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General Assembly Raised Bill No. 5329
February Session, 2022
LCO No. 2242
Referred to Committee on GENERAL LAW
Introduced by:
(GL)
AN ACT CONCERNING CANNABIS TRANSFERS, CANNABIS
ADVERTISEMENTS AND RECOMMENDATIONS BY THE SOCIAL
EQUITY COUNCIL CONCERNING CANNABIS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 21a-420 of the 2022 supplement to the general 1
statutes is repealed and the following is substituted in lieu thereof 2
(Effective July 1, 2022): 3
As used in RERACA, unless the context otherwise requires: 4
(1) "Responsible and Equitable Regulation of Adult-Use Cannabis 5
Act" or "RERACA" means this section, sections 2-56j, 7-294kk, 7-294ll, 6
12-330ll to 12-330nn, inclusive, 14-227p, 21a-278b, 21a-278c, 21a-279c, 7
21a-279d, 21a-420a to 21a-420i, inclusive, 21a-420l to 21a-421r, inclusive, 8
21a-421aa to 21a-421ff, inclusive, 21a-421aaa to 21a-421ggg, inclusive, 9
21a-422 to 21a-422c, inclusive, 21a-422e to 21a-422g, inclusive, 21a-422j 10
to 21a-422s, inclusive, 22-61n, 23-4b, 47a-9a, 53-247a, 53a-213a, 53a-213b, 11
54-33p, 54-56q, 54-56r, 54-125k and 54-142u, sections 23, 60, 63 to 65, 12
inclusive, 124, 144 and 165 of public act 21-1 of the June special session 13
and the amendments in public act 21-1 of the June special session to 14 Raised Bill No. 5329
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sections 7-148, 10-221, 12-30a, 12-35b, 12-412, 12-650, 12-704d, 14-44k, 14-15
111e, 14-227a to 14-227c, inclusive, 14-227j, 15-140q, 15-140r, 18-100h, 16
19a-342, 19a-342a, 21a-267, 21a-277, 21a-279, 21a-279a, 21a-408 to 21a-17
408f, inclusive, 21a-408h to 21a-408p, inclusive, 21a-408r to 21a-408v, 18
inclusive, 30-89a, 31-40q, 32-39, 46b-120, 51-164n, 53-394, 53a-39c, 54-1m, 19
54-33g, 54-41b, 54-56e, 54-56g, 54-56i, 54-56k, 54-56n, 54-63d, 54-66a and 20
54-142e and section 2 of this act; 21
(2) "Backer" means any individual with a direct or indirect financial 22
interest in a cannabis establishment. "Backer" does not include an 23
individual with an investment interest in a cannabis establishment if (A) 24
the interest held by such individual and such individual's spouse, 25
parent or child, in the aggregate, does not exceed five per cent of the 26
total ownership or interest rights in such cannabis establishment, and 27
(B) such individual does not participate directly or indirectly in the 28
control, management or operation of the cannabis establishment; 29
(3) "Cannabis" means marijuana, as defined in section 21a-240; 30
(4) "Cannabis establishment" means a producer, dispensary facility, 31
cultivator, micro-cultivator, retailer, hybrid retailer, food and beverage 32
manufacturer, product manufacturer, product packager, delivery 33
service or transporter; 34
(5) "Cannabis flower" means the flower, including abnormal and 35
immature flowers, of a plant of the genus cannabis that has been 36
harvested, dried and cured, and prior to any processing whereby the 37
flower material is transformed into a cannabis product. "Cannabis 38
flower" does not include (A) the leaves or stem of such plant, or (B) 39
hemp, as defined in section 22-61l; 40
(6) "Cannabis trim" means all parts, including abnormal or immature 41
parts, of a plant of the genus cannabis, other than cannabis flower, that 42
have been harvested, dried and cured, and prior to any processing 43
whereby the plant material is transformed into a cannabis product. 44
"Cannabis trim" does not include hemp, as defined in section 22-61l; 45 Raised Bill No. 5329
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(7) "Cannabis product" means cannabis that is in the form of a 46
cannabis concentrate or a product that contains cannabis, which may be 47
combined with other ingredients, and is intended for use or 48
consumption. "Cannabis product" does not include the raw cannabis 49
plant; 50
(8) "Cannabis concentrate" means any form of concentration, 51
including, but not limited to, extracts, oils, tinctures, shatter and waxes, 52
that is extracted from cannabis; 53
(9) "Cannabis-type substances" have the same mea ning as 54
"marijuana", as defined in section 21a-240; 55
(10) "Commissioner" means the Commissioner of Consumer 56
Protection and includes any designee of the commissioner; 57
(11) "Consumer" means an individual who is twenty-one years of age 58
or older; 59
(12) "Cultivation" has the same meaning as provided in section 21a-60
408; 61
(13) "Cultivator" means a person that is licensed to engage in the 62
cultivation, growing and propagation of the cannabis plant at an 63
establishment with not less than fifteen thousand square feet of grow 64
space; 65
(14) "Delivery service" means a person that is licensed to deliver 66
cannabis from (A) micro-cultivators, retailers and hybrid retailers to 67
consumers and research program subjects, and (B) hybrid retailers and 68
dispensary facilities to qualifying patients, caregivers and research 69
program subjects, as defined in section 21a-408, or to hospices or other 70
inpatient care facilities licensed by the Department of Public Health 71
pursuant to chapter 368v that have a protocol for the handling and 72
distribution of cannabis that has been approved by the department, or a 73
combination thereof; 74
(15) "Department" means the Department of Consumer Protection; 75 Raised Bill No. 5329
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(16) "Dispensary facility" means a place of business where cannabis 76
may be dispensed, sold or distributed in accordance with chapter 420f 77
and any regulations adopted thereunder, to qualifying patients and 78
caregivers, and to which the department has issued a dispensary facility 79
license under chapter 420f and any regulations adopted thereunder; 80
(17) "Disproportionately impacted area" means a United States 81
census tract in the state that has, as determined by the Social Equity 82
Council under section 21a-420d, as amended by this act, (A) a historical 83
conviction rate for drug-related offenses greater than one-tenth, or (B) 84
an unemployment rate greater than ten per cent; 85
(18) "Disqualifying conviction" means a conviction within the last ten 86
years which has not been the subject of an absolute pardon under the 87
provisions of section 54-130a, or an equivalent pardon process under the 88
laws of another state or the federal government, for an offense under (A) 89
section 53a-276, 53a-277 or 53a-278; (B) section 53a-291, 53a-292 or 53a-90
293; (C) section 53a-215; (D) section 53a-138 or 53a-139; (E) section 53a-91
142a; (F) sections 53a-147 to 53a-162, inclusive; (G) sections 53a-125c to 92
53a-125f, inclusive; (H) section 53a-129b, 53a-129c or 53a-129d; (I) 93
subsection (b) of section 12-737; (J) section 53a-48 or 53a-49, if the offense 94
which is attempted or is an object of the conspiracy is an offense under 95
the statutes listed in subparagraphs (A) to (I), inclusive, of this 96
subdivision; or (K) the law of any other state or of the federal 97
government, if the offense on which such conviction is based is defined 98
by elements that substantially include the elements of an offense under 99
the statutes listed in subparagraphs (A) to (J), inclusive, of this 100
subdivision; 101
(19) "Dispensary technician" means an individual who has had an 102
active pharmacy technician or dispensary technician registration in this 103
state within the past five years, is affiliated with a dispensary facility or 104
hybrid retailer and is registered with the department in accordance with 105
chapter 420f and any regulations adopted thereunder; 106
(20) "Employee" means any person who is not a backer, but is a 107 Raised Bill No. 5329
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member of the board of a company with an ownership interest in a 108
cannabis establishment, and any person employed by a cannabis 109
establishment or who otherwise has access to such establishment or the 110
vehicles used to transport cannabis, including, but not limited to, an 111
independent contractor who has routine access to the premises of such 112
establishment or to the cannabis handled by such establishment; 113
(21) "Equity" and "equitable" means efforts, regulations, policies, 114
programs, standards, processes and any other functions of government 115
or principles of law and governance intended to: (A) Identify and 116
remedy past and present patterns of discrimination and disparities of 117
race, ethnicity, gender and sexual orientation; (B) ensure that such 118
patterns of discrimination and disparities, whether intentional or 119
unintentional, are neither reinforced nor perpetuated; and (C) prevent 120
the emergence and persistence of foreseeable future patterns of 121
discrimination or disparities of race, ethnicity, gender, and sexual 122
orientation; 123
(22) "Equity joint venture" means a business entity that is at least fifty 124
per cent owned and controlled by an individual or individuals, or such 125
applicant is an individual, who meets the criteria of subparagraphs (A) 126
and (B) of subdivision (48) of this section; 127
(23) "Extract" means the preparation, compounding, conversion or 128
processing of cannabis, either directly or indirectly by extraction or 129
independently by means of chemical synthesis, or by a combination of 130
extraction and chemical synthesis to produce a cannabis concentrate; 131
(24) "Financial interest" means any right to, ownership, an investment 132
or a compensation arrangement with another person, directly, through 133
business, investment or family. "Financial interest" does not include 134
ownership of investment securities in a publicly-held corporation that 135
is traded on a national exchange or over-the-counter market, provided 136
the investment securities held by such person and such person's spouse, 137
parent or child, in the aggregate, do not exceed one-half of one per cent 138
of the total number of shares issued by the corporation; 139 Raised Bill No. 5329
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(25) "Food and beverage manufacturer" means a person that is 140
licensed to own and operate a place of business that acquires cannabis 141
and creates food and beverages; 142
(26) "Grow space" means the portion of a premises owned and 143
controlled by a producer, cultivator or micro-cultivator that is utilized 144
for the cultivation, growing or propagation of the cannabis plant, and 145
contains cannabis plants in an active stage of growth, measured starting 146
from the outermost wall of the room containing cannabis plants and 147
continuing around the outside of the room. "Grow space" does not 148
include space used to cure, process, store harvested cannabis or 149
manufacture cannabis once the cannabis has been harvested; 150
(27) "Historical conviction count for drug-related offenses" means, for 151
a given area, the number of convictions of residents of such area (A) for 152
violations of sections 21a-267, 21a-277, 21a-278, 21a-279 and 21a-279a, 153
and (B) who were arrested for such violations between January 1, 1982, 154
and December 31, 2020, inclusive, where such arrest was recorded in 155
databases maintained by the Department of Emergency Services and 156
Public Protection; 157
(28) "Historical conviction rate for drug-related offenses" means, for 158
a given area, the historical conviction count for drug-related offenses 159
divided by the population of such area, as determined by the five-year 160
estimates of the most recent American Community Survey conducted 161
by the United States Census Bureau; 162
(29) "Hybrid retailer" means a person that is licensed to purchase 163
cannabis and sell cannabis and medical marijuana products; 164
(30) "Key employee" means an employee with the following 165
management position or an equivalent title within a cannabis 166
establishment: (A) President or chief officer, who is the top ranking 167
individual at the cannabis establishment and is responsible for all staff 168
and overall direction of business operations; (B) financial manager, who 169
is the individual who reports to the president or chief officer and who is 170
generally responsible for oversight of the financial operations of the 171 Raised Bill No. 5329
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cannabis establishment, including, but not limited to, revenue 172
generation, distributions, tax compliance and budget implementation; 173
or (C) compliance manager, who is the individual who reports to the 174
president or chief officer and who is generally responsible for ensuring 175
the cannabis establishment complies with all laws, regulations and 176
requirements related to the operation of the cannabis establishment; 177
(31) "Laboratory" means a laboratory located in the state that is 178
licensed by the department to provide analysis of cannabis that meets 179
the licensure requirements set forth in section 21a-246; 180
(32) "Laboratory employee" means an individual who is registered as 181
a laboratory employee pursuant to section 21a-408r; 182
(33) "Labor peace agreement" means an agreement between a 183
cannabis establishment and a bona fide labor organization under section 184
21a-421d pursuant to which the owners and management of the 185
cannabis establishment agree not to lock out employees and that 186
prohibits the bona fide labor organization from engaging in picketing, 187
work stoppages or boycotts against the cannabis establishment; 188
(34) "Manufacture" means to add or incorporate cannabis into other 189
products or ingredients or create a cannabis product; 190
(35) "Medical marijuana product" means cannabis that may be 191
exclusively sold to qualifying patients and caregivers by dispensary 192
facilities and hybrid retailers and which are designated by the 193
commissioner as reserved for sale to qualifying patients and caregivers 194
and published on the department's Internet web site; 195
(36) "Micro-cultivator" means a person licensed to engage in the 196
cultivation, growing and propagation of the cannabis plant at an 197
establishment containing not less than two thousand square feet and not 198
more than ten thousand square feet of grow space, prior to any 199
expansion authorized by the commissioner; 200
(37) "Municipality" means any town, city or borough, consolidated 201 Raised Bill No. 5329
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town and city or consolidated town and borough; 202
(38) "Paraphernalia" means drug paraphernalia, as defined in section 203
21a-240; 204
(39) "Person" means an individual, partnership, limited liability 205
company, society, association, joint stock company, corporation, estate, 206
receiver, trustee, assignee, referee or any other legal entity and any other 207
person acting in a fiduciary or representative capacity, whether 208
appointed by a court or otherwise, and any combination thereof; 209
(40) "Producer" means a person that is licensed as a producer 210
pursuant to section 21a-408i and any regulations adopted thereunder; 211
(41) "Product manufacturer" means a person that is licensed to obtain 212
cannabis, extract and manufacture products exclusive to such license 213
type; 214
(42) "Product packager" means a person that is licensed to package 215
and label cannabis; 216
(43) "Qualifying patient" has the same meaning as provided in section 217
21a-408; 218
(44) "Research program" has the same meaning as provided in section 219
21a-408; 220
(45) "Retailer" means a person, excluding a dispensary facility and 221
hybrid retailer, that is licensed to purchase cannabis from producers, 222
cultivators, micro-cultivators, product manufacturers and food and 223
beverage manufacturers and to sell cannabis to consumers and research 224
programs; 225
(46) "Sale" or "sell" has the same meaning as provided in section 21a-226
240; 227
(47) "Social Equity Council" or "council" means the council 228
established under section 21a-420d, as amended by this act; 229 Raised Bill No. 5329
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(48) "Social equity applicant" means a person that has applied for a 230
license for a cannabis establishment, where such applicant is at least 231
sixty-five per cent owned and controlled by an individual or 232
individuals, or such applicant is an individual, who: 233
(A) Had an average household income of less than three hundred per 234
cent of the state median household income over the three tax years 235
immediately preceding such individual's application; and 236
(B) (i) Was a resident of a disproportionately impacted area for not 237
less than five of the ten years immediately preceding the date of such 238
application; or 239
(ii) Was a resident of a disproportionately impacted area for not less 240
than nine years prior to attaining the age of eighteen; 241
(49) "THC" has the same meaning as provided in section 21a-240; 242
(50) "Third-party lottery operator" means a person, or a constituent 243
unit of the state system of higher education, that conducts lotteries 244
pursuant to section 21a-420g, identifies the cannabis establishment 245
license applications for consideration without performing any review of 246
the applications that are identified for consideration, and that has no 247
direct or indirect oversight of or investment in a cannabis establishment 248
or a cannabis establishment applicant; 249
(51) "Transfer" means to transfer, change, give or otherwise dispose 250
of control over or interest in; 251
(52) "Transport" means to physically move from one place to another; 252
(53) "Transporter" means a person licensed to transport cannabis 253
between cannabis establishments, laboratories and research programs; 254
and 255
(54) "Unemployment rate" means, in a given area, the number of 256
people sixteen years of age or older who are in the civilian labor force 257
and unemployed divided by the number of people sixteen years of age 258 Raised Bill No. 5329
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or older who are in the civilian labor force. 259
Sec. 2. (NEW) (Effective July 1, 2022) (a) Notwithstanding any 260
provision of the general statutes, no person shall gift, sell or transfer 261
cannabis to another person: (1) To induce, or in exchange for, any 262
donation for any purpose, including, but not limited to, any charitable 263
donation or any donation made to gain admission to any event; (2) at 264
any location, other than a dispensary facility, retailer or hybrid-retailer, 265
(A) where a consumer may purchase any item other than cannabis, a 266
cannabis product or services related to cannabis, and (B) that requires 267
consideration, including, but not limited to, membership in any club, in 268
order to gain admission to such location; or (3) as part of any giveaway, 269
including, but not limited to, any door prize, goodie bag or swag bag, 270
associated with attendance at any event. 271
(b) Any person who violates the provisions of subsection (a) of this 272
section shall, in addition to any other penalty provided by law, be fined 273
not more than ten thousand dollars or imprisoned not more than one 274
year, or both. 275
Sec. 3. Section 21a-420m of the 2022 supplement to the general 276
statutes is repealed and the following is substituted in lieu thereof 277
(Effective from passage): 278
(a) In order to pay a reduced license expansion authorization fee as 279
described in subsection (b) of section 21a-420l, a producer shall commit 280
to create two equity joint ventures to be approved by the Social Equity 281
Council under section 21a-420d, as amended by this act, and licensed by 282
the department under this section. 283
(b) The equity joint venture shall be in any cannabis establishment 284
licensed business, other than a cultivator license, provided the social 285
equity applicant shall own at least fifty per cent of such business. 286
(c) The producer or social equity applicant of an equity joint venture 287
shall submit an application to the Social Equity Council that may 288
include, but need not be limited to, evidence of business formation, 289 Raised Bill No. 5329
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ownership allocation, terms of ownership and financing and proof of 290
social equity applicant involvement. The producer or social equity 291
applicant of an equity joint venture shall submit to the Social Equity 292
Council information including, but not limited to, the organizing 293
documents of the entity that outline the ownership stake of each backer, 294
initial backer investment and payout information to enable the council 295
to determine the terms of ownership. 296
(d) Upon obtaining the written approval of the Social Equity Council 297
for an equity joint venture, the producer or social equity applicant of the 298
equity joint venture shall apply for a license from the department in the 299
same form as required by all other licensees of the same license type, 300
except that such application shall not be subject to the lottery. 301
(e) A producer, including the backer of such producer, shall not 302
increase its ownership in an equity joint venture in excess of fifty per 303
cent during the seven-year period after a license is issued by the 304
department under this section. 305
(f) Equity joint ventures that share a common producer or producer 306
backer and that are retailers or hybrid retailers shall not be located 307
within twenty miles of another commonly owned equity joint venture. 308
(g) If a producer [had] has paid a reduced conversion fee, as 309
described in subsection (b) of section 21a-420l, and subsequently did not 310
create two equity joint ventures under this section that, not later than 311
fourteen months after the Department of Consumer Protection 312
approved the producer's license expansion application under section 313
21a-420l, each received a final license from the department, the producer 314
shall be liable for the full conversion fee of three million dollars 315
established in section 21a-420l minus such paid reduced conversion fee. 316
(h) No producer that receives from the Department of Consumer 317
Protection license expansion authorization under section 21a-420l shall 318
create more than two equity joint ventures, unless any additional equity 319
joint venture obtains, in conjunction with such producer, a provisional 320
license before the effective date of this section. 321 Raised Bill No. 5329
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Sec. 4. Section 21a-420u of the 2022 supplement to the general statutes 322
is repealed and the following is substituted in lieu thereof (Effective from 323
passage): 324
(a) In order for a dispensary facility to convert its license to a hybrid-325
retailer license, a dispensary facility shall have a workforce 326
development plan that has been approved by the Social Equity Council 327
under section 21a-420d, as amended by this act, and shall either pay the 328
fee of one million dollars established in section 21a-420e or, if such 329
dispensary facility has committed to create one equity joint venture to 330
be approved by the Social Equity Council for ownership purposes under 331
section 21a-420d, as amended by this act, and subsequent to obtaining 332
such approval, approved by the department for licensure under this 333
section, pay a reduced fee of five hundred thousand dollars. 334
(b) Any equity joint venture created under this section shall be 335
created for the development of a cannabis establishment business with 336
a social equity applicant that owns at least fifty per cent of such business 337
and where the dispensary facility owns at most fifty per cent of such 338
business. 339
(c) An equity joint venture applicant shall submit an application to 340
the Social Equity Council that may include, but need not be limited to, 341
evidence of business formation, ownership allocation, terms of 342
ownership and financing and proof of social equity applicant 343
involvement. The dispensary facility or social equity applicant of an 344
equity joint venture shall submit an application to the Social Equity 345
Council that may include, but need not be limited to, evidence of 346
business formation, ownership allocation, terms of ownership and 347
financing and proof of social equity applicant involvement. The 348
dispensary facility or social equity applicant of an equity joint venture 349
shall submit to the Social Equity Council information including, but not 350
limited to, the organizing documents of the entity that outline the 351
ownership stake of each backer, initial backer investment and payout 352
information to enable the council to determine the terms of ownership. 353 Raised Bill No. 5329
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(d) Upon receipt of written approval of the equity joint venture by 354
the Social Equity Council, the dispensary facility or social equity 355
applicant of the equity joint venture shall apply for a license from the 356
department in the same form as required by all other licensees of the 357
same license type and subject to the same fees as required by all other 358
licensees of the same license type. 359
(e) A dispensary facility, including the backers of such dispensary 360
facility, shall not increase its ownership in an equity joint venture in 361
excess of fifty per cent during the seven-year period after a license is 362
issued by the department under this section. 363
(f) Equity joint ventures that are retailers or hybrid retailers that share 364
a common dispensary facility or dispensary facility backer owner shall 365
not be located within twenty miles of another commonly owned equity 366
joint venture. 367
(g) If a dispensary facility has paid the reduced conversion fee, in 368
accordance with subsection (a) of this section, and did not subsequently 369
create one equity joint venture under this section [, the] that, not later 370
than fourteen months after the Department of Consumer Protection 371
approved the dispensary facility's license conversion application under 372
section 21a-420t, receives a final license from the department, the 373
dispensary facility shall be liable for the full conversion fee of one 374
million dollars [,] established [under] in section 21a-420e minus such 375
paid reduced conversion fee. 376
(h) No dispensary facility that receives from the Department of 377
Consumer Protection approval to convert the dispensary facility's 378
license to a hybrid-retailer license under section 21a-420t shall create 379
more than two equity joint ventures, unless any additional equity joint 380
venture obtains, in conjunction with such dispensary facility, a 381
provisional license before the effective date of this section. 382
Sec. 5. Subsection (k) of section 21a-420d of the 2022 supplement to 383
the general statutes is repealed and the following is substituted in lieu 384
thereof (Effective from passage): 385 Raised Bill No. 5329
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(k) The council shall develop criteria for evaluating the ownership 386
and control of any equity joint venture created under section 21a-420m, 387
as amended by this act, or 21a-420u, as amended by this act, and shall 388
review and approve or deny in writing such equity joint venture prior 389
to such equity joint venture being licensed under section 21a-420m, as 390
amended by this act, or 21a-420u, as amended by this act. After 391
developing criteria for social equity plans as described in subdivision 392
(5) of subsection (h) of this section, the council shall review and approve 393
or deny in writing any such plan submitted by a cannabis establishment 394
as part of its final license application. The council shall not approve any 395
equity joint venture that shares the same social equity applicant with 396
another equity joint venture. 397
Sec. 6. Section 21a-421bb of the 2022 supplement to the general 398
statutes is repealed and the following is substituted in lieu thereof 399
(Effective October 1, 2022): 400
(a) [Cannabis] Except as provided in subsection (c) of this section, 401
cannabis establishments and any person advertising any cannabis or 402
services related to cannabis shall not: 403
(1) Advertise, including, but not limited to, through a business name 404
or logo, cannabis, cannabis paraphernalia or goods or services related to 405
cannabis in ways that target or are designed to appeal to individuals 406
under twenty-one years of age, including, but not limited to, 407
spokespersons or celebrities who appeal to individuals under the legal 408
age to purchase cannabis or cannabis products, depictions of a person 409
under twenty-five years of age consuming cannabis, or, the inclusion of 410
objects, such as toys, characters or cartoon characters suggesting the 411
presence of a person under twenty-one years of age, or any other 412
depiction designed in any manner to be appealing to a person under 413
twenty-one years of age; 414
(2) Engage in advertising by means of any billboard; 415
[(2)] (3) Engage in advertising by means of any television, radio, 416
Internet, mobile [applications] application, social media [,] or other 417 Raised Bill No. 5329
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electronic communication, [billboard or other] outdoor signage [,] or 418
print publication unless the advertiser has reliable evidence that at least 419
ninety per cent of the audience for the [advertisement] advertising is 420
reasonably expected to be twenty-one years of age or older; 421
[(3)] (4) Engage in advertising or marketing directed toward location-422
based devices, including, but not limited to, cellular phones, unless the 423
marketing is a mobile device application installed on the device by the 424
owner of the device who is twenty-one years of age or older and 425
includes a permanent and easy opt-out feature and warnings that the 426
use of cannabis is restricted to persons twenty-one years of age or older; 427
[(4)] (5) Advertise cannabis or cannabis products in a manner 428
claiming or implying, or permit any employee of the cannabis 429
establishment to claim or imply, that such products have curative or 430
therapeutic effects, or that any other medical claim is true, or allow any 431
employee to promote cannabis for a wellness purpose unless such 432
claims are substantiated as set forth in regulations adopted under 433
chapter 420f or verbally conveyed by a licensed pharmacist or other 434
licensed medical practitioner in the course of business in, or while 435
representing, a hybrid retail or dispensary facility; 436
[(5)] (6) Sponsor charitable, sports, musical, artistic, cultural, social or 437
other similar events or advertising at, or in connection with, such an 438
event unless the sponsor or advertiser has reliable evidence that (A) not 439
more than ten per cent of the in-person audience at the event is 440
reasonably expected to be under the legal age to purchase cannabis or 441
cannabis products, and (B) not more than ten per cent of the audience 442
that will watch, listen or participate in the event is expected to be under 443
the legal age to purchase cannabis products; 444
[(6)] (7) Advertise cannabis, cannabis products or cannabis 445
paraphernalia in any physical form visible to the public within five 446
hundred feet of an elementary or secondary school ground, recreation 447
center or facility, child care center, playground, public park or library; 448
[(7)] (8) Cultivate cannabis or manufacture cannabis products for 449 Raised Bill No. 5329
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distribution outside of this state in violation of federal law, advertise in 450
any way that encourages the transportation of cannabis across state lines 451
or otherwise encourages illegal activity; 452
[(8)] (9) Except for dispensary facilities and hybrid retailers, exhibit 453
within or upon the outside of the facility used in the operation of a 454
cannabis establishment, or include in any advertisement, the word 455
"dispensary" or any variation of such term or any other words, displays 456
or symbols indicating that such store, shop or place of business is a 457
dispensary; 458
[(9)] (10) Exhibit within or upon the outside of the premises subject to 459
the cannabis establishment license, or include in any advertisement the 460
words "drug store", "pharmacy", "apothecary", "drug", "drugs" or 461
"medicine shop" or any combination of such terms or any other words, 462
displays or symbols indicating that such store, shop or place of business 463
is a pharmacy; 464
[(10)] (11) Advertise on or in public or private vehicles or at bus stops, 465
taxi stands, transportation waiting areas, train stations, airports or other 466
similar transportation venues including, but not limited to, vinyl-467
wrapped vehicles or signs or logos on transportation vehicles not 468
owned by a cannabis establishment; 469
[(11)] (12) Display cannabis or cannabis products so as to be clearly 470
visible to a person from the exterior of the facility used in the operation 471
of a cannabis establishment, or display signs or other printed material 472
advertising any brand or any kind of cannabis or cannabis product on 473
the exterior of any facility used in the operation of a cannabis 474
establishment; 475
[(12)] (13) Utilize radio or loudspeaker, in a vehicle or in or outside of 476
a facility used in the operation of a cannabis establishment, for the 477
purposes of advertising the sale of cannabis or cannabis products; or 478
[(13)] (14) Operate any web site advertising or depicting cannabis, 479
cannabis products or cannabis paraphernalia unless such web site 480 Raised Bill No. 5329
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verifies that the entrants or users are twenty-one years of age or older. 481
(b) [Any] Except as provided in subsection (c) of this section, any 482
advertisements from a cannabis establishment shall contain the 483
following warning: "Do not use cannabis if you are under twenty-one 484
years of age. Keep cannabis out of the reach of children." In a print or 485
visual medium, such warning shall be conspicuous, easily legible and 486
shall take up not less than ten per cent of the advertisement space. In an 487
audio medium, such warning shall be at the same speed as the rest of 488
the advertisement and be easily intelligible. 489
(c) Any outdoor signage, other than a billboard and including, but 490
not limited to, any monument sign, pylon sign or wayfinding sign, shall 491
be deemed to satisfy the audience requirement established in 492
subdivision (1) of subsection (a) of this section, and shall not be required 493
to contain the warning required under subsection (b) of this section, if 494
such outdoor signage: 495
(1) Contains only the name and logo of: 496
(A) A cannabis establishment; or 497
(B) Any business entity advertising (i) cannabis paraphernalia, or (ii) 498
goods or services related to a cannabis business; 499
(2) Is comprised of not more than three colors; and 500
(3) Is located: 501
(A) On the cannabis establishment's or such business entity's 502
premises, regardless of whether such cannabis establishment or 503
business entity leases or owns such premises; or 504
(B) On any commercial property occupied by multiple tenants 505
including such cannabis establishment or business entity. 506
[(c)] (d) The department shall not register, and may require revision 507
of, any submitted or registered cannabis brand name that: 508 Raised Bill No. 5329
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(1) Is identical to, or confusingly similar to, the name of an existing 509
non-cannabis product; 510
(2) Is identical to, or confusingly similar to, the name of an unlawful 511
product or substance; 512
(3) Is confusingly similar to the name of a previously approved 513
cannabis brand name; 514
(4) Is obscene or indecent; and 515
(5) Is customarily associated with persons under the age of twenty-516
one. 517
[(d)] (e) A violation of the provisions of subsection (a) or (b) of this 518
section shall be deemed to be an unfair or deceptive trade practice under 519
subsection (a) of section 42-110b. 520
Sec. 7. Section 21a-422f of the 2022 supplement to the general statutes 521
is repealed and the following is substituted in lieu thereof (Effective from 522
passage): 523
(a) As used in this section, "municipality" means any town, city or 524
borough, consolidated town and city or consolidated town and 525
borough, and a district establishing a zoning commission under section 526
7-326. 527
(b) Any municipality may, by amendment to such municipality's 528
zoning regulations or by local ordinance, (1) prohibit the establishment 529
of a cannabis establishment, (2) establish reasonable restrictions 530
regarding the hours and signage within the limits of such municipality, 531
or (3) establish restrictions on the proximity of cannabis establishments 532
to any of the establishments listed in subdivision (1) of subsection (a) of 533
section 30-46. The chief zoning official of a municipality shall report, in 534
writing, any zoning changes adopted by the municipality regarding 535
cannabis establishments pursuant to this subsection to the Secretary of 536
the Office of Policy and Management and to the department not later 537
than fourteen days after the adoption of such changes. 538 Raised Bill No. 5329
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(c) Unless otherwise provided for by a municipality through its 539
zoning regulations or ordinances, a cannabis establishment shall be 540
zoned as if for any other similar use, other than a cannabis 541
establishment, would be zoned. 542
(d) Any restriction regarding hours, zoning and signage of a cannabis 543
establishment adopted by a municipality shall not apply to an existing 544
cannabis establishment located in such municipality if such cannabis 545
establishment does not convert to a different license type, for a period 546
of five years after the adoption of such prohibition or restriction. 547
[(e) Until June 30, 2024, no municipality shall grant zoning approval 548
for more retailers or micro-cultivators than a number that would allow 549
for one retailer and one micro-cultivator for every twenty-five thousand 550
residents of such municipality, as determined by the most recent 551
decennial census.] 552
[(f)] (e) On and after July 1, 2024, the Commissioner of Consumer 553
Protection may, in the discretion of the commissioner, post on the 554
Department of Consumer Protection's Internet web site a specific 555
number of residents such that no municipality shall grant zoning 556
approval for more retailers or micro-cultivators than would result in one 557
retailer and one micro-cultivator for every such specific number of 558
residents, as determined by the commissioner. Any such determination 559
shall be made to ensure reasonable access to cannabis by consumers. 560
[(g)] (f) For purposes of ensuring compliance with this section, a 561
special permit or other affirmative approval shall be required for any 562
retailer or micro-cultivator seeking to be located within a municipality. 563
A municipality shall not grant such special permit or approval for any 564
retailer or micro-cultivator applying for such special permit or approval 565
if that would result in an amount that (1) until June 30, 2024, exceeds the 566
density cap of one retailer and one micro-cultivator for every twenty-567
five thousand residents, and (2) on and after July 1, 2024, exceeds any 568
density cap determined by the commissioner under subsection [(f)] (e) 569
of this section. When awarding final licenses for a retailer or micro-570 Raised Bill No. 5329
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cultivator, the Department of Consumer Protection may assume that, if 571
an applicant for such final license has obtained zoning approval, the 572
approval of a final license for such applicant shall not result in a 573
violation of this section or any other municipal restrictions on the 574
number or density of cannabis establishments. 575
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2022 21a-420
Sec. 2 July 1, 2022 New section
Sec. 3 from passage 21a-420m
Sec. 4 from passage 21a-420u
Sec. 5 from passage 21a-420d(k)
Sec. 6 October 1, 2022 21a-421bb
Sec. 7 from passage 21a-422f
Statement of Purpose:
To: (1) Impose additional limitations on the manner in which cannabis
may be gifted, sold or transferred; (2) impose additional penalties for
prohibited gifts, sales and transfers of cannabis; (3) specify that a
producer (A) shall be liable for the remainder of the full conversion fee
if the producer fails to create two equity joint ventures that receive a
final license within a specified time frame, and (B) that receives license
expansion authorization shall not create more than two equity joint
ventures; (4) specify that a dispensary facility (A) shall be liable for the
remainder of the full conversion fee if the dispensary facility fails to
create two equity joint ventures that each receive a final license within a
specified time frame, and (B) that converts its license to a hybrid-retailer
license shall not create more than two equity joint ventures; (5) provide
that the Social Equity Council shall not approve any equity joint venture
that shares the same social equity applicant with another equity joint
venture; (6) ban cannabis billboard advertisements; (7) modify certain
provisions concerning advertisements by cannabis establishments and
related businesses; and (8) eliminate a provision that prohibits a
municipality from granting zoning approval for more retailers or micro-
cultivators than a number that would allow for one retailer and one
micro-cultivator for every twenty-five thousand residents of the
municipality. Raised Bill No. 5329
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[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.]