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1 S.127
2 Introduced by Senators Vyhovsky, MacDonald, McCormack and Ram
3 Hinsdale
4 Referred to Committee on
5 Date:
6 Subject: Cannabis; licensed cannabis establishments; cannabis taxes
7 Statement of purpose of bill as introduced: This bill proposes to permit the
8 consumption of cannabis anywhere tobacco use is permitted; to increase the
9 amount of THC permissible in a single package of a cannabis product from 50
10 milligrams to 100 milligrams; to change the maximum amount of THC
11 permitted in a single serving of a cannabis product from 5 milligrams to 10
12 milligrams; to establish a delivery service license initially only available to
13 social equity applicants; to establish a special event host license to allow the
14 sale of cannabis to adult consumers for on-site consumption at private events;
15 to establish a temporary event provider license to allow the sale of cannabis to
16 adult consumers for on-site consumption, in an event lasting not more than
17 four days; to allow tier 1 and 2 cultivators to sell cannabis directly to
18 consumers; and set aside additional portions of the cannabis excise tax revenue
19 for the Cannabis Business Development Fund and communities that have been
20 disproportionately impacted by cannabis prohibition in addition to the existing VT LEG #366235 v.2
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1 set aside, which would be expanded to cover substance misuse prevention and
2 harm reduction programming.
3 An act relating to the creation of new types of cannabis establishment licenses
4 and the provision of cannabis excise tax revenue to the Cannabis Business
5 Development Fund, communities that have been disproportionately impacted
6 by cannabis prohibition, and substance misuse treatment
7 It is hereby enacted by the General Assembly of the State of Vermont:
8 * * * Use of Cannabis in a Public Place* * *
9 Sec. 1. 7 V.S.A. § 831 is amended to read:
10 § 831. DEFINITIONS
11 As used in this chapter:
12 ***
13 (6) “Public place” means any street, alley, park, sidewalk, public
14 building other than individual dwellings, any place of public accommodation
15 as defined in 9 V.S.A. § 4501, and any place where the use or possession of a
16 lighted tobacco product, tobacco product, or tobacco substitute is prohibited by
17 law pursuant to 18 V.S.A. chapter 37. [Repealed]
18 Sec. 2. 7 V.S.A. § 833 is amended to read:
19 § 833. CONSUMPTION USE OF CANNABIS IN A PUBLIC PLACE
20 (a) No person shall consume possess lighted cannabis or use flavored oil
21 cannabis products sold prepackaged for use with battery-powered devices in a VT LEG #366235 v.2
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1 public place unless specifically authorized by law any place where the use or
2 possession of a lighted tobacco product, tobacco product, or tobacco substitute
3 is prohibited by law pursuant to 18 V.S.A. chapter 37. Violations shall be
4 punished in accordance with 18 V.S.A. § 4230a.
5 (b) This section shall not apply to a location where cannabis is served in
6 compliance with a special event provider licensee or temporary event host
7 licensee.
8 * * * Definitions in Cannabis Establishment Chapter * * *
9 Sec. 3. 7 V.S.A. § 861 is amended to read:
10 § 861. DEFINITIONS
11 As used in this chapter:
12 ***
13 (8) “Cannabis establishment” means a cannabis cultivator, wholesaler,
14 product manufacturer, retailer, testing laboratory, or integrated licensee,
15 delivery licensee, temporary event provider, or special event host licensed by
16 the Board to engage in commercial cannabis activity in accordance with this
17 chapter.
18 ***
19 (31) “Special events provider” means a person licensed by the Board to
20 sell cannabis to adult consumers for on-site consumption at private events
21 lasting not more than one week, in accordance with this chapter.
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1 (32) “Temporary event host” means a person licensed by the Board to
2 sell cannabis to consumers for on-site consumption, in an event lasting not
3 more than four days, in accordance with this chapter.
4 * * * Delivery, Special Event, and Temporary Event Licenses * * *
5 Sec. 4. 7 V.S.A. § 881 is amended to read:
6 § 881. RULEMAKING; CANNABIS ESTABLISHMENTS
7 (a) The Board shall adopt rules to implement and administer this chapter in
8 accordance with subdivisions (1)–(7)(10) of this subsection.
9 ***
10 (3) Rules concerning product manufacturers shall include:
11 (A) requirements that a single package of a cannabis product shall
12 not contain more than 50 100 milligrams of THC, except in the case of:
13 (i) cannabis products that are not consumable, including topical
14 preparations;
15 (ii) solid concentrates, oils, and tinctures; and
16 (iii) cannabis products sold to a dispensary pursuant to 18 V.S.A.
17 chapter 86 chapter 37 of this title and rules adopted pursuant to that chapter;
18 (B) requirements that cannabis products are labeled in a manner that
19 states the number of servings of tetrahydrocannabinol in the product, measured
20 in servings of a maximum of five 10 milligrams per serving, except:
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1 (i) cannabis products that are not consumable, including topical
2 preparations; and
3 (ii) cannabis products sold to a dispensary pursuant to 18 V.S.A.
4 chapter 86 chapter 37 of this title and rules adopted pursuant to that chapter;
5 ***
6 (8) Rules concerning delivery services shall include:
7 (A) secure storage of cannabis, cannabis products, and cash in a
8 delivery vehicle; and
9 (B) requirements for proper verification of age of customers and
10 confirmation of Registry status for patients and caregivers.
11 (9) Rules concerning special event providers shall include:
12 (A) limits on the quantity of cannabis that can be provided to each
13 consumer for on-site consumption;
14 (B) requirements for appropriate tax collection;
15 (C) a requirement that materials are posted on-site regarding the
16 hazards of driving while impaired by cannabis;
17 (D) procedures to prevent overconsumption by patrons, including
18 training requirements for staff to recognize the signs of overconsumption of
19 cannabis;
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1 (E) requirements to ensure cannabis is only served on a single-
2 serving basis, to adults 21 years of age and older, by a registered employee of
3 the vendor;
4 (F) requirements to ensure that only adults 21 years of age and older
5 are admitted to any areas where cannabis is smoked or vaporized;
6 (G) protections to limit staff from being exposed to cannabis smoke
7 indoors;
8 (H) a requirement that the special event provider provide to the
9 Board prior to an event the location where cannabis is to be served, the
10 quantity of cannabis to be served, and whether individuals under 21 years of
11 age will be present; and
12 (I) a requirement that the licensee indicate in its operating plan
13 whether food, beverages, or entertainment is planned or will be offered at
14 events.
15 (10) Rules concerning temporary event hosts shall include:
16 (A) requirements to ensure proper ventilation;
17 (B) limits on the quantity of cannabis that can be provided to each
18 consumer for on-site consumption;
19 (C) requirements for appropriate tax collection;
20 (D) a requirement that materials are posted on-site regarding the
21 hazards of driving while impaired by cannabis;
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1 (E) procedures to prevent overconsumption by patrons, including
2 training requirements for staff to recognize the signs of overconsumption of
3 cannabis;
4 (F) procedures to ensure that only adults 21 years of age and older
5 are admitted to areas with special events licenses;
6 (G) protections to limit staff from being exposed to cannabis smoke
7 indoors; and
8 (H) a requirement that the licensee indicate in its operating plan
9 whether food, beverages, or entertainment is planned or will be offered at
10 events.
11 ***
12 Sec. 5. 7 V.S.A. § 909a is added to read:
13 § 909a. DELIVERY SERVICE LICENSE
14 (a) A delivery service licensed under this chapter may transport cannabis
15 and cannabis products:
16 (1) from a licensed retailer to a customer;
17 (2) from a licensed dispensary to a registered patient or caregiver; and
18 (3) between licensed cannabis establishments and dispensaries.
19 (b)(1) The Board shall begin accepting delivery service applications from
20 social equity applicants, as defined by rule, who do not hold another type of
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1 cannabis establishment license not later than March 1, 2024 and begin issuing
2 delivery service licenses not later than April 1, 2024.
3 (2) If at any time the Board determines that the number of qualified
4 social equity applicants is not sufficient to meet the needs of other licensees,
5 the Board may open the application process to social equity applicants who
6 hold another cannabis establishment license for a period of time the Board
7 deems necessary.
8 (3) The Board shall begin accepting delivery service applications from
9 any applicant regardless of social equity status or other cannabis license
10 holdings not later than January 1, 2030.
11 Sec. 6. 7 V.S.A. § 909b is added to read:
12 § 909b. SPECIAL EVENT PROVIDER LICENSE
13 A special event provider licensed under this chapter may:
14 (1) purchase cannabis from a licensed cultivator, wholesaler, and
15 integrated licensee and cannabis products from a licensed product
16 manufacturer, integrated licensee, and dispensary; and
17 (2) transport, process, package, and sell cannabis and cannabis products
18 to attendees of special events.
19 Sec. 7. TEMPORARY EVENT HOST LICENSE
20 A temporary event host licensed under this chapter may:
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1 (1) purchase cannabis from a licensed cultivator, wholesaler, and
2 integrated licensee and cannabis products from a licensed product
3 manufacturer, integrated licensee, and dispensary; and
4 (2) transport, process, package, and sell cannabis and cannabis products
5 to attendees of temporary events.
6 * * * Direct Sales to Consumers By Tier 1 and 2 Cultivators * * *
7 Sec. 8. 7 V.S.A. § 904 is amended to read:
8 § 904. CULTIVATOR LICENSE
9 (a)(1) A cultivator licensed under this chapter may cultivate, process,
10 package, label, transport, test, and sell cannabis to a licensed wholesaler,
11 product manufacturer, retailer, integrated licensee, and dispensary and may
12 purchase and sell cannabis seeds and immature cannabis plants to another
13 licensed cultivator.
14 (2) In addition to the authorized conduct in subdivision (1) of this
15 subsection, tier 1 and 2 cultivators may sell cannabis directly to consumers
16 without a retailer license.
17 ***
18 * * * Expungement of Cannabis Offenses No Longer Criminal * * *
19 Sec. 9. 13 V.S.A. § 7602 is amended to read:
20 § 7602. EXPUNGEMENT AND SEALING OF RECORD,
21 POSTCONVICTION; PROCEDURE
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1 (a)(1) A person may file a petition with the court requesting expungement
2 or sealing of the criminal history record related to the conviction if:
3 ***
4 (B) the person was convicted of an offense for which the underlying
5 conduct is no longer prohibited by law or designated as a criminal offense;
6 (C) pursuant to the conditions set forth in subsection (g) of this
7 section, the person was convicted of a violation of 23 V.S.A. § 1201(a) or
8 § 1091 related to operating under the influence of alcohol or other substance,
9 excluding a violation of those sections resulting in serious bodily injury or
10 death to any person other than the operator, or related to operating a school bus
11 with a blood alcohol concentration of 0.02 or more or operating a commercial
12 vehicle with a blood alcohol concentration of 0.04 or more; or
13 (D) pursuant to the conditions set forth in subsection (h) of this
14 section, the person was convicted under 1201(c)(3)(A) of a violation of
15 subdivision 1201(a) of this title related to burglary when the person was 25
16 years of age or younger, and the person did not carry a dangerous or deadly
17 weapon during commission of the offense; or
18 (E) the person was convicted of dispensing or selling cannabis prior
19 to March 1, 2022.
20 ***
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1 (e) For petitions filed pursuant to subdivision (a)(1)(B) of this section for a
2 conviction for possession or dispensing of a regulated drug under 18 V.S.A.
3 chapter 84, subchapter 1 in an amount that is no longer prohibited by law or for
4 which criminal sanctions have been removed:
5 (1) The petitioner shall bear the burden of establishing that his or her the
6 petitioner’s conviction was based on possessing an amount of regulated drug
7 that is no longer prohibited by law or for which criminal sanctions have been
8 removed.
9 (2) There shall be a rebuttable presumption that the amount of the
10 regulated drug specified in the affidavit of probable cause associated with the
11 petitioner’s conviction was the amount possessed or dispensed by the
12 petitioner.
13 ***
14 * * * Cannabis Excise Tax Revenue for
15 Substance Misuse Prevention and Harm Reduction Programming * * *
16 * * * Fiscal Years 2024 and 2025 * * *
17 Sec. 10. 32 V.S.A. § 7909 is amended to read:
18 § 7909. SUBSTANCE MISUSE PREVENTION AND HARM REDUCTION
19 PROGRAMMING FUNDING
20 (a) Thirty percent of the revenues raised by the cannabis excise tax
21 imposed by section 7902 of this title, not to exceed $10,000,000.00 per fiscal VT LEG #366235 v.2
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1 year, unexpended and unobligated balance of the Cannabis Regulation Fund
2 that is transferred to the General Fund pursuant to 7 V.S.A. § 845(d)(1) shall
3 be used to fund substance misuse prevention, harm reduction, and treatment
4 programming in the subsequent fiscal year.
5 (b) If any General Fund appropriations for substance misuse prevention,
6 harm reduction, and treatment programming remain unexpended at the end of a
7 fiscal year, that balance shall be carried forward and shall only be used for the
8 purpose of funding substance misuse prevention, harm reduction, and
9 treatment programming in the subsequent fiscal year.
10 (c) Any appropriation balance carried forward pursuant to subsection (b) of
11 this section shall be in addition to revenues allocated for substance misuse
12 prevention, harm reductio