H 321 — An act relating to miscellaneous cannabis amendments

7 V.S.A.

§ 883 is amended to read:

§ 883.

CRIMINAL BACKGROUND RECORD CHECKS;

APPLICANTS (a) The Board shall obtain from the Vermont Crime Information Center a copy of a fingerprint-based Vermont criminal history records, out-of-state criminal history records, and criminal history records from the Federal Bureau of Investigation for each license applicant, principal of an applicant, and BILL AS PASSED BY THE HOUSE H.321 Page 9 of 43 person who controls an applicant who is a natural person.

Checks may be repeated for good cause or with prudent frequency as determined by the Board.

(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 the applicant’s 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) Notwithstanding subsection (a) of this section or subsection 844(b) of this title, if required records are not reasonably available to the Board due to circumstances beyond its control, with the consent of the applicant, the Board may accept third-party criminal background checks submitted by an applicant for a cannabis establishment license or renewal in lieu of obtaining the records 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 from a reputable commercial provider.

Any such third-party background check shall:

(1) be conducted by a third-party consumer reporting agency or background screening company that is in compliance with the federal Fair Credit Reporting Act;

and BILL AS PASSED BY THE HOUSE H.321 Page 10 of 43 (2) include a multistate and multi-jurisdiction criminal record locator.

Consumer credit scores shall not be a basis for license denial.

Sec.

6.

7 V.S.A.

§ 884 is amended to read:

§ 884.

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

A person may apply for an identification card prior to obtaining employment with a licensee.

An employee identification card shall authorize the person to work for any licensee.

(b)(1)(A) Prior to issuing the identification card to an owner or principal of a cannabis establishment, 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.

(B) Prior to issuing the identification card to an employee of a cannabis establishment, the Board shall obtain a copy of a fingerprint-based identity history summary record 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 the person’s criminal history record based on factors that demonstrate whether the applicant presently poses a threat to public safety or BILL AS PASSED BY THE HOUSE H.321 Page 11 of 43 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 the Board, for good cause, may serve issue a temporary permit authorizing the applicant to 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 Good cause exists if, among other reasons, the application is reasonably expected to take more than 12 days to process.

(d) An identification card shall expire one year after its issuance or, in the case of owners and principals, upon the expiration of the cannabis establishment’s license, whichever occurs first.

Sec.

7.

7 V.S.A.

§ 886 is added to read:

§ 886.

RECEIVERSHIP;

SPECIAL PERMITTING;

IMMUNITY (a) When a cannabis establishment becomes distressed, it may abruptly lose authority or ability to possess commercial quantities of cannabis.

It is the purpose of this section to empower the Civil Division of the Superior Court and the Board to oversee the orderly unwinding of cannabis establishments, BILL AS PASSED BY THE HOUSE H.321 Page 12 of 43 including lawful disposition of inventory in lieu of forfeiture, in case of functional distress or interruption in active licensure.

(b)(1) An individual may be appointed as receiver, representative, executor, administrator, guardian, conservator, trustee, or assignee, to temporarily operate a cannabis establishment on the licensed premises for a period of time determined by the Board in cases of death, disability, bankruptcy, insolvency, receivership, assignment for the benefit of creditors, shareholder or LLC member disputes, license interruption, or other exceptional circumstances rendering one or more owners incapable of performing, or ineligible to perform, the duties of a licensee.

Such appointee shall be at least 21 years of age.

(2)(A) Such appointee shall not be permitted to conduct licensed activities without the express authorization of the Board, which may be granted upon submission and approval of a written request for the authority to temporarily conduct licensed activities.

The written request shall include information or disclosures required by the Board, including:

(i) name;

(ii) valid identification;

(iii) phone number;

(iv) mailing address;

(v) email address;

BILL AS PASSED BY THE HOUSE H.321 Page 13 of 43 (vi) Social Security number;

(vii) the name of the person on whose behalf the appointee is appointed;

(viii) proof that such appointee is the legal receiver, representative, executor, administrator, guardian, conservator, trustee, or assignee, and;

(ix) any direct or indirect interests held by that appointee in a cannabis license, registration or permit.

(B) The Board may adopt rules governing appointment and the process and qualifications.

(3) Authorization to conduct licensed activities by the appointee is conditioned on compliance with these regulations, including restrictions on ownership and other interests, approval by the Board, and the authorization shall not constitute a guarantee of license issuance or renewal by the Board.

(4) Any licensee or person who files, or against whom is filed, any action or proceeding, or who seeks an appointment, as set forth in subdivision (1) of this subsection, is required to serve the Board with original notice of the action or proceeding and provide the Board with opportunity to be heard regarding the appointment.

Such notice shall be provided to employees upon commencement of such proceeding for a receivership.

A licensee surrendering BILL AS PASSED BY THE HOUSE H.321 Page 14 of 43 its license shall provide its employees any lawfully required warnings of closures and layoffs.

(c) When no licensed custodian can be found to take custody of or transport cannabis or cannabis products, the Board, in its sole discretion, may issue a special permit temporarily authorizing an unlicensed designee of suitable ability and judgment to possess, transport, or dispose of cannabis and cannabis products as specified by the terms of the permit.

The permit shall be printed on official Board letterhead, bear the signature of the Chair of the Board, state clearly a means of prompt authentication by law enforcement and licensees, and specify start and end dates and times.

(d) A person acting as a duly appointed receiver or in conformity with the terms of a special Board permit issued pursuant to subsection (c) of this section shall be immune from civil and criminal liability in relation to possession, transportation, or transfer of cannabis within the borders of this State.

The Board shall not be liable for economic losses resulting from forfeiture, seizure, sequestration, sale stoppage, transportation, storage, or destruction of cannabis or cannabis products.

Sec.

8.

7 V.S.A.

§ 901 is amended to read:

§ 901.

GENERAL PROVISIONS BILL AS PASSED BY THE HOUSE H.321 Page 15 of 43 (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 910 of this title.

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

(A) a cultivator license;

(B) a propagator license;

(C) a wholesaler license;

(D) a product manufacturer license;

(E) a retailer license;

(F) a testing laboratory license;

and (G) a trim and harvest service license;

and (H) 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 BILL AS PASSED BY THE HOUSE H.321 Page 16 of 43 (ii) retailer licenses.

(B) The Board may develop tiers for other types of licenses.

(3)(A) Except as provided in subdivisions (B) and (C) 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)–(F)(G) of this subsection (d).

Each license shall permit only one location of the establishment, however a trim and harvest service licensee may provide services at multiple other licensed cannabis establishments.

(B) An applicant and its affiliates that control a dispensary registered on April 1, 2022 may obtain one integrated license provided in subdivision (1)(G)(H) of this subsection (d) or a maximum of one of each type of license provided in subdivisions (1)(A)–(F) of this subsection (d).

An integrated licensee may not hold a separate cultivator, propagator, wholesaler, product manufacturer, retailer, or testing laboratory license, and no applicant or its affiliates that control a dispensary shall hold more than one integrated license.

An integrated license shall permit only one location for each of the types of activities permitted by the license:

cultivation, propagator, wholesale operations, product manufacturing, retail sales, and testing.

(C) An applicant and its affiliates may obtain multiple testing laboratory licenses.

BILL AS PASSED BY THE HOUSE H.321 Page 17 of 43 (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) [Repealed.] Sec.

9.

7 V.S.A.

§ 904 is amended to read:

§ 904.

CULTIVATOR LICENSE * * * (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.

BILL AS PASSED BY THE HOUSE H.321 Page 18 of 43 (D) A “produced on” date reflecting the date that the cultivator finished producing the cannabis “harvested on” date reflecting the date the cultivator harvested the cannabis and a “packed on” date reflecting the date the product was packaged for sale.

(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.

* * * Sec.

10.

7 V.S.A.

§ 904b is amended to read:

§ 904b.

PROPAGATION CULTIVATOR LICENSE (a) A propagation cultivator licensed under this section may:

(1) cultivate not more than 3,500 square feet of cannabis clones, immature cannabis plants, or mature cannabis plants;

(2) test, transport, and sell cannabis clones and immature cannabis plants to licensed cultivators and retailers;

and (3) test, transport, and sell cannabis seeds that meet the federal definition of hemp to a licensed cultivator or retailer or to the public.

BILL AS PASSED BY THE HOUSE H.321 Page 19 of 43 (b) A licensed propagation cultivator shall not cultivate mature cannabis plants for the purpose of producing, harvesting, transferring, or selling cannabis flower for or to any person.

Sec.

11.

7 V.S.A.

§ 904c is added to read:

§ 904c.

TRIM AND HARVEST SERVICE LICENSE A trim and harvest service licensed under this section may contract with cultivators licensed under section 904 or 904a of this chapter, on a seasonal or temporary basis, to supply specified cannabis maintenance services within the scope of each client-cultivator’s license.

Sec.

12.

7 V.S.A.

§ 910 is amended to read:

§ 910.

CANNABIS ESTABLISHMENT FEE SCHEDULE The following fees shall apply to each person or product licensed by the Board:

* * * (8) Trim and harvest services.

Trim and harvest services shall be assessed an annual licensing fee of $500.00.

(9) Employees.

Cannabis establishments licensed by the Board shall be assessed an annual a biennial licensing fee of $50.00 for each employee.

(9)(10) Products.

Cannabis establishments licensed by the Board shall be assessed an annual a biennial product licensing fee of $50.00 for every type of cannabis and cannabis product that is sold in accordance with this chapter.

BILL AS PASSED BY THE HOUSE H.321 Page 20 of 43 The Board may issue longer product registrations, prorated at the same cost per year, for products it deems low risk and shelf stable.

Such products may be defined and distinguished in readily accessible published guidance.

(10)(11) Local licensing fees.

Cannabis establishments licensed by the Board shall be assessed an annual local licensing fee of $100.00 in addition to each fee assessed under subdivisions (1)–(7) of this section.

Local licensing fees shall be distributed to the municipality in which the cannabis establishment is located pursuant to section 846(c) of this title.

(11)(12) One-time fees Application fee.

(A) All applicants for a cannabis establishment license shall be assessed an initial one-time application fee of $1,000.00.

(B) An applicant may choose to be assessed an initial one-time intent- to-apply fee of $500.00.

If the applicant subsequently seeks a license within one year after paying the intent-to-apply fee, the initial one-time application fee of $1,000.00 shall be reduced by $500.00.

Sec.

13.

32 V.S.A.

§ 3260 is amended to read:

§ 3260.

BULK SALES (a) Whenever a person (transferor) required to collect or withhold a trust tax pursuant to chapter 151, 207, 225, or 233 of this title shall make any sale, transfer, long-term lease, or assignment (transfer) in bulk of any part or the whole of the assets of a business, otherwise than in the ordinary course of the BILL AS PASSED BY THE HOUSE H.321 Page 21 of 43 business, the purchaser, transferee or assignee (transferee) shall, at least 10 days before taking possession of the subject of the transfer or before payment therefore if earlier, notify the Commissioner in writing of the proposed sale and of the price, terms, and conditions thereof whether or not the transferor has represented to or informed the transferee that the transferor owes any trust tax pursuant to chapter 151, 207, 225, or 233 and whether or not the transferee has knowledge that such taxes are owed, and whether any taxes are in fact owed.

(b) Whenever the transferee shall fail to give notice to the Commissioner as required by subsection (a) of this section, or whenever the Commissioner shall inform the transferee that a possible claim for tax exists, any sums of money, property, or choses in action, or other consideration, which the transferee is required to transfer over to or for the transferor, shall be subject to a first priority right and lien for any taxes theretofore or thereafter determined to be due from the transferor to the State, and the transferee is forbidden to transfer the consideration to or for the transferor to the extent of the amount of the State’s claim.

(c) For failure to comply with this section, the transferee shall be personally liable for the payment to the State of any taxes theretofore or thereafter determined to be due to the State from the transferor and the liability BILL AS PASSED BY THE HOUSE H.321 Page 22 of 43 may be assessed and enforced in the same manner as the liability for tax under chapter 151, 207, 225, or 233.

Sec.

14.

2022 Acts and Resolves No.

185, Secs E.240.5 and E.240.6 are amended to read:

Sec.

E.240.5.  [Deleted.] Sec.

E.240.6.  [Deleted.] Sec.

15.

2022 Acts and Resolves No.

185, Sec.

H.100 is amended to read:

Sec.

H.100.  EFFECTIVE DATES * * * (b)  [Deleted.] * * * Sec.

16.

ISSUANCE OF RETAILER LICENSES Notwithstanding any other provision of law, the Cannabis Control Board shall not issue any new retailer licenses until July 1, 2027, provided that:

(1) annual renewals of retailer licenses that were originally issued prior to February 1, 2025 may be issued;

(2) amendments to and early renewals of retailer licenses that were originally issued prior to February 1, 2025 may be issued in the case of changes in location of the licensed retailer where the proposed new location would be permissible as a new licensed location pursuant to rules adopted by the Board under 7 V.S.A.

§ 881(a)(5)(F);

BILL AS PASSED BY THE HOUSE H.321 Page 23 of 43 (3) amendments to and early renewals of retailer licenses that were originally issued prior to February 1, 2025 may be issued in the case of changes in control of the licensed retailer;

and (4) the Board may issue new retailer licenses prior to July 1, 2027 if, at the time of such issuance, the number of licensed retailers is fewer than the number of 80 locations.

Sec.

17.

CANNABIS CONTROL BOARD;

ENFORCEMENT ATTORNEY;

POSITION One full-time, permanent, exempt position of Enforcement Attorney is authorized in the Cannabis Control Board in fiscal year 2025.

Sec.

18.

EFFECTIVE DATE This act shall take effect on passage.

Sec.

1.

7 V.S.A.

§ 832 is amended to read:

§ 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.

Sec.

2.

7 V.S.A.

§ 844 is amended to read:

§ 844.

AUTHORITY FOR CRIMINAL BACKGROUND CHECKS BILL AS PASSED BY THE HOUSE H.321 Page 24 of 43 (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.

Sec.

3.

7 V.S.A.

§ 861(23) is amended to read:

(23)(A) “Hemp products” or “hemp-infused products” means all products with the federally defined tetrahydrocannabinol concentration level for hemp derived from, or made by, processing hemp plants or plant parts that are prepared in a form available for commercial sale, including cosmetics, personal care products, food intended for animal or human consumption, cloth, cordage, fiber, fuel, paint, paper, construction materials, plastics, and BILL AS PASSED BY THE HOUSE H.321 Page 25 of 43 any product containing one or more hemp-derived cannabinoids, such as cannabidiol.

(B) Notwithstanding subdivision (A) of this subdivision (23), “hemp products” and “hemp-infused products” do not include any substance, manufacturing intermediary, or product that:

(i) is prohibited or deemed a regulated cannabis product by administrative rule of the Cannabis Control Board;

or (ii) contains more than 0.3 percent total tetrahydrocannabinol on a dry-weight basis.

(C) A hemp-derived product or substance that is excluded from the definition of “hemp products” or “hemp-infused products” pursuant to subdivision (B) of this subdivision (23) shall be considered a cannabis product as defined by subdivision 831(3) of this title;

provided, however, that a person duly licensed or registered by the Cannabis Control Board lawfully may possess such products in conformity with the person’s license or hemp processor registration.

Sec.

4.

7 V.S.A.

§ 881 is amended to read:

§ 881.

RULEMAKING;

CANNABIS ESTABLISHMENTS (a) The Board shall adopt rules to implement and administer this chapter in accordance with subdivisions (1)–(8)(9) of this subsection.

(1) Rules concerning any cannabis establishment shall include:

BILL AS PASSED BY THE HOUSE H.321 Page 26 of 43 (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;

BILL AS PASSED BY THE HOUSE H.321 Page 27 of 43 (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 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 BILL AS PASSED BY THE HOUSE H.321 Page 28 of 43 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 BILL AS PASSED BY THE HOUSE H.321 Page 29 of 43 (S) requirements for cannabis control testing of hemp, hemp-infused products, cannabis, and cannabis products;

and * * * VT LEG #382113 v.1 AS PASSED BY HOUSE H.321 Page 7 of 20 (9) Rules concerning trim and harvest services shall include:

and BILL AS PASSED BY THE HOUSE H.321 Page 30 of 43 (F) procedures for documenting lawful compensation.

§§ 883 883 is amended to read:

VT LEG #382113 v.1 AS PASSED BY HOUSE H.321 Page 8 of 20 (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 the applicant’s 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.

(c) Notwithstanding subsection (a) of this section or subsection 844(b) of this title, if required records are not reasonably available to the Board due to circumstances beyond its control, with the consent of the applicant, the Board may accept third-party criminal background checks submitted by an applicant for a cannabis establishment license or renewal in lieu of obtaining the records BILL AS PASSED BY THE HOUSE H.321 Page 31 of 43 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 from a reputable commercial provider.

VT LEG #382113 v.1 AS PASSED BY HOUSE H.321 Page 9 of 20 Sec.

§§ 884 884 is amended to read:

(b)(1)(A) Prior to issuing the identification card to an owner or principal of a cannabis establishment, the Board shall obtain from the Vermont Crime Information Center a copy of the person’s Vermont fingerprint-based criminal BILL AS PASSED BY THE HOUSE H.321 Page 32 of 43 history records, out-of-state criminal history records, and criminal history records from the Federal Bureau of Investigation.

VT LEG #382113 v.1 AS PASSED BY HOUSE H.321 Page 10 of 20 (c) Once an identification card application has been submitted, a person the Board, for good cause, may serve issue a temporary permit authorizing the applicant to 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.

BILL AS PASSED BY THE HOUSE H.321 Page 33 of 43 (d) An identification card shall expire one year after its issuance or, in the case of owners and principals, upon the expiration of the cannabis establishment’s license, whichever occurs first.

§§ 886 886 is added to read:

§§ 886. 886.

VT LEG #382113 v.1 AS PASSED BY HOUSE H.321 Page 11 of 20 (b) The Board may issue a special permit temporarily authorizing a licensed or unlicensed designee of suitable ability and judgment to temporarily operate a cannabis establishment, or to possess, transport, or dispose of cannabis and cannabis products, as specified by the terms of the permit.

BILL AS PASSED BY THE HOUSE H.321 Page 34 of 43 (c) A person acting in conformity with the terms and scope of a special permit issued pursuant to subsection (b) of this section shall be immune from civil and criminal liability in relation to possession, transportation, or transfer of cannabis within the borders of this State.

(d) If appropriate to facilitate judicial proceedings involving a cannabis establishment or its principals, including an action for receivership, a State court of competent jurisdiction may request that the Board determine whether a person is suited by background and qualifications to hold a special permit issued pursuant to subsection (b) of this section for a purpose specified by the VT LEG #382113 v.1 AS PASSED BY HOUSE H.321 Page 12 of 20 court.

§§ 901 901 is amended to read:

BILL AS PASSED BY THE HOUSE H.321 Page 35 of 43 (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 910 of this title.

and VT LEG #382113 v.1 AS PASSED BY HOUSE H.321 Page 13 of 20 (H) an integrated license.

Each license shall permit only one location of the establishment, however a BILL AS PASSED BY THE HOUSE H.321 Page 36 of 43 trim and harvest service licensee may provide services at multiple other licensed cannabis establishments.

An integrated license shall permit only one location for each of the types of VT LEG #382113 v.1 AS PASSED BY HOUSE H.321 Page 14 of 20 activities permitted by the license:

Failure to provide BILL AS PASSED BY THE HOUSE H.321 Page 37 of 43 proof of insurance to the Board, as required, may result in revocation of the license.

§§ 904 904 is amended to read:

VT LEG #382113 v.1 AS PASSED BY HOUSE H.321 Page 15 of 20 (B) The strain and variety of cannabis contained.

Rules shall take into consideration that BILL AS PASSED BY THE HOUSE H.321 Page 38 of 43 different labeling requirements may be appropriate depending on whether the cannabis is sold to a wholesaler, product manufacturer, or retailer.

§§ 904b 904b is amended to read:

VT LEG #382113 v.1 AS PASSED BY HOUSE H.321 Page 16 of 20 (2) test, transport, and sell cannabis clones and immature cannabis plants to licensed cultivators and retailers;

§§ 904c 904c is added to read:

§§ 904c. 904c.

TRIM AND HARVEST SERVICE LICENSE A trim and harvest service licensed under this section may contract with cultivators licensed under section 904 or 904a of this chapter, on a seasonal or BILL AS PASSED BY THE HOUSE H.321 Page 39 of 43 temporary basis, to supply specified cannabis maintenance services within the scope of each client-cultivator’s license.

§§ 910 910 is amended to read:

VT LEG #382113 v.1 AS PASSED BY HOUSE H.321 Page 17 of 20 (9) Employees.

Local licensing BILL AS PASSED BY THE HOUSE H.321 Page 40 of 43 fees shall be distributed to the municipality in which the cannabis establishment is located pursuant to section 846(c) of this title.

VT LEG #382113 v.1 AS PASSED BY HOUSE H.321 Page 18 of 20 Sec.

§§ 3260 3260 is amended to read:

BULK SALES (a) Whenever a person (transferor) required to collect or withhold a trust tax pursuant to chapter 151, 207, 225, or 233 of this title shall make any sale, transfer, long-term lease, or assignment (transfer) in bulk of any part or the whole of the assets of a business, otherwise than in the ordinary course of the business, the purchaser, transferee or assignee (transferee) shall, at least 10 days before taking possession of the subject of the transfer or before payment therefore if earlier, notify the Commissioner in writing of the proposed sale and of the price, terms, and conditions thereof whether or not the transferor has represented to or informed the transferee that the transferor owes any trust tax pursuant to chapter 151, 207, 225, or 233 and whether or not the transferee BILL AS PASSED BY THE HOUSE H.321 Page 41 of 43 has knowledge that such taxes are owed, and whether any taxes are in fact owed.

(b) Whenever the transferee shall fail to give notice to the Commissioner as required by subsection (a) of this section, or whenever the Commissioner shall inform the transferee that a possible claim for tax exists, any sums of money, property, or choses in action, or other consideration, which the transferee is required to transfer over to or for the transferor, shall be subject to a first priority right and lien for any taxes theretofore or thereafter determined to be due from the transferor to the State, and the transferee is forbidden to transfer VT LEG #382113 v.1 AS PASSED BY HOUSE H.321 Page 19 of 20 the consideration to or for the transferor to the extent of the amount of the State’s claim.

* * * BILL AS PASSED BY THE HOUSE H.321 Page 42 of 43 (15) “Other tobacco products” means any product manufactured from, derived from, or containing tobacco or nicotine, whether natural or synthetic, and including nicotine alkaloids and nicotine analogs, that is intended for human consumption by smoking, chewing, or in any other manner, including products sold as a tobacco substitute, as defined in 7 V.S.A.

VT LEG #382113 v.1 AS PASSED BY HOUSE H.321 Page 20 of 20 * * * (20) “New smokeless tobacco” means any tobacco product manufactured from, derived from, or containing tobacco or nicotine, whether natural or synthetic, including nicotine alkaloids and nicotine analogs, that is not intended to be smoked, has a moisture content of less than 45 percent, or is offered in individual single-dose tablets or other discrete single-use units.

6d.6d.  [Deleted.] Sec.

[Deleted.] Sec.

POSITION BILL AS PASSED BY THE HOUSE H.321 Page 43 of 43 One full-time, permanent, exempt position of Enforcement Attorney is authorized in the Cannabis Control Board in fiscal year 2026.

VT LEG #382113 v.1