1 | | - | BILLASPASSEDBYTHEHOUSE H.321 |
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3 | | - | H.321 |
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4 | | - | IntroducedbyRepresentativesBirongofVergennesandBoydenofCambridge |
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5 | | - | ReferredtoCommitteeon |
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6 | | - | Date: |
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7 | | - | Subject:Cannabis;cannabisestablishments |
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8 | | - | Statementofpurposeofbillasintroduced:Thisbillproposestoclarifythat |
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9 | | - | cannabispossessedunlawfullyinviolationofadministrativerulesadoptedby |
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10 | | - | theCannabisControlBoardmaybeseizedbylawenforcementandissubject |
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11 | | - | toforfeiture;torequirefingerprint-basedstateandnationalcriminalhistory |
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12 | | - | recordcheckonanypersonpriortoissuanceofacannabisestablishment |
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13 | | - | identificationcard;toamendthedefinitionof“hemp”tocomportwiththe |
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14 | | - | Title6definition;torequiretheBoardtoadoptrulesforcannabisretailers |
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15 | | - | regardingrequirementsandcriteriagoverninglicenseeapplicationstochange |
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16 | | - | ownership,control,orlocation;toauthorizetheBoardtorepeatcriminal |
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17 | | - | backgroundchecks;toestablishaprocedureforreceivershipofacannabis |
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18 | | - | establishmentforaperiodoftimeincasesofdeath,disability,bankruptcy, |
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19 | | - | insolvency,receivership,assignmentforthebenefitofcreditors,shareholderor |
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20 | | - | LLCmemberdisputes,licenseinterruption,orotherexceptionalcircumstances |
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21 | | - | renderingoneormoreownersincapableofperforming,orineligibleto |
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22 | | - | perform,thedutiesofalicensee;toestablishanewtrimandharvestservice |
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23 | | - | licensewithanannualfeeof$500.00;torequirecannabiscultivatorsto |
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46 | | - | includeoncannabispackaginga“harvestedon”datereflectingthedatethe |
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47 | | - | cultivatorharvestedthecannabisanda“packedon”datereflectingthedatethe |
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48 | | - | productwaspackagedforsale;torequirecannabisretailersthatcollect |
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49 | | - | cannabisexcisetaxtoinformtheDepartmentofTaxesbeforetransferringthe |
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50 | | - | businesstoanewentity;andtocreateanewposition,EnforcementAttorney, |
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51 | | - | withintheCannabisControlBoard. |
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52 | | - | Anactrelatingtomiscellaneouscannabisamendments |
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53 | | - | ItisherebyenactedbytheGeneralAssemblyoftheStateofVermont: |
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54 | | - | Sec.1.7V.S.A.§ 832isamendedtoread: |
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55 | | - | §832.CANNABISPOSSESSEDUNLAWFULLYSUBJECTTOSEIZURE |
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56 | | - | ANDFORFEITURE |
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57 | | - | Cannabispossessedunlawfullyinviolationofthistitleoradministrative |
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58 | | - | rulesadoptedpursuanttothistitlemaybeseizedbylawenforcementandis |
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59 | | - | subjecttoforfeiture. |
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60 | | - | Sec.2.7V.S.A.§ 844isamendedtoread: |
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61 | | - | §844.AUTHORITYFORCRIMINALBACKGROUND CHECKS |
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62 | | - | (a)TheBoardshallestablishauseragreementwiththeVermontCrime |
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63 | | - | InformationCenterinaccordancewith20V.S.A.chapter117forthepurpose |
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64 | | - | ofobtainingVermontcriminalhistoryrecords,out-of-statecriminalhistory |
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85 | | - | records,andcriminalhistoryrecordsfromtheFederalBureauofInvestigation |
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86 | | - | asrequiredbychapters33(cannabisestablishments)and37(medicalcannabis |
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87 | | - | dispensaries)ofthistitle. |
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88 | | - | (b)Afingerprint-basedstateandnationalcriminalhistoryrecordcheck |
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89 | | - | shallbeconductedforeachnaturalpersonpriortobeingissuedacannabis |
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90 | | - | establishmentidentificationcardpursuanttochapter33(cannabis |
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91 | | - | establishments)ofthistitleoramedicalcannabisdispensaryidentification |
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92 | | - | cardpursuanttochapter37(medicalcannabisdispensaries)ofthistitle.The |
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93 | | - | Boardmayrequirethatsuchrecordchecksbecompletedasacondition |
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94 | | - | precedenttolicenserenewal. |
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95 | | - | Sec.3.7V.S.A.§ 861(23)isamendedtoread: |
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96 | | - | (23)(A)“Hempproducts”or“hemp-infusedproducts”meansall |
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97 | | - | productswiththefederallydefinedtetrahydrocannabinolconcentrationlevel |
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98 | | - | forhempderivedfrom,ormadeby,processinghempplantsorplantpartsthat |
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99 | | - | arepreparedinaformavailableforcommercialsale,includingcosmetics, |
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100 | | - | personalcareproducts,foodintendedforanimalorhumanconsumption,cloth, |
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101 | | - | cordage,fiber,fuel,paint,paper,constructionmaterials,plastics,andany |
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102 | | - | productcontainingoneormorehemp-derivedcannabinoids,suchas |
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103 | | - | cannabidiol. |
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124 | | - | (B)Notwithstandingsubdivision(A)ofthissubdivision(23),“hemp |
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125 | | - | products”and“hemp-infusedproducts”donotincludeanysubstance, |
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126 | | - | manufacturingintermediary,orproductthat: |
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127 | | - | (i)isprohibitedordeemedaregulatedcannabisproductby |
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128 | | - | administrativeruleoftheCannabisControlBoard;or |
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129 | | - | (ii)containsmorethan0.3percenttotaltetrahydrocannabinolona |
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130 | | - | dry-weightbasis. |
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131 | | - | (C)Ahemp-derivedproductorsubstancethatisexcludedfromthe |
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132 | | - | definitionof“hempproducts”or“hemp-infusedproducts”pursuantto |
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133 | | - | subdivision(B)ofthissubdivision(23)shallbeconsideredacannabisproduct |
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134 | | - | asdefinedby7V.S.A.§831(3);provided,however,thatapersonduly |
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135 | | - | licensedorregisteredbytheCannabisControlBoardlawfullymaypossess |
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136 | | - | suchproductsinconformitywiththeperson’slicenseorhempprocessor |
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137 | | - | registration. |
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138 | | - | Sec.4.7V.S.A.§ 881isamendedtoread: |
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139 | | - | §881.RULEMAKING;CANNABISESTABLISHMENTS |
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140 | | - | (a)TheBoardshalladoptrulestoimplementandadministerthischapterin |
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141 | | - | accordancewithsubdivisions(1)–(8)(9)ofthissubsection. |
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142 | | - | (1)Rulesconcerninganycannabisestablishmentshallinclude: |
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143 | | - | (A)theformandcontentoflicenseandrenewalapplications; |
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165 | | - | (B)qualificationsforlicensurethataredirectlyanddemonstrably |
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166 | | - | relatedtotheoperationofacannabisestablishment,including: |
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167 | | - | (i)arequirementtosubmitanoperatingplan,whichshallinclude |
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168 | | - | informationconcerning: |
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169 | | - | (I)thetypeofbusinessorganization,theidentityofits |
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170 | | - | controllingownersandprincipals,andtheidentityofthecontrollingowners |
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171 | | - | andprincipalsofitsaffiliates;and |
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172 | | - | (II)thesources,amount,andnatureofitscapital,assets,and |
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173 | | - | financing;theidentityofitsfinanciers;andtheidentityofthecontrolling |
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174 | | - | ownersandprincipalsofitsfinanciers; |
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175 | | - | (ii)arequirementtofileanamendmenttoitsoperatingplaninthe |
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176 | | - | eventofasignificantchangeinorganization,operation,orfinancing;and |
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177 | | - | (iii)therequirementforafingerprint-basedcriminalhistory |
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178 | | - | recordcheckandregulatoryrecordcheckpursuanttosection883ofthistitle; |
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179 | | - | (C)oversightrequirements,includingprovisionstoensurethata |
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180 | | - | licensedestablishmentcomplieswithStateandfederalregulatoryrequirements |
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181 | | - | governinginsurance,securities,workers’compensation,unemployment |
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182 | | - | insurance,andoccupationalhealthandsafety; |
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183 | | - | (D)inspectionrequirements; |
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184 | | - | (E)recordstobekeptbylicenseesandtherequiredavailabilityofthe |
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185 | | - | records; |
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208 | | - | (F)employmentandtrainingrequirements; |
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209 | | - | (G)securityrequirements,includinganyappropriatelighting, |
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210 | | - | physicalsecurity,video,andalarmrequirements; |
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211 | | - | (H)healthandsafetyrequirements; |
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212 | | - | (I)regulationofadditivestocannabisandcannabisproducts, |
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213 | | - | includingcannabidiolderivedfromhempandsubstancesthataretoxicor |
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214 | | - | designedtomaketheproductmoreaddictive,moreappealingtopersonsunder |
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215 | | - | 21yearsofage,ortomisleadconsumers; |
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216 | | - | (J)proceduresforseed-to-saletraceabilityofcannabis,includingany |
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217 | | - | requirementsfortrackingsoftware; |
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218 | | - | (K)regulationofthestorageandtransportationofcannabis; |
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219 | | - | (L)sanitaryrequirements; |
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220 | | - | (M)proceduresfortherenewalofalicense,whichshallallow |
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221 | | - | renewalapplicationstobesubmittedupto90dayspriortotheexpirationof |
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222 | | - | thecannabisestablishment’slicense; |
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223 | | - | (N)proceduresforsuspensionandrevocationofalicense; |
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224 | | - | (O)requirementsforbankingandfinancialtransactions,including |
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225 | | - | provisionstoensurethattheBoard,theDepartmentofFinancialRegulation, |
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226 | | - | andfinancialinstitutionshaveaccesstorelevantinformationconcerning |
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227 | | - | licensedestablishmentstocomplywithStateandfederalregulatory |
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228 | | - | requirements; |
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251 | | - | (P)disclosureoreligibilityrequirementsforafinancier,itsowners |
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252 | | - | andprincipals,anditsaffiliates,whichmayinclude: |
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253 | | - | (i)requirementstodiscloseinformationtoalicensed |
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254 | | - | establishment,theBoard,ortheDepartmentofFinancialRegulation; |
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255 | | - | (ii)aminimumagerequirementandarequirementtoconducta |
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256 | | - | backgroundcheckfornaturalpersons; |
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257 | | - | (iii)requirementstoensurethatafinanciercomplieswith |
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258 | | - | applicableStateandfederallawsgoverningfinancialinstitutions,licensed |
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259 | | - | lenders,andotherfinancialserviceproviders;and |
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260 | | - | (iv)anyotherrequirements,conditions,orlimitationsonthetype |
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261 | | - | oramountofloansorcapitalinvestmentsmadebyafinancieroritsaffiliates, |
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262 | | - | whichtheBoard,inconsultationwiththeDepartmentofFinancialRegulation, |
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263 | | - | determinesarenecessarytoprotectthepublichealth,safety,andgeneral |
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264 | | - | welfare; |
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265 | | - | (Q)policiesandproceduresforconductingoutreachandpromoting |
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266 | | - | participationintheregulatedcannabismarketbydiversegroupsofindividuals, |
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267 | | - | includingthosewhohavebeendisproportionatelyharmedbycannabis |
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268 | | - | prohibition; |
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269 | | - | (R)advertisingandmarketing;and |
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270 | | - | (S)requirementsforcannabiscontroltestingofhemp,hemp-infused |
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271 | | - | products,cannabis,andcannabisproducts;and |
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294 | | - | (T)requirementsandcriteriagoverninglicenseeapplicationsto |
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295 | | - | changeownership,control,orlocation. |
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296 | | - | *** |
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297 | | - | (9)Rulesconcerningtrimandharvestservicesshallinclude: |
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298 | | - | (A)requirementsforverificationofthelicensesofclients; |
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299 | | - | (B)essentialcontentandpermissibletermsofwrittenservice |
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300 | | - | contracts,includingprovisionsforsecurityanddiversionprevention; |
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301 | | - | (C)provisionstoensuresafeandlawfultransportationandlodging |
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302 | | - | oftravellingpersonnel; |
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303 | | - | (D)essentialcontentofemployeehealth,safety,andskillstraining, |
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304 | | - | includingfirstaidandrecognitionofcommonpestsandpathogens; |
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305 | | - | (E)requirementsappropriatetominimizetheriskofpestand |
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306 | | - | pathogentransmission;and |
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307 | | - | (F)proceduresfordocumentinglawfulcompensation. |
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308 | | - | *** |
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309 | | - | Sec.5.7V.S.A.§ 883isamendedtoread: |
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310 | | - | §883.CRIMINALBACKGROUND RECORDCHECKS;APPLICANTS |
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311 | | - | (a)TheBoardshallobtainfromtheVermontCrimeInformationCentera |
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312 | | - | copyofafingerprint-basedVermontcriminalhistoryrecords,out-of-state |
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313 | | - | criminalhistoryrecords,andcriminalhistoryrecordsfromtheFederalBureau |
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314 | | - | ofInvestigationforeachlicenseapplicant,principalofanapplicant,and |
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337 | | - | personwhocontrolsanapplicantwhoisanaturalperson.Checksmaybe |
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338 | | - | repeatedforgoodcauseorwithprudentfrequencyasdeterminedbytheBoard. |
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339 | | - | (b)TheBoardshalladoptrulesthatsetforthstandardsfordetermining |
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340 | | - | whetheranapplicantshouldbedeniedacannabisestablishmentlicense |
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341 | | - | becauseofhisorhertheapplicant’scriminalhistoryrecordbasedonfactors |
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342 | | - | thatdemonstratewhethertheapplicantpresentlyposesathreattopublicsafety |
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343 | | - | ortheproperfunctioningoftheregulatedmarket.Nonviolentdrugoffenses |
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344 | | - | shallnotautomaticallydisqualifyanapplicant. |
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345 | | - | (c)Notwithstandingsubsection(a)ofthissectionorsubsection844(b)of |
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346 | | - | thistitle,ifrequiredrecordsarenotreasonablyavailabletotheBoarddueto |
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347 | | - | circumstancesbeyonditscontrol,withtheconsentoftheapplicant,theBoard |
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348 | | - | mayacceptthird-partycriminalbackgroundcheckssubmittedbyanapplicant |
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349 | | - | foracannabisestablishmentlicenseorrenewalinlieuofobtainingtherecords |
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350 | | - | fromtheVermontCrimeInformationCenteracopyoftheperson’sVermont |
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351 | | - | fingerprint-basedcriminalhistoryrecords,out-of-statecriminalhistory |
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352 | | - | records,andcriminalhistoryrecordsfromtheFederalBureauofInvestigation |
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353 | | - | fromareputablecommercialprovider.Anysuchthird-partybackground |
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354 | | - | checkshall: |
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355 | | - | (1)beconductedbyathird-partyconsumerreportingagencyor |
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356 | | - | backgroundscreeningcompanythatisincompliancewiththefederalFair |
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357 | | - | CreditReportingAct;and |
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380 | | - | (2)includeamultistateandmulti-jurisdictioncriminalrecordlocator. |
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381 | | - | Consumercreditscoresshallnotbeabasisforlicensedenial. |
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382 | | - | Sec.6.7V.S.A.§ 884isamendedtoread: |
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383 | | - | §884.CANNABISESTABLISHMENTIDENTIFICATIONCARD |
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384 | | - | (a)Everyowner,principal,andemployeeofacannabisestablishmentshall |
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385 | | - | obtainanidentificationcardissuedbytheBoard.Apersonmayapplyforan |
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386 | | - | identificationcardpriortoobtainingemploymentwithalicensee.An |
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387 | | - | employeeidentificationcardshallauthorizethepersontoworkforany |
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388 | | - | licensee. |
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389 | | - | (b)(1)(A)Priortoissuingtheidentificationcardtoanownerorprincipalof |
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390 | | - | acannabisestablishment,theBoardshallobtainfromtheVermontCrime |
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391 | | - | InformationCenteracopyoftheperson’sVermontfingerprint-basedcriminal |
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392 | | - | historyrecords,out-of-statecriminalhistoryrecords,andcriminalhistory |
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393 | | - | recordsfromtheFederalBureauofInvestigation. |
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394 | | - | (B)Priortoissuingtheidentificationcardtoanemployeeofa |
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395 | | - | cannabisestablishment,theBoardshallobtainacopyofafingerprint-based |
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396 | | - | identityhistorysummaryrecordfromtheFederalBureauofInvestigation. |
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397 | | - | (2)TheBoardshalladoptrulesthatsetforthstandardsfordetermining |
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398 | | - | whetherapersonshouldbedeniedacannabisestablishmentidentificationcard |
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399 | | - | becauseofhisorhertheperson’scriminalhistoryrecordbasedonfactorsthat |
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400 | | - | demonstratewhethertheapplicantpresentlyposesathreattopublicsafetyor |
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423 | | - | theproperfunctioningoftheregulatedmarket.Nonviolentdrugoffensesshall |
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424 | | - | notautomaticallydisqualifyanapplicant. |
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425 | | - | (c)Onceanidentificationcardapplicationhasbeensubmitted,apersonthe |
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426 | | - | Board,forgoodcause,mayserveissueatemporarypermitauthorizingthe |
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427 | | - | applicanttoserveasanemployeeofacannabisestablishmentpendingthe |
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428 | | - | backgroundcheck,providedthepersonissupervisedinhisorherdutiesby |
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429 | | - | someonewhoisacardholder.TheBoardshallissueatemporarypermittothe |
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430 | | - | personforthispurpose,whichshallexpireupontheissuanceofthe |
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431 | | - | identificationcardordisqualificationofthepersoninaccordancewiththis |
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432 | | - | sectionGoodcauseexistsif,amongotherreasons,theapplicationis |
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433 | | - | reasonablyexpectedtotakemorethan12daystoprocess. |
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434 | | - | (d)Anidentificationcardshallexpireoneyearafteritsissuanceor,inthe |
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435 | | - | caseofownersandprincipals,upontheexpirationofthecannabis |
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436 | | - | establishment’slicense,whicheveroccursfirst. |
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437 | | - | Sec.7.7V.S.A.§ 886isaddedtoread: |
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438 | | - | § 886.RECEIVERSHIP;SPECIALPERMITTING;IMMUNITY |
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439 | | - | (a)Whenacannabisestablishmentbecomesdistressed,itmayabruptly |
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440 | | - | loseauthorityorabilitytopossesscommercialquantitiesofcannabis.Itisthe |
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441 | | - | purposeofthissectiontoempowertheCivilDivisionoftheSuperiorCourt |
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442 | | - | andtheBoardtooverseetheorderlyunwindingofcannabisestablishments, |
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462 | | - | 20 BILLASPASSEDBYTHEHOUSE H.321 |
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463 | | - | 2025 Page12of43 |
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464 | | - | includinglawfuldispositionofinventoryinlieuofforfeiture,incaseof |
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465 | | - | functionaldistressorinterruptioninactivelicensure. |
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466 | | - | (b)(1)Anindividualmaybeappointedasreceiver,representative,executor, |
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467 | | - | administrator,guardian,conservator,trustee,orassignee,totemporarily |
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468 | | - | operateacannabisestablishmentonthelicensedpremisesforaperiodoftime |
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469 | | - | determinedbytheBoardincasesofdeath,disability,bankruptcy,insolvency, |
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470 | | - | receivership,assignmentforthebenefitofcreditors,shareholderorLLC |
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471 | | - | memberdisputes,licenseinterruption,orotherexceptionalcircumstances |
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472 | | - | renderingoneormoreownersincapableofperforming,orineligibleto |
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473 | | - | perform,thedutiesofalicensee.Suchappointeeshallbeatleast21yearsof |
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474 | | - | age. |
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475 | | - | (2)(A)Suchappointeeshallnotbepermittedtoconductlicensed |
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476 | | - | activitieswithouttheexpressauthorizationoftheBoard,whichmaybe |
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477 | | - | granteduponsubmissionandapprovalofawrittenrequestfortheauthorityto |
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478 | | - | temporarilyconductlicensedactivities.Thewrittenrequestshallinclude |
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479 | | - | informationordisclosuresrequiredbytheBoard,including: |
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480 | | - | (i)name; |
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481 | | - | (ii)valididentification; |
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482 | | - | (iii)phonenumber; |
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483 | | - | (iv)mailingaddress; |
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484 | | - | (v)emailaddress; |
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506 | | - | 2025 Page13of43 |
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507 | | - | (vi)SocialSecuritynumber; |
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508 | | - | (vii)thenameofthepersononwhosebehalftheappointeeis |
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509 | | - | appointed; |
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510 | | - | (viii)proofthatsuchappointeeisthelegalreceiver, |
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511 | | - | representative,executor,administrator,guardian,conservator,trustee,or |
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512 | | - | assignee,and; |
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513 | | - | (ix)anydirectorindirectinterestsheldbythatappointeeina |
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514 | | - | cannabislicense,registrationorpermit. |
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515 | | - | (B)TheBoardmayadoptrulesgoverningappointmentandthe |
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516 | | - | processandqualifications. |
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517 | | - | (3)Authorizationtoconductlicensedactivitiesbytheappointeeis |
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518 | | - | conditionedoncompliancewiththeseregulations,includingrestrictionson |
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519 | | - | ownershipandotherinterests,approvalbytheBoard,andtheauthorization |
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520 | | - | shallnotconstituteaguaranteeoflicenseissuanceorrenewalbytheBoard. |
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521 | | - | (4)Anylicenseeorpersonwhofiles,oragainstwhomisfiled,any |
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522 | | - | actionorproceeding,orwhoseeksanappointment,assetforthinsubdivision |
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523 | | - | (1)ofthissubsection,isrequiredtoservetheBoardwithoriginalnoticeofthe |
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524 | | - | actionorproceedingandprovidetheBoardwithopportunitytobeheard |
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525 | | - | regardingtheappointment.Suchnoticeshallbeprovidedtoemployeesupon |
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526 | | - | commencementofsuchproceedingforareceivership.Alicenseesurrendering |
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547 | | - | 2025 Page14of43 |
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548 | | - | itslicenseshallprovideitsemployeesanylawfullyrequiredwarningsof |
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549 | | - | closuresandlayoffs. |
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550 | | - | (c)Whennolicensedcustodiancanbefoundtotakecustodyofor |
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551 | | - | transportcannabisorcannabisproducts,theBoard,initssolediscretion,may |
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552 | | - | issueaspecialpermittemporarilyauthorizinganunlicenseddesigneeof |
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553 | | - | suitableabilityandjudgmenttopossess,transport,ordisposeofcannabisand |
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554 | | - | cannabisproductsasspecifiedbythetermsofthepermit.Thepermitshallbe |
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555 | | - | printedonofficialBoardletterhead,bearthesignatureoftheChairofthe |
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556 | | - | Board,stateclearlyameansofpromptauthenticationbylawenforcementand |
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557 | | - | licensees,andspecifystartandenddatesandtimes. |
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558 | | - | (d)Apersonactingasadulyappointedreceiverorinconformitywiththe |
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559 | | - | termsofaspecialBoardpermitissuedpursuanttosubsection(c)ofthis |
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560 | | - | sectionshallbeimmunefromcivilandcriminalliabilityinrelationto |
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561 | | - | possession,transportation,ortransferofcannabiswithinthebordersofthis |
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562 | | - | State.TheBoardshallnotbeliableforeconomiclossesresultingfrom |
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563 | | - | forfeiture,seizure,sequestration,salestoppage,transportation,storage,or |
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564 | | - | destructionofcannabisorcannabisproducts. |
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565 | | - | Sec.8.7V.S.A.§ 901isamendedtoread: |
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566 | | - | §901.GENERALPROVISIONS |
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585 | | - | 19 BILLASPASSEDBYTHEHOUSE H.321 |
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586 | | - | 2025 Page15of43 |
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587 | | - | (a)Exceptasotherwisepermittedbylaw,apersonshallnotengageinthe |
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588 | | - | cultivation,preparation,processing,packaging,transportation,testing,orsale |
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589 | | - | ofcannabisorcannabisproductswithoutobtainingalicensefromtheBoard. |
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590 | | - | (b)Alllicensesshallbevalidforoneyearandexpireatmidnightonthe |
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591 | | - | eveoftheanniversaryofthedatethelicensewasissued.Alicenseemay |
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592 | | - | applytorenewthelicenseannually. |
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593 | | - | (c)Applicationsforlicensesandrenewalsshallbesubmittedonforms |
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594 | | - | providedbytheBoardandshallbeaccompaniedbythefeesprovidedforin |
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595 | | - | section910ofthistitle. |
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596 | | - | (d)(1)Thereshallbeseveneighttypesoflicensesavailable: |
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597 | | - | (A)acultivatorlicense; |
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598 | | - | (B)apropagatorlicense; |
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599 | | - | (C)awholesalerlicense; |
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600 | | - | (D)aproductmanufacturerlicense; |
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601 | | - | (E)aretailerlicense; |
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602 | | - | (F)atestinglaboratorylicense;and |
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603 | | - | (G)atrimandharvestservicelicense;and |
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604 | | - | (H)anintegratedlicense. |
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605 | | - | (2)(A)TheBoardshalldeveloptiersfor: |
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606 | | - | (i)cultivatorlicensesbasedontheplantcanopysizeofthe |
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607 | | - | cultivationoperationorplantcountforbreedingstock;and |
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629 | | - | 2025 Page16of43 |
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630 | | - | (ii)retailerlicenses. |
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631 | | - | (B)TheBoardmaydeveloptiersforothertypesoflicenses. |
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632 | | - | (3)(A)Exceptasprovidedinsubdivisions(B)and(C)ofthis |
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633 | | - | subdivision(3),anapplicantanditsaffiliatesmayobtainamaximumofone |
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634 | | - | typeofeachtypeoflicenseasprovidedinsubdivisions(1)(A)–(F)(G)ofthis |
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635 | | - | subsection(d).Eachlicenseshallpermitonlyonelocationofthe |
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636 | | - | establishment,howeveratrimandharvestservicelicenseemayprovide |
---|
637 | | - | servicesatmultipleotherlicensedcannabisestablishments. |
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638 | | - | (B)Anapplicantanditsaffiliatesthatcontroladispensaryregistered |
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639 | | - | onApril1,2022mayobtainoneintegratedlicenseprovidedinsubdivision |
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640 | | - | (1)(G)(H)ofthissubsection(d)oramaximumofoneofeachtypeoflicense |
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641 | | - | providedinsubdivisions(1)(A)–(F)ofthissubsection(d).Anintegrated |
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642 | | - | licenseemaynotholdaseparatecultivator,propagator,wholesaler,product |
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643 | | - | manufacturer,retailer,ortestinglaboratorylicense,andnoapplicantorits |
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644 | | - | affiliatesthatcontroladispensaryshallholdmorethanoneintegratedlicense. |
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645 | | - | Anintegratedlicenseshallpermitonlyonelocationforeachofthetypesof |
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646 | | - | activitiespermittedbythelicense:cultivation,propagator,wholesale |
---|
647 | | - | operations,productmanufacturing,retailsales,andtesting. |
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648 | | - | (C)Anapplicantanditsaffiliatesmayobtainmultipletesting |
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649 | | - | laboratorylicenses. |
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669 | | - | 20 BILLASPASSEDBYTHEHOUSE H.321 |
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670 | | - | 2025 Page17of43 |
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671 | | - | (e)Adispensarythatobtainsaretailerlicenseoranintegratedlicense |
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672 | | - | pursuanttothischaptershallmaintainthedispensaryandretailoperationsina |
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673 | | - | mannerthatprotectspatientandcaregiverprivacyinaccordancewithrules |
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674 | | - | adoptedbytheBoard. |
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675 | | - | (f)Eachlicenseeshallobtainandmaintaincommercialgeneralliability |
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676 | | - | insuranceinaccordancewithrulesadoptedbytheBoard.Failuretoprovide |
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677 | | - | proofofinsurancetotheBoard,asrequired,mayresultinrevocationofthe |
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678 | | - | license. |
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679 | | - | (g)Alllicensesmayberenewedaccordingtoproceduresadoptedthrough |
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680 | | - | rulemakingbytheBoard. |
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681 | | - | (h)[Repealed.] |
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682 | | - | Sec.9.7V.S.A.§ 904isamendedtoread: |
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683 | | - | §904.CULTIVATORLICENSE |
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684 | | - | *** |
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685 | | - | (d)Eachcultivatorshallcreatepackagingforitscannabis. |
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686 | | - | (1)Packagingshallinclude: |
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687 | | - | (A)Thenameandregistrationnumberofthecultivator. |
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688 | | - | (B)Thestrainandvarietyofcannabiscontained. |
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689 | | - | (C)Thepotencyofthecannabisrepresentedbytheamountof |
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690 | | - | tetrahydrocannabinolandcannabidiolinmilligramstotalandperserving. |
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711 | | - | 2025 Page18of43 |
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712 | | - | (D)A“producedon”datereflectingthedatethatthecultivator |
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713 | | - | finishedproducingthecannabis“harvestedon”datereflectingthedatethe |
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714 | | - | cultivatorharvestedthecannabisanda“packedon”datereflectingthedatethe |
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715 | | - | productwaspackagedforsale. |
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716 | | - | (E)AppropriatewarningsasprescribedbytheBoardinrule. |
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717 | | - | (F)Anyadditionalrequirementscontainedinrulesadoptedbythe |
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718 | | - | Boardinaccordancewiththischapter.Rulesshalltakeintoconsiderationthat |
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719 | | - | differentlabelingrequirementsmaybeappropriatedependingonwhetherthe |
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720 | | - | cannabisissoldtoawholesaler,productmanufacturer,orretailer. |
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721 | | - | (2)Packagingshallnotbedesignedtoappealtopersonsunder21years |
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722 | | - | ofage. |
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723 | | - | *** |
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724 | | - | Sec.10.7V.S.A.§ 904bisamendedtoread: |
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725 | | - | §904b.PROPAGATIONCULTIVATORLICENSE |
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726 | | - | (a)Apropagationcultivatorlicensedunderthissectionmay: |
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727 | | - | (1)cultivatenotmorethan3,500squarefeetofcannabisclones, |
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728 | | - | immaturecannabisplants,ormaturecannabisplants; |
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729 | | - | (2)test,transport,andsellcannabisclonesandimmaturecannabis |
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730 | | - | plantstolicensedcultivatorsandretailers;and |
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731 | | - | (3)test,transport,andsellcannabisseedsthatmeetthefederal |
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732 | | - | definitionofhemptoalicensedcultivatororretailerortothepublic. |
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754 | | - | 2025 Page19of43 |
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755 | | - | (b)Alicensedpropagationcultivatorshallnotcultivatematurecannabis |
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756 | | - | plantsforthepurposeofproducing,harvesting,transferring,orselling |
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757 | | - | cannabisflowerforortoanyperson. |
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758 | | - | Sec.11.7V.S.A.§ 904cisaddedtoread: |
---|
759 | | - | § 904c.TRIMANDHARVESTSERVICELICENSE |
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760 | | - | Atrimandharvestservicelicensedunderthissectionmaycontractwith |
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761 | | - | cultivatorslicensedundersection904or904aofthischapter,onaseasonalor |
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762 | | - | temporarybasis,tosupplyspecifiedcannabismaintenanceserviceswithinthe |
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763 | | - | scopeofeachclient-cultivator’slicense. |
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764 | | - | Sec.12.7V.S.A.§ 910isamendedtoread: |
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765 | | - | §910.CANNABISESTABLISHMENTFEESCHEDULE |
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766 | | - | Thefollowingfeesshallapplytoeachpersonorproductlicensedbythe |
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767 | | - | Board: |
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768 | | - | *** |
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769 | | - | (8)Trimandharvestservices.Trimandharvestservicesshallbe |
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770 | | - | assessedanannuallicensingfeeof$500.00. |
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771 | | - | (9)Employees.CannabisestablishmentslicensedbytheBoardshallbe |
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772 | | - | assessedanannualabienniallicensingfeeof$50.00foreachemployee. |
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773 | | - | (9)(10)Products.CannabisestablishmentslicensedbytheBoardshall |
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774 | | - | beassessedanannualabiennialproductlicensingfeeof$50.00foreverytype |
---|
775 | | - | ofcannabisandcannabisproductthatissoldinaccordancewiththischapter. |
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796 | | - | 21 BILLASPASSEDBYTHEHOUSE H.321 |
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797 | | - | 2025 Page20of43 |
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798 | | - | TheBoardmayissuelongerproductregistrations,proratedatthesamecost |
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799 | | - | peryear,forproductsitdeemslowriskandshelfstable.Suchproductsmay |
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800 | | - | bedefinedanddistinguishedinreadilyaccessiblepublishedguidance. |
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801 | | - | (10)(11)Locallicensingfees.Cannabisestablishmentslicensedbythe |
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802 | | - | Boardshallbeassessedanannuallocallicensingfeeof$100.00inadditionto |
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803 | | - | eachfeeassessedundersubdivisions(1)–(7)ofthissection.Locallicensing |
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804 | | - | feesshallbedistributedtothemunicipalityinwhichthecannabis |
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805 | | - | establishmentislocatedpursuanttosection846(c)ofthistitle. |
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806 | | - | (11)(12)One-timefeesApplicationfee. |
---|
807 | | - | (A)Allapplicantsforacannabisestablishmentlicenseshallbe |
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808 | | - | assessedaninitialone-timeapplicationfeeof$1,000.00. |
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809 | | - | (B)Anapplicantmaychoosetobeassessedaninitialone-timeintent- |
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810 | | - | to-applyfeeof$500.00.Iftheapplicantsubsequentlyseeksalicensewithin |
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811 | | - | oneyearafterpayingtheintent-to-applyfee,theinitialone-timeapplication |
---|
812 | | - | feeof$1,000.00shallbereducedby$500.00. |
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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 |
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818 | | - | wholeoftheassetsofabusiness,otherwisethanintheordinarycourseofthe |
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840 | | - | 2025 Page21of43 |
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841 | | - | business,thepurchaser,transfereeorassignee(transferee)shall,atleast10 |
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842 | | - | daysbeforetakingpossessionofthesubjectofthetransferorbeforepayment |
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843 | | - | thereforeifearlier,notifytheCommissionerinwritingoftheproposedsale |
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844 | | - | andoftheprice,terms,andconditionsthereofwhetherornotthetransferor |
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845 | | - | hasrepresentedtoorinformedthetransfereethatthetransferorowesanytrust |
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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 |
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875 | | - | 15 |
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876 | | - | 16 |
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877 | | - | 17 |
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878 | | - | 18 |
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879 | | - | 19 |
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880 | | - | 20 BILLASPASSEDBYTHEHOUSE H.321 |
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881 | | - | 2025 Page22of43 |
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882 | | - | maybeassessedandenforcedinthesamemannerastheliabilityfortaxunder |
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883 | | - | chapter151,207,225,or233. |
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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 |
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904 | | - | 2 |
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905 | | - | 3 |
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906 | | - | 4 |
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907 | | - | 5 |
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908 | | - | 6 |
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909 | | - | 7 |
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910 | | - | 8 |
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911 | | - | 9 |
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912 | | - | 10 |
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913 | | - | 11 |
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914 | | - | 12 |
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915 | | - | 13 |
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916 | | - | 14 |
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917 | | - | 15 |
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918 | | - | 16 |
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919 | | - | 17 |
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920 | | - | 18 |
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921 | | - | 19 |
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922 | | - | 20 |
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923 | | - | 21 BILLASPASSEDBYTHEHOUSE H.321 |
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924 | | - | 2025 Page23of43 |
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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 |
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948 | | - | 4 |
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949 | | - | 5 |
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950 | | - | 6 |
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951 | | - | 7 |
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952 | | - | 8 |
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953 | | - | 9 |
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954 | | - | 10 |
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955 | | - | 11 |
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956 | | - | 12 BILLASPASSEDBYTHEHOUSE H.321 |
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957 | | - | 2025 Page24of43 |
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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 |
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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 |
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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 |
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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 |
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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 |
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| 2 | + | 2025 Page 1 of 23 |
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| 3 | + | |
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| 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 |
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| 28 | + | |
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| 29 | + | |
---|
| 30 | + | VT LEG #380104 v.1 |
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| 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 |
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| 52 | + | |
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| 53 | + | |
---|
| 54 | + | VT LEG #380104 v.1 |
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| 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 |
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| 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 |
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| 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 |
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| 114 | + | check and regulatory record check pursuant to section 883 of this title; 10 |
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| 115 | + | (C) oversight requirements, including provisions to ensure that a 11 |
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| 116 | + | licensed establishment complies with State and federal regulatory requirements 12 |
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| 117 | + | governing insurance, securities, workers’ compensation, unemployment 13 |
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| 118 | + | insurance, and occupational health and safety; 14 |
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| 119 | + | (D) inspection requirements; 15 |
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| 120 | + | (E) records to be kept by licensees and the required availability of the 16 |
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| 121 | + | records; 17 |
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| 122 | + | (F) employment and training requirements; 18 |
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| 123 | + | (G) security requirements, including any appropriate lighting, 19 |
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| 124 | + | physical security, video, and alarm requirements; 20 |
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| 125 | + | (H) health and safety requirements; 21 BILL AS INTRODUCED H.321 |
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| 126 | + | 2025 Page 6 of 23 |
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| 127 | + | |
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| 128 | + | |
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| 129 | + | VT LEG #380104 v.1 |
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| 130 | + | (I) regulation of additives to cannabis and cannabis products, 1 |
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| 131 | + | including cannabidiol derived from hemp and substances that are toxic or 2 |
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| 132 | + | designed to make the product more addictive, more appealing to persons under 3 |
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| 133 | + | 21 years of age, or to mislead consumers; 4 |
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| 134 | + | (J) procedures for seed-to-sale traceability of cannabis, including any 5 |
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| 135 | + | requirements for tracking software; 6 |
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| 136 | + | (K) regulation of the storage and transportation of cannabis; 7 |
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| 137 | + | (L) sanitary requirements; 8 |
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| 138 | + | (M) procedures for the renewal of a license, which shall allow 9 |
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| 139 | + | renewal applications to be submitted up to 90 days prior to the expiration of 10 |
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| 140 | + | the cannabis establishment’s license; 11 |
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| 141 | + | (N) procedures for suspension and revocation of a license; 12 |
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| 142 | + | (O) requirements for banking and financial transactions, including 13 |
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| 143 | + | provisions to ensure that the Board, the Department of Financial Regulation, 14 |
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| 144 | + | and financial institutions have access to relevant information concerning 15 |
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| 145 | + | licensed establishments to comply with State and federal regulatory 16 |
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| 146 | + | requirements; 17 |
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| 147 | + | (P) disclosure or eligibility requirements for a financier, its owners 18 |
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| 148 | + | and principals, and its affiliates, which may include: 19 |
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| 149 | + | (i) requirements to disclose information to a licensed 20 |
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| 150 | + | establishment, the Board, or the Department of Financial Regulation; 21 BILL AS INTRODUCED H.321 |
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| 151 | + | 2025 Page 7 of 23 |
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| 152 | + | |
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| 153 | + | |
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| 154 | + | VT LEG #380104 v.1 |
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| 155 | + | (ii) a minimum age requirement and a requirement to conduct a 1 |
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| 156 | + | background check for natural persons; 2 |
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| 157 | + | (iii) requirements to ensure that a financier complies with 3 |
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| 158 | + | applicable State and federal laws governing financial institutions, licensed 4 |
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| 159 | + | lenders, and other financial service providers; and 5 |
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| 160 | + | (iv) any other requirements, conditions, or limitations on the type 6 |
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| 161 | + | or amount of loans or capital investments made by a financier or its affiliates, 7 |
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| 162 | + | which the Board, in consultation with the Department of Financial Regulation, 8 |
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| 163 | + | determines are necessary to protect the public health, safety, and general 9 |
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| 164 | + | welfare; 10 |
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| 165 | + | (Q) policies and procedures for conducting outreach and promoting 11 |
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| 166 | + | participation in the regulated cannabis market by diverse groups of individuals, 12 |
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| 167 | + | including those who have been disproportionately harmed by cannabis 13 |
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| 168 | + | prohibition; 14 |
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| 169 | + | (R) advertising and marketing; and 15 |
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| 170 | + | (S) requirements for cannabis control testing of hemp, hemp-infused 16 |
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| 171 | + | products, cannabis, and cannabis products; and 17 |
---|
| 172 | + | (T) requirements and criteria governing licensee applications to 18 |
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| 173 | + | change ownership, control, or location. 19 |
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| 174 | + | * * * 20 |
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| 175 | + | (9) Rules concerning trim and harvest services shall include: 21 BILL AS INTRODUCED H.321 |
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| 176 | + | 2025 Page 8 of 23 |
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| 177 | + | |
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| 178 | + | |
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| 179 | + | VT LEG #380104 v.1 |
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| 180 | + | (A) requirements for verification of the licenses of clients; 1 |
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| 181 | + | (B) essential content and permissible terms of written service 2 |
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| 182 | + | contracts, including provisions for security and diversion prevention; 3 |
---|
| 183 | + | (C) provisions to ensure safe and lawful transportation and lodging of 4 |
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| 184 | + | travelling personnel; 5 |
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| 185 | + | (D) essential content of employee health, safety, and skills training, 6 |
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| 186 | + | including first aid and recognition of common pests and pathogens; 7 |
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| 187 | + | (E) requirements appropriate to minimize the risk of pest and 8 |
---|
| 188 | + | pathogen transmission; and 9 |
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| 189 | + | (F) procedures for documenting lawful compensation. 10 |
---|
| 190 | + | * * * 11 |
---|
| 191 | + | Sec. 5. 7 V.S.A. § 883 is amended to read: 12 |
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| 192 | + | § 883. CRIMINAL BACKGROUND RECORD CHECKS; APPLICANTS 13 |
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| 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 |
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| 200 | + | whether an applicant should be denied a cannabis establishment license 21 BILL AS INTRODUCED H.321 |
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| 201 | + | 2025 Page 9 of 23 |
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| 202 | + | |
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| 203 | + | |
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| 204 | + | VT LEG #380104 v.1 |
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| 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 |
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| 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 |
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| 223 | + | Consumer credit scores shall not be a basis for license denial. 19 BILL AS INTRODUCED H.321 |
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| 224 | + | 2025 Page 10 of 23 |
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| 225 | + | |
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| 226 | + | |
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| 227 | + | VT LEG #380104 v.1 |
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| 228 | + | Sec. 6. 7 V.S.A. § 884 is amended to read: 1 |
---|
| 229 | + | § 884. CANNABIS ESTABLISHMENT IDENTIFICATION CARD 2 |
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| 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 |
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| 249 | + | 2025 Page 11 of 23 |
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| 250 | + | |
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| 251 | + | |
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| 252 | + | VT LEG #380104 v.1 |
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| 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 |
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| 273 | + | 2025 Page 12 of 23 |
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| 274 | + | |
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| 275 | + | |
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| 276 | + | VT LEG #380104 v.1 |
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| 277 | + | (b)(1) An individual may be appointed as receiver, representative, executor, 1 |
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| 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 |
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| 297 | + | 2025 Page 13 of 23 |
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| 298 | + | |
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| 299 | + | |
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| 300 | + | VT LEG #380104 v.1 |
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| 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 |
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| 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 |
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| 322 | + | 2025 Page 14 of 23 |
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| 323 | + | |
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| 324 | + | |
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| 325 | + | VT LEG #380104 v.1 |
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| 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 |
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| 346 | + | 2025 Page 15 of 23 |
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| 347 | + | |
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| 348 | + | |
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| 349 | + | VT LEG #380104 v.1 |
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| 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 |
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| 370 | + | 2025 Page 16 of 23 |
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| 371 | + | |
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| 372 | + | |
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| 373 | + | VT LEG #380104 v.1 |
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| 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 |
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| 394 | + | 2025 Page 17 of 23 |
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| 395 | + | |
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| 396 | + | |
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| 397 | + | VT LEG #380104 v.1 |
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| 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 |
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| 419 | + | |
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| 420 | + | |
---|
| 421 | + | VT LEG #380104 v.1 |
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| 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 |
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| 441 | + | 2025 Page 19 of 23 |
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| 442 | + | |
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| 443 | + | |
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| 444 | + | VT LEG #380104 v.1 |
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| 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 |
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| 466 | + | 2025 Page 20 of 23 |
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| 467 | + | |
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| 468 | + | |
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| 469 | + | VT LEG #380104 v.1 |
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| 470 | + | The Board may issue longer product registrations, prorated at the same cost per 1 |
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| 471 | + | year, for products it deems low risk and shelf stable. Such products may be 2 |
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| 472 | + | defined and distinguished in readily accessible published guidance. 3 |
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| 473 | + | (10)(11) Local licensing fees. Cannabis establishments licensed by the 4 |
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| 474 | + | Board shall be assessed an annual local licensing fee of $100.00 in addition to 5 |
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| 475 | + | each fee assessed under subdivisions (1)–(7) of this section. Local licensing 6 |
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| 476 | + | fees shall be distributed to the municipality in which the cannabis 7 |
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| 477 | + | establishment is located pursuant to section 846(c) of this title. 8 |
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| 478 | + | (11)(12) One-time fees Application fee. 9 |
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| 479 | + | (A) All applicants for a cannabis establishment license shall be 10 |
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| 480 | + | assessed an initial one-time application fee of $1,000.00. 11 |
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| 481 | + | (B) An applicant may choose to be assessed an initial one-time intent-12 |
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| 482 | + | to-apply fee of $500.00. If the applicant subsequently seeks a license within 13 |
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| 483 | + | one year after paying the intent-to-apply fee, the initial one-time application 14 |
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| 484 | + | fee of $1,000.00 shall be reduced by $500.00. 15 |
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| 485 | + | Sec. 13. 32 V.S.A. § 3260 is amended to read: 16 |
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| 486 | + | § 3260. BULK SALES 17 |
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| 487 | + | (a) Whenever a person (transferor) required to collect or withhold a trust 18 |
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| 488 | + | tax pursuant to chapter 151, 207, 225, or 233 of this title shall make any sale, 19 |
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| 489 | + | transfer, long-term lease, or assignment (transfer) in bulk of any part or the 20 |
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| 490 | + | whole of the assets of a business, otherwise than in the ordinary course of the 21 BILL AS INTRODUCED H.321 |
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| 491 | + | 2025 Page 21 of 23 |
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| 492 | + | |
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| 493 | + | |
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| 494 | + | VT LEG #380104 v.1 |
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| 495 | + | business, the purchaser, transferee or assignee (transferee) shall, at least 10 1 |
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| 496 | + | days before taking possession of the subject of the transfer or before payment 2 |
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| 497 | + | therefore if earlier, notify the Commissioner in writing of the proposed sale 3 |
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| 498 | + | and of the price, terms, and conditions thereof whether or not the transferor has 4 |
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| 499 | + | represented to or informed the transferee that the transferor owes any trust tax 5 |
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| 500 | + | pursuant to chapter 151, 207, 225, or 233 and whether or not the transferee has 6 |
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| 501 | + | knowledge that such taxes are owed, and whether any taxes are in fact owed. 7 |
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| 502 | + | (b) Whenever the transferee shall fail to give notice to the Commissioner as 8 |
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| 503 | + | required by subsection (a) of this section, or whenever the Commissioner shall 9 |
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| 504 | + | inform the transferee that a possible claim for tax exists, any sums of money, 10 |
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| 505 | + | property, or choses in action, or other consideration, which the transferee is 11 |
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| 506 | + | required to transfer over to or for the transferor, shall be subject to a first 12 |
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| 507 | + | priority right and lien for any taxes theretofore or thereafter determined to be 13 |
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| 508 | + | due from the transferor to the State, and the transferee is forbidden to transfer 14 |
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| 509 | + | the consideration to or for the transferor to the extent of the amount of the 15 |
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| 510 | + | State’s claim. 16 |
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| 511 | + | (c) For failure to comply with this section, the transferee shall be 17 |
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| 512 | + | personally liable for the payment to the State of any taxes theretofore or 18 |
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| 513 | + | thereafter determined to be due to the State from the transferor and the liability 19 |
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| 514 | + | may be assessed and enforced in the same manner as the liability for tax under 20 |
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| 515 | + | chapter 151, 207, 225, or 233. 21 BILL AS INTRODUCED H.321 |
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| 516 | + | 2025 Page 22 of 23 |
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| 517 | + | |
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| 518 | + | |
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| 519 | + | VT LEG #380104 v.1 |
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| 520 | + | Sec. 14. 2022 Acts and Resolves No. 185, Secs E.240.5 and E.240.6 are 1 |
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| 521 | + | amended to read: 2 |
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| 522 | + | Sec. E.240.5. [Deleted.] 3 |
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| 523 | + | Sec. E.240.6. [Deleted.] 4 |
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| 524 | + | Sec. 15. 2022 Acts and Resolves No. 185, Sec. H.100 is amended to read: 5 |
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| 525 | + | Sec. H.100. EFFECTIVE DATES 6 |
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| 526 | + | * * * 7 |
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| 527 | + | (b) [Deleted.] 8 |
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| 528 | + | * * * 9 |
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| 529 | + | Sec. 16. ISSUANCE OF RETAILER LICENSES 10 |
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| 530 | + | Notwithstanding any other provision of law, the Cannabis Control Board 11 |
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| 531 | + | shall not issue any new retailer licenses until July 1, 2027, provided that: 12 |
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| 532 | + | (1) annual renewals of retailer licenses that were originally issued prior 13 |
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| 533 | + | to February 1, 2025 may be issued; 14 |
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| 534 | + | (2) amendments to and early renewals of retailer licenses that were 15 |
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| 535 | + | originally issued prior to February 1, 2025 may be issued in the case of 16 |
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| 536 | + | changes in location of the licensed retailer where the proposed new location 17 |
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| 537 | + | would be permissible as a new licensed location pursuant to rules adopted by 18 |
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| 538 | + | the Board under 7 V.S.A. § 881(a)(5)(F); 19 BILL AS INTRODUCED H.321 |
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| 539 | + | 2025 Page 23 of 23 |
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| 540 | + | |
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| 541 | + | |
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| 542 | + | VT LEG #380104 v.1 |
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| 543 | + | (3) amendments to and early renewals of retailer licenses that were 1 |
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| 544 | + | originally issued prior to February 1, 2025 may be issued in the case of 2 |
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| 545 | + | changes in control of the licensed retailer; and 3 |
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| 546 | + | (4) the Board may issue new retailer licenses prior to July 1, 2027 if, at 4 |
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| 547 | + | the time of such issuance, the number of licensed retailers is fewer than the 5 |
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| 548 | + | number of 80 locations. 6 |
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| 549 | + | Sec. 17. CANNABIS CONTROL BOARD; ENFORC EMENT ATTORNEY; 7 |
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| 550 | + | POSITION 8 |
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| 551 | + | One full-time, permanent, exempt position of Enforcement Attorney is 9 |
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| 552 | + | authorized in the Cannabis Control Board in fiscal year 2025. 10 |
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| 553 | + | Sec. 18. EFFECTIVE DATE 11 |
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| 554 | + | This act shall take effect on passage. 12 |
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