7 V.S.A. § 881 Rulemaking; cannabis establishments
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 or 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, 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) [Repealed.]
(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;
(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; 2025, No. 176 (Adj. Sess.), § 16, eff. July 1, 2026.