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General Assembly Raised Bill No. 6700
January Session, 2023
LCO No. 4434
Referred to Committee on GENERAL LAW
Introduced by:
(GL)
AN ACT CONCERNING HEMP LICENSEES AND THE ADULT -USE
CANNABIS MARKET.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 21a-420 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2023): 2
As used in RERACA, unless the context otherwise requires: 3
(1) "Responsible and Equitable Regulation of Adult-Use Cannabis 4
Act" or "RERACA" means this section, sections 2-56j, 7-294kk, 7-294ll, 5
12-330ll to 12-330nn, inclusive, 14-227p, 21a-278b, as amended by this 6
act, 21a-278c, 21a-279c, 21a-279d, 21a-420a to 21a-420i, inclusive, 21a-7
420l to 21a-421r, inclusive, 21a-421aa to 21a-421ff, inclusive, 21a-421aaa 8
to 21a-421ggg, inclusive, 21a-422 to 21a-422c, inclusive, 21a-422e to 21a-9
422g, inclusive, 21a-422j to 21a-422s, inclusive, 22-61n, as amended by 10
this act, 23-4b, 47a-9a, 53-247a, 53a-213a, 53a-213b, 54-33p, 54-56q, 54-11
56r, 54-125k and 54-142u, sections 23, 60, 63 to 65, inclusive, 124, 144 and 12
165 of public act 21-1 of the June special session and the amendments in 13
public act 21-1 of the June special session to sections 7-148, 10-221, 12-14
30a, 12-35b, 12-412, 12-650, 12-704d, 14-44k, 14-111e, 14-227a to 14-227c, 15
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inclusive, 14-227j, 15-140q, 15-140r, 18-100h, 19a-342, 19a-342a, 21a-267, 16
21a-277, 21a-279, 21a-279a, 21a-408 to 21a-408f, inclusive, as amended 17
by this act, 21a-408h to 21a-408p, inclusive, as amended by this act, 21a-18
408r to 21a-408v, inclusive, 30-89a, 31-40q, 32-39, 46b-120, 51-164n, 53-19
394, 53a-39c, 54-1m, 54-33g, 54-41b, 54-56e, 54-56g, 54-56i, 54-56k, 54-20
56n, 54-63d, 54-66a, 54-142e, 21a-421hhh, [and] 21a-420j, as amended by 21
this act, and sections 2 and 3 of this act; 22
(2) "Backer" means any individual with a direct or indirect financial 23
interest in a cannabis establishment. "Backer" does not include an 24
individual with an investment interest in a cannabis establishment if (A) 25
the interest held by such individual and such individual's spouse, 26
parent or child, in the aggregate, does not exceed five per cent of the 27
total ownership or interest rights in such cannabis establishment, and 28
(B) such individual does not participate directly or indirectly in the 29
control, management or operation of the cannabis establishment; 30
(3) "Cannabis" means marijuana, as defined in section 21a-240; 31
(4) "Cannabis establishment" means a producer, dispensary facility, 32
cultivator, micro-cultivator, retailer, hybrid retailer, food and beverage 33
manufacturer, product manufacturer, product packager, delivery 34
service or transporter; 35
(5) "Cannabis flower" means the flower, including abnormal and 36
immature flowers, of a plant of the genus cannabis that has been 37
harvested, dried and cured, and prior to any processing whereby the 38
flower material is transformed into a cannabis product. "Cannabis 39
flower" does not include (A) the leaves or stem of such plant, or (B) 40
hemp; [, as defined in section 22-61l;] 41
(6) "Cannabis trim" means all parts, including abnormal or immature 42
parts, of a plant of the genus cannabis, other than cannabis flower, that 43
have been harvested, dried and cured, and prior to any processing 44
whereby the plant material is transformed into a cannabis product. 45
"Cannabis trim" does not include hemp; [, as defined in section 22-61l;] 46
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(7) "Cannabis product" means cannabis that is in the form of a 47
cannabis concentrate or a product that contains cannabis, which may be 48
combined with other ingredients, and is intended for use or 49
consumption. "Cannabis product" does not include the raw cannabis 50
plant; 51
(8) "Cannabis concentrate" means any form of concentration, 52
including, but not limited to, extracts, oils, tinctures, shatter and waxes, 53
that is extracted from cannabis; 54
(9) "Cannabis-type substances" have the same meaning as 55
"marijuana", as defined in section 21a-240; 56
(10) "Commissioner" means the Commissioner of C onsumer 57
Protection and includes any designee of the commissioner; 58
(11) "Consumer" means an individual who is twenty-one years of age 59
or older; 60
(12) "Cultivation" has the same meaning as provided in section 21a-61
408, as amended by this act; 62
(13) "Cultivator" means a person that is licensed to engage in the 63
cultivation, growing and propagation of the cannabis plant at an 64
establishment with not less than fifteen thousand square feet of grow 65
space; 66
(14) "Delivery service" means a person that is licensed to deliver 67
cannabis from (A) micro-cultivators, retailers and hybrid retailers to 68
consumers and research program subjects, and (B) hybrid retailers and 69
dispensary facilities to qualifying patients, caregivers and research 70
program subjects, as defined in section 21a-408, as amended by this act, 71
or to hospices or other inpatient care facilities licensed by the 72
Department of Public Health pursuant to chapter 368v that have a 73
protocol for the handling and distribution of cannabis that has been 74
approved by the department, or a combination thereof; 75
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(15) "Department" means the Department of Consumer Protection; 76
(16) "Dispensary facility" means a place of business where cannabis 77
may be dispensed, sold or distributed in accordance with chapter 420f 78
and any regulations adopted [thereunder] pursuant to said chapter, to 79
qualifying patients and caregivers, and to which the department has 80
issued a dispensary facility license [under] pursuant to chapter 420f and 81
any regulations adopted [thereunder] pursuant to said chapter; 82
(17) "Disproportionately impacted area" means a United States 83
census tract in the state that has, as determined by the Social Equity 84
Council under section 21a-420d, as amended by this act, (A) a historical 85
conviction rate for drug-related offenses greater than one-tenth, or (B) 86
an unemployment rate greater than ten per cent; 87
(18) "Disqualifying conviction" means a conviction within the last ten 88
years which has not been the subject of an absolute pardon under the 89
provisions of section 54-130a, or an equivalent pardon process under the 90
laws of another state or the federal government, for an offense under (A) 91
section 53a-276, 53a-277 or 53a-278; (B) section 53a-291, 53a-292 or 53a-92
293; (C) section 53a-215; (D) section 53a-138 or 53a-139; (E) section 53a-93
142a; (F) sections 53a-147 to 53a-162, inclusive; (G) sections 53a-125c to 94
53a-125f, inclusive; (H) section 53a-129b, 53a-129c or 53a-129d; (I) 95
subsection (b) of section 12-737; (J) section 53a-48 or 53a-49, if the offense 96
which is attempted or is an object of the conspiracy is an offense under 97
the statutes listed in subparagraphs (A) to (I), inclusive, of this 98
subdivision; or (K) the law of any other state or of the federal 99
government, if the offense on which such conviction is based is defined 100
by elements that substantially include the elements of an offense under 101
the statutes listed in subparagraphs (A) to (J), inclusive, of this 102
subdivision; 103
(19) "Dispensary technician" means an individual who has had an 104
active pharmacy technician or dispensary technician registration in this 105
state within the past five years, is affiliated with a dispensary facility or 106
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hybrid retailer and is registered with the department in accordance with 107
chapter 420f and any regulations adopted [thereunder] pursuant to said 108
chapter; 109
(20) "Employee" means any person who is not a backer, but is a 110
member of the board of a company with an ownership interest in a 111
cannabis establishment, and any person employed by a cannabis 112
establishment or who otherwise has access to such establishment or the 113
vehicles used to transport cannabis, including, but not limited to, an 114
independent contractor who has routine access to the premises of such 115
establishment or to the cannabis handled by such establishment; 116
(21) "Equity" and "equitable" means efforts, regulations, policies, 117
programs, standards, processes and any other functions of government 118
or principles of law and governance intended to: (A) Identify and 119
remedy past and present patterns of discrimination and disparities of 120
race, ethnicity, gender and sexual orientation; (B) ensure that such 121
patterns of discrimination and disparities, whether intentional or 122
unintentional, are neither reinforced nor perpetuated; and (C) prevent 123
the emergence and persistence of foreseeable future patterns of 124
discrimination or disparities of race, ethnicity, gender and sexual 125
orientation; 126
(22) "Equity joint venture" means a business entity that is at least fifty 127
per cent owned and controlled by an individual or individuals, or such 128
applicant is an individual, who meets the criteria of subparagraphs (A) 129
and (B) of subdivision [(48)] (51) of this section; 130
(23) "Extract" means the preparation, compounding, conversion or 131
processing of cannabis, either directly or indirectly by extraction or 132
independently by means of chemical synthesis, or by a combination of 133
extraction and chemical synthesis to produce a cannabis concentrate; 134
(24) "Financial interest" means any right to, ownership, an investment 135
or a compensation arrangement with another person, directly, through 136
business, investment or family. "Financial interest" does not include 137
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ownership of investment securities in a publicly-held corporation that 138
is traded on a national exchange or over-the-counter market, provided 139
the investment securities held by such person and such person's spouse, 140
parent or child, in the aggregate, do not exceed one-half of one per cent 141
of the total number of shares issued by the corporation; 142
(25) "Food and beverage manufacturer" means a person that is 143
licensed to own and operate a place of business that acquires cannabis 144
and creates food and beverages; 145
(26) "Grow space" means the portion of a premises owned and 146
controlled by a producer, cultivator or micro-cultivator that is utilized 147
for the cultivation, growing or propagation of the cannabis plant, and 148
contains cannabis plants in an active stage of growth, measured starting 149
from the outermost wall of the room containing cannabis plants and 150
continuing around the outside of the room. "Grow space" does not 151
include space used to cure, process, store harvested cannabis or 152
manufacture cannabis once the cannabis has been harvested; 153
(27) "Hemp" has the same meaning as provided in section 22-61l; 154
(28) "Hemp producer" means producer, as defined in section 22-61l; 155
[(27)] (29) "Historical conviction count for drug-related offenses" 156
means, for a given area, the number of convictions of residents of such 157
area (A) for violations of sections 21a-267, 21a-277, 21a-278, 21a-279 and 158
21a-279a, and (B) who were arrested for such violations between 159
January 1, 1982, and December 31, 2020, inclusive, where such arrest 160
was recorded in databases maintained by the Department of Emergency 161
Services and Public Protection; 162
[(28)] (30) "Historical conviction rate for drug-related offenses" 163
means, for a given area, the historical conviction count for drug-related 164
offenses divided by the population of such area, as determined by the 165
five-year estimates of the most recent American Community Survey 166
conducted by the United States Census Bureau; 167
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[(29)] (31) "Hybrid retailer" means a person that is licensed to 168
purchase cannabis and sell cannabis and medical marijuana products; 169
[(30)] (32) "Key employee" means an employee with the following 170
management position or an equivalent title within a cannabis 171
establishment: (A) President or chief officer, who is the top ranking 172
individual at the cannabis establishment and is responsible for all staff 173
and overall direction of business operations; (B) financial manager, who 174
is the individual who reports to the president or chief officer and who is 175
generally responsible for oversight of the financial operations of the 176
cannabis establishment, including, but not limited to, revenue 177
generation, distributions, tax compliance and budget implementation; 178
or (C) compliance manager, who is the individual who reports to the 179
president or chief officer and who is generally responsible for ensuring 180
the cannabis establishment complies with all laws, regulations and 181
requirements related to the operation of the cannabis establishment; 182
[(31)] (33) "Laboratory" means a laboratory located in the state that is 183
licensed by the department to provide analysis of cannabis that meets 184
the licensure requirements set forth in section 21a-246; 185
[(32)] (34) "Laboratory employee" means an individual who is 186
registered as a laboratory employee pursuant to section 21a-408r; 187
[(33)] (35) "Labor peace agreement" means an agreement between a 188
cannabis establishment and a bona fide labor organization under section 189
21a-421d pursuant to which the owners and management of the 190
cannabis establishment agree not to lock out employees and that 191
prohibits the bona fide labor organization from engaging in picketing, 192
work stoppages or boycotts against the cannabis establishment; 193
[(34)] (36) "Manufacture" means to add or incorporate cannabis into 194
other products or ingredients or create a cannabis product; 195
(37) "Manufacturer hemp product" has the same meaning as 196
provided in section 22-61l; 197
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[(35)] (38) "Medical marijuana product" means cannabis that may be 198
exclusively sold to qualifying patients and caregivers by dispensary 199
facilities and hybrid retailers and which are designated by the 200
commissioner as reserved for sale to qualifying patients and caregivers 201
and published on the department's Internet web site; 202
[(36)] (39) "Micro-cultivator" means a person licensed to engage in the 203
cultivation, growing and propagation of the cannabis plant at an 204
establishment containing not less than two thousand square feet and not 205
more than ten thousand square feet of grow space, prior to any 206
expansion authorized by the commissioner; 207
[(37)] (40) "Municipality" means any town, city or borough, 208
consolidated town and city or consolidated town and borough; 209
[(38)] (41) "Paraphernalia" means drug paraphernalia, as defined in 210
section 21a-240; 211
[(39)] (42) "Person" means an individual, partnership, limited liability 212
company, society, association, joint stock company, corporation, estate, 213
receiver, trustee, assignee, referee or any other legal entity and any other 214
person acting in a fiduciary or representative capacity, whether 215
appointed by a court or otherwise, and any combination thereof; 216
[(40)] (43) "Producer" means a person that is licensed as a producer 217
pursuant to section 21a-408i and any regulations adopted [thereunder] 218
pursuant to said section; 219
[(41)] (44) "Product manufacturer" means a person that is licensed to 220
obtain cannabis, extract and manufacture products exclusive to such 221
license type; 222
[(42)] (45) "Product packager" means a person that is licensed to 223
package and label cannabis; 224
[(43)] (46) "Qualifying patient" has the same meaning as provided in 225
section 21a-408, as amended by this act; 226
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[(44)] (47) "Research program" has the same meaning as provided in 227
section 21a-408, as amended by this act; 228
[(45)] (48) "Retailer" means a person, excluding a dispensary facility 229
and hybrid retailer, that is licensed to purchase cannabis from 230
producers, cultivators, micro-cultivators, product manufacturers and 231
food and beverage manufacturers and to sell cannabis to consumers and 232
research programs; 233
[(46)] (49) "Sale" or "sell" has the same meaning as provided in section 234
21a-240; 235
[(47)] (50) "Social Equity Council" or "council" means the council 236
established under section 21a-420d, as amended by this act; 237
[(48)] (51) "Social equity applicant" means a person that has applied 238
for a license for a cannabis establishment, where such applicant is at 239
least sixty-five per cent owned and controlled by an individual or 240
individuals, or such applicant is an individual, who: 241
(A) Had an average household income of less than three hundred per 242
cent of the state median household income over the three tax years 243
immediately preceding such individual's application; and 244
(B) (i) Was a resident of a disproportionately impacted area for not 245
less than five of the ten years immediately preceding the date of such 246
application; or 247
(ii) Was a resident of a disproportionately impacted area for not less 248
than nine years prior to attaining the age of eighteen; 249
[(49)] (52) "THC" has the same meaning as provided in section 21a-250
240; 251
[(50)] (53) "Third-party lottery operator" means a person, or a 252
constituent unit of the state system of higher education, that conducts 253
lotteries pursuant to section 21a-420g, identifies the cannabis 254
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establishment license applications for consideration without 255
performing any review of the applications that are identified for 256
consideration, and that has no direct or indirect oversight of or 257
investment in a cannabis establishment or a cannabis establishment 258
applicant; 259
[(51)] (54) "Transfer" means to transfer, change, give or otherwise 260
dispose of control over or interest in; 261
[(52)] (55) "Transport" means to physically move from one place to 262
another; 263
[(53)] (56) "Transporter" means a person licensed to transport 264
cannabis between cannabis establishments, laboratories and research 265
programs; and 266
[(54)] (57) "Unemployment rate" means, in a given area, the number 267
of people sixteen years of age or older who are in the civilian labor force 268
and unemployed divided by the number of people sixteen years of age 269
or older who are in the civilian labor force. 270
Sec. 2. (NEW) (Effective July 1, 2023) (a) During the period beginning 271
October 1, 2023, and ending December 31, 2023, a hemp producer that 272
has been continuously licensed by the Department of Agriculture as a 273
hemp producer for the entirety of the period beginning January 1, 2021, 274
and ending January 1, 2023, may apply to the Department of Consumer 275
Protection for a cultivator license or micro-cultivator license without 276
entering the lottery. Such application shall be in a form and manner 277
prescribed by the Commissioner of Consumer Protection, and shall 278
include: 279
(1) An attestation that the applicant hemp producer has not 280
undergone any change in ownership since January 1, 2023; 281
(2) An acknowledgment and affirmation that prior to being awarded 282
a provisional cultivator or micro-cultivator license, the applicant hemp 283
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producer shall surrender such hemp producer's license as a hemp 284
producer; 285
(3) The attestation required under subsection (a) of section 3 of this 286
act; and 287
(4) Any other item the commissioner deems relevant for the purposes 288
of this section. 289
(b) No cultivator or micro-cultivator licensee shall hold a hemp 290
producer license. Upon surrender of a hemp producer license as set 291
forth in subsection (a) of this section and licensure as a cultivator or 292
micro-cultivator, all hemp inventory in such cultivator or micro-293
cultivator licensee's possession shall be deemed to be cannabis and 294
subject to all cannabis reporting, handling, security, testing and other 295
standards as set forth in applicable law. 296
(c) No hemp producer that converts to a cultivator or micro-cultivator 297
under this section shall add any new owner after such cultivator or 298
micro-cultivator receives a provisional license, except such cultivator or 299
micro-cultivator may add any new owner who meets the criteria 300
established in subparagraphs (A) and (B) of subdivision (51) of section 301
21a-420, as amended by this act, not later than three years after such 302
cultivator or micro-cultivator receives a final license. 303
Sec. 3. (NEW) (Effective July 1, 2023) (a) In order to pay a reduced 304
license fee as described in subdivision (14) or (15) of subsection (d) of 305
section 21a-420e of the general statutes, as amended by this act, a hemp 306
producer that is applying to convert to a cultivator or micro-cultivator 307
under section 2 of this act shall create two equity joint ventures to be 308
approved by the Social Equity Council under section 21a-420d of the 309
general statutes, as amended by this act, and licensed by the department 310
pursuant to this section, which shall be evidenced by filings with the 311
Secretary of the State, organizing documents disclosing the terms of the 312
business relationship between such applicant and such equity joint 313
ventures and an attestation to the creation of such equity joint ventures 314
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on the application submitted pursuant to section 2 of this act. 315
(b) Each equity joint venture created pursuant to subsection (a) of this 316
section shall be in any cannabis establishment licensed business, other 317
than a cultivator or micro-cultivator license, provided such equity joint 318
venture is at least fifty per cent owned and controlled by an individual 319
or individuals who meet, or the equity joint venture applicant is an 320
individual who meets, the criteria established in subparagraphs (A) and 321
(B) of subdivision (51) of section 21a-420 of the general statutes, as 322
amended by this act. 323
(c) Each equity joint venture applicant described in subsection (a) of 324
this section shall submit an application to the Social Equity Council that 325
may include, but need not be limited to, evidence of business formation, 326
ownership allocation, terms of ownership and financing and proof of 327
social equity status. The equity joint venture applicant shall submit to 328
the Social Equity Council information including, but not limited to, the 329
organizing documents of the entity that outline the ownership stake of 330
each backer, initial backer investment and payout information to enable 331
the council to determine the terms of ownership. 332
(d) Upon obtaining the written approval of the Social Equity Council 333
for an equity joint venture described in subsection (a) of this section, the 334
equity joint venture applicant shall apply for a license from the 335
department in the same form as required by all other licensees of the 336
same license type, except that such application shall not be subject to the 337
lottery. 338
(e) A converted hemp producer that receives a license as a cultivator 339
or micro-cultivator under section 2 of this act, including the backers 340
listed on the conversion application of such converted hemp producer, 341
shall not increase its ownership in an equity joint venture in excess of 342
fifty per cent during the seven-year period after a license is issued by 343
the department pursuant to this section. 344
(f) Equity joint ventures that are retailers or hybrid retailers shall not 345
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be located within twenty miles of another equity joint venture that 346
shares a common backer of a cultivator or micro-cultivator that receives 347
a license under section 2 of this act. 348
(g) If a converted hemp producer has paid a reduced conversion fee, 349
as described in subdivision (14) or (15) of subsection (d) of section 21a-350
420e of the general statutes, as amended by this act, and subsequently 351
did not create two equity joint ventures under this section that, not later 352
than fourteen months after the department approved the converted 353
hemp producer's cultivator or micro-cultivator license application 354
under section 2 of this act, each received a final license from the 355
department, such (1) cultivator shall be liable for the full conversion fee 356
of three million dollars established in subdivision (14) of subsection (d) 357
of section 21a-420e of the general statutes, as amended by this act, minus 358
such paid reduced conversion fee, or (2) micro-cultivator shall be liable 359
for the full conversion fee of one million dollars established in 360
subdivision (15) of subsection (d) of section 21a-420e of the general 361
statutes, as amended by this act, minus such paid reduced conversion 362
fee. 363
(h) No cultivator or micro-cultivator that receives a license under 364
section 2 of this act shall create more than two equity joint ventures. No 365
cultivator or micro-cultivator that receives a license under section 2 of 366
this act shall apply for, or create, any additional equity joint venture if 367
such licensee has created two equity joint ventures that have each 368
received a provisional license. 369
(i) An equity joint venture applicant shall pay fifty per cent of the 370
amount of any applicable fee specified in subsection (d) of section 21a-371
420e of the general statutes, as amended by this act, for the first three 372
renewal cycles of the applicable cannabis establishment license applied 373
for, and shall pay the full amount of such fee thereafter. 374
Sec. 4. Subsection (a) of section 21a-278b of the general statutes is 375
repealed and the following is substituted in lieu thereof (Effective July 1, 376
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2023): 377
(a) No person may manufacture, distribute, sell, prescribe, dispense, 378
compound, transport with the intent to sell or dispense, possess with 379
the intent to sell or dispense, offer, give or administer to another person 380
cannabis or cannabis products, except as authorized in chapter 420b or 381
420f or sections 21a-420n, 21a-420p, 21a-420r to 21a-420t, inclusive, [or] 382
as amended by this act, 21a-420w to 21a-420z, inclusive, or section 2 of 383
this act. 384
Sec. 5. Section 21a-408 of the general statutes is repealed and the 385
following is substituted in lieu thereof (Effective July 1, 2023): 386
As used in this section, sections 21a-408a to 21a-408o, inclusive, and 387
sections 21a-408r to 21a-408v, inclusive, unless the context otherwise 388
requires: 389
(1) "Advanced practice registered nurse" means an advanced practice 390
registered nurse licensed pursuant to chapter 378; 391
(2) "Cannabis establishment" has the same meaning as provided in 392
section 21a-420, as amended by this act; 393
(3) "Caregiver" means a person, other than the qualifying patient and 394
the qualifying patient's physician, physician assistant or advanced 395
practice registered nurse, who is eighteen years of age or older and has 396
agreed to undertake responsibility for managing the well-being of the 397
qualifying patient with respect to the palliative use of marijuana, 398
provided (A) in the case of a qualifying patient (i) under eighteen years 399
of age and not an emancipated minor, or (ii) otherwise lacking legal 400
capacity, such person shall be a parent, guardian or person having legal 401
custody of such qualifying patient, and (B) in the case of a qualifying 402
patient eighteen years of age or older or an emancipated minor, the need 403
for such person shall be evaluated by the qualifying patient's physician, 404
physician assistant or advanced practice registered nurse and such need 405
shall be documented in the written certification; 406
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[(3)] (4) "Cultivation" includes planting, propagating, cultivating, 407
growing and harvesting; 408
[(4)] (5) "Debilitating medical condition" means (A) cancer, glaucoma, 409
positive status for human immunodeficiency virus or acquired immune 410
deficiency syndrome, Parkinson's disease, multiple sclerosis, damage to 411
the nervous tissue of the spinal cord with objective neurological 412
indication of intractable spasticity, epilepsy or uncontrolled intractable 413
seizure disorder, cachexia, wasting syndrome, Crohn's disease, 414
posttraumatic stress disorder, irreversible spinal cord injury with 415
objective neurological indication of intractable spasticity, cerebral palsy, 416
cystic fibrosis or terminal illness requiring end-of-life care, except, if the 417
qualifying patient is under eighteen years of age, "debilitating medical 418
condition" means terminal illness requiring end-of-life care, irreversible 419
spinal cord injury with objective neurological indication of intractable 420
spasticity, cerebral palsy, cystic fibrosis, severe epilepsy or uncontrolled 421
intractable seizure disorder, or (B) any medical condition, medical 422
treatment or disease approved for qualifying patients by the 423
Department of Consumer Protection and posted online pursuant to 424
section 21a-408l; 425
[(5)] (6) "Dispensary facility" means a place of business (A) for which 426
the department has issued a dispensary facility license pursuant to this 427
chapter, and (B) where marijuana may be dispensed, sold or distributed 428
in accordance with this chapter and any regulations adopted 429
[thereunder] pursuant to this chapter to qualifying patients and 430
caregivers; [and for which the department has issued a dispensary 431
facility license pursuant to this chapter;] 432
[(6)] (7) "Employee" has the same meaning as provided in section 21a-433
420, as amended by this act; 434
(8) "Hemp manufacturer" means manufacturer, as defined in section 435
22-61l; 436
[(7)] (9) "Institutional animal care and use committee" means a 437
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committee that oversees an organization's animal program, facilities 438
and procedures to ensure compliance with federal policies, guidelines 439
and principles related to the care and use of animals in research; 440
[(8)] (10) "Institutional review board" means a specifically constituted 441
review body established or designated by an organization to protect the 442
rights and welfare of persons recruited to participate in biomedical, 443
behavioral or social science research; 444
[(9)] (11) "Laboratory" means a laboratory located in the state that is 445
licensed by the department to provide analysis of marijuana and that 446
meets the licensure requirements set forth in section 21a-246; 447
[(10)] (12) "Laboratory employee" means a person who is registered 448
as a laboratory employee pursuant to section 21a-408r; 449
[(11)] (13) "Licensed dispensary" or "dispensary" means an individual 450
who is a licensed pharmacist employed by a dispensary facility or 451
hybrid retailer; 452
[(12) "Producer" means a person who is licensed as a producer 453
pursuant to section 21a-408i;] 454
(14) "Manufacturer hemp product" has the same meaning as 455
provided in section 22-61l; 456
[(13)] (15) "Marijuana" means marijuana, as defined in section 21a-457
240; 458
[(14)] (16) "Nurse" means a person who is licensed as a nurse [under] 459
pursuant to chapter 378; 460
[(15)] (17) "Palliative use" means the acquisition, distribution, 461
transfer, possession, use or transportation of marijuana or paraphernalia 462
relating to marijuana, including the transfer of marijuana and 463
paraphernalia relating to marijuana from the patient's caregiver to the 464
qualifying patient, to alleviate a qualifying patient's symptoms of a 465
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debilitating medical condition or the effects of such symptoms, but does 466
not include any such use of marijuana by any person other than the 467
qualifying patient; 468
[(16)] (18) "Paraphernalia" means drug paraphernalia, as defined in 469
section 21a-240; 470
[(17)] (19) "Physician" means a person who is licensed as a physician 471
[under] pursuant to chapter 370; 472
[(18)] (20) "Physician assistant" means a person who is licensed as a 473
physician assistant [under] pursuant to chapter 370; 474
[(19) "Caregiver" means a person, other than the qualifying patient 475
and the qualifying patient's physician, physician assistant or advanced 476
practice registered nurse, who is eighteen years of age or older and has 477
agreed to undertake responsibility for managing the well-being of the 478
qualifying patient with respect to the palliative use of marijuana, 479
provided (A) in the case of a qualifying patient (i) under eighteen years 480
of age and not an emancipated minor, or (ii) otherwise lacking legal 481
capacity, such person shall be a parent, guardian or person having legal 482
custody of such qualifying patient, and (B) in the case of a qualifying 483
patient eighteen years of age or older or an emancipated minor, the need 484
for such person shall be evaluated by the qualifying patient's physician, 485
physician assistant or advanced practice registered nurse and such need 486
shall be documented in the written certification;] 487
(21) "Producer" means a person who is licensed as a producer 488
pursuant to section 21a-408i; 489
[(20)] (22) "Qualifying patient" means a person who: (A) Is a resident 490
of Connecticut, (B) has been diagnosed by a physician, physician 491
assistant or advanced practice registered nurse as having a debilitating 492
medical condition, and (C) (i) is eighteen years of age or older, (ii) is an 493
emancipated minor, or (iii) has written consent from a custodial parent, 494
guardian or other person having legal custody of such person that 495
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indicates that such person has permission from such parent, guardian 496
or other person for the palliative use of marijuana for a debilitating 497
medical condition and that such parent, guardian or other person will 498
(I) serve as a caregiver for the qualifying patient, and (II) control the 499
acquisition and possession of marijuana and any related paraphernalia 500
for palliative use on behalf of such person. "Qualifying patient" does not 501
include an inmate confined in a correctional institution or facility under 502
the supervision of the Department of Correction; 503
[(21)] (23) "Research program" means a study approved by the 504
Department of Consumer Protection in accordance with this chapter 505
and undertaken to increase information or knowledge regarding the 506
growth or processing of marijuana, or the medical attributes, dosage 507
forms, administration or use of marijuana to treat or alleviate symptoms 508
of any medical conditions or the effects of such symptoms; 509
[(22)] (24) "Research program employee" means a person who (A) is 510
registered as a research program employee [under] pursuant to section 511
21a-408t, or (B) holds a temporary certificate of registration issued 512
pursuant to section 21a-408t; 513
[(23)] (25) "Research program subject" means a person registered as a 514
research program subject pursuant to section 21a-408v; 515
[(24)] (26) "Usable marijuana" means the dried leaves and flowers of 516
the marijuana plant, and any mixtures or preparations of such leaves 517
and flowers, that are appropriate for the palliative use of marijuana, but 518
does not include the seeds, stalks and roots of the marijuana plant; and 519
[(25)] (27) "Written certification" means a written certification issued 520
by a physician, physician assistant or advanced practice registered 521
nurse pursuant to section 21a-408c. 522
Sec. 6. Section 21a-408h of the general statutes is repealed and the 523
following is substituted in lieu thereof (Effective July 1, 2023): 524
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(a) No person may act as a dispensary or represent that such person 525
is a licensed dispensary unless such person has obtained a license from 526
the Commissioner of Consumer Protection pursuant to this section. 527
(b) No person may act as a dispensary facility or represent that such 528
person is a licensed dispensary facility unless such person has obtained 529
a license from the Commissioner of Consumer Protection pursuant to 530
this section. 531
(c) (1) The Commissioner of Consumer Protection shall determine the 532
number of dispensary facilities appropriate to meet the needs of 533
qualifying patients in this state and shall adopt regulations, in 534
accordance with chapter 54, to provide for the licensure and standards 535
for dispensary facilities in this state and specify the maximum number 536
of dispensary facilities that may be licensed in this state. On and after 537
the effective date of such regulations, the commissioner may license any 538
person who applies for a license in accordance with such regulations, 539
provided the commissioner deems such applicant qualified to acquire, 540
possess, distribute and dispense marijuana pursuant to sections 21a-408 541
to 21a-408m, inclusive, as amended by this act. At a minimum, such 542
regulations shall: 543
[(1)] (A) Indicate the maximum number of dispensary facilities that 544
may be licensed in this state; 545
[(2)] (B) Provide that no marijuana may be dispensed from, obtained 546
from or transferred to a location outside of this state; 547
[(3)] (C) Establish a licensing fee and renewal fee for each dispensary 548
facility, provided such fees shall not be less than the amount necessary 549
to cover the direct and indirect cost of licensing and regulating 550
dispensary facilities pursuant to sections 21a-408 to 21a-408m, inclusive, 551
as amended by this act; 552
[(4)] (D) Provide for renewal of such dispensary facility licenses at 553
least every two years; 554
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[(5)] (E) Describe areas in this state where dispensary facilities may 555
not be located, after considering the criteria for the location of retail 556
liquor permit premises set forth in subsection (a) of section 30-46; 557
[(6)] (F) Establish health, safety and security requirements for 558
dispensary facilities, which may include, but need not be limited to: 559
[(A)] (i) The ability to maintain adequate control against the diversion, 560
theft and loss of marijuana acquired or possessed by the dispensary 561
facility, and [(B)] (ii) the ability to maintain the knowledge, 562
understanding, judgment, procedures, security controls and ethics to 563
ensure optimal safety and accuracy in the distributing, dispensing and 564
use of palliative marijuana; 565
[(7)] (G) Establish standards and procedures for revocation, 566
suspension, summary suspension and nonrenewal of dispensary facility 567
licenses, provided such standards and procedures are consistent with 568
the provisions of subsection (c) of section 4-182; and 569
[(8)] (H) Establish other licensing, renewal and operational standards 570
deemed necessary by the commissioner. 571
(2) Notwithstanding the requirements of sections 4-168 to 4-172, 572
inclusive, in order to effectuate the purposes of this subsection and 573
protect public health and safety, the commissioner, prior to amending 574
any regulations adopted pursuant to subdivision (1) of this subsection, 575
shall issue policies and procedures to implement the provisions of this 576
subsection, which policies and procedures shall have the force and effect 577
of law. The commissioner shall post each such policy or procedure on 578
the department's Internet web site, and submit such policy or procedure 579
to the Secretary of the State for posting on the eRegulations System, at 580
least fifteen days prior to the effective date of such policy or procedure. 581
Any such policy or procedure shall no longer be effective upon the 582
earlier of either the adoption of such policy or procedure as a final 583
regulation pursuant to section 4-172 or June 30, 2027, if such regulations 584
have not been submitted to the legislative regulation review committee 585
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for consideration under section 4-170. Not later than January 1, 2024, the 586
commissioner shall issue policies and procedures to permit dispensary 587
facilities licensed pursuant to this chapter to acquire manufacturer 588
hemp products from hemp manufacturers, and sell such manufacturer 589
hemp products to qualifying patients and caregivers in accordance with 590
this chapter, chapter 424 and any regulations adopted pursuant to said 591
chapters. At a minimum, such regulations shall require that each such 592
manufacturer hemp product be: 593
(A) Labeled in a manner that indicates that such manufacturer hemp 594
product is (i) a manufacturer hemp product, (ii) subject to different 595
testing standards than marijuana, and (iii) not marijuana; and 596
(B) Stored separately from marijuana and displayed with signage 597
approved by the department. 598
(d) Any fees collected by the Department of Consumer Protection 599
under this section shall be paid to the State Treasurer and credited to the 600
General Fund. 601
[(e) On or before January 1, 2017, and annually thereafter, each 602
dispensary facility shall report data to the Department of Consumer 603
Protection relating to the types, mixtures and dosages of palliative 604
marijuana dispensed by such dispensary facility. A report prepared 605
pursuant to this subsection shall be in such form as may be prescribed 606
by the Commissioner of Consumer Protection.] 607
Sec. 7. Section 21a-409 of the general statutes is repealed and the 608
following is substituted in lieu thereof (Effective July 1, 2023): 609
(a) As used in this section, "producer" has the same meaning as 610
provided in section 21a-408, as amended by this act, and "manufacture", 611
"market", "cultivate", "hemp", "hemp products", [and] "manufacturer 612
hemp products" and "producer hemp products" have the same 613
meanings as provided in section 22-61l. Any producer licensed [under] 614
pursuant to section 21a-408, as amended by this act, shall manufacture, 615
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market, cultivate or store hemp and manufacturer hemp products in 616
accordance with the provisions of this chapter and any regulations 617
adopted [under] pursuant to this chapter. Producers may obtain hemp 618
and manufacturer hemp products from a person authorized under the 619
laws of this state or another state, territory or possession of the United 620
States or another sovereign entity to possess and sell such hemp and 621
manufacturer hemp products. 622
(b) Hemp or manufacturer hemp products purchased by producers 623
from third parties shall be tracked as a separate batch throughout the 624
manufacturing process in order to document the disposition of such 625
hemp or manufacturer hemp products. Hemp or manufacturer hemp 626
products obtained, manufactured, marketed, cultivated or stored by a 627
producer shall be deemed marijuana and shall comply with the 628
requirements for marijuana contained in the applicable provisions of the 629
general statutes and any regulations adopted [under] pursuant to such 630
provisions. Producers shall retain a copy of the certificate of analysis for 631
purchased hemp or manufacturer hemp products and invoice and 632
transport documents that evidence the quantity purchased and date 633
received. 634
(c) (1) No hemp or producer hemp products shall be sold or 635
distributed within a dispensary facility that is licensed [under] pursuant 636
to this chapter. 637
(2) Notwithstanding subdivision (1) of this subsection, manufacturer 638
hemp products may be sold within a dispensary facility that is licensed 639
pursuant to this chapter, provided such manufacturer hemp products 640
are (A) sold from a location within the dispensary facility that is separate 641
from the area within such dispensary facility where marijuana is sold, 642
(B) labeled as hemp products that are not subject to marijuana testing 643
standards, and (C) sold in accordance with this chapter, chapter 424 and 644
any regulations adopted pursuant to said chapters. 645
Sec. 8. Subsections (d) and (e) of section 21a-420b of the general 646
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statutes are repealed and the following is substituted in lieu thereof 647
(Effective July 1, 2023): 648
(d) No law enforcement officer employed by an agency that receives 649
state or local government funds shall expend state or local resources, 650
including the officer's time, to effect any arrest or seizure of cannabis, or 651
conduct any investigation, on the sole basis of activity the officer 652
believes to constitute a violation of federal law if the officer has reason 653
to believe that such activity is in compliance with this section and 654
sections 21a-420a, 21a-420c to 21a-420i, inclusive, 21a-420l to 21a-420n, 655
inclusive, 21a-420p to 21a-420t, inclusive, 21a-420v to 21a-421c, 656
inclusive, 21a-421f, as amended by this act, 21a-421g, 21a-421j to 21a-657
421q, inclusive, 21a-421aa to 21a-421dd, inclusive, 21a-422k and 53-247a 658
and sections 23, 60 and 63 to 65, inclusive, of public act 21-1 of the June 659
special session, [or] chapter 420f or section 2 of this act. 660
(e) An officer may not expend state or local resources, including the 661
officer's time, to provide any information or logistical support to any 662
federal law enforcement authority or prosecuting entity related to 663
activity the officer believes to constitute a violation of federal law if the 664
officer has reason to believe that such activity is in compliance with the 665
provisions of this section and sections 21a-420a, 21a-420c to 21a-420i, 666
inclusive, 21a-420l to 21a-420n, inclusive, 21a-420p to 21a-420t, 667
inclusive, 21a-420v to 21a-421c, inclusive, 21-421f, 21a-421g, 21a-421j to 668
21a-421q, inclusive, 21a-421aa to 21a-421dd, inclusive, 21a-422k and 53-669
247a and sections 23, 60 and 63 to 65, inclusive, of public act 21-1 of the 670
June special session, [or] chapter 420f or section 2 of this act. 671
Sec. 9. Subsection (k) of section 21a-420d of the general statutes is 672
repealed and the following is substituted in lieu thereof (Effective July 1, 673
2023): 674
(k) The council shall develop criteria for evaluating the ownership 675
and control of any equity joint venture created under section 21a-420m, 676
as amended by this act, 21a-420u, as amended by this act, [or] section 677
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21a-420j, as amended by this act, or section 3 of this act and shall review 678
and approve or deny in writing such equity joint venture prior to such 679
equity joint venture being licensed [under] pursuant to section 21a-680
420m, as amended by this act, 21a-420u, as amended by this act, [or] 681
section 21a-420j, as amended by this act, or section 3 of this act. After 682
developing criteria for social equity plans as described in subdivision 683
(5) of subsection (h) of this section, the council shall review and approve 684
or deny in writing any such plan submitted by a cannabis establishment 685
as part of its final license application. The council shall not approve any 686
equity joint venture applicant which shares with an equity joint venture 687
any individual owner who meets the criteria established in 688
subparagraphs (A) and (B) of subdivision [(48)] (51) of section 21a-420, 689
as amended by this act. 690
Sec. 10. Section 21a-420e of the general statutes is repealed and the 691
following is substituted in lieu thereof (Effective July 1, 2023): 692
(a) Not later than thirty days after the date that the Social Equity 693
Council identifies the criteria and the necessary supporting 694
documentation for social equity applicants and posts such information 695
on its Internet web site, the department may accept applications for the 696
following cannabis establishment license types: (1) Retailer, (2) hybrid 697
retailer, (3) cultivator, (4) micro-cultivator, (5) product manufacturer, (6) 698
food and beverage manufacturer, (7) product packager, (8) delivery 699
service, and (9) transporter. Each application for licensure shall require 700
the applicant to indicate whether the applicant wants to be considered 701
for treatment as a social equity applicant. 702
(b) On and after July 1, 2021, the department may accept applications 703
from any dispensary facility to convert its license to a hybrid-retailer 704
license and any producer for expanded authorization to engage in the 705
adult use cannabis market under its license issued pursuant to section 706
21a-408i. 707
(c) During the period beginning October 1, 2023, and ending 708
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December 31, 2023, the department shall accept applications from any 709
hemp producer to become licensed as a cultivator or micro-cultivator 710
under section 2 of this act. 711
[(c)] (d) Except as provided in subsection [(e)] (f) of this section, the 712
following fees shall be paid by each applicant: 713
(1) For a retailer license, the fee to enter the lottery shall be five 714
hundred dollars, the fee to receive a provisional license shall be five 715
thousand dollars and the fee to receive a final license or a renewal of a 716
final license shall be twenty-five thousand dollars. 717
(2) For a hybrid retailer license, the fee to enter the lottery shall be five 718
hundred dollars, the fee to receive a provisional license shall be five 719
thousand dollars and the fee to receive a final license or a renewal of a 720
final license shall be twenty-five thousand dollars. 721
(3) For a cultivator license, the fee to enter the lottery shall be one 722
thousand dollars, the fee to receive a provisional license shall be twenty-723
five thousand dollars and the fee to receive a final license or a renewal 724
of a final license shall be seventy-five thousand dollars. 725
(4) For a micro-cultivator license, the fee to enter the lottery shall be 726
two hundred fifty dollars, the fee to receive a provisional license shall 727
be five hundred dollars and the fee to receive a final license or a renewal 728
of a final license shall be one thousand dollars. 729
(5) For a product manufacturer license, the fee to enter the lottery 730
shall be seven hundred fifty dollars, the fee to receive a provisional 731
license shall be five thousand dollars and the fee to receive a final license 732
or a renewal of a final license shall be twenty-five thousand dollars. 733
(6) For a food and beverage manufacturer license, the fee to enter the 734
lottery shall be two hundred fifty dollars, the fee to receive a provisional 735
license shall be one thousand dollars and the fee to receive a final license 736
or a renewal of a final license shall be five thousand dollars. 737
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(7) For a product packager license, the fee to enter the lottery shall be 738
five hundred dollars, the fee to receive a provisional license shall be five 739
thousand dollars and the fee to receive a final license or a renewal of a 740
final license shall be twenty-five thousand dollars. 741
(8) For a delivery service or transporter license, the fee to enter the 742
lottery shall be two hundred fifty dollars, the fee to receive a provisional 743
license shall be one thousand dollars and the fee to receive a final license 744
or a renewal of a final license shall be five thousand dollars. 745
(9) For an initial or renewal of a backer license, the fee shall be one 746
hundred dollars. 747
(10) For an initial or renewal of a key employee license, the fee shall 748
be one hundred dollars. 749
(11) For an initial or renewal of a registration of an employee who is 750
not a key employee, the fee shall be fifty dollars. 751
(12) The license conversion fee for a dispensary facility to become a 752
hybrid retailer shall be one million dollars, except as provided in section 753
21a-420u, as amended by this act. 754
(13) The license conversion fee for a producer to engage in the adult 755
use cannabis market shall be three million dollars, except as provided in 756
section 21a-420l. 757
(14) For a hemp producer that converts to a cultivator license under 758
section 2 of this act, (A) the fee to receive an initial license shall be three 759
million dollars, provided, if the hemp producer participates in two 760
approved equity joint ventures as described in section 3 of this act, such 761
fee shall be one million five hundred thousand dollars, and (B) the fee 762
to receive a renewal of a license shall be the same as the renewal fee 763
established in subdivision (3) of this subsection. 764
(15) For a hemp producer that converts to a micro-cultivator license 765
under section 2 of this act, (A) the fee to receive an initial license shall be 766
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one million dollars, provided, if the hemp producer participates in two 767
approved equity joint ventures as described in section 3 of this act, such 768
fee shall be five hundred thousand dollars, and (B) the fee to receive 769
renewal of a final license shall be the same as the renewal fee established 770
in subdivision (4) of this subsection. 771
[(d)] (e) For any dispensary facility that has become a hybrid retailer, 772
the renewal fee shall be the same as the fee for a hybrid retailer set forth 773
in subdivision (2) of subsection [(c)] (d) of this section. For any producer, 774
the renewal fee shall be the same as set forth in section 21a-408i. A social 775
equity applicant shall pay fifty per cent of the amount of any of the fees 776
specified in subsection [(c)] (d) of this section for the first three renewal 777
cycles of the applicable cannabis establishment license applied for, and 778
the full amount thereafter, provided in the case of the fees set forth in 779
subdivisions (12) and (13) of subsection [(c)] (d) of this section, a social 780
equity applicant shall pay the full amount of the fee. 781
[(e)] (f) (1) For the fiscal year ending June 30, 2023, [and thereafter,] 782
the fees collected by the department under this section shall be paid to 783
the State Treasurer and credited to the General Fund, except that the fees 784
collected under subdivisions (12) and (13) of subsection [(c)] (d) of this 785
section shall be deposited in the Social Equity and Innovation Fund 786
established under section 21a-420f, as amended by this act. 787
(2) For the fiscal year ending June 30, 2024, and thereafter, the fees 788
collected by the department under this section shall be paid to the State 789
Treasurer and credited to the General Fund, except that the fees 790
collected under subdivisions (12) to (15), inclusive, of subsection (d) of 791
this section shall be deposited in the Social Equity and Innovation Fund 792
established under section 21a-420f, as amended by this act. 793
[(f)] (g) For each license type: 794
(1) Applicants shall apply on a form and in a manner prescribed by 795
the commissioner, which form shall include a method for the applicant 796
to request consideration as a social equity applicant; and 797
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(2) The department shall post on its Internet web site the application 798
period, which shall specify the first and last date that the department 799
will accept applications for that license type. The first date that the 800
department shall accept applications shall be no sooner than thirty days 801
after the date the Social Equity Council posts the criteria and supporting 802
documentation necessary to qualify for consideration as a social equity 803
applicant as set forth in section 21a-420g. Only complete license 804
applications received by the department during the application period 805
shall be considered. 806
Sec. 11. Subsections (a) and (b) of section 21a-420f of the general 807
statutes are repealed and the following is substituted in lieu thereof 808
(Effective July 1, 2023): 809
(a) (1) There is established an account to be known as the "cannabis 810
regulatory and investment account" which shall be a separate, 811
nonlapsing account within the General Fund. The account shall contain 812
any moneys required by law to be deposited in the account. Moneys in 813
the account shall be allocated by the Secretary of the Office of Policy and 814
Management, in consultation with the Social Equity Council, as defined 815
in section 21a-420, as amended by this act, to state agencies for the 816
purpose of paying costs incurred to implement the activities authorized 817
under RERACA, as defined in section 21a-420, as amended by this act. 818
(2) Notwithstanding the provisions of section 21a-420e, as amended 819
by this act, for the fiscal years ending June 30, 2022, and June 30, 2023, 820
the following shall be deposited in the cannabis regulatory and 821
investment account: (A) All fees received by the state pursuant to 822
section 21a-421b and subdivisions (1) to (11), inclusive, of subsection 823
[(c)] (d) of section 21a-420e, as amended by this act; (B) the tax received 824
by the state under section 12-330ll; and (C) the tax received by the state 825
under chapter 219 from a cannabis retailer, hybrid retailer or micro-826
cultivator, as those terms are defined in section 12-330ll. 827
(3) At the end of the fiscal year ending June 30, 2023, all moneys 828
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remaining in the cannabis regulatory and investment account shall be 829
transferred to the General Fund. 830
(b) (1) There is established an account to be known as the "social 831
equity and innovation account" which shall be a separate, nonlapsing 832
account within the General Fund. The account shall contain any moneys 833
required by law to be deposited in the account. Moneys in the account 834
shall be allocated by the Secretary of the Office of Policy and 835
Management, in consultation with the Social Equity Council, to state 836
agencies for the purpose of (A) paying costs incurred by the Social 837
Equity Council, (B) administering programs under RERACA to provide 838
(i) access to capital for businesses, (ii) technical assistance for the start-839
up and operation of a business, (iii) funding for workforce education, 840
and (iv) funding for community investments, and (C) paying costs 841
incurred to implement the activities authorized under RERACA. 842
(2) Notwithstanding the provisions of sections 21a-420e, as amended 843
by this act, and 21a-420o, for the fiscal years ending June 30, 2022, and 844
June 30, 2023, the following shall be deposited in the social equity and 845
innovation account: All fees received by the state pursuant to sections 846
21a-420l, 21a-420o and 21a-420u, as amended by this act, and 847
subdivisions (12) and (13) of subsection [(c)] (d) of section 21a-420e, as 848
amended by this act. 849
(3) At the end of the fiscal year ending June 30, 2023, five million 850
dollars shall be transferred from the social equity and innovation 851
account to the General Fund, or, if the account contains less than five 852
million dollars, all remaining moneys in the account. All moneys in the 853
account not transferred to the General Fund pursuant to this 854
subdivision shall be transferred to the Social Equity and Innovation 855
Fund established under subsection (c) of this section. 856
Sec. 12. Subsection (f) of section 21a-420j of the general statutes is 857
repealed and the following is substituted in lieu thereof (Effective July 1, 858
2023): 859
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(f) An equity joint venture applicant shall pay fifty per cent of the 860
amount of any applicable fee specified in subsection [(c)] (d) of section 861
21a-420e, as amended by this act, for the first three renewal cycles of the 862
applicable cannabis establishment license applied for, and shall pay the 863
full amount of such fee thereafter. 864
Sec. 13. Subsections (b) to (i), inclusive, of section 21a-420m of the 865
general statutes are repealed and the following is substituted in lieu 866
thereof (Effective July 1, 2023): 867
(b) The equity joint venture shall be in any cannabis establishment 868
licensed business, other than a cultivator license, provided such equity 869
joint venture is at least fifty per cent owned and controlled by an 870
individual or individuals who meet, or the equity joint venture 871
applicant is an individual who meets, the criteria established in 872
subparagraphs (A) and (B) of subdivision [(48)] (51) of section 21a-420, 873
as amended by this act. 874
(c) The equity joint venture applicant shall submit an application to 875
the Social Equity Council that may include, but need not be limited to, 876
evidence of business formation, ownership allocation, terms of 877
ownership and financing and proof of social equity status. The equity 878
joint venture applicant shall submit to the Social Equity Council 879
information including, but not limited to, the organizing documents of 880
the entity that outline the ownership stake of each backer, initial backer 881
investment and payout information to enable the council to determine 882
the terms of ownership. 883
(d) Upon obtaining the written approval of the Social Equity Council 884
for an equity joint venture, the equity joint venture applicant shall apply 885
for a license from the department in the same form as required by all 886
other licensees of the same license type, except that such application 887
shall not be subject to the lottery. 888
(e) A producer, including the backer of such producer, shall not 889
increase its ownership in an equity joint venture in excess of fifty per 890
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cent during the seven-year period after a license is issued by the 891
department [under] pursuant to this section. 892
(f) Equity joint ventures that share a common producer or producer 893
backer and that are retailers or hybrid retailers shall not be located 894
within twenty miles of another commonly owned equity joint venture. 895
(g) If a producer has paid a reduced conversion fee, as described in 896
subsection (b) of section 21a-420l, and subsequently did not create two 897
equity joint ventures under this section that, not later than fourteen 898
months after the Department of Consumer Protection approved the 899
producer's license expansion application under section 21a-420l, each 900
received a final license from the department, the producer shall be liable 901
for the full conversion fee of three million dollars established in section 902
21a-420l minus such paid reduced conversion fee. 903
(h) No producer that receives license expansion authorization under 904
section 21a-420l shall create more than two equity joint ventures. No 905
such producer shall apply for, or create, any additional equity joint 906
venture if, on the effective date of this section, such producer has created 907
at least two equity joint ventures that have each received a provisional 908
license. 909
(i) An equity joint venture applicant shall pay fifty per cent of the 910
amount of any applicable fee specified in subsection [(c)] (d) of section 911
21a-420e, as amended by this act, for the first three renewal cycles of the 912
applicable cannabis establishment license applied for, and shall pay the 913
full amount of such fee thereafter. 914
Sec. 14. Section 21a-420r of the general statutes is repealed and the 915
following is substituted in lieu thereof (Effective July 1, 2023): 916
(a) On and after July 1, 2021, the department may issue or renew a 917
license for a person to be a retailer. No person may act as a retailer or 918
represent that such person is a retailer unless such person has obtained 919
a license from the department pursuant to this section. 920
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(b) A retailer may obtain cannabis from a cultivator, micro-cultivator, 921
producer, product packager, food and beverage manufacturer, product 922
manufacturer or transporter or an undeliverable return from a delivery 923
service. A retailer may sell, transport or transfer cannabis or cannabis 924
products to a delivery service, laboratory or research program. A retailer 925
may sell cannabis to a consumer or research program. A retailer may 926
not conduct sales of medical marijuana products nor offer discounts or 927
other inducements to qualifying patients or caregivers. A retailer shall 928
not gift or transfer cannabis at no cost to a consumer as part of a 929
commercial transaction. 930
(c) Retailers shall maintain a secure location, in a manner approved 931
by the commissioner, at the licensee's premises where cannabis that is 932
unable to be delivered by an employee or delivery service may be 933
returned to the retailer. Such secure cannabis return location shall meet 934
specifications set forth by the commissioner and published on the 935
department's Internet web site or included in regulations adopted by 936
the department. 937
(d) A retailer may deliver cannabis through a delivery service or by 938
utilizing its own employees, subject to the provisions of subsection (b) 939
of section 21a-420c. 940
(e) Notwithstanding the requirements of sections 4-168 to 4-172, 941
inclusive, in order to effectuate the purposes of this section and protect 942
public health and safety, the commissioner, prior to amending any 943
regulations adopted pursuant to chapter 54 to implement the provisions 944
of this section, shall issue policies and procedures to implement the 945
provisions of this section, which policies and procedures shall have the 946
force and effect of law. The commissioner shall post each such policy or 947
procedure on the department's Internet web site, and submit such policy 948
or procedure to the Secretary of the State for posting on the eRegulations 949
System, at least fifteen days prior to the effective date of such policy or 950
procedure. Any such policy or procedure shall no longer be effective 951
upon the earlier of either the adoption of such policy or procedure as a 952
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final regulation pursuant to section 4-172 or June 30, 2027, if such 953
regulations have not been submitted to the legislative regulation review 954
committee for consideration under section 4-170. At a minimum, such 955
policies, procedures and regulations shall require that each 956
manufacturer hemp product be: 957
(1) Labeled in a manner that indicates that such manufacturer hemp 958
product is (A) a manufacturer hemp product, (B) subject to different 959
testing standards than cannabis, and (C) not cannabis or a cannabis 960
product; and 961
(2) Stored separately from cannabis and cannabis products and 962
displayed with signage approved by the department. 963
Sec. 15. Section 21a-420s of the general statutes is repealed and the 964
following is substituted in lieu thereof (Effective July 1, 2023): 965
(a) On and after July 1, 2021, the department may issue or renew a 966
license for a hybrid retailer. No person may act as a hybrid retailer or 967
represent that such person is a hybrid retailer unless such person has 968
obtained a license from the department pursuant to this section. 969
(b) A hybrid retailer may obtain cannabis from a cultivator, micro-970
cultivator, producer, product packager, food and beverage 971
manufacturer, product manufacturer or transporter. In addition to the 972
activities authorized under section 21a-420t, a hybrid retailer may sell, 973
transport or transfer cannabis to a delivery service, laboratory or 974
research program. A hybrid retailer may sell cannabis products to a 975
consumer or research program. A hybrid retailer shall not gift or 976
transfer cannabis at no cost to a consumer, qualifying patient or 977
caregiver as part of a commercial transaction. 978
(c) In addition to conducting general retail sales, a hybrid retailer may 979
sell cannabis and medical marijuana products, to qualifying patients 980
and caregivers. Any cannabis or medical marijuana products sold to 981
qualifying patients and caregivers shall be dispensed by a licensed 982
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pharmacist and shall be recorded in the electronic prescription drug 983
monitoring program, established pursuant to section 21a-254, in real-984
time or immediately upon completion of the transaction, unless not 985
reasonably feasible for a specific transaction, but in no case longer than 986
one hour after completion of the transaction. Only a licensed pharmacist 987
or dispensary technician may upload or access data in the prescription 988
drug monitoring program. 989
(d) A hybrid retailer shall maintain a licensed pharmacist on premises 990
at all times when the hybrid retail location is open to the public or to 991
qualifying patients and caregivers. 992
(e) The hybrid retailer location shall include a private consultation 993
space for pharmacists to meet with qualifying patients and caregivers. 994
Additionally, the hybrid retailer premises shall accommodate an 995
expedited method of entry that allows for priority entrance into the 996
premises for qualifying patients and caregivers. 997
(f) Hybrid retailers shall maintain a secure location, in a manner 998
approved by the commissioner, at the licensee's premises where 999
cannabis that is unable to be delivered may be returned to the hybrid 1000
retailer. Such secure cannabis return location shall meet specifications 1001
set forth by the commissioner and published on the department's 1002
Internet web site or included in regulations adopted by the department. 1003
(g) Cannabis dispensed to a qualifying patient or caregiver that are 1004
unable to be delivered and are returned by the delivery service to the 1005
hybrid retailer shall be returned to the licensee inventory system and 1006
removed from the prescription drug monitoring program not later than 1007
forty-eight hours after receipt of the cannabis from the delivery service. 1008
(h) A hybrid retailer may not convert its license to a retailer license. 1009
To obtain a retailer license, a hybrid retailer shall apply through the 1010
lottery application process. A hybrid retailer may convert to a 1011
dispensary facility if the hybrid retailer complies with all applicable 1012
provisions of chapter 420f, and upon written approval by the 1013
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department. 1014
(i) Notwithstanding the requirements of sections 4-168 to 4-172, 1015
inclusive, in order to effectuate the purposes of this section and protect 1016
public health and safety, the commissioner, prior to amending any 1017
regulations adopted pursuant to chapter 54 to implement the provisions 1018
of this section, shall issue policies and procedures to implement the 1019
provisions of this section, which policies and procedures shall have the 1020
force and effect of law. The commissioner shall post each such policy or 1021
procedure on the department's Internet web site, and submit such policy 1022
or procedure to the Secretary of the State for posting on the eRegulations 1023
System, at least fifteen days prior to the effective date of such policy or 1024
procedure. Any such policy or procedure shall no longer be effective 1025
upon the earlier of either the adoption of such policy or procedure as a 1026
final regulation pursuant to section 4-172 or June 30, 2027, if such 1027
regulations have not been submitted to the legislative regulation review 1028
committee for consideration under section 4-170. At a minimum, such 1029
policies, procedures and regulations shall require that each 1030
manufacturer hemp product be: 1031
(1) Labeled in a manner that indicates that such manufacturer hemp 1032
product is (A) a manufacturer hemp product, (B) subject to different 1033
testing standards than cannabis, and (C) not cannabis or a cannabis 1034
product; and 1035
(2) Stored separately from cannabis and cannabis products and 1036
displayed with signage approved by the department. 1037
Sec. 16. Subsections (b) to (i), inclusive, of section 21a-420u of the 1038
general statutes are repealed and the following is substituted in lieu 1039
thereof (Effective July 1, 2023): 1040
(b) Any equity joint venture created under this section shall be 1041
created for the development of a cannabis establishment, other than a 1042
cultivator, provided such equity joint venture is at least fifty per cent 1043
owned and controlled by an individual or individuals who meet, or the 1044
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equity joint venture applicant is an individual who meets, the criteria 1045
established in subparagraphs (A) and (B) of subdivision [(48)] (51) of 1046
section 21a-420, as amended by this act. 1047
(c) An equity joint venture applicant shall submit an application to 1048
the Social Equity Council that may include, but need not be limited to, 1049
evidence of business formation, ownership allocation, terms of 1050
ownership and financing and proof of social equity status. The equity 1051
joint venture applicant shall submit to the Social Equity Council 1052
information including, but not limited to, the organizing documents of 1053
the entity that outline the ownership stake of each backer, initial backer 1054
investment and payout information to enable the council to determine 1055
the terms of ownership. 1056
(d) Upon receipt of written approval of the equity joint venture by 1057
the Social Equity Council, the equity joint venture applicant shall apply 1058
for a license from the department in the same form as required by all 1059
other licensees of the same license type and subject to the same fees as 1060
required by all other licensees of the same license type. 1061
(e) A dispensary facility, including the backers of such dispensary 1062
facility, shall not increase its ownership in an equity joint venture in 1063
excess of fifty per cent during the seven-year period after a license is 1064
issued by the department [under] pursuant to this section. 1065
(f) Equity joint ventures that are retailers or hybrid retailers that share 1066
a common dispensary facility or dispensary facility backer owner shall 1067
not be located within twenty miles of another commonly owned equity 1068
joint venture. 1069
(g) If a dispensary facility has paid the reduced conversion fee, in 1070
accordance with subsection (a) of this section, and did not subsequently 1071
create one equity joint venture under this section that, not later than 1072
fourteen months after the Department of Consumer Protection 1073
approved the dispensary facility's license conversion application under 1074
section 21a-420t, receives a final license from the department, the 1075
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dispensary facility shall be liable for the full conversion fee of one 1076
million dollars established in section 21a-420e, as amended by this act, 1077
minus such paid reduced conversion fee. 1078
(h) No dispensary facility that receives approval to convert the 1079
dispensary facility's license to a hybrid-retailer license under section 1080
21a-420t shall create more than two equity joint ventures. No such 1081
dispensary facility shall apply for, or create, any additional equity joint 1082
venture if [, on the effective date of this section,] such dispensary facility 1083
has created at least two equity joint ventures that have each received a 1084
provisional license. 1085
(i) An equity joint venture applicant shall pay fifty per cent of the 1086
amount of any applicable fee specified in subsection [(c)] (d) of section 1087
21a-420e, as amended by this act, for the first three renewal cycles of the 1088
applicable cannabis establishment license applied for, and shall pay the 1089
full amount of such fee thereafter. 1090
Sec. 17. Section 21a-421f of the general statutes is repealed and the 1091
following is substituted in lieu thereof (Effective July 1, 2023): 1092
(a) The Social Equity Council, in coordination with the Departments 1093
of Consumer Protection and Economic and Community Development, 1094
shall develop a cannabis business accelerator program to provide 1095
technical assistance to participants by partnering participants with a 1096
cannabis establishment. The Social Equity Council may partner with a 1097
constituent unit of the state system of higher education in developing 1098
the program. 1099
(b) Any individual who would qualify as a social equity applicant 1100
may apply to participate in the accelerator program under this section. 1101
(c) [On and after October 1, 2021, the] The Social Equity Council may 1102
accept applications from an individual described in subsection (b) of this 1103
section for the component of the accelerator program corresponding to 1104
each of the following license types: (1) Retailer, (2) cultivator, (3) product 1105
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manufacturer, (4) food and beverage manufacturer, and (5) product 1106
packager. 1107
(d) [On and after July 1, 2022, the] The council may accept 1108
applications from (1) retailers, (2) cultivators, (3) product 1109
manufacturers, (4) food and beverage manufacturers, (5) product 1110
packagers, (6) hybrid-retailers, and (7) micro-cultivators, licensed 1111
pursuant to section 21a-420e, as amended by this act, to partner with 1112
participants in the accelerator program component corresponding to the 1113
same license type, provided an accelerator retailer participant may be 1114
partnered with either a retailer or hybrid retailer and an accelerator 1115
cultivator participant may be partnered with either a cultivator or 1116
micro-cultivator. 1117
(e) As part of the cannabis business accelerator program, accelerator 1118
participants may be required to participate in training on accounting 1119
methods, business services, how to access capital markets and financing 1120
opportunities and on regulatory compliance. Social equity applicants 1121
who have been awarded either a provisional license or a final license for 1122
a cannabis establishment may participate in the training programs made 1123
available under this section. 1124
(f) The Social Equity Council shall facilitate opportunities for 1125
participants in the cannabis business accelerator program to meet with 1126
potential investors. 1127
(g) A participant who has partnered with a cannabis establishment 1128
pursuant to subsection (d) of this section shall be allowed to participate 1129
in any activity of the cannabis establishment with the same privileges 1130
afforded by the cannabis establishment's license to employees of such 1131
cannabis establishment. 1132
(h) Each participant shall annually apply for and obtain a registration, 1133
on a form and in a manner prescribed by the commissioner, prior to 1134
participating in any activity of a cannabis establishment. The Social 1135
Equity Council may charge a registration fee to participants. 1136
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(i) The Social Equity Council may determine the duration of the 1137
program and number of participants under this section. 1138
Sec. 18. Section 22-61n of the general statutes is repealed and the 1139
following is substituted in lieu thereof (Effective July 1, 2023): 1140
(a) As used in this section: [, "producer", "cultivator", "micro-1141
cultivator", "product manufacturer", "hybrid retailer" and "retailer" have 1142
the same meanings as provided in section 21a-420; and "hemp", and 1143
"hemp products" have the same meanings as provided in section 22-61l] 1144
(1) "Cultivator" has the same meaning as provided in section 21a-420, 1145
as amended by this act; 1146
(2) "Dispensary facility" has the same meaning as provided in section 1147
21a-420, as amended by this act; 1148
(3) "Hemp" has the same meaning as provided in section 22-61l; 1149
(4) "Hemp products" has the same meaning as provided in section 22-1150
61l; 1151
(5) "Hybrid retailer" has the same meaning as provided in section 21a-1152
420, as amended by this act; 1153
(6) "Micro-cultivator" has the same meaning as provided in section 1154
21a-420, as amended by this act; 1155
(7) "Producer" has the same meaning as provided in section 21a-420, 1156
as amended by this act; 1157
(8) "Producer hemp product" has the same meaning as provided in 1158
section 22-61l; 1159
(9) "Product manufacturer" has the same meaning as provided in 1160
section 21a-420, as amended by this act; and 1161
(10) "Retailer" has the same meaning as provided in section 21a-420, 1162
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as amended by this act. 1163
(b) Any producer, cultivator, micro-cultivator and product 1164
manufacturer may manufacture, market, cultivate or store hemp and 1165
hemp products in accordance with the provisions of this chapter and 1166
any regulations adopted [under] pursuant to said chapter, except that a 1167
producer, cultivator, micro-cultivator and product manufacturer may 1168
obtain hemp and hemp products from a person authorized under the 1169
laws of this state or another state, territory or possession of the United 1170
States or another sovereign entity to possess and sell such hemp and 1171
hemp products. 1172
(c) Hemp or hemp products purchased by a producer, cultivator, 1173
micro-cultivator or product manufacturer from a third party shall be 1174
tracked as a separate batch throughout the manufacturing process in 1175
order to document the disposition of such hemp or hemp products. 1176
Once hemp or hemp products are received by a producer, cultivator, 1177
micro-cultivator or product manufacturer, such hemp or hemp products 1178
shall be deemed cannabis and shall comply with the requirements for 1179
cannabis contained in the applicable provisions of the general statutes 1180
and any regulations adopted [under] pursuant to such provisions. A 1181
producer, cultivator, micro-cultivator and product manufacturer shall 1182
retain a copy of the certificate of analysis for purchased hemp or hemp 1183
products and invoice and transport documents that evidence the 1184
quantity purchased and date received. 1185
(d) No hemp or producer hemp [products shall] product may be 1186
dispensed, sold or distributed within a dispensary facility that is 1187
licensed [under] pursuant to chapter 420f or the business premises of a 1188
retailer or hybrid retailer. [or a retailer.] 1189
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2023 21a-420
Sec. 2 July 1, 2023 New section
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Sec. 3 July 1, 2023 New section
Sec. 4 July 1, 2023 21a-278b(a)
Sec. 5 July 1, 2023 21a-408
Sec. 6 July 1, 2023 21a-408h
Sec. 7 July 1, 2023 21a-409
Sec. 8 July 1, 2023 21a-420b(d) and (e)
Sec. 9 July 1, 2023 21a-420d(k)
Sec. 10 July 1, 2023 21a-420e
Sec. 11 July 1, 2023 21a-420f(a) and (b)
Sec. 12 July 1, 2023 21a-420j(f)
Sec. 13 July 1, 2023 21a-420m(b) to (i)
Sec. 14 July 1, 2023 21a-420r
Sec. 15 July 1, 2023 21a-420s
Sec. 16 July 1, 2023 21a-420u(b) to (i)
Sec. 17 July 1, 2023 21a-421f
Sec. 18 July 1, 2023 22-61n
Statement of Purpose:
To: (1) Enable a licensed hemp producer to seek a cultivator or micro-
cultivator license from the Department of Consumer Protection and, if
the hemp producer receives a cultivator or micro-cultivator license,
participate in the state's adult-use cannabis market; and (2) authorize
sales of manufacturer hemp products in additional licensed facilities.
[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.]