Vermont Legislature SmartTranscripts:

[Speaker Jill Krowinski]: Will the house please come to order and members kindly take their seats? Will the house please come to order? Good afternoon. Members, the first, and maybe only, we'll see, bills up in this block of our house session. We will start with senate bill two seventy eight which is an act relating to cannabis. Followed by house bill nine fifteen which is an act relating to an extended producer responsibility program for beverage containers. Followed by house bill nine twenty eight and act relating to technical corrections to fish and wildlife statutes. We'll then see if we have any other business before recessing for a bit. So with that, it's Senate Bill two seventy eight, House Bill nine fifteen and House Bill nine twenty eight. So members, we will now take up Senate Bill two seventy eight which is an act relating to cannabis. The bill was referred to the committee on government operations and military affairs which recommends that the house propose to the senate to amend the bill as printed in today's calendar. Member from Cambridge representative Boyden will speak for the committee and then affecting the revenue of the state, the bill was referred to the committee on ways and means which recommends that the bill ought to pass in concurrence with the proposal of amendment recommended by the committee on government operations and military affairs. The member from Barrie City, representative was a zak will speak for that committee. And then carrying an appropriation, the bill was referred to the committee on appropriations which also recommends that the bill ought to pass in concurrence with the proposal of amendment recommended by the committee on government operations and military affairs. The member from Bennington, representative Nigrovich will speak for that committee. Please listen to the second reading of the bill.

[House Clerk (Reading Clerk)]: S two seventy eight, an act relating to cannabis.

[Speaker Jill Krowinski]: Member from Cambridge.

[Representative Lucy Boyden]: Madam speaker, s two seventy eight relates to cannabis and includes broad updates intended to stabilize and refine the legal cannabis market. On a favorable vote of nine two zero, the House Committee on Government Operations and Military Affairs respectfully proposes a strike all to the bill and ask for your support. I'll walk through the sections of the bill as proposed. It can be found on page three eight three one of today's house calendar. Section one amends seven b s a eight eight one to increase the per package limit from one hundred milligrams up to two hundred milligrams of THC. Section two amends seven b s a nine zero seven to increase the amount a retailer can sell to an individual in a single transaction from one ounce to two ounces of THC cannabis product. Sections three and four amend 18 BSA four two three zero and four two three zero a relating to possession of cannabis to conform with section two. Section five establishes the pilot event, the pilot program for event permits. The cannabis control board is authorized to issue not more than 10 event permits per year, five for events open to the public, and five for privately held events. The holder of a permit must currently hold a license issued by the CCB, be in good standing, and continue to comply with underlying license requirements. Comply with all procedures adopted by the CCB governing the event permit, pay a $500 fee for the permit, and meet all eligibility requirements including approval from the local control commissioners or the legislative body of the municipality where the event will be held, an approved security plan, an approved product sale plan that describes quantities and types of the cannabis and how the cannabis will be transported, monitored, secured, displayed, and sold in conformity with state law. Confirmation that the applicant has secured the services of county law enforcement or private security, proof of insurance, and demonstration that the licensee can comply with health and safety requirements. An event permit may only be issued for one event at a single location and not to exceed twenty four hours and shall not be issued for a location where alcoholic beverages are sold for on consumption on premises consumption. Cannabis retailers are prohibited from simultaneously selling cannabis from the licensee's location and a permitted event location unless the property is contiguous. The CCB is granted authority to adopt procedures, including the selection process, security requirements, and event site restrictions. These procedures will have the force of law and will be binding on permit holders. Section six has been deleted. Sections seven, eight, and nine amend various sections of title 32 to ensure that sales at license events will be taxed and audited in the same manner as sales at a retail establishment. Section 10 directs the CCB to initiate rulemaking on or before 07/01/2027 regarding the event permit pilot program. The CCB is also directed to submit a report on the pilot event permit program assessing the benefits, challenges, administrative viability, and recommendations to the committees of jurisdiction on or before 11/15/2027. Section 10 a amends a cannabis establishment fee schedule, specifically the animal licensing fees for outdoor cultivators are decreased by half. Note, this section will only take effect on 01/01/2027 if an appropriation or transfer of a minimum of $105,000 to the cannabis regulation fund is made on or before that date for the purpose of replacing the reduction in fee revenue. Section 11 makes amendments to municipal authority to allow voters to petition for an opt in vote to permit cannabis establishments within their municipality. Includes tier one manufacturers in the exemption to regulation of public nuisance ordinances and clarifies existing statute that municipalities are prohibited from adopting ordinances or bylaws that completely prohibit cannabis establishments. Section 12 shifts the payment schedule for municipal share of fees from quarterly to annually. Section 13 adjust cannabis establishment employee licensing from annual to biannual and allows the CCB to issue longer product registrations prorated at the same cost per year for products it deems low risk and shelf stable. An example of this would be topicals. The CCB expressed leaving the vast majority of products products for ingestion and inhalation on a one year schedule. Sections 14 through 22 repeal references to the integrated license. When legalizing the adult use market, the integrated license was created for the three existing medical dispensaries because they already handled growing processing and retail under one business. All three of these licenses have been dissolved, so the license itself is being phased out. Section 23 has been deleted. Sections 24 through 26 are tax related and will be covered in the ways and means report. Section 27 adds seven VSA nine zero four c to allow cannabis cultivators to form cooperative corporations in the same manner as agricultural or handcraft products cooperatives. Sections 27 a and 27 b create the cannabis the excuse me. The commercial cannabis compact. The intent is prepare is to prepare Vermont for the possibility of a regional or interstate cannabis market by authorizing the governor to form agreements with other states that have commercial cannabis markets. This is in response to statements and actions at the federal level indicating a shift in federal posture on regulated cannabis markets. Parameters under which the governor is authorized to enter into a commercial cannabis compact agreement with other states include requiring that a contracting state licensee obtain a Vermont license to engage in commercial cannabis activities in Vermont. Additionally, a contracting state must impose requirements and restrictions on its licensees that meet or exceed Vermont's requirements and restrictions, excuse me, enforceable public health and safety standards, quality assurance and inspection, advertising, marketing, and labeling or sale within its state. Prior to, executing an agreement, the governor shall submit submit it to the CCB and JFC for review and comment, consider the recommendations, and if applicable, provide in writing the reasons for not incorporating the recommendations. The proposed agreement will be posted for public comment for thirty days, which the governor shall also consider. This section shall not take effect unless an adjustment in federal law is made relating to interstate transfer of cannabis. The US Department of Justice issues an opinion or memorandum allowing or tolerating the interstate transfer of cannabis, or Vermont's attorney general issues a written opinion that entering into a commercial cannabis compact will not result in significant legal risk. The CCB may also adopt, emergency rules governing the admission of contracting state licensees and shall report any necessary updates to state law. Section 28 has been deleted. Section 29 includes three sets of repeals. The integrated licenses, which I mentioned earlier, will be repealed effective 07/01/2026. Seven v n c eight six two, which specifies that the chapter does not apply to therapeutic use of cannabis or hemp. This has been deemed obsolete and in conflict with existing statute, which gives us CCB authority to regulate synthetic cannabinoids and hemp derived cannabinoids. The repeal is effective 07/01/2026. And the cannabis event pilot program yeah. Repeal effective 07/01/2028. Section 30 adds nine BSA four four six eight b to prohibit rental agreements from containing restrictions on the possession and use of cannabis. A rental agreement may prohibit the use of lighted cannabis or cannabis products intended for inhalation within the rental premises. This section does not apply to rental agreements required by federal law to prohibit the possession or use of cannabis within the rental premises. Section 31 relates to section 30 and applies, conforming language. Section 32 is the effective date. Section 32 takes effect on passage. Section 44 24, excuse me, takes effective retroactively on 07/01/2025. Section 10 a relating to reducing annual licensing fees for outdoor cultivators takes effect on 07/01/2027 with that contingency language of the appropriation. Section 13 relating to adjusting employee licenses to biannual takes effect on 07/01/2027, and all other sections take effect on 07/01/2026. The committee heard testimony from legislative council, office of legislative council, sponsor of the bill and reporter, senate economic development, housing and general affairs committee, senate senior economic development, specialist, agency of commerce and community development, director of recruitment and international trade, agency of commerce and community development, Wyndham County sheriff and past president Vermont Sheriff's Association, commissioner, department of health, interim deputy commissioner, department of health, clinical services manager and state opioid treatment authority, Department of Health, policy and communications consultant, Vermont Medical Society, director of planning, Southwestern Vermont Medical Society Center. Excuse me. Director of program development, land access opportunity board, director of advocacy and community engagement, land access opportunity board, executive director and cofounder, Vermont Growers Association, chair, commissioner, and general counsel of the cannabis control board, director of Vermont Cannabis Action Fund, owner of the Tea House Dispensary, executive director, Green Mountain Zotiva, co owner Vermont excuse me, co owner Mountain Girl Cannabis, chief executive officer, Sunset Lake Cannabis, Full Circle Farm, Julia Hills Farm, Prevention Coordinator, Mount Anthony Union High School and Middle School, student assistance provider, Hartford Middle School, executive director, Vermont chapter of National Organization for the Reform of Marijuana Laws, policy director, Parabolia Center for Law and Policy, coalition director Burlington Partnership for a Healthy Community, founder and president, Rock Fern Scientific Consulting. Again, the bill passed out a committee on a vote of nine two zero. Your committee on government operations and military affairs respectfully request your support.

[Speaker Jill Krowinski]: And now for the committee on ways and means, member from Barrie City.

[Representative Edward "Teddy" Waszazak]: Madam speaker, s two seventy eight was referred to your committee on ways and means, which reports the bill favorably. Our report can be found on page thirty eight forty nine of today's calendar, and the fiscal note is available on our website. And I'll just quickly go through and touch on those sections of the bill which affect the revenue of the state. Section five is the section about events permits, which would generate a maximum of $5,000 annually for two years, which would be split between the general fund and the host municipality of the event. Section 10 a refers to the reduction in outdoor cultivator fees. The contingency that the member spoke about was removed in a later amendment, which will result in a $103,000 reduction in revenue, for the cannabis fund. Section 13, changes those licensure fees from a $50 annual to a $100 biannual. So there's no change in the amount of revenue collected. It just affects the timing of those collections. As the member stated sections 24 through 26 concern tax treatment. Section 24 is language, that was requested by the Department of Tax, which makes it so that the same deductions, the business deductions which count towards personal and corporate taxes also count towards the calculation of the property tax credit. Section 25 cleans up language, for outdoor for outdoor cultivators in regards to their eligibility for the current news program and the related tax exemptions. Important to note that there's no real change in practice from current law. This is mostly cleanup language. And section 26 allows, the Department of Taxes to talk to the cannabis control board to ensure proper payment of excise taxes and any related exemptions. Your committee on ways and means heard from a senior fiscal analyst with the joint fiscal office, two members of legislative council, office of legislative council, the chair of the cannabis control board, and the deputy commissioner from the Department of Taxes, and on a vote of nine one one of reports the bill favorably and ask for the body's support.

[Speaker Jill Krowinski]: And now for the committee and appropriations, member from Bennington.

[Representative Michael Nigro]: Madam speaker, most of the impact of fiscal impacts of this amendment are minimal or hard to predict. For instance, JFO does not predict the impact of changes to fines or penalties. Of most note, section 10 a would reduce fees for outdoor cultivators. However, this section is contingent on a $105,000,000 appropriation. That appropriation has not been included in the budget. So that will not move forward. House appropriations voted favorably by a vote of seven four zero and we

[Representative Matthew Birong]: ask for your support.

[Speaker Jill Krowinski]: And now the member from Virgins, representative Birong offers an amendment to the report of the committee on government operations and military affairs that is printed in today's calendar, member from.

[Representative Matthew Birong]: Madam speaker, I'll be offering a proposal of amendment in four instances. First instance of amendment be striking section one seven VSA eight eighty one as the member from Cambridge referenced in her report. Section one would move packaging per milligram for edibles up to two hundred milligrams. By striking this section, it reverts back to current law to one hundred milligrams, so nothing would change. The second instance of amendment is striking section eleven seven v s a eight six three in its entirety and inserting reverting back to regulation of local government. So we're striking out that entire section, reverting back to current law and practice in and around how municipalities opt in and choose whether or not to host establishments. This is also the section where we are now removing the integrated licenses language. That is a continuation of what was referenced by the member from Cambridge. The third instance of amendment is in section 12 a seven VSA eight four seven. This is for the cannabis control board in and around administration administrative enforcement penalties. The board may enforce a final administrative penalty by filing a civil collection action in any superior court. They do not have that ability now, so this provides them with that enforcement capacity. And finally, the fourth instance of amendment is in section 32. This is in reference to the cannabis fee reduction schedule. It removes the monetary contingency, which was referenced by the member from appropriations. This does not go into effect until 07/01/2027, so it provides an opportunity for the body to address the $130,000 shortfall with the license fee reduction in outdoor cultivators. And those are the instances of amendment, and I ask for the body support.

[Speaker Jill Krowinski]: And now member from Cambridge.

[Representative Lucy Boyden]: Madam speaker, the committee on government operations and military affairs found the amendment favorable on a vote of ten zero one and asked for your support.

[Speaker Jill Krowinski]: So the question is, shall the report of the committee on government operations and military affairs be amended as offered by the member from Virgins? Are you ready for the question? Member from Low.

[Representative Patricia McCoy]: Madam speaker, my hearing isn't very good. I forgot my hearing aids today. But I'm pretty sure the member from appropriations had talked about $105,000,000. I believe it's a 105,000, and I just wanna be corrected before the this amendment goes forward.

[Speaker Jill Krowinski]: The member from Virgin's is interrogated.

[Representative Matthew Birong]: Madam speaker, the sum that is being referenced is a $105,000.

[Representative Patricia McCoy]: Thank you, madam speaker.

[Speaker Jill Krowinski]: The question is, shall the report of the committee on government operations and military affairs be amended as offered by the member from Virgin's. Are you ready for the question? If so, all those in favor, please say aye. Aye. All those opposed, please say nay. The ayes appear to have it. The ayes do have it and you have amended the report of the committee on government operations and military affairs. Now the member from South Burlington, representative Nugent offers an amendment to the report of the committee on government operations and military affairs that is printed in today's calendar. Member from South Burlington.

[Representative Kate Nugent]: Madam speaker, this amendment amends section five seven VSA subsection nine twelve and makes clear that a cannabis event can only be permitted at a location within a municipality that has already voted affirmatively to permit the operation of Canada's retail establishments. I thank the committee for hearing this proposal and ask for the body support.

[Speaker Jill Krowinski]: And member from Cambridge.

[Representative Lucy Boyden]: Madam speaker, the committee found the amendment favorable eleven zero zero and asked for your support.

[Speaker Jill Krowinski]: So the question is, shall the report of the committee on government operations and military affairs be amended as offered by the member from South Burlington. Are you ready for the question? Member from Fair Fairhinton.

[Representative Michael "Mike" Tagliavia]: Clarification, please. Did you say unfavorable?

[Speaker Jill Krowinski]: The I will take that as a point of inquiry. Member from Cambridge.

[Representative Lucy Boyden]: The committee found the amendment favorable, eleven zero zero.

[Speaker Jill Krowinski]: So the question is, shall the report of the committee on government operations and military affairs be amended as offered by the member from South Burlington? Are you ready for the question? If so, all those in favor please say aye. Aye. All those opposed please say nay. The ayes appear to have it. The ayes do have it and you have amended the report of the committee on government operations and military affairs. Now the member from Corcoran, representative Taglevia and the member from Cambridge representative Boyden offer an amendment to the report of the committee on government operations and military affairs that is printed in today's calendar. Member from Corcoran.

[Representative Michael "Mike" Tagliavia]: Thank you madam speaker. My amendment or our amendment can be found on page three eight five one of today's calendar. Little background before I read my amendment. My original amendment didn't look like this. I was very concerned about public consumption and consumption at even private events. So I proposed an amendment, presented it to the committee, and we had a good question and answer back and forth. And at the end, I was given a proposal for an amendment to my amendment, which I liked and I had printed up and I sat on over the weekend. And beginning of this week, I went and sat before the committee and we had a little bit more back and forth and was given another proposition for another amendment to my amendment. So the amendment that you have before you is the evolution of the back and forth in the Committee for Government Operations and Military Affairs, and I want to thank the committee for their willingness to work with me on my amendment. I want to point out there are a couple of major concerns that I had, liability being one, public safety being another, and public health as well, mostly with consumption. I was concerned that the science would be able to catch up with some of the laws that we are passing with respect to cannabis and the use of cannabis. I want to make sure that the science is able to tell us how it is affecting us, especially our young people, and by young people I mean people in their 20s, because being in my 60s, that's young now. So I'd like to read, there are six instances of amendment if you'll like to follow along with me. The first in section five, seven VSA, subsection nine twelve, by striking out subsection A in its entirety and inserting in lieu thereof a new subsection A to read as follows, authorization. The board may grant event permits to licensed cannabis retail establishments in good standing. The holder of an event permit is authorized to oversee and administer a commercial event pursuant to this section and procedures adopted by the board. No cannabis or cannabis products shall be consumed at an event authorized by this section. The second instance of amendment in section five, seven VSA subsection nine twelve in subsection B, in the first sentence after a licensed cannabis by inserting the word retail. So basically only licensed retail cannabis purveyors will be able to sell at these events. In third instance, in section 5.7 VSA subsection 9.12, by striking out subdivision B6 in its entirety and inserting in lieu thereof a new subsection B6 to read as follows. Sub six, with any other health and safety requirements that the board may prescribe for the particular event or event location, including limits on attendees. In the fourth instance, in section 5.7 VSA, subsection 9.12, in subsection C by striking out the first sentence in its entirety and inserting in lieu thereof a new sentence to read, annually, the board shall issue not more than 10 permits for public events. Fifth instance is in section five seven VSA sub excuse me, subsection nine twelve in subsection e after the first usage of the word cannabis by inserting the word retail. And last, the sixth in section five seven VSA subsection nine twelve in subsection f by striking out the second sentence in its entirety. So again, I'd like to thank the committee because in the beginning, there were public and private events. Now they are only public. Now it is no consumption, only retail. And and with the other amendments, they will only be in municipalities that have already elected to have cannabis retailers in their municipalities. My hope is there will be compliance with no consumption and that the municipalities, if they do find violations, will in the future not allow any of the retailers who weren't efficient at maintaining the regulations that they are not given any permits. And I ask for the body's support. Thank you.

[Speaker Jill Krowinski]: Member from Cambridge.

[Representative Lucy Boyden]: Madam speaker, the committee thanks the member for the amendment and the collaboration. This change to section five would align the proposed language to be more closely to existing statue in Maine and New York. The committee found the amendment favorable on a straw poll of ten one zero and asked for your support.

[Speaker Jill Krowinski]: So the question is, shall the report of the committee on government operations and military affairs be amended as offered by the member from Corcoran and the member from Cambridge. Are you ready for the question? If so, all those in favor please say aye. All those opposed please say nay. The ayes appear to have it. The ayes do have it and you have amended the report of the committee on government operations and military affairs. Now the question is shall the house propose to the senate to amend the bill as recommended by the committee on government operations and military affairs as amended. Are you ready for the question? Member from Ferrisburg.

[Representative Chea Waters Evans]: Thank you, madam speaker. I'm concerned about the the health effects of promoting cannabis use. We all recognize the mental health challenges that we're already facing in our state, and studies are showing very strong correlation between cannabis use and mental health issues. I'll just list some studies here that I've come across. January 2018 paper in American Journal of Psychiatry showed people who used cannabis in 2001 were almost three times as likely to use opiates just three years later, even after adjusting for other potential risks. Another study, a large federal study here called the National Survey of Drug Use and Health has, shown that even though legalization has not led to a huge increase in people using the drug casually, but it did find that the number of Americans who are using cannabis heavily is soaring. From 2006 to 2017, eleven year period, the number of people who use cannabis daily has nearly tripled to eight million people approaching the number who drink alcohol every day. In 2012, a paper in the Journal of Interpersonal Violence examined a federal survey of more than 9,000 adolescents and found that marijuana use was associated with a doubling of domestic violence. Last one I'll mention here, in 2017, a paper in the Social Psychiatry and Psychiatric Epidemiology Journal examined drivers of violence among 6,000 men and found that drug use, primarily cannabis, translated into a five fold increase in violence. If we take a look a little closer here to home, we find that these trends are happening right here in Vermont. The data from the Vermont Department of Health, including the Vermont Behavioral Risk Factor Surveillance System, shows stark differences in mental health and psychological health, as well as physical health outcomes between cannabis users and non users. So I'll just list some of the results here. Recent regular cannabis users in Vermont are more than twice as likely to report their mental health as not good 14 or more times in a thirty day period compared to non users. Adults diagnosed with depressive disorder are 1.6 times more likely to be past month cannabis users than those without a diagnosis. According to testimony from the Vermont Department of Health on this very bill, individuals using high potency cannabis face three times increase in likelihood of developing a psychotic disorder like schizophrenia compared to non users. And lastly, for individuals who use high potency cannabis on a daily basis, the risk of developing psychosis jumps five times the rate of non users. So for these reasons, madam speaker, I just can't support this bill that increases the quantity that a person is allowed to possess or promotes cannabis usage in public events. We need to protect our citizens and especially our youth. And we're already starting to see the consequences of this and we should not promote it any further. I will be voting no on this bill and encourage members to do likewise. Thank you.

[Speaker Jill Krowinski]: The question is, shall the house propose to the senate to amend the bill as recommended by the committee on government operations and military affairs as amended? Are you ready for the question? If so, all those in favor, please say aye. Aye. All those opposed, please say nay. Aye. The ayes appear to have it. The ayes do have it, and you have proposed to the senate to amend the bill. Now the question is shall the bill be read a third time? Are you ready for that question? If so, all those in favor, please say aye. Aye. All those opposed, please say nay. Aye. The ayes appear to have it. The ayes do have it. And third reading is ordered. Member from Pulte, can you please offer us a motion to suspend rules to place senate bill two seventy eight in all remaining stages of passage?

[Representative Patricia McCoy]: Madam speaker, I make a motion to suspend rules in order to place s two seventy eight in all remaining stages of passage.

[Speaker Jill Krowinski]: The member from Pultely moves that we suspend our rules to place senate bill two seventy eight in all remaining stages passage. Are you ready for the question? If so, all those in favor, please say aye. Aye. All those opposed, please say nay. Aye. The ayes appear to have it. The ayes do have it and you have suspended rules to place senate bill two seventy eight in all remaining stages of passage. Please listen to the third reading of the bill.

[House Clerk (Reading Clerk)]: S two seventy eight, an act relating to cannabis.

[Speaker Jill Krowinski]: So the question is, shall the bill pass in concurrence with proposal of amendment? Are you ready for the question? If so, all those in favor, please say aye. Aye. All those opposed, please say nay. Aye. The ayes appear to have it. The ayes do have it and you have passed the bill in concurrence with proposal of amendment. Member from Pulte, can you please offer us a motion to suspend our rules to message our action on senate bill two seventy eight to the senate forthwith?

[Representative Patricia McCoy]: Madam speaker, I make a motion to suspend rules in order to message our actions on s two seventy eight to the senate forthwith.

[Speaker Jill Krowinski]: The member from Pulte moves that we suspend our rules, message our action on senate bill two seventy eight to the senate forthwith. Are you ready for the question? If oh, member from Swan.

[Unidentified Representative (likely from Swanton)]: Madam speaker, I'm a little late to the game on this, but in senate or in house transportation, I just feel the need to let everybody know, for testimony that we heard that perhaps doesn't get heard everywhere. Fatality crashes last year in Vermont alone, sixty one. Twenty two of which are draw are fatalities under the influence of drugs. Only eleven ten. I'm sorry. Only ten under the influence of alcohol. Driving under the influence of drugs is on a major upward trend in terms of the fatalities related on our roadways. They're they were not even in the top ten ten years ago. They're now in the top four. The evidence shows that last year, they were in the top two. They're likely to be the top one by next year. I would still vote yes, but I wanna make sure that we understand there's consequences for all of these kind of things and that driving under the influence of drugs is two and a half times more likely to be fatal in a fatal crash than having been under the influence of alcohol in the last year and a half to two years of data. Thank you.

[Speaker Jill Krowinski]: The question is, shall we suspend our rules to message our action on senate bill two seventy eight to the senate forthwith? Are you ready for the question? If so, all those in favor, please say aye. Aye. All those opposed, please say nay. Aye. The ayes appear to have it. The ayes do have it. And you have suspended our rules to message our action on senate bill two seventy eight to the senate forthwith. Members at this time, we are going to take a brief recess. It's my understanding that the committee, ways and means needs to take a quick cuddle in the well of the house for a straw poll. So the house will stand in recess until the fall of the gavel at approximately 01:05.