Vermont 2025-2026 Regular Session

Vermont House Bill H0321 Compare Versions

OldNewDifferences
1-BILLASPASSEDBYTHEHOUSE H.321
2-2025 Page1of43
3-H.321
4-IntroducedbyRepresentativesBirongofVergennesandBoydenofCambridge
5-ReferredtoCommitteeon
6-Date:
7-Subject:Cannabis;cannabisestablishments
8-Statementofpurposeofbillasintroduced:Thisbillproposestoclarifythat
9-cannabispossessedunlawfullyinviolationofadministrativerulesadoptedby
10-theCannabisControlBoardmaybeseizedbylawenforcementandissubject
11-toforfeiture;torequirefingerprint-basedstateandnationalcriminalhistory
12-recordcheckonanypersonpriortoissuanceofacannabisestablishment
13-identificationcard;toamendthedefinitionof“hemp”tocomportwiththe
14-Title6definition;torequiretheBoardtoadoptrulesforcannabisretailers
15-regardingrequirementsandcriteriagoverninglicenseeapplicationstochange
16-ownership,control,orlocation;toauthorizetheBoardtorepeatcriminal
17-backgroundchecks;toestablishaprocedureforreceivershipofacannabis
18-establishmentforaperiodoftimeincasesofdeath,disability,bankruptcy,
19-insolvency,receivership,assignmentforthebenefitofcreditors,shareholderor
20-LLCmemberdisputes,licenseinterruption,orotherexceptionalcircumstances
21-renderingoneormoreownersincapableofperforming,orineligibleto
22-perform,thedutiesofalicensee;toestablishanewtrimandharvestservice
23-licensewithanannualfeeof$500.00;torequirecannabiscultivatorsto
24-1
25-2
26-3
27-4
28-5
29-6
30-7
31-8
32-9
33-10
34-11
35-12
36-13
37-14
38-15
39-16
40-17
41-18
42-19
43-20
44-21 BILLASPASSEDBYTHEHOUSE H.321
45-2025 Page2of43
46-includeoncannabispackaginga“harvestedon”datereflectingthedatethe
47-cultivatorharvestedthecannabisanda“packedon”datereflectingthedatethe
48-productwaspackagedforsale;torequirecannabisretailersthatcollect
49-cannabisexcisetaxtoinformtheDepartmentofTaxesbeforetransferringthe
50-businesstoanewentity;andtocreateanewposition,EnforcementAttorney,
51-withintheCannabisControlBoard.
52-Anactrelatingtomiscellaneouscannabisamendments
53-ItisherebyenactedbytheGeneralAssemblyoftheStateofVermont:
54-Sec.1.7V.S.A.§ 832isamendedtoread:
55-§832.CANNABISPOSSESSEDUNLAWFULLYSUBJECTTOSEIZURE
56-ANDFORFEITURE
57-Cannabispossessedunlawfullyinviolationofthistitleoradministrative
58-rulesadoptedpursuanttothistitlemaybeseizedbylawenforcementandis
59-subjecttoforfeiture.
60-Sec.2.7V.S.A.§ 844isamendedtoread:
61-§844.AUTHORITYFORCRIMINALBACKGROUND CHECKS
62-(a)TheBoardshallestablishauseragreementwiththeVermontCrime
63-InformationCenterinaccordancewith20V.S.A.chapter117forthepurpose
64-ofobtainingVermontcriminalhistoryrecords,out-of-statecriminalhistory
65-1
66-2
67-3
68-4
69-5
70-6
71-7
72-8
73-9
74-10
75-11
76-12
77-13
78-14
79-15
80-16
81-17
82-18
83-19 BILLASPASSEDBYTHEHOUSE H.321
84-2025 Page3of43
85-records,andcriminalhistoryrecordsfromtheFederalBureauofInvestigation
86-asrequiredbychapters33(cannabisestablishments)and37(medicalcannabis
87-dispensaries)ofthistitle.
88-(b)Afingerprint-basedstateandnationalcriminalhistoryrecordcheck
89-shallbeconductedforeachnaturalpersonpriortobeingissuedacannabis
90-establishmentidentificationcardpursuanttochapter33(cannabis
91-establishments)ofthistitleoramedicalcannabisdispensaryidentification
92-cardpursuanttochapter37(medicalcannabisdispensaries)ofthistitle.The
93-Boardmayrequirethatsuchrecordchecksbecompletedasacondition
94-precedenttolicenserenewal.
95-Sec.3.7V.S.A.§ 861(23)isamendedtoread:
96-(23)(A)“Hempproducts”or“hemp-infusedproducts”meansall
97-productswiththefederallydefinedtetrahydrocannabinolconcentrationlevel
98-forhempderivedfrom,ormadeby,processinghempplantsorplantpartsthat
99-arepreparedinaformavailableforcommercialsale,includingcosmetics,
100-personalcareproducts,foodintendedforanimalorhumanconsumption,cloth,
101-cordage,fiber,fuel,paint,paper,constructionmaterials,plastics,andany
102-productcontainingoneormorehemp-derivedcannabinoids,suchas
103-cannabidiol.
104-1
105-2
106-3
107-4
108-5
109-6
110-7
111-8
112-9
113-10
114-11
115-12
116-13
117-14
118-15
119-16
120-17
121-18
122-19 BILLASPASSEDBYTHEHOUSE H.321
123-2025 Page4of43
124-(B)Notwithstandingsubdivision(A)ofthissubdivision(23),“hemp
125-products”and“hemp-infusedproducts”donotincludeanysubstance,
126-manufacturingintermediary,orproductthat:
127-(i)isprohibitedordeemedaregulatedcannabisproductby
128-administrativeruleoftheCannabisControlBoard;or
129-(ii)containsmorethan0.3percenttotaltetrahydrocannabinolona
130-dry-weightbasis.
131-(C)Ahemp-derivedproductorsubstancethatisexcludedfromthe
132-definitionof“hempproducts”or“hemp-infusedproducts”pursuantto
133-subdivision(B)ofthissubdivision(23)shallbeconsideredacannabisproduct
134-asdefinedby7V.S.A.§831(3);provided,however,thatapersonduly
135-licensedorregisteredbytheCannabisControlBoardlawfullymaypossess
136-suchproductsinconformitywiththeperson’slicenseorhempprocessor
137-registration.
138-Sec.4.7V.S.A.§ 881isamendedtoread:
139-§881.RULEMAKING;CANNABISESTABLISHMENTS
140-(a)TheBoardshalladoptrulestoimplementandadministerthischapterin
141-accordancewithsubdivisions(1)–(8)(9)ofthissubsection.
142-(1)Rulesconcerninganycannabisestablishmentshallinclude:
143-(A)theformandcontentoflicenseandrenewalapplications;
144-1
145-2
146-3
147-4
148-5
149-6
150-7
151-8
152-9
153-10
154-11
155-12
156-13
157-14
158-15
159-16
160-17
161-18
162-19
163-20 BILLASPASSEDBYTHEHOUSE H.321
164-2025 Page5of43
165-(B)qualificationsforlicensurethataredirectlyanddemonstrably
166-relatedtotheoperationofacannabisestablishment,including:
167-(i)arequirementtosubmitanoperatingplan,whichshallinclude
168-informationconcerning:
169-(I)thetypeofbusinessorganization,theidentityofits
170-controllingownersandprincipals,andtheidentityofthecontrollingowners
171-andprincipalsofitsaffiliates;and
172-(II)thesources,amount,andnatureofitscapital,assets,and
173-financing;theidentityofitsfinanciers;andtheidentityofthecontrolling
174-ownersandprincipalsofitsfinanciers;
175-(ii)arequirementtofileanamendmenttoitsoperatingplaninthe
176-eventofasignificantchangeinorganization,operation,orfinancing;and
177-(iii)therequirementforafingerprint-basedcriminalhistory
178-recordcheckandregulatoryrecordcheckpursuanttosection883ofthistitle;
179-(C)oversightrequirements,includingprovisionstoensurethata
180-licensedestablishmentcomplieswithStateandfederalregulatoryrequirements
181-governinginsurance,securities,workers’compensation,unemployment
182-insurance,andoccupationalhealthandsafety;
183-(D)inspectionrequirements;
184-(E)recordstobekeptbylicenseesandtherequiredavailabilityofthe
185-records;
186-1
187-2
188-3
189-4
190-5
191-6
192-7
193-8
194-9
195-10
196-11
197-12
198-13
199-14
200-15
201-16
202-17
203-18
204-19
205-20
206-21 BILLASPASSEDBYTHEHOUSE H.321
207-2025 Page6of43
208-(F)employmentandtrainingrequirements;
209-(G)securityrequirements,includinganyappropriatelighting,
210-physicalsecurity,video,andalarmrequirements;
211-(H)healthandsafetyrequirements;
212-(I)regulationofadditivestocannabisandcannabisproducts,
213-includingcannabidiolderivedfromhempandsubstancesthataretoxicor
214-designedtomaketheproductmoreaddictive,moreappealingtopersonsunder
215-21yearsofage,ortomisleadconsumers;
216-(J)proceduresforseed-to-saletraceabilityofcannabis,includingany
217-requirementsfortrackingsoftware;
218-(K)regulationofthestorageandtransportationofcannabis;
219-(L)sanitaryrequirements;
220-(M)proceduresfortherenewalofalicense,whichshallallow
221-renewalapplicationstobesubmittedupto90dayspriortotheexpirationof
222-thecannabisestablishment’slicense;
223-(N)proceduresforsuspensionandrevocationofalicense;
224-(O)requirementsforbankingandfinancialtransactions,including
225-provisionstoensurethattheBoard,theDepartmentofFinancialRegulation,
226-andfinancialinstitutionshaveaccesstorelevantinformationconcerning
227-licensedestablishmentstocomplywithStateandfederalregulatory
228-requirements;
229-1
230-2
231-3
232-4
233-5
234-6
235-7
236-8
237-9
238-10
239-11
240-12
241-13
242-14
243-15
244-16
245-17
246-18
247-19
248-20
249-21 BILLASPASSEDBYTHEHOUSE H.321
250-2025 Page7of43
251-(P)disclosureoreligibilityrequirementsforafinancier,itsowners
252-andprincipals,anditsaffiliates,whichmayinclude:
253-(i)requirementstodiscloseinformationtoalicensed
254-establishment,theBoard,ortheDepartmentofFinancialRegulation;
255-(ii)aminimumagerequirementandarequirementtoconducta
256-backgroundcheckfornaturalpersons;
257-(iii)requirementstoensurethatafinanciercomplieswith
258-applicableStateandfederallawsgoverningfinancialinstitutions,licensed
259-lenders,andotherfinancialserviceproviders;and
260-(iv)anyotherrequirements,conditions,orlimitationsonthetype
261-oramountofloansorcapitalinvestmentsmadebyafinancieroritsaffiliates,
262-whichtheBoard,inconsultationwiththeDepartmentofFinancialRegulation,
263-determinesarenecessarytoprotectthepublichealth,safety,andgeneral
264-welfare;
265-(Q)policiesandproceduresforconductingoutreachandpromoting
266-participationintheregulatedcannabismarketbydiversegroupsofindividuals,
267-includingthosewhohavebeendisproportionatelyharmedbycannabis
268-prohibition;
269-(R)advertisingandmarketing;and
270-(S)requirementsforcannabiscontroltestingofhemp,hemp-infused
271-products,cannabis,andcannabisproducts;and
272-1
273-2
274-3
275-4
276-5
277-6
278-7
279-8
280-9
281-10
282-11
283-12
284-13
285-14
286-15
287-16
288-17
289-18
290-19
291-20
292-21 BILLASPASSEDBYTHEHOUSE H.321
293-2025 Page8of43
294-(T)requirementsandcriteriagoverninglicenseeapplicationsto
295-changeownership,control,orlocation.
296-***
297-(9)Rulesconcerningtrimandharvestservicesshallinclude:
298-(A)requirementsforverificationofthelicensesofclients;
299-(B)essentialcontentandpermissibletermsofwrittenservice
300-contracts,includingprovisionsforsecurityanddiversionprevention;
301-(C)provisionstoensuresafeandlawfultransportationandlodging
302-oftravellingpersonnel;
303-(D)essentialcontentofemployeehealth,safety,andskillstraining,
304-includingfirstaidandrecognitionofcommonpestsandpathogens;
305-(E)requirementsappropriatetominimizetheriskofpestand
306-pathogentransmission;and
307-(F)proceduresfordocumentinglawfulcompensation.
308-***
309-Sec.5.7V.S.A.§ 883isamendedtoread:
310-§883.CRIMINALBACKGROUND RECORDCHECKS;APPLICANTS
311-(a)TheBoardshallobtainfromtheVermontCrimeInformationCentera
312-copyofafingerprint-basedVermontcriminalhistoryrecords,out-of-state
313-criminalhistoryrecords,andcriminalhistoryrecordsfromtheFederalBureau
314-ofInvestigationforeachlicenseapplicant,principalofanapplicant,and
315-1
316-2
317-3
318-4
319-5
320-6
321-7
322-8
323-9
324-10
325-11
326-12
327-13
328-14
329-15
330-16
331-17
332-18
333-19
334-20
335-21 BILLASPASSEDBYTHEHOUSE H.321
336-2025 Page9of43
337-personwhocontrolsanapplicantwhoisanaturalperson.Checksmaybe
338-repeatedforgoodcauseorwithprudentfrequencyasdeterminedbytheBoard.
339-(b)TheBoardshalladoptrulesthatsetforthstandardsfordetermining
340-whetheranapplicantshouldbedeniedacannabisestablishmentlicense
341-becauseofhisorhertheapplicant’scriminalhistoryrecordbasedonfactors
342-thatdemonstratewhethertheapplicantpresentlyposesathreattopublicsafety
343-ortheproperfunctioningoftheregulatedmarket.Nonviolentdrugoffenses
344-shallnotautomaticallydisqualifyanapplicant.
345-(c)Notwithstandingsubsection(a)ofthissectionorsubsection844(b)of
346-thistitle,ifrequiredrecordsarenotreasonablyavailabletotheBoarddueto
347-circumstancesbeyonditscontrol,withtheconsentoftheapplicant,theBoard
348-mayacceptthird-partycriminalbackgroundcheckssubmittedbyanapplicant
349-foracannabisestablishmentlicenseorrenewalinlieuofobtainingtherecords
350-fromtheVermontCrimeInformationCenteracopyoftheperson’sVermont
351-fingerprint-basedcriminalhistoryrecords,out-of-statecriminalhistory
352-records,andcriminalhistoryrecordsfromtheFederalBureauofInvestigation
353-fromareputablecommercialprovider.Anysuchthird-partybackground
354-checkshall:
355-(1)beconductedbyathird-partyconsumerreportingagencyor
356-backgroundscreeningcompanythatisincompliancewiththefederalFair
357-CreditReportingAct;and
358-1
359-2
360-3
361-4
362-5
363-6
364-7
365-8
366-9
367-10
368-11
369-12
370-13
371-14
372-15
373-16
374-17
375-18
376-19
377-20
378-21 BILLASPASSEDBYTHEHOUSE H.321
379-2025 Page10of43
380-(2)includeamultistateandmulti-jurisdictioncriminalrecordlocator.
381-Consumercreditscoresshallnotbeabasisforlicensedenial.
382-Sec.6.7V.S.A.§ 884isamendedtoread:
383-§884.CANNABISESTABLISHMENTIDENTIFICATIONCARD
384-(a)Everyowner,principal,andemployeeofacannabisestablishmentshall
385-obtainanidentificationcardissuedbytheBoard.Apersonmayapplyforan
386-identificationcardpriortoobtainingemploymentwithalicensee.An
387-employeeidentificationcardshallauthorizethepersontoworkforany
388-licensee.
389-(b)(1)(A)Priortoissuingtheidentificationcardtoanownerorprincipalof
390-acannabisestablishment,theBoardshallobtainfromtheVermontCrime
391-InformationCenteracopyoftheperson’sVermontfingerprint-basedcriminal
392-historyrecords,out-of-statecriminalhistoryrecords,andcriminalhistory
393-recordsfromtheFederalBureauofInvestigation.
394-(B)Priortoissuingtheidentificationcardtoanemployeeofa
395-cannabisestablishment,theBoardshallobtainacopyofafingerprint-based
396-identityhistorysummaryrecordfromtheFederalBureauofInvestigation.
397-(2)TheBoardshalladoptrulesthatsetforthstandardsfordetermining
398-whetherapersonshouldbedeniedacannabisestablishmentidentificationcard
399-becauseofhisorhertheperson’scriminalhistoryrecordbasedonfactorsthat
400-demonstratewhethertheapplicantpresentlyposesathreattopublicsafetyor
401-1
402-2
403-3
404-4
405-5
406-6
407-7
408-8
409-9
410-10
411-11
412-12
413-13
414-14
415-15
416-16
417-17
418-18
419-19
420-20
421-21 BILLASPASSEDBYTHEHOUSE H.321
422-2025 Page11of43
423-theproperfunctioningoftheregulatedmarket.Nonviolentdrugoffensesshall
424-notautomaticallydisqualifyanapplicant.
425-(c)Onceanidentificationcardapplicationhasbeensubmitted,apersonthe
426-Board,forgoodcause,mayserveissueatemporarypermitauthorizingthe
427-applicanttoserveasanemployeeofacannabisestablishmentpendingthe
428-backgroundcheck,providedthepersonissupervisedinhisorherdutiesby
429-someonewhoisacardholder.TheBoardshallissueatemporarypermittothe
430-personforthispurpose,whichshallexpireupontheissuanceofthe
431-identificationcardordisqualificationofthepersoninaccordancewiththis
432-sectionGoodcauseexistsif,amongotherreasons,theapplicationis
433-reasonablyexpectedtotakemorethan12daystoprocess.
434-(d)Anidentificationcardshallexpireoneyearafteritsissuanceor,inthe
435-caseofownersandprincipals,upontheexpirationofthecannabis
436-establishment’slicense,whicheveroccursfirst.
437-Sec.7.7V.S.A.§ 886isaddedtoread:
438-§ 886.RECEIVERSHIP;SPECIALPERMITTING;IMMUNITY
439-(a)Whenacannabisestablishmentbecomesdistressed,itmayabruptly
440-loseauthorityorabilitytopossesscommercialquantitiesofcannabis.Itisthe
441-purposeofthissectiontoempowertheCivilDivisionoftheSuperiorCourt
442-andtheBoardtooverseetheorderlyunwindingofcannabisestablishments,
443-1
444-2
445-3
446-4
447-5
448-6
449-7
450-8
451-9
452-10
453-11
454-12
455-13
456-14
457-15
458-16
459-17
460-18
461-19
462-20 BILLASPASSEDBYTHEHOUSE H.321
463-2025 Page12of43
464-includinglawfuldispositionofinventoryinlieuofforfeiture,incaseof
465-functionaldistressorinterruptioninactivelicensure.
466-(b)(1)Anindividualmaybeappointedasreceiver,representative,executor,
467-administrator,guardian,conservator,trustee,orassignee,totemporarily
468-operateacannabisestablishmentonthelicensedpremisesforaperiodoftime
469-determinedbytheBoardincasesofdeath,disability,bankruptcy,insolvency,
470-receivership,assignmentforthebenefitofcreditors,shareholderorLLC
471-memberdisputes,licenseinterruption,orotherexceptionalcircumstances
472-renderingoneormoreownersincapableofperforming,orineligibleto
473-perform,thedutiesofalicensee.Suchappointeeshallbeatleast21yearsof
474-age.
475-(2)(A)Suchappointeeshallnotbepermittedtoconductlicensed
476-activitieswithouttheexpressauthorizationoftheBoard,whichmaybe
477-granteduponsubmissionandapprovalofawrittenrequestfortheauthorityto
478-temporarilyconductlicensedactivities.Thewrittenrequestshallinclude
479-informationordisclosuresrequiredbytheBoard,including:
480-(i)name;
481-(ii)valididentification;
482-(iii)phonenumber;
483-(iv)mailingaddress;
484-(v)emailaddress;
485-1
486-2
487-3
488-4
489-5
490-6
491-7
492-8
493-9
494-10
495-11
496-12
497-13
498-14
499-15
500-16
501-17
502-18
503-19
504-20
505-21 BILLASPASSEDBYTHEHOUSE H.321
506-2025 Page13of43
507-(vi)SocialSecuritynumber;
508-(vii)thenameofthepersononwhosebehalftheappointeeis
509-appointed;
510-(viii)proofthatsuchappointeeisthelegalreceiver,
511-representative,executor,administrator,guardian,conservator,trustee,or
512-assignee,and;
513-(ix)anydirectorindirectinterestsheldbythatappointeeina
514-cannabislicense,registrationorpermit.
515-(B)TheBoardmayadoptrulesgoverningappointmentandthe
516-processandqualifications.
517-(3)Authorizationtoconductlicensedactivitiesbytheappointeeis
518-conditionedoncompliancewiththeseregulations,includingrestrictionson
519-ownershipandotherinterests,approvalbytheBoard,andtheauthorization
520-shallnotconstituteaguaranteeoflicenseissuanceorrenewalbytheBoard.
521-(4)Anylicenseeorpersonwhofiles,oragainstwhomisfiled,any
522-actionorproceeding,orwhoseeksanappointment,assetforthinsubdivision
523-(1)ofthissubsection,isrequiredtoservetheBoardwithoriginalnoticeofthe
524-actionorproceedingandprovidetheBoardwithopportunitytobeheard
525-regardingtheappointment.Suchnoticeshallbeprovidedtoemployeesupon
526-commencementofsuchproceedingforareceivership.Alicenseesurrendering
527-1
528-2
529-3
530-4
531-5
532-6
533-7
534-8
535-9
536-10
537-11
538-12
539-13
540-14
541-15
542-16
543-17
544-18
545-19
546-20 BILLASPASSEDBYTHEHOUSE H.321
547-2025 Page14of43
548-itslicenseshallprovideitsemployeesanylawfullyrequiredwarningsof
549-closuresandlayoffs.
550-(c)Whennolicensedcustodiancanbefoundtotakecustodyofor
551-transportcannabisorcannabisproducts,theBoard,initssolediscretion,may
552-issueaspecialpermittemporarilyauthorizinganunlicenseddesigneeof
553-suitableabilityandjudgmenttopossess,transport,ordisposeofcannabisand
554-cannabisproductsasspecifiedbythetermsofthepermit.Thepermitshallbe
555-printedonofficialBoardletterhead,bearthesignatureoftheChairofthe
556-Board,stateclearlyameansofpromptauthenticationbylawenforcementand
557-licensees,andspecifystartandenddatesandtimes.
558-(d)Apersonactingasadulyappointedreceiverorinconformitywiththe
559-termsofaspecialBoardpermitissuedpursuanttosubsection(c)ofthis
560-sectionshallbeimmunefromcivilandcriminalliabilityinrelationto
561-possession,transportation,ortransferofcannabiswithinthebordersofthis
562-State.TheBoardshallnotbeliableforeconomiclossesresultingfrom
563-forfeiture,seizure,sequestration,salestoppage,transportation,storage,or
564-destructionofcannabisorcannabisproducts.
565-Sec.8.7V.S.A.§ 901isamendedtoread:
566-§901.GENERALPROVISIONS
567-1
568-2
569-3
570-4
571-5
572-6
573-7
574-8
575-9
576-10
577-11
578-12
579-13
580-14
581-15
582-16
583-17
584-18
585-19 BILLASPASSEDBYTHEHOUSE H.321
586-2025 Page15of43
587-(a)Exceptasotherwisepermittedbylaw,apersonshallnotengageinthe
588-cultivation,preparation,processing,packaging,transportation,testing,orsale
589-ofcannabisorcannabisproductswithoutobtainingalicensefromtheBoard.
590-(b)Alllicensesshallbevalidforoneyearandexpireatmidnightonthe
591-eveoftheanniversaryofthedatethelicensewasissued.Alicenseemay
592-applytorenewthelicenseannually.
593-(c)Applicationsforlicensesandrenewalsshallbesubmittedonforms
594-providedbytheBoardandshallbeaccompaniedbythefeesprovidedforin
595-section910ofthistitle.
596-(d)(1)Thereshallbeseveneighttypesoflicensesavailable:
597-(A)acultivatorlicense;
598-(B)apropagatorlicense;
599-(C)awholesalerlicense;
600-(D)aproductmanufacturerlicense;
601-(E)aretailerlicense;
602-(F)atestinglaboratorylicense;and
603-(G)atrimandharvestservicelicense;and
604-(H)anintegratedlicense.
605-(2)(A)TheBoardshalldeveloptiersfor:
606-(i)cultivatorlicensesbasedontheplantcanopysizeofthe
607-cultivationoperationorplantcountforbreedingstock;and
608-1
609-2
610-3
611-4
612-5
613-6
614-7
615-8
616-9
617-10
618-11
619-12
620-13
621-14
622-15
623-16
624-17
625-18
626-19
627-20
628-21 BILLASPASSEDBYTHEHOUSE H.321
629-2025 Page16of43
630-(ii)retailerlicenses.
631-(B)TheBoardmaydeveloptiersforothertypesoflicenses.
632-(3)(A)Exceptasprovidedinsubdivisions(B)and(C)ofthis
633-subdivision(3),anapplicantanditsaffiliatesmayobtainamaximumofone
634-typeofeachtypeoflicenseasprovidedinsubdivisions(1)(A)–(F)(G)ofthis
635-subsection(d).Eachlicenseshallpermitonlyonelocationofthe
636-establishment,howeveratrimandharvestservicelicenseemayprovide
637-servicesatmultipleotherlicensedcannabisestablishments.
638-(B)Anapplicantanditsaffiliatesthatcontroladispensaryregistered
639-onApril1,2022mayobtainoneintegratedlicenseprovidedinsubdivision
640-(1)(G)(H)ofthissubsection(d)oramaximumofoneofeachtypeoflicense
641-providedinsubdivisions(1)(A)–(F)ofthissubsection(d).Anintegrated
642-licenseemaynotholdaseparatecultivator,propagator,wholesaler,product
643-manufacturer,retailer,ortestinglaboratorylicense,andnoapplicantorits
644-affiliatesthatcontroladispensaryshallholdmorethanoneintegratedlicense.
645-Anintegratedlicenseshallpermitonlyonelocationforeachofthetypesof
646-activitiespermittedbythelicense:cultivation,propagator,wholesale
647-operations,productmanufacturing,retailsales,andtesting.
648-(C)Anapplicantanditsaffiliatesmayobtainmultipletesting
649-laboratorylicenses.
650-1
651-2
652-3
653-4
654-5
655-6
656-7
657-8
658-9
659-10
660-11
661-12
662-13
663-14
664-15
665-16
666-17
667-18
668-19
669-20 BILLASPASSEDBYTHEHOUSE H.321
670-2025 Page17of43
671-(e)Adispensarythatobtainsaretailerlicenseoranintegratedlicense
672-pursuanttothischaptershallmaintainthedispensaryandretailoperationsina
673-mannerthatprotectspatientandcaregiverprivacyinaccordancewithrules
674-adoptedbytheBoard.
675-(f)Eachlicenseeshallobtainandmaintaincommercialgeneralliability
676-insuranceinaccordancewithrulesadoptedbytheBoard.Failuretoprovide
677-proofofinsurancetotheBoard,asrequired,mayresultinrevocationofthe
678-license.
679-(g)Alllicensesmayberenewedaccordingtoproceduresadoptedthrough
680-rulemakingbytheBoard.
681-(h)[Repealed.]
682-Sec.9.7V.S.A.§ 904isamendedtoread:
683-§904.CULTIVATORLICENSE
684-***
685-(d)Eachcultivatorshallcreatepackagingforitscannabis.
686-(1)Packagingshallinclude:
687-(A)Thenameandregistrationnumberofthecultivator.
688-(B)Thestrainandvarietyofcannabiscontained.
689-(C)Thepotencyofthecannabisrepresentedbytheamountof
690-tetrahydrocannabinolandcannabidiolinmilligramstotalandperserving.
691-1
692-2
693-3
694-4
695-5
696-6
697-7
698-8
699-9
700-10
701-11
702-12
703-13
704-14
705-15
706-16
707-17
708-18
709-19
710-20 BILLASPASSEDBYTHEHOUSE H.321
711-2025 Page18of43
712-(D)A“producedon”datereflectingthedatethatthecultivator
713-finishedproducingthecannabis“harvestedon”datereflectingthedatethe
714-cultivatorharvestedthecannabisanda“packedon”datereflectingthedatethe
715-productwaspackagedforsale.
716-(E)AppropriatewarningsasprescribedbytheBoardinrule.
717-(F)Anyadditionalrequirementscontainedinrulesadoptedbythe
718-Boardinaccordancewiththischapter.Rulesshalltakeintoconsiderationthat
719-differentlabelingrequirementsmaybeappropriatedependingonwhetherthe
720-cannabisissoldtoawholesaler,productmanufacturer,orretailer.
721-(2)Packagingshallnotbedesignedtoappealtopersonsunder21years
722-ofage.
723-***
724-Sec.10.7V.S.A.§ 904bisamendedtoread:
725-§904b.PROPAGATIONCULTIVATORLICENSE
726-(a)Apropagationcultivatorlicensedunderthissectionmay:
727-(1)cultivatenotmorethan3,500squarefeetofcannabisclones,
728-immaturecannabisplants,ormaturecannabisplants;
729-(2)test,transport,andsellcannabisclonesandimmaturecannabis
730-plantstolicensedcultivatorsandretailers;and
731-(3)test,transport,andsellcannabisseedsthatmeetthefederal
732-definitionofhemptoalicensedcultivatororretailerortothepublic.
733-1
734-2
735-3
736-4
737-5
738-6
739-7
740-8
741-9
742-10
743-11
744-12
745-13
746-14
747-15
748-16
749-17
750-18
751-19
752-20
753-21 BILLASPASSEDBYTHEHOUSE H.321
754-2025 Page19of43
755-(b)Alicensedpropagationcultivatorshallnotcultivatematurecannabis
756-plantsforthepurposeofproducing,harvesting,transferring,orselling
757-cannabisflowerforortoanyperson.
758-Sec.11.7V.S.A.§ 904cisaddedtoread:
759-§ 904c.TRIMANDHARVESTSERVICELICENSE
760-Atrimandharvestservicelicensedunderthissectionmaycontractwith
761-cultivatorslicensedundersection904or904aofthischapter,onaseasonalor
762-temporarybasis,tosupplyspecifiedcannabismaintenanceserviceswithinthe
763-scopeofeachclient-cultivator’slicense.
764-Sec.12.7V.S.A.§ 910isamendedtoread:
765-§910.CANNABISESTABLISHMENTFEESCHEDULE
766-Thefollowingfeesshallapplytoeachpersonorproductlicensedbythe
767-Board:
768-***
769-(8)Trimandharvestservices.Trimandharvestservicesshallbe
770-assessedanannuallicensingfeeof$500.00.
771-(9)Employees.CannabisestablishmentslicensedbytheBoardshallbe
772-assessedanannualabienniallicensingfeeof$50.00foreachemployee.
773-(9)(10)Products.CannabisestablishmentslicensedbytheBoardshall
774-beassessedanannualabiennialproductlicensingfeeof$50.00foreverytype
775-ofcannabisandcannabisproductthatissoldinaccordancewiththischapter.
776-1
777-2
778-3
779-4
780-5
781-6
782-7
783-8
784-9
785-10
786-11
787-12
788-13
789-14
790-15
791-16
792-17
793-18
794-19
795-20
796-21 BILLASPASSEDBYTHEHOUSE H.321
797-2025 Page20of43
798-TheBoardmayissuelongerproductregistrations,proratedatthesamecost
799-peryear,forproductsitdeemslowriskandshelfstable.Suchproductsmay
800-bedefinedanddistinguishedinreadilyaccessiblepublishedguidance.
801-(10)(11)Locallicensingfees.Cannabisestablishmentslicensedbythe
802-Boardshallbeassessedanannuallocallicensingfeeof$100.00inadditionto
803-eachfeeassessedundersubdivisions(1)–(7)ofthissection.Locallicensing
804-feesshallbedistributedtothemunicipalityinwhichthecannabis
805-establishmentislocatedpursuanttosection846(c)ofthistitle.
806-(11)(12)One-timefeesApplicationfee.
807-(A)Allapplicantsforacannabisestablishmentlicenseshallbe
808-assessedaninitialone-timeapplicationfeeof$1,000.00.
809-(B)Anapplicantmaychoosetobeassessedaninitialone-timeintent-
810-to-applyfeeof$500.00.Iftheapplicantsubsequentlyseeksalicensewithin
811-oneyearafterpayingtheintent-to-applyfee,theinitialone-timeapplication
812-feeof$1,000.00shallbereducedby$500.00.
813-Sec.13.32V.S.A.§ 3260isamendedtoread:
814-§3260.BULKSALES
815-(a)Wheneveraperson(transferor)requiredtocollectorwithholdatrust
816-taxpursuanttochapter151,207,225,or233ofthistitleshallmakeanysale,
817-transfer,long-termlease,orassignment(transfer)inbulkofanypartorthe
818-wholeoftheassetsofabusiness,otherwisethanintheordinarycourseofthe
819-1
820-2
821-3
822-4
823-5
824-6
825-7
826-8
827-9
828-10
829-11
830-12
831-13
832-14
833-15
834-16
835-17
836-18
837-19
838-20
839-21 BILLASPASSEDBYTHEHOUSE H.321
840-2025 Page21of43
841-business,thepurchaser,transfereeorassignee(transferee)shall,atleast10
842-daysbeforetakingpossessionofthesubjectofthetransferorbeforepayment
843-thereforeifearlier,notifytheCommissionerinwritingoftheproposedsale
844-andoftheprice,terms,andconditionsthereofwhetherornotthetransferor
845-hasrepresentedtoorinformedthetransfereethatthetransferorowesanytrust
846-taxpursuanttochapter151,207,225,or233andwhetherornotthetransferee
847-hasknowledgethatsuchtaxesareowed,andwhetheranytaxesareinfact
848-owed.
849-(b)WheneverthetransfereeshallfailtogivenoticetotheCommissioner
850-asrequiredbysubsection(a)ofthissection,orwhenevertheCommissioner
851-shallinformthetransfereethatapossibleclaimfortaxexists,anysumsof
852-money,property,orchosesinaction,orotherconsideration,whichthe
853-transfereeisrequiredtotransferovertoorforthetransferor,shallbesubjectto
854-afirstpriorityrightandlienforanytaxestheretoforeorthereafterdetermined
855-tobeduefromthetransferortotheState,andthetransfereeisforbiddento
856-transfertheconsiderationtoorforthetransferortotheextentoftheamountof
857-theState’sclaim.
858-(c)Forfailuretocomplywiththissection,thetransfereeshallbe
859-personallyliableforthepaymenttotheStateofanytaxestheretoforeor
860-thereafterdeterminedtobeduetotheStatefromthetransferorandtheliability
861-1
862-2
863-3
864-4
865-5
866-6
867-7
868-8
869-9
870-10
871-11
872-12
873-13
874-14
875-15
876-16
877-17
878-18
879-19
880-20 BILLASPASSEDBYTHEHOUSE H.321
881-2025 Page22of43
882-maybeassessedandenforcedinthesamemannerastheliabilityfortaxunder
883-chapter151,207,225,or233.
884-Sec.14.2022ActsandResolvesNo.185,SecsE.240.5andE.240.6are
885-amendedtoread:
886-Sec.E.240.5. [Deleted.]
887-Sec.E.240.6. [Deleted.]
888-Sec.15.2022ActsandResolvesNo.185,Sec.H.100isamendedtoread:
889-Sec.H.100. EFFECTIVEDATES
890-***
891-(b) [Deleted.]
892-***
893-Sec.16.ISSUANCEOFRETAILERLICENSES
894-Notwithstandinganyotherprovisionoflaw,theCannabisControlBoard
895-shallnotissueanynewretailerlicensesuntilJuly1,2027,providedthat:
896-(1)annualrenewalsofretailerlicensesthatwereoriginallyissuedprior
897-toFebruary1,2025maybeissued;
898-(2)amendmentstoandearlyrenewalsofretailerlicensesthatwere
899-originallyissuedpriortoFebruary1,2025maybeissuedinthecaseof
900-changesinlocationofthelicensedretailerwheretheproposednewlocation
901-wouldbepermissibleasanewlicensedlocationpursuanttorulesadoptedby
902-theBoardunder7V.S.A.§ 881(a)(5)(F);
903-1
904-2
905-3
906-4
907-5
908-6
909-7
910-8
911-9
912-10
913-11
914-12
915-13
916-14
917-15
918-16
919-17
920-18
921-19
922-20
923-21 BILLASPASSEDBYTHEHOUSE H.321
924-2025 Page23of43
925-(3)amendmentstoandearlyrenewalsofretailerlicensesthatwere
926-originallyissuedpriortoFebruary1,2025maybeissuedinthecaseof
927-changesincontrolofthelicensedretailer;and
928-(4)theBoardmayissuenewretailerlicensespriortoJuly1,2027if,at
929-thetimeofsuchissuance,thenumberoflicensedretailersisfewerthanthe
930-numberof80locations.
931-Sec.17.CANNABISCONTROLBOARD;ENFORCEMENT ATTORNEY;
932-POSITION
933-Onefull-time,permanent,exemptpositionofEnforcementAttorneyis
934-authorizedintheCannabisControlBoardinfiscalyear2025.
935-Sec.18.EFFECTIVEDATE
936-Thisactshalltakeeffectonpassage.
937-Sec.1.7V.S.A.§ 832isamendedtoread:
938-§832.CANNABISPOSSESSEDUNLAWFULLYSUBJECTTOSEIZURE
939-ANDFORFEITURE
940-Cannabispossessedunlawfullyinviolationofthistitleoradministrative
941-rulesadoptedpursuanttothistitlemaybeseizedbylawenforcementandis
942-subjecttoforfeiture.
943-Sec.2.7V.S.A.§ 844isamendedtoread:
944-§844.AUTHORITYFORCRIMINALBACKGROUNDCHECKS
945-1
946-2
947-3
948-4
949-5
950-6
951-7
952-8
953-9
954-10
955-11
956-12 BILLASPASSEDBYTHEHOUSE H.321
957-2025 Page24of43
958-(a)TheBoardshallestablishauseragreementwiththeVermontCrime
959-InformationCenterinaccordancewith20V.S.A.chapter117forthepurpose
960-ofobtainingVermontcriminalhistoryrecords,out-of-statecriminalhistory
961-records,andcriminalhistoryrecordsfromtheFederalBureauofInvestigation
962-asrequiredbychapters33(cannabisestablishments)and37(medical
963-cannabisdispensaries)ofthistitle.
964-(b)Afingerprint-basedstateandnationalcriminalhistoryrecordcheck
965-shallbeconductedforeachnaturalpersonpriortobeingissuedacannabis
966-establishmentidentificationcardpursuanttochapter33(cannabis
967-establishments)ofthistitleoramedicalcannabisdispensaryidentification
968-cardpursuanttochapter37(medicalcannabisdispensaries)ofthistitle.The
969-Boardmayrequirethatsuchrecordchecksbecompletedasacondition
970-precedenttolicenserenewal.
971-Sec.3.7V.S.A.§ 861(23)isamendedtoread:
972-(23)(A)“Hempproducts”or“hemp-infusedproducts”meansall
973-productswiththefederallydefinedtetrahydrocannabinolconcentrationlevel
974-forhempderivedfrom,ormadeby,processinghempplantsorplantpartsthat
975-arepreparedinaformavailableforcommercialsale,includingcosmetics,
976-personalcareproducts,foodintendedforanimalorhumanconsumption,
977-cloth,cordage,fiber,fuel,paint,paper,constructionmaterials,plastics,and BILLASPASSEDBYTHEHOUSE H.321
978-2025 Page25of43
979-anyproductcontainingoneormorehemp-derivedcannabinoids,suchas
980-cannabidiol.
981-(B)Notwithstandingsubdivision(A)ofthissubdivision(23),“hemp
982-products”and“hemp-infusedproducts”donotincludeanysubstance,
983-manufacturingintermediary,orproductthat:
984-(i)isprohibitedordeemedaregulatedcannabisproductby
985-administrativeruleoftheCannabisControlBoard;or
986-(ii)containsmorethan0.3percenttotaltetrahydrocannabinolon
987-adry-weightbasis.
988-(C)Ahemp-derivedproductorsubstancethatisexcludedfromthe
989-definitionof“hempproducts”or“hemp-infusedproducts”pursuantto
990-subdivision(B)ofthissubdivision(23)shallbeconsideredacannabisproduct
991-asdefinedbysubdivision831(3)ofthistitle;provided,however,thataperson
992-dulylicensedorregisteredbytheCannabisControlBoardlawfullymay
993-possesssuchproductsinconformitywiththeperson’slicenseorhemp
994-processorregistration.
995-Sec.4.7V.S.A.§ 881isamendedtoread:
996-§881.RULEMAKING;CANNABISESTABLISHMENTS
997-(a)TheBoardshalladoptrulestoimplementandadministerthischapter
998-inaccordancewithsubdivisions(1)–(8)(9)ofthissubsection.
999-(1)Rulesconcerninganycannabisestablishmentshallinclude: BILLASPASSEDBYTHEHOUSE H.321
1000-2025 Page26of43
1001-(A)theformandcontentoflicenseandrenewalapplications;
1002-(B)qualificationsforlicensurethataredirectlyanddemonstrably
1003-relatedtotheoperationofacannabisestablishment,including:
1004-(i)arequirementtosubmitanoperatingplan,whichshallinclude
1005-informationconcerning:
1006-(I)thetypeofbusinessorganization,theidentityofits
1007-controllingownersandprincipals,andtheidentityofthecontrollingowners
1008-andprincipalsofitsaffiliates;and
1009-(II)thesources,amount,andnatureofitscapital,assets,and
1010-financing;theidentityofitsfinanciers;andtheidentityofthecontrolling
1011-ownersandprincipalsofitsfinanciers;
1012-(ii)arequirementtofileanamendmenttoitsoperatingplaninthe
1013-eventofasignificantchangeinorganization,operation,orfinancing;and
1014-(iii)therequirementforafingerprint-basedcriminalhistory
1015-recordcheckandregulatoryrecordcheckpursuanttosection883ofthistitle;
1016-(C)oversightrequirements,includingprovisionstoensurethata
1017-licensedestablishmentcomplieswithStateandfederalregulatoryrequirements
1018-governinginsurance,securities,workers’compensation,unemployment
1019-insurance,andoccupationalhealthandsafety;
1020-(D)inspectionrequirements; BILLASPASSEDBYTHEHOUSE H.321
1021-2025 Page27of43
1022-(E)recordstobekeptbylicenseesandtherequiredavailabilityofthe
1023-records;
1024-(F)employmentandtrainingrequirements;
1025-(G)securityrequirements,includinganyappropriatelighting,
1026-physicalsecurity,video,andalarmrequirements;
1027-(H)healthandsafetyrequirements;
1028-(I)regulationofadditivestocannabisandcannabisproducts,
1029-includingcannabidiolderivedfromhempandsubstancesthataretoxicor
1030-designedtomaketheproductmoreaddictive,moreappealingtopersonsunder
1031-21yearsofage,ortomisleadconsumers;
1032-(J)proceduresforseed-to-saletraceabilityofcannabis,including
1033-anyrequirementsfortrackingsoftware;
1034-(K)regulationofthestorageandtransportationofcannabis;
1035-(L)sanitaryrequirements;
1036-(M)proceduresfortherenewalofalicense,whichshallallow
1037-renewalapplicationstobesubmittedupto90dayspriortotheexpirationof
1038-thecannabisestablishment’slicense;
1039-(N)proceduresforsuspensionandrevocationofalicense;
1040-(O)requirementsforbankingandfinancialtransactions,including
1041-provisionstoensurethattheBoard,theDepartmentofFinancialRegulation,
1042-andfinancialinstitutionshaveaccesstorelevantinformationconcerning BILLASPASSEDBYTHEHOUSE H.321
1043-2025 Page28of43
1044-licensedestablishmentstocomplywithStateandfederalregulatory
1045-requirements;
1046-(P)disclosureoreligibilityrequirementsforafinancier,itsowners
1047-andprincipals,anditsaffiliates,whichmayinclude:
1048-(i)requirementstodiscloseinformationtoalicensed
1049-establishment,theBoard,ortheDepartmentofFinancialRegulation;
1050-(ii)aminimumagerequirementandarequirementtoconducta
1051-backgroundcheckfornaturalpersons;
1052-(iii)requirementstoensurethatafinanciercomplieswith
1053-applicableStateandfederallawsgoverningfinancialinstitutions,licensed
1054-lenders,andotherfinancialserviceproviders;and
1055-(iv)anyotherrequirements,conditions,orlimitationsonthetype
1056-oramountofloansorcapitalinvestmentsmadebyafinancieroritsaffiliates,
1057-whichtheBoard,inconsultationwiththeDepartmentofFinancialRegulation,
1058-determinesarenecessarytoprotectthepublichealth,safety,andgeneral
1059-welfare;
1060-(Q)policiesandproceduresforconductingoutreachandpromoting
1061-participationintheregulatedcannabismarketbydiversegroupsof
1062-individuals,includingthosewhohavebeendisproportionatelyharmedby
1063-cannabisprohibition;
1064-(R)advertisingandmarketing;and BILLASPASSEDBYTHEHOUSE H.321
1065-2025 Page29of43
1066-(S)requirementsforcannabiscontroltestingofhemp,hemp-infused
1067-products,cannabis,andcannabisproducts;and
1068-(T)requirementsandcriteriagoverninglicenseeapplicationsto
1069-changeownership,control,orlocation.
1070-***
1071-(5)Rulesconcerningretailersshallinclude:
1072-***
1073-(F)locationorsitingrequirementsthatincreasethegeographic
1074-distributionofnewcannabisretailestablishmentsbasedonregional
1075-population,andmarketneeds,andcommunityinput;and
1076-***
1077-(9)Rulesconcerningtrimandharvestservicesshallinclude:
1078-(A)requirementsforverificationofthelicensesofclients;
1079-(B)essentialcontentandpermissibletermsofwrittenservice
1080-contracts,includingprovisionsforsecurityanddiversionprevention;
1081-(C)provisionstoensuresafeandlawfultransportationandlodging
1082-oftravellingpersonnel;
1083-(D)essentialcontentofemployeehealth,safety,andskillstraining,
1084-includingfirstaidandrecognitionofcommonpestsandpathogens;
1085-(E)requirementsappropriatetominimizetheriskofpestand
1086-pathogentransmission;and BILLASPASSEDBYTHEHOUSE H.321
1087-2025 Page30of43
1088-(F)proceduresfordocumentinglawfulcompensation.
1089-***
1090-Sec.5.7V.S.A.§ 883isamendedtoread:
1091-§883.CRIMINALBACKGROUNDRECORDCHECKS;APPLICANTS
1092-(a)TheBoardshallobtainfromtheVermontCrimeInformationCentera
1093-copyofafingerprint-basedVermontcriminalhistoryrecords,out-of-state
1094-criminalhistoryrecords,andcriminalhistoryrecordsfromtheFederalBureau
1095-ofInvestigationforeachlicenseapplicant,principalofanapplicant,and
1096-personwhocontrolsanapplicantwhoisanaturalperson.Checksmaybe
1097-repeatedforgoodcauseorwithprudentfrequencyasdeterminedbytheBoard.
1098-(b)TheBoardshalladoptrulesthatsetforthstandardsfordetermining
1099-whetheranapplicantshouldbedeniedacannabisestablishmentlicense
1100-becauseofhisorhertheapplicant’scriminalhistoryrecordbasedonfactors
1101-thatdemonstratewhethertheapplicantpresentlyposesathreattopublicsafety
1102-ortheproperfunctioningoftheregulatedmarket.Nonviolentdrugoffenses
1103-shallnotautomaticallydisqualifyanapplicant.
1104-(c)Notwithstandingsubsection(a)ofthissectionorsubsection844(b)of
1105-thistitle,ifrequiredrecordsarenotreasonablyavailabletotheBoarddueto
1106-circumstancesbeyonditscontrol,withtheconsentoftheapplicant,theBoard
1107-mayacceptthird-partycriminalbackgroundcheckssubmittedbyanapplicant
1108-foracannabisestablishmentlicenseorrenewalinlieuofobtainingtherecords BILLASPASSEDBYTHEHOUSE H.321
1109-2025 Page31of43
1110-fromtheVermontCrimeInformationCenteracopyoftheperson’sVermont
1111-fingerprint-basedcriminalhistoryrecords,out-of-statecriminalhistory
1112-records,andcriminalhistoryrecordsfromtheFederalBureauofInvestigation
1113-fromareputablecommercialprovider.Anysuchthird-partybackgroundcheck
1114-shall:
1115-(1)beconductedbyathird-partyconsumerreportingagencyor
1116-backgroundscreeningcompanythatisincompliancewiththefederalFair
1117-CreditReportingAct;and
1118-(2)includeamultistateandmulti-jurisdictionmultijurisdictioncriminal
1119-recordlocator.Consumercreditscoresshallnotbeabasisforlicensedenial.
1120-Sec.6.7V.S.A.§ 884isamendedtoread:
1121-§884.CANNABISESTABLISHMENTIDENTIFICATIONCARD
1122-(a)Everyowner,principal,andemployeeofacannabisestablishmentshall
1123-obtainanidentificationcardissuedbytheBoard.Apersonmayapplyforan
1124-identificationcardpriortoobtainingemploymentwithalicensee.An
1125-employeeidentificationcardshallauthorizethepersontoworkforany
1126-licensee.
1127-(b)(1)(A)Priortoissuingtheidentificationcardtoanownerorprincipal
1128-ofacannabisestablishment,theBoardshallobtainfromtheVermontCrime
1129-InformationCenteracopyoftheperson’sVermontfingerprint-basedcriminal BILLASPASSEDBYTHEHOUSE H.321
1130-2025 Page32of43
1131-historyrecords,out-of-statecriminalhistoryrecords,andcriminalhistory
1132-recordsfromtheFederalBureauofInvestigation.
1133-(B)Priortoissuingtheidentificationcardtoanemployeeofa
1134-cannabisestablishment,theBoardshallobtainacopyofafingerprint-based
1135-identityhistorysummaryrecordfromtheFederalBureauofInvestigation.
1136-(2)TheBoardshalladoptrulesthatsetforthstandardsfordetermining
1137-whetherapersonshouldbedeniedacannabisestablishmentidentification
1138-cardbecauseofhisorhertheperson’scriminalhistoryrecordbasedon
1139-factorsthatdemonstratewhethertheapplicantpresentlyposesathreatto
1140-publicsafetyortheproperfunctioningoftheregulatedmarket.Nonviolent
1141-drugoffensesshallnotautomaticallydisqualifyanapplicant.
1142-(c)Onceanidentificationcardapplicationhasbeensubmitted,aperson
1143-theBoard,forgoodcause,mayserveissueatemporarypermitauthorizingthe
1144-applicanttoserveasanemployeeofacannabisestablishmentpendingthe
1145-backgroundcheck,providedthepersonissupervisedinhisorherdutiesby
1146-someonewhoisacardholder.TheBoardshallissueatemporarypermittothe
1147-personforthispurpose,whichshallexpireupontheissuanceofthe
1148-identificationcardordisqualificationofthepersoninaccordancewiththis
1149-sectionGoodcauseexistsif,amongotherreasons,theapplicationis
1150-reasonablyexpectedtotakemorethan12daystoprocess. BILLASPASSEDBYTHEHOUSE H.321
1151-2025 Page33of43
1152-(d)Anidentificationcardshallexpireoneyearafteritsissuanceor,inthe
1153-caseofownersandprincipals,upontheexpirationofthecannabis
1154-establishment’slicense,whicheveroccursfirst.
1155-Sec.7.7V.S.A.§ 886isaddedtoread:
1156-§ 886.INCAPACITYORDISTRESS;SPECIALPERMITTING;
1157-IMMUNITY
1158-(a)ItisthepurposeofthissectiontoauthorizetheBoardtoeffectively
1159-overseecannabisestablishmentsandthepersonsauthorizedtooperatesuch
1160-establishmentsincaseofincapacityofaprincipal,dysfunction,operating
1161-distress,interruptioninlicensure,abruptclosure,orjudicialintervention
1162-includingreceivership.
1163-(b)TheBoardmayissueaspecialpermittemporarilyauthorizinga
1164-licensedorunlicenseddesigneeofsuitableabilityandjudgmenttotemporarily
1165-operateacannabisestablishment,ortopossess,transport,ordisposeof
1166-cannabisandcannabisproducts,asspecifiedbythetermsofthepermit.The
1167-permitshallbeprintedonofficialBoardletterhead,bearthesignatureofthe
1168-ChairoftheBoard,stateclearlyameansofpromptauthenticationbylaw
1169-enforcementandlicensees,andspecifystartandenddatesandtimes.A
1170-person’seligibilityforapermitunderthissubsection(b)shallnotbelimited
1171-bysubdivision901(d)(3)ofthistitle. BILLASPASSEDBYTHEHOUSE H.321
1172-2025 Page34of43
1173-(c)Apersonactinginconformitywiththetermsandscopeofaspecial
1174-permitissuedpursuanttosubsection(b)ofthissectionshallbeimmunefrom
1175-civilandcriminalliabilityinrelationtopossession,transportation,ortransfer
1176-ofcannabiswithinthebordersofthisState.TheBoardshallnotbeliablefor
1177-economiclossesresultingfromforfeiture,seizure,sequestration,salestoppage,
1178-transportation,storage,ordestructionofcannabisorcannabisproducts.
1179-(d)Ifappropriatetofacilitatejudicialproceedingsinvolvingacannabis
1180-establishmentoritsprincipals,includinganactionforreceivership,aState
1181-courtofcompetentjurisdictionmayrequestthattheBoarddeterminewhether
1182-apersonissuitedbybackgroundandqualificationstoholdaspecialpermit
1183-issuedpursuanttosubsection(b)ofthissectionforapurposespecifiedbythe
1184-court.Inthealternative,thecourtmayaskthattheBoardrecommendsuch
1185-person.
1186-Sec.8.7V.S.A.§ 901isamendedtoread:
1187-§901.GENERALPROVISIONS
1188-(a)Exceptasotherwisepermittedbylaw,apersonshallnotengageinthe
1189-cultivation,preparation,processing,packaging,transportation,testing,orsale
1190-ofcannabisorcannabisproductswithoutobtainingalicensefromtheBoard.
1191-(b)Alllicensesshallbevalidforoneyearandexpireatmidnightonthe
1192-eveoftheanniversaryofthedatethelicensewasissued.Alicenseemayapply
1193-torenewthelicenseannually. BILLASPASSEDBYTHEHOUSE H.321
1194-2025 Page35of43
1195-(c)Applicationsforlicensesandrenewalsshallbesubmittedonforms
1196-providedbytheBoardandshallbeaccompaniedbythefeesprovidedforin
1197-section910ofthistitle.
1198-(d)(1)Thereshallbeseveneighttypesoflicensesavailable:
1199-(A)acultivatorlicense;
1200-(B)apropagatorlicense;
1201-(C)awholesalerlicense;
1202-(D)aproductmanufacturerlicense;
1203-(E)aretailerlicense;
1204-(F)atestinglaboratorylicense;and
1205-(G)atrimandharvestservicelicense;and
1206-(H)anintegratedlicense.
1207-(2)(A)TheBoardshalldeveloptiersfor:
1208-(i)cultivatorlicensesbasedontheplantcanopysizeofthe
1209-cultivationoperationorplantcountforbreedingstock;and
1210-(ii)retailerlicenses.
1211-(B)TheBoardmaydeveloptiersforothertypesoflicenses.
1212-(3)(A)Exceptasprovidedinsubdivisions(B)and(C)ofthissubdivision
1213-(3),anapplicantanditsaffiliatesmayobtainamaximumofonetypeofeach
1214-typeoflicenseasprovidedinsubdivisions(1)(A)–(F)(G)ofthissubsection(d).
1215-Eachlicenseshallpermitonlyonelocationoftheestablishment,howevera BILLASPASSEDBYTHEHOUSE H.321
1216-2025 Page36of43
1217-trimandharvestservicelicenseemayprovideservicesatmultipleother
1218-licensedcannabisestablishments.
1219-(B)Anapplicantanditsaffiliatesthatcontroladispensaryregistered
1220-onApril1,2022mayobtainoneintegratedlicenseprovidedinsubdivision
1221-(1)(G)(H)ofthissubsection(d)oramaximumofoneofeachtypeoflicense
1222-providedinsubdivisions(1)(A)–(F)ofthissubsection(d).Anintegrated
1223-licenseemaynotholdaseparatecultivator,propagator,wholesaler,product
1224-manufacturer,retailer,ortestinglaboratorylicense,andnoapplicantorits
1225-affiliatesthatcontroladispensaryshallholdmorethanoneintegratedlicense.
1226-Anintegratedlicenseshallpermitonlyonelocationforeachofthetypesof
1227-activitiespermittedbythelicense:cultivation,propagator,wholesale
1228-operations,productmanufacturing,retailsales,andtesting.
1229-(C)Anapplicantanditsaffiliatesmayobtainmultipletesting
1230-laboratorylicenses.
1231-(e)Adispensarythatobtainsaretailerlicenseoranintegratedlicense
1232-pursuanttothischaptershallmaintainthedispensaryandretailoperationsin
1233-amannerthatprotectspatientandcaregiverprivacyinaccordancewithrules
1234-adoptedbytheBoard.
1235-(f)Eachlicenseeshallobtainandmaintaincommercialgeneralliability
1236-insuranceinaccordancewithrulesadoptedbytheBoard.Failuretoprovide BILLASPASSEDBYTHEHOUSE H.321
1237-2025 Page37of43
1238-proofofinsurancetotheBoard,asrequired,mayresultinrevocationofthe
1239-license.
1240-(g)Alllicensesmayberenewedaccordingtoproceduresadoptedthrough
1241-rulemakingbytheBoard.
1242-(h)[Repealed.]
1243-Sec.9.7V.S.A.§ 904isamendedtoread:
1244-§904.CULTIVATORLICENSE
1245-***
1246-(d)Eachcultivatorshallcreatepackagingforitscannabis.
1247-(1)Packagingshallinclude:
1248-(A)Thenameandregistrationnumberofthecultivator.
1249-(B)Thestrainandvarietyofcannabiscontained.
1250-(C)Thepotencyofthecannabisrepresentedbytheamountof
1251-tetrahydrocannabinolandcannabidiolinmilligramstotalandperserving.
1252-(D)A“producedon”datereflectingthedatethatthecultivator
1253-finishedproducingthecannabis“harvestedon”datereflectingthedatethe
1254-cultivatorharvestedthecannabisanda“packedon”datereflectingthedate
1255-theproductwaspackagedforsale.
1256-(E)AppropriatewarningsasprescribedbytheBoardinrule.
1257-(F)Anyadditionalrequirementscontainedinrulesadoptedbythe
1258-Boardinaccordancewiththischapter.Rulesshalltakeintoconsiderationthat BILLASPASSEDBYTHEHOUSE H.321
1259-2025 Page38of43
1260-differentlabelingrequirementsmaybeappropriatedependingonwhetherthe
1261-cannabisissoldtoawholesaler,productmanufacturer,orretailer.
1262-(2)Packagingshallnotbedesignedtoappealtopersonsunder21years
1263-ofage.
1264-***
1265-Sec.10.7V.S.A.§ 904bisamendedtoread:
1266-§904b.PROPAGATIONCULTIVATORLICENSE
1267-(a)Apropagationcultivatorlicensedunderthissectionmay:
1268-(1)cultivatenotmorethan3,500squarefeetofcannabisclones,
1269-immaturecannabisplants,ormaturecannabisplants;
1270-(2)test,transport,andsellcannabisclonesandimmaturecannabis
1271-plantstolicensedcultivatorsandretailers;and
1272-(3)test,transport,andsellcannabisseedsthatmeetthefederal
1273-definitionofhemptoalicensedcultivatororretailerortothepublic.
1274-(b)Alicensedpropagationcultivatorshallnotcultivatematurecannabis
1275-plantsforthepurposeofproducing,harvesting,transferring,orselling
1276-cannabisflowerforortoanyperson.
1277-Sec.11.7V.S.A.§ 904cisaddedtoread:
1278-§ 904c.TRIMANDHARVESTSERVICELICENSE
1279-Atrimandharvestservicelicensedunderthissectionmaycontractwith
1280-cultivatorslicensedundersection904or904aofthischapter,onaseasonalor BILLASPASSEDBYTHEHOUSE H.321
1281-2025 Page39of43
1282-temporarybasis,tosupplyspecifiedcannabismaintenanceserviceswithinthe
1283-scopeofeachclient-cultivator’slicense.
1284-Sec.12.7V.S.A.§ 910isamendedtoread:
1285-§910.CANNABISESTABLISHMENTFEESCHEDULE
1286-Thefollowingfeesshallapplytoeachpersonorproductlicensedbythe
1287-Board:
1288-***
1289-(8)Trimandharvestservices.Trimandharvestservicesshallbe
1290-assessedanannuallicensingfeeof$500.00.
1291-(9)Employees.CannabisestablishmentslicensedbytheBoardshallbe
1292-assessedanannuallicensingfeeof$50.00foreachemployee.TheBoard
1293-shallofferone-yearandtwo-yearemployeelicenses.
1294-(9)(10)Products.CannabisestablishmentslicensedbytheBoardshall
1295-beassessedanannualproductlicensingfeeof$50.00foreverytypeof
1296-cannabisandcannabisproductthatissoldinaccordancewiththischapter.
1297-TheBoardmayissuelongerproductregistrations,proratedatthesamecost
1298-peryear,forproductsitdeemslowriskandshelfstable.Suchproductsmaybe
1299-definedanddistinguishedinreadilyaccessiblepublishedguidance.
1300-(10)(11)Locallicensingfees.Cannabisestablishmentslicensedbythe
1301-Boardshallbeassessedanannuallocallicensingfeeof$100.00inadditionto
1302-eachfeeassessedundersubdivisions(1)–(7)ofthissection.Locallicensing BILLASPASSEDBYTHEHOUSE H.321
1303-2025 Page40of43
1304-feesshallbedistributedtothemunicipalityinwhichthecannabis
1305-establishmentislocatedpursuanttosection846(c)ofthistitle.
1306-(11)(12)One-timefeesApplicationfee.
1307-(A)Allapplicantsforacannabisestablishmentlicenseshallbe
1308-assessedaninitialone-timeapplicationfeeof$1,000.00.
1309-(B)Anapplicantmaychoosetobeassessedaninitialone-time
1310-intent-to-applyfeeof$500.00.Iftheapplicantsubsequentlyseeksalicense
1311-withinoneyearafterpayingtheintent-to-applyfee,theinitialone-time
1312-applicationfeeof$1,000.00shallbereducedby$500.00.
1313-Sec.13.32V.S.A.§ 3260isamendedtoread:
1314-§3260.BULKSALES
1315-(a)Wheneveraperson(transferor)requiredtocollectorwithholdatrust
1316-taxpursuanttochapter151,207,225,or233ofthistitleshallmakeanysale,
1317-transfer,long-termlease,orassignment(transfer)inbulkofanypartorthe
1318-wholeoftheassetsofabusiness,otherwisethanintheordinarycourseofthe
1319-business,thepurchaser,transfereeorassignee(transferee)shall,atleast10
1320-daysbeforetakingpossessionofthesubjectofthetransferorbeforepayment
1321-thereforeifearlier,notifytheCommissionerinwritingoftheproposedsaleand
1322-oftheprice,terms,andconditionsthereofwhetherornotthetransferorhas
1323-representedtoorinformedthetransfereethatthetransferorowesanytrusttax
1324-pursuanttochapter151,207,225,or233andwhetherornotthetransferee BILLASPASSEDBYTHEHOUSE H.321
1325-2025 Page41of43
1326-hasknowledgethatsuchtaxesareowed,andwhetheranytaxesareinfact
1327-owed.
1328-(b)WheneverthetransfereeshallfailtogivenoticetotheCommissioneras
1329-requiredbysubsection(a)ofthissection,orwhenevertheCommissionershall
1330-informthetransfereethatapossibleclaimfortaxexists,anysumsofmoney,
1331-property,orchosesinaction,orotherconsideration,whichthetransfereeis
1332-requiredtotransferovertoorforthetransferor,shallbesubjecttoafirst
1333-priorityrightandlienforanytaxestheretoforeorthereafterdeterminedtobe
1334-duefromthetransferortotheState,andthetransfereeisforbiddentotransfer
1335-theconsiderationtoorforthetransferortotheextentoftheamountofthe
1336-State’sclaim.
1337-(c)Forfailuretocomplywiththissection,thetransfereeshallbe
1338-personallyliableforthepaymenttotheStateofanytaxestheretoforeor
1339-thereafterdeterminedtobeduetotheStatefromthetransferorandtheliability
1340-maybeassessedandenforcedinthesamemannerastheliabilityfortaxunder
1341-chapter151,207,225,or233.
1342-***
1343-Sec.13a.32V.S.A.§7702isamendedtoread:
1344-§7702.DEFINITIONS
1345-Asusedinthischapterunlessthecontextotherwiserequires:
1346-*** BILLASPASSEDBYTHEHOUSE H.321
1347-2025 Page42of43
1348-(15)“Othertobaccoproducts”meansanyproductmanufacturedfrom,
1349-derivedfrom,orcontainingtobaccoornicotine,whethernaturalorsynthetic,
1350-andincludingnicotinealkaloidsandnicotineanalogs,thatisintendedfor
1351-humanconsumptionbysmoking,chewing,orinanyothermanner,including
1352-productssoldasatobaccosubstitute,asdefinedin7V.S.A.§1001(8),and
1353-includinganyliquids,whethernicotinebasedornot,ordeliverydevicessold
1354-separatelyforusewithatobaccosubstitute,butshallnotincludecigarettes,
1355-littlecigars,roll-your-owntobacco,snuff,newsmokelesstobaccoasdefinedin
1356-thissection,orcannabisproductsasdefinedin7V.S.A.§831.
1357-***
1358-(20)“Newsmokelesstobacco”meansanytobaccoproduct
1359-manufacturedfrom,derivedfrom,orcontainingtobaccoornicotine,whether
1360-naturalorsynthetic,includingnicotinealkaloidsandnicotineanalogs,thatis
1361-notintendedtobesmoked,hasamoisturecontentoflessthan45percent,oris
1362-offeredinindividualsingle-dosetabletsorotherdiscretesingle-useunits.
1363-***
1364-Sec.14.2020ActsandResolvesNo.164,Sec.6d,asamendedby2023Acts
1365-andResolvesNo.3,Sec.90,isfurtheramendedtoread:
1366-Sec.6d. [Deleted.]
1367-Sec.15.CANNABISCONTROLBOARD;ENFORCEMENTATTORNEY;
1368-POSITION BILLASPASSEDBYTHEHOUSE H.321
1369-2025 Page43of43
1370-Onefull-time,permanent,exemptpositionofEnforcementAttorneyis
1371-authorizedintheCannabisControlBoardinfiscalyear2026.
1372-Sec.16.EFFECTIVEDATE
1373-ThisactshalltakeeffectJuly1,2025.
1+BILL AS INTRODUCED H.321
2+2025 Page 1 of 23
3+
4+
5+VT LEG #380104 v.1
6+H.321 1
7+Introduced by Representatives Birong of Vergennes and Boyden of Cambridge 2
8+Referred to Committee on 3
9+Date: 4
10+Subject: Cannabis; cannabis establishments 5
11+Statement of purpose of bill as introduced: This bill proposes to clarify that 6
12+cannabis possessed unlawfully in violation of administrative rules adopted by 7
13+the Cannabis Control Board may be seized by law enforcement and is subject 8
14+to forfeiture; to require fingerprint-based state and national criminal history 9
15+record check on any person prior to issuance of a cannabis establishment 10
16+identification card; to amend the definition of “hemp” to comport with the 11
17+Title 6 definition; to require the Board to adopt rules for cannabis retailers 12
18+regarding requirements and criteria governing licensee applications to change 13
19+ownership, control, or location; to authorize the Board to repeat criminal 14
20+background checks; to establish a procedure for receivership of a cannabis 15
21+establishment for a period of time in cases of death, disability, bankruptcy, 16
22+insolvency, receivership, assignment for the benefit of creditors, shareholder or 17
23+LLC member disputes, license interruption, or other exceptional circumstances 18
24+rendering one or more owners incapable of performing, or ineligible to 19
25+perform, the duties of a licensee; to establish a new trim and harvest service 20
26+license with an annual fee of $500.00; to require cannabis cultivators to include 21 BILL AS INTRODUCED H.321
27+2025 Page 2 of 23
28+
29+
30+VT LEG #380104 v.1
31+on cannabis packaging a “harvested on” date reflecting the date the cultivator 1
32+harvested the cannabis and a “packed on” date reflecting the date the product 2
33+was packaged for sale; to require cannabis retailers that collect cannabis excise 3
34+tax to inform the Department of Taxes before transferring the business to a 4
35+new entity; and to create a new position, Enforcement Attorney, within the 5
36+Cannabis Control Board. 6
37+An act relating to miscellaneous cannabis amendments 7
38+It is hereby enacted by the General Assembly of the State of Vermont: 8
39+Sec. 1. 7 V.S.A. § 832 is amended to read: 9
40+§ 832. CANNABIS POSSESSED UNLAWFULLY SUBJECT TO SEIZURE 10
41+ AND FORFEITURE 11
42+Cannabis possessed unlawfully in violation of this title or administrative 12
43+rules adopted pursuant to this title may be seized by law enforcement and is 13
44+subject to forfeiture. 14
45+Sec. 2. 7 V.S.A. § 844 is amended to read: 15
46+§ 844. AUTHORITY FOR CRIMINAL BACKGROUND CHECKS 16
47+(a) The Board shall establish a user agreement with the Vermont Crime 17
48+Information Center in accordance with 20 V.S.A. chapter 117 for the purpose 18
49+of obtaining Vermont criminal history records, out-of-state criminal history 19
50+records, and criminal history records from the Federal Bureau of Investigation 20 BILL AS INTRODUCED H.321
51+2025 Page 3 of 23
52+
53+
54+VT LEG #380104 v.1
55+as required by chapters 33 (cannabis establishments) and 37 (medical cannabis 1
56+dispensaries) of this title. 2
57+(b) A fingerprint-based state and national criminal history record check 3
58+shall be conducted for each natural person prior to being issued a cannabis 4
59+establishment identification card pursuant to chapter 33 (cannabis 5
60+establishments) of this title or a medical cannabis dispensary identification 6
61+card pursuant to chapter 37 (medical cannabis dispensaries) of this title. The 7
62+Board may require that such record checks be completed as a condition 8
63+precedent to license renewal. 9
64+Sec. 3. 7 V.S.A. § 861(23) is amended to read: 10
65+(23)(A) “Hemp products” or “hemp-infused products” means all 11
66+products with the federally defined tetrahydrocannabinol concentration level 12
67+for hemp derived from, or made by, processing hemp plants or plant parts that 13
68+are prepared in a form available for commercial sale, including cosmetics, 14
69+personal care products, food intended for animal or human consumption, cloth, 15
70+cordage, fiber, fuel, paint, paper, construction materials, plastics, and any 16
71+product containing one or more hemp-derived cannabinoids, such as 17
72+cannabidiol. 18
73+(B) Notwithstanding subdivision (A) of this subdivision (23), “hemp 19
74+products” and “hemp-infused products” do not include any substance, 20
75+manufacturing intermediary, or product that: 21 BILL AS INTRODUCED H.321
76+2025 Page 4 of 23
77+
78+
79+VT LEG #380104 v.1
80+(i) is prohibited or deemed a regulated cannabis product by 1
81+administrative rule of the Cannabis Control Board; or 2
82+(ii) contains more than 0.3 percent total tetrahydrocannabinol on a 3
83+dry-weight basis. 4
84+(C) A hemp-derived product or substance that is excluded from the 5
85+definition of “hemp products” or “hemp-infused products” pursuant to 6
86+subdivision (B) of this subdivision (23) shall be considered a cannabis product 7
87+as defined by 7 V.S.A. § 831(3); provided, however, that a person duly 8
88+licensed or registered by the Cannabis Control Board lawfully may possess 9
89+such products in conformity with the person’s license or hemp processor 10
90+registration. 11
91+Sec. 4. 7 V.S.A. § 881 is amended to read: 12
92+§ 881. RULEMAKING; CANNABIS ESTABLISHMENTS 13
93+(a) The Board shall adopt rules to implement and administer this chapter in 14
94+accordance with subdivisions (1)–(8)(9) of this subsection. 15
95+(1) Rules concerning any cannabis establishment shall include: 16
96+(A) the form and content of license and renewal applications; 17
97+(B) qualifications for licensure that are directly and demonstrably 18
98+related to the operation of a cannabis establishment, including: 19
99+(i) a requirement to submit an operating plan, which shall include 20
100+information concerning: 21 BILL AS INTRODUCED H.321
101+2025 Page 5 of 23
102+
103+
104+VT LEG #380104 v.1
105+(I) the type of business organization, the identity of its 1
106+controlling owners and principals, and the identity of the controlling owners 2
107+and principals of its affiliates; and 3
108+(II) the sources, amount, and nature of its capital, assets, and 4
109+financing; the identity of its financiers; and the identity of the controlling 5
110+owners and principals of its financiers; 6
111+(ii) a requirement to file an amendment to its operating plan in the 7
112+event of a significant change in organization, operation, or financing; and 8
113+(iii) the requirement for a fingerprint-based criminal history record 9
114+check and regulatory record check pursuant to section 883 of this title; 10
115+(C) oversight requirements, including provisions to ensure that a 11
116+licensed establishment complies with State and federal regulatory requirements 12
117+governing insurance, securities, workers’ compensation, unemployment 13
118+insurance, and occupational health and safety; 14
119+(D) inspection requirements; 15
120+(E) records to be kept by licensees and the required availability of the 16
121+records; 17
122+(F) employment and training requirements; 18
123+(G) security requirements, including any appropriate lighting, 19
124+physical security, video, and alarm requirements; 20
125+(H) health and safety requirements; 21 BILL AS INTRODUCED H.321
126+2025 Page 6 of 23
127+
128+
129+VT LEG #380104 v.1
130+(I) regulation of additives to cannabis and cannabis products, 1
131+including cannabidiol derived from hemp and substances that are toxic or 2
132+designed to make the product more addictive, more appealing to persons under 3
133+21 years of age, or to mislead consumers; 4
134+(J) procedures for seed-to-sale traceability of cannabis, including any 5
135+requirements for tracking software; 6
136+(K) regulation of the storage and transportation of cannabis; 7
137+(L) sanitary requirements; 8
138+(M) procedures for the renewal of a license, which shall allow 9
139+renewal applications to be submitted up to 90 days prior to the expiration of 10
140+the cannabis establishment’s license; 11
141+(N) procedures for suspension and revocation of a license; 12
142+(O) requirements for banking and financial transactions, including 13
143+provisions to ensure that the Board, the Department of Financial Regulation, 14
144+and financial institutions have access to relevant information concerning 15
145+licensed establishments to comply with State and federal regulatory 16
146+requirements; 17
147+(P) disclosure or eligibility requirements for a financier, its owners 18
148+and principals, and its affiliates, which may include: 19
149+(i) requirements to disclose information to a licensed 20
150+establishment, the Board, or the Department of Financial Regulation; 21 BILL AS INTRODUCED H.321
151+2025 Page 7 of 23
152+
153+
154+VT LEG #380104 v.1
155+(ii) a minimum age requirement and a requirement to conduct a 1
156+background check for natural persons; 2
157+(iii) requirements to ensure that a financier complies with 3
158+applicable State and federal laws governing financial institutions, licensed 4
159+lenders, and other financial service providers; and 5
160+(iv) any other requirements, conditions, or limitations on the type 6
161+or amount of loans or capital investments made by a financier or its affiliates, 7
162+which the Board, in consultation with the Department of Financial Regulation, 8
163+determines are necessary to protect the public health, safety, and general 9
164+welfare; 10
165+(Q) policies and procedures for conducting outreach and promoting 11
166+participation in the regulated cannabis market by diverse groups of individuals, 12
167+including those who have been disproportionately harmed by cannabis 13
168+prohibition; 14
169+(R) advertising and marketing; and 15
170+(S) requirements for cannabis control testing of hemp, hemp-infused 16
171+products, cannabis, and cannabis products; and 17
172+(T) requirements and criteria governing licensee applications to 18
173+change ownership, control, or location. 19
174+* * * 20
175+(9) Rules concerning trim and harvest services shall include: 21 BILL AS INTRODUCED H.321
176+2025 Page 8 of 23
177+
178+
179+VT LEG #380104 v.1
180+(A) requirements for verification of the licenses of clients; 1
181+(B) essential content and permissible terms of written service 2
182+contracts, including provisions for security and diversion prevention; 3
183+(C) provisions to ensure safe and lawful transportation and lodging of 4
184+travelling personnel; 5
185+(D) essential content of employee health, safety, and skills training, 6
186+including first aid and recognition of common pests and pathogens; 7
187+(E) requirements appropriate to minimize the risk of pest and 8
188+pathogen transmission; and 9
189+(F) procedures for documenting lawful compensation. 10
190+* * * 11
191+Sec. 5. 7 V.S.A. § 883 is amended to read: 12
192+§ 883. CRIMINAL BACKGROUND RECORD CHECKS; APPLICANTS 13
193+(a) The Board shall obtain from the Vermont Crime Information Center a 14
194+copy of a fingerprint-based Vermont criminal history records, out-of-state 15
195+criminal history records, and criminal history records from the Federal Bureau 16
196+of Investigation for each license applicant, principal of an applicant, and 17
197+person who controls an applicant who is a natural person. Checks may be 18
198+repeated for good cause or with prudent frequency as determined by the Board. 19
199+(b) The Board shall adopt rules that set forth standards for determining 20
200+whether an applicant should be denied a cannabis establishment license 21 BILL AS INTRODUCED H.321
201+2025 Page 9 of 23
202+
203+
204+VT LEG #380104 v.1
205+because of his or her the applicant’s criminal history record based on factors 1
206+that demonstrate whether the applicant presently poses a threat to public safety 2
207+or the proper functioning of the regulated market. Nonviolent drug offenses 3
208+shall not automatically disqualify an applicant. 4
209+(c) Notwithstanding subsection (a) of this section or subsection 844(b) of 5
210+this title, if required records are not reasonably available to the Board due to 6
211+circumstances beyond its control, with the consent of the applicant, the Board 7
212+may accept third-party criminal background checks submitted by an applicant 8
213+for a cannabis establishment license or renewal in lieu of obtaining the records 9
214+from the Vermont Crime Information Center a copy of the person’s Vermont 10
215+fingerprint-based criminal history records, out-of-state criminal history 11
216+records, and criminal history records from the Federal Bureau of Investigation 12
217+from a reputable commercial provider. Any such third-party background 13
218+check shall: 14
219+(1) be conducted by a third-party consumer reporting agency or 15
220+background screening company that is in compliance with the federal Fair 16
221+Credit Reporting Act; and 17
222+(2) include a multistate and multi-jurisdiction criminal record locator. 18
223+Consumer credit scores shall not be a basis for license denial. 19 BILL AS INTRODUCED H.321
224+2025 Page 10 of 23
225+
226+
227+VT LEG #380104 v.1
228+Sec. 6. 7 V.S.A. § 884 is amended to read: 1
229+§ 884. CANNABIS ESTABLISHMENT IDENTIFICATION CARD 2
230+(a) Every owner, principal, and employee of a cannabis establishment shall 3
231+obtain an identification card issued by the Board. A person may apply for an 4
232+identification card prior to obtaining employment with a licensee. An 5
233+employee identification card shall authorize the person to work for any 6
234+licensee. 7
235+(b)(1)(A) Prior to issuing the identification card to an owner or principal of 8
236+a cannabis establishment, the Board shall obtain from the Vermont Crime 9
237+Information Center a copy of the person’s Vermont fingerprint-based criminal 10
238+history records, out-of-state criminal history records, and criminal history 11
239+records from the Federal Bureau of Investigation. 12
240+(B) Prior to issuing the identification card to an employee of a 13
241+cannabis establishment, the Board shall obtain a copy of a fingerprint-based 14
242+identity history summary record from the Federal Bureau of Investigation. 15
243+(2) The Board shall adopt rules that set forth standards for determining 16
244+whether a person should be denied a cannabis establishment identification card 17
245+because of his or her the person’s criminal history record based on factors that 18
246+demonstrate whether the applicant presently poses a threat to public safety or 19
247+the proper functioning of the regulated market. Nonviolent drug offenses shall 20
248+not automatically disqualify an applicant. 21 BILL AS INTRODUCED H.321
249+2025 Page 11 of 23
250+
251+
252+VT LEG #380104 v.1
253+(c) Once an identification card application has been submitted, a person the 1
254+Board, for good cause, may serve issue a temporary permit authorizing the 2
255+applicant to serve as an employee of a cannabis establishment pending the 3
256+background check, provided the person is supervised in his or her duties by 4
257+someone who is a cardholder. The Board shall issue a temporary permit to the 5
258+person for this purpose, which shall expire upon the issuance of the 6
259+identification card or disqualification of the person in accordance with this 7
260+section Good cause exists if, among other reasons, the application is 8
261+reasonably expected to take more than 12 days to process. 9
262+(d) An identification card shall expire one year after its issuance or, in the 10
263+case of owners and principals, upon the expiration of the cannabis 11
264+establishment’s license, whichever occurs first. 12
265+Sec. 7. 7 V.S.A. § 886 is added to read: 13
266+§ 886. RECEIVERSHIP; SPECIAL PERMITTING; IMMUNITY 14
267+(a) When a cannabis establishment becomes distressed, it may abruptly 15
268+lose authority or ability to possess commercial quantities of cannabis. It is the 16
269+purpose of this section to empower the Civil Division of the Superior Court 17
270+and the Board to oversee the orderly unwinding of cannabis establishments, 18
271+including lawful disposition of inventory in lieu of forfeiture, in case of 19
272+functional distress or interruption in active licensure. 20 BILL AS INTRODUCED H.321
273+2025 Page 12 of 23
274+
275+
276+VT LEG #380104 v.1
277+(b)(1) An individual may be appointed as receiver, representative, executor, 1
278+administrator, guardian, conservator, trustee, or assignee, to temporarily 2
279+operate a cannabis establishment on the licensed premises for a period of time 3
280+determined by the Board in cases of death, disability, bankruptcy, insolvency, 4
281+receivership, assignment for the benefit of creditors, shareholder or LLC 5
282+member disputes, license interruption, or other exceptional circumstances 6
283+rendering one or more owners incapable of performing, or ineligible to 7
284+perform, the duties of a licensee. Such appointee shall be at least 21 years of 8
285+age. 9
286+(2)(A) Such appointee shall not be permitted to conduct licensed 10
287+activities without the express authorization of the Board, which may be granted 11
288+upon submission and approval of a written request for the authority to 12
289+temporarily conduct licensed activities. The written request shall include 13
290+information or disclosures required by the Board, including: 14
291+(i) name; 15
292+(ii) valid identification; 16
293+(iii) phone number; 17
294+(iv) mailing address; 18
295+(v) email address; 19
296+(vi) Social Security number; 20 BILL AS INTRODUCED H.321
297+2025 Page 13 of 23
298+
299+
300+VT LEG #380104 v.1
301+(vii) the name of the person on whose behalf the appointee is 1
302+appointed; 2
303+(viii) proof that such appointee is the legal receiver, 3
304+representative, executor, administrator, guardian, conservator, trustee, or 4
305+assignee, and; 5
306+(ix) any direct or indirect interests held by that appointee in a 6
307+cannabis license, registration or permit. 7
308+(B) The Board may adopt rules governing appointment and the 8
309+process and qualifications. 9
310+(3) Authorization to conduct licensed activities by the appointee is 10
311+conditioned on compliance with these regulations, including restrictions on 11
312+ownership and other interests, approval by the Board, and the authorization 12
313+shall not constitute a guarantee of license issuance or renewal by the Board. 13
314+(4) Any licensee or person who files, or against whom is filed, any 14
315+action or proceeding, or who seeks an appointment, as set forth in subdivision 15
316+(1) of this subsection, is required to serve the Board with original notice of the 16
317+action or proceeding and provide the Board with opportunity to be heard 17
318+regarding the appointment. Such notice shall be provided to employees upon 18
319+commencement of such proceeding for a receivership. A licensee surrendering 19
320+its license shall provide its employees any lawfully required warnings of 20
321+closures and layoffs. 21 BILL AS INTRODUCED H.321
322+2025 Page 14 of 23
323+
324+
325+VT LEG #380104 v.1
326+(c) When no licensed custodian can be found to take custody of or transport 1
327+cannabis or cannabis products, the Board, in its sole discretion, may issue a 2
328+special permit temporarily authorizing an unlicensed designee of suitable 3
329+ability and judgment to possess, transport, or dispose of cannabis and cannabis 4
330+products as specified by the terms of the permit. The permit shall be printed 5
331+on official Board letterhead, bear the signature of the Chair of the Board, state 6
332+clearly a means of prompt authentication by law enforcement and licensees, 7
333+and specify start and end dates and times. 8
334+(d) A person acting as a duly appointed receiver or in conformity with the 9
335+terms of a special Board permit issued pursuant to subsection (c) of this section 10
336+shall be immune from civil and criminal liability in relation to possession, 11
337+transportation, or transfer of cannabis within the borders of this State. The 12
338+Board shall not be liable for economic losses resulting from forfeiture, seizure, 13
339+sequestration, sale stoppage, transportation, storage, or destruction of cannabis 14
340+or cannabis products. 15
341+Sec. 8. 7 V.S.A. § 901 is amended to read: 16
342+§ 901. GENERAL PROVISIONS 17
343+(a) Except as otherwise permitted by law, a person shall not engage in the 18
344+cultivation, preparation, processing, packaging, transportation, testing, or sale 19
345+of cannabis or cannabis products without obtaining a license from the Board. 20 BILL AS INTRODUCED H.321
346+2025 Page 15 of 23
347+
348+
349+VT LEG #380104 v.1
350+(b) All licenses shall be valid for one year and expire at midnight on the 1
351+eve of the anniversary of the date the license was issued. A licensee may apply 2
352+to renew the license annually. 3
353+(c) Applications for licenses and renewals shall be submitted on forms 4
354+provided by the Board and shall be accompanied by the fees provided for in 5
355+section 910 of this title. 6
356+(d)(1) There shall be seven eight types of licenses available: 7
357+(A) a cultivator license; 8
358+(B) a propagator license; 9
359+(C) a wholesaler license; 10
360+(D) a product manufacturer license; 11
361+(E) a retailer license; 12
362+(F) a testing laboratory license; and 13
363+(G) a trim and harvest service license; and 14
364+(H) an integrated license. 15
365+(2)(A) The Board shall develop tiers for: 16
366+(i) cultivator licenses based on the plant canopy size of the 17
367+cultivation operation or plant count for breeding stock; and 18
368+(ii) retailer licenses. 19
369+(B) The Board may develop tiers for other types of licenses. 20 BILL AS INTRODUCED H.321
370+2025 Page 16 of 23
371+
372+
373+VT LEG #380104 v.1
374+(3)(A) Except as provided in subdivisions (B) and (C) of this 1
375+subdivision (3), an applicant and its affiliates may obtain a maximum of one 2
376+type of each type of license as provided in subdivisions (1)(A)–(F)(G) of this 3
377+subsection (d). Each license shall permit only one location of the 4
378+establishment, however a trim and harvest service licensee may provide 5
379+services at multiple other licensed cannabis establishments. 6
380+(B) An applicant and its affiliates that control a dispensary registered 7
381+on April 1, 2022 may obtain one integrated license provided in subdivision 8
382+(1)(G)(H) of this subsection (d) or a maximum of one of each type of license 9
383+provided in subdivisions (1)(A)–(F) of this subsection (d). An integrated 10
384+licensee may not hold a separate cultivator, propagator, wholesaler, product 11
385+manufacturer, retailer, or testing laboratory license, and no applicant or its 12
386+affiliates that control a dispensary shall hold more than one integrated license. 13
387+An integrated license shall permit only one location for each of the types of 14
388+activities permitted by the license: cultivation, propagator, wholesale 15
389+operations, product manufacturing, retail sales, and testing. 16
390+(C) An applicant and its affiliates may obtain multiple testing 17
391+laboratory licenses. 18
392+(e) A dispensary that obtains a retailer license or an integrated license 19
393+pursuant to this chapter shall maintain the dispensary and retail operations in a 20 BILL AS INTRODUCED H.321
394+2025 Page 17 of 23
395+
396+
397+VT LEG #380104 v.1
398+manner that protects patient and caregiver privacy in accordance with rules 1
399+adopted by the Board. 2
400+(f) Each licensee shall obtain and maintain commercial general liability 3
401+insurance in accordance with rules adopted by the Board. Failure to provide 4
402+proof of insurance to the Board, as required, may result in revocation of the 5
403+license. 6
404+(g) All licenses may be renewed according to procedures adopted through 7
405+rulemaking by the Board. 8
406+(h) [Repealed.] 9
407+Sec. 9. 7 V.S.A. § 904 is amended to read: 10
408+§ 904. CULTIVATOR LICENSE 11
409+* * * 12
410+(d) Each cultivator shall create packaging for its cannabis. 13
411+(1) Packaging shall include: 14
412+(A) The name and registration number of the cultivator. 15
413+(B) The strain and variety of cannabis contained. 16
414+(C) The potency of the cannabis represented by the amount of 17
415+tetrahydrocannabinol and cannabidiol in milligrams total and per serving. 18
416+(D) A “produced on” date reflecting the date that the cultivator 19
417+finished producing the cannabis “harvested on” date reflecting the date the 20 BILL AS INTRODUCED H.321
418+2025 Page 18 of 23
419+
420+
421+VT LEG #380104 v.1
422+cultivator harvested the cannabis and a “packed on” date reflecting the date the 1
423+product was packaged for sale. 2
424+(E) Appropriate warnings as prescribed by the Board in rule. 3
425+(F) Any additional requirements contained in rules adopted by the 4
426+Board in accordance with this chapter. Rules shall take into consideration that 5
427+different labeling requirements may be appropriate depending on whether the 6
428+cannabis is sold to a wholesaler, product manufacturer, or retailer. 7
429+(2) Packaging shall not be designed to appeal to persons under 21 years 8
430+of age. 9
431+* * * 10
432+Sec. 10. 7 V.S.A. § 904b is amended to read: 11
433+§ 904b. PROPAGATION CULTIVATOR LICENSE 12
434+(a) A propagation cultivator licensed under this section may: 13
435+(1) cultivate not more than 3,500 square feet of cannabis clones, 14
436+immature cannabis plants, or mature cannabis plants; 15
437+(2) test, transport, and sell cannabis clones and immature cannabis 16
438+plants to licensed cultivators and retailers; and 17
439+(3) test, transport, and sell cannabis seeds that meet the federal 18
440+definition of hemp to a licensed cultivator or retailer or to the public. 19 BILL AS INTRODUCED H.321
441+2025 Page 19 of 23
442+
443+
444+VT LEG #380104 v.1
445+(b) A licensed propagation cultivator shall not cultivate mature cannabis 1
446+plants for the purpose of producing, harvesting, transferring, or selling 2
447+cannabis flower for or to any person. 3
448+Sec. 11. 7 V.S.A. § 904c is added to read: 4
449+§ 904c. TRIM AND HARVEST SERVICE LICENSE 5
450+A trim and harvest service licensed under this section may contract with 6
451+cultivators licensed under section 904 or 904a of this chapter, on a seasonal or 7
452+temporary basis, to supply specified cannabis maintenance services within the 8
453+scope of each client-cultivator’s license. 9
454+Sec. 12. 7 V.S.A. § 910 is amended to read: 10
455+§ 910. CANNABIS ESTABLISHMENT FEE SCHEDULE 11
456+The following fees shall apply to each person or product licensed by the 12
457+Board: 13
458+* * * 14
459+(8) Trim and harvest services. Trim and harvest services shall be 15
460+assessed an annual licensing fee of $500.00. 16
461+(9) Employees. Cannabis establishments licensed by the Board shall be 17
462+assessed an annual a biennial licensing fee of $50.00 for each employee. 18
463+(9)(10) Products. Cannabis establishments licensed by the Board shall 19
464+be assessed an annual a biennial product licensing fee of $50.00 for every type 20
465+of cannabis and cannabis product that is sold in accordance with this chapter. 21 BILL AS INTRODUCED H.321
466+2025 Page 20 of 23
467+
468+
469+VT LEG #380104 v.1
470+The Board may issue longer product registrations, prorated at the same cost per 1
471+year, for products it deems low risk and shelf stable. Such products may be 2
472+defined and distinguished in readily accessible published guidance. 3
473+(10)(11) Local licensing fees. Cannabis establishments licensed by the 4
474+Board shall be assessed an annual local licensing fee of $100.00 in addition to 5
475+each fee assessed under subdivisions (1)–(7) of this section. Local licensing 6
476+fees shall be distributed to the municipality in which the cannabis 7
477+establishment is located pursuant to section 846(c) of this title. 8
478+(11)(12) One-time fees Application fee. 9
479+(A) All applicants for a cannabis establishment license shall be 10
480+assessed an initial one-time application fee of $1,000.00. 11
481+(B) An applicant may choose to be assessed an initial one-time intent-12
482+to-apply fee of $500.00. If the applicant subsequently seeks a license within 13
483+one year after paying the intent-to-apply fee, the initial one-time application 14
484+fee of $1,000.00 shall be reduced by $500.00. 15
485+Sec. 13. 32 V.S.A. § 3260 is amended to read: 16
486+§ 3260. BULK SALES 17
487+(a) Whenever a person (transferor) required to collect or withhold a trust 18
488+tax pursuant to chapter 151, 207, 225, or 233 of this title shall make any sale, 19
489+transfer, long-term lease, or assignment (transfer) in bulk of any part or the 20
490+whole of the assets of a business, otherwise than in the ordinary course of the 21 BILL AS INTRODUCED H.321
491+2025 Page 21 of 23
492+
493+
494+VT LEG #380104 v.1
495+business, the purchaser, transferee or assignee (transferee) shall, at least 10 1
496+days before taking possession of the subject of the transfer or before payment 2
497+therefore if earlier, notify the Commissioner in writing of the proposed sale 3
498+and of the price, terms, and conditions thereof whether or not the transferor has 4
499+represented to or informed the transferee that the transferor owes any trust tax 5
500+pursuant to chapter 151, 207, 225, or 233 and whether or not the transferee has 6
501+knowledge that such taxes are owed, and whether any taxes are in fact owed. 7
502+(b) Whenever the transferee shall fail to give notice to the Commissioner as 8
503+required by subsection (a) of this section, or whenever the Commissioner shall 9
504+inform the transferee that a possible claim for tax exists, any sums of money, 10
505+property, or choses in action, or other consideration, which the transferee is 11
506+required to transfer over to or for the transferor, shall be subject to a first 12
507+priority right and lien for any taxes theretofore or thereafter determined to be 13
508+due from the transferor to the State, and the transferee is forbidden to transfer 14
509+the consideration to or for the transferor to the extent of the amount of the 15
510+State’s claim. 16
511+(c) For failure to comply with this section, the transferee shall be 17
512+personally liable for the payment to the State of any taxes theretofore or 18
513+thereafter determined to be due to the State from the transferor and the liability 19
514+may be assessed and enforced in the same manner as the liability for tax under 20
515+chapter 151, 207, 225, or 233. 21 BILL AS INTRODUCED H.321
516+2025 Page 22 of 23
517+
518+
519+VT LEG #380104 v.1
520+Sec. 14. 2022 Acts and Resolves No. 185, Secs E.240.5 and E.240.6 are 1
521+amended to read: 2
522+Sec. E.240.5. [Deleted.] 3
523+Sec. E.240.6. [Deleted.] 4
524+Sec. 15. 2022 Acts and Resolves No. 185, Sec. H.100 is amended to read: 5
525+Sec. H.100. EFFECTIVE DATES 6
526+* * * 7
527+(b) [Deleted.] 8
528+* * * 9
529+Sec. 16. ISSUANCE OF RETAILER LICENSES 10
530+Notwithstanding any other provision of law, the Cannabis Control Board 11
531+shall not issue any new retailer licenses until July 1, 2027, provided that: 12
532+(1) annual renewals of retailer licenses that were originally issued prior 13
533+to February 1, 2025 may be issued; 14
534+(2) amendments to and early renewals of retailer licenses that were 15
535+originally issued prior to February 1, 2025 may be issued in the case of 16
536+changes in location of the licensed retailer where the proposed new location 17
537+would be permissible as a new licensed location pursuant to rules adopted by 18
538+the Board under 7 V.S.A. § 881(a)(5)(F); 19 BILL AS INTRODUCED H.321
539+2025 Page 23 of 23
540+
541+
542+VT LEG #380104 v.1
543+(3) amendments to and early renewals of retailer licenses that were 1
544+originally issued prior to February 1, 2025 may be issued in the case of 2
545+changes in control of the licensed retailer; and 3
546+(4) the Board may issue new retailer licenses prior to July 1, 2027 if, at 4
547+the time of such issuance, the number of licensed retailers is fewer than the 5
548+number of 80 locations. 6
549+Sec. 17. CANNABIS CONTROL BOARD; ENFORC EMENT ATTORNEY; 7
550+ POSITION 8
551+One full-time, permanent, exempt position of Enforcement Attorney is 9
552+authorized in the Cannabis Control Board in fiscal year 2025. 10
553+Sec. 18. EFFECTIVE DATE 11
554+This act shall take effect on passage. 12