LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700-R01- HB.docx 1 of 43 General Assembly Substitute Bill No. 6700 January Session, 2023 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 Section 21a-420 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective July 1, 2023): 2 As used in RERACA, unless the context otherwise requires: 3 (1) "Responsible and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] 21a-420j, 7 inclusive, as amended by this act, 21a-420l to 21a-421r, inclusive, 21a-8 421aa to 21a-421ff, inclusive, 21a-421aaa to [21a-421ggg] 21a-421hhh, 9 inclusive, 21a-422 to 21a-422c, inclusive, 21a-422e to 21a-422g, inclusive, 10 21a-422j to 21a-422s, inclusive, 22-61n, as amended by this act, 23-4b, 11 47a-9a, 53-247a, 53a-213a, 53a-213b, 54-33p, 54-56q, 54-56r, 54-125k and 12 54-142u, sections 23, 60, 63 to 65, inclusive, 124, 144 and 165 of public act 13 21-1 of the June special session, and the amendments in public act 21-1 14 of the June special session to sections 7-148, 10-221, 12-30a, 12-35b, 12-15 412, 12-650, 12-704d, 14-44k, 14-111e, 14-227a to 14-227c, inclusive, 14-16 227j, 15-140q, 15-140r, 18-100h, 19a-342, 19a-342a, 21a-267, 21a-277, 21a-17 279, 21a-279a, 21a-408 to 21a-408f, inclusive, as amended by this act, 21a-18 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 2 of 43 408h to 21a-408p, inclusive, as amended by this act, 21a-408r to 21a-408v, 19 inclusive, 30-89a, 31-40q, 32-39, 46b-120, 51-164n, 53-394, 53a-39c, 54-1m, 20 54-33g, 54-41b, 54-56e, 54-56g, 54-56i, 54-56k, 54-56n, 54-63d, 54-66a [,] 21 and 54-142e, [21a-421hhh and 21a-420j] 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 (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 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 3 of 43 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 Consumer 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 (15) "Department" means the Department of Consumer Protection; 76 (16) "Dispensary facility" means a place of business where cannabis 77 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 4 of 43 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 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 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 5 of 43 (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 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 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 6 of 43 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 [(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 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 7 of 43 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 [(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 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 8 of 43 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 [(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 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 9 of 43 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 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 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 10 of 43 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 licensed by the Department of Agriculture as a hemp producer 273 for the majority of the period beginning January 1, 2021, and ending 274 January 1, 2023, may apply to the Department of Consumer Protection 275 for a cultivator license or micro-cultivator license without entering the 276 lottery. Such application shall be in a form and manner prescribed by 277 the Commissioner of Consumer Protection, and shall include: 278 (1) An attestation that the applicant hemp producer has not 279 undergone any change in ownership since January 1, 2023; 280 (2) An acknowledgment and affirmation that prior to being awarded 281 a provisional cultivator or micro-cultivator license, the applicant hemp 282 producer shall surrender such hemp producer's license as a hemp 283 producer; 284 (3) The attestation required under subsection (a) of section 3 of this 285 act; and 286 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 11 of 43 (4) Any other item the commissioner deems relevant for the purposes 287 of this section. 288 (b) The Department of Consumer Protection shall not approve any 289 application submitted pursuant to subsection (a) of this section if 290 approving such application would cause the aggregate grow space of all 291 applicant hemp producers who convert to a cultivator license or micro-292 cultivator license under this section to exceed two hundred fifty 293 thousand square feet. 294 (c) No cultivator or micro-cultivator licensee shall hold a hemp 295 producer license. Upon surrender of a hemp producer license as set 296 forth in subsection (a) of this section and licensure as a cultivator or 297 micro-cultivator, all hemp inventory in such cultivator or micro-298 cultivator licensee's possession shall be deemed to be cannabis and 299 subject to all cannabis reporting, handling, security, testing and other 300 standards as set forth in applicable law. 301 (d) No hemp producer that converts to a cultivator or micro-302 cultivator under this section shall add any new owner after such 303 cultivator or micro-cultivator receives a provisional license, except such 304 cultivator or micro-cultivator may add any new owner who meets the 305 criteria established in subparagraphs (A) and (B) of subdivision (51) of 306 section 21a-420 of the general statutes, as amended by this act, not later 307 than three years after such cultivator or micro-cultivator receives a final 308 license. 309 Sec. 3. (NEW) (Effective July 1, 2023) (a) In order to pay a reduced 310 license fee as described in subdivision (14) or (15) of subsection (d) of 311 section 21a-420e of the general statutes, as amended by this act, a hemp 312 producer that is applying to convert to a cultivator or micro-cultivator 313 under section 2 of this act shall create two equity joint ventures to be 314 approved by the Social Equity Council under section 21a-420d of the 315 general statutes, as amended by this act, and licensed by the department 316 pursuant to this section, which shall be evidenced by filings with the 317 Secretary of the State, organizing documents disclosing the terms of the 318 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 12 of 43 business relationship between such applicant and such equity joint 319 ventures and an attestation to the creation of such equity joint ventures 320 on the application submitted pursuant to section 2 of this act. 321 (b) Each equity joint venture created pursuant to subsection (a) of this 322 section shall be in any cannabis establishment licensed business, other 323 than a cultivator or micro-cultivator license, provided such equity joint 324 venture is at least fifty per cent owned and controlled by an individual 325 or individuals who meet, or the equity joint venture applicant is an 326 individual who meets, the criteria established in subparagraphs (A) and 327 (B) of subdivision (51) of section 21a-420 of the general statutes, as 328 amended by this act. 329 (c) Each equity joint venture applicant described in subsection (a) of 330 this section shall submit an application to the Social Equity Council that 331 may include, but need not be limited to, evidence of business formation, 332 ownership allocation, terms of ownership and financing and proof of 333 social equity status. The equity joint venture applicant shall submit to 334 the Social Equity Council information including, but not limited to, the 335 organizing documents of the entity that outline the ownership stake of 336 each backer, initial backer investment and payout information to enable 337 the council to determine the terms of ownership. 338 (d) Upon obtaining the written approval of the Social Equity Council 339 for an equity joint venture described in subsection (a) of this section, the 340 equity joint venture applicant shall apply for a license from the 341 department in the same form as required by all other licensees of the 342 same license type, except that such application shall not be subject to the 343 lottery. 344 (e) A converted hemp producer that receives a license as a cultivator 345 or micro-cultivator under section 2 of this act, including the backers 346 listed on the conversion application of such converted hemp producer, 347 shall not increase its ownership in an equity joint venture in excess of 348 fifty per cent during the seven-year period after a license is issued by 349 the department pursuant to this section. 350 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 13 of 43 (f) Equity joint ventures that are retailers or hybrid retailers shall not 351 be located within twenty miles of another equity joint venture that 352 shares a common backer of a cultivator or micro-cultivator that receives 353 a license under section 2 of this act. 354 (g) If a converted hemp producer has paid a reduced conversion fee, 355 as described in subdivision (14) or (15) of subsection (d) of section 21a-356 420e of the general statutes, as amended by this act, and subsequently 357 did not create two equity joint ventures under this section that, not later 358 than fourteen months after the department approved the converted 359 hemp producer's cultivator or micro-cultivator license application 360 under section 2 of this act, each received a final license from the 361 department, such (1) cultivator shall be liable for the full conversion fee 362 established in subdivision (14) of subsection (d) of section 21a-420e of 363 the general statutes, as amended by this act, minus such paid reduced 364 conversion fee, or (2) micro-cultivator shall be liable for the full 365 conversion fee established in subdivision (15) of subsection (d) of section 366 21a-420e of the general statutes, as amended by this act, minus such paid 367 reduced conversion fee. 368 (h) No cultivator or micro-cultivator that receives a license under 369 section 2 of this act shall create more than two equity joint ventures. No 370 cultivator or micro-cultivator that receives a license under section 2 of 371 this act shall apply for, or create, any additional equity joint venture if 372 such licensee has created two equity joint ventures that have each 373 received a provisional license. 374 (i) An equity joint venture applicant shall pay fifty per cent of the 375 amount of any applicable fee specified in subsection (d) of section 21a-376 420e of the general statutes, as amended by this act, for the first three 377 renewal cycles of the applicable cannabis establishment license applied 378 for, and shall pay the full amount of such fee thereafter. 379 Sec. 4. Subsection (a) of section 21a-278b of the general statutes is 380 repealed and the following is substituted in lieu thereof (Effective July 1, 381 2023): 382 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 14 of 43 (a) No person may manufacture, distribute, sell, prescribe, dispense, 383 compound, transport with the intent to sell or dispense, possess with 384 the intent to sell or dispense, offer, give or administer to another person 385 cannabis or cannabis products, except as authorized in chapter 420b or 386 420f, [or] sections 21a-420n, as amended by this act, 21a-420p, as 387 amended by this act, 21a-420r to 21a-420t, inclusive, as amended by this 388 act, or 21a-420w to 21a-420z, inclusive, or section 2 of this act. 389 Sec. 5. Section 21a-408 of the general statutes is repealed and the 390 following is substituted in lieu thereof (Effective July 1, 2023): 391 As used in this section, sections 21a-408a to 21a-408o, inclusive, and 392 sections 21a-408r to 21a-408v, inclusive, unless the context otherwise 393 requires: 394 (1) "Advanced practice registered nurse" means an advanced practice 395 registered nurse licensed pursuant to chapter 378; 396 (2) "Cannabis establishment" has the same meaning as provided in 397 section 21a-420, as amended by this act; 398 (3) "Caregiver" means a person, other than the qualifying patient and 399 the qualifying patient's physician, physician assistant or advanced 400 practice registered nurse, who is eighteen years of age or older and has 401 agreed to undertake responsibility for managing the well-being of the 402 qualifying patient with respect to the palliative use of marijuana, 403 provided (A) in the case of a qualifying patient who is (i) under eighteen 404 years of age and not an emancipated minor, or (ii) otherwise lacking 405 legal capacity, such person shall be a parent, guardian or person having 406 legal custody of such qualifying patient, and (B) in the case of a 407 qualifying patient who is eighteen years of age or older or an 408 emancipated minor, the need for such person shall be evaluated by the 409 qualifying patient's physician, physician assistant or advanced practice 410 registered nurse and such need shall be documented in the written 411 certification; 412 [(3)] (4) "Cultivation" includes planting, propagating, cultivating, 413 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 15 of 43 growing and harvesting; 414 [(4)] (5) "Debilitating medical condition" means (A) cancer, glaucoma, 415 positive status for human immunodeficiency virus or acquired immune 416 deficiency syndrome, Parkinson's disease, multiple sclerosis, damage to 417 the nervous tissue of the spinal cord with objective neurological 418 indication of intractable spasticity, epilepsy or uncontrolled intractable 419 seizure disorder, cachexia, wasting syndrome, Crohn's disease, 420 posttraumatic stress disorder, irreversible spinal cord injury with 421 objective neurological indication of intractable spasticity, cerebral palsy, 422 cystic fibrosis or terminal illness requiring end-of-life care, except, if the 423 qualifying patient is under eighteen years of age, "debilitating medical 424 condition" means terminal illness requiring end-of-life care, irreversible 425 spinal cord injury with objective neurological indication of intractable 426 spasticity, cerebral palsy, cystic fibrosis, severe epilepsy or uncontrolled 427 intractable seizure disorder, or (B) any medical condition, medical 428 treatment or disease approved for qualifying patients by the 429 Department of Consumer Protection and posted online pursuant to 430 section 21a-408l; 431 [(5)] (6) "Dispensary facility" means a place of business (A) for which 432 the department has issued a dispensary facility license pursuant to this 433 chapter, and (B) where marijuana may be dispensed, sold or distributed 434 in accordance with this chapter and any regulations adopted 435 [thereunder] pursuant to this chapter to qualifying patients and 436 caregivers; [and for which the department has issued a dispensary 437 facility license pursuant to this chapter;] 438 [(6)] (7) "Employee" has the same meaning as provided in section 21a-439 420, as amended by this act; 440 (8) "Hemp manufacturer" means manufacturer, as defined in section 441 22-61l; 442 [(7)] (9) "Institutional animal care and use committee" means a 443 committee that oversees an organization's animal program, facilities 444 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 16 of 43 and procedures to ensure compliance with federal policies, guidelines 445 and principles related to the care and use of animals in research; 446 [(8)] (10) "Institutional review board" means a specifically constituted 447 review body established or designated by an organization to protect the 448 rights and welfare of persons recruited to participate in biomedical, 449 behavioral or social science research; 450 [(9)] (11) "Laboratory" means a laboratory located in the state that is 451 licensed by the department to provide analysis of marijuana and that 452 meets the licensure requirements set forth in section 21a-246; 453 [(10)] (12) "Laboratory employee" means a person who is registered 454 as a laboratory employee pursuant to section 21a-408r; 455 [(11)] (13) "Licensed dispensary" or "dispensary" means an individual 456 who is a licensed pharmacist employed by a dispensary facility or 457 hybrid retailer; 458 [(12) "Producer" means a person who is licensed as a producer 459 pursuant to section 21a-408i;] 460 (14) "Manufacturer hemp product" has the same meaning as 461 provided in section 22-61l; 462 [(13)] (15) "Marijuana" means marijuana, as defined in section 21a-463 240; 464 [(14)] (16) "Nurse" means a person who is licensed as a nurse [under] 465 pursuant to chapter 378; 466 [(15)] (17) "Palliative use" means the acquisition, distribution, 467 transfer, possession, use or transportation of marijuana or paraphernalia 468 relating to marijuana, including the transfer of marijuana and 469 paraphernalia relating to marijuana from the patient's caregiver to the 470 qualifying patient, to alleviate a qualifying patient's symptoms of a 471 debilitating medical condition or the effects of such symptoms, but does 472 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 17 of 43 not include any such use of marijuana by any person other than the 473 qualifying patient; 474 [(16)] (18) "Paraphernalia" means drug paraphernalia, as defined in 475 section 21a-240; 476 [(17)] (19) "Physician" means a person who is licensed as a physician 477 [under] pursuant to chapter 370; 478 [(18)] (20) "Physician assistant" means a person who is licensed as a 479 physician assistant [under] pursuant to chapter 370; 480 [(19) "Caregiver" means a person, other than the qualifying patient 481 and the qualifying patient's physician, physician assistant or advanced 482 practice registered nurse, who is eighteen years of age or older and has 483 agreed to undertake responsibility for managing the well-being of the 484 qualifying patient with respect to the palliative use of marijuana, 485 provided (A) in the case of a qualifying patient (i) under eighteen years 486 of age and not an emancipated minor, or (ii) otherwise lacking legal 487 capacity, such person shall be a parent, guardian or person having legal 488 custody of such qualifying patient, and (B) in the case of a qualifying 489 patient eighteen years of age or older or an emancipated minor, the need 490 for such person shall be evaluated by the qualifying patient's physician, 491 physician assistant or advanced practice registered nurse and such need 492 shall be documented in the written certification;] 493 (21) "Producer" means a person who is licensed as a producer 494 pursuant to section 21a-408i; 495 [(20)] (22) "Qualifying patient" means a person who: (A) Is a resident 496 of Connecticut, (B) has been diagnosed by a physician, physician 497 assistant or advanced practice registered nurse as having a debilitating 498 medical condition, and (C) (i) is eighteen years of age or older, (ii) is an 499 emancipated minor, or (iii) has written consent from a custodial parent, 500 guardian or other person having legal custody of such person that 501 indicates that such person has permission from such parent, guardian 502 or other person for the palliative use of marijuana for a debilitating 503 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 18 of 43 medical condition and that such parent, guardian or other person will 504 (I) serve as a caregiver for the qualifying patient, and (II) control the 505 acquisition and possession of marijuana and any related paraphernalia 506 for palliative use on behalf of such person. "Qualifying patient" does not 507 include an inmate confined in a correctional institution or facility under 508 the supervision of the Department of Correction; 509 [(21)] (23) "Research program" means a study approved by the 510 Department of Consumer Protection in accordance with this chapter 511 and undertaken to increase information or knowledge regarding the 512 growth or processing of marijuana, or the medical attributes, dosage 513 forms, administration or use of marijuana to treat or alleviate symptoms 514 of any medical conditions or the effects of such symptoms; 515 [(22)] (24) "Research program employee" means a person who (A) is 516 registered as a research program employee [under] pursuant to section 517 21a-408t, or (B) holds a temporary certificate of registration issued 518 pursuant to section 21a-408t; 519 [(23)] (25) "Research program subject" means a person registered as a 520 research program subject pursuant to section 21a-408v; 521 [(24)] (26) "Usable marijuana" means the dried leaves and flowers of 522 the marijuana plant, and any mixtures or preparations of such leaves 523 and flowers, that are appropriate for the palliative use of marijuana, but 524 does not include the seeds, stalks and roots of the marijuana plant; and 525 [(25)] (27) "Written certification" means a written certification issued 526 by a physician, physician assistant or advanced practice registered 527 nurse pursuant to section 21a-408c. 528 Sec. 6. Section 21a-408h of the general statutes is repealed and the 529 following is substituted in lieu thereof (Effective July 1, 2023): 530 (a) No person may act as a dispensary or represent that such person 531 is a licensed dispensary unless such person has obtained a license from 532 the Commissioner of Consumer Protection pursuant to this section. 533 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 19 of 43 (b) No person may act as a dispensary facility or represent that such 534 person is a licensed dispensary facility unless such person has obtained 535 a license from the Commissioner of Consumer Protection pursuant to 536 this section. 537 (c) (1) The Commissioner of Consumer Protection shall determine the 538 number of dispensary facilities appropriate to meet the needs of 539 qualifying patients in this state and shall adopt regulations, in 540 accordance with chapter 54, to provide for the licensure and standards 541 for dispensary facilities in this state and specify the maximum number 542 of dispensary facilities that may be licensed in this state. On and after 543 the effective date of such regulations, the commissioner may license any 544 person who applies for a license in accordance with such regulations, 545 provided the commissioner deems such applicant qualified to acquire, 546 possess, distribute and dispense marijuana pursuant to sections 21a-408 547 to 21a-408m, inclusive, as amended by this act. At a minimum, such 548 regulations shall: 549 [(1)] (A) Indicate the maximum number of dispensary facilities that 550 may be licensed in this state; 551 [(2)] (B) Provide that no marijuana may be dispensed from, obtained 552 from or transferred to a location outside of this state; 553 [(3)] (C) Establish a licensing fee and renewal fee for each dispensary 554 facility, provided such fees shall not be less than the amount necessary 555 to cover the direct and indirect cost of licensing and regulating 556 dispensary facilities pursuant to sections 21a-408 to 21a-408m, inclusive, 557 as amended by this act; 558 [(4)] (D) Provide for renewal of such dispensary facility licenses at 559 least every two years; 560 [(5)] (E) Describe areas in this state where dispensary facilities may 561 not be located, after considering the criteria for the location of retail 562 liquor permit premises set forth in subsection (a) of section 30-46; 563 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 20 of 43 [(6)] (F) Establish health, safety and security requirements for 564 dispensary facilities, which may include, but need not be limited to: 565 [(A)] (i) The ability to maintain adequate control against the diversion, 566 theft and loss of marijuana acquired or possessed by the dispensary 567 facility, and [(B)] (ii) the ability to maintain the knowledge, 568 understanding, judgment, procedures, security controls and ethics to 569 ensure optimal safety and accuracy in the distributing, dispensing and 570 use of palliative marijuana; 571 [(7)] (G) Establish standards and procedures for revocation, 572 suspension, summary suspension and nonrenewal of dispensary facility 573 licenses, provided such standards and procedures are consistent with 574 the provisions of subsection (c) of section 4-182; and 575 [(8)] (H) Establish other licensing, renewal and operational standards 576 deemed necessary by the commissioner. 577 (2) Notwithstanding the requirements of sections 4-168 to 4-172, 578 inclusive, in order to effectuate the purposes of this subsection and 579 protect public health and safety, the commissioner, prior to amending 580 any regulations adopted pursuant to subdivision (1) of this subsection, 581 shall issue policies and procedures to implement the provisions of this 582 subsection, which policies and procedures shall have the force and effect 583 of law. The commissioner shall post each such policy or procedure on 584 the department's Internet web site, and submit such policy or procedure 585 to the Secretary of the State for posting on the eRegulations System, at 586 least fifteen days prior to the effective date of such policy or procedure. 587 Any such policy or procedure shall no longer be effective upon the 588 earlier of either the adoption of such policy or procedure as a final 589 regulation pursuant to section 4-172 or June 30, 2027, if such regulations 590 have not been submitted to the legislative regulation review committee 591 for consideration under section 4-170. Not later than January 1, 2024, the 592 commissioner shall issue policies and procedures to permit dispensary 593 facilities licensed pursuant to this chapter to acquire manufacturer 594 hemp products from hemp manufacturers, and sell such manufacturer 595 hemp products to qualifying patients and caregivers in accordance with 596 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 21 of 43 this chapter, chapter 424 and any regulations adopted pursuant to said 597 chapters. At a minimum, such regulations shall require that each such 598 manufacturer hemp product be: 599 (A) Labeled in a manner that indicates that such manufacturer hemp 600 product is (i) a manufacturer hemp product, (ii) subject to different 601 testing standards than marijuana, and (iii) not marijuana; and 602 (B) Stored separately from marijuana and displayed with signage 603 approved by the department. 604 (d) Any fees collected by the Department of Consumer Protection 605 under this section shall be paid to the State Treasurer and credited to the 606 General Fund. 607 [(e) On or before January 1, 2017, and annually thereafter, each 608 dispensary facility shall report data to the Department of Consumer 609 Protection relating to the types, mixtures and dosages of palliative 610 marijuana dispensed by such dispensary facility. A report prepared 611 pursuant to this subsection shall be in such form as may be prescribed 612 by the Commissioner of Consumer Protection.] 613 Sec. 7. Section 21a-409 of the general statutes is repealed and the 614 following is substituted in lieu thereof (Effective July 1, 2023): 615 (a) As used in this section, "producer" has the same meaning as 616 provided in section 21a-408, as amended by this act, and "manufacture", 617 "market", "cultivate", "hemp", "hemp products", [and] "manufacturer 618 hemp products" and "producer hemp products" have the same 619 meanings as provided in section 22-61l. Any producer licensed [under] 620 pursuant to section 21a-408, as amended by this act, shall manufacture, 621 market, cultivate or store hemp and manufacturer hemp products in 622 accordance with the provisions of this chapter and any regulations 623 adopted [under] pursuant to this chapter. Producers may obtain hemp 624 and manufacturer hemp products from a person authorized under the 625 laws of this state or another state, territory or possession of the United 626 States or another sovereign entity to possess and sell such hemp and 627 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 22 of 43 manufacturer hemp products. 628 (b) Hemp or manufacturer hemp products purchased by producers 629 from third parties shall be tracked as a separate batch throughout the 630 manufacturing process in order to document the disposition of such 631 hemp or manufacturer hemp products. Hemp or manufacturer hemp 632 products obtained, manufactured, marketed, cultivated or stored by a 633 producer shall be deemed marijuana and shall comply with the 634 requirements for marijuana contained in the applicable provisions of the 635 general statutes and any regulations adopted [under] pursuant to such 636 provisions. Producers shall retain a copy of the certificate of analysis for 637 purchased hemp or manufacturer hemp products and invoice and 638 transport documents that evidence the quantity purchased and date 639 received. 640 (c) (1) No hemp or producer hemp products shall be sold or 641 distributed within a dispensary facility that is licensed [under] pursuant 642 to this chapter. 643 (2) Notwithstanding subdivision (1) of this subsection, manufacturer 644 hemp products may be sold within a dispensary facility that is licensed 645 pursuant to this chapter, provided such manufacturer hemp products 646 are (A) sold from a location within the dispensary facility that is separate 647 from the area within such dispensary facility where marijuana is sold, 648 (B) labeled as hemp products that are not subject to marijuana testing 649 standards, and (C) sold in accordance with this chapter, chapter 424 and 650 any regulations adopted pursuant to said chapters. 651 Sec. 8. Subsections (d) and (e) of section 21a-420b of the general 652 statutes are repealed and the following is substituted in lieu thereof 653 (Effective July 1, 2023): 654 (d) No law enforcement officer employed by an agency that receives 655 state or local government funds shall expend state or local resources, 656 including the officer's time, to effect any arrest or seizure of cannabis, or 657 conduct any investigation, on the sole basis of activity the officer 658 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 23 of 43 believes to constitute a violation of federal law if the officer has reason 659 to believe that such activity is in compliance with this section and 660 sections 21a-420a, 21a-420c to 21a-420i, inclusive, 21a-420l to 21a-420n, 661 inclusive, as amended by this act, 21a-420p, as amended by this act, to 662 21a-420t, inclusive, 21a-420v to 21a-421c, inclusive, 21a-421f, as 663 amended by this act, 21a-421g, 21a-421j to 21a-421q, inclusive, 21a-421aa 664 to 21a-421dd, inclusive, 21a-422k and 53-247a, [and] sections 23, 60 and 665 63 to 65, inclusive, of public act 21-1 of the June special session, [or] 666 chapter 420f or section 2 of this act. 667 (e) An officer may not expend state or local resources, including the 668 officer's time, to provide any information or logistical support to any 669 federal law enforcement authority or prosecuting entity related to 670 activity the officer believes to constitute a violation of federal law if the 671 officer has reason to believe that such activity is in compliance with the 672 provisions of this section and sections 21a-420a, 21a-420c to 21a-420i, 673 inclusive, 21a-420l to 21a-420n, inclusive, as amended by this act, 21a-674 420p to 21a-420t, inclusive, as amended by this act, 21a-420v to 21a-421c, 675 inclusive, 21-421f, 21a-421g, 21a-421j to 21a-421q, inclusive, 21a-421aa to 676 21a-421dd, inclusive, 21a-422k and 53-247a, [and] sections 23, 60 and 63 677 to 65, inclusive, of public act 21-1 of the June special session, [or] chapter 678 420f or section 2 of this act. 679 Sec. 9. Subsection (k) of section 21a-420d of the general statutes is 680 repealed and the following is substituted in lieu thereof (Effective July 1, 681 2023): 682 (k) The council shall develop criteria for evaluating the ownership 683 and control of any equity joint venture created under section 21a-420m, 684 as amended by this act, 21a-420u, as amended by this act, or [section] 685 21a-420j, as amended by this act, or section 3 of this act and shall review 686 and approve or deny in writing such equity joint venture prior to such 687 equity joint venture being licensed [under] pursuant to section 21a-688 420m, as amended by this act, 21a-420u, as amended by this act, or 689 [section] 21a-420j, as amended by this act, or section 3 of this act. After 690 developing criteria for social equity plans as described in subdivision 691 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 24 of 43 (5) of subsection (h) of this section, the council shall review and approve 692 or deny in writing any such plan submitted by a cannabis establishment 693 as part of its final license application. The council shall not approve any 694 equity joint venture applicant which shares with an equity joint venture 695 any individual owner who meets the criteria established in 696 subparagraphs (A) and (B) of subdivision [(48)] (51) of section 21a-420, 697 as amended by this act. 698 Sec. 10. Section 21a-420e of the general statutes is repealed and the 699 following is substituted in lieu thereof (Effective July 1, 2023): 700 (a) Not later than thirty days after the date that the Social Equity 701 Council identifies the criteria and the necessary supporting 702 documentation for social equity applicants and posts such information 703 on its Internet web site, the department may accept applications for the 704 following cannabis establishment license types: (1) Retailer, (2) hybrid 705 retailer, (3) cultivator, (4) micro-cultivator, (5) product manufacturer, (6) 706 food and beverage manufacturer, (7) product packager, (8) delivery 707 service, and (9) transporter. Each application for licensure shall require 708 the applicant to indicate whether the applicant wants to be considered 709 for treatment as a social equity applicant. 710 (b) On and after July 1, 2021, the department may accept applications 711 from any dispensary facility to convert its license to a hybrid-retailer 712 license and any producer for expanded authorization to engage in the 713 adult use cannabis market under its license issued pursuant to section 714 21a-408i. 715 (c) During the period beginning October 1, 2023, and ending 716 December 31, 2023, the department shall accept applications from any 717 hemp producer to become licensed as a cultivator or micro-cultivator 718 under section 2 of this act. 719 [(c)] (d) Except as provided in subsection [(e)] (f) of this section, the 720 following fees shall be paid by each applicant: 721 (1) For a retailer license, the fee to enter the lottery shall be five 722 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 25 of 43 hundred dollars, the fee to receive a provisional license shall be five 723 thousand dollars and the fee to receive a final license or a renewal of a 724 final license shall be twenty-five thousand dollars. 725 (2) For a hybrid retailer license, the fee to enter the lottery shall be five 726 hundred dollars, the fee to receive a provisional license shall be five 727 thousand dollars and the fee to receive a final license or a renewal of a 728 final license shall be twenty-five thousand dollars. 729 (3) For a cultivator license, the fee to enter the lottery shall be one 730 thousand dollars, the fee to receive a provisional license shall be twenty-731 five thousand dollars and the fee to receive a final license or a renewal 732 of a final license shall be seventy-five thousand dollars. 733 (4) For a micro-cultivator license, the fee to enter the lottery shall be 734 two hundred fifty dollars, the fee to receive a provisional license shall 735 be five hundred dollars and the fee to receive a final license or a renewal 736 of a final license shall be one thousand dollars. 737 (5) For a product manufacturer license, the fee to enter the lottery 738 shall be seven hundred fifty dollars, the fee to receive a provisional 739 license shall be five thousand dollars and the fee to receive a final license 740 or a renewal of a final license shall be twenty-five thousand dollars. 741 (6) For a food and beverage manufacturer 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 (7) For a product packager license, the fee to enter the lottery shall be 746 five hundred dollars, the fee to receive a provisional license shall be five 747 thousand dollars and the fee to receive a final license or a renewal of a 748 final license shall be twenty-five thousand dollars. 749 (8) For a delivery service or transporter license, the fee to enter the 750 lottery shall be two hundred fifty dollars, the fee to receive a provisional 751 license shall be one thousand dollars and the fee to receive a final license 752 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 26 of 43 or a renewal of a final license shall be five thousand dollars. 753 (9) For an initial or renewal of a backer license, the fee shall be one 754 hundred dollars. 755 (10) For an initial or renewal of a key employee license, the fee shall 756 be one hundred dollars. 757 (11) For an initial or renewal of a registration of an employee who is 758 not a key employee, the fee shall be fifty dollars. 759 (12) The license conversion fee for a dispensary facility to become a 760 hybrid retailer shall be one million dollars, except as provided in section 761 21a-420u, as amended by this act. 762 (13) The license conversion fee for a producer to engage in the adult 763 use cannabis market shall be three million dollars, except as provided in 764 section 21a-420l. 765 (14) For a hemp producer that converts to a cultivator license under 766 section 2 of this act, (A) the fee to receive an initial license shall be twelve 767 dollars per square foot of grow space, provided, if the hemp producer 768 participates in two approved equity joint ventures as described in 769 section 3 of this act, such fee shall be six dollars per square foot of grow 770 space, and (B) the fee to receive a renewal of a license shall be the same 771 as the renewal fee established in subdivision (3) of this subsection. 772 (15) For a hemp producer that converts to a micro-cultivator license 773 under section 2 of this act, (A) the fee to receive an initial license shall be 774 twelve dollars per square foot of grow space, provided, if the hemp 775 producer participates in two approved equity joint ventures as 776 described in section 3 of this act, such fee shall be six dollars per square 777 foot of grow space, and (B) the fee to receive renewal of a final license 778 shall be the same as the renewal fee established in subdivision (4) of this 779 subsection. 780 [(d)] (e) For any dispensary facility that has become a hybrid retailer, 781 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 27 of 43 the renewal fee shall be the same as the fee for a hybrid retailer set forth 782 in subdivision (2) of subsection [(c)] (d) of this section. For any producer, 783 the renewal fee shall be the same as set forth in section 21a-408i. A social 784 equity applicant shall pay fifty per cent of the amount of any of the fees 785 specified in subsection [(c)] (d) of this section for the first three renewal 786 cycles of the applicable cannabis establishment license applied for, and 787 the full amount thereafter, provided in the case of the fees set forth in 788 subdivisions (12) and (13) of subsection [(c)] (d) of this section, a social 789 equity applicant shall pay the full amount of the fee. 790 [(e)] (f) (1) For the fiscal year ending June 30, 2023, [and thereafter,] 791 the fees collected by the department under this section shall be paid to 792 the State Treasurer and credited to the General Fund, except that the fees 793 collected under subdivisions (12) and (13) of subsection [(c)] (d) of this 794 section shall be deposited in the Social Equity and Innovation Fund 795 established under section 21a-420f, as amended by this act. 796 (2) For the fiscal year ending June 30, 2024, and thereafter, the fees 797 collected by the department under this section shall be paid to the State 798 Treasurer and credited to the General Fund, except that the fees 799 collected under subdivisions (12) to (15), inclusive, of subsection (d) of 800 this section shall be deposited in the Social Equity and Innovation Fund 801 established under section 21a-420f, as amended by this act. 802 [(f)] (g) For each license type: 803 (1) Applicants shall apply on a form and in a manner prescribed by 804 the commissioner, which form shall include a method for the applicant 805 to request consideration as a social equity applicant; and 806 (2) The department shall post on its Internet web site the application 807 period, which shall specify the first and last date that the department 808 will accept applications for that license type. The first date that the 809 department shall accept applications shall be no sooner than thirty days 810 after the date the Social Equity Council posts the criteria and supporting 811 documentation necessary to qualify for consideration as a social equity 812 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 28 of 43 applicant as set forth in section 21a-420g. Only complete license 813 applications received by the department during the application period 814 shall be considered. 815 Sec. 11. Subsections (a) and (b) of section 21a-420f of the general 816 statutes are repealed and the following is substituted in lieu thereof 817 (Effective July 1, 2023): 818 (a) (1) There is established an account to be known as the "cannabis 819 regulatory and investment account" which shall be a separate, 820 nonlapsing account within the General Fund. The account shall contain 821 any moneys required by law to be deposited in the account. Moneys in 822 the account shall be allocated by the Secretary of the Office of Policy and 823 Management, in consultation with the Social Equity Council, as defined 824 in section 21a-420, as amended by this act, to state agencies for the 825 purpose of paying costs incurred to implement the activities authorized 826 under RERACA, as defined in section 21a-420, as amended by this act. 827 (2) Notwithstanding the provisions of section 21a-420e, as amended 828 by this act, for the fiscal years ending June 30, 2022, and June 30, 2023, 829 the following shall be deposited in the cannabis regulatory and 830 investment account: (A) All fees received by the state pursuant to 831 section 21a-421b and subdivisions (1) to (11), inclusive, of subsection 832 [(c)] (d) of section 21a-420e, as amended by this act; (B) the tax received 833 by the state under section 12-330ll; and (C) the tax received by the state 834 under chapter 219 from a cannabis retailer, hybrid retailer or micro-835 cultivator, as those terms are defined in section 12-330ll. 836 (3) At the end of the fiscal year ending June 30, 2023, all moneys 837 remaining in the cannabis regulatory and investment account shall be 838 transferred to the General Fund. 839 (b) (1) There is established an account to be known as the "social 840 equity and innovation account" which shall be a separate, nonlapsing 841 account within the General Fund. The account shall contain any moneys 842 required by law to be deposited in the account. Moneys in the account 843 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 29 of 43 shall be allocated by the Secretary of the Office of Policy and 844 Management, in consultation with the Social Equity Council, to state 845 agencies for the purpose of (A) paying costs incurred by the Social 846 Equity Council, (B) administering programs under RERACA to provide 847 (i) access to capital for businesses, (ii) technical assistance for the start-848 up and operation of a business, (iii) funding for workforce education, 849 and (iv) funding for community investments, and (C) paying costs 850 incurred to implement the activities authorized under RERACA. 851 (2) Notwithstanding the provisions of sections 21a-420e, as amended 852 by this act, and 21a-420o, for the fiscal years ending June 30, 2022, and 853 June 30, 2023, the following shall be deposited in the social equity and 854 innovation account: All fees received by the state pursuant to sections 855 21a-420l, 21a-420o and 21a-420u, as amended by this act, and 856 subdivisions (12) and (13) of subsection [(c)] (d) of section 21a-420e, as 857 amended by this act. 858 (3) At the end of the fiscal year ending June 30, 2023, five million 859 dollars shall be transferred from the social equity and innovation 860 account to the General Fund, or, if the account contains less than five 861 million dollars, all remaining moneys in the account. All moneys in the 862 account not transferred to the General Fund pursuant to this 863 subdivision shall be transferred to the Social Equity and Innovation 864 Fund established under subsection (c) of this section. 865 Sec. 12. Subsection (f) of section 21a-420j of the general statutes is 866 repealed and the following is substituted in lieu thereof (Effective July 1, 867 2023): 868 (f) An equity joint venture applicant shall pay fifty per cent of the 869 amount of any applicable fee specified in subsection [(c)] (d) of section 870 21a-420e, as amended by this act, for the first three renewal cycles of the 871 applicable cannabis establishment license applied for, and shall pay the 872 full amount of such fee thereafter. 873 Sec. 13. Subsections (b) to (i), inclusive, of section 21a-420m of the 874 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 30 of 43 general statutes are repealed and the following is substituted in lieu 875 thereof (Effective July 1, 2023): 876 (b) The equity joint venture shall be in any cannabis establishment 877 licensed business, other than a cultivator license, provided such equity 878 joint venture is at least fifty per cent owned and controlled by an 879 individual or individuals who meet, or the equity joint venture 880 applicant is an individual who meets, the criteria established in 881 subparagraphs (A) and (B) of subdivision [(48)] (51) of section 21a-420, 882 as amended by this act. 883 (c) The equity joint venture applicant shall submit an application to 884 the Social Equity Council that may include, but need not be limited to, 885 evidence of business formation, ownership allocation, terms of 886 ownership and financing and proof of social equity status. The equity 887 joint venture applicant shall submit to the Social Equity Council 888 information including, but not limited to, the organizing documents of 889 the entity that outline the ownership stake of each backer, initial backer 890 investment and payout information to enable the council to determine 891 the terms of ownership. 892 (d) Upon obtaining the written approval of the Social Equity Council 893 for an equity joint venture, the equity joint venture applicant shall apply 894 for a license from the department in the same form as required by all 895 other licensees of the same license type, except that such application 896 shall not be subject to the lottery. 897 (e) A producer, including the backer of such producer, shall not 898 increase its ownership in an equity joint venture in excess of fifty per 899 cent during the seven-year period after a license is issued by the 900 department [under] pursuant to this section. 901 (f) Equity joint ventures that share a common producer or producer 902 backer and that are retailers or hybrid retailers shall not be located 903 within twenty miles of another commonly owned equity joint venture. 904 (g) If a producer has paid a reduced conversion fee, as described in 905 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 31 of 43 subsection (b) of section 21a-420l, and subsequently did not create two 906 equity joint ventures under this section that, not later than fourteen 907 months after the Department of Consumer Protection approved the 908 producer's license expansion application under section 21a-420l, each 909 received a final license from the department, the producer shall be liable 910 for the full conversion fee of three million dollars established in section 911 21a-420l minus such paid reduced conversion fee. 912 (h) No producer that receives license expansion authorization under 913 section 21a-420l shall create more than two equity joint ventures. No 914 such producer shall apply for, or create, any additional equity joint 915 venture if, on the effective date of this section, such producer has created 916 at least two equity joint ventures that have each received a provisional 917 license. 918 (i) An equity joint venture applicant shall pay fifty per cent of the 919 amount of any applicable fee specified in subsection [(c)] (d) of section 920 21a-420e, as amended by this act, for the first three renewal cycles of the 921 applicable cannabis establishment license applied for, and shall pay the 922 full amount of such fee thereafter. 923 Sec. 14. Subsection (b) of section 21a-420n of the general statutes is 924 repealed and the following is substituted in lieu thereof (Effective July 1, 925 2023): 926 (b) A cultivator is authorized to cultivate, grow and propagate 927 cannabis at an establishment containing not less than fifteen thousand 928 square feet of grow space, provided such cultivator complies with the 929 provisions of any regulations adopted under section 21a-420q, as 930 amended by this act, concerning grow space. A cultivator establishment 931 shall meet physical security controls and protocols set forth and 932 required by the commissioner. A cultivator that converts under section 933 2 of this act shall not cultivate, grow or propagate cannabis at an 934 establishment containing more than eighty thousand square feet of 935 grow space. 936 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 32 of 43 Sec. 15. Subsection (c) of section 21a-420p of the general statutes is 937 repealed and the following is substituted in lieu thereof (Effective July 1, 938 2023): 939 (c) A micro-cultivator may apply for expansion of its grow space, in 940 increments of five thousand square feet, on an annual basis, from the 941 date of initial licensure, if such licensee is not subject to any pending or 942 final administrative actions or judicial findings. If there are any pending 943 or final administrative actions or judicial findings against the licensee, 944 the department shall conduct a suitability review to determine whether 945 such expansion shall be granted, which determination shall be final and 946 appealable only to the Superior Court. The micro-cultivator may apply 947 for an expansion of its business annually upon renewal of its credential 948 until such licensee reaches a maximum of twenty-five thousand square 949 feet of grow space or, if such licensee converted under section 2 of this 950 act, a maximum of ten thousand square feet of grow space. If a micro-951 cultivator desires to expand beyond twenty-five thousand square feet of 952 grow space, the micro-cultivator licensee may apply for a cultivator 953 license one year after its last expansion request. The micro-cultivator 954 licensee shall not be required to apply through the lottery application 955 process to convert its license to a cultivator license. If a micro-cultivator 956 maintains its license and meets all of the application and licensure 957 requirements for a cultivator license, including payment of the 958 cultivator license fee established under section 21a-420e, as amended by 959 this act, the micro-cultivator licensee shall be granted a cultivator 960 license. 961 Sec. 16. Section 21a-420q of the general statutes is repealed and the 962 following is substituted in lieu thereof (Effective July 1, 2023): 963 The commissioner shall adopt regulations, in accordance with the 964 provisions of chapter 54, to establish the maximum grow space 965 permitted by a cultivator and micro-cultivator. Such regulations shall 966 not permit a cultivator or micro-cultivator that converts under section 2 967 of this act to cultivate more than eighty thousand square feet or ten 968 thousand square feet of grow space, respectively, or the aggregate grow 969 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 33 of 43 space of all cultivators and micro-cultivators that convert under said 970 section 2 of this act to exceed two hundred fifty thousand square feet. In 971 adopting such regulations, the commissioner shall seek to ensure an 972 adequate supply of cannabis for the market. Notwithstanding the 973 requirements of sections 4-168 to 4-172, inclusive, in order to effectuate 974 this section, prior to adopting such regulations, the commissioner shall 975 issue policies and procedures to implement the provisions of this section 976 that shall have the force and effect of law. The commissioner shall post 977 all policies and procedures on the department's Internet web site and 978 submit such policies and procedures to the Secretary of the State for 979 posting on the eRegulations System, at least fifteen days prior to the 980 effective date of any policy or procedure. Any such policy or procedure 981 shall no longer be effective upon the earlier of either the adoption of the 982 policy or procedure as a final regulation under section 4-172 or forty-983 eight months from July 1, 2021, if such regulations have not been 984 submitted to the legislative regulation review committee for 985 consideration under section 4-170. 986 Sec. 17. Section 21a-420r of the general statutes is repealed and the 987 following is substituted in lieu thereof (Effective July 1, 2023): 988 (a) On and after July 1, 2021, the department may issue or renew a 989 license for a person to be a retailer. No person may act as a retailer or 990 represent that such person is a retailer unless such person has obtained 991 a license from the department pursuant to this section. 992 (b) A retailer may obtain cannabis from a cultivator, micro-cultivator, 993 producer, product packager, food and beverage manufacturer, product 994 manufacturer or transporter or an undeliverable return from a delivery 995 service. A retailer may sell, transport or transfer cannabis or cannabis 996 products to a delivery service, laboratory or research program. A retailer 997 may sell cannabis to a consumer or research program. A retailer may 998 not conduct sales of medical marijuana products nor offer discounts or 999 other inducements to qualifying patients or caregivers. A retailer shall 1000 not gift or transfer cannabis at no cost to a consumer as part of a 1001 commercial transaction. 1002 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 34 of 43 (c) Retailers shall maintain a secure location, in a manner approved 1003 by the commissioner, at the licensee's premises where cannabis that is 1004 unable to be delivered by an employee or delivery service may be 1005 returned to the retailer. Such secure cannabis return location shall meet 1006 specifications set forth by the commissioner and published on the 1007 department's Internet web site or included in regulations adopted by 1008 the department. 1009 (d) A retailer may deliver cannabis through a delivery service or by 1010 utilizing its own employees, subject to the provisions of subsection (b) 1011 of section 21a-420c. 1012 (e) Notwithstanding the requirements of sections 4-168 to 4-172, 1013 inclusive, in order to effectuate the purposes of this section and protect 1014 public health and safety, the commissioner, prior to amending any 1015 regulations adopted pursuant to chapter 54 to implement the provisions 1016 of this section, shall issue policies and procedures to implement the 1017 provisions of this section, which policies and procedures shall have the 1018 force and effect of law. The commissioner shall post each such policy or 1019 procedure on the department's Internet web site, and submit such policy 1020 or procedure to the Secretary of the State for posting on the eRegulations 1021 System, at least fifteen days prior to the effective date of such policy or 1022 procedure. Any such policy or procedure shall no longer be effective 1023 upon the earlier of either the adoption of such policy or procedure as a 1024 final regulation pursuant to section 4-172 or June 30, 2027, if such 1025 regulations have not been submitted to the legislative regulation review 1026 committee for consideration under section 4-170. At a minimum, such 1027 policies, procedures and regulations shall require that each 1028 manufacturer hemp product be: 1029 (1) Labeled in a manner that indicates that such manufacturer hemp 1030 product is (A) a manufacturer hemp product, (B) subject to different 1031 testing standards than cannabis, and (C) not cannabis or a cannabis 1032 product; and 1033 (2) Stored separately from cannabis and cannabis products and 1034 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 35 of 43 displayed with signage approved by the department. 1035 Sec. 18. Section 21a-420s of the general statutes is repealed and the 1036 following is substituted in lieu thereof (Effective July 1, 2023): 1037 (a) On and after July 1, 2021, the department may issue or renew a 1038 license for a hybrid retailer. No person may act as a hybrid retailer or 1039 represent that such person is a hybrid retailer unless such person has 1040 obtained a license from the department pursuant to this section. 1041 (b) A hybrid retailer may obtain cannabis from a cultivator, micro-1042 cultivator, producer, product packager, food and beverage 1043 manufacturer, product manufacturer or transporter. In addition to the 1044 activities authorized under section 21a-420t, a hybrid retailer may sell, 1045 transport or transfer cannabis to a delivery service, laboratory or 1046 research program. A hybrid retailer may sell cannabis products to a 1047 consumer or research program. A hybrid retailer shall not gift or 1048 transfer cannabis at no cost to a consumer, qualifying patient or 1049 caregiver as part of a commercial transaction. 1050 (c) In addition to conducting general retail sales, a hybrid retailer may 1051 sell cannabis and medical marijuana products, to qualifying patients 1052 and caregivers. Any cannabis or medical marijuana products sold to 1053 qualifying patients and caregivers shall be dispensed by a licensed 1054 pharmacist and shall be recorded in the electronic prescription drug 1055 monitoring program, established pursuant to section 21a-254, in real-1056 time or immediately upon completion of the transaction, unless not 1057 reasonably feasible for a specific transaction, but in no case longer than 1058 one hour after completion of the transaction. Only a licensed pharmacist 1059 or dispensary technician may upload or access data in the prescription 1060 drug monitoring program. 1061 (d) A hybrid retailer shall maintain a licensed pharmacist on premises 1062 at all times when the hybrid retail location is open to the public or to 1063 qualifying patients and caregivers. 1064 (e) The hybrid retailer location shall include a private consultation 1065 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 36 of 43 space for pharmacists to meet with qualifying patients and caregivers. 1066 Additionally, the hybrid retailer premises shall accommodate an 1067 expedited method of entry that allows for priority entrance into the 1068 premises for qualifying patients and caregivers. 1069 (f) Hybrid retailers shall maintain a secure location, in a manner 1070 approved by the commissioner, at the licensee's premises where 1071 cannabis that is unable to be delivered may be returned to the hybrid 1072 retailer. Such secure cannabis return location shall meet specifications 1073 set forth by the commissioner and published on the department's 1074 Internet web site or included in regulations adopted by the department. 1075 (g) Cannabis dispensed to a qualifying patient or caregiver that are 1076 unable to be delivered and are returned by the delivery service to the 1077 hybrid retailer shall be returned to the licensee inventory system and 1078 removed from the prescription drug monitoring program not later than 1079 forty-eight hours after receipt of the cannabis from the delivery service. 1080 (h) A hybrid retailer may not convert its license to a retailer license. 1081 To obtain a retailer license, a hybrid retailer shall apply through the 1082 lottery application process. A hybrid retailer may convert to a 1083 dispensary facility if the hybrid retailer complies with all applicable 1084 provisions of chapter 420f, and upon written approval by the 1085 department. 1086 (i) Notwithstanding the requirements of sections 4-168 to 4-172, 1087 inclusive, in order to effectuate the purposes of this section and protect 1088 public health and safety, the commissioner, prior to amending any 1089 regulations adopted pursuant to chapter 54 to implement the provisions 1090 of this section, shall issue policies and procedures to implement the 1091 provisions of this section, which policies and procedures shall have the 1092 force and effect of law. The commissioner shall post each such policy or 1093 procedure on the department's Internet web site, and submit such policy 1094 or procedure to the Secretary of the State for posting on the eRegulations 1095 System, at least fifteen days prior to the effective date of such policy or 1096 procedure. Any such policy or procedure shall no longer be effective 1097 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 37 of 43 upon the earlier of either the adoption of such policy or procedure as a 1098 final regulation pursuant to section 4-172 or June 30, 2027, if such 1099 regulations have not been submitted to the legislative regulation review 1100 committee for consideration under section 4-170. At a minimum, such 1101 policies, procedures and regulations shall require that each 1102 manufacturer hemp product be: 1103 (1) Labeled in a manner that indicates that such manufacturer hemp 1104 product is (A) a manufacturer hemp product, (B) subject to different 1105 testing standards than cannabis, and (C) not cannabis or a cannabis 1106 product; and 1107 (2) Stored separately from cannabis and cannabis products and 1108 displayed with signage approved by the department. 1109 Sec. 19. Subsections (b) to (i), inclusive, of section 21a-420u of the 1110 general statutes are repealed and the following is substituted in lieu 1111 thereof (Effective July 1, 2023): 1112 (b) Any equity joint venture created under this section shall be 1113 created for the development of a cannabis establishment, other than a 1114 cultivator, provided such equity joint venture is at least fifty per cent 1115 owned and controlled by an individual or individuals who meet, or the 1116 equity joint venture applicant is an individual who meets, the criteria 1117 established in subparagraphs (A) and (B) of subdivision [(48)] (51) of 1118 section 21a-420, as amended by this act. 1119 (c) An equity joint venture applicant shall submit an application to 1120 the Social Equity Council that may include, but need not be limited to, 1121 evidence of business formation, ownership allocation, terms of 1122 ownership and financing and proof of social equity status. The equity 1123 joint venture applicant shall submit to the Social Equity Council 1124 information including, but not limited to, the organizing documents of 1125 the entity that outline the ownership stake of each backer, initial backer 1126 investment and payout information to enable the council to determine 1127 the terms of ownership. 1128 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 38 of 43 (d) Upon receipt of written approval of the equity joint venture by 1129 the Social Equity Council, the equity joint venture applicant shall apply 1130 for a license from the department in the same form as required by all 1131 other licensees of the same license type and subject to the same fees as 1132 required by all other licensees of the same license type. 1133 (e) A dispensary facility, including the backers of such dispensary 1134 facility, shall not increase its ownership in an equity joint venture in 1135 excess of fifty per cent during the seven-year period after a license is 1136 issued by the department [under] pursuant to this section. 1137 (f) Equity joint ventures that are retailers or hybrid retailers that share 1138 a common dispensary facility or dispensary facility backer owner shall 1139 not be located within twenty miles of another commonly owned equity 1140 joint venture. 1141 (g) If a dispensary facility has paid the reduced conversion fee, in 1142 accordance with subsection (a) of this section, and did not subsequently 1143 create one equity joint venture under this section that, not later than 1144 fourteen months after the Department of Consumer Protection 1145 approved the dispensary facility's license conversion application under 1146 section 21a-420t, receives a final license from the department, the 1147 dispensary facility shall be liable for the full conversion fee of one 1148 million dollars established in section 21a-420e, as amended by this act, 1149 minus such paid reduced conversion fee. 1150 (h) No dispensary facility that receives approval to convert the 1151 dispensary facility's license to a hybrid-retailer license under section 1152 21a-420t shall create more than two equity joint ventures. No such 1153 dispensary facility shall apply for, or create, any additional equity joint 1154 venture if [, on the effective date of this section,] such dispensary facility 1155 has created at least two equity joint ventures that have each received a 1156 provisional license. 1157 (i) An equity joint venture applicant shall pay fifty per cent of the 1158 amount of any applicable fee specified in subsection [(c)] (d) of section 1159 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 39 of 43 21a-420e, as amended by this act, for the first three renewal cycles of the 1160 applicable cannabis establishment license applied for, and shall pay the 1161 full amount of such fee thereafter. 1162 Sec. 20. Section 21a-421f of the general statutes is repealed and the 1163 following is substituted in lieu thereof (Effective July 1, 2023): 1164 (a) The Social Equity Council, in coordination with the Departments 1165 of Consumer Protection and Economic and Community Development, 1166 shall develop a cannabis business accelerator program to provide 1167 technical assistance to participants by partnering participants with a 1168 cannabis establishment. The Social Equity Council may partner with a 1169 constituent unit of the state system of higher education in developing 1170 the program. 1171 (b) Any individual who would qualify as a social equity applicant 1172 may apply to participate in the accelerator program under this section. 1173 (c) [On and after October 1, 2021, the] The Social Equity Council may 1174 accept applications from an individual described in subsection (b) of this 1175 section for the component of the accelerator program corresponding to 1176 each of the following license types: (1) Retailer, (2) cultivator, (3) product 1177 manufacturer, (4) food and beverage manufacturer, and (5) product 1178 packager. 1179 (d) [On and after July 1, 2022, the] The council may accept 1180 applications from (1) retailers, (2) cultivators, (3) product 1181 manufacturers, (4) food and beverage manufacturers, (5) product 1182 packagers, (6) hybrid-retailers, and (7) micro-cultivators, licensed 1183 pursuant to section 21a-420e, as amended by this act, to partner with 1184 participants in the accelerator program component corresponding to the 1185 same license type, provided an accelerator retailer participant may be 1186 partnered with either a retailer or hybrid retailer and an accelerator 1187 cultivator participant may be partnered with either a cultivator or 1188 micro-cultivator. 1189 (e) As part of the cannabis business accelerator program, accelerator 1190 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 40 of 43 participants may be required to participate in training on accounting 1191 methods, business services, how to access capital markets and financing 1192 opportunities and on regulatory compliance. Social equity applicants 1193 who have been awarded either a provisional license or a final license for 1194 a cannabis establishment may participate in the training programs made 1195 available under this section. 1196 (f) The Social Equity Council shall facilitate opportunities for 1197 participants in the cannabis business accelerator program to meet with 1198 potential investors. 1199 (g) A participant who has partnered with a cannabis establishment 1200 pursuant to subsection (d) of this section shall be allowed to participate 1201 in any activity of the cannabis establishment with the same privileges 1202 afforded by the cannabis establishment's license to employees of such 1203 cannabis establishment. 1204 (h) Each participant shall annually apply for and obtain a registration, 1205 on a form and in a manner prescribed by the commissioner, prior to 1206 participating in any activity of a cannabis establishment. The Social 1207 Equity Council may charge a registration fee to participants. 1208 (i) The Social Equity Council may determine the duration of the 1209 program and number of participants under this section. 1210 Sec. 21. Section 22-61n of the general statutes is repealed and the 1211 following is substituted in lieu thereof (Effective July 1, 2023): 1212 (a) As used in this section: [, "producer", "cultivator", "micro-1213 cultivator", "product manufacturer", "hybrid retailer" and "retailer" have 1214 the same meanings as provided in section 21a-420; and "hemp" and 1215 "hemp products" have the same meanings as provided in section 22-61l.] 1216 (1) "Cultivator" has the same meaning as provided in section 21a-420, 1217 as amended by this act; 1218 (2) "Dispensary facility" has the same meaning as provided in section 1219 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 41 of 43 21a-420, as amended by this act; 1220 (3) "Hemp" has the same meaning as provided in section 22-61l; 1221 (4) "Hemp products" has the same meaning as provided in section 22-1222 61l; 1223 (5) "Hybrid retailer" has the same meaning as provided in section 21a-1224 420, as amended by this act; 1225 (6) "Micro-cultivator" has the same meaning as provided in section 1226 21a-420, as amended by this act; 1227 (7) "Producer" has the same meaning as provided in section 21a-420, 1228 as amended by this act; 1229 (8) "Producer hemp product" has the same meaning as provided in 1230 section 22-61l; 1231 (9) "Product manufacturer" has the same meaning as provided in 1232 section 21a-420, as amended by this act; and 1233 (10) "Retailer" has the same meaning as provided in section 21a-420, 1234 as amended by this act. 1235 (b) Any producer, cultivator, micro-cultivator and product 1236 manufacturer may manufacture, market, cultivate or store hemp and 1237 hemp products in accordance with the provisions of this chapter and 1238 any regulations adopted [under] pursuant to said chapter, except that a 1239 producer, cultivator, micro-cultivator and product manufacturer may 1240 obtain hemp and hemp products from a person authorized under the 1241 laws of this state or another state, territory or possession of the United 1242 States or another sovereign entity to possess and sell such hemp and 1243 hemp products. 1244 (c) Hemp or hemp products purchased by a producer, cultivator, 1245 micro-cultivator or product manufacturer from a third party shall be 1246 tracked as a separate batch throughout the manufacturing process in 1247 Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 42 of 43 order to document the disposition of such hemp or hemp products. 1248 Once hemp or hemp products are received by a producer, cultivator, 1249 micro-cultivator or product manufacturer, such hemp or hemp products 1250 shall be deemed cannabis and shall comply with the requirements for 1251 cannabis contained in the applicable provisions of the general statutes 1252 and any regulations adopted [under] pursuant to such provisions. A 1253 producer, cultivator, micro-cultivator and product manufacturer shall 1254 retain a copy of the certificate of analysis for purchased hemp or hemp 1255 products and invoice and transport documents that evidence the 1256 quantity purchased and date received. 1257 (d) No hemp or producer hemp [products shall] product may be 1258 dispensed, sold or distributed within a dispensary facility that is 1259 licensed [under] pursuant to chapter 420f or the business premises of a 1260 retailer or hybrid retailer. [or a retailer.] 1261 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 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-420n(b) Sec. 15 July 1, 2023 21a-420p(c) Sec. 16 July 1, 2023 21a-420q Sec. 17 July 1, 2023 21a-420r Sec. 18 July 1, 2023 21a-420s Sec. 19 July 1, 2023 21a-420u(b) to (i) Substitute Bill No. 6700 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700- R01-HB.docx } 43 of 43 Sec. 20 July 1, 2023 21a-421f Sec. 21 July 1, 2023 22-61n Statement of Legislative Commissioners: Section 1(1) was rewritten for consistency with standard drafting conventions and accuracy; in Section 4(a), "420f or" was changed to "420f, [or]" and "[or] as amended by this act," was changed to "as amended by this act, or" for consistency with standard drafting conventions; in Sections 5(3)(A) and (B), "who is" was added for clarity; in Sections 8(d) and (e), "53-247a and" was changed to "53-247a, [and]" for consistency with standard drafting conventions; and in Section 9(k), "section 21a-420j" was changed to "[section] 21a-420j" and "or" was unbracketed for consistency with standard drafting conventions. GL Joint Favorable Subst.