{"id":186,"date":"2021-08-04T06:15:43","date_gmt":"2021-08-04T06:15:43","guid":{"rendered":"http:\/\/CBMijgFodHRwczovL3d3dy5tb25kYXEuY29tL3VuaXRlZHN0YXRlcy9jYW5uYWJpcy1oZW1wLzEwOTgzMTIvbGljZW5zaW5nLWEtY2FubmFiaXMtYnVzaW5lc3MtaW4tY29ubmVjdGljdXQtd2hhdC15b3UtY2FuLWRvLXRvLXN0YXJ0LXBsYW5uaW5nLXRvZGF50gEA"},"modified":"2021-08-04T06:15:43","modified_gmt":"2021-08-04T06:15:43","slug":"licensing-a-cannabis-business-in-connecticut-what-you-can-do-to-start-planning-today-cannabis-hemp-united-states-mondaq-news-alerts","status":"publish","type":"post","link":"https:\/\/thcinct.com\/?p=186","title":{"rendered":"Licensing A Cannabis Business In Connecticut: What You Can Do To Start Planning Today – Cannabis & Hemp – United States – Mondaq News Alerts"},"content":{"rendered":"

To print this article, all you need is to be registered or login on Mondaq.com. <\/p>\n

\n

Co-Authored by Jessica Tang
Researcher\/Summer Associate 2021<\/em><\/strong><\/p>\n

There is growing excitement among Connecticut’s business
\ncommunity about the prospects for a legal adult-use marijuana
\nmarket. Entrepreneurs, growers, and investors are beginning to
\ndevelop business plans and looking for more information on how to
\nobtain a license. Though specific licensing criteria and
\napplication deadlines have not been established yet, the law
\nprovides some guidance to allow the business community to start
\nplanning now.<\/p>\n

LICENSE TYPES, REQUIREMENTS & FEES<\/h3>\n

The law creates two groups of applicants, Social Equity
\nApplicants and general applicants. A “Social Equity
\nApplicant” is at least 65% owned and controlled by an
\nindividual or individuals, or is an individual, who:<\/p>\n

    \n
  1. Had an average household income of less than 300% of the state
    \nmedian household income over the three tax years immediately
    \npreceding the application; and<\/u><\/li>\n<\/ol>\n

    (a) was a resident of a
    \ndisproportionately impacted area for not less than five of the ten
    \nyears immediately preceding the application; or<\/u><\/p>\n

    (b) was a resident of a
    \ndisproportionately impacted area for not less than nine years prior
    \nto turning 18.<\/p>\n

    For all applicants, there are 7 types of licenses available with
    \nset fee schedules as outlined in the table below.<\/p>\n

    \"1098312a.jpg\"<\/p>\n

    Any person qualifying as a Social Equity Applicant will receive
    \na 50% discount on all fees for its first three renewal cycles.
    \nConsequently, those who qualify will receive substantial financial
    \nsavings to begin their operations. However, whether classified as a
    \nSocial Equity Applicant or a general applicant, medical marijuana
    \ndispensary operators who wish to convert their existing license
    \ninto a hybrid retailer license — which would allow the dispensary
    \nto sell for both medical and recreational use — must pay a fee of
    \n$1,000,000. Similarly, an existing medical marijuana producer
    \nwishing to convert their license to include recreational marijuana
    \nmust pay a fee of $3,000,000. These established marijuana
    \nbusinesses will not receive an automatic 50% discount on license
    \nfees even if they qualify as Social Equity Applicants, but may be
    \neligible for discounted fees if they commit to creating equity
    \njoint ventures.<\/p>\n

    The Connecticut Department of Consumer Protection (the “Department”) will not award a license to any lottery
    \napplicant who has two or more licenses of a given license type at
    \nthe time of the lottery, until June 30, 2025. As of now, the
    \nlegislature has not set limits on the number of applications an
    \napplicant may submit.<\/p>\n

    LOTTERY SYSTEM<\/h3>\n

    Licenses will be awarded by lottery with Social Equity
    \nApplicants drawn from a separate lottery than general applicants.
    \nSocial Equity Applicants will receive 50% of all licenses awarded
    \nfor each license type, while general applicants be awarded the
    \nremaining 50% of licenses.<\/p>\n

    Award of a Provisional License and Application for Final
    \nLicense<\/em><\/h3>\n

    Once an applicant has been selected from the lottery, licenses
    \nare provided in a two-step process. First, the applicant will
    \nreceive a provisional license, provided the applicant completes its
    \napplication within 60 days and pays the necessary fees. The
    \nprovisional license will expire 14 months later at which time an
    \napplicant must apply for a final license by paying the required fee
    \nand providing evidence that it has met certain criteria.<\/p>\n

    Priority for Existing Dispensaries<\/em><\/h3>\n

    It is important to note that, though Social Equity Applicants
    \nwill receive priority over general applicants, existing medical
    \nmarijuana dispensaries still may be first in line. A dispensary may
    \nconvert its license to a hybrid retailer license on or after
    \nSeptember 1, 2021, without going through the lottery process.
    \nDispensary facilities that have been approved by the Department and
    \nthat have converted to hybrid retailers may open to the general
    \npublic and commence adult use cannabis sales at a date to be
    \npublished on the Department’s website. State regulators
    \ncurrently anticipate retail sales of adult-use marijuana will begin
    \nby the end of 2022.<\/p>\n

    TIMELINE: LOOKING AHEAD TO LICENSURE<\/h3>\n

    Prospective applicants should keep in mind the following
    \nimportant dates:<\/p>\n