§ 881. Rulemaking; cannabis establishments
(a) The Board shall adopt rules to implement and administer this chapter in accordance
with subdivisions (1)-(8) of this subsection.
(1) Rules concerning any cannabis establishment shall include:
(A) the form and content of license and renewal applications;
(B) qualifications for licensure that are directly and demonstrably related to the operation
of a cannabis establishment, including:
(i) a requirement to submit an operating plan, which shall include information concerning:
(I) the type of business organization, the identity of its controlling owners and principals,
and the identity of the controlling owners and principals of its affiliates; and
(II) the sources, amount, and nature of its capital, assets, and financing; the identity
of its financiers; and the identity of the controlling owners and principals of its
financiers;
(ii) a requirement to file an amendment to its operating plan in the event of a significant
change in organization, operation, or financing; and
(iii) the requirement for a fingerprint-based criminal history record check and regulatory
record check pursuant to section 883 of this title;
(C) oversight requirements, including provisions to ensure that a licensed establishment
complies with State and federal regulatory requirements governing insurance, securities,
workers’ compensation, unemployment insurance, and occupational health and safety;
(D) inspection requirements;
(E) records to be kept by licensees and the required availability of the records;
(F) employment and training requirements;
(G) security requirements, including any appropriate lighting, physical security, video,
and alarm requirements;
(H) health and safety requirements;
(I) regulation of additives to cannabis and cannabis products, including cannabidiol derived
from hemp and substances that are toxic or designed to make the product more addictive,
more appealing to persons under 21 years of age, or to mislead consumers;
(J) procedures for seed-to-sale traceability of cannabis, including any requirements for
tracking software;
(K) regulation of the storage and transportation of cannabis;
(L) sanitary requirements;
(M) procedures for the renewal of a license, which shall allow renewal applications to
be submitted up to 90 days prior to the expiration of the cannabis establishment’s
license;
(N) procedures for suspension and revocation of a license;
(O) requirements for banking and financial transactions, including provisions to ensure
that the Board, the Department of Financial Regulation, and financial institutions
have access to relevant information concerning licensed establishments to comply with
State and federal regulatory requirements;
(P) disclosure or eligibility requirements for a financier, its owners and principals,
and its affiliates, which may include:
(i) requirements to disclose information to a licensed establishment, the Board, or the
Department of Financial Regulation;
(ii) a minimum age requirement and a requirement to conduct a background check for natural
persons;
(iii) requirements to ensure that a financier complies with applicable State and federal
laws governing financial institutions, licensed lenders, and other financial service
providers; and
(iv) any other requirements, conditions, or limitations on the type or amount of loans
or capital investments made by a financier or its affiliates, which the Board, in
consultation with the Department of Financial Regulation, determines are necessary
to protect the public health, safety, and general welfare;
(Q) policies and procedures for conducting outreach and promoting participation in the
regulated cannabis market by diverse groups of individuals, including those who have
been disproportionately harmed by cannabis prohibition;
(R) advertising and marketing; and
(S) requirements for cannabis control testing of hemp, hemp-infused products, cannabis,
and cannabis products.
(2)(A) Rules concerning cultivators shall include:
(i) creation of a tiered system of licensing based on the plant canopy size of the cultivation
operation or plant count for breeding stock;
(ii) pesticides or classes of pesticides that may be used by cultivators, provided that
any rules adopted under this subdivision shall comply with and shall be at least as
stringent as the Agency of Agriculture, Food and Markets’ Vermont Pesticide Control
Regulations;
(iii) standards for indoor cultivation of cannabis;
(iv) procedures and standards for testing cannabis for contaminants, potency, and quality
assurance and control;
(v) labeling requirements for cannabis sold to retailers and integrated licensees, including
health warnings developed in consultation with the Department of Health;
(vi) regulation of visits to the establishments, including the number of visitors allowed
at any one time and record keeping concerning visitors;
(vii) facility inspection requirements and procedures; and
(viii) performance standards that would allow the Board to relegate a cultivator into a lower
tier or expand into a tier that may not be otherwise available to new applicants.
(B) The Board shall consider the different needs and risks of small cultivators when adopting
rules and shall make an exception or accommodation to such rules for cultivators of
this size where appropriate.
(3) Rules concerning product manufacturers shall include:
(A) requirements that a single package of a cannabis product shall not contain more than
100 milligrams of THC, except in the case of:
(i) cannabis products that are not consumable, including topical preparations;
(ii) solid concentrates, oils, and tinctures; and
(iii) cannabis products sold to a dispensary pursuant to 18 V.S.A. chapter 86 and rules adopted pursuant to that chapter;
(B) requirements that cannabis products are labeled in a manner that states the number
of servings of tetrahydrocannabinol in the product, measured in servings of a maximum
of five milligrams per serving, except:
(i) cannabis products that are not consumable, including topical preparations; and
(ii) cannabis products sold to a dispensary pursuant to 18 V.S.A. chapter 86 and rules adopted pursuant to that chapter;
(C) requirements that cannabis products are labeled with the date the product was manufactured,
the date the product is best used by, the ingredients contained in the product, information
on the length of time it typically takes for products to take effect, and appropriate
warnings developed by the Board in consultation with the Department of Health;
(D) requirements that a cannabis product is clearly identifiable with a standard symbol
adopted by the Board indicating that it contains cannabis;
(E) procedures and standards for testing cannabis products for contaminants, potency,
and quality assurance and control; and
(F) requirements for opaque, child-resistant packaging.
(4) Rules concerning wholesalers shall include any provisions the Board has not addressed
in subdivision (1) of this subsection that are appropriate for safe regulation of
wholesalers in accordance with this chapter.
(5) Rules concerning retailers shall include:
(A) requirements for proper verification of age of customers;
(B) restrictions that cannabis shall be stored behind a counter or other barrier to ensure
a customer does not have direct access to the cannabis;
(C) requirements that if the retailer sells hemp or hemp products, the hemp and hemp products
are clearly labeled as such;
(D) requirements for opaque, child-resistant packaging of cannabis products and child-deterrent
packaging for cannabis at point of sale to customer;
(E) requirements and procedures for facility inspection to occur at least annually;
(F) location or siting requirements that increase the geographic distribution of new cannabis
retail establishments based on population and market needs; and
(G) requirements for a medical-use endorsement, including rules regarding:
(i) protection of patient privacy and confidential records;
(ii) enhanced training and educational requirements for employees who interact with patients;
(iii) segregation of cannabis products that are otherwise prohibited for sale to nonmedical
customers pursuant to subdivisions 868(a)(1) and (b)(1) of this title;
(iv) record-keeping;
(v) delivery;
(vi) access for patients under 21 years of age; and
(vii) health and safety requirements.
(6) Rules concerning testing laboratories shall include:
(A) procedures and standards for testing cannabis and cannabis products for contaminants,
potency, and quality assurance and control;
(B) reporting requirements, including requirements for chain-of-custody record keeping;
and
(C) procedures for destruction of all cannabis and cannabis products samples.
(7) Rules concerning integrated licensees shall include the provisions provided in subdivisions
(1)-(6) of this subsection and any additional provisions the Board deems appropriate
for safe regulation of integrated licensees in accordance with this chapter.
(8) Rules concerning propagators shall include:
(A) requirements for proper verification of age of customers;
(B) pesticides or classes of pesticides that may be used by propagators, provided that
any rules adopted under this subdivision (8) shall comply with and shall be at least
as stringent as the Agency of Agriculture, Food and Markets’ Vermont Pesticide Control
Regulations;
(C) standards for indoor cultivation of cannabis;
(D) procedures and standards for testing cannabis for contaminants, potency, and quality
assurance and control;
(E) labeling requirements for cannabis sold to retailers and integrated licensees;
(F) regulation of visits to the establishments, including the number of visitors allowed
at any one time and record keeping concerning visitors; and
(G) facility inspection requirements and procedures.
(b) The Board shall consult with other State agencies and departments as necessary in
the development and adoption of rules where there is shared expertise and duties. (Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 62, § 8, eff. June 7, 2021; 2021, No. 105 (Adj. Sess.), § 153, eff. July 1, 2022; 2021, No. 158 (Adj. Sess.), §§ 3, 12, eff. May 31, 2022; 2023, No. 65, § 7, eff. June 14, 2023; 2023, No. 166 (Adj. Sess.), § 4, eff. June 10, 2024.)