Vermont S 320: An act relating to cannabis advertising

Bill Text

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S.320 1
Introduced by Senator Vyhovsky 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 amend the 7
statutes governing cannabis establishment advertisements to define 8
“advertisements” as broadly disseminated statements or depictions concerning 9
cannabis that would reasonably have the effect of inducing sales; amend the 10
list of materials that are excluded from the definition of “advertisement”; 11
amend the prohibition of certain types of cannabis advertisements; and narrow 12
the cannabis advertising restrictions to apply solely to paid advertisements in 13
third-party media. 14
An act relating to cannabis advertising 15
It is hereby enacted by the General Assembly of the State of Vermont: 16
Sec. 1. FINDINGS AND INTENT 17
(a) The First Amendment to the U.S. Constitution and Chapter I, Article 13 18
of the Vermont Constitution guarantee the fundamental right to freedom of 19
speech, which includes the right to commercial speech. 20

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(b) The U.S. Supreme Court established a four-part test for determining 1
whether restrictions on commercial speech are permissible: “(1) whether the 2
speech at issue concerns lawful activity and is not misleading and (2) whether 3
the asserted governmental interest is substantial; and, if so, (3) whether the 4
regulation directly advances the governmental interest asserted and (4) whether 5
it is not more extensive than is necessary to serve that interest.” Greater New 6
Orleans Broadcasting Ass’n., Inc. v. United States, 527 U.S. 173 (1999) 7
(c) Vermont’s existing restrictions on advertising by licensed cannabis 8
establishments require administrative agency preapproval of all verbal and 9
written communications to customers, including social media posts and direct 10
email marketing; operate as a de facto statewide ban on outdoor advertising in 11
any place accessible by the general public; and restrict the advertisement of 12
noncannabis goods by licensed cannabis establishments, which are not 13
applicable to other lawful sellers of those goods. 14
(d) The State of Vermont has a substantial interest in promoting a vibrant 15
regulated adult-use cannabis market in which licensed cannabis establishments 16
are able to displace unregulated sellers of cannabis after more than 80 years of 17
failed prohibition policies rejected by the State in 2019 Acts and Resolves No. 18
64. 19
(e) Accordingly, it is the intent of the General Assembly to amend Title 7 20
to impose constitutionally permissible restrictions on false or misleading 21

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advertising by licensed cannabis establishments and on advertising that is 1
designed to be or has the effect of being particularly appealing to minors, 2
without infringing upon the fundamental speech rights that are protected by 3
both the U.S. and the Vermont Constitutions. 4
Sec. 2. 7 V.S.A. § 861 is amended to read: 5
§ 861. DEFINITIONS 6
As used in this chapter: 7
* * * 8
(2) “Advertisement” means any broadly disseminated written or verbal 9
statement, illustration, or depiction concerning cannabis or cannabis products 10
that would reasonably have the effect of inducing sales of cannabis or cannabis 11
products, including any written, printed, graphic, or other material; billboard, 12
sign, or other outdoor display; other periodical literature, publication, or in a 13
radio or television broadcast; the internet; or in any other media. The term 14
does not include: 15
* * * 16
(B) any editorial or other reading material, such as a news release, in 17
any periodical or publication or newspaper for the publication of which no 18
money or valuable consideration is paid or promised, directly or indirectly, by 19
any cannabis establishment, and that is not written by or at the direction of the 20
licensee; 21

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(C) any educational, instructional, or otherwise noncommercial 1
material that is not intended to induce sales and that does not propose an 2
economic transaction, but that merely provides information to the public in an 3
unbiased manner; or 4
(D) a sign attached to the premises of a cannabis establishment that 5
merely identifies the name, location, or operating hours of the cannabis 6
establishment, and which may include the cannabis establishment’s logo, the 7
nature of the establishment’s business, and directions to the establishment, but 8
which does not contain overtly promotional messaging; 9
(E) any official business directional sign placed by the Agency of 10
Transportation; or 11
(F) any statement, illustration, or depiction promoting noncannabis 12
products sold by a cannabis establishment. 13
* * * 14
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