§ 561. Findings; intent
(a) Findings.
(1) Hemp has been continuously cultivated for millennia; is accepted and available in
the global marketplace; and has numerous beneficial, practical, and economic uses,
including high-strength fiber, textiles, clothing, biofuel, paper products, protein-rich
food containing essential fatty acids and amino acids, biodegradable plastics, resins,
nontoxic medicinal and cosmetic products, construction materials, rope, and value-added
crafts.
(2) The many agricultural and environmental beneficial uses of hemp include livestock
feed and bedding, stream buffering, erosion control, water and soil purification,
and weed control.
(3) The hemp plant, an annual herbaceous plant with a long slender stem ranging in height
from four to 15 feet and a stem diameter of one-quarter to three-quarters of an inch,
is morphologically distinctive and readily identifiable as an agricultural crop grown
for the cultivation and harvesting of its fiber and seed.
(4) Hemp cultivation will enable the State of Vermont to accelerate economic growth and
job creation, promote environmental stewardship, and expand export market opportunities.
(5) Section 10113 of the Agriculture Improvement Act of 2018, Pub. L. No. 115-334 authorizes the growing, cultivation, and marketing of hemp under a U.S. Department
of Agriculture approved State program.
(6) The federal Agricultural Act of 2014, Pub. L. No. 113-79, Sec. 7606, codified at 7 U.S.C. § 5940, authorized states, subject to certain requirements, to implement agricultural pilot
programs for the growing, cultivation, and marketing of hemp, notwithstanding restrictions
under the federal Controlled Substances Act. The pilot program was previously set
to expire in 2020, but states may now operate a pilot program in 2021. The pilot program
and 7 U.S.C. § 5940 are currently scheduled for repeal on January 1, 2022.
(b) Purpose. The intent of this chapter is to establish policy and procedures for growing, processing,
testing, and marketing hemp and hemp products in Vermont that comply with federal
law so that farmers and other businesses in the Vermont agricultural industry can
take advantage of this market opportunity. (Added 2007, No. 212 (Adj. Sess.), § 2; amended 2013, No. 84, § 1; 2017, No. 143 (Adj. Sess.), § 5; 2019, No. 44, § 1, eff. May 30, 2019; 2021, No. 47, § 10, eff. June 1, 2021; 2021, No. 174 (Adj. Sess.), § 8, eff. July 1, 2022.)
§ 562. Definitions
As used in this chapter:
(1) “Agency” means the Agency of Agriculture, Food and Markets.
(2)(A) “Grow” means:
(i) planting, cultivating, harvesting, or drying of hemp; and
(ii) selling, storing, and transporting hemp grown by a grower.
(B) “Grow” may be used interchangeably with the word “produce.”
(3) “Grower” means a person who is registered with the Agency to produce hemp crops.
(4)(A) “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, which 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.
(B) Notwithstanding subdivision (A) of this subdivision (4), “hemp products” and “hemp-infused
products” do not include any substance, manufacturing intermediary, or product that:
(i) is prohibited or deemed a regulated cannabis product by administrative rule of the
Cannabis Control Board; or
(ii) contains more than 0.3 percent total tetrahydrocannabinol on a dry-weight basis.
(C) A hemp-derived product or substance that is excluded from the definition of “hemp
products” or “hemp-infused products” pursuant to subdivision (B) of this subdivision
(4) shall be considered a cannabis product as defined by 7 V.S.A. § 831(3); provided, however, that a person duly licensed or registered by the Cannabis Control
Board lawfully may possess such products in conformity with the person’s license or
hemp processor registration.
(5) “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. “Hemp” shall be considered an agricultural commodity.
(6) “Process” means the storing, drying, trimming, handling, compounding, or converting
of a hemp crop by a processor for a single grower or multiple growers into hemp products
or hemp-infused products. “Process” includes transporting, aggregating, packaging
hemp from a single grower or multiple growers, or manufacturing hemp products or hemp-infused
products from hemp concentrate.
(7) “Processor” means a person who is registered with the Agency to process hemp crops.
A retail establishment selling hemp products or hemp-infused products is not a processor.
(8) “Secretary” means the Secretary of Agriculture, Food and Markets. (Added 2007, No. 212 (Adj. Sess.), § 2; amended 2013, No. 84, § 1; 2017, No. 143 (Adj. Sess.), § 5; 2019, No. 44, § 1, eff. May 30, 2019; 2021, No. 174 (Adj. Sess.), § 8, eff. July 1, 2022; 2023, No. 160 (Adj. Sess.), § 13, eff. July 1, 2024; 2023, No. 166 (Adj. Sess.), § 1, eff. June 10, 2024.)
§ 563. Hemp; an agricultural product
(a) Hemp is an agricultural product that may be grown as a crop produced, possessed, marketed,
and commercially traded in Vermont pursuant to the provisions of this chapter and
section 10113 of the Agriculture Improvement Act of 2018, Pub. L. No. 115-334.
(b) Alternatively, for as long as federal law authorizes continuation of the hemp pilot
program pursuant to the federal Agricultural Act of 2014, Pub. L. No. 113-79, Sec.
7606, as codified at 7 U.S.C. § 5940, the Secretary may continue to operate an agricultural pilot program for hemp as
authorized by and in compliance with 7 U.S.C. § 5940, as amended, and the provisions of this chapter. Hemp growers and processors shall
also then comply with pilot program federal requirements and the provisions of this
chapter. If the Secretary operates a hemp pilot program, the program shall not be
subject to the terms of Section 10113 of the Agricultural Improvement Act of 2018,
Pub. L. No. 115-334.
(c) Notwithstanding any provision of State law to the contrary and notwithstanding the
scheduled repeal of 7 U.S.C. § 5940 on January 1, 2022, a person shall not be in violation of the requirements of this
chapter if he or she grows or cultivates hemp during the 2021 hemp season or markets
hemp grown during the 2021 hemp season in compliance with the terms established by
the federal Agricultural Act of 2014.
(d) The cultivation of hemp shall be subject to and comply with the Required Agricultural
Practices adopted under section 4810 of this title, as amended. (Added 2007, No. 212 (Adj. Sess.), § 2; amended 2013, No. 84, § 1; 2015, No. 64, § 13; 2017, No. 143 (Adj. Sess.), § 5; 2019, No. 44, § 1, eff. May 30, 2019; 2021, No. 47, § 10, eff. June 1, 2021; 2021, No. 174 (Adj. Sess.), § 8, eff. July 1, 2022.)
§ 564. State Hemp Program; registration; application; administration
(a) The Secretary may establish and administer a State Hemp Program to regulate the growing,
processing, testing, or marketing of hemp and hemp products in the State.
(b)(1) A person shall register annually with the Secretary as part of the State Hemp Program
in order to grow, process, or test hemp or hemp products in the State. A person shall
apply for registration or renewal of a registration on a form provided by the Secretary.
The application shall be accompanied by the fee required under section 570 of this title. The application or renewal form shall include:
(A) the name and address of the person applying for or renewing a registration;
(B) whether the person is applying to grow, process, or test hemp or hemp products;
(C) for a person applying as a grower:
(i) the location and acreage of all parcels where hemp will be grown; and
(ii) a statement that the seeds obtained for planting are of a type and variety that do
not exceed the federally defined tetrahydrocannabinol concentration level of hemp;
(D) for a person applying as a processor, the location of the processing site;
(E) for a person applying to test hemp or hemp products, the location of the site where
testing will occur and any proof of certification required by the Secretary; and
(F) any additional information that the Secretary may require by rule.
(2) The Secretary may verify the information provided in the application or renewal form
under subdivision (1) of this subsection and on any maps accompanying the application
or renewal form and may request additional information in order to perform a review
of an application for registration or renewal.
(c) The Secretary may deny an application for registration or renewal if the applicant:
(1) does not provide all the information requested on the application or renewal form;
(2) fails to submit the fee required under section 570 of this title;
(3) fails to submit additional information requested by the Secretary under subsection
(b) of this section; or
(4) does not, as determined by the Secretary, satisfy the requirements of section 10113
of the Agriculture Improvement Act of 2018, Pub. L. No. 115-334 for participation
in the Program.
(d) A person registered under this section may purchase or import hemp genetics from any
state that complies with the federal requirements for the cultivation of hemp.
(e) A person registered with the Secretary under this section to grow, process, or test
hemp crops or hemp products shall allow the Secretary to inspect hemp crops, processing
sites, or laboratories registered under the State Hemp Program. The Secretary shall
retain tests and inspection information collected under this section for the purposes
of research of the growth and cultivation of hemp.
(f) The name and general location of a person registered under this section shall be available
for inspection and copying under the Public Records Act, provided that all records
produced or acquired by the Agency of Agriculture, Food and Markets related to the
location of parcels where hemp will be grown, including coordinates, maps, and parcel
identifiers, shall be confidential and shall not be disclosed for inspection and copying
under the Public Records Act. (Added 2007, No. 212 (Adj. Sess.), § 2; amended 2013, No. 84, § 1; 2017, No. 143 (Adj. Sess.), § 5; 2019, No. 44, § 1, eff. May 30, 2019; 2021, No. 174 (Adj. Sess.), § 8, eff. July 1, 2022; 2023, No. 6, § 41, eff. July 1, 2023.)
§ 565. Repealed. 2013, No. 84, § 1.
§ 566. Rulemaking authority
(a) The Secretary may adopt rules to provide for the implementation of this chapter and
the Program authorized under this chapter, which may include rules to:
(1) require hemp to be tested during growth for tetrahydrocannabinol levels;
(2) authorize or specify the method or methods of testing hemp, including, where appropriate,
the ratio of cannabidiol to tetrahydrocannabinol levels or a taxonomic determination
using genetic testing;
(3) require inspection and supervision of hemp during sowing, growing season, harvest,
storage, and processing;
(4) require labels or label information for hemp products in order to provide consumers
with product content or source information or to conform with federal requirements;
(5) establish certification requirements for hemp seed sold or distributed in the State;
and
(6) require disclosure or labeling of the amount of cannabinoid known to be present in
hemp seed sold or distributed in the State.
(b) The Secretary may adopt rules establishing how the Agency of Agriculture, Food and
Markets will conduct research within the Program for hemp.
(c) The Secretary shall adopt rules establishing requirements for the registration of
processors of hemp and hemp-infused products. (Added 2007, No. 212 (Adj. Sess.), § 2; amended 2013, No. 84, § 1; 2017, No. 143 (Adj. Sess.), § 5; 2019, No. 44, § 1, eff. May 30, 2019; 2019, No. 129 (Adj. Sess.), § 27; 2021, No. 174 (Adj. Sess.), § 8, eff. July 1, 2022.)
§ 567. Repealed. 2021 (Adj. Sess.), No. 158, § 5, effective May 21, 2022.
(Added 2017, No. 143 (Adj. Sess.), § 7; amended 2019, No. 164 (Adj. Sess.), § 29, eff. Oct. 7, 2020; § 5.)
§ 568. Test results; enforcement
(a) When notified of a hemp crop, hemp product, or hemp-infused product that has a delta-9
tetrahydrocannabinol concentration exceeding the applicable federally defined tetrahydrocannabinol
concentration level of hemp, the person registered with the Secretary as growing or
processing the hemp shall arrange for disposal, remediation, or destruction of the
hemp crop, hemp product, or hemp-infused product in a manner consistent with applicable
State and federal law.
(b) To enforce the provisions of this chapter, the Secretary, upon presenting appropriate
credentials, may conduct one or more of the following:
(1) Enter upon any premises where hemp is grown or processed and inspect premises, machinery,
equipment and facilities, any crop during any growth phase, or any hemp product or
hemp-infused product during processing or storage. Inspection under this section may
include the taking of samples, inspection of records, and inspection of equipment
or vehicles used in the growing, processing, or transport of hemp crops, hemp products,
or hemp-infused products.
(2) Inspect any retail location offering hemp products or hemp-infused products. Inspection
under this section may include the taking of samples of such products.
(3) Issue and enforce a written or printed “stop sale” order to the owner or custodian
of any hemp crop, hemp product, or hemp-infused product subject to the requirements
of this chapter or rules adopted under this chapter that the Secretary finds is in
violation of any of the provisions of this chapter or rules adopted under this chapter.
An order may prohibit further sale, processing, and movement of the hemp crop, hemp
product, or hemp-infused product until the Secretary has approved and issued a release
from the “stop sale” order.
(A) This order should include the reason for being issued, a description of the crops
or products at issue, instructions to separate all crops or products subject to the
order, and any recommended measures to remedy the basis or bases for the order.
(B) A person issued a “stop sale” order may appeal that order to the Secretary within
15 days after receipt. The person shall file any appeal by serving a letter on the
Secretary, which shall state all grounds for the appeal and identify the crops or
products affected by the appeal.
(c) [Repealed.] (Added 2017, No. 143 (Adj. Sess.), § 7; 2019, No. 44, § 1, eff. May 30, 2019; amended 2021, No. 174 (Adj. Sess.), § 8, eff. July 1, 2022.)
§ 569. Administrative penalties
(a) Except for violations set forth under subsection (b) of this section, the Secretary
may assess an administrative penalty, not to exceed $1,000.00 per violation, for any
violation of this chapter or rules adopted under this chapter, including:
(1) failure to provide the location of the land on which the grower grows hemp crops or
the processor processes hemp crops into hemp products or hemp-infused products; or
(2) failing to obtain a registration in accordance with section 570 of this title.
(b) The Secretary may assess an administrative penalty, not to exceed $5,000.00 per violation
in any case in which the Secretary determines that a grower or processor:
(1) failed to follow a corrective action plan to correct a negligent violation;
(2) has grown or processed hemp in violation of the requirements of this chapter or the
rules adopted under this chapter three times in a five-year period; or
(3) has produced hemp in violation of the requirements of this chapter or the rules adopted
under this chapter with a culpable mental state greater than negligence.
(c) In determining the amount of the penalty assessed under this section, the Secretary
may give consideration to the appropriateness of the penalty with respect to the size
of the business being assessed, the gravity of the violation, the good faith of the
person alleged to be in violation, and the overall compliance history of the person
alleged to be in violation.
(d) The Secretary shall use the following procedure in assessing penalties:
(1) The Secretary shall issue a written notice of violation setting forth facts that would
establish probable cause that a violation of this chapter or the rules adopted under
this chapter has occurred.
(2) The notice required under subdivision (1) of this subsection shall comply with all
of the following:
(A) The notice shall be served by personal service or by certified mail, return receipt
requested.
(B) The notice shall advise the recipient of the right to a hearing. If a hearing is requested,
the hearing shall be conducted pursuant to 3 V.S.A. chapter 25.
(C) The notice shall state the proposed penalty and shall advise the recipient that, if
no hearing is requested, the decision of the Secretary shall become final and a penalty
shall be imposed.
(D) The notice shall advise the recipient that they shall have 15 days from the date on
which notice is received to request a hearing.
(e) Any party aggrieved by a final decision of the Secretary may appeal to a Superior
Court within 30 days of the final decision of the Secretary. The Secretary may enforce
a final administrative penalty by filing a civil collection action in any District
or Superior Court. (Added 2019, No. 44, § 1, eff. May 30, 2019; amended 2023, No. 6, § 42, eff. July 1, 2023.)
§ 570. Registration fees
(a) A person applying for a registration or renewal under section 564 of this title annually shall pay the following fees:
(1) for an application to grow less than 0.5 acres of hemp for personal use: $25.00;
(2) for an application or renewal of registration to grow or process hemp seed for food
oil production, grain crop, fiber, or textile: $100.00;
(3) except as provided for in subdivision (4) of this subsection, for an application or
renewal of registration to grow, process, or grow and process hemp commercially for
floral material production, viable seed, or cannabinoids, including cannabidiolic
acid (CBDA), cannabidiol (CBD), cannabinol (CBN), cannabigerol (CBG), cannabichromene
(CBC), or tetrahydrocannabivarin (THCV), the following fee based on the greater of
the number of acres planted or the weight of hemp or viable seed processed:
| Acres of Hemp Grown or Pounds of Hemp Processed or Viable Seed Cultivated Annually
for Floral Material or Cannabinoids
|
Fee |
| |
Less than 0.5 acres or less than 500 pounds |
$100.00 |
| |
0.5 to 9.9 acres or less than 10,000 pounds |
$500.00 |
| |
10 to 50 acres or less than 50,000 pounds |
$1,000.00 |
| |
Greater than 50 acres or greater than 50,000 pounds |
$3,000.00 |
(4) for an application or renewal of registration to operate exclusively within an indoor
facility in order to grow, process, or grow and process hemp commercially for floral
material production, viable seed, or cannabinoids, including cannabidiolic acid (CBDA),
cannabidiol (CBD), cannabinol (CBN), cannabigerol (CBG), cannabichromene (CBC), or
tetrahydrocannabivarin (THCV), the following fee based on the size of the indoor facility:
(A) for a facility with an area of 500 square feet or less: $1,000.00; and
(B) for a facility with an area greater than 500 square feet: $2,000.00.
(5) for an application or renewal of registration as a laboratory certified to conduct
testing of hemp and hemp products as part of the Agency’s cannabis control program:
$1,500.00.
(b) A person registered to grow, process, or grow and process hemp for floral material
production, viable seed, or cannabinoids shall not grow more acres of hemp per year
than the amount identified in a registration without first notifying the Secretary
and paying an additional registration fee if necessary under subsection (a) of this
section.
(c) The registration fees collected under this section shall be deposited in the special
fund created by subsection 364(f) of this title and shall be used for the administration of the requirements of this chapter. (Added 2019, No. 44, § 1, eff. May 30, 2019; amended 2021, No. 41, § 10b.)
§ 571. Hemp seed; labeling; standards
(a) A person shall not sell, offer for sale, expose for sale, transport for sale, or distribute
in the State hemp seed that:
(1) is not labeled in accordance with the requirements of this section or rules adopted
by the Secretary;
(2) fails to meet germination standards, feminized seed claims, or other claims made on
the label or in an advertisement or provides false or misleading information on a
label or in an advertisement;
(3) fails to meet certification standards if standards have been adopted by the Secretary
by rule; or
(4) consists of or contains prohibited noxious weed seeds, as that term is defined in
section 641 of this title.
(b) Hemp seed sold, offered for sale, exposed for sale, transported for sale, or distributed
in the State shall have a label attached to the bag or container in which the seed
is sold, offered for sale, exposed for sale, transported for sale, or distributed.
The label shall contain the following information:
(1) the name and kind of each hemp seed present in excess of five percent of the whole
percentage by weight;
(2) the origin state or foreign country of the hemp seed;
(3) whether the hemp seed was certified by a state or foreign country;
(4) the percentage by weight of any weed seeds in the container or bag;
(5) the percentage by weight of inert matter in the container or bag;
(6) the percentage of feminized seed;
(7) the percentage of germination of the seed;
(8) the date the seed was packed or packaged; and
(9) the name and address of the person who labeled the hemp seed or who sells, offers
for sale, exposes for sale, or distributes the hemp seed in the State.
(c) The Secretary may issue a stop sale order for the violation of the requirements of
this section or rules adopted by the Secretary under this chapter. The sale, processing,
and movement of any seed subject to a stop sale order is prohibited until the Secretary
issues a release from the stop sale order.
(d) A violation of this section or rules adopted by the Secretary under this chapter shall
be subject to an administrative penalty under section 569 of this title.
(e)(1) A person injured or damaged by a violation of this section or a rule adopted by the
Secretary under this chapter regarding the sale, offer for sale, exposure for sale,
transport for sale, or distribution of hemp seed in the State may bring an action
for equitable relief or damages arising from the violation.
(2) The cause of action authorized under this section is in addition to any common law
or statutory remedies otherwise available and does not amend or conflict with the
powers and authority of the Agency of Agriculture, Food and Markets.
(f) The Secretary may conduct inspections and otherwise enforce requirements for the sale
or distribution of hemp seed established under this chapter according to the Secretary’s
general authority to regulate seed under chapter 35 of this title, provided that the
Secretary shall issue any penalty for the violation of the requirements of this chapter
under the provisions of this chapter or rules adopted under this chapter. (Added 2019, No. 129 (Adj. Sess.), § 26.)