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Title 7: Alcoholic Beverages, Cannabis, and Tobacco

Chapter 033: CANNABIS ESTABLISHMENTS

  • Subchapter 001: General Provisions
  • § 861. Definitions

    As used in this chapter:

    (1) "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.

    (2) "Applicant" means a person that applies for a license to operate a cannabis establishment pursuant to this chapter.

    (3) "Board" means the Cannabis Control Board.

    (4) "Cannabis" shall have the same meaning as provided in section 831 of this title.

    (5) "Cannabis cultivator" or "cultivator" means a person licensed by the Board to engage in the cultivation of cannabis in accordance with this chapter.

    (6) "Cannabis establishment" means a cannabis cultivator, wholesaler, product manufacturer, retailer, or testing laboratory licensed by the Board to engage in commercial cannabis activity in accordance with this chapter.

    (7) "Cannabis product" shall have the same meaning as provided in section 831 of this title.

    (8) "Cannabis product manufacturer" or "product manufacturer" means a person licensed by the Board to manufacture cannabis products in accordance with this chapter.

    (9) "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 in accordance with this chapter.

    (10) "Cannabis testing laboratory" or "testing laboratory" means a person licensed by the Board to test cannabis and cannabis products in accordance with this chapter.

    (11) "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.

    (12) "Chair" means the Chair of the Cannabis Control Board.

    (13) "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.

    (14) "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 normal 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.

    (15) "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.

    (16) "Dispensary" means a business organization licensed pursuant to chapter 37 of this title or 18 V.S.A. chapter 86.

    (17) "Enclosed, locked facility" means a building, room, greenhouse, outdoor fenced-in area, or other location that is enclosed on all sides and prevents cannabis from easily being viewed by the public. The facility shall be equipped with locks or other security devices that permit access only by:

    (A) Employees, agents, or owners of the cultivator, all of whom shall be 21 years of age or older.

    (B) Government employees performing their official duties.

    (C) Contractors performing labor that does not include cannabis cultivation, packaging, or processing. Contractors shall be accompanied by an employee, agent, or owner of the cultivator when they are in areas where cannabis is being grown, processed, packaged, or stored.

    (D) Registered employees of other cultivators, members of the media, elected officials, and other individuals 21 years of age or older visiting the facility, provided they are accompanied by an employee, agent, or owner of the cultivator.

    (18) "Flavored oil cannabis product" means any oil cannabis product that contains an additive to give it a characterizing flavor.

    (19) "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.

    (20) "Municipality" means a town, city, or incorporated village.

    (21) "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.

    (22) "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.

    (23) "Principal" means an individual vested with the authority to conduct, manage, or supervise the business affairs of a person, and may include the president, vice president, secretary, treasurer, manager, or similar executive officer of a business; a director of a corporation, nonprofit corporation, or mutual benefit enterprise; a member of a nonprofit corporation, cooperative, or member-managed limited liability company; and a partner of a partnership.

    (24) "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. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)

  • § 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.)

  • § 863. Regulation by local government

    (a)(1) Prior to a cannabis retailer or 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. 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 ordinances regulating signs or public nuisances adopted pursuant to 24 V.S.A. § 2291. 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.

    (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;

    (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; and

    (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.)

  • § 864. [Reserved for future use.]

  • § 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. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)

  • § 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) solid concentrate cannabis products with greater than 60 percent tetrahydrocannabinol;

    (3) oil cannabis products except for those that are sold prepackaged for use with battery-powered devices;

    (4) 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;

    (5) cannabis products that contain delta-9 tetrahydrocannabinol and nicotine or alcoholic beverages; and

    (6) 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. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)

  • § 869. Cultivation of cannabis; environmental and land use standards

    (a)(1) 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 or agricultural crop for the purposes of 32 V.S.A. chapter 124, 32 V.S.A. § 9741, or other relevant State law.

    (2) Notwithstanding subdivision (1) of this subsection, the cultivation of cannabis on agricultural land and the use of farm buildings to dry or process that cannabis shall not disqualify the land or buildings from the use value appraisal program or constitute "development" under 32 V.S.A. § 3752(5), provided that:

    (A) the agricultural land or farm building is enrolled in the use value appraisal program at the time cannabis cultivation commences;

    (B) the agricultural land or farm building is not transferred to another owner;

    (C) the cultivation, drying, or processing of cannabis is done by a licensed small cultivator on 1,000 square feet or less of agricultural land; and

    (D) all other requirements under 32 V.S.A. chapter 124 continue to be met.

    (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.

    (d)(1) The cultivation, processing, and manufacturing of cannabis regulated under this chapter shall comply with the following sections of the Required Agricultural Practices:

    (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. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)


  • Subchapter 002: Administration
  • § 881. Rulemaking; cannabis establishments

    (a) The Board shall adopt rules to implement and administer this chapter in accordance with subdivisions (1)-(7) 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 those 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 is necessary to protect the public health, safety, and general welfare; and

    (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.

    (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 50 milligrams of THC, except in the case of:

    (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 regulations issued 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 regulations issued 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 and displayed separately from cannabis and cannabis products;

    (D) requirements for opaque, child-resistant packaging of cannabis and cannabis products at point of sale to customer; and

    (E) facility inspection requirements and procedures.

    (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.

    (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.)

  • § 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 license applicant's fingerprint-based Vermont criminal history records, out-of-state criminal history records, and criminal history records from the Federal Bureau of Investigation.

    (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. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)

  • § 884. Cannabis establishment identification card

    (a) Every owner, principal, and employee of a cannabis establishment shall obtain an identification card issued by the Board.

    (b)(1) Prior to issuing the identification card, 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.

    (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 upon the expiration of the cannabis establishment's license, whichever occurs first. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)


  • 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 909 of this title.

    (d)(1) There shall be six types of licenses available:

    (A) a cultivator license;

    (B) a wholesaler license;

    (C) a product manufacturer license;

    (D) a retailer license;

    (E) a testing laboratory license; and

    (F) 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 subdivision (B) 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)-(E) of this subsection (d). Each license shall permit only one location of the establishment.

    (B) An applicant and its affiliates that are a dispensary registered pursuant to 18 V.S.A. chapter 86 may obtain one integrated license provided in subdivision (1)(F) of this subsection (d) or a maximum of one of each type of license provided in subdivisions (1)(A)-(E) of this subsection (d). An integrated licensee may not hold a separate cultivator, wholesaler, product manufacturer, retailer, or testing laboratory license. An integrated license shall permit only one location for each of the types of activities permitted by the license: cultivation, wholesale operations, product manufacturing, retail sales, and testing.

    (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)(1) The following records shall be exempt from public inspection and copying under the Public Records Act and shall be confidential:

    (A) any record in an application for a license relating to security, public safety, transportation, or trade secrets, including information provided in an operating plan pursuant to subdivision 881(a)(1)(B) of this title; and

    (B) any licensee record relating to security, public safety, transportation, trade secrets, or employees.

    (2) Notwithstanding 1 V.S.A. § 317(e), the Public Records Act exemption created in this subsection shall continue in effect and shall not be repealed through operation of 1 V.S.A. § 317(e). (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)

  • § 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) No later than 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.)

  • § 904. Cultivator license

    (a) A cultivator licensed under this chapter may cultivate, process, package, label, transport, test, and sell cannabis to a licensed wholesaler, product manufacturer, retailer, integrated licensee, and dispensary.

    (b) Cultivation of cannabis shall occur only in an enclosed, locked facility.

    (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.)

  • § 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.)

  • § 905. Wholesaler license

    A wholesaler licensed under this chapter may:

    (1) purchase cannabis from a licensed cultivator and integrated licensee, and cannabis products from a licensed product manufacturer, integrated licensee, and dispensary; and

    (2) transport, process, package, and sell cannabis and cannabis products to a licensed product manufacturer, retailer, integrated licensee, and dispensary. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)

  • § 906. Product manufacturer license

    A product manufacturer licensed under this chapter may:

    (1) purchase cannabis from a licensed cultivator, wholesalers, or integrated licensee, and cannabis products from a licensed wholesaler, product manufacturer, integrated licensee, and dispensary;

    (2) use cannabis and cannabis products to produce cannabis products; and

    (3) transport, process, package, and sell cannabis products to a licensed wholesaler, product manufacturer, retailer, integrated licensee, and dispensary. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)

  • § 907. Retailer license

    (a) A retailer licensed under this chapter may:

    (1) purchase cannabis from a licensed cultivator, wholesaler, or integrated licensee, and cannabis products from a licensed wholesaler, product manufacturer, integrated licensee, and dispensary; and

    (2) transport, possess, and sell cannabis and cannabis products to the public for consumption off the registered premises.

    (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) Internet ordering and delivery of cannabis to customers are prohibited. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)

  • § 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 no 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. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020.)