 Okay that banking gets assigned but Given that we will have to have the bank to go out And the insurance bill we're gonna walk through. We are We walk through the banking bill the draft. I assume it's Ready And hopefully when it comes in Okay, so let's start with a walkthrough with Molly Yes, I'm Molly don't deputy commissioner of DFR for banking and this is Amy Richardson and she's the director of regulatory and consumer affairs And she was with our life of freeze often so she's gonna We'd like to do today because it is a very it is thick Be able to Consolidating and Reorganizing a number of bills that today live one after the other after the other okay in the statues with We did Okay, I know we have some interest in one section of the insurance Okay, let's go so mostly this is as I said kind of consolidation and reorganization of Chapter 72 So we believe we're taking probably 70 or 80 pages out of the statutes by making this combination because of the way And that Are because of changing the modernizing the language so there's not a lot of changes in the language that a lot of Making it much easier to read and I wanted to thank him for doing that. I think that will help us So I'd like to just share something about to try to describe what we're doing We I was involved it with six people moving into an apartment and Of course, we all came with our stuff six steps of dishes six sets of silverware towels and pots and pans and some decorations and then my clothes and That stuff and what we had to do was figure out what we were going to use in this part We certainly were going to use it all so we figured out what all the common things were that that would go like in the kitchen or somewhere Common that we're all going to use sort that all out We knew what we had we were going to have the same dishes the same silverware the same everything and then there was all separately Bathroom so two of us here the bathroom so two of us have some smaller common things and then of course I have my own toothpaste and I'm not sharing So what we did was approach this as putting together all the common area elements and then Breaking down the specific pieces for the different kinds of license types and let me just Say this is about our licensing regime. It's not about our banking or credit union parts of title They it's just about the licensing regime with a few things at the end that I'll talk to Specifically they're almost technical changes for some of the banking pieces, but the bulk of this is about how we license Lenders of debt adjusters and so on so This says that this bill is 131 and that was my mistake But that was something else and faith has a correct copy of this Thank you So you can see here this is kind of what I described we took the blue parts of every one of these sections and Have combined them into a general section Under this regulation or this statute request these statutes Go through the same thing over and over again because we use a common licensing regime And then that last we use that for over 11 years and every time we've added a lending license type or one of these categories Much of that language was just repeated again and again. I think I remember most Perhaps this is true. I do remember that I do remember the bells And so we took all that common language then we added specifics that applied only to certain things So there's some specific things around for instance litigation funding because it's a different animal than a mortgage and Has some different requirements With us, so I mean that's the whole concept of what we started with and then So I want does anybody have any questions on And these are the categories that we're talking about lenders loan loan services mortgage brokers Commercial lenders sales finance companies debt adjusters loan solicitation companies Money services businesses and litigation funding companies. So they'll all have the same common element and So then on the other side of this sheet I wanted to show you that the bulk of all of this is the common Denominator of pulling all these together and then listing the specifics We didn't just we did feel that we should look at the licensing and make changes that we found necessary since Some of these licenses are newer. Some things have changed over time Some things we think would make it work a little bit better for us The language part will be very much better for industry. We believe And so you'll see there's a light blue section for what we changed within the licensing regime And then as I mentioned there are a few changes in the rest of title eight that are in the green section And that makes up the bulk of the bill The common sections are the first 40 pages of the bill The green section the other section is only 11 pages at the end and As we go through it, you'll find that very much in the middle of that is why not strike out strike out strike out So that you could see what got moved, but that in the end we expect that the bill We look something like much smaller 70 pages much smaller And when we started with this looking at all the sections that were being deleted It was well over a hundred and seventy pages. So we've really Done some I think work on making it streamlined So if there are no questions on the concept, I thought I would go over some of these Particulars were changing But I will start with the darker blue. You can see that this looks like the kinds of things that are in every section common definitions the application process places of business Notice material change. These are all things that we ask these Licenses to tell us that are required to tell us about so that there cannot be bait and switch What happens with revocation or surrender of our penalties are? That we can do drains and and reports and the confidentiality So all of that seems to kind of all go together in addition to being what's in each of those bills It actually makes sense when this way I think But then if I can start with the light blue section We Added some of these changes in 10 with our intention to kind of harmonize a few of the small a few of the individual licensees with this general with this general approach to a single way of looking at the licenses so these Five things are changes within the blue area in the licensing regime Identifying an abandoned application so that means that we get somebody who applies to us and they don't finish the application and it can sit there and sit there and it affects our performance evaluation on how long it takes to get in a value to approve a license and we have accreditation for licensing that this affects so we would like to be able to call those abandoned after 90 days and That is different than revoking or terminating which has some bad connotations in the licensing industry so it's just adding a way to Identify those that and this happens that people start an application and then just don't finish it. Maybe they get So applying in California Whatever reason, but you've got a partial application you can't proceed on We're waiting for them you're waiting for them, but after so long it starts to impact your Brady, yes, right And it would only be if I might add when they haven't communicated with us So there are some times where they might start the application and we're going back and forth with requests for further information And if they're staying in touch with us and and still being actively involved in it We would not be abandoned unless we we just can't reach them anymore They're not responding to any of the things that we need and we don't want it to affect our accreditation So they said it in you say We need a copy of your bank statement and it doesn't come and it doesn't come and they don't answer your phone Or emails or that or whatever else then After 90 days you say okay, and they'll have to start over they'll have to Update anything The next is to change the three-year exam period for loan solicitation We do a couple of these debt adjusters and money services business. We do on a risk basis We would like to need that to a risk basis Which is in the language so that if we saw that there was something that needed to be attended to quickly We could the commissioner has the authority to ask for exam But if there's nothing going on with that we can attend to things that have a bigger risk factor And we have not had any kinds of Increases in concerns or Category so we like to Yes The third one is really a Detail we are changing where we use stored value in the bill in the statutes We want to change that to prepaid access because that's the word that is used by Vincent the financial crimes Oversight part of the US Treasury and many of the states use prepaid access These companies that are applying in all 50 states Are used to that word we didn't change our definition of that at all. So it's just a word I'm just going through the changes within licensing and if anybody wanted to I have the exact pages for each of these changes No problem. So I Don't have any problems that changes. I don't know what either of those terms so It's used in reference to gift cards give certificates a debit card is a prepaid access card and Under our definition could include And that and like Molly said it's not changing the definition it's a virtual currency will remain within there It's just changing what we call it instead of Instead of stored value it will now be prepaid access which is is broadly The next one is that we have at we have some changes to our money services business And I'll just go over those quickly and this has come from this is another Kind of license that's that's kind of new but we see a lot of activity in this And so we feel that some of these things need to be added to make our License stronger One of them is there are four things we've added So we are added we've added three exemptions that are very common in the industry One is the agent for payee one is a payment processor and one is Other state independent trust companies and all of these these three exemptions either have legal a legal legal legal requirement that Someone takes on responsibility for a process Doesn't include actual control of the money or in the case of the independent trust company They're under a Regulatory regime that's probably even more strenuous than the one we would have when we examine them. So these are Exemptions from being licensed if you are a agent for the payee So what that means is that if I hire agent to pay something for me They accept responsibility to make sure that's paid It's not that they are cast here when they're controlling my money for a while So like that by contract they've accepted that responsibility to make sure the payment is made and that's in contract Well, what's that an individual we're talking companies companies, you know, there's a example ADP And Yeah, I guess that They they control more money, but in the case of ADP they accept responsibility for making payments to their to the employees for a Company and for paying the taxes that are due and they they're legal contract binds them to pay that so Okay, so this would be like a payroll Yes, okay one example They would they don't have the employer's money. That's in the bank But they write a check Employer and send it to the employees plus To take the taxes and remit the taxes to the state They actually have the money, but they also have the legal responsibility to pay Those funds out to someone keep them Okay, the licensing regime around that will be to make sure somebody doesn't say I'm gonna go pay your taxes and you give me the money And I don't pay it and I take off to Canada Okay, it avoids that but where there's this legal contract. We feel that that covers the consumer and there are other examples of companies who May do this payment processing for like your utility bills so instead of you taking the time to write your own check or go into your online banking and There are companies that do that on behalf of consumers and and as Molly said, there's a contractual Obligation for them to make sure the debt is extinguished or the payment is is no longer the consumer's responsibility And and this is a commonly accepted exemption from this type of license Okay, so we wouldn't license them because they come in the contract law If they don't pay my utility bill I by that contract not liable to pay Green Mountain Power They are and Green Mountain Power would have to go after them for payment They couldn't come back and go after me With your help with my help. Yes, but okay. Yeah, and this is a very common exemption as Because we're part of this Licensing regime we speak with the other 50 states that are part of this And all 50 states are part of this particularly for the mortgage section after the 2009 mortgage crisis the safe act required that mortgage Originators be licensed. So we have this Wonderful resource to be able to be in touch with all of the other states often And that makes it easier for its banks get more national and international and other eight to have one If not identical very similar licensing process It's similar to the insurance industry where you're getting the states are coming together Each other's Insurance is under threat of federal takeover And some of this has been to Is it standardizes a lot of the big common items But it still allows us to be very independent and have our state-specific items Which we still do have and we'll hold out there where we feel it's important to and where the risks are but this is one of the areas where You know the licensure may just be over for reason to these companies that already have the obligation and as just to reiterate Companies that are perhaps applying in 50 different states with 50 different Sets of rules, so we are trying to come together as a group of states to make it easier Or at least more consistent for them to be licensed the This is a little off topic, but there is the OCC has talked and has actually awarded license charters to FinTech companies which if they if that catches on and There are some lawsuits happening But if that happened we believe a lot of the companies that we are licensing will move To that rather than to a federal charter Yeah, and that would give them the ability to work in all 50 states without state control Yes, so ADP has set up a trust and they have just been awarded and a charter So it's in our best interest ADP is the the payroll processing. They are the payroll processing company Okay Some factors Job numbers Then the last one on the Like blue box is this some setting of the litigation funding report. So That asked kind of off the kilter We get an annual report from these kind of companies every year all these companies do This is the it's fine People they there's a lawsuit involved will pay a huge amount of dollar and I will get I will get X percent of your award Yes, and we are requesting that that's that Not not the annual report They were still having a report that we will monitor but there was an extra report added when this Bill was passed into statute Requiring us to do a study but to do a separate report just on these companies and we only have to So we you know, we have to spend quite a bit of time on two companies when we have 4,000 companies to worry about so you'd like to sunset that in Is your company that pay a flat fee for No, if you if you have a lawsuit they say the potential for your lawsuit is $10,000 if you need the money now we'll give you that money now Good on for portion of that the amount we think that will get really settled Because you may need the money to pay your lawyer or medical or medical bills Yeah, yes, so why is it so you have to do that so With these it's a registration versus a license when the bill passed it's a registration So they have to report to us and so they file a report with us Just like all of our other licensees But as opposed to all of the other companies that we supervise we have to Work with the attorney general's office and file a report with the legislature every year Saying we have two companies And the odd thing is it's in October so we monitor all the call reports that come in During the beginning of the year when it's this kind of one-off thing that we're doing for two companies So we just like to change the date Or put it here or something. Yeah. Yeah. Well, it would show up in Our report that there are only two of them and how many So it is being reported it's just not a second. Yes, it's not as if the two of us that are interested to welcome to go Maybe What's what are payday customers? Oh We don't allow them in Vermont, but they are in many states they're permitted where Perhaps I'm getting paid this Friday and I'm out of money So I can go to them and they can give me an advance of money with the agreement that I would go back when I get Paid on Friday and pay them back. They usually charge a really high rate of interest because it's an Unsecured and riskier loan generally to people with less than stellar credit There was a lot of Yeah, there's a lot of abuse around military bases and people shipping out and There is an issue with people with being able to cash we also check cashers that charge You Do we outlaw check cashers to we license check casters under our money service businesses So the licensees that are money service businesses in the state of Vermont can cash checks We also have a separate license for check casters, but generally speaking It's the large grocery stores and Walmart and the state that are our licensees for check And so they charge a fee to cash those checks because generally the financial Institutions due to the bank secrecy after requirements don't do that unless you're a customer or a member Do we monitor on that to the payday loan thing what's happening online with Things like that, you know, can you I think there are programs that are nationwide You know those kinds of things Our control when we get reports or complaints, then we will send them a letter But due to the limitations of our Resources we haven't been able to proactively address that issue. I assume any mortgage done by quicken Similar online Yes, I've done a few off And I think that Modernizing a little bit really make easy this licensing Because it certainly seems to me that with what we charter and what we license this is the fastest-growing Yeah, any other questions about the licensing changes we've requested Yes Yeah And has you know as I said rewritten much of the language modernize it Steve Newton from our office is going to do the life I live with you. Okay Okay Next week here. Okay. Okay. Okay. So one more little section. These are the other changes within banking We want to Add some language about late fees. There used to be a Federal word that said that you had to if you had a loan that would apply To interest principle and then other fees like escrow and the last would be late fees that rule that federal Statute was repealed because of some other things in it But that particular piece wasn't put back into place So we want to make sure that we have that place here so that no one can get their loan Listed as delinquent because the late fees would take it first. We don't have instances of that We want to add some rules about advertising using a bank name We've had some instances last summer in particular where information that is public was used to say that such and such a loan at a Bank using the bank's name. We see that you have that and you need to call And it was somebody trying to sell mortgage life insurance a couple credit unions have that too And the bank had no idea or the credit union had not given permission for this So we want to codify that this is false advertising that we can do something about it and Find people penalize them because if the way the statutes are right now That would be referred back to the AG's office and they have to go through the postmaster general I don't find that it comes male fraud So we have to make it clear that you have to talk to the bank if you want to use their name. Okay, or the credit union How does the entity know that the person has a loan with the bank? It's public record after you file a mortgage Mortgage information is public record The next one is another double recording issue that we have since the mortgage meltdown where If there's going to be a foreclosure We have to be notified. We have to attest to the fact that we've been notified and then the court is notified But we also get all of the court records quarterly about foreclosures so we have a way to monitor that and We do look at that But it's just this one extra step that's kind of left over from 2009 and we'd like to just have this that They could go directly to the court and then we will still get it I will still get that from the court. They quarterly doesn't have to be signed 22 The next one is just an update for federal citation in 1062 Lending I think it's You know section 23 was changed to section 1023, but it's long in our status. It's just an update Just three more We would like to remove the requirement for us to do quarterly banking checking account that was originally designed for basic banking But all the banks have a basic banking which is part of their CRA program to show that they are looking out for People who don't want to spend a lot of money on a checking account and all of them have gotten so complex that They each want to have their own little thing to make it different So the we the report is not too long to make But takes a lot of time calling the banks to remind them they have to do a quarterly We have one that has to come out and the report which I do have one of those in here somewhere It's not very instructive that we don't have people who look at us So Just to spend time on some of these other more important risk issues Okay, and I Have Okay You like to offer Change to the land Which we know is also in the tax bill, but for Market chores Lean makes it difficult for that property to be sold in the secondary market the recommendation is that this be Deemed a contingent lien which still protects Property this is a from you Okay This is actually passed this past last year, but it was in the budget bill and then We've done it before And then the very last They're just you and there's two chairs you can unfold We ask the next of the last one we ask that Entities report to us any ATMs that they are opening We have not asked them to tell us when they close them so we have this long list of open ATMs that is incorrect and In looking at our own record retention requirements. We can't take them off until we know they're closed So we'd like to ask that people let us know when they close them so that when we do an exact one Our records retention when we go to look for them that they're not there. Oh Okay, they were close. So it's a tiny thing, but it will just tell our And then the last is A no-action letter which you might be familiar with to have a no-action letter in securities and insurance today But we do not have this This is when we get a request saying this is what our business plan is Does this meet your standards and requirements to do the legal work for that? We'd like to charge a fee to a $50 fee, which is the same as insurance and security And then we issue a letter saying we reviewed what you submitted And if you do business based on what you submitted, we will not find the problem With the business you're doing for my time. So we'd like to be able to do that How many of those do you issue a year? We we have to consider We already have had this year last year we did 38 considerations for business models This year we've already in two months had 11 So we're on track almost double what we did last year and that's the reason for my saying Is licensing is an area that's the fastest-growing in our division No, it's not included in the bill you're going to look at but we did already talk to ways and means about the fee section And we will get it's going in the fee bill. Yes, okay So we will get that and the last change that we will see in here is That Yeah, because in that we asked for a combination fee combination fee so Chris very nicely had an Illustration where you can get your deer license and your fishing license together. So it's cheaper than buying two licenses So we have that for mortgages. We have about 112 companies that have either, you know, they might have a mortgage broker and a mortgage service or license They have some combination in the mortgage realm and we'd like to be able to offer a combination a combination and character fee for Less than two separate fees. Yes. Yes $1500 versus Not a lot Okay, so that that is in the fee bill. Yes. All right, if it doesn't let us know and The fee bill Okay, okay, and that's my Thank you, it makes something of that weight Civil one more manager one week to go we kill it. So that's good. Thank you And I hope you enjoy all the lineouts in the middle And we start noticing all the money Yes, there's quite a few Okay, okay. Thank you very much for your time. I'll let us give you your patience. It's that time of year with four times I will predict it. We'll be back with a line by line. Okay, great. Especially the outs we look forward to Very much. Thank you. We're gonna go on Yes We canceled the half last week as we get going down in canvas So it's back on today Michael This is another new one. I do not know what's in it No telecom today I Mostly because I didn't give him as much time as I gave Goes with the territory I Was very happy to have The New York State Capitol And he was my constituents so we sent the bill over to go box and Jim condos was in charge Big he'd be less likely to be assaulted with That was over The treasurer's Should I be in you can we're back on safe territory. All right, so s 58 is an act relating to the state time program like a great legislative council just for some background the state has had a program since in statute since 2007 but hemp during that time was listed by the federal government as a controlled substance In 2014 the federal farm bill authorized states to grow and cultivate him And under pilot programs run by state agencies for universities in 2018 the farm bill was amended again to remove hemp From the list of controlled substances and to authorize states to run programs regulating the cultivation and sale actually says the production of and products This bill is intended to update the statute so that it no longer references those old laws no longer references hemp being illegal under the controlled substances and that and then brings the state program into conformance with the federal of the new federal farm bill 2018 farm bill requirements Part of what is being done is a registration requirement for those people who are going to grow process on-site process or be a certified lab for testing and They will pay a fee That he gets put into a special fund that is used by the agency to pay for personnel and to run the program Okay, so on page one You'll see a finding section in the chapter in title six the agricultural Related to 10 there's a finding section about what the entire chapter is supposed to do The first change is on page one lines 12 through 15 striking out that reference to the 2014 farm bill pilot program Authorization and then striking out the reference to hemp being regulated under the federal controlled substances act Moving down on page one line 18 through 20. You'll see the purpose of the check Is to establish policy and procedures for growing processing on-site processing testing and marketing You then come to the definitions There's a definition of grow People are going to be registered as growers and they're planting cultivating harvesting of drying them selling storing transporting hemp grown by Then you get to the definition of There is no definition of hemp products in the federal farm bill they reference hemp products and say states can't impede the flow of hemp products and They don't define what kind of products are this is In consultation with Kerry to care at the agency. This is the definition We've come up with it's all products with a federally defined THC concentration level for hemp derived from remaining by processing hemp Plants or plant parts that are prepared in form available for commercial sale including Cosmetic cosmetics personal care products food intended for animal or human consumption Both forage fiber fuel paint paper construction here at the plastic and any product containing a lot of work and derived cgd So one of the things I want to reference is that it's the federally defined THC concentration level which is currently 0.3 THC on a dry weight basis. There's been some speculation that there might be alternative tests that are allowed that will be For example wet testing the crop. So it's not on a dry weight basis. So if the feds In their rules that they're required to adopt under the 2018 Farm Bill authorized alternative methods are authorized alternate THC levels You don't have to go back in and amend the bill again. It's just what's federally authorized as the Forgive my ignorance What is the criteria by which it said today 23 that is the definition in the farm bill That's it. All right. Thank you The gorilla has spoke Yeah Page three is that definition of him. It's it's cannabis, which he just talked about on the floor and any part Including the seeds and all derivatives extracts Kavanaugh's acid salts isomers and salts of isomers whether grow or not with that federally defined THC level And it shall be considered an ag modeling which you will see later on in the bill as well There's a definition of Bonsai process It's we're growing hemp and processing hemp or hemp products at the location where the hemp is grown provide that no more That more than 50% of the hemp or hemp products Process at the location shall be grown at the register location. So some farmers or Growers I should say might be processing at a site and they can take in some hemp from other Growers and process it at their site, but if they're going to be on site Processor, then they have to produce 50% or more of their product That plays into the There's a definition of process storing driving trimming handling, etc Turning hemp into a hemp product And those are the definitions Then on page four line three section 563 This is where hemp is declared an ag product in the statute and it's just referencing the 2018 farm bill Page four line 10 Section 564. This is really the meat of the bill the state hemp program You're striking on line 11 the reference to pilot project You're adding the fact that there's going to be an application for the registration and then you can skip the page six You'll see on line four that the secretary is directed to establish a state hemp program for growing Processing on-site processing testing and marketing of hemp and hemp products You'll see on page six line eight that a person who wants to do any of those activities Process on-site process, etc needs to apply to the secretary from red to register application shall be accompanied by a fee application or renewal form Provided by the agency and it has to and it's going to require certain information depending on what you're buying Registration for so you need the name and address your contact information Whether the person in the client you grow process on-site processor tests for a grower The federal farm bill requires that there be a legal description of the land where the hemp is going to be grown So you need to provide a location and acreage of all parcels where hemp will be grown And you need a statement that the seeds used are below the T8. There are meeting the federally defined THC well For a processor you need to give the agency the site of the processing location And this is all that well for the Cultivator that anyone who's growing Yes, yes, yeah, and the seed is also For a person applying as an onsite process Break as an also you have to give everything you need to give as a grower and then you have to give a statement that 50% or more of what you are going to process is from the onsite cultivation and then for a person applying To be a testing lab You have to give the location of the testing lab and any certification of that lab that the secretary may require Secretary on page 7 line 19 is authorized to verify that information that is provided and request additional information necessary In order to review the application On page 8 line 3 through 12 the secretary is authorized to deny Registration if the applicant doesn't provide the information requested fails to submit the fee fails to submit the additional Information or does not meet the requirements under the federal farm bill and there are things like if you're up-dealing if you have negligently violated the THC levels Over a course of time if you have with an intent other than negligent intent And I don't really know what that means I Cultivating THC Cultivating hemp with it with the THC in access of point three and Number of times over a course of years you are prohibited from registering in the program You did you brought it up to the 2014 pilot So I remember the joking about you couldn't burn it That sometimes No, the hemp sometimes some of the plants will come in with a higher THC they cross over into marijuana, right and we had a process for Destroying or Right, so technically when it hampers on the controlled substances list When you have that that crop that cross over between three you no longer had hemp You had marijuana, right and now you're a farmer with the part of the load of marijuana Which is still at that amount criminal right So and federally criminal as well So what you did last year as you said if you're your crop is under one In THC that you have some alternatives You can contract with the dispensary to separate out the THC It's a return the crop to you or otherwise dispose of it So basically giving that farmer alternatives other than burn your crop and by the way Your crop now comes in Three years in a row or two out of three years We're going to start being a little You you may not participate in the program So hemp producer that negligently violates the state of driver plan Three times in a five-year period shall be ineligible to produce them for a period of five years Beginning on the date of the third violation And then if you have A mental state greater than negligence I didn't know negligence was a coable mental state Then you have you the state agency the attorney general etc It's a felony And any person convicted of a felony related to a controlled substance Shall be ineligible During the 10-year period. Okay, that was my if you've been caught dealing Not just an ounce but a trunk That's from the federal law I'm reading the federal law. It's not What we've done is just said hey, you've got to comply with the federal requirement Instead of putting a culpable mental state greater than negligence into a state law Okay, so congress did that That answers it all right So on page eight line 13 to 15 a person registered may purchase or import hemp genetics from the state that's also federally compliant Page eight line 16 a person registered with the secretary under the program Is subject to inspection by the agency of ag that is a federal requirement for your program But on page nine one of the things that the senate committee was the ag committee was discussing was yes, but the agency Needs to know where the location is where the parcels are that's required by the federal law But maybe we don't want everyone else to know exactly where hemp is being grown So the name and general location of a person registered with the agency Will be public, but any specific information about the location of that field its coordinates its tax id number, etc That will not be available to the public Title drains to me Why don't you want to know the general location of anybody so if you want to know where Where a lab is set up if you want to know where an on-site processor is the agency wants to know that Right, but just right and so the public Do you want to know where the marijuana grower is in south brough? So that was the committee That was the committee's discussion that there should be some general knowledge But not information about the location of the field So Happy smoke farm is registered as a hemp row. Did you say happy smoke farm? But they've got 200 acres They're going corn on 150 on What's not going to be public is where on that 200 acres the 50 acres of hemp Are located Yeah, that's true Or the deer Yeah, because there have been there were news stories last year about major theft Um, and I was amazed at the value So that's that's that's part of it the flowers when they're They are valuable I guess my question is why is it of the person rather than the operation? What if I live in sure a lot and have a piece of land in the middle? Who does it know if someone I mean the default definition of person pretty much includes every kind of legal entity that you can think of Corporations limited liability corporation. I mean, it's it's it's everything Since you don't live on the land in middle sex, it might be much more problem to clear cutting In your absence, you might not like citizens united, but the general assembly is to find a person as a corporation Yeah Then the corporation could be registered in linden county. Yes, and that's the general location of the corporation But its operation might be in washington. That's correct So what we're after is the location of the business is that what we're after here? That is what would be you get the agency under the federal farm bills required to get Information about the site of the parcel where the hemp is grown, right? So the agency the agency will have that information But if they receive a public records request about who is it's cultivating marijuana cannabis Hemp in under the program in south berlinton They would say these people are registered as growers and this is the site of their business But they don't provide the site where the Healables are they don't provide information regarding the cultivation of the hemp The agency knows is this this has gone through agriculture, right? Yes But this is not if they don't have a committee bill. We're going to do a committee bill Is that the idea? No It was referred here. Yeah, okay There's rulemaking authority that the agency already has you're amending that to give them authority to require To have requirements for testing or different types of testing Page 10, they're also going to have rulemaking authority to require labels or label information on hemp products And then you get to your your section page 10 line 10 the registration fees So a person applying to grow but only to grow hemp or seed grain fiber or textile A hundred dollar registration For a person applying to grow for floral material production and via we'll see are kind of the noise They have a fee based on acreage and you'll see that on page 11 If they have less than 25 acres, they pay $50 if they have 25 to 9.9 acres They have paid $250 if they have 10 to 50 acres They pay 500 and if they have greater than 50 acres they pay a $1,500 fee People who process Page 11 line 6 and 7 they pay $1,500 fee people who are a lap pay $1,500 fee People who are an on-site Processor so they are growing and processing They pay twice the amount of what they would have paid if they were just applying as a grower So if they have 0.5 to 9.9 acres They pay $500 And they don't pay the $1,500 that process Mass Sorry, are these fees consistent or did they come out of something else that ag and food and markets does or What sort of generated the conversation Um, they were originally some of the numbers were originally proposed by the agency, but for example the on-site processor fee That was purely the recommendation of the committee Okay, my That is the base question is 0.5 9.9. All right How many plants go into 7 8 acre and what's the What's the value of the crop that that's going there? Do you know? um, if I'm not the person really Yeah, no, I mean that's just a question. I I'm a bag agency can do that I just know that The ag committee is inclined to cut farmers a good deal and I Want to make sure that The people of the state of vermont also are sharing in this new cost Well, as with any fee, I think this fee is designed from the agency's proposal to fund the program Okay, so I I don't believe it's uh, I give it to give a form or a deal that I have that button on my keyboard Um But it's my understanding that this is going to that special fund to pay for the cost of the program. Okay And I think that's what I want to make sure is that it's adequate and that it is In relation, I think there's a if it's worth 10 million dollars and we're only giving a 50 dollar fee. Yeah I'm just Yeah, we're trying to fund a Prevention and a couple other things This may not be the fee to look at On page 11 line 15 If you decide after you've registered that you want to grow more You first have to inform the secretary and pay the additional registration fee Um, and then on page 12, you'll see the special fund It's administered by the agency That it receives appropriations or revenues that you want to appropriate to it and then it receives all the registration fees And then on page 12 line 11 Through 15 and you'll see that it's used for the cost of personnel program administration testing other costs In third by the agency running program There's no renewal fees. Yeah The it's the same. It's the application Every year Yeah So What makes this a program? What does the agency do other than register people? Um They provide a lot of service to to the people that are that are cultivating and accessing They're going to be Helping with in my opinion Navigating some of the federal requirements for some of the home products Um, for example the federal farm bill in 2018 said hey, it's no longer a controlled substance. But by the way The food and drug act applies to drugs and food and and then there's a separate act for supplements And the FDA's authority still applies So The drug When you're holding a product out for its medicinal benefits and that product is used in or on your body That's a drug And FDA needs to approve that and so That's something that that processors People making products are going to have to navigate Do they do that now? I mean don't they sell CBD oils in Lot of places around but remember it used to be a controlled substance and just like those states where legalized marijuana The vets just weren't enforced. Okay, right but the federal farm bill says The FDA has now had jurisdiction over those products because it's no longer controlled substance and They have the FDA has asserted that they they will assert jurisdiction. There was a rate where a whole bunch of things were confiscated Yeah That's I wanted. Yeah, they weren't FDA approved CBD oils products But that product there is a process there there's Going to be a process. I mean technically there already is a process because you it's if you're going to register as a drug You can register as a drug, right? But that FDA needs to approve it and so far I think they've only approved one two two products The cvd and as as a drug One of them is the seizure, right? Yeah, I know last year we just said we were going to We weren't going to require state approval because It was our little girl that was going to call rather than Stop the seizures four times a day Okay Talking about industrial things and then they're talking about The products that include Is that is there a separation? The one separation is where when you are applying for registration if you are just growing For food fiber or seed and not for the cvd flower Over cvd product, then you pay a lower registration fee otherwise No difference You're not going to be a processor. You're just going to cut it down Just growing for that Drying is processing Drying is processing and growing if you're drying and you're the grower that that's that's I'm also processing No We're defined to grow To include drying by the grower, okay, right that makes more sense, right? So because it's just part of The process of of harvest, right? Yeah So retail is just sales tax pardon me retail is just sales tax products and so retail That that is not addressed in this bill Oh, we don't pay tax sales tax on like over the power of drugs, do we? Not if they're drugs you don't And if they're close, how about nutritional supplements you don't pay Sales tax on I don't think I think you do. I think you do No, like remember that whole fight over like inshore and stuff like that All kind of that That was a big fight for vitamins and I remember I remember that I remember the I remember the fight I don't remember the outcome I don't either I don't want to the facts though Okay, it was on the table a few years ago. There was a whole suite of items I'll tell me how I'm not sure. Okay. Well, I think we're probably So are we gonna any anything to compare this would confirm the fees are the most important Is there any other There are others There are others people that are setting up their programs with with different fees Uh, that is my um, understanding that that's why the agency proposed these fees at these levels Agency do you want to talk to us? Offer we did multi-state comparisons of fees and this puts us Lower middle and the fees were designed to cover In the end two positions Okay So just a rock and I can see your brain. No, no, I just I think we should do something Because it's so new To review it or sunset or something to make sure you're visiting a couple years or ever Well, hopefully the fees will get on we used to do it every three years until the fees got Stopped and Some of us are hoping we get back on that three-year schedule so that we do review them And they do cover the cost at least Yeah So these fees originally were in this bill they were proposed by the agency in the fee bill the house has seen them And changed them you're seeing the reflected fees. So you will see them again and they will be part of our Our fee bill in the future. Okay So we will get to look at fees We usually do So we changed that a definition from his products and moved things like seeds and Seed oil and over to him on the next section page two Well, didn't seeds used to be I have no clue. That's why Seeds are under Right, but they changed pages on definitions from the bottom of 18 on page two they disappear and then they show back up again on page three Right, you're moving them from hemp products to hemp So a seed is really hemp. It's not a hemp products, right? I broke that definition out of matter of science Did you squeeze the seed to make It's also conforming with the definition of hemp under the federal law because other than federal law It means we're trying to tap us to see that at any part of that plan including the seeds thereof All right, so It's partly driven by So processing the needs made 14. I'm sorry, it's made on 14 Story drive turning handling compounding converting They agree So if you try to store Threshing Separating seeds from no separating seeds from the on the rest of the special Um, you know, I think that we're probably We probably if you want we could get somebody that does Do this in to talk to us About how Well, that's what I'm saying maybe we can get a partner to speak to talk to us About how these different processes work Um And how it goes from being a plant To a medicine And or other things Yeah, okay Okay, thank you. We've got one more bill Which we walked through before and it turned out to be more simple than This is the tax expenditure carbon Which turned out to be a study Of how we might incorporate of businesses Either intent or present practice of limiting carbon admissions to part of I think the Evaluation process It's probably the evaluation process For the tax credit It's a study So this is studying the carbon tax credit It's for tax credits, right? Excuse me, um, it's uh Tax and jfo do a biennial report on tax expenditures And this will be basically come back to the report on are there criteria that we use to evaluate the carbon impact of Vermont's business tax credits And is there someone to incorporate that into the existing report for zero to two years And so does this include things like the veggie program that's not tax credit exactly it's more Yeah, it's it's in there. It's a tax expenditure. Is it is I'm not sure The same way it would fall under this or not Um The thing is it could be particularly complicated for example, I just think about tax expenditures We've got a tax expenditure in which we don't charge a sales tax on locomotives Now what that would suggest is that we then do an evaluation of how much carbon a locomotive in this And then we have a similar credit on on One on ferries and then we I mean this could become a monster In terms of just the labor associated with calculating this Because basically the review was every tax expenditure. That's one of the business tax credit I mean, I'm having a hard time getting my head I did somebody was figured there's real money here No, I don't think no, this is Senator Lyons. You don't think she figures there's real money here. Did she do a lot? She did come in. Yeah, she came in You know, she's just trying to figure out a way when we're trying to reduce emissions if there's a way to evaluate your car, you know like your You're not part of what your building is not an uninsulated But I believe we have up the building code so you can't do that anymore. There was a concern for quite a while that some of these big box stores just put up tin roofs and let Priced up the heat and let the heat go out and we did quite sure Do some insulation and building code standards there. We can check that when she was here. It sounded easy I thought she had the solution in the bill and that had me a little nervous Is this Senator Lyons is a really short We should at least take a little more to be responsible Who's going to do this and what Labor intensity Maybe we will ask Graeme to come in and Steve Klein and talk to us about Yeah, let's see if somebody from joint fiscal will come We just ran the credits when I'm studying him because it takes too much trouble to study him. It might be easy I mean, I could see You know Steve Klein, you know measuring the exhaust out of every locomotive that we give him credit for it But we want locomotives now There was a time where we didn't but locomotives a long court Diesel engine I I think you know It's an interesting idea how it works out in practicality and How much effort it would take There's a cost benefit going on here and other things I would rather Have joined fiscal measure. I mean you could say just grossly that there would be an adverse Impact on some things but how much that is and how you measure it and then it's still You know a judgment case is that The reason that you're giving the tax you're making the tax expenditure. Does it still offset the amount of the I'm not sure what the object of this is I think the object is to simple terms to to reward companies that are not Exactly that are not contributing to The global climate whatever and so I mean these are when it comes to Subsidizing other behaviors It was tax revenues because they are equally as useful. We go my goodness. We can't spend that kind of money Where do you think it up? But what do you think it up? Oh if you wanted to send everybody they didn't have an electric car So much Reducing carbon right and um and say well, that's a great idea It would you know it makes a lot of sense. We don't have the money to do that And then if someone else is finding a locomotive or some Or doing something in their process and that says we go pay it. Well, it's easy We can pay for the credit even the dollar amount is the same and the carbon amount of savings is the same It's a double standard All right, you could argue that they you know the locomotive actually reduces carbon because Every time you use a locomotive you avoid using 1800 trucks. Yeah, and so he's going to do that calculation Okay, we made it on time