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Connecticut House Bill HB06700

Connecticut 2023 Regular Session

Connecticut House Bill HB06700 Compare Versions

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7+General Assembly Substitute Bill No. 6700
8+January Session, 2023
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4-Substitute House Bill No. 6700
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6-Public Act No. 23-166
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9-AN ACT CONCERNING HEMP, THE ADULT -USE CANNABIS
10-MARKET AND WEATHER DISASTER RELIEF.
14+AN ACT CONCERNING HEMP LICENSEES AND THE ADULT -USE
15+CANNABIS MARKET.
1116 Be it enacted by the Senate and House of Representatives in General
1217 Assembly convened:
1318
14-Section 1. Section 21a-409 of the general statutes is repealed and the
15-following is substituted in lieu thereof (Effective July 1, 2023):
16-(a) As used in this section, "producer" has the same meaning as
17-provided in section 21a-408 and "manufacture", "market", "cultivate",
18-"hemp", "hemp products", [and] "manufacturer hemp products" and
19-"producer hemp products" have the same meanings as provided in
20-section 22-61l. Any producer licensed [under] pursuant to section 21a-
21-408 shall manufacture, market, cultivate or store hemp and
22-manufacturer hemp products in accordance with the provisions of this
23-chapter and any regulations adopted [under] pursuant to this chapter.
24-Producers may obtain hemp and manufacturer hemp products from a
25-person authorized under the laws of this state or another state, territory
26-or possession of the United States or another sovereign entity to possess
27-and sell such hemp and manufacturer hemp products.
28-(b) Hemp or manufacturer hemp products purchased by producers
29-from third parties shall be tracked as a separate batch throughout the
30-manufacturing process in order to document the disposition of such Substitute House Bill No. 6700
19+Section 1. Section 21a-420 of the general statutes is repealed and the 1
20+following is substituted in lieu thereof (Effective July 1, 2023): 2
21+As used in RERACA, unless the context otherwise requires: 3
22+(1) "Responsible and Equitable Regulation of Adult-Use Cannabis 4
23+Act" or "RERACA" means this section, sections 2-56j, 7-294kk, 7-294ll, 5
24+12-330ll to 12-330nn, inclusive, 14-227p, 21a-278b, as amended by this 6
25+act, 21a-278c, 21a-279c, 21a-279d, 21a-420a to [21a-420i] 21a-420j, 7
26+inclusive, as amended by this act, 21a-420l to 21a-421r, inclusive, 21a-8
27+421aa to 21a-421ff, inclusive, 21a-421aaa to [21a-421ggg] 21a-421hhh, 9
28+inclusive, 21a-422 to 21a-422c, inclusive, 21a-422e to 21a-422g, inclusive, 10
29+21a-422j to 21a-422s, inclusive, 22-61n, as amended by this act, 23-4b, 11
30+47a-9a, 53-247a, 53a-213a, 53a-213b, 54-33p, 54-56q, 54-56r, 54-125k and 12
31+54-142u, sections 23, 60, 63 to 65, inclusive, 124, 144 and 165 of public act 13
32+21-1 of the June special session, and the amendments in public act 21-1 14
33+of the June special session to sections 7-148, 10-221, 12-30a, 12-35b, 12-15
34+412, 12-650, 12-704d, 14-44k, 14-111e, 14-227a to 14-227c, inclusive, 14-16
35+227j, 15-140q, 15-140r, 18-100h, 19a-342, 19a-342a, 21a-267, 21a-277, 21a-17
36+279, 21a-279a, 21a-408 to 21a-408f, inclusive, as amended by this act, 21a-18 Substitute Bill No. 6700
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34-hemp or manufacturer hemp products. Hemp or manufacturer hemp
35-products obtained, manufactured, marketed, cultivated or stored by a
36-producer shall be deemed marijuana and shall comply with the
37-requirements for marijuana contained in the applicable provisions of the
38-general statutes and any regulations adopted [under] pursuant to such
39-provisions. Producers shall retain a copy of the certificate of analysis for
40-purchased hemp or manufacturer hemp products and invoice and
41-transport documents that evidence the quantity purchased and date
42-received.
43-(c) (1) No hemp or producer hemp products shall be sold or
44-distributed within a dispensary facility that is licensed [under] pursuant
45-to this chapter.
46-(2) Notwithstanding subdivision (1) of this subsection, manufacturer
47-hemp products may be sold within a dispensary facility that is licensed
48-pursuant to this chapter, provided such manufacturer hemp products
49-are:
50-(A) Stored separately from marijuana;
51-(B) Separated, by a physical separation, from marijuana in any
52-display area;
53-(C) Displayed with signage approved by the department;
54-(D) Tested by a laboratory that meets the standards for accreditation
55-and testing, and sampling methods, set forth for an independent testing
56-laboratory in section 22-61m, which laboratory may be located outside
57-of this state;
58-(E) Clearly labeled to distinguish the product as (i) a manufacturer
59-hemp product, (ii) subject to different testing standards than cannabis
60-or marijuana, and (iii) not cannabis or marijuana; and Substitute House Bill No. 6700
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43+408h to 21a-408p, inclusive, as amended by this act, 21a-408r to 21a-408v, 19
44+inclusive, 30-89a, 31-40q, 32-39, 46b-120, 51-164n, 53-394, 53a-39c, 54-1m, 20
45+54-33g, 54-41b, 54-56e, 54-56g, 54-56i, 54-56k, 54-56n, 54-63d, 54-66a [,] 21
46+and 54-142e, [21a-421hhh and 21a-420j] and sections 2 and 3 of this act; 22
47+(2) "Backer" means any individual with a direct or indirect financial 23
48+interest in a cannabis establishment. "Backer" does not include an 24
49+individual with an investment interest in a cannabis establishment if (A) 25
50+the interest held by such individual and such individual's spouse, 26
51+parent or child, in the aggregate, does not exceed five per cent of the 27
52+total ownership or interest rights in such cannabis establishment, and 28
53+(B) such individual does not participate directly or indirectly in the 29
54+control, management or operation of the cannabis establishment; 30
55+(3) "Cannabis" means marijuana, as defined in section 21a-240; 31
56+(4) "Cannabis establishment" means a producer, dispensary facility, 32
57+cultivator, micro-cultivator, retailer, hybrid retailer, food and beverage 33
58+manufacturer, product manufacturer, product packager, delivery 34
59+service or transporter; 35
60+(5) "Cannabis flower" means the flower, including abnormal and 36
61+immature flowers, of a plant of the genus cannabis that has been 37
62+harvested, dried and cured, and prior to any processing whereby the 38
63+flower material is transformed into a cannabis product. "Cannabis 39
64+flower" does not include (A) the leaves or stem of such plant, or (B) 40
65+hemp; [, as defined in section 22-61l;] 41
66+(6) "Cannabis trim" means all parts, including abnormal or immature 42
67+parts, of a plant of the genus cannabis, other than cannabis flower, that 43
68+have been harvested, dried and cured, and prior to any processing 44
69+whereby the plant material is transformed into a cannabis product. 45
70+"Cannabis trim" does not include hemp; [, as defined in section 22-61l;] 46
71+(7) "Cannabis product" means cannabis that is in the form of a 47
72+cannabis concentrate or a product that contains cannabis, which may be 48
73+combined with other ingredients, and is intended for use or 49 Substitute Bill No. 6700
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64-(F) Sold in accordance with this chapter, chapter 424 and any
65-regulations adopted pursuant to said chapters.
66-Sec. 2. Section 21a-420r of the general statutes is repealed and the
67-following is substituted in lieu thereof (Effective July 1, 2023):
68-(a) On and after July 1, 2021, the department may issue or renew a
69-license for a person to be a retailer. No person may act as a retailer or
70-represent that such person is a retailer unless such person has obtained
71-a license from the department pursuant to this section.
72-(b) A retailer may obtain cannabis from a cultivator, micro-cultivator,
73-producer, product packager, food and beverage manufacturer, product
74-manufacturer or transporter or an undeliverable return from a delivery
75-service. A retailer may sell, transport or transfer cannabis or cannabis
76-products to a delivery service, laboratory or research program. A retailer
77-may sell cannabis to a consumer or research program. A retailer may
78-not conduct sales of medical marijuana products nor offer discounts or
79-other inducements to qualifying patients or caregivers. A retailer shall
80-not gift or transfer cannabis at no cost to a consumer as part of a
81-commercial transaction.
82-(c) Retailers shall maintain a secure location, in a manner approved
83-by the commissioner, at the licensee's premises where cannabis that is
84-unable to be delivered by an employee or delivery service may be
85-returned to the retailer. Such secure cannabis return location shall meet
86-specifications set forth by the commissioner and published on the
87-department's Internet web site or included in regulations adopted by
88-the department.
89-(d) A retailer may deliver cannabis through a delivery service or by
90-utilizing its own employees, subject to the provisions of subsection (b)
91-of section 21a-420c.
92-(e) Manufacturer hemp products, as defined in section 22-61l, may be Substitute House Bill No. 6700
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96-sold within a retailer facility, provided such manufacturer hemp
97-products are:
98-(1) Stored separately from cannabis and cannabis products;
99-(2) Separated, by a physical separation, from cannabis and cannabis
100-products in any display area;
101-(3) Displayed with signage approved by the department;
102-(4) Tested by a laboratory that meets the standards for accreditation
103-and testing, and sampling methods, set forth for an independent testing
104-laboratory in section 22-61m, which laboratory may be located outside
105-of this state;
106-(5) Clearly labeled to distinguish the product as (A) a manufacturer
107-hemp product, (B) subject to different testing standards than cannabis,
108-and (C) not cannabis or a cannabis product; and
109-(6) Sold in accordance with this chapter, chapter 424 and any
110-regulations adopted pursuant to said chapters.
111-Sec. 3. Section 21a-420s of the general statutes is repealed and the
112-following is substituted in lieu thereof (Effective July 1, 2023):
113-(a) On and after July 1, 2021, the department may issue or renew a
114-license for a hybrid retailer. No person may act as a hybrid retailer or
115-represent that such person is a hybrid retailer unless such person has
116-obtained a license from the department pursuant to this section.
117-(b) A hybrid retailer may obtain cannabis from a cultivator, micro-
118-cultivator, producer, product packager, food and beverage
119-manufacturer, product manufacturer or transporter. In addition to the
120-activities authorized under section 21a-420t, a hybrid retailer may sell,
121-transport or transfer cannabis to a delivery service, laboratory or
122-research program. A hybrid retailer may sell cannabis products to a Substitute House Bill No. 6700
80+consumption. "Cannabis product" does not include the raw cannabis 50
81+plant; 51
82+(8) "Cannabis concentrate" means any form of concentration, 52
83+including, but not limited to, extracts, oils, tinctures, shatter and waxes, 53
84+that is extracted from cannabis; 54
85+(9) "Cannabis-type substances" have the same meaning as 55
86+"marijuana", as defined in section 21a-240; 56
87+(10) "Commissioner" means the Commissioner of Consumer 57
88+Protection and includes any designee of the commissioner; 58
89+(11) "Consumer" means an individual who is twenty-one years of age 59
90+or older; 60
91+(12) "Cultivation" has the same meaning as provided in section 21a-61
92+408, as amended by this act; 62
93+(13) "Cultivator" means a person that is licensed to engage in the 63
94+cultivation, growing and propagation of the cannabis plant at an 64
95+establishment with not less than fifteen thousand square feet of grow 65
96+space; 66
97+(14) "Delivery service" means a person that is licensed to deliver 67
98+cannabis from (A) micro-cultivators, retailers and hybrid retailers to 68
99+consumers and research program subjects, and (B) hybrid retailers and 69
100+dispensary facilities to qualifying patients, caregivers and research 70
101+program subjects, as defined in section 21a-408, as amended by this act, 71
102+or to hospices or other inpatient care facilities licensed by the 72
103+Department of Public Health pursuant to chapter 368v that have a 73
104+protocol for the handling and distribution of cannabis that has been 74
105+approved by the department, or a combination thereof; 75
106+(15) "Department" means the Department of Consumer Protection; 76
107+(16) "Dispensary facility" means a place of business where cannabis 77 Substitute Bill No. 6700
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126-consumer or research program. A hybrid retailer shall not gift or
127-transfer cannabis at no cost to a consumer, qualifying patient or
128-caregiver as part of a commercial transaction.
129-(c) In addition to conducting general retail sales, a hybrid retailer may
130-sell cannabis and medical marijuana products, to qualifying patients
131-and caregivers. Any cannabis or medical marijuana products sold to
132-qualifying patients and caregivers shall be dispensed by a licensed
133-pharmacist and shall be recorded in the electronic prescription drug
134-monitoring program, established pursuant to section 21a-254, in real-
135-time or immediately upon completion of the transaction, unless not
136-reasonably feasible for a specific transaction, but in no case longer than
137-one hour after completion of the transaction. Only a licensed pharmacist
138-or dispensary technician may upload or access data in the prescription
139-drug monitoring program.
140-(d) A hybrid retailer shall maintain a licensed pharmacist on premises
141-at all times when the hybrid retail location is open to the public or to
142-qualifying patients and caregivers.
143-(e) The hybrid retailer location shall include a private consultation
144-space for pharmacists to meet with qualifying patients and caregivers.
145-Additionally, the hybrid retailer premises shall accommodate an
146-expedited method of entry that allows for priority entrance into the
147-premises for qualifying patients and caregivers.
148-(f) Hybrid retailers shall maintain a secure location, in a manner
149-approved by the commissioner, at the licensee's premises where
150-cannabis that is unable to be delivered may be returned to the hybrid
151-retailer. Such secure cannabis return location shall meet specifications
152-set forth by the commissioner and published on the department's
153-Internet web site or included in regulations adopted by the department.
154-(g) Cannabis dispensed to a qualifying patient or caregiver that are Substitute House Bill No. 6700
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114+may be dispensed, sold or distributed in accordance with chapter 420f 78
115+and any regulations adopted [thereunder] pursuant to said chapter, to 79
116+qualifying patients and caregivers, and to which the department has 80
117+issued a dispensary facility license [under] pursuant to chapter 420f and 81
118+any regulations adopted [thereunder] pursuant to said chapter; 82
119+(17) "Disproportionately impacted area" means a United States 83
120+census tract in the state that has, as determined by the Social Equity 84
121+Council under section 21a-420d, as amended by this act, (A) a historical 85
122+conviction rate for drug-related offenses greater than one-tenth, or (B) 86
123+an unemployment rate greater than ten per cent; 87
124+(18) "Disqualifying conviction" means a conviction within the last ten 88
125+years which has not been the subject of an absolute pardon under the 89
126+provisions of section 54-130a, or an equivalent pardon process under the 90
127+laws of another state or the federal government, for an offense under (A) 91
128+section 53a-276, 53a-277 or 53a-278; (B) section 53a-291, 53a-292 or 53a-92
129+293; (C) section 53a-215; (D) section 53a-138 or 53a-139; (E) section 53a-93
130+142a; (F) sections 53a-147 to 53a-162, inclusive; (G) sections 53a-125c to 94
131+53a-125f, inclusive; (H) section 53a-129b, 53a-129c or 53a-129d; (I) 95
132+subsection (b) of section 12-737; (J) section 53a-48 or 53a-49, if the offense 96
133+which is attempted or is an object of the conspiracy is an offense under 97
134+the statutes listed in subparagraphs (A) to (I), inclusive, of this 98
135+subdivision; or (K) the law of any other state or of the federal 99
136+government, if the offense on which such conviction is based is defined 100
137+by elements that substantially include the elements of an offense under 101
138+the statutes listed in subparagraphs (A) to (J), inclusive, of this 102
139+subdivision; 103
140+(19) "Dispensary technician" means an individual who has had an 104
141+active pharmacy technician or dispensary technician registration in this 105
142+state within the past five years, is affiliated with a dispensary facility or 106
143+hybrid retailer and is registered with the department in accordance with 107
144+chapter 420f and any regulations adopted [thereunder] pursuant to said 108
145+chapter; 109 Substitute Bill No. 6700
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158-unable to be delivered and are returned by the delivery service to the
159-hybrid retailer shall be returned to the licensee inventory system and
160-removed from the prescription drug monitoring program not later than
161-forty-eight hours after receipt of the cannabis from the delivery service.
162-(h) A hybrid retailer may not convert its license to a retailer license.
163-To obtain a retailer license, a hybrid retailer shall apply through the
164-lottery application process. A hybrid retailer may convert to a
165-dispensary facility if the hybrid retailer complies with all applicable
166-provisions of chapter 420f, and upon written approval by the
167-department.
168-(i) Manufacturer hemp products, as defined in section 22-61l, may be
169-sold within a hybrid retailer facility, provided such manufacturer hemp
170-products are:
171-(1) Stored separately from cannabis and cannabis products;
172-(2) Separated, by a physical separation, from cannabis and cannabis
173-products in any display area;
174-(3) Displayed with signage approved by the department;
175-(4) Tested by a laboratory that meets the standards for accreditation
176-and testing, and sampling methods, set forth for an independent testing
177-laboratory in section 22-61m, which laboratory may be located outside
178-of this state;
179-(5) Clearly labeled to distinguish the product as (A) a manufacturer
180-hemp product, (B) subject to different testing standards than cannabis,
181-and (C) not cannabis or a cannabis product; and
182-(6) Sold in accordance with this chapter, chapter 424 and any
183-regulations adopted pursuant to said chapters.
184-Sec. 4. Section 22-61n of the general statutes is repealed and the Substitute House Bill No. 6700
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188-following is substituted in lieu thereof (Effective July 1, 2023):
189-(a) As used in this section: [, "producer", "cultivator", "micro-
190-cultivator", "product manufacturer", "hybrid retailer" and "retailer" have
191-the same meanings as provided in section 21a-420; and "hemp" and
192-"hemp products" have the same meanings as provided in section 22-61l.]
193-(1) "Cultivator" has the same meaning as provided in section 21a-420;
194-(2) "Hemp" has the same meaning as provided in section 22-61l;
195-(3) "Hemp products" has the same meaning as provided in section 22-
196-61l;
197-(4) "Micro-cultivator" has the same meaning as provided in section
198-21a-420;
199-(5) "Producer" has the same meaning as provided in section 21a-420;
200-and
201-(6) "Product manufacturer" has the same meaning as provided in
202-section 21a-420.
203-(b) Any producer, cultivator, micro-cultivator and product
204-manufacturer may manufacture, market, cultivate or store hemp and
205-hemp products in accordance with the provisions of this chapter and
206-any regulations adopted [under] pursuant to said chapter. [, except that
207-a] A producer, cultivator, micro-cultivator and product manufacturer
208-[may obtain] that obtains hemp and hemp products shall only obtain
209-such hemp and hemp products from a person authorized under the laws
210-of this state or another state, territory or possession of the United States
211-or another sovereign entity to possess and sell such hemp and hemp
212-products.
213-(c) Hemp or hemp products purchased by a producer, cultivator,
214-micro-cultivator or product manufacturer from a third party shall be Substitute House Bill No. 6700
152+(20) "Employee" means any person who is not a backer, but is a 110
153+member of the board of a company with an ownership interest in a 111
154+cannabis establishment, and any person employed by a cannabis 112
155+establishment or who otherwise has access to such establishment or the 113
156+vehicles used to transport cannabis, including, but not limited to, an 114
157+independent contractor who has routine access to the premises of such 115
158+establishment or to the cannabis handled by such establishment; 116
159+(21) "Equity" and "equitable" means efforts, regulations, policies, 117
160+programs, standards, processes and any other functions of government 118
161+or principles of law and governance intended to: (A) Identify and 119
162+remedy past and present patterns of discrimination and disparities of 120
163+race, ethnicity, gender and sexual orientation; (B) ensure that such 121
164+patterns of discrimination and disparities, whether intentional or 122
165+unintentional, are neither reinforced nor perpetuated; and (C) prevent 123
166+the emergence and persistence of foreseeable future patterns of 124
167+discrimination or disparities of race, ethnicity, gender and sexual 125
168+orientation; 126
169+(22) "Equity joint venture" means a business entity that is at least fifty 127
170+per cent owned and controlled by an individual or individuals, or such 128
171+applicant is an individual, who meets the criteria of subparagraphs (A) 129
172+and (B) of subdivision [(48)] (51) of this section; 130
173+(23) "Extract" means the preparation, compounding, conversion or 131
174+processing of cannabis, either directly or indirectly by extraction or 132
175+independently by means of chemical synthesis, or by a combination of 133
176+extraction and chemical synthesis to produce a cannabis concentrate; 134
177+(24) "Financial interest" means any right to, ownership, an investment 135
178+or a compensation arrangement with another person, directly, through 136
179+business, investment or family. "Financial interest" does not include 137
180+ownership of investment securities in a publicly-held corporation that 138
181+is traded on a national exchange or over-the-counter market, provided 139
182+the investment securities held by such person and such person's spouse, 140
183+parent or child, in the aggregate, do not exceed one-half of one per cent 141 Substitute Bill No. 6700
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218-tracked as a separate batch throughout the manufacturing process in
219-order to document the disposition of such hemp or hemp products.
220-Once hemp or hemp products are received by a producer, cultivator,
221-micro-cultivator or product manufacturer, such hemp or hemp products
222-shall be deemed cannabis and shall comply with the requirements for
223-cannabis contained in the applicable provisions of the general statutes
224-and any regulations adopted [under] pursuant to such provisions. A
225-producer, cultivator, micro-cultivator and product manufacturer shall
226-retain a copy of the certificate of analysis for purchased hemp or hemp
227-products and invoice and transport documents that evidence the
228-quantity purchased and date received.
229-[(d) No hemp or hemp products shall be sold or distributed within a
230-dispensary facility that is licensed under chapter 420f or the business
231-premises of a hybrid retailer or a retailer.]
232-Sec. 5. Section 21a-408h of the general statutes is repealed and the
233-following is substituted in lieu thereof (Effective July 1, 2023):
234-(a) No person may act as a dispensary or represent that such person
235-is a licensed dispensary unless such person has obtained a license from
236-the Commissioner of Consumer Protection pursuant to this section.
237-(b) No person may act as a dispensary facility or represent that such
238-person is a licensed dispensary facility unless such person has obtained
239-a license from the Commissioner of Consumer Protection pursuant to
240-this section.
241-(c) The Commissioner of Consumer Protection shall determine the
242-number of dispensary facilities appropriate to meet the needs of
243-qualifying patients in this state and shall adopt regulations, in
244-accordance with chapter 54, to provide for the licensure and standards
245-for dispensary facilities in this state and specify the maximum number
246-of dispensary facilities that may be licensed in this state. On and after Substitute House Bill No. 6700
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190+of the total number of shares issued by the corporation; 142
191+(25) "Food and beverage manufacturer" means a person that is 143
192+licensed to own and operate a place of business that acquires cannabis 144
193+and creates food and beverages; 145
194+(26) "Grow space" means the portion of a premises owned and 146
195+controlled by a producer, cultivator or micro-cultivator that is utilized 147
196+for the cultivation, growing or propagation of the cannabis plant, and 148
197+contains cannabis plants in an active stage of growth, measured starting 149
198+from the outermost wall of the room containing cannabis plants and 150
199+continuing around the outside of the room. "Grow space" does not 151
200+include space used to cure, process, store harvested cannabis or 152
201+manufacture cannabis once the cannabis has been harvested; 153
202+(27) "Hemp" has the same meaning as provided in section 22-61l; 154
203+(28) "Hemp producer" means producer, as defined in section 22-61l; 155
204+[(27)] (29) "Historical conviction count for drug-related offenses" 156
205+means, for a given area, the number of convictions of residents of such 157
206+area (A) for violations of sections 21a-267, 21a-277, 21a-278, 21a-279 and 158
207+21a-279a, and (B) who were arrested for such violations between 159
208+January 1, 1982, and December 31, 2020, inclusive, where such arrest 160
209+was recorded in databases maintained by the Department of Emergency 161
210+Services and Public Protection; 162
211+[(28)] (30) "Historical conviction rate for drug-related offenses" 163
212+means, for a given area, the historical conviction count for drug-related 164
213+offenses divided by the population of such area, as determined by the 165
214+five-year estimates of the most recent American Community Survey 166
215+conducted by the United States Census Bureau; 167
216+[(29)] (31) "Hybrid retailer" means a person that is licensed to 168
217+purchase cannabis and sell cannabis and medical marijuana products; 169
218+[(30)] (32) "Key employee" means an employee with the following 170 Substitute Bill No. 6700
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250-the effective date of such regulations, the commissioner may license any
251-person who applies for a license in accordance with such regulations,
252-provided the commissioner deems such applicant qualified to acquire,
253-possess, distribute and dispense marijuana pursuant to sections 21a-408
254-to 21a-408m, inclusive. At a minimum, such regulations shall:
255-(1) Indicate the maximum number of dispensary facilities that may
256-be licensed in this state;
257-(2) Provide that no marijuana may be dispensed from, obtained from
258-or transferred to a location outside of this state;
259-(3) Establish a licensing fee and renewal fee for each dispensary
260-facility, provided such fees shall not be less than the amount necessary
261-to cover the direct and indirect cost of licensing and regulating
262-dispensary facilities pursuant to sections 21a-408 to 21a-408m, inclusive;
263-(4) Provide for renewal of such dispensary facility licenses at least
264-every two years;
265-(5) Describe areas in this state where dispensary facilities may not be
266-located, after considering the criteria for the location of retail liquor
267-permit premises set forth in subsection (a) of section 30-46;
268-(6) Establish health, safety and security requirements for dispensary
269-facilities, which may include, but need not be limited to: (A) The ability
270-to maintain adequate control against the diversion, theft and loss of
271-marijuana acquired or possessed by the dispensary facility, and (B) the
272-ability to maintain the knowledge, understanding, judgment,
273-procedures, security controls and ethics to ensure optimal safety and
274-accuracy in the distributing, dispensing and use of palliative marijuana;
275-(7) Establish standards and procedures for revocation, suspension,
276-summary suspension and nonrenewal of dispensary facility licenses,
277-provided such standards and procedures are consistent with the Substitute House Bill No. 6700
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279-Public Act No. 23-166 10 of 10
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281-provisions of subsection (c) of section 4-182; and
282-(8) Establish other licensing, renewal and operational standards
283-deemed necessary by the commissioner.
284-(d) Any fees collected by the Department of Consumer Protection
285-under this section shall be paid to the State Treasurer and credited to the
286-General Fund.
287-[(e) On or before January 1, 2017, and annually thereafter, each
288-dispensary facility shall report data to the Department of Consumer
289-Protection relating to the types, mixtures and dosages of palliative
290-marijuana dispensed by such dispensary facility. A report prepared
291-pursuant to this subsection shall be in such form as may be prescribed
292-by the Commissioner of Consumer Protection.]
293-Sec. 6. Subdivision (1) of subsection (c) of section 314 of public act 22-
294-118 is amended to read as follows (Effective from passage):
295-(1) Grants-in-aid for farmland restoration, [and] climate resiliency
296-and weather disaster relief, not exceeding $7,000,000;
297-Sec. 7. (Effective from passage) Sections 41 and 45 of public act 23-79
298-shall take effect October 1, 2023.
225+management position or an equivalent title within a cannabis 171
226+establishment: (A) President or chief officer, who is the top ranking 172
227+individual at the cannabis establishment and is responsible for all staff 173
228+and overall direction of business operations; (B) financial manager, who 174
229+is the individual who reports to the president or chief officer and who is 175
230+generally responsible for oversight of the financial operations of the 176
231+cannabis establishment, including, but not limited to, revenue 177
232+generation, distributions, tax compliance and budget implementation; 178
233+or (C) compliance manager, who is the individual who reports to the 179
234+president or chief officer and who is generally responsible for ensuring 180
235+the cannabis establishment complies with all laws, regulations and 181
236+requirements related to the operation of the cannabis establishment; 182
237+[(31)] (33) "Laboratory" means a laboratory located in the state that is 183
238+licensed by the department to provide analysis of cannabis that meets 184
239+the licensure requirements set forth in section 21a-246; 185
240+[(32)] (34) "Laboratory employee" means an individual who is 186
241+registered as a laboratory employee pursuant to section 21a-408r; 187
242+[(33)] (35) "Labor peace agreement" means an agreement between a 188
243+cannabis establishment and a bona fide labor organization under section 189
244+21a-421d pursuant to which the owners and management of the 190
245+cannabis establishment agree not to lock out employees and that 191
246+prohibits the bona fide labor organization from engaging in picketing, 192
247+work stoppages or boycotts against the cannabis establishment; 193
248+[(34)] (36) "Manufacture" means to add or incorporate cannabis into 194
249+other products or ingredients or create a cannabis product; 195
250+(37) "Manufacturer hemp product" has the same meaning as 196
251+provided in section 22-61l; 197
252+[(35)] (38) "Medical marijuana product" means cannabis that may be 198
253+exclusively sold to qualifying patients and caregivers by dispensary 199
254+facilities and hybrid retailers and which are designated by the 200
255+commissioner as reserved for sale to qualifying patients and caregivers 201 Substitute Bill No. 6700
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262+and published on the department's Internet web site; 202
263+[(36)] (39) "Micro-cultivator" means a person licensed to engage in the 203
264+cultivation, growing and propagation of the cannabis plant at an 204
265+establishment containing not less than two thousand square feet and not 205
266+more than ten thousand square feet of grow space, prior to any 206
267+expansion authorized by the commissioner; 207
268+[(37)] (40) "Municipality" means any town, city or borough, 208
269+consolidated town and city or consolidated town and borough; 209
270+[(38)] (41) "Paraphernalia" means drug paraphernalia, as defined in 210
271+section 21a-240; 211
272+[(39)] (42) "Person" means an individual, partnership, limited liability 212
273+company, society, association, joint stock company, corporation, estate, 213
274+receiver, trustee, assignee, referee or any other legal entity and any other 214
275+person acting in a fiduciary or representative capacity, whether 215
276+appointed by a court or otherwise, and any combination thereof; 216
277+[(40)] (43) "Producer" means a person that is licensed as a producer 217
278+pursuant to section 21a-408i and any regulations adopted [thereunder] 218
279+pursuant to said section; 219
280+[(41)] (44) "Product manufacturer" means a person that is licensed to 220
281+obtain cannabis, extract and manufacture products exclusive to such 221
282+license type; 222
283+[(42)] (45) "Product packager" means a person that is licensed to 223
284+package and label cannabis; 224
285+[(43)] (46) "Qualifying patient" has the same meaning as provided in 225
286+section 21a-408, as amended by this act; 226
287+[(44)] (47) "Research program" has the same meaning as provided in 227
288+section 21a-408, as amended by this act; 228
289+[(45)] (48) "Retailer" means a person, excluding a dispensary facility 229 Substitute Bill No. 6700
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296+and hybrid retailer, that is licensed to purchase cannabis from 230
297+producers, cultivators, micro-cultivators, product manufacturers and 231
298+food and beverage manufacturers and to sell cannabis to consumers and 232
299+research programs; 233
300+[(46)] (49) "Sale" or "sell" has the same meaning as provided in section 234
301+21a-240; 235
302+[(47)] (50) "Social Equity Council" or "council" means the council 236
303+established under section 21a-420d, as amended by this act; 237
304+[(48)] (51) "Social equity applicant" means a person that has applied 238
305+for a license for a cannabis establishment, where such applicant is at 239
306+least sixty-five per cent owned and controlled by an individual or 240
307+individuals, or such applicant is an individual, who: 241
308+(A) Had an average household income of less than three hundred per 242
309+cent of the state median household income over the three tax years 243
310+immediately preceding such individual's application; and 244
311+(B) (i) Was a resident of a disproportionately impacted area for not 245
312+less than five of the ten years immediately preceding the date of such 246
313+application; or 247
314+(ii) Was a resident of a disproportionately impacted area for not less 248
315+than nine years prior to attaining the age of eighteen; 249
316+[(49)] (52) "THC" has the same meaning as provided in section 21a-250
317+240; 251
318+[(50)] (53) "Third-party lottery operator" means a person, or a 252
319+constituent unit of the state system of higher education, that conducts 253
320+lotteries pursuant to section 21a-420g, identifies the cannabis 254
321+establishment license applications for consideration without 255
322+performing any review of the applications that are identified for 256
323+consideration, and that has no direct or indirect oversight of or 257
324+investment in a cannabis establishment or a cannabis establishment 258 Substitute Bill No. 6700
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331+applicant; 259
332+[(51)] (54) "Transfer" means to transfer, change, give or otherwise 260
333+dispose of control over or interest in; 261
334+[(52)] (55) "Transport" means to physically move from one place to 262
335+another; 263
336+[(53)] (56) "Transporter" means a person licensed to transport 264
337+cannabis between cannabis establishments, laboratories and research 265
338+programs; and 266
339+[(54)] (57) "Unemployment rate" means, in a given area, the number 267
340+of people sixteen years of age or older who are in the civilian labor force 268
341+and unemployed divided by the number of people sixteen years of age 269
342+or older who are in the civilian labor force. 270
343+Sec. 2. (NEW) (Effective July 1, 2023) (a) During the period beginning 271
344+October 1, 2023, and ending December 31, 2023, a hemp producer that 272
345+has been licensed by the Department of Agriculture as a hemp producer 273
346+for the majority of the period beginning January 1, 2021, and ending 274
347+January 1, 2023, may apply to the Department of Consumer Protection 275
348+for a cultivator license or micro-cultivator license without entering the 276
349+lottery. Such application shall be in a form and manner prescribed by 277
350+the Commissioner of Consumer Protection, and shall include: 278
351+(1) An attestation that the applicant hemp producer has not 279
352+undergone any change in ownership since January 1, 2023; 280
353+(2) An acknowledgment and affirmation that prior to being awarded 281
354+a provisional cultivator or micro-cultivator license, the applicant hemp 282
355+producer shall surrender such hemp producer's license as a hemp 283
356+producer; 284
357+(3) The attestation required under subsection (a) of section 3 of this 285
358+act; and 286 Substitute Bill No. 6700
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365+(4) Any other item the commissioner deems relevant for the purposes 287
366+of this section. 288
367+(b) The Department of Consumer Protection shall not approve any 289
368+application submitted pursuant to subsection (a) of this section if 290
369+approving such application would cause the aggregate grow space of all 291
370+applicant hemp producers who convert to a cultivator license or micro-292
371+cultivator license under this section to exceed two hundred fifty 293
372+thousand square feet. 294
373+(c) No cultivator or micro-cultivator licensee shall hold a hemp 295
374+producer license. Upon surrender of a hemp producer license as set 296
375+forth in subsection (a) of this section and licensure as a cultivator or 297
376+micro-cultivator, all hemp inventory in such cultivator or micro-298
377+cultivator licensee's possession shall be deemed to be cannabis and 299
378+subject to all cannabis reporting, handling, security, testing and other 300
379+standards as set forth in applicable law. 301
380+(d) No hemp producer that converts to a cultivator or micro-302
381+cultivator under this section shall add any new owner after such 303
382+cultivator or micro-cultivator receives a provisional license, except such 304
383+cultivator or micro-cultivator may add any new owner who meets the 305
384+criteria established in subparagraphs (A) and (B) of subdivision (51) of 306
385+section 21a-420 of the general statutes, as amended by this act, not later 307
386+than three years after such cultivator or micro-cultivator receives a final 308
387+license. 309
388+Sec. 3. (NEW) (Effective July 1, 2023) (a) In order to pay a reduced 310
389+license fee as described in subdivision (14) or (15) of subsection (d) of 311
390+section 21a-420e of the general statutes, as amended by this act, a hemp 312
391+producer that is applying to convert to a cultivator or micro-cultivator 313
392+under section 2 of this act shall create two equity joint ventures to be 314
393+approved by the Social Equity Council under section 21a-420d of the 315
394+general statutes, as amended by this act, and licensed by the department 316
395+pursuant to this section, which shall be evidenced by filings with the 317
396+Secretary of the State, organizing documents disclosing the terms of the 318 Substitute Bill No. 6700
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403+business relationship between such applicant and such equity joint 319
404+ventures and an attestation to the creation of such equity joint ventures 320
405+on the application submitted pursuant to section 2 of this act. 321
406+(b) Each equity joint venture created pursuant to subsection (a) of this 322
407+section shall be in any cannabis establishment licensed business, other 323
408+than a cultivator or micro-cultivator license, provided such equity joint 324
409+venture is at least fifty per cent owned and controlled by an individual 325
410+or individuals who meet, or the equity joint venture applicant is an 326
411+individual who meets, the criteria established in subparagraphs (A) and 327
412+(B) of subdivision (51) of section 21a-420 of the general statutes, as 328
413+amended by this act. 329
414+(c) Each equity joint venture applicant described in subsection (a) of 330
415+this section shall submit an application to the Social Equity Council that 331
416+may include, but need not be limited to, evidence of business formation, 332
417+ownership allocation, terms of ownership and financing and proof of 333
418+social equity status. The equity joint venture applicant shall submit to 334
419+the Social Equity Council information including, but not limited to, the 335
420+organizing documents of the entity that outline the ownership stake of 336
421+each backer, initial backer investment and payout information to enable 337
422+the council to determine the terms of ownership. 338
423+(d) Upon obtaining the written approval of the Social Equity Council 339
424+for an equity joint venture described in subsection (a) of this section, the 340
425+equity joint venture applicant shall apply for a license from the 341
426+department in the same form as required by all other licensees of the 342
427+same license type, except that such application shall not be subject to the 343
428+lottery. 344
429+(e) A converted hemp producer that receives a license as a cultivator 345
430+or micro-cultivator under section 2 of this act, including the backers 346
431+listed on the conversion application of such converted hemp producer, 347
432+shall not increase its ownership in an equity joint venture in excess of 348
433+fifty per cent during the seven-year period after a license is issued by 349
434+the department pursuant to this section. 350 Substitute Bill No. 6700
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441+(f) Equity joint ventures that are retailers or hybrid retailers shall not 351
442+be located within twenty miles of another equity joint venture that 352
443+shares a common backer of a cultivator or micro-cultivator that receives 353
444+a license under section 2 of this act. 354
445+(g) If a converted hemp producer has paid a reduced conversion fee, 355
446+as described in subdivision (14) or (15) of subsection (d) of section 21a-356
447+420e of the general statutes, as amended by this act, and subsequently 357
448+did not create two equity joint ventures under this section that, not later 358
449+than fourteen months after the department approved the converted 359
450+hemp producer's cultivator or micro-cultivator license application 360
451+under section 2 of this act, each received a final license from the 361
452+department, such (1) cultivator shall be liable for the full conversion fee 362
453+established in subdivision (14) of subsection (d) of section 21a-420e of 363
454+the general statutes, as amended by this act, minus such paid reduced 364
455+conversion fee, or (2) micro-cultivator shall be liable for the full 365
456+conversion fee established in subdivision (15) of subsection (d) of section 366
457+21a-420e of the general statutes, as amended by this act, minus such paid 367
458+reduced conversion fee. 368
459+(h) No cultivator or micro-cultivator that receives a license under 369
460+section 2 of this act shall create more than two equity joint ventures. No 370
461+cultivator or micro-cultivator that receives a license under section 2 of 371
462+this act shall apply for, or create, any additional equity joint venture if 372
463+such licensee has created two equity joint ventures that have each 373
464+received a provisional license. 374
465+(i) An equity joint venture applicant shall pay fifty per cent of the 375
466+amount of any applicable fee specified in subsection (d) of section 21a-376
467+420e of the general statutes, as amended by this act, for the first three 377
468+renewal cycles of the applicable cannabis establishment license applied 378
469+for, and shall pay the full amount of such fee thereafter. 379
470+Sec. 4. Subsection (a) of section 21a-278b of the general statutes is 380
471+repealed and the following is substituted in lieu thereof (Effective July 1, 381
472+2023): 382 Substitute Bill No. 6700
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479+(a) No person may manufacture, distribute, sell, prescribe, dispense, 383
480+compound, transport with the intent to sell or dispense, possess with 384
481+the intent to sell or dispense, offer, give or administer to another person 385
482+cannabis or cannabis products, except as authorized in chapter 420b or 386
483+420f, [or] sections 21a-420n, as amended by this act, 21a-420p, as 387
484+amended by this act, 21a-420r to 21a-420t, inclusive, as amended by this 388
485+act, or 21a-420w to 21a-420z, inclusive, or section 2 of this act. 389
486+Sec. 5. Section 21a-408 of the general statutes is repealed and the 390
487+following is substituted in lieu thereof (Effective July 1, 2023): 391
488+As used in this section, sections 21a-408a to 21a-408o, inclusive, and 392
489+sections 21a-408r to 21a-408v, inclusive, unless the context otherwise 393
490+requires: 394
491+(1) "Advanced practice registered nurse" means an advanced practice 395
492+registered nurse licensed pursuant to chapter 378; 396
493+(2) "Cannabis establishment" has the same meaning as provided in 397
494+section 21a-420, as amended by this act; 398
495+(3) "Caregiver" means a person, other than the qualifying patient and 399
496+the qualifying patient's physician, physician assistant or advanced 400
497+practice registered nurse, who is eighteen years of age or older and has 401
498+agreed to undertake responsibility for managing the well-being of the 402
499+qualifying patient with respect to the palliative use of marijuana, 403
500+provided (A) in the case of a qualifying patient who is (i) under eighteen 404
501+years of age and not an emancipated minor, or (ii) otherwise lacking 405
502+legal capacity, such person shall be a parent, guardian or person having 406
503+legal custody of such qualifying patient, and (B) in the case of a 407
504+qualifying patient who is eighteen years of age or older or an 408
505+emancipated minor, the need for such person shall be evaluated by the 409
506+qualifying patient's physician, physician assistant or advanced practice 410
507+registered nurse and such need shall be documented in the written 411
508+certification; 412
509+[(3)] (4) "Cultivation" includes planting, propagating, cultivating, 413 Substitute Bill No. 6700
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516+growing and harvesting; 414
517+[(4)] (5) "Debilitating medical condition" means (A) cancer, glaucoma, 415
518+positive status for human immunodeficiency virus or acquired immune 416
519+deficiency syndrome, Parkinson's disease, multiple sclerosis, damage to 417
520+the nervous tissue of the spinal cord with objective neurological 418
521+indication of intractable spasticity, epilepsy or uncontrolled intractable 419
522+seizure disorder, cachexia, wasting syndrome, Crohn's disease, 420
523+posttraumatic stress disorder, irreversible spinal cord injury with 421
524+objective neurological indication of intractable spasticity, cerebral palsy, 422
525+cystic fibrosis or terminal illness requiring end-of-life care, except, if the 423
526+qualifying patient is under eighteen years of age, "debilitating medical 424
527+condition" means terminal illness requiring end-of-life care, irreversible 425
528+spinal cord injury with objective neurological indication of intractable 426
529+spasticity, cerebral palsy, cystic fibrosis, severe epilepsy or uncontrolled 427
530+intractable seizure disorder, or (B) any medical condition, medical 428
531+treatment or disease approved for qualifying patients by the 429
532+Department of Consumer Protection and posted online pursuant to 430
533+section 21a-408l; 431
534+[(5)] (6) "Dispensary facility" means a place of business (A) for which 432
535+the department has issued a dispensary facility license pursuant to this 433
536+chapter, and (B) where marijuana may be dispensed, sold or distributed 434
537+in accordance with this chapter and any regulations adopted 435
538+[thereunder] pursuant to this chapter to qualifying patients and 436
539+caregivers; [and for which the department has issued a dispensary 437
540+facility license pursuant to this chapter;] 438
541+[(6)] (7) "Employee" has the same meaning as provided in section 21a-439
542+420, as amended by this act; 440
543+(8) "Hemp manufacturer" means manufacturer, as defined in section 441
544+22-61l; 442
545+[(7)] (9) "Institutional animal care and use committee" means a 443
546+committee that oversees an organization's animal program, facilities 444 Substitute Bill No. 6700
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553+and procedures to ensure compliance with federal policies, guidelines 445
554+and principles related to the care and use of animals in research; 446
555+[(8)] (10) "Institutional review board" means a specifically constituted 447
556+review body established or designated by an organization to protect the 448
557+rights and welfare of persons recruited to participate in biomedical, 449
558+behavioral or social science research; 450
559+[(9)] (11) "Laboratory" means a laboratory located in the state that is 451
560+licensed by the department to provide analysis of marijuana and that 452
561+meets the licensure requirements set forth in section 21a-246; 453
562+[(10)] (12) "Laboratory employee" means a person who is registered 454
563+as a laboratory employee pursuant to section 21a-408r; 455
564+[(11)] (13) "Licensed dispensary" or "dispensary" means an individual 456
565+who is a licensed pharmacist employed by a dispensary facility or 457
566+hybrid retailer; 458
567+[(12) "Producer" means a person who is licensed as a producer 459
568+pursuant to section 21a-408i;] 460
569+(14) "Manufacturer hemp product" has the same meaning as 461
570+provided in section 22-61l; 462
571+[(13)] (15) "Marijuana" means marijuana, as defined in section 21a-463
572+240; 464
573+[(14)] (16) "Nurse" means a person who is licensed as a nurse [under] 465
574+pursuant to chapter 378; 466
575+[(15)] (17) "Palliative use" means the acquisition, distribution, 467
576+transfer, possession, use or transportation of marijuana or paraphernalia 468
577+relating to marijuana, including the transfer of marijuana and 469
578+paraphernalia relating to marijuana from the patient's caregiver to the 470
579+qualifying patient, to alleviate a qualifying patient's symptoms of a 471
580+debilitating medical condition or the effects of such symptoms, but does 472 Substitute Bill No. 6700
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587+not include any such use of marijuana by any person other than the 473
588+qualifying patient; 474
589+[(16)] (18) "Paraphernalia" means drug paraphernalia, as defined in 475
590+section 21a-240; 476
591+[(17)] (19) "Physician" means a person who is licensed as a physician 477
592+[under] pursuant to chapter 370; 478
593+[(18)] (20) "Physician assistant" means a person who is licensed as a 479
594+physician assistant [under] pursuant to chapter 370; 480
595+[(19) "Caregiver" means a person, other than the qualifying patient 481
596+and the qualifying patient's physician, physician assistant or advanced 482
597+practice registered nurse, who is eighteen years of age or older and has 483
598+agreed to undertake responsibility for managing the well-being of the 484
599+qualifying patient with respect to the palliative use of marijuana, 485
600+provided (A) in the case of a qualifying patient (i) under eighteen years 486
601+of age and not an emancipated minor, or (ii) otherwise lacking legal 487
602+capacity, such person shall be a parent, guardian or person having legal 488
603+custody of such qualifying patient, and (B) in the case of a qualifying 489
604+patient eighteen years of age or older or an emancipated minor, the need 490
605+for such person shall be evaluated by the qualifying patient's physician, 491
606+physician assistant or advanced practice registered nurse and such need 492
607+shall be documented in the written certification;] 493
608+(21) "Producer" means a person who is licensed as a producer 494
609+pursuant to section 21a-408i; 495
610+[(20)] (22) "Qualifying patient" means a person who: (A) Is a resident 496
611+of Connecticut, (B) has been diagnosed by a physician, physician 497
612+assistant or advanced practice registered nurse as having a debilitating 498
613+medical condition, and (C) (i) is eighteen years of age or older, (ii) is an 499
614+emancipated minor, or (iii) has written consent from a custodial parent, 500
615+guardian or other person having legal custody of such person that 501
616+indicates that such person has permission from such parent, guardian 502
617+or other person for the palliative use of marijuana for a debilitating 503 Substitute Bill No. 6700
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624+medical condition and that such parent, guardian or other person will 504
625+(I) serve as a caregiver for the qualifying patient, and (II) control the 505
626+acquisition and possession of marijuana and any related paraphernalia 506
627+for palliative use on behalf of such person. "Qualifying patient" does not 507
628+include an inmate confined in a correctional institution or facility under 508
629+the supervision of the Department of Correction; 509
630+[(21)] (23) "Research program" means a study approved by the 510
631+Department of Consumer Protection in accordance with this chapter 511
632+and undertaken to increase information or knowledge regarding the 512
633+growth or processing of marijuana, or the medical attributes, dosage 513
634+forms, administration or use of marijuana to treat or alleviate symptoms 514
635+of any medical conditions or the effects of such symptoms; 515
636+[(22)] (24) "Research program employee" means a person who (A) is 516
637+registered as a research program employee [under] pursuant to section 517
638+21a-408t, or (B) holds a temporary certificate of registration issued 518
639+pursuant to section 21a-408t; 519
640+[(23)] (25) "Research program subject" means a person registered as a 520
641+research program subject pursuant to section 21a-408v; 521
642+[(24)] (26) "Usable marijuana" means the dried leaves and flowers of 522
643+the marijuana plant, and any mixtures or preparations of such leaves 523
644+and flowers, that are appropriate for the palliative use of marijuana, but 524
645+does not include the seeds, stalks and roots of the marijuana plant; and 525
646+[(25)] (27) "Written certification" means a written certification issued 526
647+by a physician, physician assistant or advanced practice registered 527
648+nurse pursuant to section 21a-408c. 528
649+Sec. 6. Section 21a-408h of the general statutes is repealed and the 529
650+following is substituted in lieu thereof (Effective July 1, 2023): 530
651+(a) No person may act as a dispensary or represent that such person 531
652+is a licensed dispensary unless such person has obtained a license from 532
653+the Commissioner of Consumer Protection pursuant to this section. 533 Substitute Bill No. 6700
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660+(b) No person may act as a dispensary facility or represent that such 534
661+person is a licensed dispensary facility unless such person has obtained 535
662+a license from the Commissioner of Consumer Protection pursuant to 536
663+this section. 537
664+(c) (1) The Commissioner of Consumer Protection shall determine the 538
665+number of dispensary facilities appropriate to meet the needs of 539
666+qualifying patients in this state and shall adopt regulations, in 540
667+accordance with chapter 54, to provide for the licensure and standards 541
668+for dispensary facilities in this state and specify the maximum number 542
669+of dispensary facilities that may be licensed in this state. On and after 543
670+the effective date of such regulations, the commissioner may license any 544
671+person who applies for a license in accordance with such regulations, 545
672+provided the commissioner deems such applicant qualified to acquire, 546
673+possess, distribute and dispense marijuana pursuant to sections 21a-408 547
674+to 21a-408m, inclusive, as amended by this act. At a minimum, such 548
675+regulations shall: 549
676+[(1)] (A) Indicate the maximum number of dispensary facilities that 550
677+may be licensed in this state; 551
678+[(2)] (B) Provide that no marijuana may be dispensed from, obtained 552
679+from or transferred to a location outside of this state; 553
680+[(3)] (C) Establish a licensing fee and renewal fee for each dispensary 554
681+facility, provided such fees shall not be less than the amount necessary 555
682+to cover the direct and indirect cost of licensing and regulating 556
683+dispensary facilities pursuant to sections 21a-408 to 21a-408m, inclusive, 557
684+as amended by this act; 558
685+[(4)] (D) Provide for renewal of such dispensary facility licenses at 559
686+least every two years; 560
687+[(5)] (E) Describe areas in this state where dispensary facilities may 561
688+not be located, after considering the criteria for the location of retail 562
689+liquor permit premises set forth in subsection (a) of section 30-46; 563 Substitute Bill No. 6700
690+
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695+
696+[(6)] (F) Establish health, safety and security requirements for 564
697+dispensary facilities, which may include, but need not be limited to: 565
698+[(A)] (i) The ability to maintain adequate control against the diversion, 566
699+theft and loss of marijuana acquired or possessed by the dispensary 567
700+facility, and [(B)] (ii) the ability to maintain the knowledge, 568
701+understanding, judgment, procedures, security controls and ethics to 569
702+ensure optimal safety and accuracy in the distributing, dispensing and 570
703+use of palliative marijuana; 571
704+[(7)] (G) Establish standards and procedures for revocation, 572
705+suspension, summary suspension and nonrenewal of dispensary facility 573
706+licenses, provided such standards and procedures are consistent with 574
707+the provisions of subsection (c) of section 4-182; and 575
708+[(8)] (H) Establish other licensing, renewal and operational standards 576
709+deemed necessary by the commissioner. 577
710+(2) Notwithstanding the requirements of sections 4-168 to 4-172, 578
711+inclusive, in order to effectuate the purposes of this subsection and 579
712+protect public health and safety, the commissioner, prior to amending 580
713+any regulations adopted pursuant to subdivision (1) of this subsection, 581
714+shall issue policies and procedures to implement the provisions of this 582
715+subsection, which policies and procedures shall have the force and effect 583
716+of law. The commissioner shall post each such policy or procedure on 584
717+the department's Internet web site, and submit such policy or procedure 585
718+to the Secretary of the State for posting on the eRegulations System, at 586
719+least fifteen days prior to the effective date of such policy or procedure. 587
720+Any such policy or procedure shall no longer be effective upon the 588
721+earlier of either the adoption of such policy or procedure as a final 589
722+regulation pursuant to section 4-172 or June 30, 2027, if such regulations 590
723+have not been submitted to the legislative regulation review committee 591
724+for consideration under section 4-170. Not later than January 1, 2024, the 592
725+commissioner shall issue policies and procedures to permit dispensary 593
726+facilities licensed pursuant to this chapter to acquire manufacturer 594
727+hemp products from hemp manufacturers, and sell such manufacturer 595
728+hemp products to qualifying patients and caregivers in accordance with 596 Substitute Bill No. 6700
729+
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734+
735+this chapter, chapter 424 and any regulations adopted pursuant to said 597
736+chapters. At a minimum, such regulations shall require that each such 598
737+manufacturer hemp product be: 599
738+(A) Labeled in a manner that indicates that such manufacturer hemp 600
739+product is (i) a manufacturer hemp product, (ii) subject to different 601
740+testing standards than marijuana, and (iii) not marijuana; and 602
741+(B) Stored separately from marijuana and displayed with signage 603
742+approved by the department. 604
743+(d) Any fees collected by the Department of Consumer Protection 605
744+under this section shall be paid to the State Treasurer and credited to the 606
745+General Fund. 607
746+[(e) On or before January 1, 2017, and annually thereafter, each 608
747+dispensary facility shall report data to the Department of Consumer 609
748+Protection relating to the types, mixtures and dosages of palliative 610
749+marijuana dispensed by such dispensary facility. A report prepared 611
750+pursuant to this subsection shall be in such form as may be prescribed 612
751+by the Commissioner of Consumer Protection.] 613
752+Sec. 7. Section 21a-409 of the general statutes is repealed and the 614
753+following is substituted in lieu thereof (Effective July 1, 2023): 615
754+(a) As used in this section, "producer" has the same meaning as 616
755+provided in section 21a-408, as amended by this act, and "manufacture", 617
756+"market", "cultivate", "hemp", "hemp products", [and] "manufacturer 618
757+hemp products" and "producer hemp products" have the same 619
758+meanings as provided in section 22-61l. Any producer licensed [under] 620
759+pursuant to section 21a-408, as amended by this act, shall manufacture, 621
760+market, cultivate or store hemp and manufacturer hemp products in 622
761+accordance with the provisions of this chapter and any regulations 623
762+adopted [under] pursuant to this chapter. Producers may obtain hemp 624
763+and manufacturer hemp products from a person authorized under the 625
764+laws of this state or another state, territory or possession of the United 626
765+States or another sovereign entity to possess and sell such hemp and 627 Substitute Bill No. 6700
766+
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770+22 of 43
771+
772+manufacturer hemp products. 628
773+(b) Hemp or manufacturer hemp products purchased by producers 629
774+from third parties shall be tracked as a separate batch throughout the 630
775+manufacturing process in order to document the disposition of such 631
776+hemp or manufacturer hemp products. Hemp or manufacturer hemp 632
777+products obtained, manufactured, marketed, cultivated or stored by a 633
778+producer shall be deemed marijuana and shall comply with the 634
779+requirements for marijuana contained in the applicable provisions of the 635
780+general statutes and any regulations adopted [under] pursuant to such 636
781+provisions. Producers shall retain a copy of the certificate of analysis for 637
782+purchased hemp or manufacturer hemp products and invoice and 638
783+transport documents that evidence the quantity purchased and date 639
784+received. 640
785+(c) (1) No hemp or producer hemp products shall be sold or 641
786+distributed within a dispensary facility that is licensed [under] pursuant 642
787+to this chapter. 643
788+(2) Notwithstanding subdivision (1) of this subsection, manufacturer 644
789+hemp products may be sold within a dispensary facility that is licensed 645
790+pursuant to this chapter, provided such manufacturer hemp products 646
791+are (A) sold from a location within the dispensary facility that is separate 647
792+from the area within such dispensary facility where marijuana is sold, 648
793+(B) labeled as hemp products that are not subject to marijuana testing 649
794+standards, and (C) sold in accordance with this chapter, chapter 424 and 650
795+any regulations adopted pursuant to said chapters. 651
796+Sec. 8. Subsections (d) and (e) of section 21a-420b of the general 652
797+statutes are repealed and the following is substituted in lieu thereof 653
798+(Effective July 1, 2023): 654
799+(d) No law enforcement officer employed by an agency that receives 655
800+state or local government funds shall expend state or local resources, 656
801+including the officer's time, to effect any arrest or seizure of cannabis, or 657
802+conduct any investigation, on the sole basis of activity the officer 658 Substitute Bill No. 6700
803+
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808+
809+believes to constitute a violation of federal law if the officer has reason 659
810+to believe that such activity is in compliance with this section and 660
811+sections 21a-420a, 21a-420c to 21a-420i, inclusive, 21a-420l to 21a-420n, 661
812+inclusive, as amended by this act, 21a-420p, as amended by this act, to 662
813+21a-420t, inclusive, 21a-420v to 21a-421c, inclusive, 21a-421f, as 663
814+amended by this act, 21a-421g, 21a-421j to 21a-421q, inclusive, 21a-421aa 664
815+to 21a-421dd, inclusive, 21a-422k and 53-247a, [and] sections 23, 60 and 665
816+63 to 65, inclusive, of public act 21-1 of the June special session, [or] 666
817+chapter 420f or section 2 of this act. 667
818+(e) An officer may not expend state or local resources, including the 668
819+officer's time, to provide any information or logistical support to any 669
820+federal law enforcement authority or prosecuting entity related to 670
821+activity the officer believes to constitute a violation of federal law if the 671
822+officer has reason to believe that such activity is in compliance with the 672
823+provisions of this section and sections 21a-420a, 21a-420c to 21a-420i, 673
824+inclusive, 21a-420l to 21a-420n, inclusive, as amended by this act, 21a-674
825+420p to 21a-420t, inclusive, as amended by this act, 21a-420v to 21a-421c, 675
826+inclusive, 21-421f, 21a-421g, 21a-421j to 21a-421q, inclusive, 21a-421aa to 676
827+21a-421dd, inclusive, 21a-422k and 53-247a, [and] sections 23, 60 and 63 677
828+to 65, inclusive, of public act 21-1 of the June special session, [or] chapter 678
829+420f or section 2 of this act. 679
830+Sec. 9. Subsection (k) of section 21a-420d of the general statutes is 680
831+repealed and the following is substituted in lieu thereof (Effective July 1, 681
832+2023): 682
833+(k) The council shall develop criteria for evaluating the ownership 683
834+and control of any equity joint venture created under section 21a-420m, 684
835+as amended by this act, 21a-420u, as amended by this act, or [section] 685
836+21a-420j, as amended by this act, or section 3 of this act and shall review 686
837+and approve or deny in writing such equity joint venture prior to such 687
838+equity joint venture being licensed [under] pursuant to section 21a-688
839+420m, as amended by this act, 21a-420u, as amended by this act, or 689
840+[section] 21a-420j, as amended by this act, or section 3 of this act. After 690
841+developing criteria for social equity plans as described in subdivision 691 Substitute Bill No. 6700
842+
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847+
848+(5) of subsection (h) of this section, the council shall review and approve 692
849+or deny in writing any such plan submitted by a cannabis establishment 693
850+as part of its final license application. The council shall not approve any 694
851+equity joint venture applicant which shares with an equity joint venture 695
852+any individual owner who meets the criteria established in 696
853+subparagraphs (A) and (B) of subdivision [(48)] (51) of section 21a-420, 697
854+as amended by this act. 698
855+Sec. 10. Section 21a-420e of the general statutes is repealed and the 699
856+following is substituted in lieu thereof (Effective July 1, 2023): 700
857+(a) Not later than thirty days after the date that the Social Equity 701
858+Council identifies the criteria and the necessary supporting 702
859+documentation for social equity applicants and posts such information 703
860+on its Internet web site, the department may accept applications for the 704
861+following cannabis establishment license types: (1) Retailer, (2) hybrid 705
862+retailer, (3) cultivator, (4) micro-cultivator, (5) product manufacturer, (6) 706
863+food and beverage manufacturer, (7) product packager, (8) delivery 707
864+service, and (9) transporter. Each application for licensure shall require 708
865+the applicant to indicate whether the applicant wants to be considered 709
866+for treatment as a social equity applicant. 710
867+(b) On and after July 1, 2021, the department may accept applications 711
868+from any dispensary facility to convert its license to a hybrid-retailer 712
869+license and any producer for expanded authorization to engage in the 713
870+adult use cannabis market under its license issued pursuant to section 714
871+21a-408i. 715
872+(c) During the period beginning October 1, 2023, and ending 716
873+December 31, 2023, the department shall accept applications from any 717
874+hemp producer to become licensed as a cultivator or micro-cultivator 718
875+under section 2 of this act. 719
876+[(c)] (d) Except as provided in subsection [(e)] (f) of this section, the 720
877+following fees shall be paid by each applicant: 721
878+(1) For a retailer license, the fee to enter the lottery shall be five 722 Substitute Bill No. 6700
879+
880+
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883+25 of 43
884+
885+hundred dollars, the fee to receive a provisional license shall be five 723
886+thousand dollars and the fee to receive a final license or a renewal of a 724
887+final license shall be twenty-five thousand dollars. 725
888+(2) For a hybrid retailer license, the fee to enter the lottery shall be five 726
889+hundred dollars, the fee to receive a provisional license shall be five 727
890+thousand dollars and the fee to receive a final license or a renewal of a 728
891+final license shall be twenty-five thousand dollars. 729
892+(3) For a cultivator license, the fee to enter the lottery shall be one 730
893+thousand dollars, the fee to receive a provisional license shall be twenty-731
894+five thousand dollars and the fee to receive a final license or a renewal 732
895+of a final license shall be seventy-five thousand dollars. 733
896+(4) For a micro-cultivator license, the fee to enter the lottery shall be 734
897+two hundred fifty dollars, the fee to receive a provisional license shall 735
898+be five hundred dollars and the fee to receive a final license or a renewal 736
899+of a final license shall be one thousand dollars. 737
900+(5) For a product manufacturer license, the fee to enter the lottery 738
901+shall be seven hundred fifty dollars, the fee to receive a provisional 739
902+license shall be five thousand dollars and the fee to receive a final license 740
903+or a renewal of a final license shall be twenty-five thousand dollars. 741
904+(6) For a food and beverage manufacturer license, the fee to enter the 742
905+lottery shall be two hundred fifty dollars, the fee to receive a provisional 743
906+license shall be one thousand dollars and the fee to receive a final license 744
907+or a renewal of a final license shall be five thousand dollars. 745
908+(7) For a product packager license, the fee to enter the lottery shall be 746
909+five hundred dollars, the fee to receive a provisional license shall be five 747
910+thousand dollars and the fee to receive a final license or a renewal of a 748
911+final license shall be twenty-five thousand dollars. 749
912+(8) For a delivery service or transporter license, the fee to enter the 750
913+lottery shall be two hundred fifty dollars, the fee to receive a provisional 751
914+license shall be one thousand dollars and the fee to receive a final license 752 Substitute Bill No. 6700
915+
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919+26 of 43
920+
921+or a renewal of a final license shall be five thousand dollars. 753
922+(9) For an initial or renewal of a backer license, the fee shall be one 754
923+hundred dollars. 755
924+(10) For an initial or renewal of a key employee license, the fee shall 756
925+be one hundred dollars. 757
926+(11) For an initial or renewal of a registration of an employee who is 758
927+not a key employee, the fee shall be fifty dollars. 759
928+(12) The license conversion fee for a dispensary facility to become a 760
929+hybrid retailer shall be one million dollars, except as provided in section 761
930+21a-420u, as amended by this act. 762
931+(13) The license conversion fee for a producer to engage in the adult 763
932+use cannabis market shall be three million dollars, except as provided in 764
933+section 21a-420l. 765
934+(14) For a hemp producer that converts to a cultivator license under 766
935+section 2 of this act, (A) the fee to receive an initial license shall be twelve 767
936+dollars per square foot of grow space, provided, if the hemp producer 768
937+participates in two approved equity joint ventures as described in 769
938+section 3 of this act, such fee shall be six dollars per square foot of grow 770
939+space, and (B) the fee to receive a renewal of a license shall be the same 771
940+as the renewal fee established in subdivision (3) of this subsection. 772
941+(15) For a hemp producer that converts to a micro-cultivator license 773
942+under section 2 of this act, (A) the fee to receive an initial license shall be 774
943+twelve dollars per square foot of grow space, provided, if the hemp 775
944+producer participates in two approved equity joint ventures as 776
945+described in section 3 of this act, such fee shall be six dollars per square 777
946+foot of grow space, and (B) the fee to receive renewal of a final license 778
947+shall be the same as the renewal fee established in subdivision (4) of this 779
948+subsection. 780
949+[(d)] (e) For any dispensary facility that has become a hybrid retailer, 781 Substitute Bill No. 6700
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955+
956+the renewal fee shall be the same as the fee for a hybrid retailer set forth 782
957+in subdivision (2) of subsection [(c)] (d) of this section. For any producer, 783
958+the renewal fee shall be the same as set forth in section 21a-408i. A social 784
959+equity applicant shall pay fifty per cent of the amount of any of the fees 785
960+specified in subsection [(c)] (d) of this section for the first three renewal 786
961+cycles of the applicable cannabis establishment license applied for, and 787
962+the full amount thereafter, provided in the case of the fees set forth in 788
963+subdivisions (12) and (13) of subsection [(c)] (d) of this section, a social 789
964+equity applicant shall pay the full amount of the fee. 790
965+[(e)] (f) (1) For the fiscal year ending June 30, 2023, [and thereafter,] 791
966+the fees collected by the department under this section shall be paid to 792
967+the State Treasurer and credited to the General Fund, except that the fees 793
968+collected under subdivisions (12) and (13) of subsection [(c)] (d) of this 794
969+section shall be deposited in the Social Equity and Innovation Fund 795
970+established under section 21a-420f, as amended by this act. 796
971+(2) For the fiscal year ending June 30, 2024, and thereafter, the fees 797
972+collected by the department under this section shall be paid to the State 798
973+Treasurer and credited to the General Fund, except that the fees 799
974+collected under subdivisions (12) to (15), inclusive, of subsection (d) of 800
975+this section shall be deposited in the Social Equity and Innovation Fund 801
976+established under section 21a-420f, as amended by this act. 802
977+[(f)] (g) For each license type: 803
978+(1) Applicants shall apply on a form and in a manner prescribed by 804
979+the commissioner, which form shall include a method for the applicant 805
980+to request consideration as a social equity applicant; and 806
981+(2) The department shall post on its Internet web site the application 807
982+period, which shall specify the first and last date that the department 808
983+will accept applications for that license type. The first date that the 809
984+department shall accept applications shall be no sooner than thirty days 810
985+after the date the Social Equity Council posts the criteria and supporting 811
986+documentation necessary to qualify for consideration as a social equity 812 Substitute Bill No. 6700
987+
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991+28 of 43
992+
993+applicant as set forth in section 21a-420g. Only complete license 813
994+applications received by the department during the application period 814
995+shall be considered. 815
996+Sec. 11. Subsections (a) and (b) of section 21a-420f of the general 816
997+statutes are repealed and the following is substituted in lieu thereof 817
998+(Effective July 1, 2023): 818
999+(a) (1) There is established an account to be known as the "cannabis 819
1000+regulatory and investment account" which shall be a separate, 820
1001+nonlapsing account within the General Fund. The account shall contain 821
1002+any moneys required by law to be deposited in the account. Moneys in 822
1003+the account shall be allocated by the Secretary of the Office of Policy and 823
1004+Management, in consultation with the Social Equity Council, as defined 824
1005+in section 21a-420, as amended by this act, to state agencies for the 825
1006+purpose of paying costs incurred to implement the activities authorized 826
1007+under RERACA, as defined in section 21a-420, as amended by this act. 827
1008+(2) Notwithstanding the provisions of section 21a-420e, as amended 828
1009+by this act, for the fiscal years ending June 30, 2022, and June 30, 2023, 829
1010+the following shall be deposited in the cannabis regulatory and 830
1011+investment account: (A) All fees received by the state pursuant to 831
1012+section 21a-421b and subdivisions (1) to (11), inclusive, of subsection 832
1013+[(c)] (d) of section 21a-420e, as amended by this act; (B) the tax received 833
1014+by the state under section 12-330ll; and (C) the tax received by the state 834
1015+under chapter 219 from a cannabis retailer, hybrid retailer or micro-835
1016+cultivator, as those terms are defined in section 12-330ll. 836
1017+(3) At the end of the fiscal year ending June 30, 2023, all moneys 837
1018+remaining in the cannabis regulatory and investment account shall be 838
1019+transferred to the General Fund. 839
1020+(b) (1) There is established an account to be known as the "social 840
1021+equity and innovation account" which shall be a separate, nonlapsing 841
1022+account within the General Fund. The account shall contain any moneys 842
1023+required by law to be deposited in the account. Moneys in the account 843 Substitute Bill No. 6700
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1029+
1030+shall be allocated by the Secretary of the Office of Policy and 844
1031+Management, in consultation with the Social Equity Council, to state 845
1032+agencies for the purpose of (A) paying costs incurred by the Social 846
1033+Equity Council, (B) administering programs under RERACA to provide 847
1034+(i) access to capital for businesses, (ii) technical assistance for the start-848
1035+up and operation of a business, (iii) funding for workforce education, 849
1036+and (iv) funding for community investments, and (C) paying costs 850
1037+incurred to implement the activities authorized under RERACA. 851
1038+(2) Notwithstanding the provisions of sections 21a-420e, as amended 852
1039+by this act, and 21a-420o, for the fiscal years ending June 30, 2022, and 853
1040+June 30, 2023, the following shall be deposited in the social equity and 854
1041+innovation account: All fees received by the state pursuant to sections 855
1042+21a-420l, 21a-420o and 21a-420u, as amended by this act, and 856
1043+subdivisions (12) and (13) of subsection [(c)] (d) of section 21a-420e, as 857
1044+amended by this act. 858
1045+(3) At the end of the fiscal year ending June 30, 2023, five million 859
1046+dollars shall be transferred from the social equity and innovation 860
1047+account to the General Fund, or, if the account contains less than five 861
1048+million dollars, all remaining moneys in the account. All moneys in the 862
1049+account not transferred to the General Fund pursuant to this 863
1050+subdivision shall be transferred to the Social Equity and Innovation 864
1051+Fund established under subsection (c) of this section. 865
1052+Sec. 12. Subsection (f) of section 21a-420j of the general statutes is 866
1053+repealed and the following is substituted in lieu thereof (Effective July 1, 867
1054+2023): 868
1055+(f) An equity joint venture applicant shall pay fifty per cent of the 869
1056+amount of any applicable fee specified in subsection [(c)] (d) of section 870
1057+21a-420e, as amended by this act, for the first three renewal cycles of the 871
1058+applicable cannabis establishment license applied for, and shall pay the 872
1059+full amount of such fee thereafter. 873
1060+Sec. 13. Subsections (b) to (i), inclusive, of section 21a-420m of the 874 Substitute Bill No. 6700
1061+
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1066+
1067+general statutes are repealed and the following is substituted in lieu 875
1068+thereof (Effective July 1, 2023): 876
1069+(b) The equity joint venture shall be in any cannabis establishment 877
1070+licensed business, other than a cultivator license, provided such equity 878
1071+joint venture is at least fifty per cent owned and controlled by an 879
1072+individual or individuals who meet, or the equity joint venture 880
1073+applicant is an individual who meets, the criteria established in 881
1074+subparagraphs (A) and (B) of subdivision [(48)] (51) of section 21a-420, 882
1075+as amended by this act. 883
1076+(c) The equity joint venture applicant shall submit an application to 884
1077+the Social Equity Council that may include, but need not be limited to, 885
1078+evidence of business formation, ownership allocation, terms of 886
1079+ownership and financing and proof of social equity status. The equity 887
1080+joint venture applicant shall submit to the Social Equity Council 888
1081+information including, but not limited to, the organizing documents of 889
1082+the entity that outline the ownership stake of each backer, initial backer 890
1083+investment and payout information to enable the council to determine 891
1084+the terms of ownership. 892
1085+(d) Upon obtaining the written approval of the Social Equity Council 893
1086+for an equity joint venture, the equity joint venture applicant shall apply 894
1087+for a license from the department in the same form as required by all 895
1088+other licensees of the same license type, except that such application 896
1089+shall not be subject to the lottery. 897
1090+(e) A producer, including the backer of such producer, shall not 898
1091+increase its ownership in an equity joint venture in excess of fifty per 899
1092+cent during the seven-year period after a license is issued by the 900
1093+department [under] pursuant to this section. 901
1094+(f) Equity joint ventures that share a common producer or producer 902
1095+backer and that are retailers or hybrid retailers shall not be located 903
1096+within twenty miles of another commonly owned equity joint venture. 904
1097+(g) If a producer has paid a reduced conversion fee, as described in 905 Substitute Bill No. 6700
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1104+subsection (b) of section 21a-420l, and subsequently did not create two 906
1105+equity joint ventures under this section that, not later than fourteen 907
1106+months after the Department of Consumer Protection approved the 908
1107+producer's license expansion application under section 21a-420l, each 909
1108+received a final license from the department, the producer shall be liable 910
1109+for the full conversion fee of three million dollars established in section 911
1110+21a-420l minus such paid reduced conversion fee. 912
1111+(h) No producer that receives license expansion authorization under 913
1112+section 21a-420l shall create more than two equity joint ventures. No 914
1113+such producer shall apply for, or create, any additional equity joint 915
1114+venture if, on the effective date of this section, such producer has created 916
1115+at least two equity joint ventures that have each received a provisional 917
1116+license. 918
1117+(i) An equity joint venture applicant shall pay fifty per cent of the 919
1118+amount of any applicable fee specified in subsection [(c)] (d) of section 920
1119+21a-420e, as amended by this act, for the first three renewal cycles of the 921
1120+applicable cannabis establishment license applied for, and shall pay the 922
1121+full amount of such fee thereafter. 923
1122+Sec. 14. Subsection (b) of section 21a-420n of the general statutes is 924
1123+repealed and the following is substituted in lieu thereof (Effective July 1, 925
1124+2023): 926
1125+(b) A cultivator is authorized to cultivate, grow and propagate 927
1126+cannabis at an establishment containing not less than fifteen thousand 928
1127+square feet of grow space, provided such cultivator complies with the 929
1128+provisions of any regulations adopted under section 21a-420q, as 930
1129+amended by this act, concerning grow space. A cultivator establishment 931
1130+shall meet physical security controls and protocols set forth and 932
1131+required by the commissioner. A cultivator that converts under section 933
1132+2 of this act shall not cultivate, grow or propagate cannabis at an 934
1133+establishment containing more than eighty thousand square feet of 935
1134+grow space. 936 Substitute Bill No. 6700
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1141+Sec. 15. Subsection (c) of section 21a-420p of the general statutes is 937
1142+repealed and the following is substituted in lieu thereof (Effective July 1, 938
1143+2023): 939
1144+(c) A micro-cultivator may apply for expansion of its grow space, in 940
1145+increments of five thousand square feet, on an annual basis, from the 941
1146+date of initial licensure, if such licensee is not subject to any pending or 942
1147+final administrative actions or judicial findings. If there are any pending 943
1148+or final administrative actions or judicial findings against the licensee, 944
1149+the department shall conduct a suitability review to determine whether 945
1150+such expansion shall be granted, which determination shall be final and 946
1151+appealable only to the Superior Court. The micro-cultivator may apply 947
1152+for an expansion of its business annually upon renewal of its credential 948
1153+until such licensee reaches a maximum of twenty-five thousand square 949
1154+feet of grow space or, if such licensee converted under section 2 of this 950
1155+act, a maximum of ten thousand square feet of grow space. If a micro-951
1156+cultivator desires to expand beyond twenty-five thousand square feet of 952
1157+grow space, the micro-cultivator licensee may apply for a cultivator 953
1158+license one year after its last expansion request. The micro-cultivator 954
1159+licensee shall not be required to apply through the lottery application 955
1160+process to convert its license to a cultivator license. If a micro-cultivator 956
1161+maintains its license and meets all of the application and licensure 957
1162+requirements for a cultivator license, including payment of the 958
1163+cultivator license fee established under section 21a-420e, as amended by 959
1164+this act, the micro-cultivator licensee shall be granted a cultivator 960
1165+license. 961
1166+Sec. 16. Section 21a-420q of the general statutes is repealed and the 962
1167+following is substituted in lieu thereof (Effective July 1, 2023): 963
1168+The commissioner shall adopt regulations, in accordance with the 964
1169+provisions of chapter 54, to establish the maximum grow space 965
1170+permitted by a cultivator and micro-cultivator. Such regulations shall 966
1171+not permit a cultivator or micro-cultivator that converts under section 2 967
1172+of this act to cultivate more than eighty thousand square feet or ten 968
1173+thousand square feet of grow space, respectively, or the aggregate grow 969 Substitute Bill No. 6700
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1179+
1180+space of all cultivators and micro-cultivators that convert under said 970
1181+section 2 of this act to exceed two hundred fifty thousand square feet. In 971
1182+adopting such regulations, the commissioner shall seek to ensure an 972
1183+adequate supply of cannabis for the market. Notwithstanding the 973
1184+requirements of sections 4-168 to 4-172, inclusive, in order to effectuate 974
1185+this section, prior to adopting such regulations, the commissioner shall 975
1186+issue policies and procedures to implement the provisions of this section 976
1187+that shall have the force and effect of law. The commissioner shall post 977
1188+all policies and procedures on the department's Internet web site and 978
1189+submit such policies and procedures to the Secretary of the State for 979
1190+posting on the eRegulations System, at least fifteen days prior to the 980
1191+effective date of any policy or procedure. Any such policy or procedure 981
1192+shall no longer be effective upon the earlier of either the adoption of the 982
1193+policy or procedure as a final regulation under section 4-172 or forty-983
1194+eight months from July 1, 2021, if such regulations have not been 984
1195+submitted to the legislative regulation review committee for 985
1196+consideration under section 4-170. 986
1197+Sec. 17. Section 21a-420r of the general statutes is repealed and the 987
1198+following is substituted in lieu thereof (Effective July 1, 2023): 988
1199+(a) On and after July 1, 2021, the department may issue or renew a 989
1200+license for a person to be a retailer. No person may act as a retailer or 990
1201+represent that such person is a retailer unless such person has obtained 991
1202+a license from the department pursuant to this section. 992
1203+(b) A retailer may obtain cannabis from a cultivator, micro-cultivator, 993
1204+producer, product packager, food and beverage manufacturer, product 994
1205+manufacturer or transporter or an undeliverable return from a delivery 995
1206+service. A retailer may sell, transport or transfer cannabis or cannabis 996
1207+products to a delivery service, laboratory or research program. A retailer 997
1208+may sell cannabis to a consumer or research program. A retailer may 998
1209+not conduct sales of medical marijuana products nor offer discounts or 999
1210+other inducements to qualifying patients or caregivers. A retailer shall 1000
1211+not gift or transfer cannabis at no cost to a consumer as part of a 1001
1212+commercial transaction. 1002 Substitute Bill No. 6700
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1218+
1219+(c) Retailers shall maintain a secure location, in a manner approved 1003
1220+by the commissioner, at the licensee's premises where cannabis that is 1004
1221+unable to be delivered by an employee or delivery service may be 1005
1222+returned to the retailer. Such secure cannabis return location shall meet 1006
1223+specifications set forth by the commissioner and published on the 1007
1224+department's Internet web site or included in regulations adopted by 1008
1225+the department. 1009
1226+(d) A retailer may deliver cannabis through a delivery service or by 1010
1227+utilizing its own employees, subject to the provisions of subsection (b) 1011
1228+of section 21a-420c. 1012
1229+(e) Notwithstanding the requirements of sections 4-168 to 4-172, 1013
1230+inclusive, in order to effectuate the purposes of this section and protect 1014
1231+public health and safety, the commissioner, prior to amending any 1015
1232+regulations adopted pursuant to chapter 54 to implement the provisions 1016
1233+of this section, shall issue policies and procedures to implement the 1017
1234+provisions of this section, which policies and procedures shall have the 1018
1235+force and effect of law. The commissioner shall post each such policy or 1019
1236+procedure on the department's Internet web site, and submit such policy 1020
1237+or procedure to the Secretary of the State for posting on the eRegulations 1021
1238+System, at least fifteen days prior to the effective date of such policy or 1022
1239+procedure. Any such policy or procedure shall no longer be effective 1023
1240+upon the earlier of either the adoption of such policy or procedure as a 1024
1241+final regulation pursuant to section 4-172 or June 30, 2027, if such 1025
1242+regulations have not been submitted to the legislative regulation review 1026
1243+committee for consideration under section 4-170. At a minimum, such 1027
1244+policies, procedures and regulations shall require that each 1028
1245+manufacturer hemp product be: 1029
1246+(1) Labeled in a manner that indicates that such manufacturer hemp 1030
1247+product is (A) a manufacturer hemp product, (B) subject to different 1031
1248+testing standards than cannabis, and (C) not cannabis or a cannabis 1032
1249+product; and 1033
1250+(2) Stored separately from cannabis and cannabis products and 1034 Substitute Bill No. 6700
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1257+displayed with signage approved by the department. 1035
1258+Sec. 18. Section 21a-420s of the general statutes is repealed and the 1036
1259+following is substituted in lieu thereof (Effective July 1, 2023): 1037
1260+(a) On and after July 1, 2021, the department may issue or renew a 1038
1261+license for a hybrid retailer. No person may act as a hybrid retailer or 1039
1262+represent that such person is a hybrid retailer unless such person has 1040
1263+obtained a license from the department pursuant to this section. 1041
1264+(b) A hybrid retailer may obtain cannabis from a cultivator, micro-1042
1265+cultivator, producer, product packager, food and beverage 1043
1266+manufacturer, product manufacturer or transporter. In addition to the 1044
1267+activities authorized under section 21a-420t, a hybrid retailer may sell, 1045
1268+transport or transfer cannabis to a delivery service, laboratory or 1046
1269+research program. A hybrid retailer may sell cannabis products to a 1047
1270+consumer or research program. A hybrid retailer shall not gift or 1048
1271+transfer cannabis at no cost to a consumer, qualifying patient or 1049
1272+caregiver as part of a commercial transaction. 1050
1273+(c) In addition to conducting general retail sales, a hybrid retailer may 1051
1274+sell cannabis and medical marijuana products, to qualifying patients 1052
1275+and caregivers. Any cannabis or medical marijuana products sold to 1053
1276+qualifying patients and caregivers shall be dispensed by a licensed 1054
1277+pharmacist and shall be recorded in the electronic prescription drug 1055
1278+monitoring program, established pursuant to section 21a-254, in real-1056
1279+time or immediately upon completion of the transaction, unless not 1057
1280+reasonably feasible for a specific transaction, but in no case longer than 1058
1281+one hour after completion of the transaction. Only a licensed pharmacist 1059
1282+or dispensary technician may upload or access data in the prescription 1060
1283+drug monitoring program. 1061
1284+(d) A hybrid retailer shall maintain a licensed pharmacist on premises 1062
1285+at all times when the hybrid retail location is open to the public or to 1063
1286+qualifying patients and caregivers. 1064
1287+(e) The hybrid retailer location shall include a private consultation 1065 Substitute Bill No. 6700
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1293+
1294+space for pharmacists to meet with qualifying patients and caregivers. 1066
1295+Additionally, the hybrid retailer premises shall accommodate an 1067
1296+expedited method of entry that allows for priority entrance into the 1068
1297+premises for qualifying patients and caregivers. 1069
1298+(f) Hybrid retailers shall maintain a secure location, in a manner 1070
1299+approved by the commissioner, at the licensee's premises where 1071
1300+cannabis that is unable to be delivered may be returned to the hybrid 1072
1301+retailer. Such secure cannabis return location shall meet specifications 1073
1302+set forth by the commissioner and published on the department's 1074
1303+Internet web site or included in regulations adopted by the department. 1075
1304+(g) Cannabis dispensed to a qualifying patient or caregiver that are 1076
1305+unable to be delivered and are returned by the delivery service to the 1077
1306+hybrid retailer shall be returned to the licensee inventory system and 1078
1307+removed from the prescription drug monitoring program not later than 1079
1308+forty-eight hours after receipt of the cannabis from the delivery service. 1080
1309+(h) A hybrid retailer may not convert its license to a retailer license. 1081
1310+To obtain a retailer license, a hybrid retailer shall apply through the 1082
1311+lottery application process. A hybrid retailer may convert to a 1083
1312+dispensary facility if the hybrid retailer complies with all applicable 1084
1313+provisions of chapter 420f, and upon written approval by the 1085
1314+department. 1086
1315+(i) Notwithstanding the requirements of sections 4-168 to 4-172, 1087
1316+inclusive, in order to effectuate the purposes of this section and protect 1088
1317+public health and safety, the commissioner, prior to amending any 1089
1318+regulations adopted pursuant to chapter 54 to implement the provisions 1090
1319+of this section, shall issue policies and procedures to implement the 1091
1320+provisions of this section, which policies and procedures shall have the 1092
1321+force and effect of law. The commissioner shall post each such policy or 1093
1322+procedure on the department's Internet web site, and submit such policy 1094
1323+or procedure to the Secretary of the State for posting on the eRegulations 1095
1324+System, at least fifteen days prior to the effective date of such policy or 1096
1325+procedure. Any such policy or procedure shall no longer be effective 1097 Substitute Bill No. 6700
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1331+
1332+upon the earlier of either the adoption of such policy or procedure as a 1098
1333+final regulation pursuant to section 4-172 or June 30, 2027, if such 1099
1334+regulations have not been submitted to the legislative regulation review 1100
1335+committee for consideration under section 4-170. At a minimum, such 1101
1336+policies, procedures and regulations shall require that each 1102
1337+manufacturer hemp product be: 1103
1338+(1) Labeled in a manner that indicates that such manufacturer hemp 1104
1339+product is (A) a manufacturer hemp product, (B) subject to different 1105
1340+testing standards than cannabis, and (C) not cannabis or a cannabis 1106
1341+product; and 1107
1342+(2) Stored separately from cannabis and cannabis products and 1108
1343+displayed with signage approved by the department. 1109
1344+Sec. 19. Subsections (b) to (i), inclusive, of section 21a-420u of the 1110
1345+general statutes are repealed and the following is substituted in lieu 1111
1346+thereof (Effective July 1, 2023): 1112
1347+(b) Any equity joint venture created under this section shall be 1113
1348+created for the development of a cannabis establishment, other than a 1114
1349+cultivator, provided such equity joint venture is at least fifty per cent 1115
1350+owned and controlled by an individual or individuals who meet, or the 1116
1351+equity joint venture applicant is an individual who meets, the criteria 1117
1352+established in subparagraphs (A) and (B) of subdivision [(48)] (51) of 1118
1353+section 21a-420, as amended by this act. 1119
1354+(c) An equity joint venture applicant shall submit an application to 1120
1355+the Social Equity Council that may include, but need not be limited to, 1121
1356+evidence of business formation, ownership allocation, terms of 1122
1357+ownership and financing and proof of social equity status. The equity 1123
1358+joint venture applicant shall submit to the Social Equity Council 1124
1359+information including, but not limited to, the organizing documents of 1125
1360+the entity that outline the ownership stake of each backer, initial backer 1126
1361+investment and payout information to enable the council to determine 1127
1362+the terms of ownership. 1128 Substitute Bill No. 6700
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1368+
1369+(d) Upon receipt of written approval of the equity joint venture by 1129
1370+the Social Equity Council, the equity joint venture applicant shall apply 1130
1371+for a license from the department in the same form as required by all 1131
1372+other licensees of the same license type and subject to the same fees as 1132
1373+required by all other licensees of the same license type. 1133
1374+(e) A dispensary facility, including the backers of such dispensary 1134
1375+facility, shall not increase its ownership in an equity joint venture in 1135
1376+excess of fifty per cent during the seven-year period after a license is 1136
1377+issued by the department [under] pursuant to this section. 1137
1378+(f) Equity joint ventures that are retailers or hybrid retailers that share 1138
1379+a common dispensary facility or dispensary facility backer owner shall 1139
1380+not be located within twenty miles of another commonly owned equity 1140
1381+joint venture. 1141
1382+(g) If a dispensary facility has paid the reduced conversion fee, in 1142
1383+accordance with subsection (a) of this section, and did not subsequently 1143
1384+create one equity joint venture under this section that, not later than 1144
1385+fourteen months after the Department of Consumer Protection 1145
1386+approved the dispensary facility's license conversion application under 1146
1387+section 21a-420t, receives a final license from the department, the 1147
1388+dispensary facility shall be liable for the full conversion fee of one 1148
1389+million dollars established in section 21a-420e, as amended by this act, 1149
1390+minus such paid reduced conversion fee. 1150
1391+(h) No dispensary facility that receives approval to convert the 1151
1392+dispensary facility's license to a hybrid-retailer license under section 1152
1393+21a-420t shall create more than two equity joint ventures. No such 1153
1394+dispensary facility shall apply for, or create, any additional equity joint 1154
1395+venture if [, on the effective date of this section,] such dispensary facility 1155
1396+has created at least two equity joint ventures that have each received a 1156
1397+provisional license. 1157
1398+(i) An equity joint venture applicant shall pay fifty per cent of the 1158
1399+amount of any applicable fee specified in subsection [(c)] (d) of section 1159 Substitute Bill No. 6700
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1406+21a-420e, as amended by this act, for the first three renewal cycles of the 1160
1407+applicable cannabis establishment license applied for, and shall pay the 1161
1408+full amount of such fee thereafter. 1162
1409+Sec. 20. Section 21a-421f of the general statutes is repealed and the 1163
1410+following is substituted in lieu thereof (Effective July 1, 2023): 1164
1411+(a) The Social Equity Council, in coordination with the Departments 1165
1412+of Consumer Protection and Economic and Community Development, 1166
1413+shall develop a cannabis business accelerator program to provide 1167
1414+technical assistance to participants by partnering participants with a 1168
1415+cannabis establishment. The Social Equity Council may partner with a 1169
1416+constituent unit of the state system of higher education in developing 1170
1417+the program. 1171
1418+(b) Any individual who would qualify as a social equity applicant 1172
1419+may apply to participate in the accelerator program under this section. 1173
1420+(c) [On and after October 1, 2021, the] The Social Equity Council may 1174
1421+accept applications from an individual described in subsection (b) of this 1175
1422+section for the component of the accelerator program corresponding to 1176
1423+each of the following license types: (1) Retailer, (2) cultivator, (3) product 1177
1424+manufacturer, (4) food and beverage manufacturer, and (5) product 1178
1425+packager. 1179
1426+(d) [On and after July 1, 2022, the] The council may accept 1180
1427+applications from (1) retailers, (2) cultivators, (3) product 1181
1428+manufacturers, (4) food and beverage manufacturers, (5) product 1182
1429+packagers, (6) hybrid-retailers, and (7) micro-cultivators, licensed 1183
1430+pursuant to section 21a-420e, as amended by this act, to partner with 1184
1431+participants in the accelerator program component corresponding to the 1185
1432+same license type, provided an accelerator retailer participant may be 1186
1433+partnered with either a retailer or hybrid retailer and an accelerator 1187
1434+cultivator participant may be partnered with either a cultivator or 1188
1435+micro-cultivator. 1189
1436+(e) As part of the cannabis business accelerator program, accelerator 1190 Substitute Bill No. 6700
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1442+
1443+participants may be required to participate in training on accounting 1191
1444+methods, business services, how to access capital markets and financing 1192
1445+opportunities and on regulatory compliance. Social equity applicants 1193
1446+who have been awarded either a provisional license or a final license for 1194
1447+a cannabis establishment may participate in the training programs made 1195
1448+available under this section. 1196
1449+(f) The Social Equity Council shall facilitate opportunities for 1197
1450+participants in the cannabis business accelerator program to meet with 1198
1451+potential investors. 1199
1452+(g) A participant who has partnered with a cannabis establishment 1200
1453+pursuant to subsection (d) of this section shall be allowed to participate 1201
1454+in any activity of the cannabis establishment with the same privileges 1202
1455+afforded by the cannabis establishment's license to employees of such 1203
1456+cannabis establishment. 1204
1457+(h) Each participant shall annually apply for and obtain a registration, 1205
1458+on a form and in a manner prescribed by the commissioner, prior to 1206
1459+participating in any activity of a cannabis establishment. The Social 1207
1460+Equity Council may charge a registration fee to participants. 1208
1461+(i) The Social Equity Council may determine the duration of the 1209
1462+program and number of participants under this section. 1210
1463+Sec. 21. Section 22-61n of the general statutes is repealed and the 1211
1464+following is substituted in lieu thereof (Effective July 1, 2023): 1212
1465+(a) As used in this section: [, "producer", "cultivator", "micro-1213
1466+cultivator", "product manufacturer", "hybrid retailer" and "retailer" have 1214
1467+the same meanings as provided in section 21a-420; and "hemp" and 1215
1468+"hemp products" have the same meanings as provided in section 22-61l.] 1216
1469+(1) "Cultivator" has the same meaning as provided in section 21a-420, 1217
1470+as amended by this act; 1218
1471+(2) "Dispensary facility" has the same meaning as provided in section 1219 Substitute Bill No. 6700
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1477+
1478+21a-420, as amended by this act; 1220
1479+(3) "Hemp" has the same meaning as provided in section 22-61l; 1221
1480+(4) "Hemp products" has the same meaning as provided in section 22-1222
1481+61l; 1223
1482+(5) "Hybrid retailer" has the same meaning as provided in section 21a-1224
1483+420, as amended by this act; 1225
1484+(6) "Micro-cultivator" has the same meaning as provided in section 1226
1485+21a-420, as amended by this act; 1227
1486+(7) "Producer" has the same meaning as provided in section 21a-420, 1228
1487+as amended by this act; 1229
1488+(8) "Producer hemp product" has the same meaning as provided in 1230
1489+section 22-61l; 1231
1490+(9) "Product manufacturer" has the same meaning as provided in 1232
1491+section 21a-420, as amended by this act; and 1233
1492+(10) "Retailer" has the same meaning as provided in section 21a-420, 1234
1493+as amended by this act. 1235
1494+(b) Any producer, cultivator, micro-cultivator and product 1236
1495+manufacturer may manufacture, market, cultivate or store hemp and 1237
1496+hemp products in accordance with the provisions of this chapter and 1238
1497+any regulations adopted [under] pursuant to said chapter, except that a 1239
1498+producer, cultivator, micro-cultivator and product manufacturer may 1240
1499+obtain hemp and hemp products from a person authorized under the 1241
1500+laws of this state or another state, territory or possession of the United 1242
1501+States or another sovereign entity to possess and sell such hemp and 1243
1502+hemp products. 1244
1503+(c) Hemp or hemp products purchased by a producer, cultivator, 1245
1504+micro-cultivator or product manufacturer from a third party shall be 1246
1505+tracked as a separate batch throughout the manufacturing process in 1247 Substitute Bill No. 6700
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1511+
1512+order to document the disposition of such hemp or hemp products. 1248
1513+Once hemp or hemp products are received by a producer, cultivator, 1249
1514+micro-cultivator or product manufacturer, such hemp or hemp products 1250
1515+shall be deemed cannabis and shall comply with the requirements for 1251
1516+cannabis contained in the applicable provisions of the general statutes 1252
1517+and any regulations adopted [under] pursuant to such provisions. A 1253
1518+producer, cultivator, micro-cultivator and product manufacturer shall 1254
1519+retain a copy of the certificate of analysis for purchased hemp or hemp 1255
1520+products and invoice and transport documents that evidence the 1256
1521+quantity purchased and date received. 1257
1522+(d) No hemp or producer hemp [products shall] product may be 1258
1523+dispensed, sold or distributed within a dispensary facility that is 1259
1524+licensed [under] pursuant to chapter 420f or the business premises of a 1260
1525+retailer or hybrid retailer. [or a retailer.] 1261
1526+This act shall take effect as follows and shall amend the following
1527+sections:
1528+
1529+Section 1 July 1, 2023 21a-420
1530+Sec. 2 July 1, 2023 New section
1531+Sec. 3 July 1, 2023 New section
1532+Sec. 4 July 1, 2023 21a-278b(a)
1533+Sec. 5 July 1, 2023 21a-408
1534+Sec. 6 July 1, 2023 21a-408h
1535+Sec. 7 July 1, 2023 21a-409
1536+Sec. 8 July 1, 2023 21a-420b(d) and (e)
1537+Sec. 9 July 1, 2023 21a-420d(k)
1538+Sec. 10 July 1, 2023 21a-420e
1539+Sec. 11 July 1, 2023 21a-420f(a) and (b)
1540+Sec. 12 July 1, 2023 21a-420j(f)
1541+Sec. 13 July 1, 2023 21a-420m(b) to (i)
1542+Sec. 14 July 1, 2023 21a-420n(b)
1543+Sec. 15 July 1, 2023 21a-420p(c)
1544+Sec. 16 July 1, 2023 21a-420q
1545+Sec. 17 July 1, 2023 21a-420r
1546+Sec. 18 July 1, 2023 21a-420s
1547+Sec. 19 July 1, 2023 21a-420u(b) to (i) Substitute Bill No. 6700
1548+
1549+
1550+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06700-
1551+R01-HB.docx }
1552+43 of 43
1553+
1554+Sec. 20 July 1, 2023 21a-421f
1555+Sec. 21 July 1, 2023 22-61n
1556+
1557+Statement of Legislative Commissioners:
1558+Section 1(1) was rewritten for consistency with standard drafting
1559+conventions and accuracy; in Section 4(a), "420f or" was changed to
1560+"420f, [or]" and "[or] as amended by this act," was changed to "as
1561+amended by this act, or" for consistency with standard drafting
1562+conventions; in Sections 5(3)(A) and (B), "who is" was added for clarity;
1563+in Sections 8(d) and (e), "53-247a and" was changed to "53-247a, [and]"
1564+for consistency with standard drafting conventions; and in Section 9(k),
1565+"section 21a-420j" was changed to "[section] 21a-420j" and "or" was
1566+unbracketed for consistency with standard drafting conventions.
1567+
1568+GL Joint Favorable Subst.
2991569