Vermont H 806: An act relating to cable television programming packages

Bill Text

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VT LEG #385701 v.2
H.806 1
Introduced by Representative McGill of Bridport 2
Referred to Committee on 3
Date: 4
Subject: Alcoholic beverages, cannabis, and tobacco; cannabis; cannabis 5
establishments; general provisions; advertising 6
Statement of purpose of bill as introduced: This bill proposes to revise 7
restrictions on advertising by licensed cannabis establishments. 8
An act relating to cannabis advertising 9
It is hereby enacted by the General Assembly of the State of Vermont: 10
Sec. 1. FINDINGS AND INTENT 11
(a) The First Amendment to the U.S. Constitution and Chapter I, Article 13 12
of the Vermont Constitution guarantee the fundamental right to freedom of 13
speech, which includes the right to commercial speech. 14
(b) The U.S. Supreme Court established a four-part test for determining 15
whether restrictions on commercial speech are permissible: “(1) whether the 16
speech at issue concerns lawful activity and is not misleading and (2) whether 17
the asserted governmental interest is substantial; and, if so, (3) whether the 18
regulation directly advances the governmental interest asserted and (4) whether 19

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it is not more extensive than is necessary to serve that interest.” Greater New 1
Orleans Broadcasting Ass’n., Inc. v. United States, 527 U.S. 173 (1999). 2
(c) Vermont’s existing restrictions on advertising by licensed cannabis 3
establishments require administrative agency preapproval of all verbal and 4
written communications to customers, including social media posts and direct 5
email marketing; operate as a de facto statewide ban on outdoor advertising in 6
any place accessible by the general public; and restrict the advertisement of 7
noncannabis goods by licensed cannabis establishments, which are not 8
applicable to other lawful sellers of those goods. 9
(d) The State of Vermont has a substantial interest in promoting a vibrant 10
regulated adult-use cannabis market in which licensed cannabis establishments 11
are able to displace unregulated sellers of cannabis after more than 80 years of 12
failed prohibition policies rejected by the State in 2019 Acts and Resolves No. 13
64. 14
(e) Accordingly, it is the intent of the General Assembly to amend Title 7 15
to impose constitutionally permissible restrictions on false or misleading 16
advertising by licensed cannabis establishments and on advertising that is 17
designed to be or has the effect of being particularly appealing to minors, 18
without infringing upon the fundamental speech rights that are protected by 19
both the U.S. and the Vermont Constitutions. 20

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Sec. 2. 7 V.S.A. § 861 is amended to read: 1
§ 861. DEFINITIONS 2
As used in this chapter: 3
* * * 4
(2) “Advertisement” means any broadly disseminated written or verbal 5
statement, illustration, or depiction concerning cannabis or cannabis products 6
that would reasonably have the effect of inducing sales of cannabis or cannabis 7
products, including any written, printed, graphic, or other material; billboard, 8
sign, or other outdoor display; other periodical literature, publication, or in a 9
radio or television broadcast; the internet; or in any other media. The term 10
does not include: 11
* * * 12
(B) any editorial or other reading material, such as a news release, in 13
any periodical or publication or newspaper for the publication of which no 14
money or valuable consideration is paid or promised, directly or indirectly, by 15
any cannabis establishment, and that is not written by or at the direction of the 16
licensee; 17
(C) any educational, instructional, or otherwise noncommercial 18
material that is not intended to induce sales and that does not propose an 19
economic transaction, but that merely provides information to the public in an 20
unbiased manner; or 21

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(D) a sign attached to the premises of a cannabis establishment that 1
merely identifies the name, location, or operating hours of the cannabis 2
establishment, and which may include the cannabis establishment’s logo, the 3
nature of the establishment’s business, and directions to the establishment, but 4
which does not contain overtly promotional messaging; 5
(E) any official business directional sign placed by the Agency of 6
Transportation; or 7
(F) any statement, illustration, or depiction promoting noncannabis 8
products sold by a cannabis establishment. 9
* * * 10
Sec. 3. 7 V.S.A. § 864 is amended to read: 11
§ 864. ADVERTISING 12
* * * 13
(b) A cannabis establishment advertisement shall not contain any statement 14
or illustration that: 15
* * * 16
(3) represents that the use of cannabis has curative effects treats or cures 17
a disease; 18
* * * 19
(5) offers free samples of cannabis or cannabis products; [Repealed.] 20
* * * 21

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