§904.CULTIVATORLICENSE
***
(d)Eachcultivatorshallcreatepackagingforitscannabis.
(1)Packagingshallinclude:
(A)Thenameandregistrationnumberofthecultivator.
(B)Thestrainandvarietyofcannabiscontained.
(C)Thepotencyofthecannabisrepresentedbytheamountof
tetrahydrocannabinolandcannabidiolinmilligramstotalandperserving.
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(D)A“producedon”datereflectingthedatethatthecultivator
finishedproducingthecannabis“harvestedon”datereflectingthedatethe
cultivatorharvestedthecannabisanda“packedon”datereflectingthedatethe
productwaspackagedforsale.
(E)AppropriatewarningsasprescribedbytheBoardinrule.
(F)Anyadditionalrequirementscontainedinrulesadoptedbythe
Boardinaccordancewiththischapter.Rulesshalltakeintoconsiderationthat
differentlabelingrequirementsmaybeappropriatedependingonwhetherthe
cannabisissoldtoawholesaler,productmanufacturer,orretailer.
(2)Packagingshallnotbedesignedtoappealtopersonsunder21years
ofage.
***
Sec.10.7V.S.A.§ 904bisamendedtoread:
§904b.PROPAGATIONCULTIVATORLICENSE
(a)Apropagationcultivatorlicensedunderthissectionmay:
(1)cultivatenotmorethan3,500squarefeetofcannabisclones,
immaturecannabisplants,ormaturecannabisplants;
(2)test,transport,andsellcannabisclonesandimmaturecannabis
plantstolicensedcultivatorsandretailers;and
(3)test,transport,andsellcannabisseedsthatmeetthefederal
definitionofhemptoalicensedcultivatororretailerortothepublic.
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(b)Alicensedpropagationcultivatorshallnotcultivatematurecannabis
plantsforthepurposeofproducing,harvesting,transferring,orselling
cannabisflowerforortoanyperson.
Sec.11.7V.S.A.§ 904cisaddedtoread:
§ 904c.TRIMANDHARVESTSERVICELICENSE
Atrimandharvestservicelicensedunderthissectionmaycontractwith
cultivatorslicensedundersection904or904aofthischapter,onaseasonalor
temporarybasis,tosupplyspecifiedcannabismaintenanceserviceswithinthe
scopeofeachclient-cultivator’slicense.
Sec.12.7V.S.A.§ 910isamendedtoread:
§910.CANNABISESTABLISHMENTFEESCHEDULE
Thefollowingfeesshallapplytoeachpersonorproductlicensedbythe
Board:
***
(8)Trimandharvestservices.Trimandharvestservicesshallbe
assessedanannuallicensingfeeof$500.00.
(9)Employees.CannabisestablishmentslicensedbytheBoardshallbe
assessedanannualabienniallicensingfeeof$50.00foreachemployee.
(9)(10)Products.CannabisestablishmentslicensedbytheBoardshall
beassessedanannualabiennialproductlicensingfeeof$50.00foreverytype
ofcannabisandcannabisproductthatissoldinaccordancewiththischapter.
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TheBoardmayissuelongerproductregistrations,proratedatthesamecost
peryear,forproductsitdeemslowriskandshelfstable.Suchproductsmay
bedefinedanddistinguishedinreadilyaccessiblepublishedguidance.
(10)(11)Locallicensingfees.Cannabisestablishmentslicensedbythe
Boardshallbeassessedanannuallocallicensingfeeof$100.00inadditionto
eachfeeassessedundersubdivisions(1)–(7)ofthissection.Locallicensing
feesshallbedistributedtothemunicipalityinwhichthecannabis
establishmentislocatedpursuanttosection846(c)ofthistitle.
(11)(12)One-timefeesApplicationfee.
(A)Allapplicantsforacannabisestablishmentlicenseshallbe
assessedaninitialone-timeapplicationfeeof$1,000.00.
(B)Anapplicantmaychoosetobeassessedaninitialone-timeintent-
to-applyfeeof$500.00.Iftheapplicantsubsequentlyseeksalicensewithin
oneyearafterpayingtheintent-to-applyfee,theinitialone-timeapplication
feeof$1,000.00shallbereducedby$500.00.
Sec.13.32V.S.A.§ 3260isamendedtoread:
§3260.BULKSALES
(a)Wheneveraperson(transferor)requiredtocollectorwithholdatrust
taxpursuanttochapter151,207,225,or233ofthistitleshallmakeanysale,
transfer,long-termlease,orassignment(transfer)inbulkofanypartorthe
wholeoftheassetsofabusiness,otherwisethanintheordinarycourseofthe
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business,thepurchaser,transfereeorassignee(transferee)shall,atleast10
daysbeforetakingpossessionofthesubjectofthetransferorbeforepayment
thereforeifearlier,notifytheCommissionerinwritingoftheproposedsale
andoftheprice,terms,andconditionsthereofwhetherornotthetransferor
hasrepresentedtoorinformedthetransfereethatthetransferorowesanytrust
taxpursuanttochapter151,207,225,or233andwhetherornotthetransferee
hasknowledgethatsuchtaxesareowed,andwhetheranytaxesareinfact
owed.
(b)WheneverthetransfereeshallfailtogivenoticetotheCommissioner
asrequiredbysubsection(a)ofthissection,orwhenevertheCommissioner
shallinformthetransfereethatapossibleclaimfortaxexists,anysumsof
money,property,orchosesinaction,orotherconsideration,whichthe
transfereeisrequiredtotransferovertoorforthetransferor,shallbesubjectto
afirstpriorityrightandlienforanytaxestheretoforeorthereafterdetermined
tobeduefromthetransferortotheState,andthetransfereeisforbiddento
transfertheconsiderationtoorforthetransferortotheextentoftheamountof
theState’sclaim.
(c)Forfailuretocomplywiththissection,thetransfereeshallbe
personallyliableforthepaymenttotheStateofanytaxestheretoforeor
thereafterdeterminedtobeduetotheStatefromthetransferorandtheliability
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maybeassessedandenforcedinthesamemannerastheliabilityfortaxunder
chapter151,207,225,or233.
Sec.14.2022ActsandResolvesNo.185,SecsE.240.5andE.240.6are
amendedtoread:
Sec.E.240.5. [Deleted.]
Sec.E.240.6. [Deleted.]
Sec.15.2022ActsandResolvesNo.185,Sec.H.100isamendedtoread:
Sec.H.100. EFFECTIVEDATES
***
(b) [Deleted.]
***
Sec.16.ISSUANCEOFRETAILERLICENSES
Notwithstandinganyotherprovisionoflaw,theCannabisControlBoard
shallnotissueanynewretailerlicensesuntilJuly1,2027,providedthat:
(1)annualrenewalsofretailerlicensesthatwereoriginallyissuedprior
toFebruary1,2025maybeissued;
(2)amendmentstoandearlyrenewalsofretailerlicensesthatwere
originallyissuedpriortoFebruary1,2025maybeissuedinthecaseof
changesinlocationofthelicensedretailerwheretheproposednewlocation
wouldbepermissibleasanewlicensedlocationpursuanttorulesadoptedby
theBoardunder7V.S.A.§ 881(a)(5)(F);
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(3)amendmentstoandearlyrenewalsofretailerlicensesthatwere
originallyissuedpriortoFebruary1,2025maybeissuedinthecaseof
changesincontrolofthelicensedretailer;and
(4)theBoardmayissuenewretailerlicensespriortoJuly1,2027if,at
thetimeofsuchissuance,thenumberoflicensedretailersisfewerthanthe
numberof80locations.
Sec.17.CANNABISCONTROLBOARD;ENFORCEMENT ATTORNEY;
POSITION
Onefull-time,permanent,exemptpositionofEnforcementAttorneyis
authorizedintheCannabisControlBoardinfiscalyear2025.
Sec.18.EFFECTIVEDATE
Thisactshalltakeeffectonpassage.
Sec.1.7V.S.A.§ 832isamendedtoread:
§832.CANNABISPOSSESSEDUNLAWFULLYSUBJECTTOSEIZURE
ANDFORFEITURE
Cannabispossessedunlawfullyinviolationofthistitleoradministrative
rulesadoptedpursuanttothistitlemaybeseizedbylawenforcementandis
subjecttoforfeiture.
Sec.2.7V.S.A.§ 844isamendedtoread:
§844.AUTHORITYFORCRIMINALBACKGROUNDCHECKS
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(a)TheBoardshallestablishauseragreementwiththeVermontCrime
InformationCenterinaccordancewith20V.S.A.chapter117forthepurpose
ofobtainingVermontcriminalhistoryrecords,out-of-statecriminalhistory
records,andcriminalhistoryrecordsfromtheFederalBureauofInvestigation
asrequiredbychapters33(cannabisestablishments)and37(medical
cannabisdispensaries)ofthistitle.
(b)Afingerprint-basedstateandnationalcriminalhistoryrecordcheck
shallbeconductedforeachnaturalpersonpriortobeingissuedacannabis
establishmentidentificationcardpursuanttochapter33(cannabis
establishments)ofthistitleoramedicalcannabisdispensaryidentification
cardpursuanttochapter37(medicalcannabisdispensaries)ofthistitle.The
Boardmayrequirethatsuchrecordchecksbecompletedasacondition
precedenttolicenserenewal.
Sec.3.7V.S.A.§ 861(23)isamendedtoread:
(23)(A)“Hempproducts”or“hemp-infusedproducts”meansall
productswiththefederallydefinedtetrahydrocannabinolconcentrationlevel
forhempderivedfrom,ormadeby,processinghempplantsorplantpartsthat
arepreparedinaformavailableforcommercialsale,includingcosmetics,
personalcareproducts,foodintendedforanimalorhumanconsumption,
cloth,cordage,fiber,fuel,paint,paper,constructionmaterials,plastics,and BILLASPASSEDBYTHEHOUSE H.321
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anyproductcontainingoneormorehemp-derivedcannabinoids,suchas
cannabidiol.
(B)Notwithstandingsubdivision(A)ofthissubdivision(23),“hemp
products”and“hemp-infusedproducts”donotincludeanysubstance,
manufacturingintermediary,orproductthat:
(i)isprohibitedordeemedaregulatedcannabisproductby
administrativeruleoftheCannabisControlBoard;or
(ii)containsmorethan0.3percenttotaltetrahydrocannabinolon
adry-weightbasis.
(C)Ahemp-derivedproductorsubstancethatisexcludedfromthe
definitionof“hempproducts”or“hemp-infusedproducts”pursuantto
subdivision(B)ofthissubdivision(23)shallbeconsideredacannabisproduct
asdefinedbysubdivision831(3)ofthistitle;provided,however,thataperson
dulylicensedorregisteredbytheCannabisControlBoardlawfullymay
possesssuchproductsinconformitywiththeperson’slicenseorhemp
processorregistration.
Sec.4.7V.S.A.§ 881isamendedtoread:
§881.RULEMAKING;CANNABISESTABLISHMENTS
(a)TheBoardshalladoptrulestoimplementandadministerthischapter
inaccordancewithsubdivisions(1)–(8)(9)ofthissubsection.
(1)Rulesconcerninganycannabisestablishmentshallinclude: BILLASPASSEDBYTHEHOUSE H.321
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(A)theformandcontentoflicenseandrenewalapplications;
(B)qualificationsforlicensurethataredirectlyanddemonstrably
relatedtotheoperationofacannabisestablishment,including:
(i)arequirementtosubmitanoperatingplan,whichshallinclude
informationconcerning:
(I)thetypeofbusinessorganization,theidentityofits
controllingownersandprincipals,andtheidentityofthecontrollingowners
andprincipalsofitsaffiliates;and
(II)thesources,amount,andnatureofitscapital,assets,and
financing;theidentityofitsfinanciers;andtheidentityofthecontrolling
ownersandprincipalsofitsfinanciers;
(ii)arequirementtofileanamendmenttoitsoperatingplaninthe
eventofasignificantchangeinorganization,operation,orfinancing;and
(iii)therequirementforafingerprint-basedcriminalhistory
recordcheckandregulatoryrecordcheckpursuanttosection883ofthistitle;
(C)oversightrequirements,includingprovisionstoensurethata
licensedestablishmentcomplieswithStateandfederalregulatoryrequirements
governinginsurance,securities,workers’compensation,unemployment
insurance,andoccupationalhealthandsafety;
(D)inspectionrequirements; BILLASPASSEDBYTHEHOUSE H.321
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(E)recordstobekeptbylicenseesandtherequiredavailabilityofthe
records;
(F)employmentandtrainingrequirements;
(G)securityrequirements,includinganyappropriatelighting,
physicalsecurity,video,andalarmrequirements;
(H)healthandsafetyrequirements;
(I)regulationofadditivestocannabisandcannabisproducts,
includingcannabidiolderivedfromhempandsubstancesthataretoxicor
designedtomaketheproductmoreaddictive,moreappealingtopersonsunder
21yearsofage,ortomisleadconsumers;
(J)proceduresforseed-to-saletraceabilityofcannabis,including
anyrequirementsfortrackingsoftware;
(K)regulationofthestorageandtransportationofcannabis;
(L)sanitaryrequirements;
(M)proceduresfortherenewalofalicense,whichshallallow
renewalapplicationstobesubmittedupto90dayspriortotheexpirationof
thecannabisestablishment’slicense;
(N)proceduresforsuspensionandrevocationofalicense;
(O)requirementsforbankingandfinancialtransactions,including
provisionstoensurethattheBoard,theDepartmentofFinancialRegulation,
andfinancialinstitutionshaveaccesstorelevantinformationconcerning BILLASPASSEDBYTHEHOUSE H.321
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licensedestablishmentstocomplywithStateandfederalregulatory
requirements;
(P)disclosureoreligibilityrequirementsforafinancier,itsowners
andprincipals,anditsaffiliates,whichmayinclude:
(i)requirementstodiscloseinformationtoalicensed
establishment,theBoard,ortheDepartmentofFinancialRegulation;
(ii)aminimumagerequirementandarequirementtoconducta
backgroundcheckfornaturalpersons;
(iii)requirementstoensurethatafinanciercomplieswith
applicableStateandfederallawsgoverningfinancialinstitutions,licensed
lenders,andotherfinancialserviceproviders;and
(iv)anyotherrequirements,conditions,orlimitationsonthetype
oramountofloansorcapitalinvestmentsmadebyafinancieroritsaffiliates,
whichtheBoard,inconsultationwiththeDepartmentofFinancialRegulation,
determinesarenecessarytoprotectthepublichealth,safety,andgeneral
welfare;
(Q)policiesandproceduresforconductingoutreachandpromoting
participationintheregulatedcannabismarketbydiversegroupsof
individuals,includingthosewhohavebeendisproportionatelyharmedby
cannabisprohibition;
(R)advertisingandmarketing;and BILLASPASSEDBYTHEHOUSE H.321
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(S)requirementsforcannabiscontroltestingofhemp,hemp-infused
products,cannabis,andcannabisproducts;and
(T)requirementsandcriteriagoverninglicenseeapplicationsto
changeownership,control,orlocation.
***
(5)Rulesconcerningretailersshallinclude:
***
(F)locationorsitingrequirementsthatincreasethegeographic
distributionofnewcannabisretailestablishmentsbasedonregional
population,andmarketneeds,andcommunityinput;and
***
(9)Rulesconcerningtrimandharvestservicesshallinclude:
(A)requirementsforverificationofthelicensesofclients;
(B)essentialcontentandpermissibletermsofwrittenservice
contracts,includingprovisionsforsecurityanddiversionprevention;
(C)provisionstoensuresafeandlawfultransportationandlodging
oftravellingpersonnel;
(D)essentialcontentofemployeehealth,safety,andskillstraining,
includingfirstaidandrecognitionofcommonpestsandpathogens;
(E)requirementsappropriatetominimizetheriskofpestand
pathogentransmission;and BILLASPASSEDBYTHEHOUSE H.321
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(F)proceduresfordocumentinglawfulcompensation.
***
Sec.5.7V.S.A.§ 883isamendedtoread:
§883.CRIMINALBACKGROUNDRECORDCHECKS;APPLICANTS
(a)TheBoardshallobtainfromtheVermontCrimeInformationCentera
copyofafingerprint-basedVermontcriminalhistoryrecords,out-of-state
criminalhistoryrecords,andcriminalhistoryrecordsfromtheFederalBureau
ofInvestigationforeachlicenseapplicant,principalofanapplicant,and
personwhocontrolsanapplicantwhoisanaturalperson.Checksmaybe
repeatedforgoodcauseorwithprudentfrequencyasdeterminedbytheBoard.
(b)TheBoardshalladoptrulesthatsetforthstandardsfordetermining
whetheranapplicantshouldbedeniedacannabisestablishmentlicense
becauseofhisorhertheapplicant’scriminalhistoryrecordbasedonfactors
thatdemonstratewhethertheapplicantpresentlyposesathreattopublicsafety
ortheproperfunctioningoftheregulatedmarket.Nonviolentdrugoffenses
shallnotautomaticallydisqualifyanapplicant.
(c)Notwithstandingsubsection(a)ofthissectionorsubsection844(b)of
thistitle,ifrequiredrecordsarenotreasonablyavailabletotheBoarddueto
circumstancesbeyonditscontrol,withtheconsentoftheapplicant,theBoard
mayacceptthird-partycriminalbackgroundcheckssubmittedbyanapplicant
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fromtheVermontCrimeInformationCenteracopyoftheperson’sVermont
fingerprint-basedcriminalhistoryrecords,out-of-statecriminalhistory
records,andcriminalhistoryrecordsfromtheFederalBureauofInvestigation
fromareputablecommercialprovider.Anysuchthird-partybackgroundcheck
shall:
(1)beconductedbyathird-partyconsumerreportingagencyor
backgroundscreeningcompanythatisincompliancewiththefederalFair
CreditReportingAct;and
(2)includeamultistateandmulti-jurisdictionmultijurisdictioncriminal
recordlocator.Consumercreditscoresshallnotbeabasisforlicensedenial.
Sec.6.7V.S.A.§ 884isamendedtoread:
§884.CANNABISESTABLISHMENTIDENTIFICATIONCARD
(a)Everyowner,principal,andemployeeofacannabisestablishmentshall
obtainanidentificationcardissuedbytheBoard.Apersonmayapplyforan
identificationcardpriortoobtainingemploymentwithalicensee.An
employeeidentificationcardshallauthorizethepersontoworkforany
licensee.
(b)(1)(A)Priortoissuingtheidentificationcardtoanownerorprincipal
ofacannabisestablishment,theBoardshallobtainfromtheVermontCrime
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historyrecords,out-of-statecriminalhistoryrecords,andcriminalhistory
recordsfromtheFederalBureauofInvestigation.
(B)Priortoissuingtheidentificationcardtoanemployeeofa
cannabisestablishment,theBoardshallobtainacopyofafingerprint-based
identityhistorysummaryrecordfromtheFederalBureauofInvestigation.
(2)TheBoardshalladoptrulesthatsetforthstandardsfordetermining
whetherapersonshouldbedeniedacannabisestablishmentidentification
cardbecauseofhisorhertheperson’scriminalhistoryrecordbasedon
factorsthatdemonstratewhethertheapplicantpresentlyposesathreatto
publicsafetyortheproperfunctioningoftheregulatedmarket.Nonviolent
drugoffensesshallnotautomaticallydisqualifyanapplicant.
(c)Onceanidentificationcardapplicationhasbeensubmitted,aperson
theBoard,forgoodcause,mayserveissueatemporarypermitauthorizingthe
applicanttoserveasanemployeeofacannabisestablishmentpendingthe
backgroundcheck,providedthepersonissupervisedinhisorherdutiesby
someonewhoisacardholder.TheBoardshallissueatemporarypermittothe
personforthispurpose,whichshallexpireupontheissuanceofthe
identificationcardordisqualificationofthepersoninaccordancewiththis
sectionGoodcauseexistsif,amongotherreasons,theapplicationis
reasonablyexpectedtotakemorethan12daystoprocess. BILLASPASSEDBYTHEHOUSE H.321
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(d)Anidentificationcardshallexpireoneyearafteritsissuanceor,inthe
caseofownersandprincipals,upontheexpirationofthecannabis
establishment’slicense,whicheveroccursfirst.
Sec.7.7V.S.A.§ 886isaddedtoread:
§ 886.INCAPACITYORDISTRESS;SPECIALPERMITTING;
IMMUNITY
(a)ItisthepurposeofthissectiontoauthorizetheBoardtoeffectively
overseecannabisestablishmentsandthepersonsauthorizedtooperatesuch
establishmentsincaseofincapacityofaprincipal,dysfunction,operating
distress,interruptioninlicensure,abruptclosure,orjudicialintervention
includingreceivership.
(b)TheBoardmayissueaspecialpermittemporarilyauthorizinga
licensedorunlicenseddesigneeofsuitableabilityandjudgmenttotemporarily
operateacannabisestablishment,ortopossess,transport,ordisposeof
cannabisandcannabisproducts,asspecifiedbythetermsofthepermit.The
permitshallbeprintedonofficialBoardletterhead,bearthesignatureofthe
ChairoftheBoard,stateclearlyameansofpromptauthenticationbylaw
enforcementandlicensees,andspecifystartandenddatesandtimes.A
person’seligibilityforapermitunderthissubsection(b)shallnotbelimited
bysubdivision901(d)(3)ofthistitle. BILLASPASSEDBYTHEHOUSE H.321
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(c)Apersonactinginconformitywiththetermsandscopeofaspecial
permitissuedpursuanttosubsection(b)ofthissectionshallbeimmunefrom
civilandcriminalliabilityinrelationtopossession,transportation,ortransfer
ofcannabiswithinthebordersofthisState.TheBoardshallnotbeliablefor
economiclossesresultingfromforfeiture,seizure,sequestration,salestoppage,
transportation,storage,ordestructionofcannabisorcannabisproducts.
(d)Ifappropriatetofacilitatejudicialproceedingsinvolvingacannabis
establishmentoritsprincipals,includinganactionforreceivership,aState
courtofcompetentjurisdictionmayrequestthattheBoarddeterminewhether
apersonissuitedbybackgroundandqualificationstoholdaspecialpermit
issuedpursuanttosubsection(b)ofthissectionforapurposespecifiedbythe
court.Inthealternative,thecourtmayaskthattheBoardrecommendsuch
person.
Sec.8.7V.S.A.§ 901isamendedtoread:
§901.GENERALPROVISIONS
(a)Exceptasotherwisepermittedbylaw,apersonshallnotengageinthe
cultivation,preparation,processing,packaging,transportation,testing,orsale
ofcannabisorcannabisproductswithoutobtainingalicensefromtheBoard.
(b)Alllicensesshallbevalidforoneyearandexpireatmidnightonthe
eveoftheanniversaryofthedatethelicensewasissued.Alicenseemayapply
torenewthelicenseannually. BILLASPASSEDBYTHEHOUSE H.321
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(c)Applicationsforlicensesandrenewalsshallbesubmittedonforms
providedbytheBoardandshallbeaccompaniedbythefeesprovidedforin
section910ofthistitle.
(d)(1)Thereshallbeseveneighttypesoflicensesavailable:
(A)acultivatorlicense;
(B)apropagatorlicense;
(C)awholesalerlicense;
(D)aproductmanufacturerlicense;
(E)aretailerlicense;
(F)atestinglaboratorylicense;and
(G)atrimandharvestservicelicense;and
(H)anintegratedlicense.
(2)(A)TheBoardshalldeveloptiersfor:
(i)cultivatorlicensesbasedontheplantcanopysizeofthe
cultivationoperationorplantcountforbreedingstock;and
(ii)retailerlicenses.
(B)TheBoardmaydeveloptiersforothertypesoflicenses.
(3)(A)Exceptasprovidedinsubdivisions(B)and(C)ofthissubdivision
(3),anapplicantanditsaffiliatesmayobtainamaximumofonetypeofeach
typeoflicenseasprovidedinsubdivisions(1)(A)–(F)(G)ofthissubsection(d).
Eachlicenseshallpermitonlyonelocationoftheestablishment,howevera BILLASPASSEDBYTHEHOUSE H.321
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trimandharvestservicelicenseemayprovideservicesatmultipleother
licensedcannabisestablishments.
(B)Anapplicantanditsaffiliatesthatcontroladispensaryregistered
onApril1,2022mayobtainoneintegratedlicenseprovidedinsubdivision
(1)(G)(H)ofthissubsection(d)oramaximumofoneofeachtypeoflicense
providedinsubdivisions(1)(A)–(F)ofthissubsection(d).Anintegrated
licenseemaynotholdaseparatecultivator,propagator,wholesaler,product
manufacturer,retailer,ortestinglaboratorylicense,andnoapplicantorits
affiliatesthatcontroladispensaryshallholdmorethanoneintegratedlicense.
Anintegratedlicenseshallpermitonlyonelocationforeachofthetypesof
activitiespermittedbythelicense:cultivation,propagator,wholesale
operations,productmanufacturing,retailsales,andtesting.
(C)Anapplicantanditsaffiliatesmayobtainmultipletesting
laboratorylicenses.
(e)Adispensarythatobtainsaretailerlicenseoranintegratedlicense
pursuanttothischaptershallmaintainthedispensaryandretailoperationsin
amannerthatprotectspatientandcaregiverprivacyinaccordancewithrules
adoptedbytheBoard.
(f)Eachlicenseeshallobtainandmaintaincommercialgeneralliability
insuranceinaccordancewithrulesadoptedbytheBoard.Failuretoprovide BILLASPASSEDBYTHEHOUSE H.321
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proofofinsurancetotheBoard,asrequired,mayresultinrevocationofthe
license.
(g)Alllicensesmayberenewedaccordingtoproceduresadoptedthrough
rulemakingbytheBoard.
(h)[Repealed.]
Sec.9.7V.S.A.§ 904isamendedtoread:
§904.CULTIVATORLICENSE
***
(d)Eachcultivatorshallcreatepackagingforitscannabis.
(1)Packagingshallinclude:
(A)Thenameandregistrationnumberofthecultivator.
(B)Thestrainandvarietyofcannabiscontained.
(C)Thepotencyofthecannabisrepresentedbytheamountof
tetrahydrocannabinolandcannabidiolinmilligramstotalandperserving.
(D)A“producedon”datereflectingthedatethatthecultivator
finishedproducingthecannabis“harvestedon”datereflectingthedatethe
cultivatorharvestedthecannabisanda“packedon”datereflectingthedate
theproductwaspackagedforsale.
(E)AppropriatewarningsasprescribedbytheBoardinrule.
(F)Anyadditionalrequirementscontainedinrulesadoptedbythe
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differentlabelingrequirementsmaybeappropriatedependingonwhetherthe
cannabisissoldtoawholesaler,productmanufacturer,orretailer.
(2)Packagingshallnotbedesignedtoappealtopersonsunder21years
ofage.
***
Sec.10.7V.S.A.§ 904bisamendedtoread:
§904b.PROPAGATIONCULTIVATORLICENSE
(a)Apropagationcultivatorlicensedunderthissectionmay:
(1)cultivatenotmorethan3,500squarefeetofcannabisclones,
immaturecannabisplants,ormaturecannabisplants;
(2)test,transport,andsellcannabisclonesandimmaturecannabis
plantstolicensedcultivatorsandretailers;and
(3)test,transport,andsellcannabisseedsthatmeetthefederal
definitionofhemptoalicensedcultivatororretailerortothepublic.
(b)Alicensedpropagationcultivatorshallnotcultivatematurecannabis
plantsforthepurposeofproducing,harvesting,transferring,orselling
cannabisflowerforortoanyperson.
Sec.11.7V.S.A.§ 904cisaddedtoread:
§ 904c.TRIMANDHARVESTSERVICELICENSE
Atrimandharvestservicelicensedunderthissectionmaycontractwith
cultivatorslicensedundersection904or904aofthischapter,onaseasonalor BILLASPASSEDBYTHEHOUSE H.321
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temporarybasis,tosupplyspecifiedcannabismaintenanceserviceswithinthe
scopeofeachclient-cultivator’slicense.
Sec.12.7V.S.A.§ 910isamendedtoread:
§910.CANNABISESTABLISHMENTFEESCHEDULE
Thefollowingfeesshallapplytoeachpersonorproductlicensedbythe
Board:
***
(8)Trimandharvestservices.Trimandharvestservicesshallbe
assessedanannuallicensingfeeof$500.00.
(9)Employees.CannabisestablishmentslicensedbytheBoardshallbe
assessedanannuallicensingfeeof$50.00foreachemployee.TheBoard
shallofferone-yearandtwo-yearemployeelicenses.
(9)(10)Products.CannabisestablishmentslicensedbytheBoardshall
beassessedanannualproductlicensingfeeof$50.00foreverytypeof
cannabisandcannabisproductthatissoldinaccordancewiththischapter.
TheBoardmayissuelongerproductregistrations,proratedatthesamecost
peryear,forproductsitdeemslowriskandshelfstable.Suchproductsmaybe
definedanddistinguishedinreadilyaccessiblepublishedguidance.
(10)(11)Locallicensingfees.Cannabisestablishmentslicensedbythe
Boardshallbeassessedanannuallocallicensingfeeof$100.00inadditionto
eachfeeassessedundersubdivisions(1)–(7)ofthissection.Locallicensing BILLASPASSEDBYTHEHOUSE H.321
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feesshallbedistributedtothemunicipalityinwhichthecannabis
establishmentislocatedpursuanttosection846(c)ofthistitle.
(11)(12)One-timefeesApplicationfee.
(A)Allapplicantsforacannabisestablishmentlicenseshallbe
assessedaninitialone-timeapplicationfeeof$1,000.00.
(B)Anapplicantmaychoosetobeassessedaninitialone-time
intent-to-applyfeeof$500.00.Iftheapplicantsubsequentlyseeksalicense
withinoneyearafterpayingtheintent-to-applyfee,theinitialone-time
applicationfeeof$1,000.00shallbereducedby$500.00.
Sec.13.32V.S.A.§ 3260isamendedtoread:
§3260.BULKSALES
(a)Wheneveraperson(transferor)requiredtocollectorwithholdatrust
taxpursuanttochapter151,207,225,or233ofthistitleshallmakeanysale,
transfer,long-termlease,orassignment(transfer)inbulkofanypartorthe
wholeoftheassetsofabusiness,otherwisethanintheordinarycourseofthe
business,thepurchaser,transfereeorassignee(transferee)shall,atleast10
daysbeforetakingpossessionofthesubjectofthetransferorbeforepayment
thereforeifearlier,notifytheCommissionerinwritingoftheproposedsaleand
oftheprice,terms,andconditionsthereofwhetherornotthetransferorhas
representedtoorinformedthetransfereethatthetransferorowesanytrusttax
pursuanttochapter151,207,225,or233andwhetherornotthetransferee BILLASPASSEDBYTHEHOUSE H.321
2025 Page41of43
hasknowledgethatsuchtaxesareowed,andwhetheranytaxesareinfact
owed.
(b)WheneverthetransfereeshallfailtogivenoticetotheCommissioneras
requiredbysubsection(a)ofthissection,orwhenevertheCommissionershall
informthetransfereethatapossibleclaimfortaxexists,anysumsofmoney,
property,orchosesinaction,orotherconsideration,whichthetransfereeis
requiredtotransferovertoorforthetransferor,shallbesubjecttoafirst
priorityrightandlienforanytaxestheretoforeorthereafterdeterminedtobe
duefromthetransferortotheState,andthetransfereeisforbiddentotransfer
theconsiderationtoorforthetransferortotheextentoftheamountofthe
State’sclaim.
(c)Forfailuretocomplywiththissection,thetransfereeshallbe
personallyliableforthepaymenttotheStateofanytaxestheretoforeor
thereafterdeterminedtobeduetotheStatefromthetransferorandtheliability
maybeassessedandenforcedinthesamemannerastheliabilityfortaxunder
chapter151,207,225,or233.
***
Sec.13a.32V.S.A.§7702isamendedtoread:
§7702.DEFINITIONS
Asusedinthischapterunlessthecontextotherwiserequires:
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(15)“Othertobaccoproducts”meansanyproductmanufacturedfrom,
derivedfrom,orcontainingtobaccoornicotine,whethernaturalorsynthetic,
andincludingnicotinealkaloidsandnicotineanalogs,thatisintendedfor
humanconsumptionbysmoking,chewing,orinanyothermanner,including
productssoldasatobaccosubstitute,asdefinedin7V.S.A.§1001(8),and
includinganyliquids,whethernicotinebasedornot,ordeliverydevicessold
separatelyforusewithatobaccosubstitute,butshallnotincludecigarettes,
littlecigars,roll-your-owntobacco,snuff,newsmokelesstobaccoasdefinedin
thissection,orcannabisproductsasdefinedin7V.S.A.§831.
***
(20)“Newsmokelesstobacco”meansanytobaccoproduct
manufacturedfrom,derivedfrom,orcontainingtobaccoornicotine,whether
naturalorsynthetic,includingnicotinealkaloidsandnicotineanalogs,thatis
notintendedtobesmoked,hasamoisturecontentoflessthan45percent,oris
offeredinindividualsingle-dosetabletsorotherdiscretesingle-useunits.
***
Sec.14.2020ActsandResolvesNo.164,Sec.6d,asamendedby2023Acts
andResolvesNo.3,Sec.90,isfurtheramendedtoread:
Sec.6d. [Deleted.]
Sec.15.CANNABISCONTROLBOARD;ENFORCEMENTATTORNEY;
POSITION BILLASPASSEDBYTHEHOUSE H.321
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Onefull-time,permanent,exemptpositionofEnforcementAttorneyis
authorizedintheCannabisControlBoardinfiscalyear2026.
Sec.16.EFFECTIVEDATE
ThisactshalltakeeffectJuly1,2025.