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General Assembly Raised Bill No. 5174
February Session, 2020
LCO No. 1452
Referred to Committee on GENERAL LAW
Introduced by:
(GL)
AN ACT CONCERNING AN TI-TRUST ISSUES AND THE PALLIATIVE
USE OF MARIJUANA.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2020) (a) For purposes of this 1
section: 2
(1) "Material change" means: (A) The addition of a dispensary facility 3
backer or producer backer, (B) a change in the ownership interest of an 4
existing dispensary facility backer or producer backer, (C) the merger, 5
consolidation or other affiliation of a medical marijuana business with 6
another person, (D) the acquisition of all or part of a medical marijuana 7
business by another person, and (E) the transfer of assets or security 8
interests from a medical marijuana business to another person; 9
(2) "Medical marijuana business" means a medical marijuana 10
dispensary facility or production facility, licensed pursuant to chapter 11
420f of the general statutes and the regulations promulgated 12
thereunder; 13
(3) "Person" means an individual, firm, partnership, corporation, 14 Raised Bill No. 5174
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company, association, trust or other business or tribal entity; and 15
(4) "Transfer" means to sell, transfer, lease, exchange, option, convey, 16
give or otherwise dispose of or transfer control over, including, but not 17
limited to, transfer by way of merger or joint venture not in the ordinary 18
course of business. 19
(b) No person shall, directly or indirectly, enter into a transaction that 20
results in a material change to a medical marijuana business, unless all 21
persons involved in the transaction file a written notification with the 22
Attorney General pursuant to subsection (c) of this section and the 23
waiting period described in subsection (d) of this section has expired. 24
(c) The written notice required under subsection (b) of this section 25
shall be in such form and contain such documentary material and 26
information relevant to the proposed transaction as the Attorney 27
General deems necessary and appropriate to enable the Attorney 28
General to determine whether such transaction, if consummated, would 29
violate antitrust laws. 30
(d) The waiting period required under subsection (b) of this section 31
shall begin on the date of the receipt by the Attorney General's office of 32
the completed notification required under subsection (c) of this section 33
from all parties to the transaction and shall end on the thirtieth day after 34
the date of such receipt, unless such time is extended pursuant to 35
subsection (f) of this section. 36
(e) The Attorney General may, in individual cases, terminate the 37
waiting period specified in subsection (d) of this section and allow any 38
person to proceed with any transaction. 39
(f) The Attorney General may, prior to the expiration of the thirty-day 40
waiting period, require the submission of additional information or 41
documentary material relevant to the proposed acquisition from a 42
person required to file notification with respect to such acquisition 43
under subsection (b) of this section. Upon request for additional 44
information under this subsection, the waiting period shall be extended 45 Raised Bill No. 5174
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until thirty days after the parties have substantially complied, as 46
determined solely by the Attorney General, with such request for 47
additional information. 48
(g) Any information or documentary material filed with the Attorney 49
General pursuant to this section shall be exempt from disclosure 50
under section 1-200, et seq. of the general statutes, and no such 51
information or documentary material may be made public, except as 52
may be relevant to any administrative or judicial action or proceeding. 53
Such information or documentary material shall be returned to the 54
person furnishing such information or documentary material upon the 55
termination of the Attorney General's review or final determination of 56
any action or proceeding commenced thereunder. 57
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2020 New section
Statement of Purpose:
To require review by the office of the Attorney General of proposed
changes of ownership of medical marijuana businesses licensed by the
Department of Consumer Protection.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]