LCO No. 2856 1 of 24 General Assembly Raised Bill No. 6377 January Session, 2021 LCO No. 2856 Referred to Committee on LABOR AND PUBLIC EMPLOYEES Introduced by: (LAB) AN ACT CONCERNING LA BOR PEACE AGREEMENTS AND A MODERN AND EQUITABLE CANNABIS WORKFORCE. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective from passage) As used in this section and sections 2 to 1 33, inclusive, of this act, unless the context otherwise requires: 2 (1) "Cannabis" means cannabis type substances, as defined in section 21a-240 of 3 the general statutes; 4 (2) "Consumer" means an individual who is twenty-one years of age or older; 5 (3) "Cultivation" means cultivation, as defined in section 21a-408 of the general 6 statutes; 7 (4) "Dispense" means dispense, as defined in section 21a-240 of the general 8 statutes; 9 (5) "Distribute" means distribute, as defined in section 21a-240 of the general 10 statutes; 11 (6) "Laboratory" means a laboratory located in the state that is licensed to 12 Raised Bill No. 6377 LCO No. 2856 2 of 24 provide analysis of controlled substances pursuant to section 21a-246 or 21a-408 13 of the general statutes as authorized by this act; 14 (7) "Cannabis concentrate" includes tinctures and extracts; 15 (8) "Cannabis cultivation facility" means a facility licensed to cultivate, prepare 16 and package cannabis and sell cannabis to cannabis product manufacturing 17 facilities, cannabis retailers and other cannabis cultivation facilities; 18 (9) "Cannabis establishment" or "cannabis business" means any cannabis 19 business licensed or seeking licensure by the Cannabis Control Commission under 20 this act; 21 (10) "Cannabis product" means a cannabis concentrate or a product that is 22 comprised of cannabis or cannabis concentrates and other ingredients and is 23 intended for use or consumption; 24 (11) "Cannabis product manufacturing facility" means a facility licensed to 25 purchase cannabis, manufacture, prepare and package cannabis products and sell 26 cannabis and cannabis products to cannabis product manufacturing facilities and 27 cannabis retailers; 28 (12) "Cannabis retailer" means a person registered (A) to purchase cannabis 29 from cannabis cultivation facilities, (B) to purchase cannabis and cannabis 30 products from cannabis product manufacturing facilities, and (C) to sell cannabis 31 and cannabis products to consumers; 32 (13) "Cannabis microbusiness" means a vertically integrated cannabis business 33 that does not exceed ten thousand total square feet dedicated to the cultivation of 34 cannabis plants or the manufacture of cannabis products and that is permitted to 35 cultivate, process and distribute cannabis and cannabis products to licensed 36 retailers and to deliver its own cannabis or cannabis products direct to consumers 37 pursuant to a single license; 38 (14) "Bona fide labor organization" means a labor union (A) that represents 39 employees in this state with regard to wages, hours and working conditions, (B) 40 whose officers have been elected by a secret ballot or otherwise in a manner 41 consistent with federal law, (C) that is free of domination or interference by any 42 employer, (D) that has received no improper assistance or support from any 43 Raised Bill No. 6377 LCO No. 2856 3 of 24 employer, and (E) that is actively seeking to represent cannabis workers in this 44 state; 45 (15) "Equity" and "equitable" mean or refer to efforts, regulations, policies, 46 programs, standards, processes and any other functions of government or 47 principles of law and governance intended to: (A) Identify and remedy past and 48 present patterns of discrimination and disparities of race, ethnicity, gender and 49 sexual orientation; (B) ensure that such patterns of discrimination and disparities, 50 whether intentional or unintentional, are neither reinforced nor perpetuated; and 51 (C) prevent the emergence and persistence of foreseeable future patterns of 52 discrimination or disparities of race, ethnicity, gender, and sexual orientation; and 53 (16) "Labor peace agreement" means an agreement between a cannabis 54 establishment and a bona fide labor organization that protects the state's interests 55 by, at minimum, prohibiting the labor organization from engaging in picketing, 56 work stoppages or boycotts against the cannabis establishment. 57 Sec. 2. (NEW) (Effective from passage) (a) The sum of XX dollars shall be 58 appropriated, annually and at the start of each fiscal year, for five consecutive 59 fiscal years, to the Department of Economic and Community Development, from 60 the General Fund for the purposes specified in this section. The first year of 61 funding under this section shall begin with the fiscal year ending June 30, 2022. 62 The funding under this section shall go to the following purposes: 63 (1) To provide grants-in-aid to create, support and deliver workforce training, 64 education and other programs that prepare individuals with an adverse criminal 65 history related to cannabis and who reside in the state or on tribal lands within the 66 state to participate in the lawful cannabis business sector and in secondary 67 industries that directly support such sector. The grants-in-aid created pursuant to 68 this section may be directed toward workforce training providers, educational 69 institutions, economic development and human services agencies, labor unions, 70 private employers, not-for-profit community organizations, not-for-profit 71 economic development organizations, local governments and other public and 72 private entities as identified by the Department of Economic and Community 73 Development, in consultation with the Department of Labor, the Black and Puerto 74 Rican Caucus of the General Assembly, the Governor's Workforce Council and the 75 Cannabis Control Commission, established pursuant to section 8 of this act and 76 Raised Bill No. 6377 LCO No. 2856 4 of 24 the Office of Justice Reinvestment, established pursuant to section 18 of this act. 77 (2) To provide grants-in-aid or low-interest loans in support of equity among 78 new small cannabis businesses operating in the state or on tribal lands within the 79 state and that commit to engaging in substantial workforce development, 80 apprenticeships, or on-the-job training and education, in ways generally 81 consistent with subdivision (1) of this section for individuals with an adverse 82 criminal history related to cannabis. 83 (3) To provide grants-in-aid and loans to municipalities, community 84 development corporations and other public or private entities for the purpose of 85 rehabilitating disused or abandoned industrial and commercial facilities and 86 remediating brownfields, provided that such facilities and remediated areas be 87 reserved for the use of cannabis equity applicants and licensees, pursuant to this 88 section, sections 3 to 33, inclusive, of this act and any regulations adopted pursuant 89 to said sections, and to support environmental justice in communities of color and 90 low-income communities. 91 (4) To support the administration of such grants-in-aid, which may include the 92 hiring of additional staff, contracting with vendors, engaging in public outreach 93 and education and the funding of any other measures that the Commissioner of 94 Economic and Community Development deems necessary to ensure that grants 95 and loans issued pursuant to this section are distributed in an equitable manner 96 and are spent in compliance with regulations adopted pursuant to this section and 97 sections 3 to 33, inclusive, of this act. 98 (b) The Commissioner of Economic and Community Development shall adopt 99 regulations, in accordance with the provisions of chapter 54 of the general statutes, 100 and shall issue guidance and create such forms and procedures as he or she deems 101 reasonable and necessary to ensure that grants-in-aid funded pursuant to this 102 section are distributed in an equitable manner and are used in a cost-effective 103 manner for their intended purpose. 104 Sec. 3. (NEW) (Effective from passage) (a) On and after one year from the effective 105 date of this section, in order for the state to relieve employees, job seekers, 106 employers and businesses of the unjustified stigmatization of cannabis and to 107 further support the establishment of a modernized and equitable cannabis 108 business sector, the following nondiscrimination and antiretaliation protections 109 Raised Bill No. 6377 LCO No. 2856 5 of 24 shall apply to all employers: 110 (1) No employer may implement a policy prohibiting the possession, use or 111 other consumption of cannabis in the course of employment by an employee 112 unless such policy is: (A) In writing, (B) equally applicable to each employee, (C) 113 made available to each employee prior to the enactment of such policy, and (D) 114 directly related to a clear business necessity. The employer shall provide any such 115 written policy to each prospective employee at the time the employer makes an 116 offer of employment to the prospective employee. 117 (2) No employer or agent of any employer shall require, as a condition of 118 employment, that any employee or prospective employee refrain from using 119 cannabis outside the course of his or her employment, or otherwise discriminate 120 against any employee with respect to compensation, terms, conditions or 121 privileges of employment for using cannabis outside the course of his or her 122 employment. 123 (3) No employer or agent of any employer shall discriminate against any 124 employee or prospective employee on the basis of his or her prior, current or 125 future involvement in lawful cannabis commerce in this state, or in any other state, 126 territory, district, tribe or other jurisdiction. 127 (4) No employer or agent of any employer shall retaliate against any employee 128 or prospective employee for alleging a violation of any part of this section or 129 assisting in any investigation of an alleged violation of any part of this section, or 130 for assisting another employee or prospective employee in seeking to redress an 131 alleged violation of any part of this section. 132 (b) The provisions of this section shall not apply to any position or condition of 133 employment governed by federal law or regulation that clearly preempts any 134 provision of this section with regard to an employee's possession, use or other 135 consumption of cannabis or involvement in lawful cannabis commerce. 136 (c) If an employer has violated any provision of this section and is not otherwise 137 exempted by subsection (b) of this section or other superseding provision of state, 138 federal or tribal law, an individual aggrieved by such violation may bring a civil 139 action for compensatory damages and judicial enforcement of such provision in 140 the superior court for the judicial district where the violation is alleged to have 141 Raised Bill No. 6377 LCO No. 2856 6 of 24 occurred or where the employer has its principal office. Any such individual who 142 prevails in such civil action shall be awarded reasonable attorney's fees and costs. 143 Sec. 4. (NEW) (Effective from passage) There is established a cannabis equity task 144 force whose purpose shall be to study, make findings of fact for and issue 145 recommendations to the General Assembly and the Governor regarding equity, as 146 are relevant to the establishment and regulation of cannabis cultivation, 147 manufacture and sale as a lawful and modern business sector in the state. The task 148 force shall be composed of seven commissioners, four of whom shall be appointed 149 by the Black and Puerto Rican Caucus of the General Assembly, one who shall be 150 the Labor Commissioner, or his or her designee, one who shall be the 151 Commissioner of Consumer Protection, or his or her designee, and one who shall 152 be the Commissioner of Economic and Community Development, or his or her 153 designee. The task force shall choose a chairperson from among its commissioners. 154 Except for the Commissioners of Labor, Consumer Protection and Economic and 155 Community Development, any task force commissioner may be removed by such 156 commissioner's appointing authority at any time and a replacement shall be 157 appointed not later than fourteen days after the date of such commissioner's 158 removal. Commissioners shall be chosen from persons having no present or 159 pending financial or managerial interest in any cannabis establishment or other 160 cannabis business in this state or in any other place or who have entirely divested 161 themselves of any financial or managerial interest in any cannabis establishment 162 or other cannabis business in this state or in any other place not less than fourteen 163 days prior to accepting appointment as a commissioner. The Equity Task Force 164 shall establish such rules for its meetings and governance as it deems reasonable 165 and necessary to carry out its purpose and described in this section, section 2 to 4, 166 inclusive, of this act and sections 5 to 33, inclusive, of this act, provided, a quorum 167 of not less than four commissioners shall be required to be present for any binding 168 vote of the task force. 169 Sec. 5. (NEW) (Effective from passage) Not later than one year after the 170 appointment of the seventh commissioner to the cannabis equity task force 171 pursuant to section 4 of this act, said task force shall issue a written report, in 172 accordance with the provisions of section 11-4a of the general statutes, to the 173 General Assembly and Governor, with detailed findings of fact regarding the 174 following matters in the state: 175 Raised Bill No. 6377 LCO No. 2856 7 of 24 (1) Historical and present-day social, economic and familial consequences of 176 cannabis prohibition, the criminalization and stigmatization of cannabis use and 177 related public policies; 178 (2) Historical and present-day structures, patterns, causes and consequences of 179 intentional and unintentional racial discrimination and racial disparities in the 180 development, application and enforcement of cannabis prohibition and related 181 public policies; 182 (3) Foreseeable long-term social, economic and familial consequences of 183 unremedied past racial discrimination and disparities arising from past and 184 continued cannabis prohibition, stigmatization and criminalization; 185 (4) Existing patterns of racial discrimination and racial disparities in access to 186 entrepreneurship, employment and other economic benefits arising in the lawful 187 palliative use cannabis sector as established pursuant to chapter 420f of the general 188 statutes; and 189 (5) Any other matters that the task force deems relevant and feasible for study 190 for the purpose of making reasonable and practical recommendations for the 191 establishment of an equitable and lawful adult-use cannabis business sector in this 192 state. 193 Sec. 6. (NEW) (Effective from passage) (a) Simultaneous with the issuance of its 194 detailed findings of fact pursuant to section 5 of this act, and based upon such 195 findings, the cannabis equity task force shall issue specific recommendations for 196 statutory enactments, amendments and repeals, the adoption or amendment of 197 regulations, executive orders, programs, agencies, commissions, grants, financial 198 instruments and any other tools of governance, public policy and public or private 199 finance and investment that it deems: 200 (1) Necessary and feasible for the General Assembly and the Governor to 201 implement in order to create and regulate an equity-based and lawful adult-use 202 cannabis business sector; 203 (2) Necessary and feasible to remedy and uproot past and present patterns of 204 racial and other forms of unlawful discrimination arising directly or indirectly 205 from cannabis prohibition, stigmatization, and criminalization; and 206 Raised Bill No. 6377 LCO No. 2856 8 of 24 (3) Necessary and feasible for the General Assembly and the Governor to 207 improve and achieve equity within the palliative-use cannabis sector established 208 pursuant to chapter 420f of the general statutes. 209 (b) The cannabis equity task force shall also issue recommendations regarding: 210 (1) The criteria and regulatory structure the Cannabis Control Commission, as 211 established pursuant to section 8 of this act, should use when defining "equity 212 applicant" and "equity applicant ownership of a cannabis business", for purposes 213 of licensure. Such recommendations shall include, but not be limited to: 214 (A) (i) Criteria an individual or business should meet in order to be classified as 215 an equity applicant or business; (ii) benefits and responsibilities that should 216 accompany such classification; and (iii) limitations and controls that the 217 Commission should impose on the ownership, transfer and sale of businesses 218 receiving the benefits of equity-related licensure; 219 (B) The amount of capital and overall number of cannabis businesses needed to 220 sustain an equitable cannabis business sector and workforce composition in the 221 state; and 222 (C) The amendment of cannabis-related criminal statutes, penalties and related 223 collateral civil consequences of convictions. 224 Sec. 7. (NEW) (Effective from passage) The cannabis equity task force shall have a 225 budget of XX dollars allocated from the General Fund. From such budget, the task 226 force shall contract with researchers and research organizations and may hire staff 227 and otherwise purchase goods and services in order to carry out its duties and 228 purposes pursuant to sections X to XX, inclusive, of this act, in a thorough and 229 timely manner. In selecting researchers and research organizations to conduct 230 such study the task force shall prioritize the hiring of researchers and research 231 organizations with substantial experience in qualitative and quantitative research 232 related to race and racial disparities, including, but not limited to, quantifying the 233 economic and social impact of racism and racial discrimination. The task force 234 shall also prioritize the hiring of research organizations that are certified minority-235 owned businesses operating in the state. No part of this section shall be interpreted 236 to limit the number or areas of knowledge and expertise of researchers and 237 research organizations that the task force may hire. The task force shall be 238 Raised Bill No. 6377 LCO No. 2856 9 of 24 responsible for supervising and managing all hires of any kind made pursuant to 239 this section. Any moneys remaining unspent after the completion of duties of the 240 task force pursuant to sections X to XX, inclusive, of this act shall be retained in 241 trust and remitted to the Cannabis Control Commission to support the 242 commission's first year of operations. 243 Sec. 8. (NEW) (Effective from passage) (a) Not later than six months after the 244 issuance of the findings of fact and recommendations of the cannabis equity task 245 force pursuant to section X of this act, there shall be appointed and seated a 246 Cannabis Control Commission, composed of five commissioners. Two of the 247 commissioners of the commission shall be appointed by the Black and Puerto 248 Rican Caucus of the General Assembly and the remaining commissioners shall be 249 the Commissioners of Labor, Consumer Protection and Economic and Community 250 Development, or a qualified designee of such commissioners. The commissioners 251 appointed by the Black and Puerto Rican Caucus shall be appointed for a two-year 252 term, renewable by such caucus at the end of each such term. Each commissioner 253 appointed by the Black and Puerto Rican Caucus shall receive a base salary of not 254 less than XX dollars annually. The appointing authority for each commissioner of 255 the Cannabis Control Commission may remove its appointed commissioner at any 256 time, for cause. No vacancy on the Cannabis Control Commission shall be 257 permitted for longer than thirty consecutive days. 258 (b) The Cannabis Control Commission shall employ an executive director and 259 may establish, alter and remove subordinate offices within said commission. Said 260 commission may hire staff, contract with personnel and vendors, establish an 261 operational budget, expend moneys, communicate with the general public and 262 carry out all other ordinary duties and activities of a regulatory agency. 263 (c) The Cannabis Control Commission shall establish rules for its own 264 operations and decision-making, provided no decisions of public policy are made 265 without a properly convened quorum, which shall consist of a minimum of three 266 commissioners. 267 Sec. 9. (NEW) (Effective from passage) (a) The Cannabis Control Commission 268 established pursuant to section X of this act shall be an independent regulatory 269 agency and shall have exclusive regulatory authority and oversight over all 270 aspects of the cultivation, production, distribution, transport, sale and other 271 Raised Bill No. 6377 LCO No. 2856 10 of 24 commerce in cannabis and cannabis products for nonpalliative and nonmedical 272 use, except as expressly provided for in sections X to XX, inclusive, of this act. 273 Nothing in said sections shall prevent the Cannabis Control Commission from 274 cooperating with other departments, agencies or state or local authorities, 275 provided the Cannabis Control Commission may not delegate final decision-276 making authority on any matter of regulation, public policy, licensure, funding, 277 inspection, compliance or discipline under its jurisdiction to any authority or body 278 outside of said commission and its subordinate offices. 279 (b) The Cannabis Control Commission may, consistent with sections X to XX, 280 inclusive, of this act and chapter 54 of the general statutes, adopt regulations to 281 establish a system of licenses for commerce in cannabis, investigate applicants, 282 licensees and other relevant persons, set standards, set and waive fees, hold 283 administrative hearings, impose discipline and otherwise take such measures and 284 exercise such regulatory powers as necessary to establish a modern well-regulated 285 cannabis business sector, to ensure equity in all aspects of the sector and to protect 286 public safety and public health related to the use of cannabis. 287 (c) In carrying out its duties and exercising its authority pursuant to sections X 288 to XX, inclusive, of this act, the Cannabis Control Commission shall adopt the 289 findings of fact and seek to implement the recommendations issued by the 290 cannabis equity task force. The Cannabis Control Commission and its Office of 291 Justice Reinvestment, shall report publicly every six months to the Governor and 292 General Assembly on the Cannabis Control Commission's progress toward 293 implementation of the recommendations of the cannabis equity task force, until 294 such time as all such recommendations are fulfilled. 295 Sec. 10. (NEW) (Effective from passage) If any provision of sections X to XX, 296 inclusive, of this act or any provision of any regulation adopted pursuant to said 297 sections conflicts with any provision of chapter 420f of the general statutes, the 298 provisions of sections X to XX, inclusive, of this act shall prevail. 299 Sec. 11. (NEW) (Effective from passage) No person or entity licensed by the 300 Cannabis Control Commission may hold itself out as providing for the palliative 301 use of marijuana or cannabis, as defined in chapter 420f of the general statutes, or 302 otherwise provide for the medical use of cannabis, unless licensed by the 303 Department of Consumer Protection pursuant to said chapter and regulations 304 Raised Bill No. 6377 LCO No. 2856 11 of 24 adopted pursuant to said chapter. Nothing in this section shall be interpreted as 305 prohibiting a holder of a license under sections X to XX, inclusive, of this act from 306 concurrently holding a license issued pursuant to chapter 420f of the general 307 statutes. 308 Sec. 12. (NEW) (Effective from passage) The Cannabis Control Commission shall 309 not adopt or implement any regulation, standard, policy, application, process or 310 other requirement that prohibits individuals from participating in or obtaining 311 licensure in the lawful cannabis business sector on the basis of either an arrest or 312 conviction for: (1) Any cannabis-related offense in any jurisdiction, or (2) an arrest 313 or conviction for a misdemeanor drug offense of any type in any jurisdiction. 314 Sec. 13. (NEW) (Effective from passage) (a) Not later than one year after its 315 establishment pursuant to section X of this act, the Cannabis Control Commission 316 shall establish, set standards for, issue and regulate to following six types of 317 licenses: 318 (1) Licenses authorizing the cultivation and production of cannabis (cannabis 319 cultivation license); 320 (2) Licenses authorizing the manufacture of cannabis products intended for sale 321 (cannabis product manufacturing facility license); 322 (3) Licenses authorizing the retail sale of cannabis and cannabis products to 323 consumers (cannabis retailer license); 324 (4) Licenses authorizing laboratories for the testing of cannabis, pursuant to 325 standards and requirements established by the Cannabis Control Commission 326 (cannabis laboratory license); 327 (5) Licenses authorizing businesses that deliver cannabis and cannabis products 328 directly to consumers at a residential address from one or more licensed cannabis 329 retailers (cannabis delivery license); and 330 (6) Licenses authorizing microbusinesses, (cannabis microbusiness license). 331 (b) The Cannabis Control Commission shall deliberate and hold public hearings 332 regarding the establishment of other types of licenses, including, but not limited 333 to, single-use event licenses and use-on-premises licenses. The Cannabis Control 334 Raised Bill No. 6377 LCO No. 2856 12 of 24 Commission may, subsequent to one or more public hearings and upon its own 335 discretion and judgment, establish, issue and regulate such additional license 336 types that the commission deems likely to support equity within the cannabis 337 business sector, fiscally prudent and consistent with public safety and health. 338 (c) For all license types established pursuant to sections X to XX, of this act, the 339 Cannabis Control Commission shall adopt regulations in accordance with the 340 provisions of chapter 54 of the general statutes, set such standards and establish 341 such mechanisms as it deems necessary to enforce the provisions of sections X to 342 XX, inclusive, of this act and to ensure equity, fiscal prudence, public safety and 343 public health. 344 (d) The Cannabis Control Commission may revoke any license type authorized 345 pursuant to sections X to XX, inclusive, of this act upon a finding by said 346 commission that such license type fails to improve equity within the cannabis 347 business sector, fails to be fiscally prudent or endangers public safety or health, 348 provided that holders of such licenses are accorded reasonable notice and an 349 opportunity to appeal such decision pursuant to the provisions of chapter 54 of 350 the general statutes. 351 (e) For all license types, the Cannabis Control Commission shall solicit 352 applications, issue licenses and permit the start of operations in two phases, as 353 follows: 354 (1) Equity applicants, who shall consist of those categories of persons and 355 entities identified by the cannabis equity task force or by the Cannabis Control 356 Commission's Office of Justice Reinvestment, as disproportionately and unjustly 357 burdened by cannabis prohibition and its collateral consequences, and 358 (2) Regular applicants, who shall consist of all other persons and entities. No 359 regular applicant shall be accepted for review until one year after the first equity 360 applicant licensee of the same type of license commences operations. 361 (f) For purposes of this section "operations" means the first date that a cannabis 362 business transaction authorized by a license takes place in the cannabis 363 establishment. 364 (g) For all license types and for both equity applicants and regular applicants, 365 Raised Bill No. 6377 LCO No. 2856 13 of 24 the Cannabis Control Commission shall consult with the Office of Justice 366 Reinvestment and solicit its recommendations regarding regulations, 367 requirements, qualifications, standards and the review of applications. 368 (h) The Cannabis Control Commission shall adopt regulations in accordance 369 with the provisions of chapter 54 that limit changes or transfers of ownership of 370 businesses holding equity applicant licensure and strictly limit the use of 371 subsidiaries, holding and shell companies and other similar corporate vehicles in 372 the equity application process so as to preserve the equitable purposes of sections 373 X to XX, inclusive, of this act and to prevent the misuse of the equity application 374 process. Such regulations shall include, but not be limited to: (1) A ten-year 375 prohibition on the transfer or sale of a business licensed by an equity applicant to 376 a person or business that does not qualify as an equity applicant or licensee, and 377 (2) the repayment of the previous ten years of all equity-based license fee waivers, 378 subsidies, grants, low-interest loans and other financial supports provided 379 through or regulated by the Cannabis Control Commission, the Department of 380 Economic and Community Development or the Department of Labor, prior to the 381 date of transfer or sale of the business. 382 Sec. 14. (NEW) (Effective from passage) On and after one year from the effective 383 date of this section and notwithstanding any provision of sections X to XX, 384 inclusive, of this act or any provision of the general statutes or the Regulations of 385 Connecticut State Agencies or of any local ordinance, a person twenty-one years 386 of age or older shall not be required to hold a license and shall not be arrested, 387 prosecuted, penalized, sanctioned or disqualified under in any manner, or denied 388 any right or privilege and shall not be subject to seizure or forfeiture of assets for: 389 (1) Any cannabis produced by cannabis plants cultivated on the premises of the 390 person's primary residence; (2) possessing, cultivating or processing not more than 391 six cannabis plants at any one time for personal use on the premises of his or her 392 primary residence, as the sole adult resident; or (3) possessing, cultivating, or 393 processing not more than twelve cannabis plants at any one time if the premises 394 are shared by two or more adults twenty-one years of age or older as their primary 395 residence. 396 Sec. 15. (NEW) (Effective from passage) Notwithstanding any requirements, 397 standards or restrictions imposed by the Cannabis Control Commission pursuant 398 to its authority under sections X to XX, inclusive, of this act a cannabis 399 Raised Bill No. 6377 LCO No. 2856 14 of 24 microbusiness license shall, for all holders, permit the cultivation, processing, 400 manufacture and distribution of cannabis and cannabis products to licensed 401 retailers and permit the delivery of the microbusinesses' cannabis and cannabis 402 products directly to consumers, under a single microbusiness license. 403 Sec. 16. (NEW) (Effective from passage) Notwithstanding any other provision of 404 sections X to XX, inclusive, of this act or any regulation adopted pursuant to said 405 sections, the Cannabis Control Commission shall not accept an application for any 406 manner of license from a person or entity who owns or operates a business or other 407 establishment licensed pursuant to chapter 420f of the general statutes, until such 408 time as the Office of Justice Reinvestment makes a determination that equity in 409 ownership in the cannabis business sector has been sustainably achieved. 410 Sec. 17. (NEW) (Effective from passage) In addition to any other licensure 411 requirements and standards established by the Cannabis Control Commission, the 412 commission shall require each applicant for a cannabis establishment license to 413 enter into, maintain and abide by the terms of a labor peace agreement. All labor 414 peace agreements shall contain a clause that the parties agree that final and 415 binding arbitration will be the exclusive remedy for any violation of such 416 agreement. Each applicant, whether for an initial license or renewal of a license, 417 shall submit an attestation signed by both the applicant and the bona fide labor 418 organization stating that the applicant meets the requirements of this section. A 419 labor peace agreement shall be an ongoing material condition of a cannabis 420 establishment license and a violation of such agreement, established exclusively 421 through arbitration, may result in suspension, revocation or denial of the renewal 422 of such license. 423 Sec. 18. (NEW) (Effective from passage) The Cannabis Control Commission shall 424 establish an Office of Justice Reinvestment not later than six months after the 425 establishment of said commission. The Cannabis Control Commission shall hire 426 staff and authorize the Office of Justice Reinvestment to hire staff, and shall 427 provide funding and other resources so that said office may perform the following 428 duties in a thorough and efficient manner: 429 (1) Advise the Cannabis Control Commission, the General Assembly and the 430 Governor on all equity matters under the Cannabis Control Commission's 431 jurisdiction; 432 Raised Bill No. 6377 LCO No. 2856 15 of 24 (2) Meet on a quarterly basis with the Black and Puerto Rican Caucus of the 433 General Assembly to provide updates on the implementation of the cannabis 434 equity task force recommendations, the condition of the cannabis business sector 435 and any other equity-related matters of importance to said caucus and to request 436 legislative remedies from said caucus, as the Office of Justice Reinvestment deems 437 reasonable; 438 (3) Oversee cannabis workforce grants, loans and other financial supports, 439 distributed pursuant to sections X to XX, inclusive, of this act or pursuant to any 440 other cannabis-related programs under the Cannabis Control Commission's 441 jurisdiction, which includes, but is not limited to, assessing their equitable 442 distribution, the effectiveness of their use by recipients, compliance with their 443 terms, conditions and goals by recipients and any other matters regarding the 444 effective and proper use of funds in the interest of equity in the cannabis business 445 sector. The Office of Justice Reinvestment may exercise any authority and powers 446 delegated to it by the Cannabis Control Commission, the Departments of Labor, 447 Consumer Protection and Economic and Community Development, and any other 448 state, local or tribal authority to carry out its oversight duties pursuant to this 449 subdivision. Said office shall have the authority and power to request and compel 450 the production of documents, data, witnesses and other investigatory materials 451 from other public entities in the state and any private entity receiving any manner 452 of benefit or license pursuant to this act, provided that no part of such production 453 by either a public or private entity shall be considered a public record or be open 454 to public inspection. 455 (4) Oversee, approve or disapprove, and host community agreements between 456 cannabis businesses and municipal governments. 457 (5) Conduct research, engage in public outreach and education, and carry out 458 all other duties assigned to it by the Cannabis Control Commission with such 459 powers and budget as allocated to it by the Cannabis Control Commission for the 460 purposes of supporting and improving equity within the cannabis business sector 461 and supporting and improving equity within the operations and administration 462 of the commission. 463 Sec. 19. (NEW) (Effective from passage) Not later than one hundred eighty days 464 after the establishment of the Office of Justice Reinvestment, the Cannabis Control 465 Raised Bill No. 6377 LCO No. 2856 16 of 24 Commission and the Departments of Labor, Consumer Protection and Economic 466 and Community Development shall expressly delegate such powers to the Office 467 of Justice Reinvestment as necessary for said Office to carry out its duties and as 468 may be subsequently assigned to it by the Cannabis Control Commission, in a 469 timely and efficient manner. The Cannabis Control Commission and the 470 Departments of Labor, Consumer Protection and Economic and Community 471 Development may delegate additional powers to or enter into cooperative 472 agreements with the Office of Justice Reinvestment so that said Office may carry 473 out its duties in a timely and efficient manner. 474 Sec. 20. (NEW) (Effective from passage) (a) There shall be a Cannabis Control 475 Commission Operational Trust Fund held and administered by the Cannabis 476 Control Commission and that shall receive one hundred per cent of all licensing 477 and other regulatory fees and one hundred per cent of all cannabis sales tax 478 surcharges. The Cannabis Control Commission Operational Trust Fund shall be 479 expended to support the regulatory operations of the Cannabis Control 480 Commission and to supplement any funds allocated from the General Fund and 481 shall allocate not less than seventy per cent of the fund to the support and duties 482 of the Office of Justice Reinvestment. 483 (b) The Cannabis Control Commission shall expend not less than ten per cent 484 of revenue into the Cannabis Control Commission Operational Trust Fund to 485 support workforce development programs aimed at increasing the number of 486 qualified cannabis sector workers from disproportionately impacted 487 backgrounds, which may include such programs as established or funded 488 pursuant to sections X to XX, inclusive, of this act. Such allocation shall not reduce 489 the amount allocated to the Department of Economic and Community 490 Development pursuant to sections X to XX, inclusive, of this act in any manner, 491 but shall be used to supplement and increase such allocation. 492 Sec. 21. (NEW) (Effective from passage) (a) There shall be a state-wide ten per cent 493 sales tax surcharge, in addition to the general sales tax, on all cannabis and 494 cannabis product sales. Any municipality may impose not more than a three per 495 cent municipal cannabis tax, which shall be in addition to the general sales tax and 496 the sales tax surcharge. 497 (b) There shall be an additional ten per cent restorative justice tax on all gross 498 Raised Bill No. 6377 LCO No. 2856 17 of 24 revenue over one million dollars of cannabis businesses, including pass-through 499 entities, in addition to any other corporate taxation or taxation on pass-through 500 income. 501 (c) The Department of Revenue Services shall adopt regulations, in accordance 502 with the provisions of chapter 54 of the general statutes, issue guidance and issue 503 or amend such forms, and otherwise institute such measures as necessary and 504 reasonable to enact and enforce the provisions of this section on a timetable 505 consistent with the needs and requirements of the Cannabis Control Commission. 506 Sec. 22. (NEW) (Effective from passage) No municipality may unconditionally 507 prohibit the operation of a cannabis establishment or cannabis business within the 508 limits of such municipality. The provisions of this section shall not prevent 509 municipalities from regulating the zoning, licensing, hours of operation, outward 510 appearance or other matters subject to municipal jurisdiction of business 511 establishments generally, provided that no ordinance, regulation, license, permit, 512 fee or tax imposes a burden on cannabis establishments or cannabis businesses 513 substantially greater than the burden imposed by the municipality on a similarly 514 sized business involved in the manufacture, distribution, or sale of alcoholic 515 liquor. 516 Sec. 23. (NEW) (Effective from passage) Not later than six months after the 517 establishment of the Cannabis Control Commission, the Governor shall invite, in 518 consultation with the Cannabis Control Commission and the Office of Justice 519 Reinvestment, those other states, territories, tribes and the District of Columbia 520 where commerce in cannabis is lawful to enter into an interstate or inter-521 jurisdictional compact with the state that shall provide for a well-regulated 522 interstate and interjurisdictional commerce in cannabis. The Governor shall take 523 such steps as needed to secure agreement from such federal agencies that regulate 524 commerce to withhold interference or interdiction of a well-regulated commerce 525 in cannabis established through such compacts. No compact shall be proposed or 526 entered into pursuant to this section unless the terms of such compact are 527 consistent with the equity-related goals established by the Cannabis Control 528 Commission and the Office of Justice Reinvestment pursuant to sections X to XX, 529 inclusive, of this act. 530 Sec. 24. (NEW) (Effective from passage) (a) No commissioner of the Cannabis 531 Raised Bill No. 6377 LCO No. 2856 18 of 24 Control Commission during the term of his or her office and for one year after, 532 and no executive or managerial employee of state or municipal government, no 533 judge of any court, no prosecutor and no employee of a police department or other 534 law enforcement agency with jurisdiction over the investigation and enforcement 535 of cannabis-related crimes or crimes regarding controlled substances shall be 536 permitted to have, directly or indirectly, individually or as a member of a 537 partnership or as a shareholder of a corporation, any financial or managerial 538 interest in any cannabis establishment licensed by the Cannabis Control 539 Commission or licensed under chapter 420f of the general statutes or any business 540 whose principal source of revenue or market entails providing goods or services 541 specifically and directly to cannabis establishments licensed by the Cannabis 542 Control Commission or licensed under chapter 420f of the general statutes. 543 (b) No commissioner of the Cannabis Control Commission during the term of 544 his or her office and for one year after such term and no executive or managerial 545 employee of state, county or municipal government, no judge of any court, no 546 prosecutor, and no employee of a police department or other law enforcement 547 agency with jurisdiction over the investigation and enforcement of cannabis-548 related crimes or crimes regarding controlled substances shall be permitted to 549 receive any commission, profit, gratuities, offer of future employment, 550 partnership, ownership or other financially beneficial association, or gifts of any 551 kind from any person or cannabis establishment or cannabis business licensed 552 under sections X to XX, inclusive, of this act or under chapter 420f of the general 553 statutes, for the duration of their public employment. 554 Sec. 25. (NEW) (Effective from passage) Except as authorized under sections X to 555 XX, inclusive, of this act, no municipality or local official shall condition any 556 official action, nor accept any donation in moneys or in kind, from any cannabis 557 establishment or from an individual or corporation that has applied for a license 558 to open or operate a cannabis establishment in such municipality or neighboring 559 municipality. No municipality may negotiate or enter into a local host agreement 560 with a cannabis establishment or an individual or corporation that has applied for 561 a license to open or operate a cannabis establishment in such municipality or 562 neighboring municipality without the express written approval of the Office of 563 Justice Reinvestment. 564 Sec. 26. (NEW) (Effective from passage) Municipalities shall be eligible for 565 Raised Bill No. 6377 LCO No. 2856 19 of 24 cannabis workforce and economic development grants and loans or other funds 566 under the jurisdiction of the Cannabis Control Commission, the Office of Justice 567 Reinvestment or the Departments of Labor, Consumer Protection and Economic 568 and Community Development, but no municipality shall be eligible for any such 569 cannabis workforce or economic development grant or loan or other funds unless 570 such municipality has passed a resolution or ordinance adopting the findings of 571 fact of the cannabis equity task force and committing the municipality to the 572 implementation of its recommendations, as applied to municipalities. 573 Sec. 27. (NEW) (Effective from passage) The Cannabis Control Commission shall, 574 not later than sixty days after its establishment, consult with The University of 575 Connecticut regarding entering into an ongoing research partnership to provide 576 studies, research, training, education and any other manner of engagement in 577 support of equity in the cannabis business sector, of equity applicants and 578 licensees and of equity in the cannabis workforce. The Control Commission shall 579 seek to enter into formal and informal partnerships with The University of 580 Connecticut for not more than one hundred eighty days and as needed thereafter. 581 Sec. 28. (NEW) (Effective from passage) Neither the presence of cannabinoid 582 components or metabolites in a person's bodily fluids, nor conduct related to the 583 use of cannabis or the participation in cannabis-related business or other activities 584 made lawful under sections X to XX, inclusive, of this act or by any section of the 585 general statutes or the regulations of state agencies, or by local ordinance, by a 586 custodial or noncustodial parent, grandparent, pregnant woman, legal guardian 587 or other person charged with the well-being of a child, shall form the sole or 588 primary basis for: (1) Any action or proceeding by a child welfare agency or in a 589 family or juvenile court, or (2) any adverse finding, adverse evidence or restriction 590 of any right of privilege in a proceeding related to adoption, fostering or a person's 591 fitness to adopt or foster a child. 592 Sec. 29. (NEW) (Effective from passage) (a) On and after one hundred eighty days 593 after the effective date of this section: (1) Any educational institution receiving 594 public funds or subject to the regulations of state agencies shall revise and 595 implement student disciplinary policies to conform to the criteria in this section. 596 (b) The Department of Education and the Office of Higher Education, in 597 consultation with the Cannabis Control Commission and the Office of Justice 598 Raised Bill No. 6377 LCO No. 2856 20 of 24 Reinvestment, shall adopt regulations in accordance with the provisions of chapter 599 54 for the implementation of the provisions of this section. Such regulations shall 600 include, but not be limited to, regulations for collecting information regarding 601 student disciplinary actions related to cannabis and to undertake remedial 602 measures to correct discriminatory conduct, disparate impacts and improper 603 implementation of the provisions of this section. 604 (c) Each educational institution subject to the provisions of subsection (a) of this 605 section shall file a detailed report, consistent with regulations adopted pursuant 606 to subsection (b) of this section, with the relevant regulatory agency for each 607 disciplinary action related to cannabis. 608 (d) Any student found unlawfully in possession of cannabis on the premises of 609 his or her school or while engaged in school activities, such as field trips, athletic 610 competitions or science fairs off-premises, may receive or be subject to counseling, 611 drug-related education or community service related to the school, or any 612 combination of such actions programs, as may be appropriate for the individual 613 student's educational and social needs. Such disciplinary action shall not be more 614 severe than equivalent school penalties for the underage use of alcohol. 615 (e) Any educational institution subject to the provisions of subsection (a) of this 616 section may elect to establish a restorative justice program for addressing matters 617 related to cannabis, other controlled substances, alcohol or tobacco. Any such 618 restorative justice program shall include, but not be limited to, an education 619 curriculum that is tailored to the needs and circumstances of individual students. 620 (f) Any educational institution subject to the provisions of subsection (a) of this 621 section may elect to establish a cannabis diversion program, or other substance 622 abuse diversion program, as part of a school drug policy. Any such diversion 623 program shall include, but not be limited to, counseling, support and education 624 regarding cannabis abuse and other substance abuse. 625 (g) No student found unlawfully in possession of cannabis on school premises 626 or while engaged in school activities, such as field trips, athletic competitions or 627 science fairs off school premises, may be subject to out of school suspension of 628 more than ten days. 629 (h) No school disciplinary policy shall be construed to prohibit the involvement 630 Raised Bill No. 6377 LCO No. 2856 21 of 24 of a student or school in a criminal investigation reasonably related to the unlawful 631 possession or distribution of cannabis on school premises or in the course of school 632 activities. In any investigation or other proceeding where a student subject to 633 school discipline for possession of cannabis may reasonably be expected to be a 634 witness or to be subject to arrest, the student shall have a right to independent 635 counsel free of charge. Any student entitled to counsel under this section or any 636 other provision of state, federal or tribal law shall be promptly informed of his or 637 her right to counsel and be granted the means to request counsel by the school. 638 (i) No beneficiary of financial aid or student loans shall have his or her 639 eligibility, rights, privileges or options revoked, restricted or otherwise adversely 640 changed on the basis of cannabis-related activity that is lawful under sections X to 641 XX, inclusive, of this act. Any contractual provision or policy contrary to the 642 provisions of this section shall be deemed void and against public policy. 643 (j) No person lawfully dwelling in student housing shall be subject to discipline, 644 termination of residency, eviction, or any other housing-related sanction for 645 cannabis-related activity lawful under sections X to XX, inclusive, of this act or 646 shall be subject to school discipline for cannabis-related activity, where permitted 647 under sections X to XX, inclusive, of this act, that does not substantially involve 648 housing-related misconduct. Any contractual provision or policy contrary to this 649 section shall be deemed void and against public policy. 650 (k) Violation of any part of this section shall give rise to a private right of action 651 by any student subject to school discipline under this section or any legal parent 652 or guardian of such a student. Such private right of action may be filed in the 653 superior court for the district in which the school is located. 654 Sec. 30. (NEW) (Effective from passage) (a) On and after one hundred eighty days 655 after the effective date of this section, it shall be unlawful to: 656 (1) Refuse to rent, lease, license, sell or otherwise make unavailable any unit of 657 housing on the basis of a person's prior charge or conviction for a cannabis-related 658 offense or past, current or future involvement or participation in the lawful 659 cannabis business sector; 660 (2) Make any inquiry into a prospective tenant, licensee or purchaser's criminal 661 history related to cannabis; or 662 Raised Bill No. 6377 LCO No. 2856 22 of 24 (3) Discriminate in the terms, conditions or privileges of the sale or rental of any 663 dwelling on the basis of a person's prior charge or conviction for a cannabis-related 664 offense or past, current or future involvement or participation in the lawful 665 cannabis business sector. 666 (b) Homeless shelters, respite homes, nursing homes and other long-term care 667 facilities shall not be exempt from the provisions of subsection (a) of this section. 668 (c) The provisions of subsection (a) of this section shall not apply to sober living 669 houses or other housing intended to provide a therapeutic or rehabilitative 670 environment related to drug or alcohol use or to temporary lodgings, including 671 hotels, motels, camps and private homes rented for brief stays. 672 Sec. 31. (NEW) (Effective from passage) (a) On and after one hundred eighty days 673 after the effective date of this section, the provisions of this section shall apply to 674 any housing governed by the federal Quality Housing and Work and 675 Responsibility Act of 1998 or any housing governed by any other provisions of 676 federal law that grants persons or entities that own or manage federally assisted 677 housing the discretion to deny persons housing to or evict persons from housing 678 on the basis of drug-related offenses. 679 (b) It shall be unlawful to refuse to rent, lease, license or otherwise make 680 unavailable any unit of housing subject to the provisions of this section on the basis 681 of a person's charge or arrest for a cannabis-related offense, without conviction or 682 other substantial independent and relevant evidence based on actual conduct. 683 (c) All persons or entities that own, manage or otherwise regulate housing 684 subject to the provisions of this section shall provide written notification of any 685 denial of housing or any eviction on the basis of the lawful cultivation, possession 686 or use of cannabis or other cannabis-related offense to the Cannabis Control 687 Commission and the Office of Justice Reinvestment. Such written notice shall 688 provide, with specificity, the name and address of the affected person, the race and 689 ethnicity of the affected person, the gender of the affected person, the persons with 690 knowledge and decision-making authority regarding the denial or eviction, the 691 specific circumstances of the denial or eviction and the specific reasons, facts and 692 evidence for the denial or eviction. Notice shall be issued to the Office of the 693 Attorney General not more than seven days after the denial or issuance of a notice 694 of eviction. 695 Raised Bill No. 6377 LCO No. 2856 23 of 24 (d) The Office of Attorney General shall conduct periodic disparate racial 696 impact reviews of denials and evictions for cannabis-related reasons under Title 697 VI of the federal Civil Rights Act of 1964, at its discretion, but not less than once 698 every two years. Should any such review identify any pattern of disparate racial 699 impact or intentional discrimination in the provision or retention of federally 700 assisted housing on the basis of lawful cannabis activity, the Office of the Attorney 701 General shall promptly undertake, upon the recommendation of the Cannabis 702 Control Commission, or on its own initiative, such remedial and corrective 703 measures as it deems reasonable, including seeking equitable and injunctive relief 704 and imposing civil penalties not to exceed one hundred thousand dollars for each 705 instance of a policy or practice that creates a disparate racial impact in the 706 provision or retention of housing covered by this section. 707 Sec. 32. (NEW) (Effective from passage) No part of sections X to XX of this act shall 708 be interpreted to infringe on tribal sovereignty to establish laws, regulations or 709 ordinances or govern and regulate matters of public policy within the boundaries 710 of tribal jurisdiction. Lawful cannabis operations certified by the tribes shall be 711 considered licensed entities for the purpose of commerce between tribal cannabis 712 businesses and licensed cannabis businesses in this state. 713 Sec. 33. (NEW) (Effective from passage) If any part of sections X to XX, inclusive, 714 of this act or any regulations adopted pursuant to said sections, or the application 715 of said sections or regulations to any person or circumstance is held invalid, such 716 invalidity shall not affect any other parts of said sections or regulations, or 717 applications of said sections or regulations, which can be given effect without the 718 invalid part or application. 719 This act shall take effect as follows and shall amend the following sections: Section 1 from passage New section Sec. 2 from passage New section Sec. 3 from passage New section Sec. 4 from passage New section Sec. 5 from passage New section Sec. 6 from passage New section Sec. 7 from passage New section Sec. 8 from passage New section Raised Bill No. 6377 LCO No. 2856 24 of 24 Sec. 9 from passage New section Sec. 10 from passage New section Sec. 11 from passage New section Sec. 12 from passage New section Sec. 13 from passage New section Sec. 14 from passage New section Sec. 15 from passage New section Sec. 16 from passage New section Sec. 17 from passage New section Sec. 18 from passage New section Sec. 19 from passage New section Sec. 20 from passage New section Sec. 21 from passage New section Sec. 22 from passage New section Sec. 23 from passage New section Sec. 24 from passage New section Sec. 25 from passage New section Sec. 26 from passage New section Sec. 27 from passage New section Sec. 28 from passage New section Sec. 29 from passage New section Sec. 30 from passage New section Sec. 31 from passage New section Sec. 32 from passage New section Sec. 33 from passage New section Statement of Purpose: To require labor peace agreements for the cannabis industry and to ensure a modern and equitable cannabis workforce. [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.]