The Vermont Statutes Online
The Vermont Statutes Online have been updated to include the actions of the 2023 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Title 7: Alcoholic Beverages, Cannabis, and Tobacco
Chapter 033: Cannabis Establishments
- Subchapter 001: GENERAL PROVISIONS
§ 861. Definitions
As used in this chapter:
(1) “Advertise” means the publication or dissemination of an advertisement.
(2) “Advertisement” means any written or verbal statement, illustration, or depiction that would reasonably have the effect of inducing sales of cannabis or cannabis products, including any written, printed, graphic, or other material; billboard, sign, or other outdoor display; other periodical literature, publication, or in a radio or television broadcast; the Internet; or in any other media. The term does not include:
(A) any label affixed to any cannabis or cannabis product or any individual covering, carton, or other wrapper of that container that constitutes a part of the labeling under provisions of these standards;
(B) any editorial or other reading material, such as a news release, in any periodical or publication or newspaper for the publication of which no money or valuable consideration is paid or promised, directly or indirectly, by any cannabis establishment, and that is not written by or at the direction of the licensee;
(C) any educational, instructional, or otherwise noncommercial material that is not intended to induce sales and that does not propose an economic transaction, but that merely provides information to the public in an unbiased manner; or
(D) a sign attached to the premises of a cannabis establishment that merely identifies the location of the cannabis establishment.
(3) “Affiliate” means a person that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with another person.
(4) “Applicant” means a person that applies for a license to operate a cannabis establishment pursuant to this chapter.
(5) “Board” means the Cannabis Control Board.
(6) “Cannabis” has the same meaning as provided in section 831 of this title.
(7) “Cannabis cultivator” or “cultivator” means a person licensed by the Board to engage in the cultivation of cannabis in accordance with this chapter.
(8) “Cannabis establishment” means a cannabis cultivator, propagation cultivator, wholesaler, product manufacturer, retailer, testing laboratory, or integrated licensee licensed by the Board to engage in commercial cannabis activity in accordance with this chapter.
(9) “Cannabis product” has the same meaning as provided in section 831 of this title.
(10) “Cannabis product manufacturer” or “product manufacturer” means a person licensed by the Board to manufacture cannabis products in accordance with this chapter.
(11) “Cannabis retailer” or “retailer” means a person licensed by the Board to sell cannabis and cannabis products to adults 21 years of age and older for off-site consumption or cultivation in accordance with this chapter.
(12) “Cannabis testing laboratory” or “testing laboratory” means a person licensed by the Board to test cannabis and cannabis products in accordance with this chapter.
(13) “Cannabis wholesaler” or “wholesaler” means a person licensed by the Board to purchase, process, transport, and sell cannabis and cannabis products in accordance with this chapter.
(14) “Chair” means the Chair of the Cannabis Control Board.
(15) “Characterizing flavor” means a taste or aroma, other than the taste or aroma of cannabis, imparted either prior to or during consumption of a cannabis product. The term includes tastes or aromas relating to any fruit, chocolate, vanilla, honey, maple, candy, cocoa, dessert, alcoholic beverage, mint, menthol, wintergreen, herb or spice, or other food or drink or to any conceptual flavor that imparts a taste or aroma that is distinguishable from cannabis flavor but may not relate to any particular known flavor.
(16) “Child-deterrent packaging” means tear-resistant packaging that can be sealed in a manner that would deter children under five years of age from easily accessing the contents of the package within a reasonable time and not difficult for adults to use properly.
(17) “Child-resistant packaging” means packaging that is designed or constructed to be significantly difficult for children under five years of age to open or obtain a toxic or harmful amount of the substance in the container within a reasonable time and not difficult for adults to use properly but does not mean packaging that all children under five years of age cannot open or obtain a toxic or harmful amount of the substance in the container within a reasonable time.
(18) “Controls,” “is controlled by,” and “under common control” mean the power to direct, or cause the direction or management and policies of a person, whether through the direct or beneficial ownership of voting securities, by contract, or otherwise. A person who directly or beneficially owns 10 percent or more equity interest, or the equivalent thereof, of another person shall be deemed to control the person.
(19) “Dispensary” means a business organization licensed pursuant to chapter 37 of this title.
(20) [Repealed.]
(21) “Flavored oil cannabis product” means any oil cannabis product that contains an additive to give it a characterizing flavor.
(22) “Hemp” means the plant Cannabis sativa L. and any part of the plant, including the seeds and all derivatives, extracts, cannabinoids, acids, salts, isomers, and salts of isomers, whether growing or not, with the federally defined tetrahydrocannabinol concentration level of hemp.
(23) “Hemp products” or “hemp-infused products” means all products with the federally defined tetrahydrocannabinol concentration level for hemp derived from, or made by, processing hemp plants or plant parts that are prepared in a form available for commercial sale, including cosmetics, personal care products, food intended for animal or human consumption, cloth, cordage, fiber, fuel, paint, paper, construction materials, plastics, and any product containing one or more hemp-derived cannabinoids, such as cannabidiol.
(24) “Integrated licensee” means a person licensed by the Board to engage in the activities of a cultivator, wholesaler, product manufacturer, retailer, and testing laboratory in accordance with this chapter.
(25) “Municipality” means a town, city, or incorporated village.
(26) “Owner” means a natural person who controls, or shares control of, a Cannabis Establishment.
[Subdivision (27) as redesignated by 2021, No. 158 (Adj. Sess.).]
(27) “Person” shall include any natural person; corporation; municipality; the State of Vermont or any department, agency, or subdivision of the State; and any partnership, unincorporated association, or other legal entity.
(28) “Plant canopy” means the square footage dedicated to live plant production and does not include areas such as office space or areas used for the storage of fertilizers, pesticides, or other products.
(29) “Principal” means one of the following:
(A) the president, vice president, secretary, treasurer, manager, or similar officer of a corporation as provided for by 11A V.S.A. § 8.40, nonprofit corporation as provided for by 11B V.S.A. § 8.40, mutual benefit enterprise as provided for by 11C V.S.A. § 822, cooperative as provided for by 11 V.S.A. § 1013, or worker cooperative corporation as provided for by 11 V.S.A. § 1089;
(B) a director of a corporation as provided for by 11A V.S.A. § 8.01, nonprofit corporation as provided for by 11B V.S.A. § 8.01, mutual benefit enterprise as provided for by 11C V.S.A. § 801, cooperative as provided for by 11 V.S.A. § 1006, or worker cooperative corporation as provided for by 11 V.S.A. § 1089;
(C) a member of a member-managed limited liability company as provided for by 11 V.S.A. § 4054;
(D) manager of a manager-managed limited liability company as provided for by 11 V.S.A. § 4054; or
(E) a partner of a partnership as provided for by 11 V.S.A. § 3212 or a general partner of a limited partnership as provided for by 11 V.S.A chapter 23.
(30) “Small cultivator” means a cultivator with a plant canopy or space for cultivating plants for breeding stock of not more than 1,000 square feet.
(31) “Cannabis propagation cultivator” or “propagation cultivator” means a person licensed by the Board to cultivate cannabis clones, immature plants, and mature plants in accordance with this chapter. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 62, § 5, eff. June 7, 2021; 2021, No. 86 (Adj. Sess.), § 2, eff. March 25, 2022; 2021, No. 158 (Adj. Sess.), § 1, eff. May 31, 2022; 2023, No. 65, § 4, eff. June 14, 2023.)
§ 862. Not applicable to hemp or therapeutic use of cannabis
This chapter applies to the regulation of cannabis establishments by the Board and shall not apply to activities regulated by 6 V.S.A. chapter 34 (hemp), 18 V.S.A. chapter 86 (therapeutic use of cannabis), or chapters 35 (Medical Cannabis Registry) and 37 (cannabis medical dispensaries) of this title. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)
§ 862a. Synthetic and hemp-derived cannabinoids
The Board shall have the authority to regulate synthetic cannabinoids and hemp-derived cannabinoids, including delta-8 and delta-10 tetrahydrocannabinol. (Added 2021, No. 158 (Adj. Sess.), § 10, eff. May 31, 2022.)
§ 863. Regulation by local government
(a)(1) Prior to a cannabis retailer or the retail portion of an integrated licensee operating within a municipality, the municipality shall affirmatively permit the operation of such cannabis establishments by majority vote of those present and voting by Australian ballot at an annual or special meeting warned for that purpose. A municipality may place retailers or integrated licensees, or both, on the ballot for approval.
(2) A vote to permit the operation of a licensed cannabis retailer or integrated licensee within the municipality shall remain in effect until rescinded by majority vote of those present and voting by Australian ballot at a subsequent annual or special meeting warned for that purpose. A rescission of the permission to operate a licensed cannabis retailer or integrated licensee within the municipality under this subdivision shall not apply to a licensed cannabis retailer or integrated licensee that is operating within the municipality at the time of the vote.
(b) A municipality that hosts any cannabis establishment may establish a cannabis control commission composed of commissioners who may be members of the municipal legislative body. The local cannabis control commission may issue and administer local control licenses under this subsection for cannabis establishments within the municipality but shall not assess a fee for a local control license issued to a cannabis establishment. The commissioners may condition the issuance of a local control license upon compliance with any bylaw adopted pursuant to 24 V.S.A. § 4414 or upon ordinances regulating signs or public nuisances adopted pursuant to 24 V.S.A. § 2291, except that ordinances may not regulate public nuisances as applied to outdoor cultivators that are regulated in the same manner as the Required Agricultural Practices under subdivision 869(f)(2) of this title. The commission may suspend or revoke a local control license for a violation of any condition placed upon the license. The Board shall adopt rules relating to a municipality’s issuance of a local control license in accordance with this subsection and the local commissioners shall administer the rules furnished to them by the Board as necessary to carry out the purposes of this section.
(c) Prior to issuing a license to a cannabis establishment under this chapter, the Board shall ensure that the applicant has obtained a local control license from the municipality, if required, unless the Board finds that the municipality has exceeded its authority under this section.
(d) A municipality shall not:
(1) prohibit the operation of a cannabis establishment within the municipality through an ordinance adopted pursuant to 24 V.S.A. § 2291 or a bylaw adopted pursuant to 24 V.S.A. § 4414, or regulate a cannabis establishment in a manner that has the effect of prohibiting the operation of a cannabis establishment;
(2) condition the operation of a cannabis establishment, or the issuance or renewal of a municipal permit to operate a cannabis establishment, on any basis other than the conditions in subsection (b) of this section; or
(3) exceed the authority granted to it by law to regulate a cannabis establishment. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 62, § 1, eff. June 7, 2021; 2021, No. 86 (Adj. Sess.), § 3, eff. March 25, 2022; 2023, No. 65, § 5, eff. June 14, 2023.)
§ 864. Advertising
(a) “Advertise” and “advertisement” have the same meaning as in section 861 of this title.
(b) A cannabis establishment advertisement shall not contain any statement or illustration that:
(1) is deceptive, false, or misleading;
(2) promotes overconsumption;
(3) represents that the use of cannabis has curative effects;
(4) offers a prize, award, or inducement for purchasing cannabis or a cannabis product, except that price discounts are allowed;
(5) offers free samples of cannabis or cannabis products;
(6) depicts a person under 21 years of age consuming cannabis or cannabis products; or
(7) is designed to be or has the effect of being particularly appealing to persons under 21 years of age.
(c) Cannabis establishments shall not advertise their products via any medium unless the licensee can show that not more than 15 percent of the audience is reasonably expected to be under 21 years of age.
(d) All advertisements shall contain health warnings adopted by rule by the Board in consultation with the Department of Health.
(e) All advertisements shall be submitted to the Board on a form or in a format prescribed by the Board, prior to the dissemination of the advertisement. The Board may:
(1) require a specific disclosure be made in the advertisement in a clear and conspicuous manner if the Board determines that the advertisement would be false or misleading without such a disclosure; or
(2) require changes that are necessary to protect the public health, safety, and welfare or consistent with dispensing information for the product under review. (Added 2021, No. 62, § 6, eff. June 7, 2021.)
§ 865. Education
(a) A licensee shall complete an enforcement seminar every three years conducted by the Board. A license shall not be renewed unless the records of the Board show that the licensee has complied with the terms of this subsection.
(b) A licensee shall ensure that each employee involved in the sale of cannabis or cannabis products to the public completes a training program approved by the Board prior to selling cannabis or cannabis products and at least once every 24 months thereafter. The training shall include information about the health effects of the use of cannabis and cannabis products. A licensee shall keep a written record of the type and date of training for each employee, which shall be signed by each employee. A licensee may comply with this requirement by conducting its own training program on its premises, using information and materials furnished by the Board. A licensee who fails to comply with the requirements of this section shall be subject to a suspension of not less than one day of the license issued under this chapter. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)
§ 866. Youth
(a) A cannabis establishment licensed pursuant to this chapter shall not dispense or sell cannabis to a person under 21 years of age or employ a person under 21 years of age. The Board may assess civil penalties against or suspend or revoke the license of a cannabis establishment that dispenses or sells cannabis or cannabis products to a person under 21 years of age.
(b) A cannabis establishment shall not permit a person under 21 years of age to enter a building or enclosure on the premises where cannabis is located. This subsection shall not apply to a registered patient visiting a dispensary even if that dispensary is located in a building that is located on the same premises of a cannabis establishment.
(c) The Board, in consultation with the Department of Health, shall adopt rules in accordance with section 881 of this title to:
(1) prohibit cannabis products or the packaging of such products that are designed to make the product more appealing to persons under 21 years of age;
(2) prohibit the packaging of cannabis and cannabis products that is designed to make the product more appealing to persons under 21 years of age;
(3) require that cannabis products sold by licensed retailers and integrated licensees are contained in child-resistant packaging; and
(4) require that cannabis and cannabis products sold by licensed retailers and integrated licensees are packaged with labels that clearly indicate that the contents of the package contain cannabis and should be kept away from persons under 21 years of age.
(d) In accordance with section 864 of this title, advertising by a cannabis establishment shall not depict a person under 21 years of age consuming cannabis or cannabis products or be designed to be or have the effect of being particularly appealing to persons under 21 years of age. Cannabis establishments shall not advertise their products via any medium unless the licensee can show that not more than 15 percent of the audience is reasonably expected to be under 21 years of age. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 62, § 7, eff. June 7, 2021.)
§ 867. Standard symbol for cannabis
The Board shall create a standard symbol that shall be used on all cannabis and cannabis products sold by a licensed cannabis retailer to indicate that the contents of a package contain cannabis. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)
§ 868. Prohibited products
(a) The following are prohibited products and may not be cultivated, produced, or sold pursuant to a license issued under this chapter:
(1) cannabis flower with greater than 30 percent tetrahydrocannabinol;
(2) flavored oil cannabis products sold prepackaged for use with battery- powered devices and any cannabis flower that contains characterizing flavor that is not naturally occurring in the cannabis;
(3) cannabis products that contain delta-9 tetrahydrocannabinol and nicotine or alcoholic beverages; and
(4) any cannabis, cannabis products, or packaging of such items that are designed to make the product more appealing to persons under 21 years of age.
(b)(1) Except as provided by subdivision (2) of this subsection, solid and liquid concentrate cannabis products with greater than 60 percent tetrahydrocannabinol may be produced by a licensee and sold to another licensee in accordance with subchapter 3 of this chapter but shall not be sold to the public by a licensed retailer or integrated licensee.
(2) Liquid concentrate cannabis products with greater than 60 percent tetrahydrocannabinol that are prepackaged for use with battery-powered devices shall be permitted to be sold to the public by a licensed retailer or integrated licensee. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 158 (Adj. Sess.), § 11, eff. May 31, 2022.)
§ 869. Cultivation of cannabis; environmental and land use standards; regulation of cultivation
(a) A cannabis establishment shall not be regulated as “farming” under the Required Agricultural Practices, 6 V.S.A. chapter 215, or other State law, and cannabis produced from cultivation shall not be considered an agricultural product, farm crop, or agricultural crop for the purposes of 32 V.S.A. chapter 124, 32 V.S.A. § 9741, or other relevant State law.
(b) The cultivation, processing, and manufacturing of cannabis regulated under this chapter shall comply with all applicable State, federal, and local environmental, energy, or public health law, unless otherwise provided under this chapter.
(c) A cannabis establishment regulated under this chapter shall be subject to regulation under 24 V.S.A. chapter 117 as authorized by this chapter, unless otherwise provided under this chapter.
(d)(1) The cultivation, processing, and manufacturing of cannabis by all cultivators regulated under this chapter shall comply with the following sections of the Required Agricultural Practices as administered and enforced by the Board:
(A) section 6, regarding conditions, restriction, and operating standards;
(B) section 8, regarding groundwater quality and groundwater quality investigations; and
(C) section 12, regarding subsurface tile drainage.
(2) Application of or compliance with the Required Agricultural Practices under subdivision (1) of this subsection shall not be construed to provide a presumption of compliance with or exemption to any applicable State, federal, and local environmental, energy, public health, or land use law required under subsections (b) and (c) of this section.
(e) Persons cultivating cannabis or handling pesticides for the purposes of the manufacture of cannabis products shall comply with the worker protection standard of 40 C.F.R. Part 170.
(f) Notwithstanding subsection (a) of this section, a cultivator licensed under this chapter who initiates cultivation of cannabis outdoors on a parcel of land shall:
(1) be regulated in the same manner as “farming” and not as “development” on the tract of land where cultivation occurs for the purposes of permitting under 10 V.S.A. chapter 151;
(2) not be regulated by a municipal bylaw adopted under 24 V.S.A. chapter 117 in the same manner that Required Agricultural Practices are not regulated by a municipal bylaw under 24 V.S.A. § 4413(d)(1)(A);
(3) be eligible to enroll in the Use Value Appraisal Program under 32 V.S.A. chapter 124 for the cultivation of cannabis;
(4) be exempt under 32 V.S.A. § 9741(3), (25), and (50) from the tax on retail sales imposed under 32 V.S.A. § 9771; and
(5) be entitled to the rebuttable presumption that cultivation does not constitute a nuisance under 12 V.S.A. chapter 195 in the same manner as “agricultural activities” are entitled to the rebuttable presumption, provided that, notwithstanding 12 V.S.A. § 5753(a)(1)(A), the cultivation is complying with subsections (b) and (d) of this section. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 158 (Adj. Sess.), § 2, eff. May 31, 2022; 2023, No. 65, § 6, eff. June 14, 2023.)
- Subchapter 002: ADMINISTRATION
§ 881. Rulemaking; cannabis establishments
(a) The Board shall adopt rules to implement and administer this chapter in accordance with subdivisions (1)-(8) of this subsection.
(1) Rules concerning any cannabis establishment shall include:
(A) the form and content of license and renewal applications;
(B) qualifications for licensure that are directly and demonstrably related to the operation of a cannabis establishment, including:
(i) a requirement to submit an operating plan, which shall include information concerning:
(I) the type of business organization, the identity of its controlling owners and principals, and the identity of the controlling owners and principals of its affiliates; and
(II) the sources, amount, and nature of its capital, assets, and financing; the identity of its financiers; and the identity of the controlling owners and principals of its financiers;
(ii) a requirement to file an amendment to its operating plan in the event of a significant change in organization, operation, or financing; and
(iii) the requirement for a fingerprint-based criminal history record check and regulatory record check pursuant to section 883 of this title;
(C) oversight requirements, including provisions to ensure that a licensed establishment complies with State and federal regulatory requirements governing insurance, securities, workers’ compensation, unemployment insurance, and occupational health and safety;
(D) inspection requirements;
(E) records to be kept by licensees and the required availability of the records;
(F) employment and training requirements;
(G) security requirements, including any appropriate lighting, physical security, video, and alarm requirements;
(H) health and safety requirements;
(I) regulation of additives to cannabis and cannabis products, including cannabidiol derived from hemp and substances that are toxic or designed to make the product more addictive, more appealing to persons under 21 years of age, or to mislead consumers;
(J) procedures for seed-to-sale traceability of cannabis, including any requirements for tracking software;
(K) regulation of the storage and transportation of cannabis;
(L) sanitary requirements;
(M) procedures for the renewal of a license, which shall allow renewal applications to be submitted up to 90 days prior to the expiration of the cannabis establishment’s license;
(N) procedures for suspension and revocation of a license;
(O) requirements for banking and financial transactions, including provisions to ensure that the Board, the Department of Financial Regulation, and financial institutions have access to relevant information concerning licensed establishments to comply with State and federal regulatory requirements;
(P) disclosure or eligibility requirements for a financier, its owners and principals, and its affiliates, which may include:
(i) requirements to disclose information to a licensed establishment, the Board, or the Department of Financial Regulation;
(ii) a minimum age requirement and a requirement to conduct a background check for natural persons;
(iii) requirements to ensure that a financier complies with applicable State and federal laws governing financial institutions, licensed lenders, and other financial service providers; and
(iv) any other requirements, conditions, or limitations on the type or amount of loans or capital investments made by a financier or its affiliates, which the Board, in consultation with the Department of Financial Regulation, determines are necessary to protect the public health, safety, and general welfare;
(Q) policies and procedures for conducting outreach and promoting participation in the regulated cannabis market by diverse groups of individuals, including those who have been disproportionately harmed by cannabis prohibition;
(R) advertising and marketing; and
(S) requirements for cannabis control testing of hemp, hemp-infused products, cannabis, and cannabis products.
(2)(A) Rules concerning cultivators shall include:
(i) creation of a tiered system of licensing based on the plant canopy size of the cultivation operation or plant count for breeding stock;
(ii) pesticides or classes of pesticides that may be used by cultivators, provided that any rules adopted under this subdivision shall comply with and shall be at least as stringent as the Agency of Agriculture, Food and Markets’ Vermont Pesticide Control Regulations;
(iii) standards for indoor cultivation of cannabis;
(iv) procedures and standards for testing cannabis for contaminants, potency, and quality assurance and control;
(v) labeling requirements for cannabis sold to retailers and integrated licensees, including health warnings developed in consultation with the Department of Health;
(vi) regulation of visits to the establishments, including the number of visitors allowed at any one time and record keeping concerning visitors; and
(vii) facility inspection requirements and procedures.
(B) The Board shall consider the different needs and risks of small cultivators when adopting rules and shall make an exception or accommodation to such rules for cultivators of this size where appropriate.
(3) Rules concerning product manufacturers shall include:
(A) requirements that a single package of a cannabis product shall not contain more than 100 milligrams of THC, except in the case of:
(i) cannabis products that are not consumable, including topical preparations;
(ii) solid concentrates, oils, and tinctures; and
(iii) cannabis products sold to a dispensary pursuant to 18 V.S.A. chapter 86 and rules adopted pursuant to that chapter;
(B) requirements that cannabis products are labeled in a manner that states the number of servings of tetrahydrocannabinol in the product, measured in servings of a maximum of five milligrams per serving, except:
(i) cannabis products that are not consumable, including topical preparations; and
(ii) cannabis products sold to a dispensary pursuant to 18 V.S.A. chapter 86 and rules adopted pursuant to that chapter;
(C) requirements that cannabis products are labeled with the date the product was manufactured, the date the product is best used by, the ingredients contained in the product, information on the length of time it typically takes for products to take effect, and appropriate warnings developed by the Board in consultation with the Department of Health;
(D) requirements that a cannabis product is clearly identifiable with a standard symbol adopted by the Board indicating that it contains cannabis;
(E) procedures and standards for testing cannabis products for contaminants, potency, and quality assurance and control; and
(F) requirements for opaque, child-resistant packaging.
(4) Rules concerning wholesalers shall include any provisions the Board has not addressed in subdivision (a)(1) of this section that are appropriate for safe regulation of wholesalers in accordance with this chapter.
(5) Rules concerning retailers shall include:
(A) requirements for proper verification of age of customers;
(B) restrictions that cannabis shall be stored behind a counter or other barrier to ensure a customer does not have direct access to the cannabis;
(C) requirements that if the retailer sells hemp or hemp products, the hemp and hemp products are clearly labeled as such;
(D) requirements for opaque, child-resistant packaging of cannabis products and child-deterrent packaging for cannabis at point of sale to customer; and
(E) requirements and procedures for facility inspection to occur at least annually.
(6) Rules concerning testing laboratories shall include:
(A) procedures and standards for testing cannabis and cannabis products for contaminants, potency, and quality assurance and control;
(B) reporting requirements, including requirements for chain-of-custody record keeping; and
(C) procedures for destruction of all cannabis and cannabis products samples.
(7) Rules concerning integrated licensees shall include the provisions provided in subdivisions (1)-(6) of this subsection and any additional provisions the Board deems appropriate for safe regulation of integrated licensees in accordance with this chapter.
(8) Rules concerning propagators shall include:
(A) requirements for proper verification of age of customers;
(B) pesticides or classes of pesticides that may be used by propagators, provided that any rules adopted under this subdivision (8) shall comply with and shall be at least as stringent as the Agency of Agriculture, Food and Markets’ Vermont Pesticide Control Regulations;
(C) standards for indoor cultivation of cannabis;
(D) procedures and standards for testing cannabis for contaminants, potency, and quality assurance and control;
(E) labeling requirements for cannabis sold to retailers and integrated licensees;
(F) regulation of visits to the establishments, including the number of visitors allowed at any one time and record keeping concerning visitors; and
(G) facility inspection requirements and procedures.
(b) The Board shall consult with other State agencies and departments as necessary in the development and adoption of rules where there is shared expertise and duties. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 62, § 8, eff. June 7, 2021; 2021, No. 105 (Adj. Sess.), § 153, eff. July 1, 2022; 2021, No. 158 (Adj. Sess.), §§ 3, 12, eff. May 31, 2022; 2023, No. 65, § 7, eff. June 14, 2023.)
§ 882. Suspension and revocation of licenses; civil penalties
(a) The Board shall have the authority to suspend or revoke a cannabis establishment license for violations of this chapter in accordance with rules adopted pursuant to this chapter.
(b) The Board shall have authority to issue civil citations for violations of this chapter in accordance with rules adopted pursuant to this chapter. Any proposed rule under this section shall include the full, minimum, and waiver penalty amounts for each violation. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)
§ 883. Criminal background record checks; applicants
(a) The Board shall obtain from the Vermont Crime Information Center a copy of a fingerprint-based Vermont criminal history records, out-of-state criminal history records, and criminal history records from the Federal Bureau of Investigation for each license applicant, principal of an applicant, and person who controls an applicant who is a natural person.
(b) The Board shall adopt rules that set forth standards for determining whether an applicant should be denied a cannabis establishment license because of his or her criminal history record based on factors that demonstrate whether the applicant presently poses a threat to public safety or the proper functioning of the regulated market. Nonviolent drug offenses shall not automatically disqualify an applicant.
(c) Notwithstanding subsection (a) of this section, the Board may accept third-party criminal background checks submitted by an applicant for a cannabis establishment license or renewal in lieu of obtaining the records from the Vermont Crime Information Center a copy of the person’s Vermont fingerprint-based criminal history records, out-of-state criminal history records, and criminal history records from the Federal Bureau of Investigation. Any such third-party background check shall:
(1) be conducted by a third-party consumer reporting agency or background screening company that is in compliance with the federal Fair Credit Reporting Act; and
(2) include a multistate and multi-jurisdiction criminal record locator. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 158 (Adj. Sess.), § 13, eff. May 31, 2022.)
§ 884. Cannabis establishment identification card
(a) Every owner, principal, and employee of a cannabis establishment shall obtain an identification card issued by the Board. A person may apply for an identification card prior to obtaining employment with a licensee. An employee identification card shall authorize the person to work for any licensee.
(b)(1)(A) Prior to issuing the identification card to an owner or principal of a cannabis establishment, the Board shall obtain from the Vermont Crime Information Center a copy of the person’s Vermont fingerprint-based criminal history records, out-of-state criminal history records, and criminal history records from the Federal Bureau of Investigation.
(B) Prior to issuing the identification card to an employee of a cannabis establishment, the Board shall obtain a copy of a fingerprint-based identity history summary record from the Federal Bureau of Investigation.
(2) The Board shall adopt rules that set forth standards for determining whether a person should be denied a cannabis establishment identification card because of his or her criminal history record based on factors that demonstrate whether the applicant presently poses a threat to public safety or the proper functioning of the regulated market. Nonviolent drug offenses shall not automatically disqualify an applicant.
(c) Once an identification card application has been submitted, a person may serve as an employee of a cannabis establishment pending the background check, provided the person is supervised in his or her duties by someone who is a cardholder. The Board shall issue a temporary permit to the person for this purpose, which shall expire upon the issuance of the identification card or disqualification of the person in accordance with this section.
(d) An identification card shall expire one year after its issuance or, in the case of owners and principals, upon the expiration of the cannabis establishment’s license, whichever occurs first. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 158 (Adj. Sess.), § 14, eff. May 31, 2022.)
§ 885. Cannabis Quality Control Program; testing
The Cannabis Control Board shall establish a cannabis quality control program for the following purposes:
(1) to develop potency and contaminant testing protocols for hemp, hemp-infused products, cannabis, and cannabis products;
(2) to verify cannabinoid label guarantees of hemp, hemp-infused products, cannabis, and cannabis products;
(3) to test for pesticides, solvents, heavy metals, mycotoxins, and bacterial and fungal contaminants in hemp, hemp-infused products, cannabis, and cannabis products; and
(4) to certify testing laboratories that can offer the services in subdivisions (2) and (3) of this section. (Added 2021, No. 158 (Adj. Sess.), § 4, eff. May 31, 2022.)
- Subchapter 003: LICENSES
§ 901. General provisions
(a) Except as otherwise permitted by law, a person shall not engage in the cultivation, preparation, processing, packaging, transportation, testing, or sale of cannabis or cannabis products without obtaining a license from the Board.
(b) All licenses shall be valid for one year and expire at midnight on the eve of the anniversary of the date the license was issued. A licensee may apply to renew the license annually.
(c) Applications for licenses and renewals shall be submitted on forms provided by the Board and shall be accompanied by the fees provided for in section 910 of this title.
(d)(1) There shall be seven types of licenses available:
(A) a cultivator license;
(B) a propagator license;
(C) a wholesaler license;
(D) a product manufacturer license;
(E) a retailer license;
(F) a testing laboratory license; and
(G) an integrated license.
(2)(A) The Board shall develop tiers for:
(i) cultivator licenses based on the plant canopy size of the cultivation operation or plant count for breeding stock; and
(ii) retailer licenses.
(B) The Board may develop tiers for other types of licenses.
(3)(A) Except as provided in subdivisions (B) and (C) of this subdivision (3), an applicant and its affiliates may obtain a maximum of one type of each type of license as provided in subdivisions (1)(A)–(F) of this subsection (d). Each license shall permit only one location of the establishment.
(B) An applicant and its affiliates that control a dispensary registered on April 1, 2022 may obtain one integrated license provided in subdivision (1)(G) of this subsection (d) or a maximum of one of each type of license provided in subdivisions (1)(A)–(F) of this subsection (d). An integrated licensee may not hold a separate cultivator, propagator, wholesaler, product manufacturer, retailer, or testing laboratory license, and no applicant or its affiliates that control a dispensary shall hold more than one integrated license. An integrated license shall permit only one location for each of the types of activities permitted by the license: cultivation, propagator, wholesale operations, product manufacturing, retail sales, and testing.
(C) An applicant and its affiliates may obtain multiple testing laboratory licenses.
(e) A dispensary that obtains a retailer license or an integrated license pursuant to this chapter shall maintain the dispensary and retail operations in a manner that protects patient and caregiver privacy in accordance with rules adopted by the Board.
(f) Each licensee shall obtain and maintain commercial general liability insurance in accordance with rules adopted by the Board. Failure to provide proof of insurance to the Board, as required, may result in revocation of the license.
(g) All licenses may be renewed according to procedures adopted through rulemaking by the Board.
(h) [Repealed.] (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 86 (Adj. Sess.), § 4, eff. March 25, 2022; 2021, No. 158 (Adj. Sess.), § 15, eff. May 31, 2022; 2023, No. 65, § 8, eff. June 14, 2023.)
§ 901a. Accessibility and confidentiality of licensing and disciplinary matters
(a) It is the purpose of this section to protect the reputation, security practices, and trade secrets of licensees from undue public disclosure while securing the public’s right to know of government licensing actions relevant to the public health, safety, and welfare.
(b) All meetings and hearings of the Board shall be subject to the Vermont Open Meeting Law.
(c) The following shall be exempt from public inspection and copying under the Public Records Act and shall be kept confidential:
(1) records related to licensee security, safety, transportation, or trade secrets, including information provided in an operating plan pursuant to subdivision 881(a)(1)(B) of this title; and
(2) records related to complaints, investigations, or proceedings, except as provided in subsection (d) of this section.
(d)(1) If a complaint or investigation results in formal action to revoke, suspend, condition, reprimand, warn, fine, or otherwise to penalize a licensee based on noncompliance with law or regulation, the case record, as defined by 3 V.S.A. § 809(e), shall be available for public inspection and copying under Vermont’s Public Records Act.
(2) The Board shall prepare and maintain an aggregated list of all closed investigations into misconduct or noncompliance from whatever source derived. The information contained in the list shall be available for public inspection and copying under Vermont’s Public Records Act. The list shall contain the date, nature, and outcome of each complaint. The list shall not contain the identity of the subject licensee unless formal action resulted, as described in subdivision (1) of this subsection.
(e) Notwithstanding 1 V.S.A. § 317(e), the Public Records Act exemption created in this section shall continue in effect and shall not be repealed through operation of 1 V.S.A. § 317(e). (Added 2023, No. 65, § 9, eff. June 14, 2023.)
§ 902. License qualifications and application process
(a) An applicant, principal of an applicant, and person who owns or controls an applicant, who is a natural person:
(1) shall be 21 years of age or older; and
(2) shall consent to the release of his or her criminal and administrative history records.
(b) As part of the application process, each applicant shall submit, in a format prescribed by the Board, an operating plan. The Board shall adopt rules regarding the required components of an application for each type of license.
(c) The Board shall obtain a fingerprint-based Vermont criminal history record, an out-of-state criminal history record, a criminal history record from the Federal Bureau of Investigation, and any regulatory records relating to the operation of a business in this State or any other jurisdiction for each of the following who is a natural person:
(1) the applicant;
(2) each proposed principal; and
(3) each individual who would control the business.
(d) An applicant who is denied a license may appeal the Board’s determination in accordance with section 847 of this title. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)
§ 903. Priorities; business and technical assistance
(a) The Board shall issue licenses pursuant to this chapter as determined according to a system of priorities adopted by rule by the Board. The system of priorities shall require consideration of criteria, including:
(1) whether the applicants have an existing medical cannabis dispensary license in good standing;
(2) whether the applicants would foster social justice and equity in the cannabis industry by being a minority or women-owned business;
(3) whether the applicants propose specific plans to recruit, hire, and implement a development ladder for minorities, women, or individuals who have historically been disproportionately impacted by cannabis prohibition;
(4) whether applicants propose specific plans to pay employees a living wage and offer benefits;
(5) whether the project incorporates principles of environmental resiliency or sustainability, including energy efficiency; and
(6) the geographic distribution of cannabis establishments based on population and market needs.
(b) The Agency of Commerce and Community Development, in collaboration with the Agency of Agriculture, Food and Markets, shall provide business and technical assistance to Vermont applicants with priority for services based on criteria adopted by the Board in accordance with subsection (a) of this section.
(c) On or before September 1, 2021, the Board shall begin working with the Department of Labor, Agency of Commerce and Community Development, the Department of Corrections, and the Director of Racial Equity to develop outreach, training, and employment programs focused on providing economic opportunities to individuals who historically have been disproportionately impacted by cannabis prohibition. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 105 (Adj. Sess.), § 154, eff. July 1, 2022.)
§ 904. Cultivator license
(a) A cultivator licensed under this chapter may:
(1) cultivate, process, package, label, transport, test, and sell cannabis to a licensed wholesaler, product manufacturer, retailer, integrated licensee, and dispensary;
(2) purchase and sell cannabis seeds and immature cannabis plants to another licensed cultivator and propagation cultivator; and
(3) possess and sell cannabis products to a licensed wholesaler, product manufacturer, retailer, integrated licensee, and dispensary.
(b) Cultivation of cannabis shall occur only:
(1) on property lawfully in possession of the cultivator or with the written consent of the person in lawful possession of the property; and
(2) in an area that is screened from public view and access is limited to the cultivator and persons 21 years of age or older who have permission from the cultivator.
(c) Representative samples of each lot or batch of cannabis intended for human consumption shall be tested for safety and potency in accordance with rules adopted by the Board.
(d) Each cultivator shall create packaging for its cannabis.
(1) Packaging shall include:
(A) The name and registration number of the cultivator.
(B) The strain and variety of cannabis contained.
(C) The potency of the cannabis represented by the amount of tetrahydrocannabinol and cannabidiol in milligrams total and per serving.
(D) A “produced on” date reflecting the date that the cultivator finished producing the cannabis.
(E) Appropriate warnings as prescribed by the Board in rule.
(F) Any additional requirements contained in rules adopted by the Board in accordance with this chapter. Rules shall take into consideration that different labeling requirements may be appropriate depending on whether the cannabis is sold to a wholesaler, product manufacturer, or retailer.
(2) Packaging shall not be designed to appeal to persons under 21 years of age.
(e)(1) Only unadulterated cannabis shall be offered for sale. If, upon inspection, the Board finds any violative pesticide residue or other contaminants of concern, the Board shall order the cannabis, either individually or in blocks, to be:
(A) put on stop-sale;
(B) treated in a particular manner; or
(C) destroyed according to the Board’s instructions.
(2) Cannabis ordered destroyed or placed on stop-sale shall be clearly separable from salable cannabis. Any order shall be confirmed in writing within seven days. The order shall include the reason for action, a description of the cannabis affected, and any recommended treatment.
(3) A person may appeal an order issued pursuant to this section within 15 days after receiving the order. The appeal shall be made in writing and in accordance with section 847 of this title and shall clearly identify the cannabis affected and the basis for the appeal. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 86 (Adj. Sess.), § 5, eff. March 25, 2022; 2021, No. 158 (Adj. Sess.), § 6, eff. May 31, 2022; 2023, No. 65, § 10, eff. June 14, 2023.)
§ 904a. Small cultivators
(a) It is the intent of the General Assembly to move as much of the illegal cannabis market as possible into the regulated market for the purposes of consumer protection and public safety. It is also the intent of the General Assembly to encourage participation in the regulated cannabis market by small, local farmers. In furtherance of these goals, the Board shall consider policies to promote small cultivators as defined in section 861 of this title.
(b) The application for small cultivator licenses shall be prioritized over larger cultivation licenses during the initial application period.
(c) In accordance with subdivision 881(a)(2)(B) of this chapter, the Board shall consider the different needs and risks of small cultivators when adopting rules and shall make an exception or accommodation to such rules for cultivators of this size where appropriate, provided that the rules shall not provide for an exception or accommodation to the requirements of section 869 of this title.
(d) Upon licensing, a small cultivator may sell cannabis to a licensed dispensary at any time for sale to patients and caregivers pursuant to the dispensary license or to the public pursuant to an integrated license, including the time period before retail sales are permitted for licensed cannabis retailers. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)
§ 904b. Propagation cultivator license
(a) A propagation cultivator licensed under this section may:
(1) cultivate not more than 3,500 square feet of cannabis clones, immature cannabis plants, or mature cannabis plants;
(2) test, transport, and sell cannabis clones and immature cannabis plants to licensed cultivators; and
(3) test, transport, and sell cannabis seeds that meet the federal definition of hemp to a licensed cultivator or retailer or to the public.
(b) A licensed propagation cultivator shall not cultivate mature cannabis plants for the purpose of producing, harvesting, transferring, or selling cannabis flower for or to any person. (Added 2023, No. 65, § 11, eff. June 14, 2023.)
§ 905. Wholesaler license
A wholesaler licensed under this chapter may:
(1) purchase cannabis and cannabis products from a licensed cannabis establishment;
(2) transport, process, package, and sell cannabis and cannabis products to a licensed cannabis establishment; and
(3) sell cannabis seeds or immature cannabis plants to a licensed cultivator. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 158 (Adj. Sess.), § 7, eff. May 31, 2022; 2023, No. 65, § 13, eff. June 14, 2023.)
§ 906. Product manufacturer license
A product manufacturer licensed under this chapter may:
(1) purchase cannabis and cannabis products from a licensed cannabis establishment;
(2) use cannabis and cannabis products to produce cannabis products; and
(3) transport, process, package, and sell cannabis products to a licensed cannabis establishment. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2023, No. 65, § 14, eff. June 14, 2023.)
§ 907. Retailer license
(a) A retailer licensed under this chapter may:
(1) purchase cannabis and cannabis products from a licensed cannabis establishment; and
(2) transport, possess, package, and sell cannabis and cannabis products to the public for consumption off the registered premises or for cultivation.
(b) In a single transaction, a retailer may provide one ounce of cannabis or the equivalent in cannabis products, or a combination thereof, to a person 21 years of age or older upon verification of a valid government-issued photograph identification card.
(c)(1) Packaging shall include:
(A) the strain and variety of cannabis contained;
(B) the potency of the cannabis represented by the amount of tetrahydrocannabinol and cannabidiol in milligrams total and per serving;
(C) a “produced on” date reflecting the date that the cultivator finished producing the cannabis;
(D) appropriate warnings as prescribed by the Board in rule; and
(E) any additional requirements contained in rules adopted by the Board in accordance with this chapter.
(2) Packaging shall not be designed to appeal to persons under 21 years of age.
(d) A retailer shall display a safety information flyer at the point of purchase and offer a customer a copy of the flyer with each purchase. A retailer shall inform the customer that if the customer elects not to receive the flyer, the information contained in the flyer is available on the website for the Board. The flyer shall be developed by the Board in consultation with the Department of Health, posted on the Board’s website, and supplied to the retailer free of charge. At a minimum, the flyer or flyers shall contain information concerning the methods for administering cannabis, the amount of time it may take for cannabis products to take effect, the risks of driving under the influence of cannabis, the potential health risks of cannabis use, the symptoms of problematic usage, how to receive help for cannabis abuse, and a warning that cannabis possession is illegal under federal law.
(e) Delivery of cannabis to customers is prohibited. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 86 (Adj. Sess.), § 6, eff. March 25, 2022; 2021, No. 158 (Adj. Sess.), § 17, eff. May 31, 2022; 2023, No. 65, § 15, eff. June 14, 2023.)
§ 908. Testing laboratory license
(a) A testing laboratory licensed under this chapter may acquire, possess, analyze, test, and transport cannabis and cannabis products obtained from a licensed cannabis establishment, dispensary, or a member of the public.
(b) Testing may address the following:
(1) residual solvents;
(2) poisons or toxins;
(3) harmful chemicals;
(4) dangerous molds, mildew, or filth;
(5) harmful microbials, such as E. coli or salmonella;
(6) pesticides; and
(7) tetrahydrocannabinol and cannabidiol potency.
(c) A testing laboratory shall have a written procedural manual made available to employees to follow meeting the minimum standards set forth in rules detailing the performance of all methods employed by the facility used to test the analytes it reports.
(d) In accordance with rules adopted pursuant to this chapter, a testing laboratory shall establish a protocol for recording the chain of custody of all cannabis samples.
(e) A testing laboratory shall establish, monitor, and document the ongoing review of a quality assurance program that is sufficient to identify problems in the laboratory systems when they occur.
(f) A cannabis establishment that is subject to testing requirements under this chapter or rules adopted pursuant to this chapter shall have its cannabis or cannabis products tested by an independent licensed testing laboratory and not a licensed testing laboratory owned or controlled by the license holder of the cannabis establishment. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)
§ 909. Integrated license
(a) An integrated license shall allow the licensee to engage in the activities of a cultivator, wholesaler, product manufacturer, retailer, and testing laboratory as provided in sections 904-908 of this title.
(b) An integrated license is only available to an applicant and its affiliates that hold a dispensary registration on April 1, 2022. There shall be not more than five total integrated licenses, one for each registered dispensary. Upon compliance with all application procedures and requirements, the Board shall issue an integrated license to the applicant. The licensee shall have the right to renew the license in accordance with rules adopted by the Board.
(c) An integrated licensee shall comply with the provisions of subsection 908(f) of this title and have its cannabis or cannabis products tested by an independent licensed testing laboratory. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 158 (Adj. Sess.), § 18, eff. May 31, 2022.)
§ 910. Cannabis establishment fee schedule
The following fees shall apply to each person or product licensed by the Board:
(1) Cultivators.
(A) Outdoor cultivators.
(i) Outdoor cultivator tier 1. Outdoor cultivators with up to 1,000 square feet of plant canopy or fewer than 125 cannabis plants in an outdoor cultivation space shall be assessed an annual licensing fee of $750.00.
(ii) Outdoor cultivator tier 2. Outdoor cultivators with up to 2,500 square feet of plant canopy in an outdoor cultivation space shall be assessed an annual licensing fee of $1,875.00.
(iii) Outdoor cultivator tier 3. Outdoor cultivators with up to 5,000 square feet of plant canopy in an outdoor cultivation space shall be assessed an annual licensing fee of $4,000.00.
(iv) Outdoor cultivator tier 4. Outdoor cultivators with up to 10,000 square feet of plant canopy in an outdoor cultivation space shall be assessed an annual licensing fee of $8,000.00.
(v) Outdoor cultivator tier 5. Outdoor cultivators with up to 20,000 square feet of plant canopy in an outdoor cultivation space shall be assessed an annual licensing fee of $18,000.00.
(vi) Outdoor cultivator tier 6. Outdoor cultivators with up to 37,500 square feet of plant canopy in an outdoor cultivation space shall be assessed an annual licensing fee of $34,000.00.
(B) Indoor cultivators.
(i) Indoor cultivator tier 1. Indoor cultivators with up to 1,000 square feet of plant canopy in an indoor cultivation space shall be assessed an annual licensing fee of $1,500.00.
(ii) Indoor cultivator tier 2. Indoor cultivators with up to 2,500 square feet of plant canopy in an indoor cultivation space shall be assessed an annual licensing fee of $3,750.00.
(iii) Indoor cultivator tier 3. Indoor cultivators with up to 5,000 square feet of plant canopy in an indoor cultivation space shall be assessed an annual licensing fee of $8,000.00.
(iv) Indoor cultivator tier 4. Indoor cultivators with up to 10,000 square feet of plant canopy in an indoor cultivation space shall be assessed an annual licensing fee of $16,000.00.
(v) Indoor cultivator tier 5. Indoor cultivators with up to 15,000 square feet of plant canopy in an indoor cultivation space shall be assessed an annual licensing fee of $36,000.00.
(vi) Indoor cultivator tier 6. Indoor cultivators with up to 25,000 square feet of plant canopy in an indoor cultivation space shall be assessed an annual licensing fee of $75,000.00.
(C) Mixed cultivator tiers.
(i) Mixed cultivator tier 1. Mixed cultivators with the following at the same licensed premises shall be assessed an annual licensing fee of $2,250.00: up to 1,000 square feet of plant canopy in an indoor cultivation space and up to 125 cannabis plants in an outdoor cultivation space.
(ii) Mixed cultivator tier 2. Mixed cultivators with the following at the same licensed premises shall be assessed an annual licensing fee of $5,625.00: up to 2,500 square feet of plant canopy in an indoor cultivation space and up to 312 cannabis plants in an outdoor cultivation space.
(iii) Mixed cultivator tier 3. Mixed cultivators with the following at the same licensed premises shall be assessed an annual licensing fee of $5,500.00: up to 1,000 square feet of plant canopy in an indoor cultivation space and up to 625 cannabis plants in an outdoor cultivation space.
(iv) Mixed cultivator tier 4. Mixed cultivators with the following at the same licensed premises shall be assessed an annual licensing fee of $9,500.00: up to 1,000 square feet of plant canopy in an indoor cultivation space and up to 1,250 cannabis plants in an outdoor cultivation space.
(v) Mixed cultivator tier 5. Mixed cultivators with the following at the same licensed premises shall be assessed an annual licensing fee of $19,500.00: up to 1,000 square feet of plant canopy in an indoor cultivation space and up to 2,500 cannabis plants in an outdoor cultivation space.
(2) Wholesalers. Wholesalers shall be assessed an annual licensing fee of $4,000.00.
(3) Manufacturers.
(A) Manufacturer tier 1. Manufacturers that process and manufacture cannabis in order to produce cannabis products without using solvent-based extraction and not more than $50,000.00 per year in cannabis products based on the manufacturer’s total annual sales in cannabis products shall be assessed an annual licensing fee of $750.00.
(B) Manufacturer tier 2. Manufacturers that process and manufacture cannabis in order to produce cannabis products without using solvent-based extraction shall be assessed an annual licensing fee of $2,500.00.
(C) Manufacturer tier 3. Manufacturers that process and manufacture cannabis in order to produce cannabis products using all allowable methods of extraction, including solvent-based extraction, shall be assessed an annual licensing fee of $15,000.00.
(4) Retailers. Retailers that sell cannabis and cannabis products to consumers shall be assessed an annual licensing fee of $10,000.00.
(5) Testing laboratories. Testing laboratories shall be assessed an annual licensing fee of $1,500.00.
(6) Integrated licensees. Integrated licensees shall be assessed an annual licensing fee of $100,000.00.
(7) Propagation cultivators. Propagation cultivators shall be assessed an annual licensing fee of $500.00.
(8) Employees. Cannabis establishments licensed by the Board shall be assessed an annual licensing fee of $50.00 for each employee.
(9) Products. Cannabis establishments licensed by the Board shall be assessed an annual product licensing fee of $50.00 for every type of cannabis and cannabis product that is sold in accordance with this chapter.
(10) Local licensing fees. Cannabis establishments licensed by the Board shall be assessed an annual local licensing fee of $100.00 in addition to each fee assessed under subdivisions (1)–(7) of this section. Local licensing fees shall be distributed to the municipality in which the cannabis establishment is located pursuant to section 846(c) of this title.
(11) One-time fees.
(A) All applicants for a cannabis establishment license shall be assessed an initial one-time application fee of $1,000.00.
(B) An applicant may choose to be assessed an initial one-time intent-to-apply fee of $500.00. If the applicant subsequently seeks a license within one year after paying the intent-to-apply fee, the initial one-time application fee of $1,000.00 shall be reduced by $500.00. (Added 2021, No. 86 (Adj. Sess.), § 7, eff. March 25, 2022; amended 2021, No. 158 (Adj. Sess.), § 19, eff. May 31, 2022; 2023, No. 65, § 16, eff. June 14, 2023.)
§ 911. Fee waiver and reduction; social equity applicants
The Cannabis Control Board may, in its discretion and pursuant to adopted rule or readily accessible policy, or both, reduce or waive cannabis establishment application and licensing fees for social equity applicants as defined by the Board, including individuals from communities that historically have been disproportionately impacted by cannabis prohibition and individuals directly and personally impacted by cannabis prohibition. (Added 2021, No. 86 (Adj. Sess.), § 7, eff. March 25, 2022.)
