The Vermont Statutes Online
The Statutes below now include the actions of the 2026 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 031: Cannabis
- Subchapter 001: General Provisions
§ 831. Definitions
As used in this chapter:
(1) “Board” means the Cannabis Control Board.
(2)(A) “Cannabis” means all parts of the plant Cannabis sativa L., except as provided by subdivision (B) of this subdivision (2), whether growing or harvested, and includes:
(i) the seeds of the plant;
(ii) the resin extracted from any part of the plant; and
(iii) any compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin.
(B) “Cannabis” does not include:
(i) the mature stalks of the plant and fiber produced from the stalks;
(ii) oil or cake made from the seeds of the plant;
(iii) any compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks, fiber, oil, or cake;
(iv) the sterilized seed of the plant that is incapable of germination; or
(v) hemp or hemp products, as defined in 6 V.S.A. § 562.
(3) “Cannabis product” means concentrated cannabis and a product that is composed of cannabis and other ingredients and is intended for use or consumption, including an edible product, ointment, and tincture. Cannabis product shall include a vaporizer cartridge containing cannabis oil that is intended for use with a battery-powered device and any device designed to deliver cannabis into the body through inhalation of vapor that is sold at a cannabis establishment licensed pursuant to chapter 33 of this title. “Cannabis product” does not mean a “tobacco product” as defined in 32 V.S.A. § 7702, a “tobacco substitute” as defined in section 1001 of this title, or “tobacco paraphernalia” as defined in section 1001 of this title.
(4) “Chair” means the Chair of the Cannabis Control Board.
(5) “Criminal history record” shall have the same meaning as in 20 V.S.A. § 2056a(a).
(6) “Public place” means any street, alley, park, sidewalk, public building other than individual dwellings, any place of public accommodation as defined in 9 V.S.A. § 4501, and any place where the use or possession of a lighted tobacco product, tobacco product, or tobacco substitute is prohibited by law pursuant to 18 V.S.A. chapter 37. (Added 2019, No. 164 (Adj. Sess.), § 2, eff. Oct. 7, 2020; amended 2023, No. 65, § 23a, eff. June 14, 2023.)
§ 832. Cannabis possessed unlawfully subject to seizure and forfeiture
Cannabis possessed unlawfully in violation of this title or administrative rules adopted pursuant to this title may be seized by law enforcement and is subject to forfeiture. (Added 2019, No. 164 (Adj. Sess.), § 2, eff. Oct. 7, 2020; amended 2025, No. 56, § 1, eff. July 1, 2025.)
§ 833. Consumption of cannabis in a public place
No person shall consume cannabis in a public place unless specifically authorized by law. Violations shall be punished in accordance with 18 V.S.A. § 4230a. (Added 2019, No. 164 (Adj. Sess.), § 2, eff. Oct. 7, 2020.)
§ 834. Sales restrictions
(a) As used in this section, “unregistered hemp” or “unregistered cannabis” means a product required by State law or rule of the Cannabis Control Board to be registered with the Cannabis Control Board, including a product derived from the unregistered hemp or unregistered cannabis, that is not registered on the date a transaction occurs.
(b) No person shall cause unregistered hemp or unregistered cannabis purchased by mail or through a computer network, telephonic network, or other electronic network to be shipped to anyone other than a licensed cannabis laboratory in this State.
(c) No person shall, with knowledge or reason to know of the violation, provide substantial assistance to a person in violation of this section.
(d) A violation of this section is punishable as follows:
(1) A knowing or intentional violation of this section shall be punishable by imprisonment for not more than five years or a fine of not more than $5,000.00, or both.
(2) In addition to or in lieu of any other civil or criminal remedy provided by law, upon a determination that a person has violated this section, the Attorney General may impose a civil penalty in an amount not to exceed $5,000.00 for each violation. For purposes of this subsection, each shipment or transport of unregistered hemp or unregistered cannabis shall constitute a separate violation.
(3) The Attorney General may seek an injunction to restrain a threatened or actual violation of this section.
(4) In any action brought pursuant to this section, the State shall be entitled to recover the costs of investigation, expert witness fees, the action, and reasonable attorney’s fees.
(5) A person who violates this section engages in an unfair and deceptive trade practice in violation of the State’s Consumer Protection Act, 9 V.S.A. §§ 2451 et seq.
(6) If a court determines that a person has violated the provisions of this section, the court shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged and paid to the State Treasurer for deposit in the General Fund.
(7) Unless otherwise expressly provided, the penalties or remedies, or both, under this section are in addition to any other penalties and remedies available under any other law of this State. (Added 2025, No. 178 (Adj. Sess.), § 20, eff. June 18, 2026.)
§ 835. Commercial cannabis compact
(a) As used in this section:
(1) “Agreement” means an agreement relating to commercial cannabis authorized pursuant to this section and entered into between this State and another state or states.
(2) “Contracting state” means a state of the United States, including a district, commonwealth, territory, or possession subject to the legislative authority of the United States, with which the Governor has entered into an agreement pursuant to this section.
(3) “Foreign licensee” means the holder of a cannabis license issued pursuant to the laws of another state that has entered into an agreement pursuant to this section.
(4) “Vermont license” means a cannabis license issued by the Board.
(b) The Governor is authorized to enter into an agreement with another state or states authorizing medical or commercial cannabis activity, or both, between entities licensed under the laws of the contracting state and entities operating with a Vermont license, provided that:
(1) the commercial cannabis activities are lawful and subject to licensure under the laws of the contracting state; and
(2) with respect to the interstate transportation of cannabis or cannabis products, the agreement prohibits the following:
(A) the transportation of cannabis and cannabis products by any means other than those authorized under the laws of the contracting state and the regulations of the Board; and
(B) the transportation of cannabis and cannabis products through the jurisdiction of a state, district, commonwealth, territory, or possession of the United States that does not authorize that transportation.
(c) Notwithstanding any other law, a foreign licensee may engage in commercial cannabis activity with a Vermont licensee and a Vermont licensee may engage in commercial cannabis activity with a foreign licensee, subject to the requirements and limitations set forth in this section.
(d) A foreign licensee shall not engage in commercial cannabis activity within the boundaries of this State without a Vermont license, or engage in commercial cannabis activity within a local jurisdiction without proper authorization issued by the local jurisdiction.
(e) An agreement shall require that the contracting state impose requirements on foreign licensees with regard to cannabis and cannabis products to be sold or otherwise transferred or distributed within this State that meet or exceed the requirements applicable to Vermont licensees, including:
(1) enforceable public health and safety standards that are equivalent to the requirements of the Board;
(2) mandatory participation in a system administered by this State to regulate and track cultivation, manufacturing, distribution, transportation, sale, and destruction of cannabis and cannabis products from seed to sale;
(3) standards for testing of cannabis or cannabis products that meet or exceed the standards applicable to testing laboratories licensed by the Board;
(4) requirements for the packaging and labeling of cannabis and cannabis products that meet or exceed the packaging and labeling requirements established pursuant to Board rules;
(5) requirements for quality assurance and inspection of cannabis or cannabis products that meet or exceed the requirements applicable to cannabis or cannabis products cultivated, manufactured, or sold by Vermont licensees;
(6) restrictions on marketing, labeling, and advertising within this State by foreign licensees that meet or exceed the restrictions of Vermont licensees pursuant to this title; and
(7) a process for identification of adulterated or misbranded cannabis products, and the destruction of those products, using standards that meet or exceed the standards and procedures adopted by the Board.
(f) An agreement shall require that the contracting state impose restrictions upon advertising, marketing, labeling, or sale within the contracting state that meet or exceed restrictions established pursuant to this title and the rules adopted by the Board.
(g) An agreement shall provide for collection of all taxes applicable to the medical or commercial cannabis activity.
(h) An agreement shall include provisions requiring the Board and any other appropriate regulatory authorities of the contracting state to address public health and welfare emergencies concerning cannabis or cannabis products that are sold or intended for sale within this State, including for prompt recall or embargo of adulterated or misbranded cannabis products.
(i) An agreement shall include provisions requiring appropriate regulatory authorities of each state to investigate instances of alleged noncompliance with the commercial cannabis regulatory rules and regulations upon request by the other state and in accordance with mutually agreed-upon procedures. An agreement shall include provisions requiring the contracting state to reasonably cooperate with this State’s investigations concerning foreign licensees and requiring the Board to reasonably cooperate with investigations by the contracting state concerning persons or entities holding Vermont licenses.
(j) An agreement shall include appropriate provisions reflecting Board programs and efforts to promote the inclusion and support of individuals and communities in the cannabis industry who are linked to populations and neighborhoods that were negatively or disproportionately impacted by cannabis criminalization.
(k) Prior to the execution of an agreement or amendment to an agreement, the Governor shall:
(1) Submit the proposed agreement or amendments to the Board and the Joint Fiscal Committee for review and comment. The Board and Committee shall have 60 days to review the proposed agreement or amendment and to submit written recommendations to the Governor. The Governor shall consider all recommendations submitted by the Board and Committee and may revise the proposed agreement or amendment to incorporate the recommendations. If the Governor does not incorporate any recommendations, the Governor shall set forth, in writing, the reasons for not incorporating the recommendations.
(2) Post the proposed agreement or amendment on the Governor’s and Board’s internet websites for public comment for 30 days. The Governor shall consider any comments received.
(l) An agreement entered into pursuant to this section shall not take effect unless one of the following occurs:
(1) federal law is amended to allow for the interstate transfer of cannabis or cannabis products between authorized commercial cannabis businesses;
(2) federal law is enacted that specifically prohibits the expenditure of federal funds to prevent the interstate transfer of cannabis or cannabis products between authorized commercial cannabis businesses;
(3) the U.S. Department of Justice issues an opinion or memorandum allowing or tolerating the interstate transfer of cannabis products between authorized commercial cannabis businesses; or
(4) the Attorney General issues a written opinion that implementation of agreements entered into under this section will not result in significant legal risk to this State based on review of federal judicial decisions and administrative action.
(m) The Board shall notify the Governor and the General Assembly upon the occurrence of an event described in subsection (l) of this section and shall post the notification on the Board’s website.
(n) The Board may adopt emergency rules pursuant to 3 V.S.A. § 844 governing the procedures for admission of a foreign licensee to conduct commercial cannabis activities within the State. Notwithstanding 3 V.S.A. § 844(b), the Board’s emergency rules shall be effective for one year from the date of adoption. Within 90 days after adopting the emergency rules, the Board shall report to the House Committee on Government Operations and Military Affairs and the Senate Committee on Economic Development, Housing and General Affairs concerning its recommendations for necessary updates to Vermont’s cannabis laws and a proposal for permanent rules governing commercial cannabis activities subject to an agreement. (Added 2025, No. 176 (Adj. Sess.), § 27b, eff. July 1, 2026.)
- Subchapter 002: CANNABIS CONTROL BOARD
§ 841. Cannabis Control Board; appointment
(a) When a vacancy occurs on the Cannabis Control Board, the Governor shall make a public announcement about the vacancy. The Governor shall submit at least five names of potential candidates per vacancy to the Cannabis Control Board Nominating Committee for review.
(b) The Committee shall review the candidates to determine which candidates are well-qualified for appointment to the Board and shall recommend those candidates to the Governor. The names of candidates shall be confidential.
(c) The Governor shall appoint, with the advice and consent of the Senate, a chair and two members of the Board from the list of well-qualified candidates sent to the Governor by the Committee. (Added 2019, No. 164 (Adj. Sess.), §§ 2, 6e(1), eff. Oct. 7, 2020.)
§ 842. Cannabis Control Board Nominating Committee
(a) Creation. The Cannabis Control Board Nominating Committee is created for the purpose of assessing the qualifications of applicants for appointment to the Cannabis Control Board in accordance with section 841 of this title.
(b) Members. The Committee shall consist of seven members who shall be selected as follows:
(1) The Governor shall appoint three members from the Executive Branch.
(2) The Speaker of the House of Representatives shall appoint two members from the House of Representatives.
(3) The Senate Committee on Committees shall appoint two members from the Senate.
(c) Duties. When the Governor submits the names of candidates for appointment to the Cannabis Control Board in accordance with section 841 of this title, the Committee shall review candidates to determine which candidates are well-qualified for the Board and submit those names to the Governor.
(d) Terms. The members of the Committee shall serve for terms of two years. Members shall serve until their successors are appointed. Members shall serve not more than three consecutive terms in any capacity. A legislative member who is appointed as a member of the Committee shall retain the position for the term for which he or she was appointed to the Committee even if the member is subsequently not reelected to the General Assembly during the member’s term on the Committee.
(e) Chair. The members shall elect their own chair.
(f) Quorum. A quorum of the Committee shall consist of four members.
(g) Staff and services. The Committee is authorized to use the staff and services of appropriate State agencies and departments as necessary to conduct investigations of applicants.
(h) Confidentiality. Except as provided in subsection (i) of this section, proceedings of the Committee, including the names of candidates considered by the Committee and information about any candidate submitted by the Governor, shall be confidential. The provisions of 1 V.S.A. § 317(e) (expiration of Public Records Act exemptions) shall not apply to the exemptions or confidentiality provisions in this subsection.
(i) Public information. The following shall be public:
(1) operating procedures of the Committee;
(2) standard application forms and any other forms used by the Committee, provided they do not contain personal information about a candidate or confidential proceedings;
(3) all proceedings of the Committee prior to the Board’s receipt of the first candidate’s completed application; and
(4) at the time the Committee sends the names of the candidates to the Governor, the total number of applicants for the vacancies and the total number of candidates sent to the Governor.
(j) Reimbursement. Legislative members of the Committee shall be entitled to per diem compensation and reimbursement for expenses in accordance with 2 V.S.A. § 23. Compensation and reimbursement shall be paid from the legislative appropriation. (Added 2019, No. 164 (Adj. Sess.), §§ 2, 6e(2), eff. Oct. 7, 2020.)
§ 843. Cannabis Control Board; duties; members
(a) Creation. There is created within the Executive Branch an independent commission named the Cannabis Control Board for the purpose of safely, equitably, and effectively implementing and administering the laws enabling access to adult-use cannabis in Vermont.
(b) Duties. The duties of the Board shall be:
(1) rulemaking in accordance with this chapter, chapters 33-37 of this title, and 3 V.S.A. chapter 25;
(2) administration of a program for licensed cannabis establishments, which shall include compliance and enforcement;
(3) administration of the Medical Cannabis Registry on and after March 1, 2022;
(4) administration of a program for licensed medical cannabis dispensaries, which shall include compliance and enforcement, on and after March 1, 2022; and
(5) submission of an annual budget to the Governor.
(c) Membership.
(1) The Board shall be composed of a chair and two members appointed by the Governor in accordance with sections 841 and 842 of this title.
(2) All Board members shall serve for a term of three years or until a successor is appointed and shall be eligible for reappointment, provided that no member may serve more than three terms.
(3) A vacancy created before the expiration of a term shall be filled in the same manner as the original appointment for the unexpired portion of the term. A member appointed to fill a vacancy created before the expiration of a term shall not be deemed to have served a term for the purpose of subdivision (2) of this subsection.
(4) A member may be removed only for cause by the remaining members of the Commission in accordance with the Vermont Administrative Procedure Act. The Board shall adopt rules pursuant to 3 V.S.A. chapter 25 to define the basis and process for removal.
(d) Conflicts of interest.
(1) No Board member shall, during his or her term or terms on the Board, be an officer of, director of, organizer of, employee of, consultant to, or attorney for any person subject to regulation by the Board.
(2) No Board member shall participate in creating or applying any law, rule, or policy or in making any other determination if the Board member, individually or as a fiduciary, or the Board member’s spouse, parent, or child wherever residing or any other member of the Board member’s family residing in his or her household has an economic interest in the matter before the Board or has any more than a de minimus interest that could be substantially affected by the proceeding.
(3) No Board member shall, during his or her term or terms on the Board, solicit, engage in negotiations for, or otherwise discuss future employment or a future business relationship of any kind with any person subject to supervision or regulation by the Board.
(4) No Board member may appear before the Board or any other State agency on behalf of a person subject to supervision or regulation by the Board for a period of one year following his or her last day as a member of the Cannabis Control Board.
(e) Salaries. The Chair and all members of the Board shall be full-time State employees and shall be exempt from the State classified system. The Chair shall receive compensation equal to two-thirds that of a Superior Court judge, and other members shall receive compensation equal to one-half that of a Superior Court judge.
(f) Executive Director. The Board shall appoint an Executive Director who shall have prior experience in legislative or regulatory matters. The Director shall be a full-time State employee, shall be exempt from the State classified system, and shall serve at the pleasure of the Board. The Director shall be responsible for:
(1) supervising and administering the operation and implementation of this chapter and chapters 35 and 37 of this title and the rules adopted by the Board as directed by the Board;
(2) assisting the Board in its duties and administering the licensing requirements of this chapter and chapters 35 and 37 of this title;
(3) acting as Secretary to the Board, but as a nonvoting member of the Board;
(4) employing such staff as may be required to carry out the functions of the Board; and
(5) preparing an annual budget for submission to the Board.
(g) Consultant. The Board is authorized to hire a consultant as needed to assist with its duties under this section.
(h) [Repealed.] (Added 2019, No. 164 (Adj. Sess.), §§ 2, 6e(3), eff. Oct. 7, 2020; amended 2021, No. 62, § 2, eff. June 7, 2021; 2023, No. 65, § 1, eff. June 14, 2023; 2023, No. 87 (Adj. Sess.), § 100, eff. Mar. 13, 2024.)
§ 844. Authority for criminal background checks
(a) The Board shall establish a user agreement with the Vermont Crime Information Center in accordance with 20 V.S.A. chapter 117 for the purpose of obtaining Vermont criminal history records, out-of-state criminal history records, and criminal history records from the Federal Bureau of Investigation as required by chapters 33 (cannabis establishments) and 37 (medical cannabis dispensaries) of this title.
(b) A fingerprint-based state and national criminal history record check shall be conducted for each natural person prior to being issued a cannabis establishment identification card pursuant to chapter 33 (cannabis establishments) of this title or a medical cannabis dispensary identification card pursuant to chapter 37 (medical cannabis dispensaries) of this title. The Board may require that such record checks be completed as a condition precedent to license renewal. (Added 2019, No. 164 (Adj. Sess.), § 2, eff. Oct. 7, 2020; amended 2025, No. 56, § 2, eff. July 1, 2025.)
§ 845. Cannabis Regulation Fund
(a) There is established the Cannabis Regulation Fund, which shall be managed in accordance with 32 V.S.A. chapter 7, subchapter 5. The Fund shall be maintained by the Cannabis Control Board.
(b) The Fund shall be composed of:
(1) all State application fees, annual license fees, renewal fees, and civil penalties collected by the Board pursuant to chapter 31 (cannabis); chapter 33 (cannabis establishments); and chapter 37 (medical cannabis dispensaries) of this title;
(2) all annual and renewal fees collected by the Board pursuant to chapter 35 (medical cannabis registry) of this title; and
(3) [Repealed.]
(c) Monies from the Fund shall only be appropriated for the purposes of implementation, administration, and enforcement of this chapter and chapters 33, 35, and 37 of this title.
(d) [Repealed.] (Added 2019, No. 164 (Adj. Sess.), § 2, eff. Oct. 7, 2020; amended 2021, No. 185 (Adj. Sess.), § E.240.1, eff. July 1, 2023; 2021, No. 185 (Adj. Sess.), § E.240.5, eff. July 1, 2025; 2023, No. 65, § 3, eff. June 14, 2023; 2025, No. 178 (Adj. Sess.), § 19, eff. June 18, 2026.)
§ 846. Fees; authority
(a) Authority. The Board shall have the authority to charge and collect State and local license fees as provided under this chapter and chapters 33, 35, and 37 of this title. State and local license fees shall be due and payable at the time of application or renewal.
(b) Cannabis Regulation Fund. The Board shall deposit State fees collected pursuant to chapters 33, 35, and 37 of this title into the Cannabis Regulation Fund.
(c) Distribution to municipalities. After reduction for costs of administration and collection, the Board shall pay local license fees on an annual basis to the municipality for which the fees were collected. (Added 2019, No. 164 (Adj. Sess.), § 2, eff. Oct. 7, 2020; amended 2021, No. 86 (Adj. Sess.), § 1, eff. Mar. 25, 2022; 2025, No. 176 (Adj. Sess.), § 12, eff. July 1, 2026.)
§ 847. Appeals
(a)(1) A party aggrieved by a final decision of the Board may, within 30 days of the decision, appeal that decision by filing a notice of appeal with the Executive Director who shall assign the case to an appellate officer.
(2)(A) The review shall be conducted on the basis of the record created before the Board.
(B) In cases of alleged irregularities in procedure before the Board not shown in the record, proof on that issue may be taken by the appellate officer.
(b) The appellate officer shall not substitute his or her judgment for that of the Board as to the weight of the evidence on questions of fact. The appellate officer may affirm the decision or may reverse and remand the matter with recommendations if substantial rights of the appellant have been prejudiced because the Board’s finding, inferences, conclusions, or decisions are:
(1) in violation of constitutional or statutory provisions;
(2) in excess of the statutory authority of the Board;
(3) made upon unlawful procedure;
(4) affected by other error of law;
(5) clearly erroneous in view of the evidence on the record as a whole;
(6) arbitrary or capricious; or
(7) characterized by abuse of discretion or clearly unwarranted exercise of discretion.
(c) A party aggrieved by a decision of the appellate officer may appeal to the Supreme Court, which shall review the matter on the basis of the records created before the Board.
(d) The Board shall have the authority to contract for the services of an appellate officer.
(e) The Board may enforce a final administrative penalty by filing a civil collection action in any Superior Court. (Added 2019, No. 164 (Adj. Sess.), § 2, eff. Oct. 7, 2020; amended 2025, No. 176 (Adj. Sess.), § 12a, eff. July 1, 2026.)
- Subchapter 003: Hemp
§ 851. Findings; purpose
(a) Findings. The General Assembly finds that the federal legal status of most hemp products will be contingent upon an amendment to 7 U.S.C. § 1639o, to take effect in November 2026, pursuant to the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act of 2026, Pub. L. No. 119-37. The legality of hemp and hemp products in interstate commerce is unsettled and continues to evolve.
(b) Purpose. The purpose of this subchapter is to unify oversight of cannabis and hemp-derived cannabinoids under the Cannabis Control Board to more effectively prohibit illicit cannabis and cannabis product trade while positioning growers and processors of nonintoxicating hemp products to take advantage of national market opportunities that may exist. The purpose of this subchapter is also to support small-business hemp producers and processors in taking advantage of opportunities for the cultivation and sale of hemp and hemp products. (Added 2025, No. 178 (Adj. Sess.), § 16, eff. June 18, 2026.)
§ 852. Definitions
As used in this subchapter:
(1)(A) “Grow” means:
(i) planting, cultivating, harvesting, or drying of hemp; and
(ii) selling, storing, and transporting of hemp grown by a grower.
(B) “Grow” also means to produce.
(2) “Grower” means a person who is registered with the Board and the U.S. Department of Agriculture to produce hemp. “Grower” also means producer.
(3) “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 is considered an agricultural commodity.
(4)(A) “Hemp product” or “hemp-infused product” means any product with the federally defined tetrahydrocannabinol concentration level for hemp derived from, or made by, processing hemp plants or plant parts, that is 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 product” and “hemp-infused product” do not include any substance, manufacturing intermediary, or product that:
(i) is prohibited or deemed a regulated cannabis product by administrative rule of the Board; or
(ii) is not lawful in interstate commerce.
(C) A hemp-derived product or substance that is excluded from the definition of “hemp product” or “hemp-infused product” pursuant to subdivision (B) of this subdivision (4) is considered a cannabis product as defined by subdivision 831(3) of this title; provided, however, that a person duly licensed or registered by the Board lawfully may possess such products in conformity with the person’s active hemp processor license.
(5) “Process” means the storing, drying, trimming, handling, compounding, or converting of hemp by a processor for a single grower or multiple growers into hemp products or hemp-infused products. “Process” includes:
(A) transporting, aggregating, or packaging hemp from a single grower or multiple growers; or
(B) manufacturing hemp products or hemp-infused products from hemp concentrate.
(6) “Processor” means a person who is licensed by the Board to process hemp. A retail establishment selling hemp products or hemp-infused products is not a processor. (Added 2025, No. 178 (Adj. Sess.), § 16, eff. June 18, 2026.)
§ 853. 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 administrative rules of the Cannabis Control Board.
(b) The cultivation of hemp shall be subject to and comply with the Required Agricultural Practices adopted under 6 V.S.A. § 4810, as amended. (Added 2025, No. 178 (Adj. Sess.), § 16, eff. June 18, 2026.)
§ 854. Hemp registration and licensure
(a) Producers. All persons engaged in the production of hemp shall register with the Board as growers and shall provide their location, the nature of their activities, and evidence that those activities conform to the requirements of federal law and regulation. A person shall apply for registration or renewal of registration on a form provided by the Board. The application shall be accompanied by the fee required under section 858 of this subchapter.
(b) Processors. All persons engaged in the processing of hemp, including trade in hemp-derived cannabinoids and process intermediaries, shall be licensed by the Board. A person shall apply for a license or renewal of a license on a form provided by the Board. The application shall be accompanied by the fee required under section 858 of this subchapter.
(c) Products. All hemp-derived products containing or reasonably expected to contain more than 0.4 mg tetrahydrocannabinol shall be registered with the Board prior to sale to any person within this State. A person shall apply for registration or renewal of registration on a form provided by the Board. The application shall be accompanied by the fee required under section 858 of this subchapter.
(d) All applicants. The Board may deny an application for licensure, registration, or renewal if the applicant:
(1) fails to establish that its activities comply with State and federal law;
(2) refuses the Board or its lawful designees entry upon its premises to inspect and confirm compliance, including by sampling hemp and hemp products for potency testing;
(3) fails to submit information requested by the Board; or
(4) fails to submit the fee required under section 858 of this subchapter. (Added 2025, No. 178 (Adj. Sess.), § 16, eff. June 18, 2026.)
§ 855. Rulemaking authority
(a) The Board may adopt rules to provide for the implementation of this subchapter, 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, processing, and distribution;
(4) require labels or label information for hemp products in order to provide consumers with transparent and accurate product content or source information, to be free of false or misleading claims and claims contrary to the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. §§ 301–399i, or to conform with federal requirements;
(5) establish sanitary requirements for licensed processing facilities;
(6) establish registration requirements for hemp-derived products sold or distributed in the State, including requirements that each product be sampled and tested by a laboratory recognized by the Board;
(7) require disclosure or labeling of the amount of cannabinoids known to be present in hemp products sold or distributed in the State;
(8) require that licensees and registrants, including out-of-state purveyors of registered hemp products, obtain and maintain commercially reasonable insurance, which for producers of consumer products in final form shall include product liability insurance;
(9) prohibit hazardous additives to hemp products, or specify additive limits, relative to substances that are toxic, not generally recognized as safe, or designed to make the product more addictive or more appealing to persons under 21 years of age or to mislead consumers;
(10) specify when a registered hemp product that contains more than 0.4 mg tetrahydrocannabinol must be restricted for sale to persons 21 years of age or older or restricted for sale in specified settings, or both;
(11) define “craft processors” as a class of small businesses with different needs and risks and exempt craft processor licensees from the requirements of this subchapter that the Board finds to be unnecessary to protect the public health, safety, and welfare;
[Subdivision (a)(12) repealed effective January 1, 2028.] (12) waive or reduce licensing fees for craft processor applicants pursuant to rule or readily accessible policy;
(13) exempt certain product categories from the requirement to register under this chapter;
(14) establish requirements for the consumer sale of any product containing tetrahydrocannabinol or other cannabinoids; or
(15) prohibit any person from making false, misleading, or unsubstantiated claims for cannabinoid-containing products.
(b) The Board shall adopt rules to:
(1) establish requirements for the licensure of processors of hemp, hemp-derived process intermediaries, and hemp products; and
(2) regulate the use of processing facilities and equipment to permit processors to use the same equipment for hemp and cannabis processing and to prevent cross contamination between hemp and cannabis. (Added 2025, No. 178 (Adj. Sess.), § 16, eff. June 18, 2026; amended 2025, No. 178 (Adj. Sess.), § 16b, eff. June 18, 2026 and January 1, 2028.)
§ 856. Test results; enforcement
(a) When notified that hemp, a hemp product, or a hemp-infused product has a tetrahydrocannabinol concentration exceeding the applicable federally defined tetrahydrocannabinol concentration level of hemp, the person licensed or registered with the Board to grow or process the hemp shall arrange for disposal, remediation, or destruction of the hemp, hemp product, or hemp-infused product in a manner consistent with applicable State and federal law.
(b) To enforce the provisions of this subchapter, the Board, 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, all hemp during any growth phase, or any hemp product or hemp-infused product during processing or storage. Inspection under this section may include taking samples, inspecting records, and inspecting equipment or vehicles used to grow, process, or transport hemp, hemp products, or hemp-infused products.
(2) Inspect any retail location offering hemp products or hemp-infused products. Inspection under this section may include taking samples of such products.
(3) Issue and enforce a written or printed “stop sale” order to the owner or custodian of any hemp, hemp product, or hemp-infused product subject to the requirements of this subchapter or rules adopted under this subchapter that the Board finds is in violation of any of the provisions of this subchapter or rules adopted under this subchapter. An order may prohibit further sale, processing, and movement of the hemp, hemp product, or hemp-infused product until the Board has approved and issued a release from the “stop sale” order.
(A) This order shall include the reason for issuance, a description of the hemp or hemp products at issue, instructions to separate all hemp or hemp 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 Board within 15 days after receipt. The person shall file any appeal by serving a letter on the Board, which shall state all grounds for the appeal and identify the hemp or hemp products affected by the appeal. (Added 2025, No. 178 (Adj. Sess.), § 16, eff. June 18, 2026.)
§ 857. Administrative penalties
(a) The Board may assess violations and administrative penalties against persons licensed or registered pursuant to this subchapter, as well as persons required to be licensed or registered pursuant to this subchapter who fail to obtain or maintain required credentials.
(b) The compliance and enforcement authorities and procedures applicable to cannabis establishments shall apply to persons licensed or registered under this subchapter.
(c) The Board may enforce a final administrative penalty by filing a civil collection action in any Superior Court. (Added 2025, No. 158 (Adj. Sess.), § 16, eff. June 18, 2026.)
§ 858. Fees
(a) The following fees shall apply to each license or registration application or each annual license or registration renewal under this subchapter:
(1) Producer: $50.00.
(2) Processor: $500.00.
(3) Product: $75.00.
(b) Notwithstanding subsection (a) of this section, the Board may issue longer registrations, prorated at the same cost per year, for products it deems low-risk and shelf-stable. The products may be defined and distinguished in readily accessible published guidance. (Added 2025, No. 178 (Adj. Sess.), § 16, eff. June 18, 2026.)