In Re Holland Cannabis, LLC

2025 VT 61
CourtSupreme Court of Vermont
DecidedNovember 14, 2025
Docket25-AP-054
StatusPublished

This text of 2025 VT 61 (In Re Holland Cannabis, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Holland Cannabis, LLC, 2025 VT 61 (Vt. 2025).

Opinion

NOTICE: This opinion is subject to motions for reargument under V.R.A.P. 40 as well as formal revision before publication in the Vermont Reports. Readers are requested to notify the Reporter of Decisions by email at: Reporter@vtcourts.gov or by mail at: Vermont Supreme Court, 109 State Street, Montpelier, Vermont 05609-0801, of any errors in order that corrections may be made before this opinion goes to press.

2025 VT 61

No. 25-AP-054

In re Holland Cannabis, LLC Supreme Court

On Appeal from Cannabis Control Board

September Term, 2025

Maxine Grad, Appellate Officer

Stuart W. Revo, Manchester Village, for Plaintiff-Appellant.

Charity R. Clark, Attorney General, and Alison L.T. Powers, Assistant Attorney General, Montpelier, for Defendant-Appellee.

PRESENT: Reiber, C.J., Eaton, Cohen and Waples, JJ., and Morrissey, Supr. J., Specially Assigned

¶ 1. WAPLES, J. Holland Cannabis, LLC, appeals from an appellate officer’s order

affirming the Cannabis Control Board’s decision to revoke Holland’s license to cultivate cannabis

for commercial sale. We affirm.

¶ 2. The Cannabis Control Board is responsible for licensing cannabis cultivators,

propagators, product manufacturers, wholesalers, retailers, and testing laboratories—collectively,

“cannabis establishments”—to engage in commercial cannabis activity. 7 V.S.A. §§ 861(8), 901.

The Board is also tasked with administering a compliance-and-enforcement program for its

licensees. Id. §§ 843(b)(2), 861(8). This obligation encompasses, as relevant here, enforcing the

statutory prohibition on offering “[]adulterated” cannabis for sale. Id. § 904(e)(1). The Legislature further charged the Board with adopting rules governing the “pesticides or classes of pesticides”

that cultivators may use, id. § 881(a)(2)(A)(ii), and the Board accordingly promulgated a rule

defining “adulterated” cannabis to include any product that “falls outside of action levels or

established tolerances specified in Board testing guidance” or “contains any additive or substance

that may . . . present an enhanced risk to human health.” Cannabis Control Board Rule 2.1.3, Code

of Vt. Rules 25 000 002 [hereinafter Board Rules], http://www.lexisnexis.com/hottopics/codeofvt

rules.

¶ 3. The Board is “empowered to conduct investigations of all persons who engage in

the sale or transfer of Cannabis or Cannabis Products to ensure compliance with” the Board Rules

and statutory requirements. Id. at 4.2.1. Licensees must cooperate with such investigations and

“shall give the Board and Board designees immediate access to facilities and records upon request,

including access to their physical site of operations.” Id. at 4.3.2. If the Board identifies a violation

of its regulations or related law, it may initiate an enforcement action by issuing a notice of

violation. Id. at 4.4.1., 4.8.1. The notice of violation must include, among other things, the factual

basis for the violation or violations, penalty or penalties to be imposed, and any necessary health-

and-safety orders. Id. at 4.8.2. Potential penalties include corrective-action plans, administrative

fines, and license suspension or revocation. Id. at 4.4.2, 4.5.

¶ 4. Penalties imposed by a notice of violation generally do not take effect until the

respondent has an opportunity to contest the notice. Id. at 4.9(a). Board Rule 4.10 establishes an

exception: if a notice of violation is accompanied by “a written finding that the licensee’s violation

poses an imminent threat to public health, safety, or welfare,” it may be issued with immediate

effect. Id. at 4.10. In these instances, the respondent retains the opportunity to contest the notice

of violation by filing a written response specifically identifying each issue and fact in dispute. Id.

at 4.10(b). If the notice contemplates suspension or revocation of the respondent’s license or

establishment card, the respondent may request a hearing before the Board. Id. at 4.10(e). Where

2 the supporting facts are disputed, the Board may not find that a violation occurred unless the

finding is supported by a preponderance of the evidence. Id. at 4.10(f).

¶ 5. With this understanding of the relevant aspects of the regulatory framework, we

turn to the procedural history of this case. Holland was previously licensed by the Board as a tier-

2 cannabis cultivator. In May 2024, pursuant to Board Rule 4.10, the Board issued a notice of

violation with immediate effect against Holland. In the notice, the Board alleged that

myclobutanil—a pesticide categorically prohibited for use in Vermont cannabis cultivation

because it may cause illness in humans if swallowed, inhaled, or smoked—was detected in retail

samples of cannabis products cultivated by Holland. The notice also alleged three violations of

the Board Rules: (1) intentionally concealing evidence of a violation, in contravention of Rule

4.5.1(c); (2) failing to abide by a corrective action plan as required under Rule 4.5.1(d); and

(3) using unauthorized pesticides, soil amendments, fertilizers, or other crop-production aids in

violation of Rule 4.5.2(m). It included a written finding that these violations posed an imminent

threat to the public health, safety, and welfare by placing adulterated cannabis, which may be

hazardous to human health, into the stream of commerce. On this basis, the Board issued several

orders with immediate effect, including an order directing retail cannabis establishments and

manufacturers to stop the sale of all of Holland’s products and requiring that Holland cease all new

cultivation activities or cannabis sales and initiate a recall procedure. The contemplated penalties

included an administrative fine of $20,000 and revocation of Holland’s cannabis-establishment

license.

¶ 6. Holland timely contested the notice of violation and requested a hearing before the

Board. It raised numerous arguments in its written response. As relevant here, Holland contended

that: (1) the creation and existence of the Board violate the principle of separation of powers set

forth in the Vermont Constitution, and as a result, the Board lacked authority to take any punitive

action against Holland; (2) the Board chair had made public statements pertaining to the case

3 demonstrating that he was not impartial and had already prejudged its outcome, making it

impossible for Holland to receive a fair hearing; and (3) the stop-sale order was issued absent an

appropriate opportunity for due process.

¶ 7. The Board chair issued a procedural order clarifying that the only question to be

determined at the upcoming hearing was whether a preponderance of the evidence demonstrated

that the alleged violations occurred—in other words, whether Holland “used myclobutanil in its

cultivation operations after its 2023 violation for the same conduct.” While the procedural order

recognized Holland’s challenges to the Board’s existence and the process afforded in connection

with the stop-sale order, it explained that these issues were not cognizable in the pending license-

revocation proceeding.

¶ 8. At the outset of the Board hearing in June 2024, Holland moved for the chair to

recuse himself based on his alleged public statements. The chair denied the motion. The Board

then heard testimony from three witnesses: a Board compliance agent; the president and founding

partner of one of the laboratories that tested Holland’s samples; and a Holland employee

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2025 VT 61, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-holland-cannabis-llc-vt-2025.