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title-7•Title 7 — Alcoholic Beverages, Cannabis, and Tobacco
The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated, provided as a convenience by the Vermont General Assembly. The official text is the printed Vermont Statutes Annotated published by LexisNexis.
This title is based on the taxing power and the police power of the State and is for the protection of the public welfare, good order, health, peace, safety, and morals of the people of the State. The provisions of this title shall be liberally construed to accomplish its purposes.
(Amended 2017, No. 83, § 1.)
As used in this title:
(1) “Alcohol” means the product of distillation, fermentation, or chemical synthesis, including alcoholic beverages, ethyl alcohol, and nonpotable alcohol.
(2) “Alcoholic beverages” means malt beverages, vinous beverages, spirits, ready-to-drink spirits beverages, and fortified wines.
(3) “Board of Liquor and Lottery” means the board of control appointed under the provisions of chapter 5 of this title.
(4) “Boat” means a vessel suitably equipped and operated for the transportation of passengers in interstate commerce.
(5) “Caterer’s license” means a license issued by the Board of Liquor and Lottery authorizing the holder of a first-class license or first- and third-class licenses to serve alcoholic beverages at a function located on premises other than those occupied by a first-, first- and third-, or second-class licensee to sell alcoholic beverages.
(6) “Certificate of approval” means a license granted by the Board of Liquor and Lottery to a manufacturer or distributor of malt beverages, vinous beverages, or ready-to-drink spirits beverages that is not licensed under the provisions of this title that permits the licensee to sell those beverages to holders of a packager’s or wholesale dealer’s license.
(7) “Club” means an unincorporated association or a corporation authorized to do business in this State that has been in existence for at least two consecutive years prior to the date of application for a license under this title and owns, hires, or leases a building or space in a building that is suitable and adequate for the reasonable and comfortable use and accommodation of its members and their guests and contains suitable and adequate kitchen and dining room space and equipment implements and facilities. A bona fide unincorporated association or corporation whose officers and members consist solely of veterans of the U.S. Armed Forces, or a subordinate lodge or local chapter of any national fraternal order, that fulfills all requirements of section 229 of this title except that it has not been in existence for at least two years shall come within the terms of this definition six months after the completion of its organization.
(8) “Commercial catering license” means a license granted by the Board of Liquor and Lottery permitting a business licensed by the Department of Health as a commercial caterer and having a commercial kitchen facility in the home or place of business to sell alcoholic beverages at a function previously approved by the local control commissioners.
(9) “Commissioner of Liquor and Lottery” means the executive officer of the Board of Liquor and Lottery appointed under the provisions of chapter 5 of this title.
(10) “Control commissioners” means the commissioners of a municipality appointed under section 166 of this title.
(11) “Department” means the Department of Liquor and Lottery.
(12) “Destination resort master license” means a license granted by the Board of Liquor and Lottery pursuant to section 242 of this title permitting a destination resort to designate licensed caterers and commercial caterers that will be permitted to cater individual events within the boundaries of the resort without being required to obtain a request-to-cater permit for each individual event. For purposes of a destination resort master license, a “destination resort” is a resort that contains at least 100 acres of land, offers at least 50 units of sleeping accommodations, offers meal and beverage service to the public for consideration, and has related sports and recreational facilities for the convenience or enjoyment of its guests. “Destination resort” does not include the University of Vermont and State Agricultural College; the Vermont State Colleges; or any other university, college, or postsecondary school.
(13) “Dining car” means a railroad car on which meals are prepared and served.
(14) “Division” means the Division of Liquor Control in the Department of Liquor and Lottery.
(15) “Festival permit” means a permit granted by the Division of Liquor Control permitting a person to conduct an event at which alcoholic beverages are sold by the glass to the public, provided the event is approved by the local control commissioners.
(16) “First-class license” means a license permitting the licensee to sell malt beverages, vinous beverages, and ready-to-drink spirits beverages to the public for consumption only on the premises for which the license is granted.
(17) “Fortified wine permit” means a permit granted to a second-class licensee that permits the licensee to export and sell fortified wines to the public for consumption off the licensed premises.
(18) “Fortified wines” means vinous beverages, including those to which spirits have been added during manufacture, containing at least 16 percent alcohol but not more than 23 percent alcohol by volume at 60 degrees Fahrenheit and all vermouths containing not more than 23 percent alcohol by volume at 60 degrees Fahrenheit.
(19) “Fourth-class license” means a license permitting a licensed manufacturer or rectifier to sell by the unopened container and distribute by sample, with or without charge, beverages manufactured by the licensee.
(20) “Home-fermented beverages” means malt or vinous beverages produced at home and not for sale.
(21) “Hotel” has the same meaning as in 32 V.S.A. § 9202(3) and as determined by the Board of Liquor and Lottery.
(22) “Industrial alcohol distributor’s license” means a license granted by the Board of Liquor and Lottery that allows holders to sell pure ethyl or grain alcohol of at least 190 proof in quantities of five gallons or more directly to manufacturers, industrial users, hospitals, druggists, and institutions of learning.
(23) “Keg” means a reusable container capable of holding at least five gallons of malt beverage or at least two-and-one-half gallons of vinous beverage.
(24) “Legal age” means 21 years of age or older.
(25) “Malt beverages” means all fermented beverages of any name or description manufactured for sale from malt, wholly or in part, or from any malt substitute, known as, among other things, beer, ale, or lager, containing not less than one percent nor more than 16 percent alcohol by volume at 60 degrees Fahrenheit.
(26) “Manufacturer’s or rectifier’s license” means a license granted by the Board of Liquor and Lottery that permits the holder to manufacture or rectify malt beverages, vinous beverages, and fortified wines or spirits , fortified wines, and ready-to-drink spirits beverages.
(27) “Minor” means an individual who has not attained 21 years of age.
(28) “Outside consumption permit” means a permit granted by the Division of Liquor Control allowing the holder of a first-class, first- and third-class, or fourth-class license to allow for consumption of alcoholic beverages in a delineated outside area.
(29) “Packager’s license” means a license granted by the Board of Liquor and Lottery permitting a person to bottle or otherwise package alcoholic beverages for sale and to distribute and sell alcoholic beverages at wholesale in this State.
(30) “Person,” as applied to licensees, means an individual who is a citizen, a lawful permanent resident of the United States, or a holder of an E-2 Visa; a partnership composed of individuals, a majority of whom are citizens, lawful permanent residents of the United States, or holders of an E-2 Visa; a corporation organized under the laws of this State or another state in which a majority of the directors are citizens, lawful permanent residents of the United States, or holders of an E-2 Visa; or a limited liability company organized under the laws of this State or another state in which a majority of the members or managers are citizens, lawful permanent residents of the United States, or holders of an E-2 Visa.
(31) “Ready-to-drink spirits beverage” means an alcoholic beverage containing more than one percent alcohol by volume and not more than 12 percent alcohol by volume at 60 degrees Fahrenheit obtained by distillation, by chemical synthesis, or through concentration by freezing and mixed with nonalcoholic beverages, flavoring, or coloring materials. Ready-to-drink spirits beverages may also contain water, fruit juices, fruit adjuncts, sugar, carbon dioxide, preservatives, and other ingredients. “Ready-to-drink spirits beverage” shall not include a beverage that is packaged in containers greater than 24 fluid ounces in volume.
(32) “Request-to-cater permit” means a permit granted by the Division of Liquor Control authorizing a licensed caterer or commercial caterer to cater individual events.
(33) “Retail dealer” means any person who sells or furnishes malt beverages, vinous beverages, or ready-to-drink spirits beverages to the public.
(34) “Retail delivery permit” means a permit granted by the Division of Liquor Control that permits a second-class licensee to deliver malt beverages and vinous beverages sold from the licensed premises for consumption off the premises to an individual who is 21 years of age or older at a physical address in Vermont.
(35) “Sampler flight” means a flight, ski, paddle, or any similar device by design or name intended to hold alcoholic beverage samples for the purpose of comparison.
(36) “Second-class license” means a license permitting the licensee to export and to sell malt beverages, vinous beverages, or ready-to-drink spirits beverages to the public for consumption off the premises for which the license is granted.
(37) “Special event permit” means a permit granted by the Division of Liquor Control permitting a licensed manufacturer or rectifier to sell, by the glass or by the unopened bottle, alcoholic beverages manufactured or rectified by the license holder at an event open to the public that has been approved by the local control commissioners.
[Subdivision (38) effective until July, 1, 2026; see also subdivision (38) effective July 1, 2026 set out below.]
(38) “Special venue serving permit” means a permit granted by the Division of Liquor Control permitting an art gallery, retail establishment, public library, or museum to conduct an event at which malt or vinous beverages, or both, are served by the glass to the public. As used in this section, “art gallery” means a fixed establishment whose primary purpose is to exhibit or offer for sale works of art; “public library” has the same meaning as in 22 V.S.A. § 101; and “museum” has the same meaning as in 27 V.S.A. § 1151. As used in this section, “retail establishment” does not include a Vermont agency liquor store or a cannabis establishment as that term is defined in section 861 of this title.
[Subdivision (38) effective July, 1, 2026; see also subdivision (38) effective until July 1, 2026 set out above.]
(38) “Special venue serving permit” means a permit granted by the Division of Liquor Control permitting an art gallery, public library, or museum to conduct an event at which malt or vinous beverages, or both, are served by the glass to the public. As used in this section, “art gallery” means a fixed establishment whose primary purpose is to exhibit or offer for sale works of art; “public library” has the same meaning as in 22 V.S.A. § 101; and “museum” has the same meaning as in 27 V.S.A. § 1151.
(39) “Specialty beer” means a malt beverage that contains more than eight percent alcohol and not more than 16 percent alcohol by volume at 60 degrees Fahrenheit.
(40) “Spirits” means beverages that contain more than one percent alcohol obtained by distillation, by chemical synthesis, or through concentration by freezing; vinous beverages containing more than 23 percent alcohol; and malt beverages containing more than 16 percent alcohol by volume at 60 degrees Fahrenheit. “Spirits” also means a ready-to-drink spirits beverage that contains more than 12 percent alcohol by volume at 60 degrees Fahrenheit or is packaged in containers greater than 24 fluid ounces in volume.
(41) “Third-class license” means a license granted by the Board of Liquor and Lottery permitting the licensee to sell spirits and fortified wines for consumption only on the premises for which the license is granted.
(42) “Vinous beverages” means all fermented beverages of any name or description manufactured or obtained for sale from the natural sugar content of fruits or other agricultural product, containing sugar, the total alcoholic content of which is not less than one percent nor more than 16 percent by volume at 60 degrees Fahrenheit.
(43) “Wholesale dealer’s license” means a license granted by the Board of Liquor and Lottery permitting the holder to sell or distribute malt beverages, vinous beverages, and ready-to-drink spirits beverages to first- and second-class licensees, to educational sampling event permit holders, and to agencies of the United States.
(44) “Hard cider” means a vinous beverage, made a majority from the fermented natural sugar content of apples or pears, that contains an alcoholic content of not less than one percent or more than 16 percent by volume at 60 degrees Fahrenheit. “Hard cider” includes sweetened, flavored, and carbonated hard cider.
(Amended 1959, No. 329 (Adj. Sess.), §§ 33, 39(b), eff. March 1, 1961; 1961, No. 76; 1964, No. 1 (Sp. Sess.); 1971, No. 64, § 1; 1973, No. 34, § 3; 1975, No. 44, § 1, eff. April 15, 1975; 1979, No. 103 (Adj. Sess.), § 1, eff. April 2, 1980; 1979, No. 115 (Adj. Sess.), § 2; 1981, No. 137 (Adj. Sess.) § 1, eff. April 6, 1982; 1981, No. 139 (Adj. Sess.), § 1; 1985, No. 99 (Adj. Sess.), § 1; 1985, No. 159 (Adj. Sess.), § 1; 1987, No. 188 (Adj. Sess.), §§ 1, 2, eff. May 11, 1988; 1989, No. 138 (Adj. Sess.); 1991, No. 250 (Adj. Sess.); 1993, No. 46, § 3; 1993, No. 112 (Adj. Sess.), §§ 1, 2, eff. Feb. 18, 1994; 1993, No. 168 (Adj. Sess.), §§ 1, 2; 1995, 1993, No. 26, § 1; 1995, No. 69 (Adj. Sess.), § 1, eff. Feb. 15, 1996; 1995, No. 121 (Adj. Sess.), § 1; 1997, No. 50, § 46, eff. June 26, 1997; 1997, No. 61, § 210a, eff. June 26, 1997; 1997, No. 158 (Adj. Sess.), §§ 1, 4, 6; 1999, No. 111 (Adj. Sess.), § 1; 2001, No. 9, § 1, 2; 2001, No. 25, § 1; 2001, No. 74 (Adj. Sess.), § 1; 2001, No. 143 (Adj. Sess.), § 7, eff. June 21, 2002; 2003, No. 70 (Adj. Sess.), § 62, eff. March 1, 2004; 2003, No. 102 (Adj. Sess.), § 1; 2005, No. 140 (Adj. Sess.), §§ 2, 5, 8, eff. May 10, 2006; 2007, No. 21, § 1, eff. May 10, 2007; 2007, No. 167 (Adj. Sess.), § 1; 2007, No. 210 (Adj. Sess.), § 1; 2009, No. 10, § 1, eff. May 5, 2009; 2009, No. 77 (Adj. Sess.), § 1, eff. April 13, 2010; 2009, No. 102 (Adj. Sess.), § 1, eff. May 11, 2010; 2011, No. 52, § 76, eff. May 27, 2011; 2011, No. 115 (Adj. Sess.), § 1; 2013, No. 64, § 1; 2013, No. 72, § 22; 2013, No. 202 (Adj. Sess.), § 3, eff. June 24, 2014; 2015, No. 51, § A.4, eff. date, see note set out below; 2015, No. 144 (Adj. Sess.), § 1; 2017, No. 83, § 2; 2018, No. 1 (Sp. Sess.), § 1; 2019, No. 73, § 1; 2021, No. 105 (Adj. Sess.), § 150, eff. July 1, 2022; 2021, No. 177 (Adj. Sess.), § 1, eff. July 1, 2022; 2023, No. 67, § 1, eff. July 1, 2023; 2023, No. 156 (Adj. Sess.), § 1, eff. July 1, 2024; 2023, No. 156 (Adj. Sess.), § 4, eff. July 1, 2026.)
A student 18 years of age or older who is enrolled in a postsecondary education culinary arts program, accredited by a commission recognized by the U.S. Department of Education, shall be exempt from the provisions of this title while attending classes that require the possession or consumption of alcoholic beverages.
(Added 1985, No. 99 (Adj. Sess.) § 2; amended 2017, No. 83, § 3.)
(a) A nonprofit organization qualified for tax exempt status pursuant to Section 501(c) of the federal Internal Revenue Code, as amended, in the discretion of the Commissioner, may auction alcoholic beverages to the public without a license, provided that:
(1) Prior to the auction, the organization provides written notification of the auction accompanied by documentation of its nonprofit status satisfactory to the Commissioner.
(2) The Commissioner approves the organization’s nonprofit qualifications and the organization’s proposal to auction alcoholic beverages.
(3) The profits from the auctioned beverages are used solely for the expenses of the nonprofit organization related to conducting the auction or for the nonprofit purposes of the organization.
(b) A person who donates alcoholic beverages to a nonprofit organization for an auction under this section is not required to be licensed under this title.
(c) A licensee under this title may donate alcoholic beverages to a nonprofit organization pursuant to this section, provided the licensee pays to the State all the taxes that would be due if the alcoholic beverages had been sold in the course of the licensee’s business.
(d) If an auction under this section is conducted on the premises of a licensee under this title, beverages donated for auction may be given and accepted without including the beverages on the licensee’s invoice.
(e) A purchaser of beverages auctioned by a nonprofit organization pursuant to this section shall not be responsible for payment of any sales tax.
(Added 2005, No. 40, § 1, eff. June 2, 2005; amended 2017, No. 83, § 4.)
(a) Notwithstanding any provision of 13 V.S.A. chapter 51 to the contrary, the Division of Liquor Control may conduct raffles for the right to purchase certain rare and unusual spirits and fortified wines that are acquired by the Board of Liquor and Lottery. A raffle conducted pursuant to this section shall meet the following requirements:
(1) Tickets to enter the raffle shall only be available for purchase to a member of the general public, or to a third-class licensee by and through an authorized agent, who is 21 years of age or older.
(2) Tickets for the raffle shall be sold at a price fixed by the Commissioner.
(3) All notices or advertisements relating to the raffle shall clearly state:
(A) the price of a raffle ticket;
(B) the date of the drawing;
(C) the sales price of each rare and unusual spirit or fortified wine; and
(D) that the winning prize will be the right to purchase the rare and unusual spirit or fortified wine for the specified sales price.
(4) No Board member or employee of the Department of Liquor and Lottery and no immediate family member of a Board member or employee of the Department shall be permitted to enter the raffle.
(b) The proceeds from the sale of tickets for each raffle shall be deposited in the Liquor Control Enterprise Fund established pursuant to section 112 of this title.
(c) As used in this section, “rare and unusual spirits and fortified wines” means spirits and fortified wines that are distributed or allocated to the Board in an amount that is insufficient for general distribution to local agency stores and for which the Commissioner determines that an extraordinary level of public demand exists.
(Added 2017, No. 83, § 163; amended 2018, No. 1 (Sp. Sess.), § 2; 2021, No. 177 (Adj. Sess.), § 40, eff. July 1, 2022.)
(a) A person shall not furnish or sell, or keep with intent to sell, any alcoholic beverages, or manufacture, sell, barter, transport, import, export, deliver, prescribe, furnish, or possess any alcohol, except as authorized by this title.
(b) Notwithstanding subsection (a) of this section, this chapter shall not apply to:
(1) the furnishing of alcoholic beverages by an individual in his or her private dwelling unless the dwelling becomes a place of public resort;
(2) the use of sacramental wine; or
(3) the furnishing, purchase, sale, barter, transportation, importation, exportation, delivery, prescription, or possession of alcohol for manufacturing, mechanical, medicinal, and scientific purposes, provided that it is done in accordance with the rules of the Board of Liquor and Lottery and licenses and permits issued by the Board of Liquor and Lottery or Division of Liquor Control as provided in this title.
(Amended 2013, No. 72, § 23; 2017, No. 83, § 6; 2018, No. 1 (Sp. Sess.), § 3.)
(a) First- or first- and third-class licensees or festival, special event, or educational sampling event permit holders, may sell alcoholic beverages between the hours of 8:00 a.m. and 2:00 a.m. the next morning.
(b)(1) Second-class licensees may sell malt beverages, vinous beverages, and ready-to-drink spirits beverages between the hours of 6:00 a.m. and 12:00 midnight.
(2) Fourth-class licensees may sell or furnish alcoholic beverages between the hours of 6:00 a.m. and 12:00 midnight.
(c) The Board of Liquor and Lottery may adopt rules controlling hours of consumption and sale under this section and may extend the hours of sale by holders of first- or first- and third-class licenses on New Year’s Day.
(Amended 1959, No. 17, eff. March 5, 1959; 1965, No. 31, eff. April 20, 1965; 1967, No. 98, eff. April 13, 1967; 1971, No. 15, eff. March 5, 1971; 1973, No. 34, § 1; 1975, No. 44, § 2, eff. April 15, 1975; 1979, No. 8; 1981, No. 27; 2001, No. 20, § 1; 2015, No. 51, § A.14, eff. Jan. 1, 2016; 2017, No. 83, § 7; 2018, No. 1 (Sp. Sess.), § 4; 2021, No. 177 (Adj. Sess.), § 2, eff. July 1, 2022.)
(a)(1) All spirits and fortified wines imported or transported into this State shall be imported or transported by and through the Board of Liquor and Lottery. A person importing or transporting or causing to be imported or transported into this State any spirits or fortified wines, or both, in violation of this section shall be imprisoned not more than one year or fined not more than $5,000.00, or both.
(2) Notwithstanding subdivision (1) of this subsection, a person may import or transport not more than eight quarts of spirits or fortified wines, or both, into this State in the person’s own private vehicle or in his or her actual possession at the time of importation without a license or permit, provided the beverages are not for resale.
(b)(1) Except as provided in sections 277, 278, and 283 of this title, all malt beverages, vinous beverages, or ready-to-drink spirits beverages, or a combination of malt beverages, vinous beverages, and ready-to-drink spirits beverages, imported or transported into this State shall be imported or transported by and through the holder of a wholesale dealer’s license issued by the Board of Liquor and Lottery. A person importing or transporting or causing to be imported or transported into this State any malt beverages, vinous beverages, or ready-to-drink spirits beverages in violation of this section shall be imprisoned not more than one year or fined not more than $1,000.00, or both.
(2) Notwithstanding subdivision (1) of this subsection, a person may import or transport not more than six gallons of malt beverages, vinous beverages, or ready-to-drink spirits beverages, or a combination of malt beverages, vinous beverages, and ready-to-drink spirits beverages, into this State in the person’s own private vehicle or in the person’s actual possession at the time of importation without a license or permit, provided the beverages are not for resale.
(Amended 1991, No. 138 (Adj. Sess.); 2005, No. 140 (Adj. Sess.), § 3, eff. May 10, 2006; 2007, No. 151 (Adj. Sess.), § 2, eff. May 19, 2008; 2013, No. 72, § 24; 2017, No. 83, § 8; 2018, No. 1 (Sp. Sess.), § 5; 2019, No. 73, § 2; 2021, No. 177 (Adj. Sess.), § 3, eff. July 1, 2022.)
(a) A keg shall be sold by a second-class or fourth-class licensee only under the following conditions:
(1) The keg shall be tagged in a manner and with a label approved by the Board of Liquor and Lottery. The label shall be supplied and securely affixed to the keg by the wholesale dealer or, in the case of a second-class license issued for the premises of a licensed manufacturer or a fourth-class licensee, by the manufacturer.
(2) A purchaser shall exhibit a valid authorized form of identification upon demand of a licensee or an agent of a licensee. If the purchaser fails to provide a valid authorized form of identification, the licensee shall be entitled to refuse to sell the keg to the individual. As used in this subsection, “a valid authorized form of identification” has the same meaning as in section 589 of this title.
(3) The purchaser shall complete a form, provided by the Board, that includes at least the name, address, and date of birth of the purchaser as they appear on the purchaser’s valid authorized form of identification and the identification number of the keg. The form shall also include the provisions of this section and the penalties for a violation of this section. The licensee shall retain the form for 90 days after return of the keg.
(4) The licensee shall collect a deposit of at least $25.00, which shall be returned to the purchaser upon return of the keg with the label intact.
(b) A licensee shall not:
(1) sell a keg without a legible label attached; or
(2) return a deposit on a keg that is returned without the label intact.
(c) Any person, other than a wholesale dealer or manufacturer, who intentionally removes or defaces the label attached to a keg shall be fined not more than $1,000.00.
(Added 1991, No. 255 (Adj. Sess.), § 1; amended 1997, No. 117 (Adj. Sess.), § 4; 2009, No. 102 (Adj. Sess.), § 2, eff. May 11, 2010; 2017, No. 83, § 9; 2018, No. 1 (Sp. Sess.), § 6; 2019, No. 73, § 3.)
Any individual who, within 60 days of purchase, fails to return a keg sold pursuant to section 64 of this chapter to the second-class or fourth-class licensee from which the keg was purchased shall be fined $200.00.
(Added 1991, No. 255 (Adj. Sess.), § 2; amended 2017, No. 83, § 120; 2019, No. 73, § 4.)
(a) An individual of legal age may, without obtaining a license under this title or paying State taxes or fees, produce malt or vinous beverages, or both, at home, provided that the amount of home-fermented beverages produced by that individual does not exceed the quantities limitation in 26 U.S.C. §§ 5042 and 5053.
(b) Home-fermented beverages produced pursuant to this section may be transported to and offered for tasting at an organized event, exhibition, or competition held for home-fermented beverages, provided all the following conditions are met:
(1) The sponsor provides written notice of the event to the Division not later than 10 days prior to the date of the event. The notice shall include a description of the delineated area in which the tastings will be offered and, in the case of a competition, the names of the judges hired by the sponsor.
(2) The public is not charged a fee for the tastings or for admission to the event, exhibition, or competition. However, the sponsor may charge a fee to the producers of home-fermented beverages for their participation in the event.
(3) Tastings of home-fermented beverages are offered only within the delineated area specified in the notice to the Division.
(4) No home-fermented beverages may be sold or offered for sale to the public, and all unused home-fermented beverages shall be disposed of by the permit holder.
(5) The event will be conducted in compliance with all the requirements of this title.
(6), (7) [Repealed.]
(c) A person who sponsors an organized event, exhibition, or competition under this section or participates in the event as a producer of home-fermented beverages who violates any provision of this section may be fined not more than $1,000.00.
(Added 1997, No. 158 (Adj. Sess.), § 5; amended 2007, No. 10, § 1, eff. April 26, 2007; 2017, No. 83, § 11; 2018, No. 1 (Sp. Sess.), § 7.)
(a) It shall be unlawful for a person to knowingly possess or sell a powdered alcohol product.
(b) A person that knowingly possesses a powdered alcohol product shall be fined not more than $500.00.
(c) A person that knowingly sells a powdered alcohol product shall be imprisoned not more than two years or fined not more than $10,000.00, or both.
(d) As used in this section, “powdered alcohol product” means any alcoholic powder that can be added to water or food.
(Added 2013, No. 202 (Adj. Sess.), § 7, eff. June 24, 2014; amended 2017, No. 83, § 12.)
[Redesignated]
2017, No. 83, § 68.
[Redesignated]
2017, No. 83, § 12.
[Repealed]
2015, No. 144 (Adj. Sess.), § 13b, eff. July 1, 2017.
(a)(1) The Department of Liquor and Lottery, created by 3 V.S.A. § 212, shall administer the laws relating to alcoholic beverages, tobacco, and the State Lottery. It shall include the Commissioner of Liquor and Lottery and the Board of Liquor and Lottery.
(2) The Board of Liquor and Lottery shall supervise and manage the sales of spirits and fortified wines pursuant to this title and the establishment and management of the State Lottery pursuant to 31 V.S.A. chapter 14.
(3)(A) The Department of Liquor and Lottery shall be under the immediate supervision and direction of the Commissioner of Liquor and Lottery.
(B) The Division of Liquor Control is created within the Department to administer and carry out the laws relating to alcohol and tobacco set forth in this title.
(C) The Division of Lottery is created within the Department to administer and carry out the laws relating to the State Lottery set forth in 31 V.S.A. chapter 14.
(D) The Commissioner, with the approval of the Governor, may appoint a Deputy Commissioner of Liquor and Lottery to supervise and direct the Division of Liquor Control and the Division of Lottery. The Deputy Commissioner shall be exempt from the classified service and shall serve at the pleasure of the Commissioner.
(b)(1) The Board of Liquor and Lottery shall consist of five persons. Not all members of the Board shall belong to the same political party.
(2)(A) With the advice and consent of the Senate, the Governor shall appoint the members of the Board for staggered three-year terms.
(B) The Governor shall fill a vacancy occurring during a term by an appointment for the unexpired term in accordance with the provisions of 3 V.S.A. § 257(b).
(C) A member’s term of office shall commence on February 1 of the year in which the member is appointed.
(3) A member of the Board may serve for no more than two consecutive full terms. A member who is appointed to fill a vacancy occurring during a term may serve two consecutive full terms in addition to the unexpired portion of the term during which the member is first appointed.
(4) The Governor shall designate a member of the Board to be its Chair. The Chair shall have general charge of the offices and employees of the Board.
(c) No member of the Board shall have a financial interest in any licensee under this title or 31 V.S.A. chapter 14, nor shall any member of the Board have a financial interest in any contract awarded by the Board or the Department of Liquor and Lottery.
(d) The Governor shall annually submit a budget for the Department to the General Assembly.
(Amended 1959, No. 329 (Adj. Sess.), § 32, eff. March 1, 1961; 2011, No. 115 (Adj. Sess.), § 8, eff. May 9, 2012; 2015, No. 144 (Adj. Sess.), § 14; 2018, No. 1 (Sp. Sess.), § 9; 2021, No. 177 (Adj. Sess.), § 39, eff. July 1, 2022.)
Notwithstanding any provision of 3 V.S.A. § 2004 to the contrary, after notice and hearing, the Governor may remove a member of the Board of Liquor and Lottery for incompetency, failure to discharge his or her duties, malfeasance, immorality, or other cause inimical to the general good of the State. In case of such removal, the Governor shall appoint a person to fill the unexpired term.
(Amended 2015, No. 144 (Adj. Sess.), § 15; 2018, No. 1 (Sp. Sess.), § 10.)
The Board shall meet as may be required for the performance of its duties. The time and place for each meeting shall be designated by the Chair of the Board. The Chair shall call a meeting upon the written request of any two members or upon the written request of the Governor.
(Amended 2017, No. 83, § 13.)
The Board shall supervise and manage the sale of spirits and fortified wines within the State in accordance with the provisions of this title and through the Commissioner of Liquor and Lottery shall:
(1)(A) Ensure that the laws relating to alcohol and alcoholic beverages are enforced, using for that purpose as much of the monies annually available to the Board of Liquor and Lottery as may be necessary.
(B) The Board of Liquor and Lottery and its agents and investigators shall act in this respect in collaboration with sheriffs, deputy sheriffs, constables, law enforcement officers certified as Level II or Level III pursuant to 20 V.S.A. chapter 151, and members of village and city police forces, control commissioners, the Attorney General, and State’s Attorneys.
(C) When the Board acts to enforce any section of this title or any administrative rule relating to sale to minors, its investigation on the alleged violation shall be forwarded to the Attorney General or the appropriate State’s Attorney whether or not there is an administrative finding of wrongdoing. Nothing in this section shall be deemed to affect the responsibility or duties of law enforcement officers or agencies with respect to the enforcement of the provisions of this title.
(D) The Commissioner or designee is authorized to prosecute administrative matters under this section and shall have the authority to enter into direct negotiations with a licensee to reach a proposed resolution or settlement of an alleged violation, subject to Board approval, or dismissal with or without prejudice.
(E) Ensure that the owner of a premises leased by a licensee is notified of licensee violations of alcoholic beverage laws.
(2) Supervise the opening and operation of local agencies for the sale and distribution of spirits and fortified wines.
(3) Locate, establish, and supervise the operation of a central liquor warehouse and office for the purpose of supplying spirits and fortified wines to local agencies established in accordance with this title and for the purpose of selling spirits and fortified wines to licensees of the third class and fortified wine permit holders.
(4) Supervise the financial transactions of the central liquor warehouse and office and the local agencies established in accordance with this title.
(5) Adopt rules necessary for the execution of its powers and duties and of the powers and duties of all persons under its supervision and control.
(6) Employ assistants, investigators, and other officers as it deems necessary, subject to the approval of the Governor.
(7) Fix bonds or other security to be given by licensees.
(8) Adopt rules concerning and issue licenses and permits under whatever terms and conditions it may impose for the furnishing, purchasing, selling, bartering, transporting, importing, exporting, delivering, and possessing of alcohol, including denatured alcohol, for manufacturing, mechanical, medicinal, and scientific purposes.
(9) Adopt rules regarding labeling and advertising of alcoholic beverages by adoption of federal regulations or otherwise and collaborate with federal agencies in respect to the adoption and the enforcement of the rules.
(10) Adopt rules relating to extension of credit by and to licensees or permittees.
(11) Adopt rules regarding intrastate transportation of malt beverages, vinous beverages, and ready-to-drink spirits beverages.
(12) Review the budget for the Department submitted by the Commissioner and approve or amend it for submission to the Governor.
(Amended 1959, No. 329 (Adj. Sess.), § 33, eff. March 1, 1961; 1975, No. 254 (Adj. Sess.), § 138; 1977, No. 54, § 1(a), eff. April 23, 1977; 1981, No. 246 (Adj. Sess.), § 1; 2011, No. 115 (Adj. Sess.), § 7; 2015, No. 23, § 80; 2015, No. 51, §§ A.5, eff. Jan. 1, 2016; 2017, No. 83, § 13; 2017, No. 93 (Adj. Sess.), § 4; 2018, No. 1 (Sp. Sess.), § 11; 2021, No. 177 (Adj. Sess.), § 4, eff. July 1, 2022; 2023, No. 17, § 3, eff. July 1, 2023.)
The Attorney General shall collaborate with the Board of Liquor and Lottery for the enforcement of the provisions of subdivision 104(1) of this title.
(Amended 2018, No. 1 (Sp. Sess.), § 12.)
(a)(1) With the advice and consent of the Senate, the Governor shall appoint from among not fewer than three candidates proposed by the Board of Liquor and Lottery a Commissioner of Liquor and Lottery for a term of four years.
(2) The Board shall review the applicants for the position of Commissioner of Liquor and Lottery and by a vote of the majority of the members of the Board shall select candidates to propose to the Governor. The Board shall consider each applicant’s administrative expertise and his or her knowledge regarding the business of distributing and selling alcoholic beverages and administering the State Lottery.
(b) The Commissioner shall serve at the pleasure of the Governor until the end of the term for which he or she is appointed or until a successor is appointed.
(Amended 1959, No. 329 (Adj. Sess.), § 33, eff. March 1, 1961; 2015, No. 144 (Adj. Sess.), § 16; 2018, No. 1 (Sp. Sess.), § 13.)
(a) The Commissioner of Liquor and Lottery shall direct and supervise the Department of Liquor and Lottery and, subject to the direction of the Board, shall see that the laws relating to alcohol and tobacco under this title and to the State Lottery under 31 V.S.A. chapter 14 are carried out. The Commissioner shall annually prepare a budget for the Department and submit it to the Board for review pursuant to subdivision 104(12) of this chapter.
(b) With respect to the laws relating to alcohol, the Commissioner shall:
(1) In towns that vote to permit the sale of spirits and fortified wines, establish local agencies as the Board of Liquor and Lottery shall determine. However, the Board shall not be obligated to establish an agency in every town that votes to permit the sale of spirits and fortified wines.
(2) Recommend rules subject to approval and adoption by the Board governing the hours during which local agencies shall be open for the sale of spirits and fortified wines; the qualifications of the agencies’ employees; and the business, operational, financial, and revenue standards that must be met for the establishment of an agency and its continued operation.
(3) Recommend rules subject to approval and adoption by the Board governing:
(A) the prices at which spirits shall be sold by local agencies, the method for their delivery, and the quantities of spirits that may be sold to any one person at any one time; and
(B) the minimum prices at which fortified wines shall be sold by local agencies and second-class licensees that hold fortified wine permits, the method for their delivery, and the quantities of fortified wines that may be sold to any one person at any one time.
(4) Supervise the quantities and qualities of spirits and fortified wines to be kept as stock in local agencies and recommend rules subject to approval and adoption by the Board regarding the filling of requisitions for spirits and fortified wines on the Commissioner of Liquor and Lottery.
(5) Purchase spirits and fortified wines for and in behalf of the Board of Liquor and Lottery; supervise their storage and distribution to local agencies, third-class licensees, and holders of fortified wine permits; and recommend rules subject to approval and adoption by the Board regarding the sale and delivery from the central liquor warehouse.
(6) Check and audit the income and disbursements of all local agencies and the central storage plant.
(7) Report to the Board regarding the State’s liquor control system and make recommendations for the promotion of the general good of the State.
(8) Devise methods and plans for eradicating intemperance and promoting the general good of the State and make effective such methods and plans as part of the administration of this title.
(Amended 1959, No. 329 (Adj. Sess.), § 33, eff. March 1, 1961; 1961, No. 30, eff. March 17, 1961; 1995, No. 148 (Adj. Sess.), § 4(c)(2), eff. May 6, 1996; 2001, No. 143 (Adj. Sess.), § 8, eff. June 21, 2002; 2015, No. 51, §§ A.6, eff. Jan. 1, 2016; 2015, No. 144 (Adj. Sess.), § 17; 2017, No. 83, § 13; 2018, No. 1 (Sp. Sess.), § 14.)
The Board of Liquor and Lottery shall administer and enforce the provisions of this title and is authorized and empowered to adopt rules and issue the necessary blanks, forms, and reports, except reports to the Commissioner of Taxes and to the Commissioner of Public Safety, as may be necessary to carry out the provisions of this title.
(Amended 2017, No. 83, § 13; 2018, No. 1 (Sp. Sess.), § 15; 2021, No. 105 (Adj. Sess.), § 151, eff. July 1, 2022.)
[Repealed]
2019, No. 104 (Adj. Sess.), § 3.
If a person desires to purchase any class, variety, or brand of spirits or fortified wine that a local agency or fortified wine permit holder does not have in stock, the Commissioner of Liquor and Lottery shall order the product upon the payment of a reasonable deposit by the purchaser in a proportion of the approximate cost of the order as prescribed by the rules of the Board of Liquor and Lottery.
(Amended 1959, No. 329 (Adj. Sess.), § 33, eff. March 1, 1961; 1961, No. 30, eff. March 17, 1961; 1995, No. 148 (Adj. Sess.), § 4(c)(2), eff. May 6, 1996; 2015, No. 51, § A.7, eff. Jan. 1, 2016; 2017, No. 83, § 13; 2018, No. 1 (Sp. Sess.), § 17.)
(a) If a proposed sale of real estate or a business in which a local agency store is located is contingent on the transfer of the agency store’s contract with the Board to the buyer, the seller and buyer may, prior to completing the sale, submit to the Division a request to approve the transfer of the agency store’s contract to the buyer. The request shall be accompanied by any information required by the Division.
(b) The Division shall review the request and evaluate the buyer based on the standards for evaluating an applicant for a new agency store contract.
(c) Within 30 days after receiving the request and all necessary information, the Division shall complete the evaluation of the proposed transfer and notify the parties of whether the agency store’s contract may be transferred to the buyer.
(d)(1) If the transfer is approved, the contract shall transfer to the buyer upon completion of the sale.
(2) If the transfer is denied, the seller may continue to operate the agency store pursuant to the existing contract with the Board.
(Added 1987, No. 188 (Adj. Sess.), § 3, eff. May 11, 1988; amended 2017, No. 83, § 13; 2018, No. 1 (Sp. Sess.), § 18.)
The Liquor Control Enterprise Fund is established. It shall consist of all receipts from the sale of spirits, fortified wines, and other items by the Board of Liquor and Lottery and Division of Liquor Control; fees paid to the Division of Liquor Control for the benefit of the Division; all other amounts received by the Division of Liquor Control for its benefit; and all amounts that are from time to time appropriated to the Division of Liquor Control.
(Added 1995, No. 63, § 278; amended 2005, No. 215 (Adj. Sess.), § 344; 2015, No. 51, § A.8, eff. Jan. 1, 2016; 2017, No. 83, § 13; 2018, No. 1 (Sp. Sess.), § 19.)
The administrative and operating costs of the Department of Liquor and Lottery that are not specific to either the Division of Liquor Control or the Division of Lottery and the cost of any functions that are shared in common by the two Divisions shall be allocated to and paid from the Liquor Control Enterprise Fund and the State Lottery Fund based on generally accepted accounting principles.
(Added 2018, No. 1 (Sp. Sess.), § 20.)
(a) Upon petition of not less than five percent of the legal voters of any town, filed with the town clerk in conformance with 17 V.S.A. § 2642, the warning of the annual or special meeting shall contain an article providing for a vote upon the following questions:
Shall licenses for the sale of malt beverages, vinous beverages, and ready-to-drink spirits beverages be granted in this town?
Shall spirits and fortified wines be sold in this town?
The vote under the article shall be by ballot in the following form:
Shall licenses for the sale of malt beverages, vinous beverages, and ready-to-drink spirits beverages be granted in this town?
Yes ___ No ___
Shall spirits and fortified wines be sold in this town?
Yes ___ No ___
(b) Licenses and permits for the sale of malt beverages, vinous beverages, ready-to-drink spirits beverages, and spirits and fortified wines shall be issued according to the vote at the annual town meeting held in March 1969 until a town votes otherwise.
(Amended 1967, No. 271 (Adj. Sess.), § 1, eff. April 15, 1969; 1977, No. 68, § 1; 2017, No. 83, § 14; 2021, No. 177 (Adj. Sess.), § 5, eff. July 1, 2022.)
After any annual town meeting in which a town votes on the questions set forth in section 161 of this title, the town clerk shall report promptly the results of the vote to the Board of Liquor and Lottery, upon forms furnished by the Board.
(Amended 1967, No. 271 (Adj. Sess.), § 2, eff. April 15, 1968; 2017, No. 83, § 14; 2018, No. 1 (Sp. Sess.), § 22.)
(a) Whenever a petition is filed under section 161 of this title, the town clerk shall print, at least two weeks before the annual or special meeting, blank ballots for the votes provided for in section 161 of this title in any color except yellow. The ballots shall be printed in a quantity equal to not less than one and one-tenth times the number of registered voters at the last preceding general election, as shown by the checklist.
(b) Upon each ballot shall be endorsed the words: “OFFICIAL BALLOT” followed by the name of the town in which it is to be used and the date of the election. The town clerk is authorized to use regular ballots for the requisite number of sample ballots by adding in type or print on the front of each ballot, the words: “SAMPLE BALLOT.”
(Amended 1967, No. 271 (Adj. Sess.), § 3, eff. April 15, 1969; 1977, No. 68, § 2; 1979, No. 200 (Adj. Sess.), § 117; 2017, No. 83, § 14.)
The board of civil authority, or the ballot clerks if directed by the board of civil authority, shall have charge of the ballots and perform the duties imposed upon ballot clerks and assisting clerks and be subject to the penalties imposed upon such officials by law. The town clerk shall perform the same duties in respect to the ballots as are imposed upon him or her by the provisions of law governing general elections, except as otherwise provided.
(Amended 2017, No. 83, § 14.)
The box for the reception of the ballots shall be opened at the hour the meeting is called and be closed when general voting ceases.
(Amended 1977, No. 68, § 3; 2017, No. 83, § 14.)
There shall be control commissioners in each town and city. The control commissioners shall be the selectboard members in each town and the city council members in each city. The town and city clerks shall be recording officers and clerks of the commissioners and be paid as provided in 24 V.S.A. §§ 932 and 933.
(Amended 2017, No. 83, § 14.)
(a) The local control commissioners shall administer the rules furnished to them by the Board of Liquor and Lottery, as necessary to carry out the purposes of this title. Except as provided in subsection (b) of this section, all applications for and forms of licenses and permits, and all rules, shall be prescribed by the Board of Liquor and Lottery, which shall prepare and issue the applications, forms, and rules.
(b) If the municipality so votes at a meeting duly warned for that purpose, the local control commissioners may, in the exercise of their authority under this title, condition the issuance of licenses and permits upon compliance, during the term of the license or permit, with any ordinance regulating entertainment or public nuisances that has been duly adopted by the municipality at a meeting duly warned for that purpose.
(c) The local control commissioners may, in the exercise of their authority under section 210 of this title, suspend or revoke a license or permit for a violation of any condition placed upon the issuance of the license or permit under subsection (b) of this section.
(Amended 1987, No. 103, § 2; 1997, No. 162 (Adj. Sess.), § 1, eff. April 29, 1998; 2017, No. 83, § 14; 2018, No. 1 (Sp. Sess.), § 23.)
In an unorganized town or gore, the supervisor shall be the control commissioner for the administration of the rules necessary to carry out the applicable provisions of this title. He or she may in his or her discretion issue and approve the issuance of licenses and permits as he or she finds will best serve the interests of the inhabitants. The provisions of sections 161-165 and 201 of this title, insofar as they relate to voting, shall not apply to unorganized towns and gores.
(Added 1959, No. 162, eff. May 6, 1959; amended 2017, No. 83, § 14.)
Licenses of the first or second class shall not be granted by the control commissioners or the Board of Liquor and Lottery to be exercised in any city or town, the voters of which vote “No” on the question of whether to permit the sale of malt beverages, vinous beverages, and ready-to-drink spirits beverages pursuant to section 161 of this title. Licenses of the third class shall not be granted by the Board of Liquor and Lottery to be exercised in any city or town, the voters of which vote “No” on the question of whether to sell fortified wines and spirits pursuant to section 161 of this title.
(Amended 2017, No. 83, § 20; 2018, No. 1 (Sp. Sess.), § 24; 2021, No. 177 (Adj. Sess.), § 6, eff. July 1, 2022.)
(a) No license of any class shall be granted to any enforcement officer or to any person acting in the officer’s behalf.
(b) A member of a local control commission to whom or in behalf of whom a first- or second-class license was issued by that commission shall not participate in any control commission action regarding any first- or second-class license. If a majority of the members of a local control commission is unable to participate in a control commission action regarding any first- or second-class license, that action shall be referred to the Board of Liquor and Lottery for investigation and action.
(c) An application for a first- or second-class license by or in behalf of a member of the local control commission or a complaint or disciplinary action regarding a first- or second-class license issued by a commission on which any member is a licensee shall be referred to the Board of Liquor and Lottery for investigation and action.
(Amended 1979, No. 115 (Adj. Sess.), § 1; 1981, No. 139 (Adj. Sess.), § 2; 1991, No. 66, § 1, eff. June 18, 1991; 2009, No. 10, § 2, eff. May 5, 2009; 2017, No. 83, § 21; 2018, No. 1 (Sp. Sess.), § 25.)
(a)(1) Except as provided in section 271 of this title, a packager, manufacturer, or rectifier licensed in Vermont or in another state; a certificate of approval holder; or a wholesale dealer shall not have any financial interest in the business of a first-, second-, or third-class licensee, and a first-, second-, or third-class licensee shall not have any financial interest in the business of a packager, manufacturer, or rectifier licensed in Vermont or in another state; a certificate of approval holder; or a wholesale dealer.
(2) Notwithstanding subdivision (1) of this subsection and except as otherwise provided in section 271 of this title, a manufacturer of malt beverages may have a financial interest in the business of a first- or second-class license, and a first- or second-class licensee may have a financial interest in the business of a manufacturer of malt beverages, provided the first- or second-class licensee does not purchase, possess, or sell the malt beverages produced by a manufacturer with which there is any financial interest. Any manufacturer of malt beverages that has a financial interest in a first- or second-class licensee and any first- or second-class licensee that has a financial interest in a manufacturer of malt beverages, as permitted under this subdivision, shall provide to the Division of Liquor Control and the applicable wholesale dealer written notification of that financial interest and the licensees involved. A wholesale dealer shall not be in violation of this section for delivering malt beverages to a first- or second-class licensee that is prohibited from purchasing, possessing, or selling those malt beverages under this section.
(b) An individual who is an employee of a wholesale dealer that does not hold a solicitor’s license may also be employed by a first- or second-class licensee on a paid or voluntary basis, provided that the employee does not exercise any control over, or participate in, the management of the first- or second-class licensee’s business or business decisions and that neither employment relationship results in the exclusion of any competitor wholesale dealer or any brand of alcoholic beverages of a competitor wholesale dealer.
(Amended 1979, No. 103 (Adj. Sess.), § 2, eff. April 2, 1980; 2001, No. 143 (Adj. Sess.), § 10, eff. June 21, 2002; 2003, No. 24, § 1, eff. May 14, 2003; 2003, No. 27, § 1, eff. May 17, 2003; 2007, No. 94 (Adj. Sess.), § 1; 2013, No. 64, § 4; 2013, No. 72, § 25; 2017, No. 83, § 22; 2018, No. 1 (Sp. Sess.), § 26.)
(a) The following fees shall be paid when applying for a new license or permit or to renew a license or permit:
(1) For a manufacturer’s or rectifier’s license to manufacture or rectify malt beverages; or vinous beverages and fortified wines; or spirits, fortified wines, and ready-to-drink spirits beverages, $285.00 for each license.
(2) For a packager’s license, $1,865.00.
(3) For a wholesale dealer’s license, $1,245.00 for each location.
(4) For a first-class license, $230.00.
(5) For a second-class license, $140.00.
(6) For a third-class license, $1,095.00 for an annual license and $550.00 for a six-month license. For a stand-alone third-class license, the issuing municipality may assess an additional $50.00 local processing fee.
(7) For a shipping license for malt beverages, vinous beverages, or ready-to-drink spirits beverages:
(A) in-state consumer shipping license, $330.00;
(B) out-of-state consumer shipping license, $330.00;
(C) vinous beverages retail shipping license, $250.00.
(8)(A) For a caterer’s license, $250.00.
(B) For a commercial catering license, $220.00.
(C) For a request to cater permit, $20.00.
(9) For each fourth-class license, $70.00.
(10) For an industrial alcohol distributor’s license, $220.00.
(11) For a special events permit, $35.00.
(12) For a sampling event permit, $125.00.
(13) For an alcoholic beverages tasting permit, $25.00.
(14) For a limited event permit, $250.00.
(15) For an outside consumption permit, $20.00.
(16) For a certificate of approval:
(A) for malt beverages, $2,485.00;
(B) for vinous beverages, $985.00;
(C) for ready-to-drink spirits beverages, $985.00.
(17) For a solicitor’s license, $70.00.
(18) For a vinous beverages storage license, $235.00.
(19) For a promotional railroad tasting permit, $20.00.
(20) For a special venue serving permit, $20.00.
(21) For a fortified wine permit, $100.00.
(22) For a retail delivery permit, $100.00.
(23) For a destination resort master license, $1,000.00.
(24) For a third-class license granted to the holder of a manufacturer’s or rectifier’s license, $230.00.
(b) Except for fees collected for first-, second-, and third-class licenses, the fees collected pursuant to subsection (a) of this section shall be deposited in the Liquor Control Enterprise Fund. The other fees shall be distributed as follows:
(1) Third-class license fees: 55 percent shall go to the Liquor Control Enterprise Fund, and 45 percent shall go to the General Fund and shall fund alcohol abuse prevention and treatment programs. The local processing fee for stand-alone third-class licenses shall be retained by the issuing municipality.
(2) First- and second-class license fees: At least 50 percent of first-class and second-class license fees shall go to the respective municipalities in which the licensed premises are located, and the remaining percentage of those fees shall go to the Liquor Control Enterprise Fund. A municipality may retain more than 50 percent of the fees that the municipality collected for first- and second-class licenses to the extent that the municipality has assumed responsibility for enforcement of those licenses pursuant to a contract with the Division. The Board of Liquor and Lottery shall adopt rules regarding contracts entered into pursuant to this subdivision.
(Amended 1971, No. 64, § 2; 1975, No. 44, § 3, eff. April 15, 1975; 1975, No. 195 (Adj. Sess.), § 1, eff. March 27, 1976; 1985, No. 159 (Adj. Sess.), § 2; 2001, No. 143 (Adj. Sess.), § 11, eff. June 21, 2002; 2005, No. 96 (Adj. Sess.), § 3, eff. March 9, 2006; 2005, No. 140 (Adj. Sess.), §§ 7, 8, eff. May 10, 2006; 2005, No. 202 (Adj. Sess.), § 2; 2007, No. 76, § 8; 2007, No. 151 (Adj. Sess.), § 4, eff. May 19, 2008; 2009, No. 102 (Adj. Sess.), § 6, eff. May 11, 2010; 2011, No. 52, § 77, eff. May 27, 2011; 2011, No. 115 (Adj. Sess.), § 6; 2013, No. 72, § 26; 2015, No. 51, § A.12, eff. Jan. 1, 2016; 2015, No. 144 (Adj. Sess.), § 3; 2015, No. 149 (Adj. Sess.), § 38; 2017, No. 83, § 23; 2018, No. 1 (Sp. Sess.), § 27; 2021, No. 70, § 1; 2021, No. 177 (Adj. Sess.), § 7, eff. July 1, 2022; 2023, No. 67, § 2, eff. July 1, 2023.)
(a) All permits, licenses, and certificates shall expire one year after the date of issuance.
(b) A permit, license, or certificate may be renewed as follows:
(1) A first-class or second-class license, and an outside consumption permit associated with a first-class license, may be renewed by:
(A) payment of the fee provided in section 204 of this title;
(B) submission to the local control commissioners of an application demonstrating that the licensee satisfies all applicable rules and requirements; and
(C) approval of the Board of Liquor and Lottery as provided in section 221, 222, or 227 of this title.
(2) All other permits, licenses, and certificates may be renewed by:
(A) payment of the fee provided in section 204 of this title; and
(B) submission to the Board of Liquor and Lottery or the Division, as appropriate, of an application demonstrating that the holder satisfies all applicable rules and requirements.
(Amended 1975, No. 44, § 4, eff. April 15, 1975; 1995, No. 63, § 278a; 2001, No. 143 (Adj. Sess.), § 12, eff. June 21, 2002; 2005, No. 202 (Adj. Sess.), § 3, eff. July 1, 2007; 2017, No. 83, § 24; 2018, No. 1 (Sp. Sess.), § 28; 2019, No. 154 (Adj. Sess.), § E.237.1, eff. Oct. 2, 2020.)
The control commissioners shall collect all fees for first- and second-class licenses and shall pay the fees to the Division and the city and town treasurers of the respective cities and towns where the fees are collected as provided in subsection 204(b) of this chapter. The portion of each fee paid to the city or town may be used as it may direct, less a fee of $5.00 to be retained by the city or town clerk as a fee for issuing and recording the license. Except as otherwise provided in sections 274 and 275 of this title, fees for all other licenses shall be paid to the Board of Liquor and Lottery.
(Amended 1971, No. 84, § 1; 1979, No. 161 (Adj. Sess.), § 1; 2001, No. 143 (Adj. Sess.), § 13, eff. June 21, 2002; 2017, No. 83, § 25; 2018, No. 1 (Sp. Sess.), § 29.)
If a licensee desires to change the location of its business before the expiration of its license, the licensee may submit an application to the Board of Liquor and Lottery, which may amend the license to cover the new premises without the payment of any additional fee.
(Amended 2017, No. 83, § 26; 2018, No. 1 (Sp. Sess.), § 30.)
All licenses or permits granted under this title shall be conspicuously displayed on the premises for which the license or permit is granted.
(Added 2017, No. 83, § 27.)
(a) If a licensee or permittee becomes bankrupt or dies before the expiration of its license or permit, the licensee’s or permittee’s trustee, executor, or administrator may sell the alcohol that came into its possession to a holder of a license or permit of the same class.
(b) If a license or permit is revoked under the provisions of this title, after the revocation, the licensee or permittee may sell the alcohol in its possession at the time of the revocation to a holder of a license or permit of the same class.
(c)(1) All sales under this section shall be made within 30 days after the bankruptcy, death, or revocation and shall include immediate and actual delivery of the alcohol.
(2) Notwithstanding subdivision (1) of this subsection, upon application of the executor or administrator of a deceased licensee or permittee, the Board may transfer the license or permit of the decedent to the executor or administrator without payment of any additional fee, and the executor or administrator may then carry on the business of the decedent under the license or permit until its expiration.
(d)(1) The holder of a manufacturer’s or rectifier’s license may pledge or mortgage alcoholic beverages manufactured or rectified by the licensee, and the pledgee or mortgagee may retain possession of the alcoholic beverages and, if the licensee defaults, may sell and dispose of the alcoholic beverages to persons to whom the licensee might lawfully sell the alcoholic beverages, subject to the same restrictions and regulations as the licensee and to any further restriction or rules prescribed by the Board of Liquor and Lottery with respect to advance notice to it of the sale and determination by it of the persons entitled to buy and the manner of the sale.
(2) Any sale pursuant to a default on a pledge or mortgage shall not be at public auction as required with respect to similar sales of other property but shall be upon not less than 10 days’ notice to the pledgor or mortgagor and for the highest amount that may be offered pursuant to the rules of the Board of Liquor and Lottery.
(Amended 2001, No. 143 (Adj. Sess.), § 14, eff. June 21, 2002; 2017, No. 83, § 28; 2018, No. 1 (Sp. Sess.), § 31.)
(a)(1) The control commissioners or the Board of Liquor and Lottery shall have power to suspend or revoke any permit or license granted pursuant to this title in the event the person holding the permit or license shall at any time during the term of the permit or license conduct its business in violation of this title, the conditions pursuant to which the permit or license was granted, or any rule prescribed by the Board of Liquor and Lottery.
(2) No revocation shall be made until the permittee or licensee has been notified and given a hearing before the Board of Liquor and Lottery, unless the permittee or licensee has been convicted by a court of competent jurisdiction of violating the provisions of this title.
(3) In the case of a suspension, the permittee or licensee shall be notified and given a hearing before the Board of Liquor and Lottery or the local control commissioners, whichever applies.
(4) Any decision to suspend or revoke a license shall be issued in writing and set forth the reasons for the suspension or revocation and, if applicable, the duration of the suspension.
(5) A tobacco license may not be suspended or revoked for a first-time violation. Suspension or revocation of a tobacco license shall not affect any liquor license held by the licensee.
(b)(1) In addition to the authority to suspend or revoke any permit or license, the Board of Liquor and Lottery may impose an administrative penalty of up to $7,500.00 per violation against a holder of a wholesale dealer’s license or a holder of a first-, second-, or third-class license for a violation of the conditions of the license or of this title or of any rule adopted by the Board.
(2) The administrative penalty may be imposed after a hearing before the Board or after the licensee has been convicted by a court of competent jurisdiction of violating the provisions of this title.
(3) The Board may also impose an administrative penalty under this subsection against a holder of a tobacco license of up to $250.00 for a first violation and up to $2,500.00 for subsequent violations.
(4) For the first violation during a tobacco or alcohol compliance check during any three-year period, a licensee or permittee shall receive a warning and be required to attend a Division server training class.
(c) For suspension or revocation proceedings involving a tobacco license or the imposition of an administrative penalty against a tobacco licensee under this section, the Commissioner, a Board member designated by the Chair, or a hearing officer designated by the Chair pursuant to section 211 of this title may conduct the hearing and render a decision.
(d)(1) The Board shall subpoena any person in this State to appear for a hearing or for a deposition in the same manner as prescribed for judicial procedures.
(2) Sheriffs and witnesses shall receive the same fees for the service of process and attendance before the Board as are paid in Superior Court.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1989, No. 197 (Adj. Sess.); 1991, No. 70, § 3, eff. May 1, 1992; 1993, No. 11, § 1, eff. April 27, 1993; 1997, No. 58, § 7; 2001, No. 147 (Adj. Sess.), § 1, eff. June 21, 2002; 2017, No. 83, § 29; 2018, No. 1 (Sp. Sess.), § 32; 2019, No. 73, § 5.)
(a) The Chair of the Board of Liquor and Lottery may appoint a hearing officer to conduct hearings pursuant to section 210 of this title. A hearing officer may be a member of the Board appointed under section 210 of this title.
(b) The hearing officer may administer oaths in all cases, so far as the exercise of that power is properly incidental to the performance of the hearing officer’s duty or that of the Board. A hearing officer may hold any hearing in any matter within the jurisdiction of the Board.
(c) The hearing officer shall make findings of fact in writing to the Board in the form of a proposal for decision. A copy of the proposal for decision shall be served upon the parties pursuant to 3 V.S.A. § 812. Judgment on the hearing officer’s proposal for decision shall be rendered by a majority of the Board.
(d) At least 10 days prior to a hearing, the hearing officer shall give written notice of the time and place of the hearing to all parties in the case and shall indicate either that the hearing will be before the Board or the name and title of the person designated to conduct the hearing.
(e) The Chair may appoint a hearing officer to hear and finally determine any complaint involving a tobacco license. In such a case, the hearing officer may impose administrative penalties as provided in subsection 210(b) of this title.
(Added 1997, No. 58, § 8; amended 2017, No. 83, § 30; 2018, No. 1 (Sp. Sess.), § 33.)
The Commissioner of Liquor and Lottery or the local control commissioners shall make complaint to the State’s Attorney or other designee of the legislative body of the municipality of any unlawful furnishing, selling, or keeping for sale of alcohol or alcoholic beverages and provide evidence in support of the complaint to the State’s Attorney or that municipal designee, who shall prosecute for the alleged violation.
(Amended 1959, No. 329 (Adj. Sess.), § 33, eff. March 1, 1961; 2017, No. 83, § 31; 2017, No. 93 (Adj. Sess.), § 5; 2018, No. 1 (Sp. Sess.), § 34.)
(a) A new first-class, second-class, third-class, fourth-class, or manufacturer’s or rectifier’s license or common carrier certificate shall not be granted until the applicant has attended a Division of Liquor Control in-person seminar or completed the appropriate Division of Liquor Control online training program for the purpose of being informed of the Vermont laws and rules pertaining to the purchase, storage, and sale of alcoholic beverages. A corporation, partnership, or association shall designate a director, partner, or manager who shall comply with the terms of this subsection.
(b)(1) Every holder of a first-class, second-class, third-class, fourth-class, or manufacturer’s or rectifier’s license or common carrier certificate shall complete the Division of Liquor Control in-person licensee training seminar or the appropriate Division of Liquor Control online training program at least once every two years. A corporation, partnership, or association shall designate a director, partner, or manager who shall comply with the terms of this subsection.
(2) A first-class, second-class, third-class, fourth-class, or manufacturer’s or rectifier’s license shall not be renewed unless the Division’s records show that the licensee has complied with the terms of this subsection.
(c)(1) Each licensee, permittee, or common carrier certificate holder shall ensure that every employee who is involved in the delivery, sale, or serving of alcoholic beverages completes a training program approved by the Division of Liquor Control before the employee begins delivering, serving, or selling alcoholic beverages and at least once every 24 months thereafter. Each licensee shall maintain written documentation, signed by each employee trained, of each training program conducted.
(2) A licensee may comply with this requirement by conducting its own training program on its premises using information and materials furnished or approved by the Division of Liquor Control. A licensee who fails to comply with the requirements of this subsection shall be subject to a suspension of the license issued under this title for not less than one day or a fine of not more than $100.00, or both.
(d) The following fees for Division of Liquor Control in-person or online seminars shall be paid:
(1) For a first-class or first- and third-class licensee seminar either in-person or online, $25.00 per person.
(2) For a second-class licensee seminar either in-person or online, $25.00 per person.
(3) For a combination first-class, first- and third-class, and second-class licensee seminar either in-person or online, $25.00 per person.
(4) For a manufacturer’s or rectifier’s or fourth-class licensee seminar either in-person or online, $10.00 per person.
(5) For common carrier seminars either in-person or online, $10.00 per person.
(6) For all special event, festival, educational sampling, and special venue serving permit holders for either an in-person or online seminar, $10.00 per person.
(e) Fees for all seminars listed in this section and under other sections of this title with regard to in-person or online training shall be deposited directly in the Liquor Control Enterprise Fund.
(Added 1987, No. 103, § 4; amended 1993, No. 11, § 3, eff. April 27, 1993; 1999, No. 163 (Adj. Sess.), § 8; 2013, No. 64, § 5; 2015, No. 149 (Adj. Sess.), § 39; 2017, No. 83, § 32; 2017, No. 113 (Adj. Sess.), § 38; 2018, No. 1 (Sp. Sess.), § 35; 2019, No. 73, § 6.)
(a) Any first-, second-, or third-class licensee whose license is suspended by the local control commissioners or suspended or revoked by the Board of Liquor and Lottery for selling or furnishing alcoholic beverages to a minor, to a person apparently under the influence of alcohol, to a person after legal serving hours, or to a person who it would be reasonable to expect would be intoxicated as a result of the amount of alcoholic beverages served to that person shall be required to furnish to the Commissioner a certificate of financial responsibility within 60 days of the commencement of the suspension or revocation or at the time of reinstatement of the license, whichever is later. Financial responsibility may be established by any one or a combination of the following: insurance, surety bond, or letter of credit. Coverage shall be maintained at not less than $25,000.00 per occurrence and $50,000.00 aggregate per occurrence. Proof of financial responsibility shall be required for license renewal for the three years following the suspension or revocation.
(b)(1) Proof of financial responsibility and completion of the licensee education program established in section 213 of this title shall be conditions for a licensee to be permitted to resume operation after a suspension or revocation for any of the reasons in subsection (a) of this section.
(2) However, at the discretion of the suspending or revoking authority, the licensee may receive a provisional license prior to the time these conditions are met in order to allow for compliance with the education requirement or to obtain the certificate of financial responsibility. A provisional license may not be issued for a period exceeding 60 days.
(Added 1987, No. 103, § 3; amended 2017, No. 83, § 33; 2018, No. 1 (Sp. Sess.), § 36.)
Subject to the approval of the Board, the Commissioner 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 to review applications for any liquor or tobacco license issued under this title.
(Added 2021, No. 177 (Adj. Sess.), § 37, eff. July 1, 2022.)
(a)(1) With the approval of the Board of Liquor and Lottery, the control commissioners may grant a first-class license to a retail dealer for the premises where the dealer carries on business if the retail dealer submits an application and pays the fee provided in section 204 of this title and satisfies the Board that the premises:
(A) are leased, rented, or owned by the retail dealer; and
(B) are devoted primarily to dispensing meals to the public and have adequate and sanitary space and equipment for preparing and serving meals, except in the case of clubs or holders of a manufacturer’s or rectifier’s license.
(2) The Board of Liquor and Lottery may grant a first-class license to a boat or railroad dining car if the person that operates it submits an application and pays the fee provided in section 204 of this title.
(3) The Division shall post notice of pending applications on its website.
(b)(1) A first-class license permits the holder to sell malt beverages, vinous beverages, and ready-to-drink spirits beverages for consumption only on those premises.
(2) Except as otherwise provided pursuant to sections 271 and 278 of this title, a first-class license holder shall purchase all malt beverages, vinous beverages, and ready-to-drink spirits beverages sold pursuant to the license from Vermont wholesale dealers or packagers.
(c) A retail dealer carrying on business in more than one place shall acquire a first-class license for each place where the retail dealer sells malt beverages, vinous beverages, or ready-to-drink spirits beverages for consumption on the premises.
(d) Partially consumed bottles of vinous beverages or specialty beers that were purchased with a meal may be removed from first-class licensed premises, provided the beverages are recapped or resealed.
(e) No person under 18 years of age shall be employed by a first-class licensee as:
(1) a bartender for the purpose of preparing, mixing, or dispensing alcoholic beverages; or
(2) a waitress or waiter for the purpose of serving alcoholic beverages.
(f)(1) A holder of a first-class license may contract with another person to prepare and dispense food on the licensed premises.
(2) The first-class license holder shall provide to the Division written notification five business days prior to the start of the contract that includes the following information:
(A) the name and address of the license holder;
(B) a signed copy of the contract;
(C) the name and address of the person contracted to provide the food;
(D) a copy of the person’s license from the Department of Health for the facility in which food is served; and
(E) the person’s rooms and meals tax certificate from the Department of Taxes.
(3) The holder of the first-class license shall notify the Division within five business days of the termination of the contract to prepare and dispense food. The first-class licensee shall be responsible for controlling all conduct on the premises at all times, including in the area in which the food is prepared and stored.
(g) A hotel that holds a first-class license and places a minibar in any room of a registered guest shall ensure that the minibar is locked and that access to the minibar is restricted to guests of legal drinking age.
(h) The holder of a first-class license may permit a customer to:
(1) possess or carry no more than two open containers of alcoholic beverages; and
(2) maintain control over his or her open container of alcoholic beverages at all times while on the licensed premises.
(Added 2017, No. 83, § 34; amended 2018, No. 1 (Sp. Sess.), § 37; 2019, No. 146 (Adj. Sess.), § 1, eff. July 13, 2020; 2021, No. 177 (Adj. Sess.), § 8, eff. July 1, 2022.)
(a)(1) With the approval of the Board of Liquor and Lottery, the control commissioners may grant a second-class license to a retail dealer for the premises where the dealer carries on business if the retail dealer submits an application and pays the fee provided in section 204 of this title and satisfies the Board that the premises:
(A) are leased, rented, or owned by the retail dealer; and
(B) are a safe, sanitary, and proper place from which to sell malt and vinous beverages.
(2) The Division shall post notice of pending applications on its website.
(b)(1) A second-class license permits the holder to export malt beverages, vinous beverages, and ready-to-drink spirits beverages and to sell malt beverages, vinous beverages, and ready-to-drink spirits beverages to the public from the licensed premises for consumption off the premises.
(2) The Division of Liquor Control may grant a second-class licensee a fortified wine permit pursuant to section 225 of this chapter or a retail delivery permit pursuant to section 226 of this chapter.
(3) Except as otherwise provided pursuant to sections 225, 271, and 278 of this title, a second-class license holder shall purchase all malt beverages, vinous beverages, and ready-to-drink spirits beverages sold pursuant to its license from Vermont wholesale dealers or packagers.
(c) A retail dealer carrying on business in more than one place shall be required to acquire a second-class license for each place where the retail dealer sells malt beverages, vinous beverages, and ready-to-drink spirits beverages.
(Amended 1971, No. 90, § 2; 1985, No. 99 (Adj. Sess.), § 3; 1985, No. 159 (Adj. Sess.), § 3; 1987, No. 148 (Adj. Sess.); 1993, No. 11, § 2, eff. April 27, 1993; 1999, No. 39, § 1; 2009, No. 102 (Adj. Sess.), § 4, eff. May 11, 2010; 2011, No. 52, § 60, eff. May 27, 2011; 2011, No. 115 (Adj. Sess.), § 1a; 2013, No. 64, § 3; 2013, No. 202 (Adj. Sess.), § 4, eff. June 24, 2014; 2015, No. 51, § A.9, eff. Jan. 1, 2016; 2015, No. 144 (Adj. Sess.), § 4; 2017, No. 83, § 35; 2018, No. 1 (Sp. Sess.), § 38; 2021, No. 177 (Adj. Sess.), § 9, eff. July 1, 2022.)
(a) The Board of Liquor and Lottery may grant to a person who operates a hotel, restaurant, club, boat, or railroad dining car, or who holds a manufacturer’s or rectifier’s license, a third-class license if:
(1) the person files an application accompanied by the fee provided in section 204 of this title for the premises in which the business of the hotel, restaurant, club, or manufacturer or rectifier is carried on or for the boat or railroad dining car;
(2) the local control commissioners have approved the application; and
(3) the applicant satisfies the Board that:
(A) the applicant is the bona fide owner or lessee of the premises, boat, or railroad dining car;
(B) except in the case of clubs or holders of a manufacturer’s or rectifier’s license, the premises, boat, or railroad dining car has adequate and sanitary space and equipment for preparing and serving meals to the public; and
(C) the premises, boat, or railroad dining car is operated for the purpose covered by the license.
(b) A third-class license holder may sell spirits and fortified wines for consumption only on the licensed premises, boat, or railroad dining car.
(c) The holder of a third-class license may permit a customer to:
(1) possess or carry no more than two open containers of alcoholic beverages; and
(2) maintain control over his or her open container of alcoholic beverages at all times while on the licensed premises, boat, or railroad dining car.
(d)(1) Except as otherwise provided in subdivisions (2) and (3) of this subsection, a person who holds a third-class license shall purchase from the Board of Liquor and Lottery all spirits and fortified wines dispensed in accordance with the provisions of the third-class license and this title.
(2) For a third-class license issued for a dining car or boat, the licensee may procure outside the State of Vermont spirits and fortified wines that are sold pursuant to the license.
(3) For a third-class license that is issued to a licensed manufacturer or rectifier of spirits or fortified wines, the licensee shall not be required to purchase from the Board of Liquor and Lottery spirits and fortified wines that it has manufactured or rectified before selling them pursuant to its third-class license.
(e) No person under 18 years of age shall be employed by a third-class licensee as:
(1) a bartender for the purpose of preparing, mixing, or dispensing alcoholic beverages; or
(2) a waitress or waiter for the purpose of serving alcoholic beverages.
(Amended 1971, No. 90, § 3; 2003, No. 79 (Adj. Sess.), § 2; 2005, No. 96 (Adj. Sess.), § 1, eff. March 9, 2006; 2015, No. 51, § A.10, eff. Jan. 1, 2016; 2015, No. 144 (Adj. Sess.), § 6; 2017, No. 83, § 36; 2017, No. 113 (Adj. Sess.), § 39; 2018, No. 1 (Sp. Sess.), § 39; 2019, No. 73, § 46; 2019, No. 146 (Adj. Sess.), § 2, eff. July 13, 2020.)
(a) The Board of Liquor and Lottery may grant up to a combined total of 20 fourth-class licenses to a manufacturer or rectifier that submits an application and the fee provided in section 204 of this title.
(b) At each licensed location, a fourth-class licensee may sell by the unopened container or distribute by the glass, with or without charge, alcoholic beverages manufactured by the licensee.
(1) A licensee may, for consumption at the licensed premises or location, distribute the following amounts of alcoholic beverages to a retail customer:
(A) not more than two ounces of malt beverages, vinous beverages, or ready-to-drink spirits beverages with a total of eight ounces; and
(B) no more than one-quarter ounce of spirits or fortified wine with a total of one ounce.
(2) At a fourth-class license location at the licensee’s manufacturing premises, the licensee may distribute by the glass up to four mixed drinks containing a combined total of no more than one ounce of spirits or fortified wine to each retail customer for consumption only on the licensed premises.
(3) At each licensed location, a fourth-class licensee may, pursuant to section 64 of this title, sell malt beverages or vinous beverages, or both, by the keg.
(c)(1) At only one fourth-class license location, a licensed manufacturer or rectifier may sell by the unopened container or distribute by the glass, with or without charge, alcoholic beverages produced by no more than five additional manufacturers or rectifiers, provided these beverages are purchased on invoice from the manufacturer or rectifier.
(2) A manufacturer or rectifier may sell its product to no more than five additional manufacturers or rectifiers.
(d) A fourth-class license issued for a farmers’ market location shall be valid for all dates of operation for the specific farmers’ market location.
(e) Rules applicable to second-class licenses and pertaining to financial responsibility, age of employees, the selling and furnishing to apparently intoxicated persons, and leases of businesses shall all apply to fourth-class licenses.
(f) Signs and advertising of fourth-class licenses at tasting rooms and retail shops other than at the manufacturer’s or rectifier’s premises shall indicate that the premises are a “tasting room and retail shop” and shall be in lettering not less than 75 percent of the height and width of the lettering setting forth the name of the licensee or establishment.
(Added 1993, No. 112 (Adj. Sess.), § 3, eff. Feb. 18, 1994; amended 2017, No. 83, § 37; 2018, No. 1 (Sp. Sess.), § 40; 2021, No. 177 (Adj. Sess.), § 10, eff. July 1, 2022; 2023, No. 67, § 3, eff. July 1, 2023.)
(a)(1) The Division of Liquor Control may grant a fortified wine permit to a second-class licensee if the licensee files an application accompanied by the fee provided in section 204 of this title.
(2) The Division of Liquor Control shall issue not more than 150 fortified wine permits in any single year.
(b)(1) A fortified wine permit holder may sell fortified wines to the public from the licensed premises for consumption off the premises.
(2) A fortified wine permit holder shall purchase all fortified wines to be offered for sale to the public pursuant to the permit through the Board of Liquor and Lottery at a price equal to not more than 75 percent of the current retail price for the fortified wine established by the Commissioner pursuant to subdivision 107(b)(3)(B) of this title.
(Added 2017, No. 83, § 39; amended 2018, No. 1 (Sp. Sess.), § 41.)
(a)(1) The Division of Liquor Control may grant a retail delivery permit to a second-class licensee if the licensee files an application accompanied by the fee provided in section 204 of this title.
(2) Notwithstanding subdivision (1) of this subsection, the Division of Liquor Control shall not grant a retail delivery permit in relation to a second-class license issued to a licensed manufacturer or rectifier for the manufacturer’s or rectifier’s premises.
(b) A retail delivery permit holder may deliver malt beverages, vinous beverages, and ready-to-drink spirits beverages sold from the licensed premises for consumption off the premises to an individual who is 21 years of age or older subject to the following requirements:
(1) Deliveries shall only be made by the permit holder or an employee of the permit holder.
(2) Deliveries shall only occur between the hours of 9:00 a.m. and 5:00 p.m.
(3) Deliveries shall only be made to a physical address located in Vermont.
(4) An employee of a retail delivery permit holder shall not be permitted to make deliveries of malt beverages, vinous beverages, or ready-to-drink spirits beverages pursuant to the permit unless the employee has completed a training program approved by the Division pursuant to section 213 of this chapter.
(5) Malt beverages, vinous beverages, and ready-to-drink spirits beverages delivered pursuant to a retail delivery permit shall be for personal use and not for resale.
(Added 2017, No. 83, § 41; amended 2018, No. 1 (Sp. Sess.), § 42; 2021, No. 177 (Adj. Sess.), § 11, eff. July 1, 2022.)
Pursuant to the rules of the Board of Liquor and Lottery, the Division of Liquor Control may grant an outside consumption permit to the holder of a first-class, first- and third-class, or fourth-class license for all or part of the outside premises of the license holder if the permit is approved by the local control commissioners and the Board.
(Added 1993, No. 181 (Adj. Sess.), § 1, eff. June 11, 1994; amended 1997, No. 158 (Adj. Sess.), § 2; 2011, No. 115 (Adj. Sess.), § 5; 2017, No. 83, § 44; 2018, No. 1 (Sp. Sess.), § 43.)
(a) The holder of a first-class license may serve a sampler flight of up to 32 ounces in the aggregate of malt beverages or hard ciders to a single customer at one time.
(b) The holder of a first-class license may serve a sampler flight of up to 12 ounces in the aggregate of vinous beverages or ready-to-drink spirits beverages to a single customer at one time.
(c) The holder of a third-class license may serve a sampler flight of up to four ounces in the aggregate of spirits or fortified wines to a single customer at one time.
(Added 2017, No. 83, § 45; amended 2021, No. 177 (Adj. Sess.), § 12, eff. July 1, 2022; 2023, No. 67, § 4, eff. July 1, 2023.)
(a)(1) Except as otherwise provided in subdivisions (2) and (3) of this subsection, a club shall be permitted to obtain a license under this title if it has existed for at least two consecutive years prior to the date of its application.
(2) A club whose officers and members consist solely of veterans of the U.S. Armed Forces or a subordinate lodge or local chapter of any national fraternal order, which fulfills all requirements of this section except that it has not been in existence for at least two consecutive years, shall be permitted to obtain a license under this title if it has existed for at least six months prior to the date of its application.
(3) A club that is located on and integrally associated with at least a regulation nine-hole golf course shall be permitted to obtain a license under this title if it has existed for at least six months prior to the date of its application.
(b) The premises of a club that is licensed pursuant to this title may be used or leased by a nonmember as a location for a social event as if it were any other licensed commercial establishment.
(c)(1) Before May 1 of each year, each club shall file with the Board of Liquor and Lottery a list of the names and residences of its members and a list of its officers.
(2) Its affairs and management shall be conducted by a board of directors, executive committee, or similar body chosen by the members at its annual meeting.
(3)(A) A club may provide for a salary for members, officers, agents, or employees of the club by a vote at annual meetings by the club’s members, directors, or other governing body and shall report the salary set for the members, officers, agents, or employees to the Board of Liquor and Lottery.
(B) No member, officer, agent, or employee of a club shall be paid, or directly or indirectly receive, in the form of salary or other compensation, any profits from the disposition or sale of alcoholic beverages to the club’s members or guests introduced by members beyond the amount of any salary that may be fixed and voted pursuant to subdivision (A) of this subdivision (3).
(4) An auxiliary member of a club may invite one guest at any one time.
(5)(A) An officer or director of a club may perform the duties of a bartender without receiving any payment for that service, provided the officer or director is in compliance with the requirements of this title that relate to service of alcoholic beverages.
(B) An officer, member, or director of a club may volunteer to perform services at the club other than serving alcoholic beverages, including seating patrons and checking identification, without receiving payment for those services.
(6) An officer, member, or director of a club who volunteers his or her services shall not be considered to be an employee of the club.
(Amended 2017, No. 83, § 46; 2018, No. 1 (Sp. Sess.), § 44.)
(a) The Board of Liquor and Lottery and the local control commissioners may authorize:
(1) First- and third-class licensees to sell malt beverages, vinous beverages, and spirits-based prepared drinks for off-premises consumption. All sales of alcoholic beverages for off-premises consumption must be accompanied by a food order.
(2) Second-class licensees to provide curbside pickup of unopened containers of the alcoholic beverages that the licensee is permitted to sell from the licensed premises pursuant to section 222 of this subchapter.
(3) Fourth-class licensees to provide curbside pickup of unopened containers of the alcoholic beverages that the licensee is permitted to sell from the licensed location pursuant to section 224 of this subchapter.
(b) For any alcoholic beverage sold pursuant to subdivision (a)(1) of this section, the first- or third-class licensee shall provide the alcoholic beverage in a container:
(1) with a securely affixed tamper-evident seal; and
(2) bearing a label that:
(A) states that the beverage contains alcohol; and
(B) lists the ingredients and serving size.
(c) A licensee may sell alcoholic beverages pursuant to this section between 10:00 a.m. and 11:00 p.m.
(d) The Board of Liquor and Lottery may adopt rules and forms necessary to implement this section.
(Added 2021, No. 70, § 2.)
[Redesignated]
2017, No. 83, § 23.
[Redesignated]
2017, No. 83, § 24.
[Redesignated]
2017, No. 83, § 25.
[Redesignated]
2017, No. 83, § 26.
[Redesignated]
2017, No. 83, § 28.
[Redesignated]
2017, No. 83, § 29.
[Redesignated]
2017, No. 83, § 30.
[Redesignated]
2017, No. 83, § 31.
[Redesignated]
2017, No. 83, § 47.
[Redesignated]
2017, No. 83, § 44.
[Redesignated]
2017, No. 83, § 32.
[Redesignated]
2017, No. 83, § 33.
(a) The Board of Liquor and Lottery may issue a caterer’s license or a commercial catering license to a person who holds a first-class license or first- and third-class licenses.
(b) The Board of Liquor and Lottery shall adopt rules as necessary to effectuate the purposes of this section.
(Added 1975, No. 44, § 5, eff. April 15, 1975; amended 1987, No. 188 (Adj. Sess.), § 4, eff. May 11, 1988; 2011, No. 115 (Adj. Sess.), § 4; 2015, No. 23, § 81; 2017, No. 83, § 47; 2018, No. 1 (Sp. Sess.), § 45.)
(a) The Board of Liquor and Lottery may grant a destination resort master license to a person that operates a destination resort if the applicant files an application with the Board of Liquor and Lottery accompanied by the license fee provided in section 204 of this title. In addition to any information required pursuant to rules adopted by the Board, the application shall:
(1) designate all licensed caterers and commercial caterers that are proposed to be permitted to cater individual events within the boundaries of the resort pursuant to the destination resort master license;
(2) demonstrate that the destination resort:
(A) contains at least 100 acres of land; and
(B) offers at least 50 units of sleeping accommodations; and
(3) include a plan of the destination resort that sets forth:
(A) the destination resort boundaries;
(B) the ownership of the destination resort lands;
(C) the location and general design of buildings and other improvements within the resort boundaries; and
(D) the location of any sports and recreational facilities within the resort boundaries.
(b) A licensee may, upon five days’ notice to the Division, amend the list of licensed caterers and commercial caterers that are designated in the destination resort master license.
(c) The holder of the destination resort master license shall, at least two days prior to the date of the event, provide the Division and local control commissioners with written notice of an event within the resort boundaries that will be catered pursuant to the master license. A licensed caterer or commercial caterer that is designated in the master license shall not be required to obtain a request-to-cater permit to cater an event occurring within the destination resort boundaries if the master licensee has provided the Division and local control commissioners with the required notice pursuant to this subsection.
(d) Real estate of a destination resort master license holder that is not contiguous with the license holder’s principal premises or is located in a different municipality from the license holder’s principal premises may be included in the destination resort’s boundaries if it is clearly identified and delineated on the plan of the destination resort that is submitted pursuant to subsection (a) of this section.
(Added 2015, No. 144 (Adj. Sess.), § 7; amended 2018, No. 1 (Sp. Sess.), § 46.)
(a) The Division of Liquor Control may issue a request-to-cater permit to the holder of a caterer’s license or commercial caterer’s license if the licensee:
(1) submits an application for the permit on a form prescribed by the Commissioner;
(2) receives approval for the proposed event from the local control commissioners; and
(3) pays the fee required pursuant to section 204 of this title.
(b) A request-to-cater permit shall authorize a licensed caterer or commercial caterer to serve alcoholic beverages at an individual event as set forth in the permit.
(Added 2017, No. 83, § 48; amended 2018, No. 1 (Sp. Sess.), § 47.)
(a) The Division of Liquor Control may grant a limited event permit to a person if:
(1) the limited event is also approved by the local control commissioners; and
(2) at least 15 days prior to the event, the applicant submits an application to the Division in a form required by the Commissioner that is accompanied by the fee provided in section 204 of this title.
(b)(1) A limited event permit holder may purchase invoiced volumes of malt beverages, vinous beverages, ready-to-drink spirits beverages, fortified wines, or spirits, or all five, directly from a manufacturer, packager, wholesale dealer, or importer licensed in Vermont or a manufacturer or packager that holds a federal Basic Permit or Brewer’s Notice or evidence of licensure in a foreign country that is satisfactory to the Board.
(2) The invoiced volumes of alcoholic beverages may be transported into the site and sold by the glass to the public by the permit holder or the permit holder’s employees and volunteers only during the event.
(c) Not more than four limited event permits shall be issued annually to the same person, and each permit shall be valid for not more than four consecutive days.
(d) The permit holder shall be subject to the provisions of this title, including section 214 of this title, and the rules of the Board regarding the sale of alcoholic beverages. The permit holder shall pay the tax on the alcoholic beverages served at the event pursuant to section 421 of this title.
(Amended 2001, No. 143 (Adj. Sess.), § 9, eff. June 21, 2002; 2005, No. 96 (Adj. Sess.), § 2, eff. March 9, 2006; 2007, No. 10, § 2, eff. April 26, 2007; 2015, No. 51, § A.11, eff. Jan. 1, 2016; 2017, No. 83, § 38; 2018, No. 1 (Sp. Sess.), § 48; 2019, No. 14, § 8, eff. April 30, 2019; 2021, No. 177 (Adj. Sess.), § 13, eff. July 1, 2022; 2023, No. 67, § 5, eff. July 1, 2023.)
(a)(1) The Division of Liquor Control may issue a special event permit if the application is submitted to the Division of Liquor Control with the fee provided in section 204 of this title at least five days prior to the date of the event.
(2) A special event permit shall be valid for the duration of each public event or four days, whichever is shorter.
(b)(1) A special event permit holder may sell alcoholic beverages manufactured or rectified by the permit holder by the glass within the event boundaries or the unopened bottle.
(2) For purposes of tasting, a special event permit holder may distribute beverages manufactured or rectified by the permit holder with or without charge, provided the beverages are distributed:
(A) by the glass; and
(B) in quantities of not more than two ounces per product and eight ounces total of malt beverages, vinous beverages, or ready-to-drink spirits beverages and not more than one ounce in total of spirits or fortified wines to each individual.
(c) A licensed manufacturer or rectifier may be issued not more than 20 special event permits for the same physical location in a calendar year.
(Added 2017, No. 83, § 49; amended 2018, No. 1 (Sp. Sess.), § 49; 2019, No. 73, § 47, eff. July 1, 2021; 2021, No. 177 (Adj. Sess.), § 14, eff. July 1, 2022; 2023, No. 156 (Adj. Sess.), § 6, eff. July 1, 2024.)
(a) The Division of Liquor Control may grant a sampling event permit if the applicant has:
(1) received approval from the local control commissioners;
(2) submitted a request for the permit to the Division in a form required by the Commissioner at least 15 days prior to the event; and
(3) paid the fee provided in section 204 of this title.
(b) An event required to be permitted under this section is any event that is open to the public for which the primary purpose is to serve one or more of the following: malt beverages, vinous beverages, ready-to-drink spirits beverages, fortified wines, or spirits.
(c) A sampling event permit holder is permitted to conduct an event that is open to the public at which one or more of the following are served: malt beverages, vinous beverages, ready-to-drink spirits beverages, fortified wines, or spirits.
(d) The permit holder shall ensure the following:
(1) Attendees at the sampling event shall be required to pay an entry fee of not less than $5.00.
(2)(A) Malt beverages and hard ciders for sampling shall be offered in glasses that contain not more than 12 ounces with not more than 60 ounces served to any patron at one event.
(B) Vinous beverages or ready-to-drink spirits beverages for sampling shall be offered in glasses that contain not more than five ounces with not more than 25 ounces served to any patron at one event.
(C) Fortified wines for sampling shall be offered in glasses that contain not more than three ounces with not more than 15 ounces served to any patron at one event.
(D) Spirits for sampling shall be offered in glasses that contain not more than one ounce with not more than five ounces served to any patron at one event.
(E) Patrons attending a sampling event where combinations of malt beverages, vinous beverages, ready-to-drink spirits beverages, fortified wines, or spirits are mutually sampled shall not be served more than a combined total of six U.S. standard drinks containing 3.6 fluid ounces or 84 grams of pure ethyl alcohol.
(3) The event shall be conducted in compliance with all the requirements of this title.
(e)(1) A sampling event permit holder may purchase invoiced volumes of malt beverages, vinous beverages, or ready-to-drink spirits beverages directly from a manufacturer, wholesale dealer, or packager licensed in Vermont or a manufacturer, wholesale dealer, or packager that holds a federal Basic Permit or Brewers Notice or evidence of licensure in a foreign country that is satisfactory to the Board.
(2) The invoiced volumes of malt beverages, vinous beverages, or ready-to-drink spirits beverages may be transported to the site and sold by the glass to the public by the permit holder or its employees and volunteers only during the event.
(f) A sampling event permit holder shall be subject to the provisions of this title, including section 214 of this title, and the rules of the Board regarding the sale of the alcoholic beverages and shall pay the tax on the malt beverages, vinous beverages, or ready-to-drink spirits beverages pursuant to section 421 of this title.
(g) A person shall be granted not more than four sampling event permits per year, and each permit shall be valid for not more than four consecutive days.
(Added 2017, No. 83, § 50; amended 2018, No. 1 (Sp. Sess.), § 50; 2021, No. 70, § 3; 2021, No. 177 (Adj. Sess.), § 15, eff. July 1, 2022; 2023, No. 67, § 6, eff. July 1, 2023; 2023, No. 156 (Adj. Sess.), § 5, eff. June 4, 2024.)
[Subsection (a) effective until July 1, 2026; see also subsection (a) effective July 1, 2026 set out below.]
(a) The Division of Liquor Control may grant an art gallery, retail establishment, public library, or museum a special venue serving permit if the applicant has:
(1) received approval from the local control commissioners;
(2) submitted a request for a permit to the Division in a form required by the Commissioner at least five days prior to the event; and
(3) paid the fee provided in section 204 of this title.
[Subsection (a) effective July 1, 2026; see also subsection (a) effective until July 1, 2026 set out above.]
(a) The Division of Liquor Control may grant an art gallery, public library, or museum a special venue serving permit if the applicant has:
(1) received approval from the local control commissioners;
(2) submitted a request for a permit to the Division in a form required by the Commissioner at least five days prior to the event; and
(3) paid the fee provided in section 204 of this title.
(b) A permit holder may purchase malt beverages, vinous beverages, or ready-to-drink spirits beverages directly from a licensed retailer.
(c) A permit holder shall be subject to the provisions of this title and the rules of the Board regarding the service of alcoholic beverages. A permit holder shall be authorized to serve, but not sell, alcoholic beverages for not more than six hours and solely for consumption on the permitted premises.
(d) A public library or museum may only be granted a permit pursuant to this section for an event held for a charitable or educational purpose at which malt beverages, vinous beverages, and ready-to-drink spirits beverages will be served for a period of not more than six hours.
[Subsection (e) effective until July 1, 2026; see also subsection (e) effective July 1, 2026 set out below.]
(e) An art gallery, retail establishment, public library, or museum may be issued not more than 12 special venue serving permits in a calendar year.
[Subsection (e) effective July 1, 2026; see also subsection (e) effective until July 1, 2026 set out above.]
(e) An art gallery, public library, or museum may be issued not more than 12 special venue serving permits in a calendar year.
(f) As used in this section, “retail establishment” does not include a Vermont agency liquor store or a cannabis establishment as that term is defined in section 861 of this title.
(Added 2017, No. 83, § 51; amended 2018, No. 1 (Sp. Sess.), § 51; 2021, No. 177 (Adj. Sess.), § 16, eff. July 1, 2022; 2023, No. 156 (Adj. Sess.), § 2, eff. July 1, 2024; 2023, No. 156 (Adj. Sess.), § 3, eff. July 1, 2026.)
(a) The Division of Liquor Control may grant a licensee a permit to conduct an alcoholic beverage tasting event as provided in subsection (b) of this section if:
(1) the licensee has submitted a written application in a form required by the Commissioner and paid the fee provided in section 204 of this title at least five days prior to the date of the alcoholic beverage tasting event; and
(2) the Commissioner determines that the licensee is in good standing.
(b) The Division may grant the following alcoholic beverage tasting permits to the following types of licensees:
(1) A second-class licensee.
(A) The permit authorizes the employees of the second-class licensee or of a designated manufacturer or rectifier to dispense to each customer of legal age on the licensee’s premises malt beverages, vinous beverages, or ready-to-drink spirits beverages by the glass not to exceed two ounces of each beverage with a total of eight ounces of malt beverages, vinous beverages, or ready-to-drink spirits beverages.
(B) Malt beverages, vinous beverages, or ready-to-drink spirits beverages dispensed at the tasting event shall be from the inventory of the licensee or purchased from a wholesale dealer.
(C) A second-class licensee may be granted up to 48 tasting permits per year. In addition, a second-class licensee may be granted up to five permits per week to conduct a tasting as part of an educational food preparation class or course conducted by the licensee on the licensee’s premises.
(2) A licensed manufacturer or rectifier of malt beverages, vinous beverages, or ready-to-drink spirits beverages.
(A) The permit authorizes the licensed manufacturer or rectifier to dispense to each customer of legal age for consumption on the premises of a second-class licensee beverages produced by the manufacturer or rectifier by the glass not to exceed two ounces of each beverage with a total of eight ounces of malt beverages, vinous beverages, or ready-to-drink spirits beverages.
(B) A manufacturer or rectifier may conduct no more than 48 tastings per year.
(3) A licensed wholesale dealer. The permit authorizes a licensed wholesale dealer to dispense malt beverages, vinous beverages, or ready-to-drink spirits beverages for promotional purposes at the wholesale dealer’s premises without charge to invited employees of first-, second-, and third-class licensees, provided the invited employees are of legal age.
(c) A vinous beverage, ready-to-drink spirits beverage, or malt beverage tasting event held pursuant to subsection (b) of this section, not including an alcoholic beverage tasting conducted on the premises of the manufacturer or rectifier, shall comply with the following:
(1) continue for not more than six hours, with not more than six beverages to be offered at a single event, and not more than two ounces of any single beverage and not more than a total of eight ounces of malt beverages, vinous beverages, or ready-to-drink spirits beverages to be dispensed to a customer;
(2) serve no more than eight individuals at one time; and
(3) be conducted totally within a designated area that extends no further than 10 feet from the point of service and that is marked by a clearly visible sign that states that no one under 21 years of age may participate in the tasting.
(d) The holder of a permit issued under this section shall keep an accurate accounting of the beverages consumed at a tasting event and shall be responsible for complying with all applicable laws under this title.
(e) The holder of a permit issued under this section that provides alcoholic beverages to a minor or permits an individual under 18 years of age to serve alcoholic beverages at a tasting event under this section shall be fined not less than $500.00 nor more than $2,000.00 or imprisoned not more than two years, or both.
(Added 2017, No. 83, § 52; amended 2018, No. 1 (Sp. Sess.), § 52; 2021, No. 177 (Adj. Sess.), § 17, eff. July 1, 2022.)
(a)(1) At the request of a first- or second-class licensee, a holder of a manufacturer’s, rectifier’s, or wholesale dealer’s license may distribute without charge to the first- or second-class licensee’s management and staff, provided they are of legal age, two ounces per person of vinous beverages, malt beverages, or ready-to-drink spirits beverages for the purpose of promoting the beverage.
(2) At the request of a holder of a third-class license, a manufacturer or rectifier of spirits or fortified wines may distribute without charge to the third-class licensee’s management and staff, provided they are of legal age, one-quarter ounce of each beverage and not more than a total of one ounce to each individual for the purpose of promoting the beverage.
(3) No permit is required for a tasting pursuant to this subsection.
(b)(1) At the request of a holder of a wholesale dealer’s license, a first-class licensee may dispense malt beverages, vinous beverages, or ready-to-drink spirits beverages for promotional purposes without charge to invited management and staff of first-, second-, or third-class licensees, provided they are of legal age.
(2) The event shall be held on the premises of the first-class licensee.
(3) The first-class licensee shall be responsible for complying with all applicable laws under this title.
(4) No permit is required for a tasting pursuant to this subsection, but the wholesale dealer shall provide written notice of the event to the Division of Liquor Control at least 10 days prior to the date of the tasting.
(c)(1) Upon receipt of a first- or second-class application by the Division, a holder of a wholesale dealer’s license may dispense malt beverages, vinous beverages, or ready-to-drink spirits beverages for promotional purposes without charge to invited management and staff of the business that has applied for a first- or second-class license, provided they are of legal age.
(2) The event shall be held on the premises of the first- or second-class applicant.
(3) The first- or second-class applicant shall be responsible for complying with all applicable laws under this title.
(4) No malt beverages, vinous beverages, or ready-to-drink spirits beverages shall be left behind at the conclusion of the tasting.
(5) No permit is required under this subsection, but the wholesale dealer shall provide written notice of the event to the Division at least five days prior to the date of the tasting.
(Added 2017, No. 83, § 53; amended 2017, No. 113 (Adj. Sess.), § 40; 2018, No. 1 (Sp. Sess.), § 53; 2021, No. 70, § 4; 2021, No. 177 (Adj. Sess.), § 18, eff. July 1, 2022.)
(a) A licensed manufacturer or rectifier may distribute to its management and staff who are directly involved in the production of the licensee’s products, provided they are of legal age and at the licensed premises, samples of the licensee’s products for the purpose of assuring the quality of the products.
(b) Each sample of malt beverages, vinous beverages, or ready-to-drink spirits beverages shall be not larger than two ounces, and each sample of spirits or fortified wines shall be not larger than one-quarter ounce.
(c) No permit is required for a tasting pursuant to this section.
(Added 2017, No. 83, § 54; amended 2021, No. 177 (Adj. Sess.), § 19, eff. July 1, 2022.)
The Division of Liquor Control may grant to a person that operates a railroad a tasting permit that permits the holder to conduct tastings of alcoholic beverages in the dining car if the person files with the Division an application along with the fee provided in section 204 of this title.
(Amended 2009, No. 102 (Adj. Sess.), § 5, eff. May 11, 2010; 2017, No. 83, § 43; 2018, No. 1 (Sp. Sess.), § 54.)
No individual who is under 18 years of age or who has not received training as required by the Division may serve alcoholic beverages at a tasting event under this subchapter.
(Added 2017, No. 83, § 55; amended 2018, No. 1 (Sp. Sess.), § 55.)
(a)(1) The Board of Liquor and Lottery may grant a manufacturer’s or rectifier’s license upon application and payment of the fee provided in section 204 of this title that permits the license holder to operate a facility that manufactures or rectifies:
(A) malt beverages;
(B) vinous beverages and fortified wines; or
(C) spirits, ready-to-drink spirits beverages, and fortified wines.
(2) A manufacturer or rectifier shall obtain a separate license for each facility at which it manufactures or rectifies alcoholic beverages.
(b) Except as otherwise provided in section 224 of this title and subsections (d)-(f) of this section:
(1) spirits and fortified wine may be manufactured for sale to the Board of Liquor and Lottery or for export, or both; and
(2) malt beverages, vinous beverages, and ready-to-drink spirits beverages may be manufactured or rectified for sale to packagers or wholesale dealers or for export, or both.
(c) A licensed manufacturer of vinous beverages or fortified wines, or both, may receive from another manufacturer licensed in or outside this State bulk shipments of vinous beverages to rectify with the licensee’s own product, provided that the vinous beverages or fortified wines produced by the licensed manufacturer may contain not more than 25 percent imported vinous beverages.
(d)(1) The Board of Liquor and Lottery may grant to a licensed manufacturer or rectifier a first-class license or a third-class license, or both, permitting the licensee to sell alcoholic beverages to the public at an establishment located at the manufacturer’s or rectifier’s licensed facility, provided the manufacturer or rectifier owns or has direct control over that establishment.
(2) A licensed manufacturer of malt beverages may operate up to two licensed establishments pursuant to this subsection that are located at the licensed manufacturing facility or on property that is owned by the licensee and is contiguous with the parcel of land on which the licensed manufacturing facility is located, provided the manufacturer owns or has direct control over both establishments.
(3) [Repealed.]
(e) The Board of Liquor and Lottery may grant a licensed manufacturer of malt beverages a second-class license permitting the licensee to sell alcoholic beverages to the public anywhere on the premises of the licensed manufacturing facility.
(f)(1) A licensed manufacturer or rectifier may serve alcoholic beverages with or without charge at an event held at the licensed manufacturing or rectifying facility or at a location on property that is owned by the licensee and is contiguous with the parcel of land on which the licensed facility is located, provided the licensee at least five days before the event gives the Division written notice of the event, including details required by the Division.
(2) Any beverages not manufactured by the licensee that are served at the event shall be purchased on invoice from a licensed manufacturer or wholesale dealer or the Board of Liquor and Lottery.
(Added 2017, No. 83, § 56; amended 2018, No. 1 (Sp. Sess.), § 56; 2019, No. 73, § 49; 2019, No. 73, § 50, eff. July 1, 2021; 2021, No. 177 (Adj. Sess.), § 20, eff. July 1, 2022.)
(a) The Board of Liquor and Lottery may grant a packager’s license to a person if the person:
(1) submits an application;
(2) pays the fee provided in section 204 of this title; and
(3) satisfies the Commissioner of Liquor and Lottery as to its compliance with the rules of the Board relating to the cleanliness of the applicant’s facilities for storage and bottling of alcoholic beverages.
(b) A packager’s license holder may:
(1) bottle or otherwise package alcoholic beverages the licensee receives in bulk for sale; and
(2) distribute and sell alcoholic beverages that are bottled or otherwise packaged for sale by the licensee.
(c) A packager’s license holder shall comply with the provisions of subsection 274(c) of this subchapter.
(Amended 1959, No. 329 (Adj. Sess.), § 33, eff. March 1, 1961; 2017, No. 83, § 40; 2018, No. 1 (Sp. Sess.), § 57.)
(a) The Board of Liquor and Lottery may grant a wholesale dealer’s license to a person if the person:
(1) submits an application on a form required by the Board;
(2) pays the fee provided in section 204 of this title; and
(3) satisfies the Board as to its qualifications as a wholesale dealer.
(b) A wholesale dealer’s license holder may distribute or sell malt beverages, vinous beverages, or ready-to-drink spirits beverages to first- and second-class licensees and holders of educational sampling event permits.
(c)(1) In no event shall a wholesale dealer’s license holder be permitted to carry on business allowed by a first-class license or second-class license.
(2) A wholesale dealer’s license holder shall comply with the provisions of subsection 274(c) of this subchapter.
(Amended 2017, No. 83, § 42; 2018, No. 1 (Sp. Sess.), § 58; 2021, No. 177 (Adj. Sess.), § 21, eff. July 1, 2022.)
(a) The Board of Liquor and Lottery may grant to a manufacturer or distributor of malt beverages, vinous beverages, or ready-to-drink spirits beverages that is not licensed under the provisions of this title a certificate of approval if the manufacturer or distributor does all of the following:
(1) Submits an application on a form prescribed by the Board, including any additional information that the Board may deem necessary.
(2) Agrees to comply with the rules of the Board.
(3) Pays the fee provided in section 204 of this title to the Division of Liquor Control by a certified check payable to the State of Vermont or another form of payment approved by the Board of Liquor and Lottery. If the Board does not grant the application, the certified check or payment shall be returned to the applicant.
(b) A certificate of approval shall permit the holder to export malt beverages, vinous beverages, or ready-to-drink spirits beverages or sell malt beverages, vinous beverages, or ready-to-drink spirits beverages to holders of packagers’ or wholesale dealers’ licenses issued under section 272 or 273 of this title, or both.
(c) A holder of a packager’s or a wholesale dealer’s license issued under this title shall not purchase within or outside the State, or import or cause to be imported into the State, any malt beverages, vinous beverages, or ready-to-drink spirits beverages unless the person, manufacturer, or distributor from which the beverages are obtained holds a valid certificate of approval or packager’s license.
(d)(1) The Board of Liquor and Lottery may suspend or revoke a certificate of approval if the holder fails to comply with the rules of the Board or to submit reports to the Commissioner of Taxes in accordance with all applicable laws and rules.
(2)(A) A certificate of approval shall not be revoked unless the holder has been given a hearing following reasonable notice.
(B) Notice of a revocation or suspension shall be sent to each holder of a packager’s or wholesale dealer’s license prior to the effective date of the revocation or suspension.
(e) A person who violates a provision of this section shall be fined not more than $750.00 or imprisoned not more than one year, or both, for each offense and shall forfeit any license issued under the provisions of this title.
(Added 2017, No. 83, § 58; amended 2018, No. 1 (Sp. Sess.), § 59; 2019, No. 73, § 7; 2021, No. 177 (Adj. Sess.), § 22, eff. July 1, 2022.)
(a) The Board of Liquor and Lottery may grant an individual a solicitor’s license if he or she does all of the following:
(1) Submits an application to the Board of Liquor and Lottery on a form prescribed by the Board. The application shall include, at a minimum, the name, residence, and business address of the applicant; the name and address of the vendor, manufacturer, or employer to be represented by the applicant; and an agreement by the applicant to comply with the rules of the Board.
(2) Submits to the Board a recommendation by the vendor, manufacturer, or employer to be represented by the applicant that indicates the applicant is qualified to hold a solicitor’s license.
(3) Pays the fee provided in section 204 of this title to the Division of Liquor Control by certified check made payable to the State of Vermont. The certified check shall be returned to the applicant if the Board does not grant him or her a license under this section.
(b) A solicitor’s license holder may, by canvassing or interviewing holders of licenses issued under the provisions of this title:
(1) solicit orders for and promote the sale of malt beverages, vinous beverages, or ready-to-drink spirits beverages; and
(2) promote the sale of spirits and fortified wines.
(c) The Board of Liquor and Lottery may suspend or revoke a solicitor’s license for failure to comply with any rule of the Board or for other cause. A solicitor’s license shall not be revoked until the license holder has had an opportunity for a hearing following reasonable notice.
(d) A person who solicits, or attempts to solicit, orders for malt beverages, vinous beverages, or ready-to-drink spirits beverages or promotes, or attempts to promote, the sale of malt or vinous beverages, ready-to-drink spirits beverages, spirits, or fortified wines by canvassing or interviewing a holder of a license issued under the provisions of this title, without having first obtained a solicitor’s license as provided in this section, or who makes a false or fraudulent statement or representation in an application for the license or in connection with an application shall be imprisoned not more than six months or fined not more than $500.00, or both.
(Added 2017, No. 83, § 60; amended 2018, No. 1 (Sp. Sess.), § 60; 2019, No. 73, § 18; 2021, No. 177 (Adj. Sess.), § 23, eff. July 1, 2022.)
(a) The Board of Liquor and Lottery may grant an industrial alcohol distributor’s license upon application and payment of the fee provided in section 204 of this title.
(b) Alcohol sold under an industrial alcohol distributor’s license may only be used for manufacturing, mechanical, medicinal, and scientific purposes.
(Added 2017, No. 83, § 61; amended 2018, No. 1 (Sp. Sess.), § 61.)
(a)(1) A manufacturer or rectifier of malt beverages, vinous beverages, or ready-to-drink spirits beverages licensed in Vermont may be granted an in-state consumer shipping license by filing with the Division of Liquor Control an application in a form required by the Commissioner accompanied by a copy of the applicant’s current Vermont manufacturer’s license and the fee provided in section 204 of this title.
(2) An in-state consumer shipping license may be renewed annually by submitting to the Division the fee provided in section 204 of this title accompanied by a copy of the licensee’s current Vermont manufacturer’s license.
(b)(1) A manufacturer or rectifier of malt beverages, vinous beverages, or ready-to-drink spirits beverages licensed in another state that operates a brewery, winery, or distillery in the United States and holds valid state and federal permits and licenses may be granted an out-of-state consumer shipping license by filing with the Division of Liquor Control an application in a form required by the Commissioner accompanied by copies of the applicant’s current out-of-state manufacturer’s license and the fee provided in section 204 of this title.
(2) An out-of-state consumer shipping license may be renewed annually by submitting to the Division the fee provided in section 204 of this title accompanied by the licensee’s current out-of-state manufacturer’s license.
(3) As used in this section, “out-of-state” means any state other than Vermont, any territory or possession of the United States, and does not include a foreign country.
(c)(1) A consumer shipping license granted pursuant to this section shall permit the licensee to ship malt beverages, vinous beverages, or ready-to- drink spirits beverages produced by the licensee to private residents for personal use and not for resale.
(2) A licensee shall not ship more than 12 cases of malt beverages containing not more than 36 gallons of malt beverages or not more than 12 cases of vinous beverages or ready-to-drink spirits beverages containing not more than 29 gallons of vinous beverages or ready-to-drink spirits beverages to any one Vermont resident in any calendar year.
(3) The beverages shall be shipped by common carrier certified by the Division pursuant to section 280 of this subchapter. The common carrier shall comply with all the following:
(A) deliver beverages pursuant to an invoice that includes the name of the licensee and the name and address of the purchaser;
(B) on delivery, require a valid authorized form of identification, as defined in section 589 of this title, from a recipient who appears to be under 30 years of age; and
(C) require the recipient to sign an electronic or paper form or other acknowledgment of receipt.
(Added 2017, No. 83, § 62; amended 2018, No. 1 (Sp. Sess.), § 62; 2021, No. 177 (Adj. Sess.), § 24, eff. July 1, 2022.)
(a) A manufacturer or rectifier of vinous beverages that is licensed in the State or outside the State and holds valid state and federal permits and operates a winery in the United States may apply for a retail shipping license by filing with the Division of Liquor Control an application in a form required by the Commissioner accompanied by a copy of its in-state or out-of-state license and the fee provided in section 204 of this title.
(b) The retail shipping license may be renewed annually by submitting to the Division the fee provided in section 204 of this title accompanied by the licensee’s current in-state or out-of-state manufacturer’s license.
(c) A retail shipping license holder, including the holder’s affiliates, franchises, and subsidiaries, may sell up to 5,000 gallons of vinous beverages per year directly to first- or second-class licensees and deliver the beverages by common carrier, the manufacturer’s or rectifier’s own vehicle, or the vehicle of an employee of a manufacturer or rectifier, provided that the beverages are sold on invoice, and no more than 100 gallons per month are sold to any single first- or second-class licensee.
(d) The retail shipping license holder shall provide to the Division documentation of the annual and monthly number of gallons sold.
(e) Vinous beverages sold under this section may be delivered by the vehicle of a second-class license holder if the second-class licensee cannot obtain the vinous beverages from a wholesale dealer.
(Added 2017, No. 83, § 63; amended 2018, No. 1 (Sp. Sess.), § 63.)
A holder of a shipping license granted pursuant to section 277 or 278 of this subchapter shall comply with all of the following:
(1) Ensure that all containers of alcoholic beverages are shipped in a container that is clearly labeled: “contains alcohol; signature of individual 21 years of age or older required for delivery.”
(2) Not ship to any address in a municipality that the Division of Liquor Control identifies as having voted to be “dry.”
(3) Retain a copy of each record of sale for a minimum of five years from the date of shipping.
(4) Report at least twice per year to the Division if a holder of a consumer shipping license and once per year if a holder of a retail shipping license in a manner and form required by the Commissioner all the following information:
(A) the total amount of malt beverages, vinous beverages, or ready-to-drink spirits beverages shipped into or within the State during the preceding six months if a holder of a consumer shipping license or during the preceding 12 months if a holder of a retail shipping license;
(B) the names and addresses of the purchasers to whom the beverages were shipped; and
(C) the date purchased, the quantity and value of each shipment, and, if applicable, the name of the common carrier used to make each delivery.
(5) Pay to the Commissioner of Taxes the tax required pursuant to section 421 of this title on the malt beverages, vinous beverages, or ready- to-drink spirits beverages shipped pursuant to this subchapter and comply with the provisions of 32 V.S.A. chapter 233, 24 V.S.A. § 138, and any other legally authorized local sales taxes. Delivery in this State shall be deemed to constitute a sale in this State at the place of delivery and shall be subject to all appropriate taxes levied by the State of Vermont.
(6) Permit the State Treasurer, the Division of Liquor Control, and the Department of Taxes, separately or jointly, upon request, to perform an audit of its records.
(7) If an out-of-state license holder, be deemed to have consented to the jurisdiction of the Board of Liquor and Lottery, Division of Liquor Control, or any other State agency and the Vermont State courts concerning enforcement of this or other applicable laws and rules.
(8) Not have any direct or indirect financial interest in a Vermont wholesale dealer or retail dealer, including a first-, second-, or third-class licensee.
(9) Comply with all applicable laws and Board of Liquor and Lottery rules.
(10) Comply with the beverage container deposit redemption system pursuant to 10 V.S.A. chapter 53.
(Added 2017, No. 83, § 64; amended 2018, No. 1 (Sp. Sess.), § 64; 2021, No. 177 (Adj. Sess.), § 25, eff. July 1, 2022.)
(a) A common carrier shall not deliver malt beverages, vinous beverages, or ready-to-drink spirits beverages pursuant to this chapter until it has complied with the training provisions in section 213 of this title and been certified by the Division of Liquor Control.
(b) No employee of a certified common carrier may deliver malt beverages, vinous beverages, or ready-to-drink spirits beverages until that employee completes the training required pursuant to subsection 213(c) of this title.
(c) A certified common carrier shall deliver only malt beverages, vinous beverages, or ready-to-drink spirits beverages that have been shipped by the holder of a license issued under section 277 or 278 of this subchapter or vinous beverages that have been shipped by the holder of a vinous beverage storage license issued under section 283 of this subchapter.
(Added 2017, No. 83, § 65; amended 2018, No. 1 (Sp. Sess.), § 65; 2021, No. 177 (Adj. Sess.), § 26, eff. July 1, 2022.)
(a)(1) Except as otherwise provided in section 226 of this title, direct shipments of malt beverages, vinous beverages, or ready-to-drink spirits beverages are prohibited if the shipment is not specifically authorized and in compliance with sections 277–280 of this subchapter.
(2) Any person who knowingly makes, participates in, imports, or receives a direct shipment of malt beverages, vinous beverages, or ready-to-drink spirits beverages from a person who does not hold a license, permit, or certificate pursuant to sections 226 or 277–280 of this title may be fined not more than $2,500.00 or imprisoned not more than one year, or both.
(b) The holder of a license issued pursuant to section 277 or 278 of this title or a common carrier that ships malt beverages, vinous beverages, or ready-to-drink spirits beverages to an individual under 21 years of age shall be fined not less than $1,000.00 or more than $3,000.00 or imprisoned not more than two years, or both.
(c) For any violation of sections 277-280 of this subchapter, the Board of Liquor and Lottery may suspend or revoke a license issued under section 277 or 278 of this subchapter, in addition to any other remedies available to the Board.
(Added 2017, No. 83, § 66; amended 2018, No. 1 (Sp. Sess.), § 66; 2019, No. 73, § 8; 2021, No. 177 (Adj. Sess.), § 27, eff. July 1, 2022.)
The Board of Liquor and Lottery and the Commissioner of Taxes may adopt rules and forms necessary to implement sections 277-281 of this subchapter.
(Added 2017, No. 83, § 67; amended 2018, No. 1 (Sp. Sess.), § 67.)
(a) The Board of Liquor and Lottery may, pursuant to rules adopted by the Board, grant a vinous beverage storage and shipping license to a person that submits an application and pays the fee provided in section 204 of this title.
(b)(1) A vinous beverage storage and shipping licensee may operate a climate-controlled storage facility in which vinous beverages owned by another person are stored for a fee and may transport vinous beverages on which all applicable taxes already have been paid.
(2) A vinous beverage storage facility may also accept shipments from any licensed in-state or out-of-state vinous beverage manufacturer that has an in-state or out-of-state consumer shipping license pursuant to section 277 of this title.
(3) Vinous beverages stored by the licensee may be transported only for shipment to the owner of the beverages or to another licensed vinous beverage storage facility, and the beverages shall be shipped only by common carrier in compliance with section 280 of this title.
(c) A person granted a license pursuant to this section may not sell or resell any vinous beverages stored at the storage facility.
(Added 2007, No. 151 (Adj. Sess.), § 1, eff. May 19, 2008; amended 2017, No. 83, § 68; 2018, No. 1 (Sp. Sess.), § 68.)
[Repealed]
2017, No. 83, § 57.
[Repealed]
2017, No. 83, § 59.
(a) Every packager and wholesale dealer shall pay to the Commissioner of Taxes:
(1) the sum of 26 and one-half cents per gallon for every gallon or its equivalent of:
(A) malt beverages containing not more than six percent of alcohol by volume at 60 degrees Fahrenheit sold by them to retailers in the State; and
(B) hard ciders containing not more than seven percent of alcohol by volume at 60 degrees Fahrenheit sold by them to retailers in the State;
(2) the sum of 55 cents per gallon for each gallon of:
(A) malt beverages containing more than six percent of alcohol by volume at 60 degrees Fahrenheit;
(B) hard ciders containing more than seven percent of alcohol by volume at 60 degrees Fahrenheit sold by them to retailers in the State; and
(C) vinous beverages sold by them to retailers in the State; and
(3) the sum of $1.10 per gallon of ready-to-drink spirits beverages sold by them to retailers in the State.
(b) A manufacturer or rectifier of malt beverages, vinous beverages, or ready-to-drink spirits beverages shall pay the taxes required by this subsection to the Commissioner of Taxes for all malt and vinous beverages manufactured or rectified by them and sold at retail.
(c) A packager or wholesale dealer may sell malt or vinous beverages to any duly authorized agency of the U.S. Armed Forces on any U.S. Armed Forces’ installation presently existing in the State or which may in the future be established as though to a retail dealer but without the payment of the gallonage tax, subject to the filing of the returns as provided in subsection (d) of this section.
(d)(1) For the purpose of ascertaining the amount of tax, on the filing dates set out in subdivision (2) of this subsection according to tax liability, each packager, wholesale dealer, manufacturer, or rectifier shall transmit to the Commissioner of Taxes, upon a form prepared and furnished by the Commissioner, a statement or return under oath or affirmation showing the quantity of malt and vinous beverages sold by the packager, wholesale dealer, manufacturer, or rectifier during the preceding filing period, and report any other information requested by the Commissioner accompanied by payment of the tax required by this section. The amount of tax computed under subsection (a) of this section shall be rounded to the nearest whole cent. At the same time this form is due, each packager, wholesale dealer, manufacturer, or rectifier also shall transmit to the Commissioner in electronic format a separate report showing the description, quantity, and price of malt and vinous beverages sold by the packager, wholesale dealer, manufacturer, or rectifier to each retail dealer as defined in section 2 of this title; provided, however, for direct sales to retail dealers by manufacturers or rectifiers of vinous beverages, the report required by this subsection may be submitted in a nonelectronic format.
(2) Where the tax liability for the immediately preceding full calendar year has been (or would have been in cases when the business was not operating for the entire year):
(A) $2,000.00 or less, then payment of the tax and submission of the documents required by this section shall be due and payable in quarterly installments on or before the 25th day of the calendar month succeeding the quarter ending the last day of March, June, September, and December of each year; or
(B) more than $2,000.00, then payment of the tax and submission of the documents required by this section shall be due and payable monthly on or before the 25th (23rd of February) day of the month following the month for which the tax is due.
(e) The exemption provided in this section for beverages sold on any U.S. Armed Forces’ installation presently existing in the State is allowed only if the sales are evidenced by a proper voucher or affidavit in a form prescribed by the Commissioner of Taxes, which shall be a part of the return filed.
(f) A person failing to pay the tax when due, or failing to make returns as required by this section, shall be subject to and governed by the provisions of 32 V.S.A. §§ 3202 and 3203.
(g) [Repealed.]
(Amended 1969, No. 144, § 4, eff. June 1, 1969; 1975, No. 243 (Adj. Sess.), § 5, eff. May 1, 1976; 1979, No. 105 (Adj. Sess.), § 43; 1981, No. 96, § 1; 1993, No. 168 (Adj. Sess.), § 3; 2007, No. 167 (Adj. Sess.), § 2; 2009, No. 102 (Adj. Sess.), § 7, eff. May 11, 2010; 2011, No. 143 (Adj. Sess.), § 14; 2015, No. 144 (Adj. Sess.), § 8; 2017, No. 83, § 69; 2021, No. 177 (Adj. Sess.), § 28, eff. July 1, 2022; 2021, No. 177 (Adj. Sess.), § 28a, eff. July 1, 2023; 2023, No. 67, § 7, eff. July 1, 2023.)
(a) A tax of five percent is assessed on the gross revenue from the sale of spirits and fortified wines in the State of Vermont by the Board of Liquor and Lottery or the retail sale of spirits and fortified wines in Vermont by a manufacturer or rectifier of spirits or fortified wines, in accordance with the provisions of this title.
(b) The retail sales of spirits and fortified wines made by a manufacturer or rectifier at a fourth-class or farmers’ market license location shall be included in the gross revenue of a seller under this section, but only to the extent that the sales are of the manufacturer’s or rectifier’s own products, and not products purchased from other manufacturers and rectifiers.
(Amended 1969, No. 144, § 5, eff. June 1, 1969; 1973, No. 129 (Adj. Sess.), § 1, eff. Feb. 1, 1974; 1981, No. 96, § 2; 2009, No. 102 (Adj. Sess.), § 7, eff. May 11, 2010; 2011, No. 45, § 36d; 2013, No. 73, § 57; 2013, No. 174 (Adj. Sess.), § 22; 2015, No. 51, § A.13, eff. Jan. 1, 2016; 2018, No. 1 (Sp. Sess.), § 69; 2019, No. 73, § 45.)
(a) The Board of Liquor and Lottery shall adopt rules as it deems necessary for the proper administration and collection of the tax imposed under section 422 of this title.
(b) Notwithstanding subsection (a) of this section, where the spirits and fortified wines tax liability of a manufacturer or rectifier under section 422 of this title for the immediately preceding full calendar year has been (or would have been in cases when the business was not operating for the entire year) $1,000.00 or less, the tax imposed on the manufacturer or rectifier by section 422 of this title shall be due and payable in one annual payment on or before the 25th day of January. Where the spirits and fortified wines tax liability of a manufacturer or rectifier under section 422 of this title for the immediately preceding full calendar year has been (or would have been in cases when the business was not operating for the entire year) more than $1,000.00, the tax imposed on the manufacturer or rectifier by section 422 of this title shall be due and payable in quarterly installments on or before the 25th day of the calendar month succeeding the quarter ending the last day of March, June, September, and December of each year.
(Amended 2015, No. 144 (Adj. Sess.), § 9; 2017, No. 73, § 1, eff. June 13, 2017; 2017, No. 83, § 70; 2018, No. 1 (Sp. Sess.), § 70.)
The Board of Liquor and Lottery shall collect the tax imposed under section 422 of this title. The taxes collected on sales by the Board of Liquor and Lottery shall be paid weekly to the State Treasurer, and the taxes collected on sales by a manufacturer or rectifier shall be paid quarterly to the State Treasurer.
(Amended 1973, No. 129 (Adj. Sess.), § 2, eff. Feb. 1, 1974; 1977, No. 157 (Adj. Sess.); 2015, No. 144 (Adj. Sess.), § 10; 2018, No. 1 (Sp. Sess.), § 71.)
All taxes imposed by this title and all increases, interest, and penalties on those taxes, from the time they become due and payable, shall become a personal debt from the person liable to pay the amounts due to the State of Vermont and may be recovered in a civil action brought pursuant to this section.
(Amended 2017, No. 83, § 71.)
(a) Action for damages. An injured person may bring an action in the person’s own name pursuant to this subsection.
(1) Unlawful sale. An injured person shall have a right of action against any licensee who caused in whole or in part the intoxication of the intoxicated person by selling or furnishing alcoholic beverages:
(A) to a minor as defined in section 2 of this title; or
(B) to a person after legal serving hours.
(2) Negligent service. An injured person may bring an action against any licensee who negligently furnishes alcoholic beverages to a person:
(A) apparently under the influence of alcohol; or
(B) who it would be reasonable to expect would be under the influence of alcohol as a result of the amount of alcoholic beverages served by the licensee to that person.
(3) Negligence; prudent person. A licensee’s conduct is negligent under this subsection if the licensee knows, or if a reasonable and prudent person in similar circumstances would know, that the individual being served is intoxicated.
(4) Licensee’s knowledge; individual consumption. A licensee is not chargeable with knowledge of an individual’s off-premises consumption of alcoholic beverages unless the individual’s appearance and behavior, or other facts known to the licensee, would put a reasonable and prudent person on notice of the individual’s consumption of alcoholic beverages.
(b) Survival of action; joint action. Upon the death of either party, the action and right of action shall survive to or against the party’s executor or administrator. The party injured or the party’s legal representatives may bring either a joint action against the intoxicated person and the licensee or a separate action against either of them.
(c) [Repealed.]
(d) Statute of limitations. An action to recover damages under this section shall be commenced within two years after the cause of action accrues, and not after.
(e) Evidence.
(1) In an action brought under this section, evidence of responsible actions taken or not taken is admissible, if otherwise relevant.
(2) Responsible actions may include instruction of servers as to laws governing the sale of alcoholic beverages, training of servers regarding intervention techniques, admonishment to patrons or guests concerning laws regarding the consumption of alcoholic beverages, and inquiry under the methods provided by law as to the age or degree of intoxication of the persons involved.
(f) Right of contribution. A defendant in an action brought under this section has a right of contribution from any other responsible person or persons, which may be enforced in a separate action brought for that purpose.
(g) Social host.
(1) Except as set forth in subdivision (2) of this subsection, nothing in this section shall create a statutory cause of action against a social host for furnishing alcoholic beverages to any person without compensation or profit. However, this subdivision shall not be construed to limit or otherwise affect the liability of a social host for negligence at common law.
(2) A social host who knowingly furnishes alcoholic beverages to a minor may be held liable under this section if the social host knew, or a reasonable person in the same circumstances would have known, that the person who received the alcoholic beverages was a minor.
(h) Definitions. As used in this section:
(1) “Apparently under the influence of alcohol” means a state of intoxication accompanied by a perceptible act or series of actions that present signs of intoxication.
(2) “Injured person” means a spouse, child, guardian, employer, or other person, other than the intoxicated person, who is injured in person, property, or means of support by an intoxicated person or in consequence of the intoxication of any person.
(3) “Intoxicated person” means an intoxicated individual who caused injury to a person, a person’s property, or a person’s means of support.
(4) “Licensee” means the holder of a first-, third-, or fourth-class license under this title, and the license holder’s employees, who sells or furnishes alcohol to an intoxicated person.
(5) “Social host” means a person who is not the holder of a license or permit under this title and is not required to hold a license or permit under this title.
[Subsection (i) effective July 1, 2026]
(i) Liability insurance required. The Department of Liquor and Lottery, in consultation with the Department of Financial Regulation, shall adopt rules governing minimum policy requirements, including coverage amounts, for liquor liability insurance. Prior to the issuance or renewal of a first-, third-, or fourth-class license, the Department of Liquor and Lottery shall require each licensee or applicant to carry liquor liability insurance that meets minimum coverage requirements adopted by the Department.
(Amended 1987, No. 103, § 1; 1999, No. 116 (Adj. Sess.), § 1; 2017, No. 83, § 73; 2023, No. 17, § 1, eff. July 1, 2023; 2023, No. 17, § 2, eff. July 1, 2026.)
All damages recovered by a minor in an action under section 501 of this chapter shall be paid over to the minor or to his or her guardian on whatever terms the court may order.
(Amended 2017, No. 83, § 74.)
If a licensee fails to satisfy a judgment entered under section 501 of this title for 30 days after the judgment is entered, the local control commissioners or the Board of Liquor and Lottery shall revoke its license. A license shall not be granted to a person against whom a judgment has been recovered until the judgment is satisfied.
(Amended 2017, No. 83, § 75; 2018, No. 1 (Sp. Sess.), § 72.)
[Repealed]
2017, No. 83, § 76.
[Repealed]
2017, No. 83, § 77.
[Repealed]
2017, No. 83, § 78.
[Repealed]
2017, No. 133 (Adj. Sess.), § 198.
(a) The Director of Enforcement for the Division of Liquor Control and investigators employed by the Board of Liquor and Lottery or by the Division of Liquor Control shall be certified as Level III law enforcement officers by the Vermont Criminal Justice Council and shall have the same powers and immunities as those conferred on the State Police by 20 V.S.A. § 1914.
(b) The Commissioner of Liquor and Lottery, the Director of Enforcement for the Division of Liquor Control, an investigator employed by the Board of Liquor and Lottery or by the Division of Liquor Control, or any other law enforcement officer may arrest or take into custody pursuant to the Vermont Rules of Criminal Procedure a person whom he or she finds in the act of manufacturing alcohol or possessing a still or other apparatus for the manufacture of alcohol; unlawfully selling, bartering, possessing, furnishing, or transporting alcohol; or unlawfully selling, furnishing, or transporting alcoholic beverages, and shall seize the alcohol, vessels, and implements of sale and the stills or other apparatus for the manufacture of alcohol in the possession of the person. He or she may also seize and take into custody any property described in this section.
(Amended 1959, No. 329 (Adj. Sess.), § 33, eff. March 1, 1961; 1987, No. 201 (Adj. Sess.); 2011, No. 17, § 1, eff. May 11, 2011; 2011, No. 17, § 3, eff. July 1, 2013; 2013, No. 64, §§ 7, 8, eff. June 3, 2013; 2013, No. 141 (Adj. Sess.), § 15, eff. July 1, 2015; 2017, No. 83, § 79; 2018, No. 1 (Sp. Sess.), § 73.)
(a) If a State’s Attorney, the Commissioner of Liquor and Lottery, an investigator duly acting for the Board of Liquor and Lottery, or a control commissioner makes a complaint under oath or affirmation to a judge of the Criminal Division of the Superior Court that he or she or they have reason to believe that alcoholic beverages or alcohol is kept or deposited for sale or distribution contrary to law, or that alcohol is manufactured or possessed contrary to law, in any kind of vehicle, aircraft, watercraft, or other conveyance, or a dwelling house, railway car, building, or place in the county, the judge shall issue a warrant to search the premises described in the complaint.
(b) If the alcoholic beverages or alcohol is found there under circumstances warranting the belief that it is intended for sale or distribution contrary to law, or if alcohol is found in that place under circumstances warranting the belief that it is unlawfully manufactured or possessed, or if any still or other apparatus for the manufacture of alcohol is found in that place, the officer shall seize and convey the alcoholic beverages, alcohol, or still or other apparatus to a secure place and keep it until the court renders a final judgment on it.
(Amended 1959, No. 329 (Adj. Sess.), § 33, eff. March 1, 1961; 1965, No. 194, § 10, operative Feb. 1, 1967; 1973, No. 249 (Adj. Sess.), § 7, eff. April 9, 1974; 2009, No. 154, § 238; 2017, No. 83, § 80; 2017, No. 93 (Adj. Sess.), § 6; 2018, No. 1 (Sp. Sess.), § 74.)
(a) A law enforcement officer or selectboard member who has information that alcoholic beverages or alcohol is kept with intent to sell, or is sold contrary to law in any kind of public place for selling refreshments, except a dwelling house, on or near the grounds of a public occasion of any kind shall search the suspected place without a warrant.
(b)(1) If the officer finds alcoholic beverages or alcohol upon the premises, he or she shall seize it and apprehend the keeper of the place and take him or her, without the seized alcoholic beverages or alcohol, as soon as practicable, before a judge of the Criminal Division of the Superior Court in the jurisdiction where the alcoholic beverages or alcohol is found.
(2) The officer shall make a written complaint under oath or affirmation to the judge, setting forth the details of the finding of the alcoholic beverages or alcohol.
(c)(1) Upon proof that the alcoholic beverages or alcohol were found in the possession of the accused in a public place, with intent to sell contrary to law, the seized alcoholic beverages or alcohol shall be adjudged forfeited and disposed of by order of the court, as provided in this chapter.
(2) The owner or keeper shall be proceeded against pursuant to this chapter for keeping the alcoholic beverages or alcohol with intent to sell.
(Amended 1965, No. 194, § 10, operative Feb. 1, 1967; 1973, No. 249 (Adj. Sess.), § 8, eff. April 9, 1974; 2017, No. 83, § 81; 2017, No. 93 (Adj. Sess.), § 7.)
(a) An officer who pursuant to section 562 or 563 of this chapter seizes alcoholic beverages, alcohol, or a still or other apparatus for the manufacture of alcohol, with or without a warrant, shall promptly give notice of the seizure to the State’s Attorney of the county.
(b) The State’s Attorney shall then attend and act in behalf of the State at the hearing against the seized alcoholic beverages, alcohol, still, or apparatus.
(c) An officer making a seizure without a warrant shall be allowed the same fees as if he or she had acted under a warrant.
(Amended 2017, No. 83, § 82; 2017, No. 93 (Adj. Sess.), § 8.)
The officer shall promptly apprehend and bring before the court the owner, keeper, and all persons having custody of or exercising any control over the alcoholic beverages, alcohol, or other property seized pursuant to section 562 or 563 of this chapter, whether as principal, clerk, servant, or agent.
(Amended 2017, No. 83, § 83.)
If the owner or keeper of the alcoholic beverages, alcohol, or other property seized pursuant to section 562 or 563 of this chapter is unknown to the officer, or if a person is not found in possession or custody of the seized alcoholic beverages, alcohol, or other property, the officer shall apprehend and bring before the court the owner or occupant of the building or apartments in which the seized alcoholic beverages, alcohol, or other property was found, if he or she knows or can ascertain the person’s identity.
(Amended 2017, No. 83, § 84.)
(a) If, after a hearing, the court determines that the alcoholic beverages, alcohol, or other property seized pursuant to section 562 or 563 of this chapter was intended for sale, distribution, or use contrary to law, it shall be adjudged forfeited and condemned.
(b) Alcoholic beverages, alcohol, or other property that is adjudged forfeited and condemned under this section shall be turned over to the Commissioner of Liquor and Lottery for the benefit of the State.
(Amended 1959, No. 329 (Adj. Sess.), § 33, eff. March 1, 1961; 2017, No. 83, § 85; 2018, No. 1 (Sp. Sess.), § 75.)
Upon condemnation of alcoholic beverages, alcohol, or other property pursuant to section 567 of this title, any person apprehended and brought before the court under sections 563 and 565 of this title shall be liable for the costs of the proceedings if, in the judgment of the court, any of them by themselves, or through clerks, servants, or agents:
(1) engaged in, or aided, assisted, or abetted the keeping of the alcoholic beverages, alcohol, or other property for unlawful sale, distribution, or use;
(2) were privy to the keeping of the alcoholic beverages, alcohol, or other property for unlawful sale, distribution, or use; or
(3) knowingly permitted the use of any building or apartments the person owned or controlled for storing or keeping the alcoholic beverages, alcohol, or other property for unlawful sale, distribution, or use.
(Amended 2017, No. 83, § 86.)
If the court determines that a person is liable for the costs of the proceedings pursuant to section 568 of this title and the costs are not paid, the court, after a hearing, shall issue an execution in favor of the State and against the person that is liable for the costs. The execution shall be certified as follows: “This execution is issued for the costs of the seizure and condemnation of alcoholic beverages, alcohol, or a still or other apparatus for the manufacture of alcohol that was kept in violation of law.”
(Amended 1971, No. 185 (Adj. Sess.), § 19, eff. March 29, 1972; 2017, No. 83, § 87.)
(a) If an officer seizes alcoholic beverages or alcohol and takes possession of a vehicle, air or water craft, or other conveyance, he or she shall promptly make a complaint under oath or affirmation to a judge of the Criminal Division of the Superior Court in the jurisdiction where the seizure occurred.
(b) The same proceedings shall be had with respect to the alcoholic beverages or alcohol and the vehicle, air or water craft, or other conveyances, except that if the vehicle, air or water craft, or other conveyance is adjudged forfeited and condemned, it shall, upon the written order of the court, be sold at a public sheriff’s sale for the benefit of the State. The officer making the sale shall make a return in writing to the court that issued the order of sale with the proceeds from the sale, less his or her expenses and fees for keeping and selling the vehicle, air or water craft, or other conveyance, which shall be the same as for the sale of personal property upon execution.
(Amended 1965, No. 194, § 10, operative Feb. 1, 1967; 1973, No. 249 (Adj. Sess.), § 9, eff. April 9, 1974; 2009, No. 154, § 238; 2017, No. 83, § 89.)
[Repealed]
2017, No. 83, § 88.
(a) From the net proceeds of a sale pursuant to section 570 of this title, the court shall pay all liens, according to their priority that:
(1) are established by intervention or otherwise at the time the court enters the judgment of forfeiture or in other proceedings brought for that purpose; and
(2) are bona fide and were created without the owner’s having any knowledge that the carrying vehicle was used or would be used for the illegal transport of alcoholic beverages or alcohol.
(b) The court shall pay the balance of the proceeds to the State Treasurer.
(Amended 2017, No. 83, § 90.)
(a) Nothing in this chapter shall be construed to prejudice the rights of a bona fide owner of a vehicle, air or water craft, or other conveyance to have it returned to his or her possession upon proof that he or she had no knowledge that it was being used or was to be used for the illegal transportation of alcoholic beverages or alcohol, provided he or she enters an appearance before the court has entered a judgment of forfeiture.
(b)(1) If, following a hearing, the person in charge of a vehicle, air or water craft, or other conveyance is determined not to be its owner and no person has claimed it, the hearing shall be continued to a date certain and the taking of the vehicle, air or water craft, or other conveyance and the date of the adjourned hearing shall be advertised in a newspaper published in the town or county where it was taken or, if there is no newspaper published in the town or county, in a newspaper having circulation in the county, once a week for three successive weeks.
(2) The Commissioner of Finance and Management shall provide the court conducting the hearing with the cost of the advertising.
(Amended 1983, No. 195 (Adj. Sess.), § 5(b); 2017, No. 83, § 91.)
(a) At any time within one year after a vehicle, air or water craft, or other conveyance has been adjudged forfeited, a claimant may provide notice to the State’s Attorney of the county and, upon showing that he or she had no knowledge of the forfeiture hearing, may apply to the court that entered the judgment of forfeiture to have the case reopened. The court may require the claimant to give security by posting a bond to the State in a sufficient sum, as the court directs, conditioned on the claimant prosecuting his or her claim to effect and paying the costs awarded against him or her.
(b) If upon rehearing the claimant establishes his or her claim, the court shall certify to the Commissioner of Finance and Management the amount of the claim, which shall not exceed the net amount actually realized by the State from the sale of the vehicle, air or water craft, or other conveyance, and the Commissioner of Finance and Management shall issue his or her warrant to pay the sum.
(Amended 1965, No. 194, § 10, operative Feb. 1, 1967; 1973, No. 249 (Adj. Sess.), § 10, eff. April 9, 1974; 1983, No. 195 (Adj. Sess.), § 5(b); 2017, No. 83, § 92.)
(a)(1) When the owner, keeper, or possessor of alcoholic beverages, alcohol, or a still or other apparatus for the manufacture of alcohol seized under the provisions of this title appears and makes a claim to the seized alcoholic beverages, alcohol, or other property, he or she shall file a written claim with the court before which the proceedings are pending.
(2) The claim shall set forth his or her interest in the seized alcoholic beverages, alcohol, or other property, and the reasons why it should not be adjudged forfeited.
(b) The court may require the claimant to give security by posting a bond to the State, in a sufficient sum as the court directs, conditioned on the claimant prosecuting his or her claim to effect and paying the costs awarded against him or her.
(Amended 2017, No. 83, § 93.)
If a claimant elects to appeal from the judgment of the court under this chapter, the court may require that he or she give security by posting a bond to the State, in a sufficient sum, as the court directs, conditioned on the claimant’s prosecuting his or her appeal to effect and paying the costs awarded against him or her.
(Amended 2017, No. 83, § 94.)
If the court renders judgment against the claimant pursuant to section 575 or 576 of this title, the alcoholic beverages or alcohol and the casks or vessels containing the alcoholic beverages or alcohol shall be adjudged forfeited and condemned, as provided in this chapter, and the court shall also enter judgment against the claimant for all costs of prosecution incurred after the filing of his or her claim.
(Amended 2017, No. 83, § 95.)
If the appellant fails to enter and prosecute his or her appeal pursuant to section 576 of this title, or if judgment is against him or her on appeal, the court in which the appeal is finally decided shall order the alcoholic beverages or alcohol to be disposed of as in the case of alcoholic beverages or alcohol adjudged forfeited and condemned under an order of a judge of the Criminal Division of the Superior Court pursuant to section 567 of this title.
(Amended 1965, No. 194, § 10, operative Feb. 1, 1967; 1973, No. 249 (Adj. Sess.), § 11, eff. April 9, 1974; 2017, No. 83, § 96.)
If alcoholic beverages, alcohol, or other property seized by an officer under the provisions of this chapter is taken from his or her possession by a writ of replevin, it shall not be delivered to the claimant, but shall be held by the officer serving the writ, until the final determination of the seizure action. Upon the final determination of the action, the alcoholic beverages, alcohol, or other property held by the officer who served the writ shall be delivered to the party in whose favor judgment is rendered, or to an officer who has authority to hold or dispose of it under the original seizure proceedings.
(Amended 2017, No. 83, § 97.)
Proceedings on the seizure of alcoholic beverages, alcohol, or a still or other apparatus for the manufacture of alcohol, except final execution, shall not be delayed by a replevin of the seized alcoholic beverages, alcohol, or other property, but the cause shall proceed to final judgment as if the action for replevin had not been commenced.
(Amended 2017, No. 83, § 98.)
If proceedings for the condemnation of alcoholic beverages, alcohol, or a still or other apparatus for the manufacture of alcohol result in the prosecution and conviction of the owner or keeper of the alcoholic beverages, alcohol, or other property for an offense under this title, the costs in the proceedings shall be taxed against the owner or keeper.
(Amended 2017, No. 83, § 99.)
Alcoholic beverages lawfully taken by attachment or on execution issued by a court of this State may be sold by a duly authorized officer as other personal property taken on execution, but only to the persons and institutions to which alcoholic beverages may be sold under the provisions of this title.
(Amended 2017, No. 83, § 100; 2017, No. 113 (Adj. Sess.), § 41.)
Fees payable and expenses incurred under the provisions of this title shall be paid by the State.
(Amended 2017, No. 83, § 101.)
If a specification is required in prosecutions for offenses under this title, it shall be sufficient to specify the offenses with as much certainty as to the time, place, and person as the prosecutor is able to provide, and the specifications provided may be amended at trial. When the specifications set forth the sale or furnishing of alcoholic beverages or alcohol to any unknown person or persons, the witnesses may be inquired of as to those transactions. If the name of the person is disclosed, it may be added to the specifications, and upon any terms related to postponement of the trial as the court deems reasonable.
(Amended 2017, No. 83, § 103.)
A copy or record of a person’s Alcohol Dealer Registration with the U.S. Alcohol and Tobacco Tax and Trade Bureau shall be prima facie evidence that the person named in the registration keeps for sale and sells alcoholic beverages or alcohol.
(Amended 2017, No. 83, § 104.)
[Repealed]
2017, No. 83, § 102.
Fines collected under this title shall be remitted to the General Fund. Costs collected under this title shall be remitted to the Liquor Control Enterprise Fund.
(Amended 1999, No. 49, § 192; 2017, No. 82, § 105.)
When a sheriff, constable, or police officer makes a search under this title pursuant to a warrant, he or she shall receive a fee for the search, reimbursement for mileage at the rate set pursuant to 32 V.S.A. § 1267, and the sum that he or she actually paid out for necessary assistance, if:
(1) the Commissioner of Liquor and Lottery deems the amount to be reasonable; and
(2) the officer declares under oath that the money was expended as claimed, and, if applicable, states the name of his or her assistant and the amount paid for the assistance.
(Amended 1983, No. 195 (Adj. Sess.), § 5(b); 2017, No. 83, § 107; 2018, No. 1 (Sp. Sess.), § 76.)
An individual shall exhibit “a valid authorized form of identification,” which means a valid photographic operator’s license, enhanced driver’s license, or valid photographic nondriver identification card issued by Vermont or another state or foreign jurisdiction, a U.S. military identification card, or a valid passport or passport card bearing the photograph and signature of the individual upon demand of a licensee, an employee of a licensee, or a law enforcement officer. On the failure of an individual to produce and exhibit a valid authorized form of identification upon demand of a licensee, the licensee shall be entitled to refuse to sell the individual any alcoholic beverage. Sale or furnishing of any alcoholic beverages by a licensee to an individual exhibiting a valid authorized form of identification shall be prima facie evidence of the licensee’s compliance with the law prohibiting the sale or furnishing of alcoholic beverages to minors.
(Added 1963, No. 145, § 2; amended 1989, No. 195 (Adj. Sess.), § 2; 1995, No. 121 (Adj. Sess.), § 2; 1997, No. 158 (Adj. Sess.), § 3; 2007, No. 114 (Adj. Sess.), § 1; 2013, No. 64, § 6; 2017, No. 83, § 108.)
The Board of Liquor and Lottery shall adopt rules as necessary to effectuate the purposes of section 589 of this title.
(Added 1963, No. 145, § 5; amended 2007, No. 114 (Adj. Sess.), § 2; 2017, No. 83, § 109; 2018, No. 1 (Sp. Sess.), § 77.)
[Repealed]
1973, No. 249 (Adj. Sess.), § 111, eff. April 9, 1974.
[Repealed]
2017, No. 83, § 106.
[Repealed]
1973, No. 249 (Adj. Sess.), § 111, eff. April 9, 1974.
[Redesignated]
2017, No. 83, § 107.
[Repealed]
2007, No. 114 (Adj. Sess.), § 5.
[Redesignated]
2017, No. 83, § 108.
[Redesignated]
2017, No. 83, § 109.
A person who, for himself or herself or as agent, takes or solicits orders for the sale of malt beverages, vinous beverages, or ready-to-drink spirits beverages, except for licensees or from agencies of the U.S. Armed Forces as specified in section 421 of this title, or of spirits or fortified wines shall be imprisoned not more than six months or fined not more than $500.00 nor less than $100.00, or both.
(Amended 1981, No. 223 (Adj. Sess.), § 23; 2017, No. 83, § 110; 2019, No. 73, § 9; 2021, No. 177 (Adj. Sess.), § 29, eff. July 1, 2022.)
A person who, by himself or herself, or through a clerk or agent, brings into the State, or conveys or transports over or along a railroad or public highway, or by land, air, or water, alcoholic beverages or alcohol that the person knows or has reason to believe is to be unlawfully kept, sold, or furnished shall be imprisoned not more than six months nor less than three months or fined not more than $2,500.00 nor less than $100.00, or both.
(Amended 1981, No. 223 (Adj. Sess.), § 23; 2017, No. 83, § 111; 2019, No. 73, § 10.)
[Repealed]
2003, No. 54, § 14.
[Repealed]
2017, No. 83, § 112.
(a) A licensee or permittee shall be imprisoned not more than six months nor less than 30 days or fined not more than $1,500.00 nor less than $500.00, or both, if the licensee or permittee:
(1) purchases or receives apparel, tools, implements of trade or husbandry, household goods, furniture, or provisions, directly or indirectly, by way of sale or barter, the consideration for which is, in whole or in part, alcoholic beverages or alcohol or the price of the alcoholic beverages or alcohol; or
(2) receives apparel, tools, implements of trade or husbandry, household goods, furniture, or provisions in pawn for alcoholic beverages or alcohol or the price of the alcoholic beverages or alcohol.
(b) A person’s license or permit issued under this title shall be revoked following a conviction under subsection (a) of this section.
(Amended 2017, No. 83, § 113; 2019, No. 73, § 11.)
(a) Definitions. As used in this section:
(1) “Alcohol” has the same meaning as in 23 V.S.A. § 1200(4).
(2) “Alcohol concentration” has the same meaning as in 23 V.S.A. § 1200(1).
(3) “Cannabis” has the same meaning as in subdivision 831(2) of this title.
(4) “Highway” has the same meaning as in 23 V.S.A. § 1200(7).
(5) “Ignition interlock device” has the same meaning as in 23 V.S.A. § 1200(8).
(6) “Ignition interlock restricted driver’s license,” “ignition interlock RDL” or “RDL,” and “ignition interlock certificate” have the same meaning as in 23 V.S.A. § 1200(9).
(7) “Law enforcement officer” has the same meaning as “enforcement officer” as defined in 23 V.S.A. § 4(11)(A).
(8) “License to operate a motor vehicle” has the same meaning as in 23 V.S.A. § 4(48).
(9) “Motor vehicle” or “vehicle” has the same meaning as “motor vehicle” as defined in 23 V.S.A. § 4(21).
(10) “Operate or attempts to operate” has the same meaning as in 23 V.S.A. § 4(24).
(11) “Operator” has the same meaning as in 23 V.S.A. § 4(25) and shall include “junior operator” as defined in 23 V.S.A. § 4(16).
(12) “Person” has the same meaning as in 23 V.S.A. § 4(27).
(13) “Privilege to operate” has the same meaning as in 23 V.S.A. § 4(58).
(14) “Suspension” or “suspension of the person’s operator’s license” has the same meaning as “suspension of license” as defined in 23 V.S.A. § 4(50).
(b) Prohibited conduct; offenses.
(1) Prohibited conduct. A person 12 years of age or older and under 21 years of age shall not:
(A) Falsely represent the person’s age for the purpose of procuring or attempting to procure malt or vinous beverages, ready-to-drink spirits beverages, spirits, or fortified wines from any licensee, State liquor agency, or other person or persons.
(B) Possess malt or vinous beverages, ready-to-drink spirits beverages, spirits, or fortified wines for the purpose of consumption by the person or other minors, except in the regular performance of duties as an employee of a licensee licensed to sell alcoholic liquor.
(C) Knowingly and unlawfully possess one ounce or less of cannabis or five grams or less of hashish or two mature cannabis plants or fewer or four immature cannabis plants or fewer.
(D) Consume malt or vinous beverages, ready-to-drink spirits beverages, spirits, or fortified wines. A violation of this subdivision may be prosecuted in a jurisdiction where the person has consumed malt or vinous beverages, ready-to-drink spirits beverages, spirits, or fortified wines or in a jurisdiction where the indicators of consumption are observed.
(E) Operate, attempt to operate, or be in actual physical control on a highway of a vehicle when the person’s blood alcohol concentration is 0.02 or more.
(2) Procurement, possession, or consumption penalties. A person who knowingly violates any of subdivisions (1)(A)–(D) of this subsection commits a civil violation and shall be referred to the Court Diversion Program for the purpose of enrollment in the Youth Substance Awareness Safety Program. A person who fails to complete the program successfully commits a civil violation under the jurisdiction of the Judicial Bureau and shall be subject to the following:
(A) a civil penalty of $300.00 and suspension of the person’s operator’s license and privilege to operate a motor vehicle for a period of 30 days, for a first offense; and
(B) a civil penalty of not more than $600.00 and suspension of the person’s operator’s license and privilege to operate a motor vehicle for a period of 90 days, for a second or subsequent offense.
(3) Impaired driver penalties.
(A) A person who violates subdivision (1)(E) of this subsection (b) commits a civil violation, shall be referred to the Court Diversion Program for the purpose of enrollment in the Youth Substance Awareness Safety Program, and the Commissioner of Motor Vehicles shall suspend the person’s operator’s license and privilege to operate a motor vehicle in accordance with subdivision (B) of this subdivision (b)(3). A person who fails to complete the Program successfully commits a civil violation under the jurisdiction of the Judicial Bureau and shall be subject to the following:
(i) For a first offense, a civil penalty of $300.00 and suspension of the person’s operator’s license and privilege to operate a motor vehicle for a period of 180 days and compliance with the requirements of 23 V.S.A. § 1209a(a)(1).
(ii) For a second or subsequent offense, a civil penalty of $600.00 and suspension of the person’s operator’s license for a period of one year or until the person reaches 21 years of age, whichever is longer, and compliance with the requirements of 23 V.S.A. § 1209a(a)(2).
(iii) A person who violates subdivision (1)(E) of this subsection (b) may also be subject to recall of the person’s provisional license under 23 V.S.A. § 607a.
(iv) If a law enforcement officer has reasonable grounds to believe that a person is violating subdivision (1)(E) of this subsection (b), the officer may request the person to submit to a breath test using a preliminary screening device approved by the Commissioner of Public Safety. A refusal to submit to the breath test shall be considered a violation of subdivision (1)(E) of this subsection (b). Notwithstanding any provisions to the contrary in 23 V.S.A. §§ 1202 and 1203:
(I) the results of the test shall be admissible evidence in a proceeding under this section; and
(II) there shall be no statutory right to counsel prior to the administration of the test.
(v) In a proceeding under this section, if there was at any time within two hours after operating, attempting to operate, or being in actual physical control of a vehicle on a highway a blood alcohol concentration of 0.02 or more, it shall be a rebuttable presumption that the person’s blood alcohol concentration was 0.02 or more at the time of operating, attempting to operate, or being in actual physical control.
(vi) No points shall be assessed for a violation of subdivision (1)(E) of this subsection (b).
(vii) The Alcohol and Driving Program required under this section shall be administered by the Department of Health’s Division of Substance Use Programs and shall take into consideration any particular treatment needs of operators under 21 years of age.
(viii) An alleged violation of this section shall not bar prosecution for any crime, including a prosecution under 23 V.S.A. § 1201.
(ix) Suspensions imposed under this subdivision (3)(A) or any comparable statute of any other jurisdiction shall run concurrently with suspensions imposed under 23 V.S.A. §§ 1205, 1206, and 1208 or any comparable statutes of any other jurisdiction or with any suspension resulting from a conviction for a violation of 23 V.S.A. § 1091 from the same incident.
(B)(i) For a first offense, a person shall serve suspension of the person’s operator’s license and privilege to operate a motor vehicle for a period of 90 days and shall be automatically reinstated after the 90-day period.
(ii) For a second or subsequent offense, a person shall serve a suspension of the person’s operator’s license and privilege to operate a motor vehicle for a period of 145 days and shall be automatically reinstated after the 145-day period.
(iii) The Commissioner of Motor Vehicles shall issue a notice of reinstatement to the person serving a suspension under this subdivision (b)(3)(B) upon successful completion of the suspension.
(iv) If a person fails to complete the Youth Substance Awareness Safety Program, the person shall receive credit for any elapsed period of a suspension served pursuant to this subdivision (b)(3)(B) against any suspension imposed pursuant to subdivision (A) of this subdivision (b)(3).
(C) During a suspension issued pursuant to subdivision (A) or (B) of this subdivision (3), a person may operate a motor vehicle if issued an ignition interlock restricted driver’s license or certificate in accordance with 23 V.S.A. § 1213.
(i) A person subject to penalties under subdivision (A)(i) of this subdivision (b)(3) and who elects to operate a motor vehicle with an ignition interlock RDL or certificate shall be reinstated only if the person operates with an ignition interlock RDL or certificate for a period of 180 days, in addition to any extension of this period arising from a violation of 23 V.S.A. § 1213.
(ii) A person subject to penalties under subdivision (A)(i) of this subdivision (b)(3) and who elects to operate a motor vehicle with an ignition interlock RDL or certificate shall be reinstated only if the person operates with an ignition interlock RDL or certificate for a period of one year or until the person reaches 21 years of age, whichever is longer, in addition to any extension of this period arising from a violation of 23 V.S.A. § 1213.
(c) Issuance of notice of violation. A law enforcement officer shall issue a person who violates this section a notice of violation, in a form approved by the Court Administrator. A person shall not be cited for more than one violation of subsection (b) of this section arising out of the same incident. The notice of violation shall require the person to provide the person’s name and address, shall indicate the presence of any substances that constitute a violation of subsection (b) of this section, and shall explain procedures under this section, including that:
(1) the person shall contact the Diversion Program in the county where the offense occurred within 15 days;
(2) failure to contact the Diversion Program within 15 days will result in the case being referred to the Judicial Bureau, where the person, if found liable for the violation, will be subject to a civil penalty and a suspension of the person’s operator’s license and may face substantially increased insurance rates;
(3) no money should be submitted to pay any penalty until after adjudication; and
(4) the person shall notify the Diversion Program if the person’s address changes.
(d) Issuance of notice of suspension.
(1) On behalf of the Commissioner of Motor Vehicles, a law enforcement officer issuing a notice of violation in accordance with subsection (c) of this section shall also serve a notice of suspension of the person’s operator’s license and privilege to operate a motor vehicle in a form prescribed by the Court Administrator. The form shall include the following:
(A) the effective date of the suspension;
(B) the suspension’s duration;
(C) an explanation of the consequences of the suspension;
(D) the option to operate a motor vehicle with an ignition interlock restricted driver’s license or certificate in accordance with 23 V.S.A. § 1213;
(E) the projected date of reinstatement upon successful completion of the suspension; and
(F) the ability to review the imposition of the suspension pursuant to Rule 75 of the Vermont Rules of Civil Procedure.
(2) A suspension issued pursuant to subdivision (b)(3)(B) of this section shall become effective on the 11th day after the person receives notice in accordance with this subsection.
(3) A copy of the notice of suspension shall be sent to the Commissioner of Motor Vehicles.
(e) Summons and complaint. When a person is issued a notice of violation under this section, the law enforcement officer shall complete a summons and complaint for the offense and send it to the Diversion Program in the county where the offense occurred. The summons and complaint shall not be filed with the Judicial Bureau at that time.
(f) Registration in Youth Substance Abuse Safety Program. Within 15 days after receiving a notice of violation, the person shall contact the Diversion Program in the county where the offense occurred and register for the Youth Substance Abuse Safety Program. If the person fails to do so, the Diversion Program shall file the summons and complaint with the Judicial Bureau for adjudication under 4 V.S.A. chapter 29. The Diversion Program shall provide a copy of the summons and complaint to the law enforcement officer who issued the notice of violation and shall provide two copies to the person subject to the violation.
(g) Notice to report to Diversion. Upon receipt from a law enforcement officer of a summons and complaint completed under this section, the Diversion Program shall send the person a notice to report to the Diversion Program. The notice to report shall provide that:
(1) The person is required to complete all conditions related to the offense imposed by the Diversion Program, including substance abuse screening and, if deemed appropriate following the screening, substance abuse assessment or substance abuse counseling, or both.
(2) If the person does not satisfactorily complete the substance abuse screening, any required substance abuse assessment or substance abuse counseling, or any other condition related to the offense imposed by the Diversion Program, the case will be referred to the Judicial Bureau, where the person, if found liable for the violation, shall be assessed a civil penalty, the person’s driver’s license will be suspended, and the person’s automobile insurance rates may increase substantially.
(3) If the person satisfactorily completes the substance abuse screening, any required substance abuse assessment or substance abuse counseling, and any other condition related to the offense imposed by the Diversion Program, no penalty shall be imposed and the person’s operator’s license shall not be suspended.
(h) Diversion Program requirements.
(1) Upon being contacted by a person who has been issued a notice of violation, the Diversion Program shall register the person in the Youth Substance Abuse Safety Program. Pursuant to the Youth Substance Abuse Safety Program, the Diversion Program shall impose conditions on the person. The conditions imposed shall include only conditions related to the offense and in every case shall include a condition requiring satisfactory completion of substance abuse screening using an evidence-based tool and, if deemed appropriate following the screening, substance abuse assessment and substance abuse education or substance abuse counseling, or both. If the screener recommends substance abuse counseling, the person shall choose a State-certified or State-licensed substance abuse counselor or substance abuse treatment provider to provide the services.
(2) Substance abuse screening required under this subsection shall be completed within 60 days after the Diversion Program receives a summons and complaint. The person shall complete all conditions at the person’s own expense.
(3) When a person has satisfactorily completed substance abuse screening, any required substance abuse education or substance abuse counseling, and any other condition related to the offense that the Diversion Program has imposed, the Diversion Program shall:
(A) Void the summons and complaint with no penalty due.
(B) Send copies of the voided summons and complaint to the Judicial Bureau and to the law enforcement officer who completed them. Before sending copies of the voided summons and complaint to the Judicial Bureau under this subdivision, the Diversion Program shall redact all language containing the person’s name, address, Social Security number, and any other information that identifies the person.
(4) If a person does not satisfactorily complete substance abuse screening, any required substance abuse education or substance abuse counseling, or any other condition related to the offense imposed by the Diversion Program, the Diversion Program shall file the summons and complaint with the Judicial Bureau for adjudication under 4 V.S.A. chapter 29. The Diversion Program shall provide a copy of the summons and complaint to the law enforcement officer who issued the notice of violation and shall provide two copies to the person charged with the violation.
(5)(A) A person aggrieved by a decision of the Diversion Program or alcohol counselor may seek review of that decision pursuant to Rule 75 of the Vermont Rules of Civil Procedure.
(B) Prior to the filing of the complaint with the Judicial Bureau in accordance with this section, a person aggrieved by a suspension imposed under subdivision (b)(3)(B) of this section may seek review of that imposition pursuant to Rule 75 of the Vermont Rules of Civil Procedure.
(6) Notwithstanding any law to the contrary, the adult or juvenile diversion programs shall accept cases from the Youth Substance Awareness Safety Program pursuant to this section. The confidentiality provisions of 3 V.S.A. § 163 or 164 shall become effective when a notice of violation is issued pursuant to subsection (c) of this section and shall remain in effect unless the person fails to register with or complete the Youth Substance Awareness Safety Program.
(i) Record of adjudications; confidentiality; public records exemption.
(1) Upon adjudicating a person in violation of this section, the Judicial Bureau shall notify the Commissioner of Motor Vehicles, who shall maintain a record of all such adjudications that shall be separate from the registry maintained by the Department for motor vehicle driving records. The identity of a person in the registry shall be revealed only to the following:
(A) a law enforcement officer determining whether the person has previously violated this section; or
(B) an insurance company or its third-party contractor only for the purposes of recording a license suspension issued pursuant to subdivision (b)(3) of this section.
(2) Except as provided in this subsection:
(A) All information related to a suspension issued pursuant to subdivision (b)(3) of this section shall be held strictly confidential and not released without the participant’s prior consent.
(B) Any records or information produced or acquired pursuant to a suspension issued pursuant to subdivision (b)(3) of this section shall be exempt from public inspection or copying under Vermont’s Public Records Act.
(j) Reporting. Annually, beginning on October 1, 2026, the Office of the Attorney General, and other entities as needed, shall submit a written report to the House and Senate Committees on Judiciary related to impaired driver violations under this section, containing the following, if available:
(1) the number of persons referred to the Youth Substance Awareness Safety Program;
(2) the ages of the persons referred to the Program;
(3) the number of persons who successfully complete the Program;
(4) the number of persons who fail the Program; and
(5) the number of persons who serve suspensions imposed by the Judicial Bureau after failing the Program.
(Added 1999, No. 160 (Adj. Sess.), § 8; amended 2003, No. 52, § 2, eff. Oct. 1, 2003; 2013, No. 76, § 9; 2015, No. 147 (Adj. Sess.), § 6, eff. May 31, 2016; 2019, No. 167 (Adj. Sess.), § 5, eff. Oct. 7, 2020; 2021, No. 20, § 6; 2021, No. 177 (Adj. Sess.), § 30, eff. July 1, 2022; 2023, No. 180 (Adj. Sess.), § 2, eff. July 1, 2024; 2025, No. 18, § 23, eff. May 13, 2025; 2025, No. 45, § 1, eff. July 1, 2025.)
[Repealed]
2015, No. 147 (Adj. Sess.), § 7, eff. May 31, 2016.
[Repealed]
(Added 2013, No. 76, § 10; repealed by 2025, No. 45, § 4, eff. July 1, 2025.)
(a) A person shall not:
(1) sell or furnish alcoholic beverages to a person under 21 years of age; or
(2) knowingly enable the consumption of alcoholic beverages by a person under 21 years of age.
(b) As used in this section, “enable the consumption of alcoholic beverages” means creating a direct and immediate opportunity for a person to consume alcoholic beverages.
(c) A person who violates subsection (a) of this section shall be fined not less than $500.00 nor more than $2,000.00 or imprisoned not more than two years, or both. However, an employee of a licensee or an employee of a State liquor agency, who in the course of employment violates subdivision (a)(1) of this section:
(1) during a compliance check conducted by a law enforcement officer as defined in 20 V.S.A. § 2358:
(A) shall be assessed a civil penalty of not more than $100.00 for the first violation and a civil penalty of not less than $100.00 nor more than $1,000.00 for a second violation that occurs more than one year after the first violation; and
(B) shall be subject to the criminal penalties provided in this subsection (c) for a second violation within a year of the first violation, and for a third or subsequent violation within three years of the first violation.
(2) may plead as an affirmative defense that:
(A) the purchaser exhibited and the employee carefully viewed photographic identification that complied with section 589 of this title and indicated the purchaser to be 21 years of age or older;
(B) an ordinary prudent person would believe the purchaser to be of legal age to make the purchase; and
(C) the sale was made in good faith, based upon the reasonable belief that the purchaser was of legal age to purchase alcoholic beverages.
(d)(1) A person who violates subsection (a) of this section, where the person under 21 years of age, while operating a motor vehicle, snowmobile, vessel, or all-terrain vehicle on a public highway, public land, or public waters, or in a place where a Vermont Association of Snow Travelers (VAST) trail maintenance assessment or a Vermont ATV Sportsman’s Association (VASA) Trail Access Decal is required, causes death or serious bodily injury to himself or herself or to another person as a result of the violation, shall be imprisoned not more than five years or fined not more than $10,000.00, or both.
(2) As used in this subsection:
(A) “All-terrain vehicle” shall have the same meaning as set forth in 23 V.S.A. § 3501.
(B) “Public land” means all land in Vermont that is either owned or controlled by a local, State, or federal governmental body.
(C) “Public waters” shall have the same meaning as in 10 V.S.A. § 1422.
(D) “Snowmobile” shall have the same meaning as set forth in 23 V.S.A. § 3201.
(E) “Vessel” shall have the same meaning as set forth in 23 V.S.A. § 3302.
(Amended 1981, No. 246 (Adj. Sess.), § 3; 1997, No. 117 (Adj. Sess.), § 5; 1999, No. 163 (Adj. Sess.), § 1; 2001, No. 63, § 65a, eff. June 16, 2001; 2017, No. 83, § 114; 2017, No. 158 (Adj. Sess.), § 16, eff. May 21, 2018; 2019, No. 73, § 12.)
(a) The county sheriffs, sheriff’s deputies, constables, officers or members of the village or city police, State Police, and investigators of the Board of Liquor and Lottery shall have the authority and duty to ensure that the provisions of this title and the rules adopted by the Board of Liquor and Lottery pursuant to this title are enforced within their respective jurisdictions. Any officer who willfully refuses or neglects to perform the duties imposed upon him or her by this section shall be fined not more than $500.00 or imprisoned not more than 90 days, or both.
(b) A control commissioner or State’s Attorney who willfully refuses or neglects to investigate a complaint for a violation of this chapter, when accompanied by evidence in support of the complaint, shall be fined $300.00.
(Amended 2017, No. 83, § 115; 2017, No. 93 (Adj. Sess.), § 9; 2018, No. 1 (Sp. Sess.), § 78.)
(a) Any outside billboards or signs that contain an advertisement relating to alcoholic beverages or indicate where alcoholic beverages may be procured shall comply with the requirements of 10 V.S.A. chapter 21. A person who violates any provision of this section shall be fined not more than $100.00 nor less than $10.00, for each offense, and a conviction for a violation shall be cause for revoking the person’s license issued under this title.
(b) Notwithstanding subsection (a) of this section, advertising of alcoholic beverages on a motor vehicle lawfully transporting alcoholic beverages or on a vehicle drawn by horses shall be permitted.
(c)(1) The alcohol content of any malt beverage shall not be set forth or stated in any advertising or promotion of the beverage in any medium.
(2) A person shall not advertise or promote the sale of any fermented beverage made from malt by indicating in any way that the beverage has a higher alcoholic content than other similar beverages.
(3) Notwithstanding subdivisions (1) and (2) of this subsection, the alcoholic content of a malt beverage may be set forth on its label or packaging.
(Amended 1971, No. 110, § 1, eff. April 22, 1971; 1973, No. 215 (Adj. Sess.), § 1; eff. April 3, 1974; 1993, No. 168 (Adj. Sess.), § 4; 2017, No. 83, § 117; 2018, No. 1 (Sp. Sess.), § 79.)
(a)(1) A person that furnishes, sells, or keeps with intent to sell, or bottles or prepares for sale any alcoholic beverages, except as authorized by this title, or sells, barters, transports, imports, exports, delivers, prescribes, furnishes, or possesses alcohol, except as authorized by the Board of Liquor and Lottery, or that unlawfully manufactures alcohol or possesses a still or other apparatus for the manufacture of alcohol shall be imprisoned not more than 12 months nor less than three months or fined not more than $2,500.00 nor less than $100.00, or both.
(2) For a subsequent conviction under subdivision (1) of this subsection within one year, a person shall be imprisoned not more than three years nor less than six months or fined not more than $5,000.00 nor less than $500.00, or both.
(b) A person that willfully violates a provision of this title for which no other penalty is prescribed or that willfully violates a rule of the Board of Liquor and Lottery shall be imprisoned not more than three months nor less than one month or fined not more than $500.00 nor less than $100.00, or both.
(c) The provisions of subsection (b) of this section shall not apply to a violation of subsection 1005(a) of this title, relating to purchase of tobacco products, tobacco substitutes, or tobacco paraphernalia by a person under 21 years of age.
(Amended 1991, No. 70, § 4, eff. May 1, 1992; 2017, No. 83, § 118; 2018, No. 1 (Sp. Sess.), § 80; 2019, No. 27, § 7, eff. Sept. 1, 2019; 2019, No. 73, § 13.)
A sentence of imprisonment under this title shall not exceed a term of three years.
(Amended 2017, No. 83, § 119.)
[Repealed]
1977, No. 208 (Adj. Sess.), § 7.
[Repealed]
2017, No. 83, § 116.
[Redesignated]
2017, No. 83, § 117. [Repealed]
[Redesignated]
2017, No. 83, § 118.
[Redesignated]
2017, No. 83, § 119.
[Repealed]
2007, No. 114 (Adj. Sess.), § 5.
[Redesignated]
2017, No. 83, § 120.
Except as otherwise provided pursuant to section 752 of this chapter, as used in this chapter:
(1) “Certificate of approval” means an authorization by the Board of Liquor and Lottery pursuant to section 274 of this title to a manufacturer or distributor of malt beverages, vinous beverages, or ready-to-drink spirits beverages not licensed under the provisions of this title, to sell those beverages to holders of a packager’s or wholesale dealer’s license issued by the Board pursuant to section 272 or 273 of this title.
(2) “Franchise” or “agreement” means one or more of the following:
(A) a commercial relationship between a wholesale dealer and a certificate of approval holder or a manufacturer of a definite duration or indefinite duration that is or is not in writing and has been in existence for at least one year;
(B) a relationship that has been in existence for at least one year in which the wholesale dealer is granted the right to offer and sell the brands of malt beverages, vinous beverages, or ready-to-drink spirits beverages offered by the certificate of approval holder or manufacturer;
(C) a relationship that has been in existence for at least one year in which the wholesale dealer, as an independent business, constitutes a component of a certificate of approval holder’s or manufacturer’s distribution system;
(D) a relationship that has been in existence for at least one year in which the wholesale dealer’s business is substantially associated with the certificate of approval holder’s or manufacturer’s brand, advertising, or other commercial symbol designating the manufacturer;
(E) a relationship that has been in existence for at least one year in which the wholesale dealer’s business is substantially reliant on the certificate of approval holder or manufacturer for the continued supply of malt beverages, vinous beverages, or ready-to-drink spirits beverages; or
(F) a written or oral arrangement for a definite or indefinite period that has been in existence for at least one year in which a certificate of approval holder or manufacturer grants to a wholesale dealer a license to use a trade name, trademark, service mark, or related characteristic, and in which there is a community of interest in the marketing of goods or services at wholesale, retail, by lease, or otherwise.
(3) “Franchisee” means any malt beverages, vinous beverages, or ready-to-drink spirits beverages wholesale dealer to whom a franchise or agreement as defined in this section is granted or offered, or any malt beverages, vinous beverages, or ready-to-drink spirits beverages certificate of approval holder or manufacturer who is a party to a franchise or agreement as defined in this section.
(4) “Franchisor” means any malt beverages, vinous beverages, or ready-to-drink spirits beverages certificate of approval holder or manufacturer who enters into any franchise or agreement with a malt beverages or vinous beverages wholesale dealer, or any malt beverages or vinous beverages certificate of approval holder or manufacturer who is a party to a franchise or agreement as defined in this section.
(5) “Territory” or “sales territory” means the area of sales responsibility designated by any agreement or franchise between any franchisee or franchisor for the brand or brands of any franchisor or manufacturer.
(6) “Brand” and “brands” are synonymous with label and labels.
(7) “Wholesale dealer” means a packager licensed pursuant to section 272 of this title or a wholesale dealer licensed pursuant to section 273 of this title.
(Added 1975, No. 199 (Adj. Sess.); amended 1983, No. 197 (Adj. Sess.), § 1; 2017, No. 83, § 121; 2017, No. 145 (Adj. Sess.), § 2, eff. Jan. 1, 2019; 2018, No. 1 (Sp. Sess.), § 81; 2021, No. 177 (Adj. Sess.), § 31, eff. July 1, 2022.)
A manufacturer or certificate of approval holder shall not do any of the following:
(1) Induce or coerce, or attempt to induce or coerce, any wholesale dealer to accept delivery of any alcoholic beverage, any form of advertisement, or any other commodity, that was not ordered by the wholesale dealer.
(2) Induce or coerce, or attempt to induce or coerce, any wholesale dealer to do any illegal act or thing by threatening to cancel or terminate the wholesale dealer’s malt beverages, vinous beverages, or ready-to-drink spirits beverages franchise agreement.
(3) Fail or refuse to deliver promptly to a wholesale dealer after the receipt of its order any malt beverages, vinous beverages, or ready-to-drink spirits beverages when the product is available for immediate sale. If a manufacturer or certificate of approval holder believes in good faith that it does not have a sufficient amount of a product available for immediate sale to satisfy the demand of a wholesale dealer and its other customers, it shall allocate the available product between the wholesale dealer and its other customers in a fair and equitable manner.
(4) Require a wholesale dealer to agree to any condition, stipulation, or provision limiting the wholesale dealer’s rights to sell the product of another manufacturer or certificate of approval holder.
(Added 1975, No. 199 (Adj. Sess.); amended 1983, No. 197 (Adj. Sess.), § 2; 2017, No. 83, § 122; 2017, No. 145 (Adj. Sess.), § 3, eff. Jan. 1, 2019; 2021, No. 177 (Adj. Sess.), § 32, eff. July 1, 2022.)
Notwithstanding the terms, provisions, or conditions of any agreement or franchise, no certificate of approval holder or manufacturer shall cancel, terminate, or refuse to continue a franchise, or cause a wholesale dealer to relinquish a franchise, unless good cause is shown to exist.
(Added 1975, No. 199 (Adj. Sess.); amended 1983, No. 197 (Adj. Sess.), § 3; 2017, No. 83, § 123.)
(a)(1) Except as provided in subsection (c) of this section, a certificate of approval holder or manufacturer shall provide a franchisee or agreement holder at least 120 days’ written notice of any intent to terminate or cancel any franchise or agreement.
(2) The notice shall state the causes and reasons for the intended termination or cancellation. The franchisee shall have 120 days in which to rectify any claimed deficiency.
(b) The Superior Court, upon petition and after due notice to both parties and the opportunity to be heard, shall decide whether good cause exists to allow termination or cancellation of the franchise or agreement.
(c) The notice provisions of subsection (a) of this section may be waived if the reason for termination, cancellation, or nonrenewal is insolvency, the occurrence of an assignment for the benefit of creditors, bankruptcy, or if the certificate of approval holder or manufacturer is able to prove to the court that providing the required notice would do irreparable harm to the marketing of its product.
(Added 1975, No. 199 (Adj. Sess.); amended 1983, No. 197 (Adj. Sess.), § 4; 2017, No. 83, § 124.)
No certificate of approval holder or manufacturer who designates a sales territory for which a wholesale dealer shall be primarily responsible or in which a wholesale dealer is required to concentrate its efforts shall enter into any franchise or agreement with any other wholesale dealer for the purpose of establishing an additional franchisee for its brand or brands of malt beverages, vinous beverages, or ready-to-drink spirits beverages in the territory being primarily served or concentrated upon by the first licensed wholesale dealer.
(Added 1975, No. 199 (Adj. Sess.); amended 1983, No. 197 (Adj. Sess.), § 5; 2017, No. 83, § 125; 2021, No. 177 (Adj. Sess.), § 33, eff. July 1, 2022.)
No franchisee that is granted a sales territory for which the franchisee shall be primarily responsible or in which the franchisee is required to concentrate its efforts shall make any sale or delivery of malt beverages, vinous beverages, or ready-to-drink spirits beverages to any retail licensee whose place of business is not within the sales territory granted to the franchisee.
(Added 1975, No. 199 (Adj. Sess.); amended 2017, No. 83, § 126; 2021, No. 177 (Adj. Sess.), § 34, eff. July 1, 2022.)
(a) A wholesale dealer wishing to sell or otherwise transfer its interests in a franchise shall give at least 90 days’ written notice to the certificate of approval holder or manufacturer, prior to the sale or transfer. The notice of intended sale or transfer shall give the full name and address of the proposed transferee, along with full details outlining the qualifications of the proposed transferee that, in the opinion of the wholesale dealer, make the proposed transferee competent to operate the franchise.
(b) In the event the certificate of approval holder or manufacturer wishes to resist the proposed sale or transfer to the proposed transferee, the certificate of approval holder or manufacturer shall petition the Superior Court for a hearing not later than 60 days prior to the date of the proposed sale or transfer. The petition shall clearly state the certificate of approval holder’s or manufacturer’s reasons for resisting the proposed sale or transfer.
(c) Upon receipt of a petition brought resisting a sale or transfer, the Superior Court shall hold a hearing on the proposed transfer or sale. The court shall make a full inquiry into the qualifications of the proposed transferee and shall determine whether or not the proposed transferee is in a position to substantially continue the operations of the franchise, to assume the obligations of the franchise holder, and to conduct the business in a manner that will protect the legitimate interests of the certificate of approval holder or manufacturer.
(d) If the Superior Court finds the proposed transferee to be qualified to operate the franchise, it shall approve the transfer of the franchise to the proposed transferee.
(e) The provisions of subsections (b) through (d) of this section shall not apply to the sale or transfer of a franchise to the spouse, child, grandchild, sibling, parent, foster child, child-in-law, sibling-in-law, niece, or nephew of the owner of the wholesale dealer.
(Added 1975, No. 199 (Adj. Sess.); amended 1983, No. 197 (Adj. Sess.), § 6; 2017, No. 83, § 127; 2017, No. 145 (Adj. Sess.), § 4, eff. Jan. 1, 2019; 2021, No. 105 (Adj. Sess.), § 152, eff. July 1, 2022.)
Once a franchise has been in effect for a period of one year, the merger of the franchisor and a third party shall not void the franchise unless a waiver is received from the franchisee or unless good cause is shown pursuant to section 703 of this title and in accordance with the procedures established in section 704 of this title.
(Added 1983, No. 197 (Adj. Sess.), § 8; amended 2017, No. 83, § 128.)
The provisions of this chapter shall apply to the heirs, successors, and assigns of any franchisor or franchisee.
(Added 1983, No. 197 (Adj. Sess.), § 9; amended 2017, No. 83, § 129.)
[Redesignated]
2017, No. 83, § 129.
(a) The provisions of this subchapter shall apply to any franchise between a wholesale dealer and either:
(1) a certificate of approval holder that produces or distributes a total annual volume of not more than 50,000 barrels of malt beverages and whose products comprise three percent or less of the wholesale dealer’s total annual sales of malt beverages by volume; or
(2) a manufacturer that produces a total annual volume of not more than 50,000 barrels of malt beverages and whose products comprise three percent or less of the wholesale dealer’s total annual sales of malt beverages by volume.
(b) The provisions of sections 702, 705, and 706 of this title shall apply to any franchise that is subject to the provisions of this subchapter.
(Added 2017, No. 145 (Adj. Sess.), § 5, eff. Jan. 1, 2019.)
As used in this subchapter:
(1) “Barrel” means 31 gallons of malt beverages.
(2) “Certificate of approval holder” means a holder of a certificate of approval issued by the Board of Liquor and Lottery pursuant to section 274 of this title that produces or distributes a total annual volume of not more than 50,000 barrels of malt beverages and whose products comprise three percent or less of a wholesale dealer’s total annual sales of malt beverages by volume.
(3) “Compensation” means the cost of a wholesale dealer’s laid-in inventory related to a franchise that has been or is about to be terminated plus five times the average annual gross profits earned by the wholesale dealer on the sale of products pursuant to the franchise during the last three calendar years or, if the franchise has not been in existence for three years, the period of time during which the franchise has been in existence. “Gross profits” shall equal the revenue earned by the wholesale dealer on the sale of products pursuant to the franchise minus the cost of those products, including shipping and taxes.
(4) “Franchise” means a written agreement governing a relationship between a wholesale dealer and a certificate of approval holder or manufacturer that has existed for at least one year and has one or more of the following characteristics:
(A) the wholesale dealer is granted the right to offer and sell the brands of malt beverages offered by the certificate of approval holder or manufacturer;
(B) the wholesale dealer, as an independent business, constitutes a component of a certificate of approval holder’s or manufacturer’s distribution system;
(C) the wholesale dealer’s business is substantially associated with the certificate of approval holder’s or manufacturer’s brand, advertising, or other commercial symbol designating the manufacturer;
(D) the wholesale dealer’s business is substantially reliant on the certificate of approval holder or manufacturer for the continued supply of malt beverages; or
(E) the certificate of approval holder or manufacturer has granted the wholesale dealer a license to use a trade name, trademark, service mark, or related characteristic, and there is a community of interest in the marketing of goods or services at wholesale, retail, by lease, or otherwise.
(5) “Manufacturer” means a manufacturer licensed pursuant to section 271 of this title that produces a total annual volume of not more than 50,000 barrels of malt beverages and whose products comprise three percent or less of a wholesale dealer’s total annual sales of malt beverages by volume.
(6) “Total annual sales” means the total volume of all malt beverages sold by a wholesale dealer in the last four completed calendar quarters. A wholesale dealer’s total annual sales of malt beverages shall include the worldwide, aggregate amount of all brands of malt beverages that were sold, directly or indirectly, during the last four completed calendar quarters by the wholesale dealer and any entity that controlled, was controlled by, or was under common control with the wholesale dealer.
(7) “Total annual volume” means:
(A) the amount of malt beverages manufactured worldwide during the last four completed calendar quarters, directly or indirectly, by or on behalf of:
(i) the certificate of approval holder or manufacturer;
(ii) any employee, director, or officer of a certificate of approval holder or manufacturer; or
(iii) an affiliate of the certificate of approval holder or manufacturer, regardless of whether the affiliation is corporate, or is by management, direction, or control; or
(B) the amount of malt beverages distributed worldwide during the last four completed calendar quarters directly or indirectly, by or on behalf of:
(i) the certificate of approval holder;
(ii) any employee, director, or officer of a certificate of approval holder; or
(iii) an affiliate of the certificate of approval holder, regardless of whether the affiliation is corporate, or is by management, direction, or control.
(Added 2017, No. 145 (Adj. Sess.), § 5, eff. Jan. 1, 2019; amended 2017, No. 145 (Adj. Sess.), § 7, eff. July 1, 2022; 2019, No. 73, § 20.)
(a) The terms of a franchise between the certificate of approval holder or manufacturer and the wholesale dealer shall govern the right to cancel, terminate, refuse to continue, or to cause a wholesale dealer to relinquish a franchise.
(b) In the absence of a provision in a written franchise agreement to the contrary, the certificate of approval holder or manufacturer may cancel, terminate, refuse to continue, or cause the wholesale dealer to relinquish the franchise for good cause as provided pursuant to section 754 of this subchapter.
(c) In the absence of a provision in a written franchise agreement to the contrary, the certificate of approval holder or manufacturer may cancel, terminate, refuse to continue, or cause the wholesale dealer to relinquish the franchise for no cause as provided pursuant to section 755 of this subchapter.
(Added 2017, No. 145 (Adj. Sess.), § 5, eff. Jan. 1, 2019; amended 2017, No. 145 (Adj. Sess.), § 8, eff. July. 1, 2022.)
(a)(1) Except as otherwise provided pursuant to section 753 of this subchapter and subsection (d) of this section, a certificate of approval holder or manufacturer that wishes to terminate or cancel a franchise for good cause shall provide the franchisee with at least 120 days’ written notice of the intent to terminate or cancel the franchise.
(2) The notice shall state the causes and reasons for the intended termination or cancellation.
(b) A franchisee shall have 120 days in which to rectify any claimed deficiency.
(c) The Superior Court, upon petition and after providing both parties with notice and opportunity for a hearing, shall determine whether good cause exists to allow termination or cancellation of the franchise.
(d) The notice provisions of subsection (a) of this section may be waived if the reason for termination or cancellation is insolvency, the occurrence of an assignment for the benefit of creditors, bankruptcy, or if the certificate of approval holder or manufacturer is able to prove to the court that providing the required notice would do irreparable harm to the marketing of its product.
(Added 2017, No. 145 (Adj. Sess.), § 5, eff. Jan. 1, 2019.)
Except as otherwise provided pursuant to section 753 of this subchapter, a certificate of approval holder or manufacturer that wishes to terminate or cancel a franchise for no cause shall:
(1) Provide the franchisee with written notice of the intent to cancel or terminate the franchise at least 30 days before the date on which the franchise shall terminate.
(2) On or before the date the franchise shall be canceled or terminated, pay, or have paid on its behalf by a designated wholesale dealer, compensation, as defined pursuant to section 752 of this subchapter, for the franchisee’s interest in the franchise. The compensation shall be the wholesale dealer’s sole and exclusive remedy for any termination or cancellation pursuant to this section.
(Added 2017, No. 145 (Adj. Sess.), § 5, eff. Jan. 1, 2019.)
(a)(1) In the absence of a provision of the franchise to the contrary, a wholesale dealer wishing to sell or otherwise transfer its interests in a franchise shall give at least 90 days’ written notice of the proposed sale or transfer to the certificate of approval holder or manufacturer.
(2) The notice of intended sale or transfer shall give the full name and address of the proposed transferee, along with full details outlining the qualifications of the proposed transferee that, in the opinion of the wholesale dealer, make the proposed transferee competent to operate the franchise.
(b) If the certificate of approval holder or manufacturer opposes the proposed sale or transfer to the proposed transferee, the certificate of approval holder or manufacturer may either:
(1) prevent the proposed sale or transfer from occurring by paying compensation for the wholesale dealer’s interest in the franchise in the same manner as if the franchise were being terminated for no cause pursuant to section 755 of this subchapter; or
(2) not less than 60 days before the date of the proposed sale or transfer, file a petition with the Superior Court that clearly states the certificate of approval holder’s or manufacturer’s reasons for resisting the proposed sale or transfer.
(c)(1) Upon receipt of a petition pursuant to subdivision (b)(2) of this section, the Superior Court shall hold a hearing on the proposed transfer or sale. The court shall make a full inquiry into the qualifications of the proposed transferee and shall determine whether or not the proposed transferee is in a position to continue substantially the operations of the franchise, to assume the obligations of the franchise holder, and to conduct the business in a manner that will protect the legitimate interests of the certificate of approval holder or manufacturer.
(2) If the Superior Court finds the proposed transferee is qualified to operate the franchise, it shall approve the transfer of the franchise to the proposed transferee.
(d) The provisions of subsections (b) and (c) of this section shall not apply to the sale or transfer of a franchise to the spouse, child, grandchild, sibling, parent, foster child, child-in-law, sibling-in-law, niece, or nephew of the owner of the wholesale dealer.
(Added 2017, No. 145 (Adj. Sess.), § 5, eff. Jan. 1, 2019; amended 2017, No. 145 (Adj. Sess.), § 9, eff. July 1, 2022.)
In the absence of a provision of the franchise to the contrary, the merger of a certificate of approval holder or manufacturer with a third party shall not void the franchise unless good cause is shown pursuant to section 754 of this subchapter, or the franchise is terminated pursuant to section 755 of this subchapter.
(Added 2017, No. 145 (Adj. Sess.), § 5, eff. Jan. 1, 2019.; amended 2017, No. 145 (Adj. Sess.), § 10, eff. July 1, 2022.)
In the absence of a provision of the franchise to the contrary, the provisions of this subchapter shall apply to the heirs, successors, and assigns of any party to a franchise that is subject to this subchapter.
(Added 2017, No. 145 (Adj. Sess.), § 5, eff. Jan. 1, 2019; amended 2017, No. 145 (Adj. Sess.), § 11, eff. July 1, 2022.)
All franchises entered into pursuant to this subchapter shall be in writing.
(Added 2017, No. 145 (Adj. Sess.), § 6, eff. July 1, 2022.)
[Repealed]
2017, No. 83, § 130.
As used in this chapter:
(1) “Board” means the Cannabis Control Board.
(2)(A) “Cannabis” means all parts of the plant Cannabis sativa L., except as provided by subdivision (B) of this subdivision (2), whether growing or harvested, and includes:
(i) the seeds of the plant;
(ii) the resin extracted from any part of the plant; and
(iii) any compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin.
(B) “Cannabis” does not include:
(i) the mature stalks of the plant and fiber produced from the stalks;
(ii) oil or cake made from the seeds of the plant;
(iii) any compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks, fiber, oil, or cake;
(iv) the sterilized seed of the plant that is incapable of germination; or
(v) hemp or hemp products, as defined in 6 V.S.A. § 562.
(3) “Cannabis product” means concentrated cannabis and a product that is composed of cannabis and other ingredients and is intended for use or consumption, including an edible product, ointment, and tincture. Cannabis product shall include a vaporizer cartridge containing cannabis oil that is intended for use with a battery-powered device and any device designed to deliver cannabis into the body through inhalation of vapor that is sold at a cannabis establishment licensed pursuant to chapter 33 of this title. “Cannabis product” does not mean a “tobacco product” as defined in 32 V.S.A. § 7702, a “tobacco substitute” as defined in section 1001 of this title, or “tobacco paraphernalia” as defined in section 1001 of this title.
(4) “Chair” means the Chair of the Cannabis Control Board.
(5) “Criminal history record” shall have the same meaning as in 20 V.S.A. § 2056a(a).
(6) “Public place” means any street, alley, park, sidewalk, public building other than individual dwellings, any place of public accommodation as defined in 9 V.S.A. § 4501, and any place where the use or possession of a lighted tobacco product, tobacco product, or tobacco substitute is prohibited by law pursuant to 18 V.S.A. chapter 37.
(Added 2019, No. 164 (Adj. Sess.), § 2, eff. Oct. 7, 2020; amended 2023, No. 65, § 23a, eff. June 14, 2023.)
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.
(Added 2019, No. 164 (Adj. Sess.), § 2, eff. Oct. 7, 2020; amended 2025, No. 56, § 1, eff. July 1, 2025.)
No person shall consume cannabis in a public place unless specifically authorized by law. Violations shall be punished in accordance with 18 V.S.A. § 4230a.
(Added 2019, No. 164 (Adj. Sess.), § 2, eff. Oct. 7, 2020.)
(a) When a vacancy occurs on the Cannabis Control Board, the Governor shall make a public announcement about the vacancy. The Governor shall submit at least five names of potential candidates per vacancy to the Cannabis Control Board Nominating Committee for review.
(b) The Committee shall review the candidates to determine which candidates are well-qualified for appointment to the Board and shall recommend those candidates to the Governor. The names of candidates shall be confidential.
(c) The Governor shall appoint, with the advice and consent of the Senate, a chair and two members of the Board from the list of well-qualified candidates sent to the Governor by the Committee.
(Added 2019, No. 164 (Adj. Sess.), §§ 2, 6e(1), eff. Oct. 7, 2020.)
(a) Creation. The Cannabis Control Board Nominating Committee is created for the purpose of assessing the qualifications of applicants for appointment to the Cannabis Control Board in accordance with section 841 of this title.
(b) Members. The Committee shall consist of seven members who shall be selected as follows:
(1) The Governor shall appoint three members from the Executive Branch.
(2) The Speaker of the House of Representatives shall appoint two members from the House of Representatives.
(3) The Senate Committee on Committees shall appoint two members from the Senate.
(c) Duties. When the Governor submits the names of candidates for appointment to the Cannabis Control Board in accordance with section 841 of this title, the Committee shall review candidates to determine which candidates are well-qualified for the Board and submit those names to the Governor.
(d) Terms. The members of the Committee shall serve for terms of two years. Members shall serve until their successors are appointed. Members shall serve not more than three consecutive terms in any capacity. A legislative member who is appointed as a member of the Committee shall retain the position for the term for which he or she was appointed to the Committee even if the member is subsequently not reelected to the General Assembly during the member’s term on the Committee.
(e) Chair. The members shall elect their own chair.
(f) Quorum. A quorum of the Committee shall consist of four members.
(g) Staff and services. The Committee is authorized to use the staff and services of appropriate State agencies and departments as necessary to conduct investigations of applicants.
(h) Confidentiality. Except as provided in subsection (i) of this section, proceedings of the Committee, including the names of candidates considered by the Committee and information about any candidate submitted by the Governor, shall be confidential. The provisions of 1 V.S.A. § 317(e) (expiration of Public Records Act exemptions) shall not apply to the exemptions or confidentiality provisions in this subsection.
(i) Public information. The following shall be public:
(1) operating procedures of the Committee;
(2) standard application forms and any other forms used by the Committee, provided they do not contain personal information about a candidate or confidential proceedings;
(3) all proceedings of the Committee prior to the Board’s receipt of the first candidate’s completed application; and
(4) at the time the Committee sends the names of the candidates to the Governor, the total number of applicants for the vacancies and the total number of candidates sent to the Governor.
(j) Reimbursement. Legislative members of the Committee shall be entitled to per diem compensation and reimbursement for expenses in accordance with 2 V.S.A. § 23. Compensation and reimbursement shall be paid from the legislative appropriation.
(Added 2019, No. 164 (Adj. Sess.), §§ 2, 6e(2), eff. Oct. 7, 2020.)
(a) Creation. There is created within the Executive Branch an independent commission named the Cannabis Control Board for the purpose of safely, equitably, and effectively implementing and administering the laws enabling access to adult-use cannabis in Vermont.
(b) Duties. The duties of the Board shall be:
(1) rulemaking in accordance with this chapter, chapters 33-37 of this title, and 3 V.S.A. chapter 25;
(2) administration of a program for licensed cannabis establishments, which shall include compliance and enforcement;
(3) administration of the Medical Cannabis Registry on and after March 1, 2022;
(4) administration of a program for licensed medical cannabis dispensaries, which shall include compliance and enforcement, on and after March 1, 2022; and
(5) submission of an annual budget to the Governor.
(c) Membership.
(1) The Board shall be composed of a chair and two members appointed by the Governor in accordance with sections 841 and 842 of this title.
(2) All Board members shall serve for a term of three years or until a successor is appointed and shall be eligible for reappointment, provided that no member may serve more than three terms.
(3) A vacancy created before the expiration of a term shall be filled in the same manner as the original appointment for the unexpired portion of the term. A member appointed to fill a vacancy created before the expiration of a term shall not be deemed to have served a term for the purpose of subdivision (2) of this subsection.
(4) A member may be removed only for cause by the remaining members of the Commission in accordance with the Vermont Administrative Procedure Act. The Board shall adopt rules pursuant to 3 V.S.A. chapter 25 to define the basis and process for removal.
(d) Conflicts of interest.
(1) No Board member shall, during his or her term or terms on the Board, be an officer of, director of, organizer of, employee of, consultant to, or attorney for any person subject to regulation by the Board.
(2) No Board member shall participate in creating or applying any law, rule, or policy or in making any other determination if the Board member, individually or as a fiduciary, or the Board member’s spouse, parent, or child wherever residing or any other member of the Board member’s family residing in his or her household has an economic interest in the matter before the Board or has any more than a de minimus interest that could be substantially affected by the proceeding.
(3) No Board member shall, during his or her term or terms on the Board, solicit, engage in negotiations for, or otherwise discuss future employment or a future business relationship of any kind with any person subject to supervision or regulation by the Board.
(4) No Board member may appear before the Board or any other State agency on behalf of a person subject to supervision or regulation by the Board for a period of one year following his or her last day as a member of the Cannabis Control Board.
(e) Salaries. The Chair and all members of the Board shall be full-time State employees and shall be exempt from the State classified system. The Chair shall receive compensation equal to two-thirds that of a Superior Court judge, and other members shall receive compensation equal to one-half that of a Superior Court judge.
(f) Executive Director. The Board shall appoint an Executive Director who shall have prior experience in legislative or regulatory matters. The Director shall be a full-time State employee, shall be exempt from the State classified system, and shall serve at the pleasure of the Board. The Director shall be responsible for:
(1) supervising and administering the operation and implementation of this chapter and chapters 35 and 37 of this title and the rules adopted by the Board as directed by the Board;
(2) assisting the Board in its duties and administering the licensing requirements of this chapter and chapters 35 and 37 of this title;
(3) acting as Secretary to the Board, but as a nonvoting member of the Board;
(4) employing such staff as may be required to carry out the functions of the Board; and
(5) preparing an annual budget for submission to the Board.
(g) Consultant. The Board is authorized to hire a consultant as needed to assist with its duties under this section.
(h) [Repealed.]
(Added 2019, No. 164 (Adj. Sess.), §§ 2, 6e(3), eff. Oct. 7, 2020; amended 2021, No. 62, § 2, eff. June 7, 2021; 2023, No. 65, § 1, eff. June 14, 2023; 2023, No. 87 (Adj. Sess.), § 100, eff. March 13, 2024.)
(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.
(Added 2019, No. 164 (Adj. Sess.), § 2, eff. Oct. 7, 2020; amended 2025, No. 56, § 2, eff. July 1, 2025.)
(a) There is established the Cannabis Regulation Fund, which shall be managed in accordance with 32 V.S.A. chapter 7, subchapter 5. The Fund shall be maintained by the Cannabis Control Board.
(b) The Fund shall be composed of:
(1) all State application fees, annual license fees, renewal fees, and civil penalties collected by the Board pursuant to chapters 33 (cannabis establishments) and 37 (medical cannabis dispensaries) of this title;
(2) all annual and renewal fees collected by the Board pursuant to chapter 35 (medical cannabis registry) of this title; and
(3) [Repealed.]
(c) Monies from the Fund shall only be appropriated for the purposes of implementation, administration, and enforcement of this chapter and chapters 33, 35, and 37 of this title.
(d) [Repealed.]
(Added 2019, No. 164 (Adj. Sess.), § 2, eff. Oct. 7, 2020; amended 2021, No. 185 (Adj. Sess.), § E.240.1, eff. July 1, 2023; 2021, No. 185 (Adj. Sess.), § E.240.5, eff. July 1, 2025; 2023, No. 65, § 3, eff. June 14, 2023.)
(a) Authority. The Board shall have the authority to charge and collect State and local license fees as provided under this chapter and chapters 33, 35, and 37 of this title. State and local license fees shall be due and payable at the time of application or renewal.
(b) Cannabis Regulation Fund. The Board shall deposit State fees collected pursuant to chapters 33, 35, and 37 of this title into the Cannabis Regulation Fund.
(c) Distribution to municipalities. After reduction for costs of administration and collection, the Board shall pay local license fees on a quarterly basis to the municipality for which the fees were collected.
(Added 2019, No. 164 (Adj. Sess.), § 2, eff. Oct. 7, 2020; amended 2021, No. 86 (Adj. Sess.), § 1, eff. March 25, 2022.)
(a)(1) A party aggrieved by a final decision of the Board may, within 30 days of the decision, appeal that decision by filing a notice of appeal with the Executive Director who shall assign the case to an appellate officer.
(2)(A) The review shall be conducted on the basis of the record created before the Board.
(B) In cases of alleged irregularities in procedure before the Board not shown in the record, proof on that issue may be taken by the appellate officer.
(b) The appellate officer shall not substitute his or her judgment for that of the Board as to the weight of the evidence on questions of fact. The appellate officer may affirm the decision or may reverse and remand the matter with recommendations if substantial rights of the appellant have been prejudiced because the Board’s finding, inferences, conclusions, or decisions are:
(1) in violation of constitutional or statutory provisions;
(2) in excess of the statutory authority of the Board;
(3) made upon unlawful procedure;
(4) affected by other error of law;
(5) clearly erroneous in view of the evidence on the record as a whole;
(6) arbitrary or capricious; or
(7) characterized by abuse of discretion or clearly unwarranted exercise of discretion.
(c) A party aggrieved by a decision of the appellate officer may appeal to the Supreme Court, which shall review the matter on the basis of the records created before the Board.
(d) The Board shall have the authority to contract for the services of an appellate officer.
(Added 2019, No. 164 (Adj. Sess.), § 2, eff. Oct. 7, 2020.)
As used in this chapter:
(1) “Advertise” means the publication or dissemination of an advertisement.
(2) “Advertisement” means any written or verbal statement, illustration, or depiction that would reasonably have the effect of inducing sales of cannabis or cannabis products, including any written, printed, graphic, or other material; billboard, sign, or other outdoor display; other periodical literature, publication, or in a radio or television broadcast; the internet; or in any other media. The term does not include:
(A) any label affixed to any cannabis or cannabis product or any individual covering, carton, or other wrapper of that container that constitutes a part of the labeling under provisions of these standards;
(B) any editorial or other reading material, such as a news release, in any periodical or publication or newspaper for the publication of which no money or valuable consideration is paid or promised, directly or indirectly, by any cannabis establishment, and that is not written by or at the direction of the licensee;
(C) any educational, instructional, or otherwise noncommercial material that is not intended to induce sales and that does not propose an economic transaction, but that merely provides information to the public in an unbiased manner; or
(D) a sign attached to the premises of a cannabis establishment that merely identifies the location of the cannabis establishment.
(3) “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.
(4) “Applicant” means a person that applies for a license to operate a cannabis establishment pursuant to this chapter.
(5) “Board” means the Cannabis Control Board.
(6) “Cannabis” has the same meaning as provided in section 831 of this title.
(7) “Cannabis cultivator” or “cultivator” means a person licensed by the Board to engage in the cultivation of cannabis in accordance with this chapter.
(8) “Cannabis establishment” means a cannabis cultivator, propagation cultivator, wholesaler, product manufacturer, retailer, testing laboratory, or integrated licensee licensed by the Board to engage in commercial cannabis activity in accordance with this chapter.
(9) “Cannabis product” has the same meaning as provided in section 831 of this title.
(10) “Cannabis product manufacturer” or “product manufacturer” means a person licensed by the Board to manufacture cannabis products in accordance with this chapter.
(11) “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 or cultivation in accordance with this chapter.
(12) “Cannabis testing laboratory” or “testing laboratory” means a person licensed by the Board to test cannabis and cannabis products in accordance with this chapter.
(13) “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.
(14) “Chair” means the Chair of the Cannabis Control Board.
(15) “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.
(16) “Child-deterrent packaging” means tear-resistant packaging that can be sealed in a manner that would deter children under five years of age from easily accessing the contents of the package within a reasonable time and not difficult for adults to use properly.
(17) “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 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.
(18) “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.
(19) “Dispensary” means a business organization licensed pursuant to chapter 37 of this title.
(20) [Repealed.]
(21) “Flavored oil cannabis product” means any oil cannabis product that contains an additive to give it a characterizing flavor.
(22) “Hemp” means the plant Cannabis sativa L. and any part of the plant, including the seeds and all derivatives, extracts, cannabinoids, acids, salts, isomers, and salts of isomers, whether growing or not, with the federally defined tetrahydrocannabinol concentration level of hemp.
(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 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.
(24) “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.
(25) “Municipality” means a town, city, or incorporated village.
(26) “Owner” means a natural person who controls, or shares control of, a Cannabis Establishment.
(27) “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.
(28) “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.
(29) “Principal” means one of the following:
(A) the president, vice president, secretary, treasurer, manager, or similar officer of a corporation as provided for by 11A V.S.A. § 8.40, nonprofit corporation as provided for by 11B V.S.A. § 8.40, mutual benefit enterprise as provided for by 11C V.S.A. § 822, cooperative as provided for by 11 V.S.A. § 1013, or worker cooperative corporation as provided for by 11 V.S.A. § 1089;
(B) a director of a corporation as provided for by 11A V.S.A. § 8.01, nonprofit corporation as provided for by 11B V.S.A. § 8.01, mutual benefit enterprise as provided for by 11C V.S.A. § 801, cooperative as provided for by 11 V.S.A. § 1006, or worker cooperative corporation as provided for by 11 V.S.A. § 1089;
(C) a member of a member-managed limited liability company as provided for by 11 V.S.A. § 4054;
(D) manager of a manager-managed limited liability company as provided for by 11 V.S.A. § 4054; or
(E) a partner of a partnership as provided for by 11 V.S.A. § 3212 or a general partner of a limited partnership as provided for by 11 V.S.A chapter 23.
(30) “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.
(31) “Cannabis propagation cultivator” or “propagation cultivator” means a person licensed by the Board to cultivate cannabis clones, immature plants, and mature plants in accordance with this chapter.
(Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 62, § 5, eff. June 7, 2021; 2021, No. 86 (Adj. Sess.), § 2, eff. March 25, 2022; 2021, No. 158 (Adj. Sess.), § 1, eff. May 31, 2022; 2023, No. 65, § 4, eff. June 14, 2023; 2025, No. 56, § 3, eff. July 1, 2025.)
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.)
The Board shall have the authority to regulate synthetic cannabinoids and hemp-derived cannabinoids, including delta-8 and delta-10 tetrahydrocannabinol.
(Added 2021, No. 158 (Adj. Sess.), § 10, eff. May 31, 2022.)
(a)(1) Prior to a cannabis retailer or the retail portion of 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 but shall not assess a fee for a local control license issued to a cannabis establishment. 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 upon ordinances regulating signs or public nuisances adopted pursuant to 24 V.S.A. § 2291, except that ordinances may not regulate public nuisances as applied to outdoor cultivators that are regulated in the same manner as the Required Agricultural Practices under subdivision 869(f)(2) of this title. 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, unless the Board finds that the municipality has exceeded its authority under this section.
(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, or regulate a cannabis establishment in a manner that has the effect of prohibiting the operation of a cannabis establishment;
(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; or
(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; amended 2021, No. 62, § 1, eff. June 7, 2021; 2021, No. 86 (Adj. Sess.), § 3, eff. March 25, 2022; 2023, No. 65, § 5, eff. June 14, 2023.)
(a) “Advertise” and “advertisement” have the same meaning as in section 861 of this title.
(b) A cannabis establishment advertisement shall not contain any statement or illustration that:
(1) is deceptive, false, or misleading;
(2) promotes overconsumption;
(3) represents that the use of cannabis has curative effects;
(4) [Repealed.]
(5) offers free samples of cannabis or cannabis products;
(6) depicts a person under 21 years of age consuming cannabis or cannabis products; or
(7) is designed to be or has the effect of being particularly appealing to persons under 21 years of age.
(c) Cannabis establishments shall not advertise their products via any medium unless the licensee can show that not more than 15 percent of the audience is reasonably expected to be under 21 years of age.
(d) All advertisements shall contain health warnings adopted by rule by the Board in consultation with the Department of Health.
(e) All advertisements shall be submitted to the Board on a form or in a format prescribed by the Board, prior to the dissemination of the advertisement. The Board may:
(1) require a specific disclosure be made in the advertisement in a clear and conspicuous manner if the Board determines that the advertisement would be false or misleading without such a disclosure; or
(2) require changes that are necessary to protect the public health, safety, and welfare or consistent with dispensing information for the product under review.
(Added 2021, No. 62, § 6, eff. June 7, 2021; amended 2023, No. 166 (Adj. Sess.), § 2a, eff. June 10, 2024.)
(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.)
(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.
(d) In accordance with section 864 of this title, advertising by a cannabis establishment shall not depict a person under 21 years of age consuming cannabis or cannabis products or be designed to be or have the effect of being particularly appealing to persons under 21 years of age. Cannabis establishments shall not advertise their products via any medium unless the licensee can show that not more than 15 percent of the audience is reasonably expected to be under 21 years of age.
(Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 62, § 7, eff. June 7, 2021.)
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.)
(a) Except as provided in section 907 of this title relating to a retailer with a medical endorsement, 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) 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;
(3) cannabis products that contain delta-9 tetrahydrocannabinol and nicotine or alcoholic beverages; and
(4) 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.
(b)(1) Except as provided by subdivision (2) of this subsection and in section 907 of this title relating to a retailer with a medical endorsement, solid and liquid concentrate cannabis products with greater than 60 percent tetrahydrocannabinol may be produced by a licensee and sold to another licensee in accordance with subchapter 3 of this chapter but shall not be sold to the public by a licensed retailer or integrated licensee.
(2) Liquid concentrate cannabis products with greater than 60 percent tetrahydrocannabinol that are prepackaged for use with battery-powered devices shall be permitted to be sold to the public by a licensed retailer or integrated licensee.
(Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 158 (Adj. Sess.), § 11, eff. May 31, 2022; 2023, No. 166 (Adj. Sess.), § 3, eff. June 10, 2024.)
(a) 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, farm crop, or agricultural crop for the purposes of 32 V.S.A. chapter 124, 32 V.S.A. § 9741, or other relevant State law.
(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, unless otherwise provided under this chapter.
(d)(1) The cultivation, processing, and manufacturing of cannabis by all cultivators regulated under this chapter shall comply with the following sections of the Required Agricultural Practices as administered and enforced by the Board:
(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.
(f) Notwithstanding subsection (a) of this section, a cultivator licensed under this chapter who initiates cultivation of cannabis outdoors on a parcel of land shall:
(1) be regulated in the same manner as “farming” and not as “development” on the tract of land where cultivation occurs for the purposes of permitting under 10 V.S.A. chapter 151;
(2) not be regulated by a municipal bylaw adopted under 24 V.S.A. chapter 117 in the same manner that Required Agricultural Practices are not regulated by a municipal bylaw under 24 V.S.A. § 4413(d)(1)(A), except that there shall be the following minimum setback distance between the cannabis plant canopy and a property boundary or edge of a highway:
(A) if the cultivation occurs in a cannabis cultivation district adopted by a municipality pursuant to 24 V.S.A. § 4414a, the setback shall be not larger than 25 feet as established by the municipality;
(B) if the cultivation occurs outside of a cannabis cultivation district adopted by a municipality pursuant to 24 V.S.A. § 4414a or no cannabis cultivation district has been adopted by the municipality, the setback shall be not larger than 50 feet as established by the municipality; and
(C) if a municipality does not have zoning, the setback shall be 10 feet;
(3) be eligible to enroll in the Use Value Appraisal Program under 32 V.S.A. chapter 124 for the cultivation of cannabis;
(4) be exempt under 32 V.S.A. § 9741(3), (25), and (50) from the tax on retail sales imposed under 32 V.S.A. § 9771; and
(5) be entitled to the rebuttable presumption that cultivation does not constitute a nuisance under 12 V.S.A. chapter 195 in the same manner as “agricultural activities” are entitled to the rebuttable presumption, provided that, notwithstanding 12 V.S.A. § 5753(a)(1)(A), the cultivation is complying with subsections (b) and (d) of this section.
(Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 158 (Adj. Sess.), § 2, eff. May 31, 2022; 2023, No. 65, § 6, eff. June 14, 2023; 2023, No. 166 (Adj. Sess.), § 16, eff. January 1, 2025.)
(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.)
(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.)
(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 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 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 from a reputable commercial provider. Any such third-party background check shall include a multistate and multijurisdiction criminal record locator. Consumer credit scores shall not be a basis for license denial.
(Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 158 (Adj. Sess.), § 13, eff. May 31, 2022; 2025, No. 56, § 5, eff. July 1, 2025.)
(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 the person’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) Once an identification card application has been submitted, the Board, for good cause, may 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 by someone who is a cardholder. 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.
(Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 158 (Adj. Sess.), § 14, eff. May 31, 2022; 2025, No. 56, § 6, eff. July 1, 2025.)
The Cannabis Control Board shall establish a cannabis quality control program for the following purposes:
(1) to develop potency and contaminant testing protocols for hemp, hemp-infused products, cannabis, and cannabis products;
(2) to verify cannabinoid label guarantees of hemp, hemp-infused products, cannabis, and cannabis products;
(3) to test for pesticides, solvents, heavy metals, mycotoxins, and bacterial and fungal contaminants in hemp, hemp-infused products, cannabis, and cannabis products; and
(4) to certify testing laboratories that can offer the services in subdivisions (2) and (3) of this section.
(Added 2021, No. 158 (Adj. Sess.), § 4, eff. May 31, 2022.)
(a) It is the purpose of this section to authorize the Board to effectively oversee cannabis establishments and the persons authorized to operate such establishments in case of incapacity of a principal, dysfunction, operating distress, interruption in licensure, abrupt closure, or judicial intervention including receivership.
(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. 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. A person’s eligibility for a permit under this subsection shall not be limited by subdivision 901(d)(3) of this title.
(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. 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.
(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 court. In the alternative, the court may ask that the Board recommend such person.
(Added 2025, No. 56, § 7, eff. July 1, 2025.)
(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 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) 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 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) of this subsection (d). Each license shall permit only one location of the establishment.
(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) 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.
(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.]
(Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 86 (Adj. Sess.), § 4, eff. March 25, 2022; 2021, No. 158 (Adj. Sess.), § 15, eff. May 31, 2022; 2023, No. 65, § 8, eff. June 14, 2023.)
(a) It is the purpose of this section to protect the reputation, security practices, and trade secrets of licensees from undue public disclosure while securing the public’s right to know of government licensing actions relevant to the public health, safety, and welfare.
(b) All meetings and hearings of the Board shall be subject to the Vermont Open Meeting Law.
(c) The following shall be exempt from public inspection and copying under the Public Records Act and shall be kept confidential:
(1) records related to licensee security, safety, transportation, or trade secrets, including information provided in an operating plan pursuant to subdivision 881(a)(1)(B) of this title; and
(2) records related to complaints, investigations, or proceedings, except as provided in subsection (d) of this section.
(d)(1) If a complaint or investigation results in formal action to revoke, suspend, condition, reprimand, warn, fine, or otherwise to penalize a licensee based on noncompliance with law or regulation, the case record, as defined by 3 V.S.A. § 809(e), shall be available for public inspection and copying under Vermont’s Public Records Act.
(2) The Board shall prepare and maintain an aggregated list of all closed investigations into misconduct or noncompliance from whatever source derived. The information contained in the list shall be available for public inspection and copying under Vermont’s Public Records Act. The list shall contain the date, nature, and outcome of each complaint. The list shall not contain the identity of the subject licensee unless formal action resulted, as described in subdivision (1) of this subsection.
(e) Notwithstanding 1 V.S.A. § 317(e), the Public Records Act exemption created in this section shall continue in effect and shall not be repealed through operation of 1 V.S.A. § 317(e).
(Added 2023, No. 65, § 9, eff. June 14, 2023.)
(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.)
(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) On or before 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; amended 2021, No. 105 (Adj. Sess.), § 154, eff. July 1, 2022.)
(a) A cultivator licensed under this chapter may:
(1) cultivate, process, package, label, transport, test, and sell cannabis to a licensed wholesaler, product manufacturer, retailer, integrated licensee, and dispensary;
(2) purchase and sell cannabis seeds and immature cannabis plants to another licensed cultivator and propagation cultivator; and
(3) possess and sell cannabis products to a licensed wholesaler, product manufacturer, retailer, integrated licensee, and dispensary.
(b) Cultivation of cannabis shall occur only:
(1) on property lawfully in possession of the cultivator or with the written consent of the person in lawful possession of the property; and
(2) in an area that is screened from public view and access is limited to the cultivator and persons 21 years of age or older who have permission from the cultivator.
(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 “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.
(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; amended 2021, No. 86 (Adj. Sess.), § 5, eff. March 25, 2022; 2021, No. 158 (Adj. Sess.), § 6, eff. May 31, 2022; 2023, No. 65, § 10, eff. June 14, 2023; 2025, No. 56, § 9, eff. July 1, 2025.)
(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.)
(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.
(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.
(Added 2023, No. 65, § 11, eff. June 14, 2023; amended 2025, No. 56, § 10, eff. July 1, 2025.)
A wholesaler licensed under this chapter may:
(1) purchase cannabis and cannabis products from a licensed cannabis establishment;
(2) transport, process, package, and sell cannabis and cannabis products to a licensed cannabis establishment; and
(3) sell cannabis seeds or immature cannabis plants to a licensed cultivator.
(Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 158 (Adj. Sess.), § 7, eff. May 31, 2022; 2023, No. 65, § 13, eff. June 14, 2023.)
A product manufacturer licensed under this chapter may:
(1) purchase cannabis and cannabis products from a licensed cannabis establishment;
(2) use cannabis and cannabis products to produce cannabis products; and
(3) transport, process, package, and sell cannabis products to a licensed cannabis establishment.
(Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2023, No. 65, § 14, eff. June 14, 2023.)
(a) A retailer licensed under this chapter may:
(1) purchase cannabis and cannabis products from a licensed cannabis establishment; and
(2) transport, possess, package, and sell cannabis and cannabis products to the public for consumption off the registered premises or for cultivation.
(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) Delivery of cannabis to customers is prohibited, except as provided in subsection (f) of this section.
(f) A retailer may obtain a medical-use endorsement in compliance with rules adopted by the Board and the endorsement shall permit the retailer to:
(1) sell tax-free cannabis and cannabis products to registered patients directly or through their registered caregivers:
(A) that are otherwise prohibited for sale to nonmedical customers pursuant to subdivisions 868(a)(1) and (b)(1) of this title;
(B) that are otherwise prohibited for sale to nonmedical customers if they are determined to be appropriate for use by a registered patient as determined by the Board through rulemaking; and
(C) quantities in excess of the single transaction limit in subsection (b) of this section provided they do not exceed the per patient possession limit in section 952 of this title.
(2) deliver cannabis and cannabis products to registered patients directly or through their registered caregivers; and
(3) allow registered patients to purchase directly or through their registered caregivers cannabis and cannabis products without leaving their vehicles.
(Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 86 (Adj. Sess.), § 6, eff. March 25, 2022; 2021, No. 158 (Adj. Sess.), § 17, eff. May 31, 2022; 2023, No. 65, § 15, eff. June 14, 2023; 2023, No. 166 (Adj. Sess.), § 5, eff. June 10, 2024.)
(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.)
(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 not 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.
(c) An integrated licensee shall comply with the provisions of subsection 908(f) of this title and have its cannabis or cannabis products tested by an independent licensed testing laboratory.
(Added 2019, No. 164 (Adj. Sess.), § 7, eff. Oct. 7, 2020; amended 2021, No. 158 (Adj. Sess.), § 18, eff. May 31, 2022.)
The following fees shall apply to each person or product licensed by the Board:
(1) Cultivators.
(A) Outdoor cultivators.
(i) Outdoor cultivator tier 1. Outdoor cultivators with up to 1,000 square feet of plant canopy or fewer than 125 cannabis plants in an outdoor cultivation space shall be assessed an annual licensing fee of $750.00.
(ii) Outdoor cultivator tier 2. Outdoor cultivators with up to 2,500 square feet of plant canopy in an outdoor cultivation space shall be assessed an annual licensing fee of $1,875.00.
(iii) Outdoor cultivator tier 3. Outdoor cultivators with up to 5,000 square feet of plant canopy in an outdoor cultivation space shall be assessed an annual licensing fee of $4,000.00.
(iv) Outdoor cultivator tier 4. Outdoor cultivators with up to 10,000 square feet of plant canopy in an outdoor cultivation space shall be assessed an annual licensing fee of $8,000.00.
(v) Outdoor cultivator tier 5. Outdoor cultivators with up to 20,000 square feet of plant canopy in an outdoor cultivation space shall be assessed an annual licensing fee of $18,000.00.
(vi) Outdoor cultivator tier 6. Outdoor cultivators with up to 37,500 square feet of plant canopy in an outdoor cultivation space shall be assessed an annual licensing fee of $34,000.00.
(B) Indoor cultivators.
(i) Indoor cultivator tier 1. Indoor cultivators with up to 1,000 square feet of plant canopy in an indoor cultivation space shall be assessed an annual licensing fee of $1,500.00.
(ii) Indoor cultivator tier 2. Indoor cultivators with up to 2,500 square feet of plant canopy in an indoor cultivation space shall be assessed an annual licensing fee of $3,750.00.
(iii) Indoor cultivator tier 3. Indoor cultivators with up to 5,000 square feet of plant canopy in an indoor cultivation space shall be assessed an annual licensing fee of $8,000.00.
(iv) Indoor cultivator tier 4. Indoor cultivators with up to 10,000 square feet of plant canopy in an indoor cultivation space shall be assessed an annual licensing fee of $16,000.00.
(v) Indoor cultivator tier 5. Indoor cultivators with up to 15,000 square feet of plant canopy in an indoor cultivation space shall be assessed an annual licensing fee of $36,000.00.
(vi) Indoor cultivator tier 6. Indoor cultivators with up to 25,000 square feet of plant canopy in an indoor cultivation space shall be assessed an annual licensing fee of $75,000.00.
(C) Mixed cultivator tiers.
(i) Mixed cultivator tier 1. Mixed cultivators with the following at the same licensed premises shall be assessed an annual licensing fee of $2,250.00: up to 1,000 square feet of plant canopy in an indoor cultivation space and up to 125 cannabis plants in an outdoor cultivation space.
(ii) Mixed cultivator tier 2. Mixed cultivators with the following at the same licensed premises shall be assessed an annual licensing fee of $5,625.00: up to 2,500 square feet of plant canopy in an indoor cultivation space and up to 312 cannabis plants in an outdoor cultivation space.
(iii) Mixed cultivator tier 3. Mixed cultivators with the following at the same licensed premises shall be assessed an annual licensing fee of $5,500.00: up to 1,000 square feet of plant canopy in an indoor cultivation space and up to 625 cannabis plants in an outdoor cultivation space.
(iv) Mixed cultivator tier 4. Mixed cultivators with the following at the same licensed premises shall be assessed an annual licensing fee of $9,500.00: up to 1,000 square feet of plant canopy in an indoor cultivation space and up to 1,250 cannabis plants in an outdoor cultivation space.
(v) Mixed cultivator tier 5. Mixed cultivators with the following at the same licensed premises shall be assessed an annual licensing fee of $19,500.00: up to 1,000 square feet of plant canopy in an indoor cultivation space and up to 2,500 cannabis plants in an outdoor cultivation space.
(2) Wholesalers. Wholesalers shall be assessed an annual licensing fee of $4,000.00.
(3) Manufacturers.
(A) Manufacturer tier 1. Manufacturers that process and manufacture cannabis in order to produce cannabis products without using solvent-based extraction and not more than $50,000.00 per year in cannabis products based on the manufacturer’s total annual sales in cannabis products shall be assessed an annual licensing fee of $750.00.
(B) Manufacturer tier 2. Manufacturers that process and manufacture cannabis in order to produce cannabis products without using solvent-based extraction shall be assessed an annual licensing fee of $2,500.00.
(C) Manufacturer tier 3. Manufacturers that process and manufacture cannabis in order to produce cannabis products using all allowable methods of extraction, including solvent-based extraction, shall be assessed an annual licensing fee of $15,000.00.
(4) Retailers.
(A) Retailers that sell cannabis and cannabis products to consumers shall be assessed an annual licensing fee of $10,000.00.
(B) Retailers that include a medical-use endorsement shall be assessed an annual licensing fee of $10,250.00.
(5) Testing laboratories. Testing laboratories shall be assessed an annual licensing fee of $1,500.00.
(6) Integrated licensees. Integrated licensees shall be assessed an annual licensing fee of $100,000.00.
(7) Propagation cultivators. Propagation cultivators shall be assessed an annual licensing fee of $500.00.
(8) Employees. Cannabis establishments licensed by the Board shall be assessed an annual licensing fee of $50.00 for each employee.
(9) Products. Cannabis establishments licensed by the Board shall be assessed an annual product licensing fee of $50.00 for every type of cannabis and cannabis product that is sold in accordance with this chapter.
(10) 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) One-time fees.
(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.
(Added 2021, No. 86 (Adj. Sess.), § 7, eff. March 25, 2022; amended 2021, No. 158 (Adj. Sess.), § 19, eff. May 31, 2022; 2023, No. 65, § 16, eff. June 14, 2023; 2023, No. 166 (Adj. Sess.), § 6, eff. July 1, 2025.)
The Cannabis Control Board may, in its discretion and pursuant to adopted rule or readily accessible policy, or both, reduce or waive cannabis establishment application and licensing fees for social equity applicants as defined by the Board, including individuals from communities that historically have been disproportionately impacted by cannabis prohibition and individuals directly and personally impacted by cannabis prohibition.
(Added 2021, No. 86 (Adj. Sess.), § 7, eff. March 25, 2022.)
As used in this chapter:
(1) “Board” means the Cannabis Control Board.
(2) “Cannabis” has the same meaning as provided in section 831 of this title.
(3) “Cannabis product” has the same meaning as provided in section 831 of this title.
(4) “Dispensary” means a business organization licensed pursuant to chapter 37 of this title or 18 V.S.A. chapter 86.
(5)(A) “Health care professional” means an individual licensed to practice medicine under 26 V.S.A. chapter 23 or 33, an individual licensed as a naturopathic physician under 26 V.S.A. chapter 81, an individual certified as a physician assistant under 26 V.S.A. chapter 31, or an individual licensed as an advanced practice registered nurse under 26 V.S.A. chapter 28.
(B) This definition includes individuals who are professionally licensed under substantially equivalent provisions in New Hampshire, Massachusetts, or New York.
(6) “Immature cannabis plant” means a female cannabis plant that has not flowered and that does not have buds that may be observed by visual examination.
(7) “Mature cannabis plant” means a female cannabis plant that has flowered and that has buds that may be observed by visual examination.
(8) “Qualifying medical condition” means:
(A) cancer, multiple sclerosis, positive status for human immunodeficiency virus, acquired immune deficiency syndrome, glaucoma, Crohn’s disease, Parkinson’s disease, post-traumatic stress disorder, ulcerative colitis, or the treatment of these conditions, if the disease or the treatment results in severe, persistent, and intractable symptoms; or
(B) a disease or medical condition or its treatment that is chronic, debilitating, and produces one or more of the following intractable symptoms: cachexia or wasting syndrome, chronic pain, severe nausea, or seizures.
(9) “Registry” means the Vermont Medical Cannabis Registry.
(Added 2019, No. 164 (Adj. Sess.), § 9, eff. March 1, 2022; amended 2023, No. 65, § 17, eff. June 14, 2023; 2023, No. 166 (Adj. Sess.), § 7, eff. June 10, 2024.)
(a) The Board shall establish and manage the Vermont Medical Cannabis Registry for the purpose of allowing persons with qualifying medical conditions and their caregivers to obtain privileges regarding cannabis and cannabis product possession, use, cultivation, and purchase.
(b) A person who is a registered patient or a registered caregiver on behalf of a patient may:
(1) Cultivate not more than six mature and 12 immature cannabis plants. Any cannabis harvested from the plants shall not count toward the two-ounce possession limit in subdivision (2) of this subsection, provided it is stored in an indoor facility on the property where the cannabis was cultivated and reasonable precautions are taken to prevent unauthorized access to the cannabis.
(2) Possess not more than two ounces of cannabis.
(3) Purchase cannabis and cannabis products at a licensed medical cannabis dispensary. Pursuant to chapter 37 of this title, a dispensary may offer goods and services that are not permitted at a cannabis establishment licensed pursuant to chapter 33 of this title.
(c)(1) Individual names and identifying information about patients and caregivers on the Registry are exempt from public inspection and copying under the Public Records Act and shall be kept confidential. 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).
(2) In response to a person-specific or property-specific inquiry by a law enforcement officer or agency made in the course of a bona fide investigation or prosecution, the Board may verify the identities and registered property addresses of the registered patient and the patient’s registered caregiver. The law enforcement officer or agency shall keep confidential any identities and addresses received pursuant to this subdivision.
(d) The Board shall establish an application process through rulemaking. The Board shall approve or deny the application for registration in writing within 30 days from receipt of a completed registration application.
(e)(1) A person who is 21 years of age or older who applies to be a registered patient shall provide the Board with a Health Care Professional Verification Form as required pursuant to rules adopted by the Board.
(2) A person who is under 21 years of age who applies to be a registered patient shall provide the Board with a Health Care Professional Verification Form from a health care professional who has a treating or consulting relationship of not less than three months’ duration with the applicant, in the course of which the health care professional has completed a full assessment of the applicant’s medical history and current medical condition, including a personal physical examination. The three-month requirement shall not apply if:
(A) an applicant has been diagnosed with:
(i) a terminal illness;
(ii) cancer; or
(iii) acquired immune deficiency syndrome;
(B) an applicant is currently under hospice care;
(C) an applicant had been diagnosed with a qualifying medical condition by a health care professional in another jurisdiction in which the applicant had been formerly a resident and the patient, now a resident of Vermont, has the diagnosis confirmed by a health care professional in this State or a neighboring state as permitted by subdivision 951(5)(B) of this title, and the new health care professional has completed a full assessment of the patient’s medical history and current medical condition, including a personal physical examination;
(D) a patient who is already on the Registry changes health care professionals three months or less prior to the renewal of the patient’s registration, provided the patient’s new health care professional has completed a full assessment of the patient’s medical history and current medical condition, including a personal physical examination;
(E) an applicant is referred by the patient’s health care professional to another health care professional who has completed advanced education and clinical training in specific qualifying medical conditions, and that health care professional conducts a full assessment of the applicant’s medical history and current medical condition, including a personal physical examination; or
(F) an applicant’s qualifying medical condition is of recent or sudden onset.
(Added 2019, No. 164 (Adj. Sess.), § 9, eff. March 1, 2022; amended 2023, No. 65, § 17, eff. June 14, 2023; 2023, No. 166 (Adj. Sess.), § 7a, eff. June 10, 2024.)
(a) Pursuant to rules adopted by the Board, a person may register with the Board to obtain the benefits of the Registry as provided in section 952 of this title.
(b) An application by a person under 18 years of age shall be signed by both the applicant and the applicant’s parent or guardian.
(Added 2019, No. 164 (Adj. Sess.), § 9, eff. March 1, 2022.)
(a) Pursuant to rules adopted by the Board, a person may register with the Board as a caregiver of a registered patient to obtain the benefits of the Registry as provided in section 952 of this title.
(b) The Board shall conduct a name and date of birth Vermont criminal conviction record background check and obtain information from the Child Protection Registry maintained by the Department for Children and Families and from the Vulnerable Adult Abuse, Neglect, and Exploitation Registry maintained by the Department of Disabilities, Aging, and Independent Living (collectively, the Registries) for any person who applies to be a caregiver.
(c) The Board shall adopt rules that set forth standards for determining whether an applicant should be denied a caregiver card because of the applicant’s criminal history record or status on either Registry.
(d)(1) Except as provided in subdivision (2) of this subsection, a caregiver may serve not more than two patients at a time, and a patient shall have only one registered caregiver at a time. A patient may serve as a caregiver for one other patient.
(2) A patient who is under 18 years of age may have two caregivers. Additional caregivers shall be at the discretion of the Board.
(e) Medicaid funds shall not be used to support a caregiver in the cultivation or distribution of cannabis on behalf of a patient.
(Added 2019, No. 164 (Adj. Sess.), § 9, eff. March 1, 2022; amended 2023, No. 65, § 17, eff. June 14, 2023.)
(a) A registration card shall expire three years after the date of issuance. A patient or caregiver may renew the card according to protocols adopted by the Board.
(b) The Board shall charge and collect a $50.00 registration and renewal fee for patients and caregivers. Fees shall be deposited in the Cannabis Regulation Fund as provided in section 845 of this title.
(Added 2019, No. 164 (Adj. Sess.), § 9, eff. March 1, 2022; amended 2021, No. 86 (Adj. Sess.), § 8, eff. March 25, 2022; 2023, No. 65, § 17, eff. June 14, 2023; 2023, No. 166 (Adj. Sess.), § 8, eff. June 10, 2024.)
The Board shall adopt rules for the administration of this chapter.
(Added 2019, No. 164 (Adj. Sess.), § 9, eff. June 1, 2021; amended 2023, No. 65, § 17, eff. June 14, 2023.)
(a) It is the intent of the General Assembly to provide a well-regulated system of licensed medical cannabis dispensaries for the purpose of providing cannabis, cannabis products, and related services to patients and caregivers who are registered on the Medical Cannabis Registry pursuant to chapter 35 of this title. Vermont first authorized dispensaries in 2011, and it is the intent of the General Assembly that dispensaries continue to provide unique goods and services to registered patients and caregivers for therapeutic purposes in a market that also allows cannabis establishments licensed pursuant to chapter 33 of this title.
(b) A dispensary licensed pursuant to this chapter may engage in practices that are not permitted for a cannabis establishment. As such, a dispensary may:
(1) be vertically integrated under one license;
(2) sell tax-free cannabis and cannabis products to patients and caregivers;
(3) deliver cannabis and cannabis products to patients and caregivers;
(4) allow patients and caregivers to purchase cannabis and cannabis products without leaving their vehicles;
(5) produce and sell cannabis and cannabis products that have a higher THC content than is permitted for a cannabis establishment;
(6) produce and sell cannabis products that may not otherwise be permitted for a cannabis establishment but that would be appropriate for use by a patient as determined by the Board through rulemaking; and
(7) sell larger quantities of cannabis and cannabis products than is permitted for a cannabis establishment.
(Added 2019, No. 164 (Adj. Sess.), § 12, eff. March 1, 2022.)
As used in this chapter:
(1) “Board” means the Cannabis Control Board.
(2) “Cannabis” has the same meaning as provided in section 831 of this title.
(3) “Cannabis product” has the same meaning as provided in section 831 of this title.
(4) “Dispensary” means a business organization licensed under this chapter or 18 V.S.A. chapter 86.
(5) “Registry” means the Vermont Medical Cannabis Registry.
(Added 2019, No. 164 (Adj. Sess.), § 12, eff. March 1, 2022.)
(a) A dispensary licensed pursuant to this chapter may:
(1) cultivate, package, label, test, and transport cannabis;
(2) produce, package, label, test, and transport cannabis products;
(3) sell and deliver cannabis and cannabis products to patients and caregivers registered under chapter 35 of this title;
(4) acquire, purchase, or borrow cannabis, cannabis products, and services from another licensed Vermont medical cannabis dispensary or give, sell, or lend cannabis, cannabis products, and services to another licensed Vermont medical cannabis dispensary; and
(5) purchase cannabis and cannabis products from a cannabis establishment licensed pursuant to chapter 33 of this title.
(b)(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.), § 12, eff. March 1, 2022.)
(a)(1) The Board shall adopt rules to implement and administer this chapter. In adoption of rules, the Board shall strive for consistency with rules adopted for cannabis establishments pursuant to chapter 33 of this title where appropriate.
(2) Rules 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 dispensary, 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 975 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) facility inspection requirements and procedures;
(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;
(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) pesticides or classes of pesticides that may be used by cultivators, provided that any rules adopted under this subdivision (2) shall comply with and shall be at least as stringent as the Agency of Agriculture, Food and Markets’ Vermont Pesticide Control Regulations;
(S) standards for indoor cultivation of cannabis;
(T) procedures and standards for testing cannabis for contaminants, potency, and quality assurance and control;
(U) labeling requirements for cannabis sold to retailers and integrated licensees, including health warnings developed in consultation with the Department of Health;
(V) regulation of visits to the establishments, including the number of visitors allowed at any one time and record keeping concerning visitors;
(W) 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 cannabis products that are not consumable, including topical preparations;
(X) 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;
(Y) requirements that a cannabis product is clearly identifiable with a standard symbol adopted by the Board indicating that it contains cannabis;
(Z) procedures and standards for testing cannabis products for contaminants, potency, and quality assurance and control;
(AA) requirements for opaque, child-resistant packaging;
(BB) requirements for verification of a customer’s Registry status;
(CC) restrictions that cannabis shall be stored behind a counter or other barrier to ensure a customer does not have direct access to the cannabis;
(DD) requirements that if the dispensary sells hemp or hemp products, the hemp and hemp products are clearly labeled as such and displayed separately from cannabis and cannabis products;
(EE) requirements for opaque, child-resistant packaging of cannabis and cannabis products at point of sale to customer;
(FF) facility inspection requirements and procedures;
(GG) procedures and standards for testing cannabis and cannabis products for contaminants, potency, and quality assurance and control;
(HH) reporting requirements, including requirements for chain-of-custody record keeping; and
(II) procedures for destruction of all cannabis and cannabis products samples.
(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.), § 12, eff. March 1, 2022; amended 2023, No. 65, § 20, eff. June 14, 2023.)
(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 medical cannabis dispensary 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 a candidate.
(Added 2019, No. 164 (Adj. Sess.), § 12, eff. March 1, 2022.)
(a) Every owner, principal, and employee of a dispensary 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 fingerprint-based Vermont 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 medical cannabis dispensary 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 a candidate.
(c) Once an identification card application has been submitted, a person may serve as an employee of a dispensary 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 dispensary’s license, whichever occurs first.
(Added 2019, No. 164 (Adj. Sess.), § 12, eff. March 1, 2022.)
(a) The Board shall charge and collect the following fees for dispensaries:
(1) a one-time $1,000.00 application fee;
(2) an annual renewal fee of $5,000.00; and
(3) an annual Registry identification or renewal card fee of $50.00 to be paid by the dispensary for each owner, principal, financier, and employee of the dispensary.
(b) Fees shall be deposited in the Cannabis Regulation Fund as provided in section 845 of this title.
(Added 2019, No. 164 (Adj. Sess.), § 12, eff. March 1, 2022; amended 2021, No. 86 (Adj. Sess.), § 9, eff. March 25, 2022; 2023, No. 166 (Adj. Sess.), § 9, eff. June 10, 2024.)
(a) “Advertise” and “advertisement” have the same meaning as in section 861 of this title.
(b) A dispensary advertisement shall not contain any statement or illustration that:
(1) is deceptive, false, or misleading;
(2) promotes overconsumption;
(3) represents that the use of cannabis has curative effects;
(4) offers a prize, award, or inducement for purchasing cannabis or a cannabis product, except that price discounts are allowed;
(5) offers free samples of cannabis or cannabis products;
(6) depicts a person under 21 years of age consuming cannabis or cannabis products; or
(7) is designed to be or has the effect of being particularly appealing to persons under 21 years of age.
(c) Dispensaries shall not advertise their products via any medium unless the licensee can show that not more than 15 percent of the audience is reasonably expected to be under 21 years of age.
(d) All advertisements shall contain health warnings adopted by rule by the Board in consultation with the Department of Health.
(e) All advertisements shall be submitted to the Board on a form or in a format prescribed by the Board, prior to the dissemination of the advertisement. The Board may:
(1) require a specific disclosure be made in the advertisement in a clear and conspicuous manner if the Board determines that the advertisement would be false or misleading without such a disclosure; or
(2) require changes that are necessary to protect the public health, safety, and welfare or consistent with dispensing information for the product under review.
(f) [Repealed.]
(Added 2021, No. 62, § 9, eff. March 1, 2022; amended 2023, No. 166 (Adj. Sess.), § 10, eff. June 10, 2024.)
(a)(1) A dispensary 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 licensee 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 dispensary 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.), § 12, eff. March 1, 2022; amended 2021, No. 105 (Adj. Sess.), § 155, eff. July 1, 2022.)
As used in this chapter:
(1) “Agency” means the Agency of Commerce and Community Development.
(2) “Board” means the Cannabis Control Board.
(Added 2021, No. 62, § 12, eff. June 7, 2021.)
(a) There is established the Cannabis Business Development Fund, which shall be managed in accordance with 32 V.S.A. chapter 7, subchapter 5.
(b) The Fund shall comprise:
(1) a one-time contribution of $50,000.00 per integrated license to be made on or before October 15, 2022; and
(2) monies allocated to the fund by the General Assembly.
(c) The Fund shall be used for the following purposes:
(1) to provide low-interest rate loans and grants to social equity applicants to pay for ordinary and necessary expenses to start and operate a licensed cannabis establishment;
(2) to pay for outreach that may be provided or targeted to attract and support social equity applicants;
(3) to assist with job training and technical assistance for social equity applicants; and
(4) to pay for necessary costs incurred in administering the Fund.
(d) Amounts from loans that are repaid shall provide additional funding through the Fund.
(Added 2021, No. 62, § 12, eff. June 7, 2021.)
The Agency of Commerce and Community Development shall establish a program using funds from the Cannabis Business Development Fund for the purpose of providing financial assistance, loans, grants, and outreach to social equity applicants. The Agency may procure by contract all or part of the necessary underwriting, execution, and administration services required for loans and grants to be made from the Cannabis Business Development Fund to eligible social equity applicants as allowed under this chapter. Should the Agency be unable to do so, the program shall not move forward until the General Assembly appropriates the operational resources necessary for the Agency to make loans and provide financial assistance to social equity applicants.
(Added 2021, No. 62, § 12, eff. June 7, 2021.)
The Cannabis Control Board, in consultation with the Advisory Committee, the Agency of Commerce and Community Development, and the Executive Director of Racial Equity, shall report to the General Assembly on or before January 15, 2023 and biennially thereafter regarding the implementation and application of this chapter, including data on the number of applicants, the number of recipients, the number and amounts of loans and grants, and the identification of continuing barriers to accessing the cannabis market for social equity applicants. This information shall be presented in a manner that can be quantified and tracked over time.
(Added 2021, No. 62, § 12, eff. June 7, 2021.)
As used in this chapter:
(1) “Board” means the Board of Liquor and Lottery.
(2) “Commissioner” means the Commissioner of Liquor and Lottery.
(3) “Tobacco products” means cigarettes, little cigars, roll-your-own tobacco, snuff, cigars, new smokeless tobacco, and other tobacco products as defined in 32 V.S.A. § 7702.
(4) “Vending machine” means any mechanical, electronic, or other similar device that dispenses tobacco products for money.
(5) “Tobacco license” means a license issued by the Division of Liquor Control under this chapter permitting the licensee to engage in the retail sale of tobacco products.
(6) “Bidis” or “Beedies” means a product containing tobacco that is wrapped in temburni leaf (diospyros melanoxylon) or tendu leaf (diospyros exculpra), or any other product that is offered to, or purchased by, consumers as bidis or beedies.
(7) “Tobacco paraphernalia” means any device used, intended for use, or designed for use in smoking, inhaling, ingesting, or otherwise introducing tobacco products into the human body, or for preparing tobacco for smoking, inhaling, ingesting, or otherwise introducing into the human body, including devices for holding tobacco, rolling paper, wraps, cigarette rolling machines, pipes, water pipes, carburetion devices, bongs, and hookahs.
(8) “Tobacco substitute” means products, including electronic cigarettes or other electronic or battery-powered devices, that contain or are designed to deliver nicotine or other substances into the body through the inhalation of vapor and that have not been approved by the U.S. Food and Drug Administration for tobacco cessation or other medical purposes. Cannabis products as defined in section 831 of this title or products that have been approved by the U.S. Food and Drug Administration for tobacco cessation or other medical purposes shall not be considered to be tobacco substitutes.
(Added 1991, No. 70, § 2, eff. May 1, 1992; amended 1999, No. 89 (Adj. Sess.), § 1; 2007, No. 114 (Adj. Sess.), § 3; 2011, No. 166 (Adj. Sess.), § 2; 2013, No. 14, § 1; 2013, No. 135 (Adj. Sess.), § 6; 2017, No. 113 (Adj. Sess.), § 42; 2018, No. 1 (Sp. Sess.), § 82; 2019, No. 14, § 9, eff. April 30, 2019; 2019, No. 28, § 3, eff. May 23, 2019; 2023, No. 65, § 22, eff. June 14, 2023.)
(a)(1) Except as provided in subsection (h) of this section, no person shall engage in the retail sale of tobacco products, tobacco substitutes, or tobacco paraphernalia in the person’s place of business without a tobacco license obtained from the Division of Liquor Control.
(2) No person shall engage in the retail sale of tobacco substitutes without also obtaining a tobacco substitute endorsement from the Division of Liquor Control.
(3) Tobacco licenses and tobacco substitute endorsements shall expire at midnight, April 30, of each year.
(b)(1) The Board shall prepare and issue tobacco license and tobacco substitute endorsement forms and applications. These shall be incorporated into the liquor license forms and applications prepared and issued under this title.
(2) The licenses issued under this section shall be entitled “LIQUOR LICENSE,” “LIQUOR-TOBACCO LICENSE,” or “TOBACCO LICENSE,” as applicable. The endorsements issued under this section shall be entitled “TOBACCO SUBSTITUTE ENDORSEMENT.”
(3) The Board shall also provide simple instructions for licensees, designed to assist them in complying with the provisions of this chapter.
(c) Each tobacco license and tobacco substitute endorsement shall be prominently displayed on the premises identified in the license.
(d)(1) For a license or endorsement required under this section, a person shall apply to the legislative body of the municipality and shall pay the following fees:
(A) to the Division of Liquor Control, the applicable liquor license fee provided in section 204 of this title for a liquor license and a tobacco license;
(B) to the legislative body of the municipality, a fee of $110.00 for a tobacco license or renewal; and
(C) to the legislative body of the municipality, a fee of $50.00 for a tobacco substitute endorsement as provided in subdivision (a)(2) of this section.
(2) The municipal clerk shall forward the application to the Division, and the Division shall issue the tobacco license and the tobacco substitute endorsement, as applicable, and shall forward all fees to the Commissioner for deposit in the Liquor Control Enterprise Fund.
(e) A person who sells tobacco products, tobacco substitutes, or tobacco paraphernalia without obtaining a tobacco license and a tobacco substitute endorsement, as applicable, in violation of this section shall be guilty of a misdemeanor and fined not more than $200.00 for the first offense and not more than $500.00 for each subsequent offense.
(f) No individual under 16 years of age may sell tobacco products, tobacco substitutes, or tobacco paraphernalia.
(g) No person shall engage in the retail sale of tobacco products, tobacco substitutes, substances containing nicotine or otherwise intended for use with a tobacco substitute, or tobacco paraphernalia in the State unless the person is a licensed wholesale dealer as defined in 32 V.S.A. § 7702 or has purchased the tobacco products, tobacco substitutes, substances containing nicotine or otherwise intended for use with a tobacco substitute, or tobacco paraphernalia from a licensed wholesale dealer.
(h) This section shall not apply to a cannabis establishment licensed pursuant to chapter 33 of this title to engage in the retail sale of cannabis products as defined in section 831 of this title but not engaged in the sale of tobacco products or tobacco substitutes.
(Added 1991, No. 70, § 2, eff. May 1, 1992; amended 1997, No. 58, § 2; 2007, No. 114 (Adj. Sess.), § 4; 2013, No. 14, § 2; 2013, No. 72, § 28; 2015, No. 149 (Adj. Sess.), § 40; 2017, No. 83, § 131; 2018, No. 1 (Sp. Sess.), § 83; 2019, No. 22, § 1; 2023, No. 65, § 23b, eff. June 14, 2023.)
(a) An applicant for a tobacco license that does not hold a liquor license issued under this title shall be granted a tobacco license pursuant to section 1002 of this title only after the applicant has attended a Division of Liquor Control in-person seminar or completed the appropriate Division of Liquor Control online training program for the purpose of being informed about the Vermont tobacco laws pertaining to the purchase, storage, and sale of tobacco products. A corporation, partnership, or association shall designate a director, partner, or manager to comply with the requirements of this subsection.
(b) The holder of a tobacco license that does not also hold a liquor license issued pursuant to this title for the same premises shall:
(1) Complete the Division’s in-person or online enforcement seminar at least once every two years. A corporation, partnership, or association shall designate a director, partner, or manager to comply with this subdivision.
(2) Ensure that every employee involved in the sale of tobacco products completes a Division of Liquor Control in-person or online training program or other training programs approved by the Division before the employee begins selling or providing tobacco products and at least once every 24 months thereafter. A licensee may comply with this subdivision by conducting its own training program on its premises using information and materials furnished by the Division of Liquor Control. A licensee that fails to comply with the requirements of this subsection shall be subject to suspension of its tobacco license for not less than one day or a fine of not more than $100.00, or both.
(3) Fees for Division of Liquor Control in-person and online seminars for tobacco only shall be $10.00 per person.
(Added 2001, No. 147 (Adj. Sess.), § 2, eff. June 21, 2002; amended 2015, No. 149 (Adj. Sess.), § 42; 2017, No. 83, § 132; 2018, No. 1 (Sp. Sess.), § 84; 2019, No. 73, § 14.)
(a) A person shall not sell or provide tobacco products, tobacco substitutes, or tobacco paraphernalia to any person under 21 years of age.
(b) All vending machines selling tobacco products are prohibited.
(c)(1) Persons holding a tobacco license may only display or store tobacco products or tobacco substitutes:
(A) behind a sales counter or in any other area of the establishment that is inaccessible to the public; or
(B) in a locked container.
(2) This subsection shall not apply to the following:
(A) a display of tobacco products that is located in a commercial establishment in which by law no person under 21 years of age is permitted to enter at any time;
(B) cigarettes in unopened cartons and smokeless tobacco in unopened multipack containers of 10 or more packages, any of which shall be displayed in plain view and under the control of a responsible employee so that removal of the cartons or multipacks from the display can be readily observed by that employee; or
(C) cigars and pipe tobacco stored in a humidor on the sales counter in plain view and under the control of a responsible employee so that the removal of these products from the humidor can be readily observed by that employee.
(d) The sale and the purchase of bidis is prohibited. A person who holds a tobacco license who sells bidis as prohibited by this subsection shall be fined not more than $500.00. A person who purchases bidis from any source shall be fined not more than $250.00.
(e) No person holding a tobacco license shall sell cigarettes or little cigars individually or in packs that contain fewer than 20 cigarettes or little cigars.
(f) As used in this section, “little cigars” means any rolls of tobacco wrapped in leaf tobacco or any substance containing tobacco, other than any roll of tobacco that is a cigarette within the meaning of 32 V.S.A. § 7702(1), and as to which 1,000 units weigh not more than three pounds.
(Added 1991, No. 70, § 2, eff. May 1, 1992; amended 1997, No. 58, § 3; 1999, No. 89 (Adj. Sess.), § 2; 2001, No. 108 (Adj. Sess.), § 1, eff. May 15, 2002; 2011, No. 166 (Adj. Sess.), § 1; 2013, No. 14, § 3; 2015, No. 108 (Adj. Sess.), § 1, eff. Jan. 1, 2017; 2017, No. 83, § 133; 2019, No. 27, § 2, eff. Sept. 1, 2019.)
(a) A person shall exhibit proper proof of his or her age upon demand of a person licensed under this chapter, an employee of a licensee, or a law enforcement officer. If the person fails to provide proper proof of age, the licensee shall be entitled to refuse to sell tobacco products, tobacco substitutes, or tobacco paraphernalia to the person. The sale or furnishing of tobacco products, tobacco substitutes, or tobacco paraphernalia to a person exhibiting proper proof of age shall be prima facie evidence of a licensee’s compliance with section 1007 of this title.
(b) As used in this section, “proper proof of age” means a valid authorized form of identification as defined in section 589 of this title.
(Added 1991, No. 70, § 2, eff. May 1, 1992; amended 1997, No. 58, § 4; 2013, No. 14, § 4; 2017, No. 83, § 134.)
(a)(1) A person under 21 years of age shall not possess, purchase, or attempt to purchase tobacco products, tobacco substitutes, or tobacco paraphernalia unless:
(A) the person is an employee of a holder of a tobacco license and is in possession of tobacco products, tobacco substitutes, or tobacco paraphernalia to effect a sale in the course of employment; or
(B) the person is in possession of tobacco products or tobacco paraphernalia in connection with Indigenous cultural tobacco practices.
(2) A person under 21 years of age shall not misrepresent his or her age to purchase or attempt to purchase tobacco products, tobacco substitutes, or tobacco paraphernalia.
(b) A person who possesses tobacco products, tobacco substitutes, or tobacco paraphernalia in violation of subsection (a) of this section shall be subject to having the tobacco products, tobacco substitutes, or tobacco paraphernalia immediately confiscated and shall be further subject to a civil penalty of $25.00. An action under this subsection shall be brought in the same manner as a traffic violation pursuant to 23 V.S.A. chapter 24.
(c) A person under 21 years of age who misrepresents the person’s age by presenting false identification to purchase tobacco products, tobacco substitutes, or tobacco paraphernalia shall be subject to a civil penalty of not more than $50.00 or provide up to 10 hours of community service, or both.
(Added 1991, No. 70, § 2, eff. May 1, 1992; amended 1997, No. 58, § 5; 1997, No. 121 (Adj. Sess.), § 26; 2013, No. 14, § 5; 2015, No. 147 (Adj. Sess.), § 10, eff. May 31, 2016; 2017, No. 83, § 135; 2019, No. 27, § 3, eff. Sept. 1, 2019; 2023, No. 46, § 30, eff. June 5, 2023; 2025, No. 64, § 5, eff. June 12, 2025.)
(a) A person licensed under this chapter shall post in a conspicuous place on the premises identified in the tobacco license a warning sign stating that the sale of tobacco products, tobacco substitutes, and tobacco paraphernalia to persons under 21 years of age is prohibited. The Board shall prepare the sign and make it available with the license forms issued under this chapter. The sign may include information about the health effects of tobacco and tobacco cessation services. The Board, in consultation with a representative of the licensees when appropriate, is authorized to change the design of the sign as needed to maintain its effectiveness.
(b) A person violating this section shall be guilty of a misdemeanor and fined not more than $100.00.
(Added 1991, No. 70, § 2, eff. May 1, 1992; amended 2011, No. 166 (Adj. Sess.), § 3; 2017, No. 83, § 136; 2019, No. 27, § 4, eff. Sept. 1, 2019.)
(a) A person that sells or furnishes tobacco products, tobacco substitutes, or tobacco paraphernalia to a person under 21 years of age shall be subject to a civil penalty of not more than $100.00 for the first offense and not more than $500.00 for any subsequent offense. An action under this section shall be brought in the same manner as for a traffic violation pursuant to 23 V.S.A. chapter 24 and shall be brought within 24 hours of the occurrence of the alleged violation.
(b)(1) The Division of Liquor Control shall conduct or contract for compliance tests of tobacco licensees as frequently and as comprehensively as necessary to ensure consistent statewide compliance with the prohibition on sales to persons under 21 years of age of at least 90 percent for buyers who are between 17 and 20 years of age. An individual under 21 years of age participating in a compliance test shall not be in violation of section 1005 of this title.
(2) Any violation by a tobacco licensee of subsection 1003(a) of this title and this section after a sale violation or during a compliance test conducted within six months of a previous violation shall be considered a multiple violation and shall result in the minimum license suspension in addition to any other penalties available under this title. Minimum license suspensions for multiple violations shall be assessed as follows:
(A) two violations two weekdays;
(B) three violations 15-day suspension;
(C) four violations 90-day suspension;
(D) five violations one-year suspension.
(3) The Division shall report to the House Committee on General, Housing, and Military Affairs, the Senate Committee on Economic Development, Housing and General Affairs, and the Tobacco Evaluation and Review Board annually, on or before January 15, the methodology and results of compliance tests conducted during the previous year. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the required report to be made under this subdivision.
(Added 1991, No. 70, § 2; amended 1997, No. 58, § 6; 2013, No. 14, § 6; 2015, No. 131 (Adj. Sess.), § 2; 2017, No. 83, § 137; 2018, No. 1 (Sp. Sess.), § 85; 2019, No. 27, § 5, eff. Sept. 1, 2019; 2019, No. 73, § 16.)
The Board of Liquor and Lottery shall adopt rules for the administration and enforcement of this chapter.
(Added 1991, No. 70, § 2, eff. May 1, 1992; amended 2017, No. 83, § 138; 2018, No. 1 (Sp. Sess.), § 86.)
(a) Any cigarettes or other tobacco products that have been sold, offered for sale, or possessed for sale in violation of section 1003 of this title, 20 V.S.A. § 2757, 32 V.S.A. § 7786, or 33 V.S.A. § 1919, and any commercial cigarette rolling machines possessed or utilized in violation of section 1011 of this title, shall be deemed contraband and shall be subject to seizure by the Commissioner, the Commissioner’s agents or employees, the Commissioner of Taxes or any agent or employee of the Commissioner of Taxes, or by any law enforcement officer of this State when directed to do so by the Commissioner. All cigarettes or other tobacco products seized shall be destroyed.
(b)(1) Any person in possession of property considered contraband under this section shall be fined not more than $1,000.00 nor less than $500.00.
(2) Any vehicle, aircraft or watercraft, or other conveyance in which property considered contraband under this section is found may be seized and subject to forfeiture and condemnation pursuant to sections 570 and 572-574 of this title.
(Added 2003, No. 14, § 6; amended 2005, No. 68, § 2; 2011, No. 166 (Adj. Sess.), § 7; 2017, No. 83, § 139; 2019, No. 73, § 17.)
(a) As used in this section:
(1) “Cigarette” has the same meaning as in 32 V.S.A. § 7702(1).
(2) [Repealed.]
(3) “Licensed wholesale dealer” has the same meaning as in 32 V.S.A. § 7702(5).
(4) “Little cigars” has the same meaning as in 32 V.S.A. § 7702(6).
(5) “Retail dealer” has the same meaning as in 32 V.S.A. § 7702(10).
(6) “Roll-your-own tobacco” has the same meaning as in 32 V.S.A. § 7702(11).
(7) “Snuff” has the same meaning as in 32 V.S.A. § 7702(13).
(b) No person shall cause cigarettes, roll-your-own tobacco, little cigars, snuff, tobacco substitutes, substances containing nicotine or otherwise intended for use with a tobacco substitute, or tobacco paraphernalia, ordered or purchased by mail or through a computer network, telephonic network, or other electronic network, to be shipped to anyone other than a licensed wholesale dealer or retail dealer in this State.
(c) No person shall, with knowledge or reason to know of the violation, provide substantial assistance to a person in violation of this section.
(d) A violation of this section is punishable as follows:
(1) A knowing or intentional violation of this section shall be punishable by imprisonment for not more than five years or a fine of not more than $5,000.00, or both.
(2) In addition to or in lieu of any other civil or criminal remedy provided by law, upon a determination that a person has violated this section, the Attorney General may impose a civil penalty in an amount not to exceed $5,000.00 for each violation. For purposes of this subsection, each shipment or transport of cigarettes, roll-your-own tobacco, little cigars, or snuff shall constitute a separate violation.
(3) The Attorney General may seek an injunction to restrain a threatened or actual violation of this section.
(4) In any action brought pursuant to this section, the State shall be entitled to recover the costs of investigation, of expert witness fees, and of the action, and reasonable attorney’s fees.
(5) A person who violates this section engages in an unfair and deceptive trade practice in violation of the State’s Consumer Protection Act, 9 V.S.A. §§ 2451 et seq.
(6) If a court determines that a person has violated the provisions of this section, the court shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged and paid to the State Treasurer for deposit in the General Fund.
(7) Unless otherwise expressly provided, the penalties or remedies, or both, under this section are in addition to any other penalties and remedies available under any other law of this State.
(Added 2007, No. 119 (Adj. Sess.), § 1; amended 2011, No. 109 (Adj. Sess.), § 3, eff. May 8, 2012; 2011, No. 136 (Adj. Sess.), § 1b; 2013, No. 14, § 7; 2017, No. 83, § 140; 2019, No. 22, § 2.)
(a) A person shall not possess or use a cigarette rolling machine for commercial purposes.
(b) A person who knowingly violates subsection (a) of this section shall be subject to the following civil penalties:
(1) The revocation or termination of any license, permit, appointment, or commission under this chapter.
(2) A civil penalty of up to $50,000.00 in any action brought by the Department of Taxes, the Division of Liquor Control, or the Attorney General.
(c) Penalties assessed under subsection (b) of this section shall be paid into the General Fund.
(d) A person who violates subsection (a) of this section shall be imprisoned for not more than three years or fined not more than $100,000.00, or both.
(e) This section shall not apply to the possession of a cigarette rolling machine intended solely for personal use by individuals who do not intend to offer the resulting product for resale.
(f) A cigarette rolling machine capable of rolling 200 cigarettes in fewer than 15 minutes shall be presumed to be for commercial purposes.
(Added 2011, No. 166 (Adj. Sess.), § 6; amended 2017, No. 83, § 141; 2018, No. 1 (Sp. Sess.), § 87.)
(a) Unless specifically preempted by federal law, no person shall manufacture, regardless of location, for sale in; offer for sale in; sell in or into the stream of commerce in; or otherwise introduce into the stream of commerce in Vermont:
(1) any liquid or gel substance containing nicotine unless that product is contained in child-resistant packaging; or
(2) any nicotine liquid container unless that container constitutes child-resistant packaging.
(b) As used in this section:
(1) “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.
(2) “Nicotine liquid container” means a bottle or other container of a nicotine liquid or other substance containing nicotine that is sold, marketed, or intended for use in a tobacco substitute. The term does not include a container containing nicotine in a cartridge that is sold, marketed, or intended for use in a tobacco substitute if the cartridge is prefilled and sealed by the manufacturer and not intended to be opened by the consumer.
(Added 2013, No. 135 (Adj. Sess.), § 8, eff. Jan. 1, 2015; amended 2017, No. 83, § 142.)
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