LCO No. 886 1 of 55 General Assembly Raised Bill No. 5150 February Session, 2024 LCO No. 886 Referred to Committee on GENERAL LAW Introduced by: (GL) AN ACT CONCERNING CANNABIS AND HEMP REGULATION. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subdivision (63) of section 21a-240 of the 2024 supplement 1 to the general statutes is repealed and the following is substituted in lieu 2 thereof (Effective July 1, 2024): 3 (63) "High-THC hemp product" means a manufacturer hemp 4 product, as defined in section 22-61l, that has, or is advertised, labeled 5 or offered for sale as having, total THC that exceeds (A) [for a hemp 6 edible, hemp topical or hemp transdermal patch (i) one milligram on a 7 per-serving basis, or (ii) five milligrams on a per-container basis,] one-8 half milligram on a per-container basis for any manufacturer hemp 9 product, or (B) [for a hemp tincture, including, but not limited to, oil 10 intended for ingestion by swallowing, buccal administration or 11 sublingual absorption (i) one milligram on a per-serving basis, or (ii) 12 twenty-five milligrams on a per-container basis, (C) for a hemp 13 concentrate or extract, including, but not limited to, a vape oil, wax or 14 shatter, twenty-five milligrams on a per-container basis, or (D) for a 15 manufacturer hemp product not described in subparagraph (A), (B) or 16 Raised Bill No. 5150 LCO No. 886 2 of 55 (C) of this subdivision, (i) one milligram on a per-serving basis, (ii) five 17 milligrams on a per-container basis, or (iii)] three-tenths per cent on a 18 dry-weight basis for cannabis flower or cannabis trim. 19 Sec. 2. Section 21a-420 of the 2024 supplement to the general statutes 20 is repealed and the following is substituted in lieu thereof (Effective July 21 1, 2024): 22 As used in RERACA, unless the context otherwise requires: 23 (1) "Responsible and Equitable Regulation of Adult-Use Cannabis 24 Act" or "RERACA" means this section, sections 2-56j, 7-294kk, 7-294ll, 25 12-330ll to 12-330nn, inclusive, 14-227p, 21a-278b, 21a-278c, 21a-279c, 26 21a-279d, 21a-420a to 21a-420j, inclusive, 21a-420l to 21a-421r, inclusive, 27 as amended by this act, 21a-421aa to 21a-421ff, inclusive, 21a-421aaa to 28 21a-421hhh, inclusive, 21a-422 to 21a-422c, inclusive, 21a-422e to 21a-29 422g, inclusive, 21a-422j to 21a-422s, inclusive, 22-61n, as amended by 30 this act, 23-4b, 47a-9a, 53-247a, 53a-213a, 53a-213b, 54-33p, 54-56q, 54-31 56r, 54-125k and 54-142u, sections 23, 60, 63 to 65, inclusive, 124, 144 and 32 165 of public act 21-1 of the June special session, and the amendments 33 in public act 21-1 of the June special session to sections 7-148, 10-221, 12-34 30a, 12-35b, 12-412, 12-650, 12-704d, 14-44k, 14-111e, 14-227a to 14-227c, 35 inclusive, 14-227j, 15-140q, 15-140r, 18-100h, 19a-342, 19a-342a, 21a-267, 36 21a-277, 21a-279, 21a-279a, 21a-408 to 21a-408f, inclusive, 21a-408h to 37 21a-408p, inclusive, 21a-408r to 21a-408v, inclusive, 30-89a, 31-40q, 32-38 39, 46b-120, 51-164n, 53-394, 53a-39c, 54-1m, 54-33g, 54-41b, 54-56e, 54-39 56g, 54-56i, 54-56k, 54-56n, 54-63d, 54-66a and 54-142e, [and] section 20 40 of public act 23-79 and sections 3 and 4 of this act; 41 (2) "Backer" means any individual with a direct or indirect financial 42 interest in a cannabis establishment. "Backer" does not include an 43 individual with an investment interest in a cannabis establishment if (A) 44 the interest held by such individual and such individual's spouse, 45 parent or child, in the aggregate, does not exceed five per cent of the 46 total ownership or interest rights in such cannabis establishment, and 47 (B) such individual does not participate directly or indirectly in the 48 Raised Bill No. 5150 LCO No. 886 3 of 55 control, management or operation of the cannabis establishment; 49 (3) "Cannabis" means marijuana, as defined in section 21a-240, as 50 amended by this act; 51 (4) "Cannabis establishment" means a producer, dispensary facility, 52 cultivator, micro-cultivator, retailer, hybrid retailer, food and beverage 53 manufacturer, product manufacturer, product packager, delivery 54 service or transporter; 55 (5) "Cannabis flower" means the flower, including abnormal and 56 immature flowers, of a plant of the genus cannabis that has been 57 harvested, dried, cured, chopped or ground, and prior to any processing 58 whereby the flower material is transformed into a cannabis product. 59 "Cannabis flower" does not include (A) the leaves or stem of such plant, 60 or (B) hemp, as defined in section 22-61l; 61 (6) "Cannabis testing laboratory" means a laboratory that (A) is 62 located in this state, (B) is licensed by the department to analyze 63 cannabis, and (C) meets the licensure requirements established in 64 section 21a-408r and the regulations adopted pursuant to subsection (d) 65 of section 21a-408r; 66 (7) "Cannabis testing laboratory employee" means an individual who 67 is (A) employed at a cannabis testing laboratory, and (B) registered 68 pursuant to section 21a-408r and the regulations adopted pursuant to 69 subsection (d) of section 21a-408r; 70 (8) "Cannabis trim" means all parts, including abnormal or immature 71 parts, of a plant of the genus cannabis, other than cannabis flower, that 72 have been harvested, dried and cured, and prior to any processing, 73 excluding chopping or grinding, whereby the plant material is 74 transformed into a cannabis product. "Cannabis trim" does not include 75 hemp, as defined in section 22-61l; 76 (9) "Cannabis product" means cannabis, intended for use or 77 consumption, that is in the form of (A) a cannabis concentrate, or (B) a 78 Raised Bill No. 5150 LCO No. 886 4 of 55 product that contains cannabis and at least one other cannabis or 79 noncannabis ingredient or component, excluding cannabis flower; 80 (10) "Cannabis concentrate" means any form of concentration, 81 including, but not limited to, extracts, oils, tinctures, shatter and waxes, 82 that is extracted from cannabis; 83 (11) "Cannabis-type substances" have the same mean ing as 84 "marijuana", as defined in section 21a-240, as amended by this act; 85 (12) "Commissioner" means the Commissioner of Consumer 86 Protection and includes any designee of the commissioner; 87 (13) "Consumer" means an individual who is twenty-one years of age 88 or older; 89 (14) "Control" means the power to direct, or cause the direction of, the 90 management and policies of a cannabis establishment, regardless of 91 whether such power is possessed directly or indirectly; 92 (15) "Cultivation" has the same meaning as provided in section 21a-93 408; 94 (16) "Cultivation lot" means one or more lots, as defined in section 22-95 61l, associated with a hemp producer's license issued pursuant to 96 section 22-61l; 97 [(16)] (17) "Cultivator" means a person that is licensed to engage in 98 the cultivation, growing and propagation of the cannabis plant at an 99 establishment with not less than fifteen thousand square feet of grow 100 space; 101 [(17)] (18) "Delivery service" means a person that is licensed to deliver 102 cannabis from (A) micro-cultivators, retailers and hybrid retailers to 103 consumers and research program subjects, and (B) hybrid retailers and 104 dispensary facilities to qualifying patients, caregivers and research 105 program subjects, as defined in section 21a-408, or to hospices or other 106 inpatient care facilities licensed by the Department of Public Health 107 Raised Bill No. 5150 LCO No. 886 5 of 55 pursuant to chapter 368v that have a protocol for the handling and 108 distribution of cannabis that has been approved by the department, or a 109 combination thereof; 110 [(18)] (19) "Department" means the Department of Consumer 111 Protection; 112 [(19)] (20) "Dispensary facility" means a place of business where 113 cannabis may be dispensed, sold or distributed in accordance with 114 chapter 420f and any regulations adopted pursuant to said chapter, to 115 qualifying patients and caregivers, and to which the department has 116 issued a dispensary facility license pursuant to chapter 420f and any 117 regulations adopted pursuant to said chapter; 118 [(20)] (21) "Disproportionately impacted area" means (A) for the 119 period beginning July 1, 2021, and ending July 31, 2023, a United States 120 census tract in the state that has, as determined by the Social Equity 121 Council under subdivision (1) of subsection (i) of section 21a-420d, as 122 amended by this act, (i) a historical conviction rate for drug-related 123 offenses greater than one-tenth, or (ii) an unemployment rate greater 124 than ten per cent, [and] (B) [on and after] for the period beginning 125 August 1, 2023, and ending June 30, 2024, a United States census tract in 126 this state that has been identified by the Social Equity Council pursuant 127 to subdivision (2) of subsection (i) of section 21a-420d, as amended by 128 this act, and (C) on and after July 1, 2024, (i) a United States census tract 129 in this state that has been identified by the Social Equity Council 130 pursuant to subdivision (2) of subsection (i) of section 21a-420d, as 131 amended by this act, and (ii) a reservation, as defined in section 47-63, 132 as set forth in subdivision (3) of subsection (i) of section 21a-420d, as 133 amended by this act; 134 [(21)] (22) "Disqualifying conviction" means a conviction within the 135 last ten years which has not been the subject of an absolute pardon 136 under the provisions of section 54-130a, or an equivalent pardon process 137 under the laws of another state or the federal government, for an offense 138 under (A) section 53a-276, 53a-277 or 53a-278, [;] (B) section 53a-291, 53a-139 Raised Bill No. 5150 LCO No. 886 6 of 55 292 or 53a-293, [;] (C) section 53a-215, [;] (D) section 53a-138 or 53a-139, 140 [;] (E) section 53a-142a, [;] (F) sections 53a-147 to 53a-162, inclusive, [;] 141 (G) sections 53a-125c to 53a-125f, inclusive, [;] (H) section 53a-129b, 53a-142 129c or 53a-129d, [;] (I) subsection (b) of section 12-737, [;] (J) section 53a-143 48 or 53a-49, if the offense which is attempted or is an object of the 144 conspiracy is an offense under the statutes listed in subparagraphs (A) 145 to (I), inclusive, of this subdivision, [;] or (K) the law of any other state 146 or of the federal government, if the offense on which such conviction is 147 based is defined by elements that substantially include the elements of 148 an offense under the statutes listed in subparagraphs (A) to (J), inclusive, 149 of this subdivision; 150 [(22)] (23) "Dispensary technician" means an individual who has had 151 an active pharmacy technician or dispensary technician registration in 152 this state within the past five years, is affiliated with a dispensary facility 153 or hybrid retailer and is registered with the department in accordance 154 with chapter 420f and any regulations adopted pursuant to said chapter; 155 [(23)] (24) "Edible cannabis product" means a cannabis product 156 intended for humans to eat or drink; 157 [(24)] (25) "Employee" means any person who is not a backer, but is a 158 member of the board of a company with an ownership interest in a 159 cannabis establishment, and any person employed by a cannabis 160 establishment or who otherwise has access to such establishment or the 161 vehicles used to transport cannabis, including, but not limited to, an 162 independent contractor who has routine access to the premises of such 163 establishment or to the cannabis handled by such establishment; 164 [(25)] (26) "Equity" and "equitable" means efforts, regulations, 165 policies, programs, standards, processes and any other functions of 166 government or principles of law and governance intended to [:] (A) 167 [Identify] identify and remedy past and present patterns of 168 discrimination and disparities of race, ethnicity, gender and sexual 169 orientation, [;] (B) ensure that such patterns of discrimination and 170 disparities, whether intentional or unintentional, are neither reinforced 171 Raised Bill No. 5150 LCO No. 886 7 of 55 nor perpetuated, [;] and (C) prevent the emergence and persistence of 172 foreseeable future patterns of discrimination or disparities of race, 173 ethnicity, gender and sexual orientation; 174 [(26)] (27) "Equity joint venture" means a business entity that is 175 controlled, and at least fifty per cent owned, by an individual or 176 individuals, or such applicant is an individual, who meets the criteria of 177 subparagraphs (A) and (B) of subdivision [(50)] (52) of this section; 178 [(27)] (28) "Extract" means the preparation, compounding, conversion 179 or processing of cannabis, either directly or indirectly by extraction or 180 independently by means of chemical synthesis, or by a combination of 181 extraction and chemical synthesis to produce a cannabis concentrate; 182 [(28)] (29) "Financial interest" means any right to, ownership, an 183 investment or a compensation arrangement with another person, 184 directly, through business, investment or family. "Financial interest" 185 does not include ownership of investment securities in a publicly-held 186 corporation that is traded on a national exchange or over-the-counter 187 market, provided the investment securities held by such person and 188 such person's spouse, parent or child, in the aggregate, do not exceed 189 one-half of one per cent of the total number of shares issued by the 190 corporation; 191 [(29)] (30) "Food and beverage manufacturer" means a person that is 192 licensed to own and operate a place of business that acquires cannabis 193 and creates food and beverages; 194 [(30)] (31) "Grow space" means the portion of a premises owned and 195 controlled by a producer, cultivator or micro-cultivator that is utilized 196 for the cultivation, growing or propagation of the cannabis plant, and 197 contains cannabis plants in an active stage of growth, measured starting 198 from the outermost wall of the room containing cannabis plants and 199 continuing around the outside of the room. "Grow space" does not 200 include space used to cure, process, store harvested cannabis or 201 manufacture cannabis once the cannabis has been harvested; 202 Raised Bill No. 5150 LCO No. 886 8 of 55 (32) "Hemp producer" means producer, as defined in section 22-61l; 203 [(31)] (33) "Historical conviction count for drug-related offenses" 204 means, for a given area, the number of convictions of residents of such 205 area (A) for violations of sections 21a-267, 21a-277, 21a-278, 21a-279 and 206 21a-279a, and (B) who were arrested for such violations between 207 January 1, 1982, and December 31, 2020, inclusive, where such arrest 208 was recorded in databases maintained by the Department of Emergency 209 Services and Public Protection; 210 [(32)] (34) "Historical conviction rate for drug-related offenses" 211 means, for a given area, the historical conviction count for drug-related 212 offenses divided by the population of such area, as determined by the 213 five-year estimates of the most recent American Community Survey 214 conducted by the United States Census Bureau; 215 [(33)] (35) "Hybrid retailer" means a person that is licensed to 216 purchase cannabis and sell cannabis and medical marijuana products; 217 [(34)] (36) "Key employee" means an employee with the following 218 management position or an equivalent title within a cannabis 219 establishment: (A) President or chief officer, who is the top ranking 220 individual at the cannabis establishment and is responsible for all staff 221 and overall direction of business operations; (B) financial manager, who 222 is the individual who reports to the president or chief officer and who is 223 responsible for oversight of the financial operations of the cannabis 224 establishment, which financial operations include one or more of the 225 following: (i) Revenue and expense management; (ii) distributions; (iii) 226 tax compliance; (iv) budget development; and (v) budget management 227 and implementation; or (C) compliance manager, who is the individual 228 who reports to the president or chief officer and who is generally 229 responsible for ensuring the cannabis establishment complies with all 230 laws, regulations and requirements related to the operation of the 231 cannabis establishment; 232 [(35)] (37) "Labor peace agreement" means an agreement between a 233 cannabis establishment and a bona fide labor organization under section 234 Raised Bill No. 5150 LCO No. 886 9 of 55 21a-421d pursuant to which the owners and management of the 235 cannabis establishment agree not to lock out employees and that 236 prohibits the bona fide labor organization from engaging in picketing, 237 work stoppages or boycotts against the cannabis establishment; 238 [(36)] (38) "Manufacture" means to add or incorporate cannabis into 239 other products or ingredients or create a cannabis product; 240 [(37)] (39) "Medical marijuana product" means cannabis that may be 241 exclusively sold to qualifying patients and caregivers by dispensary 242 facilities and hybrid retailers and which are designated by the 243 commissioner as reserved for sale to qualifying patients and caregivers 244 and published on the department's Internet web site; 245 [(38)] (40) "Micro-cultivator" means a person licensed to engage in the 246 cultivation, growing and propagation of the cannabis plant at an 247 establishment containing not less than two thousand square feet and not 248 more than ten thousand square feet of grow space, prior to any 249 expansion authorized by the commissioner; 250 [(39)] (41) "Municipality" means any town, city or borough, 251 consolidated town and city or consolidated town and borough; 252 [(40)] (42) "Paraphernalia" means drug paraphernalia, as defined in 253 section 21a-240, as amended by this act; 254 [(41)] (43) "Person" means an individual, partnership, limited liability 255 company, society, association, joint stock company, corporation, estate, 256 receiver, trustee, assignee, referee or any other legal entity and any other 257 person acting in a fiduciary or representative capacity, whether 258 appointed by a court or otherwise, and any combination thereof; 259 [(42)] (44) "Producer" means a person that is licensed as a producer 260 pursuant to section 21a-408i and any regulations adopted pursuant to 261 said section; 262 [(43)] (45) "Product manufacturer" means a person that is licensed to 263 obtain cannabis, extract and manufacture products; 264 Raised Bill No. 5150 LCO No. 886 10 of 55 [(44)] (46) "Product packager" means a person that is licensed to 265 package and label cannabis; 266 [(45)] (47) "Qualifying patient" has the same meaning as provided in 267 section 21a-408; 268 [(46)] (48) "Research program" has the same meaning as provided in 269 section 21a-408; 270 [(47)] (49) "Retailer" means a person, excluding a dispensary facility 271 and hybrid retailer, that is licensed to purchase cannabis from 272 producers, cultivators, micro-cultivators, product manufacturers and 273 food and beverage manufacturers and to sell cannabis to consumers and 274 research programs; 275 [(48)] (50) "Sale" or "sell" has the same meaning as provided in section 276 21a-240, as amended by this act; 277 [(49)] (51) "Social Equity Council" or "council" means the council 278 established under section 21a-420d, as amended by this act; 279 [(50)] (52) "Social equity applicant" means a person that has applied 280 for a license for a cannabis establishment, where such applicant is 281 controlled, and at least sixty-five per cent owned, by an individual or 282 individuals, or such applicant is an individual, who: 283 (A) Had an average household income of less than three hundred per 284 cent of the state median household income over the three tax years 285 immediately preceding such individual's application; and 286 (B) (i) Was a resident of a disproportionately impacted area for not 287 less than five of the ten years immediately preceding the date of such 288 application; or 289 (ii) Was a resident of a disproportionately impacted area for not less 290 than nine years prior to attaining the age of eighteen; 291 (53) "Telehealth" has the same meaning as provided in section 19a-292 Raised Bill No. 5150 LCO No. 886 11 of 55 906; 293 [(51)] (54) "THC" has the same meaning as provided in section 21a-294 240, as amended by this act; 295 [(52)] (55) "Third-party lottery operator" means a person, or a 296 constituent unit of the state system of higher education, that conducts 297 lotteries pursuant to section 21a-420g, as amended by this act, identifies 298 the cannabis establishment license applications for consideration 299 without performing any review of the applications that are identified 300 for consideration, and that has no direct or indirect oversight of or 301 investment in a cannabis establishment or a cannabis establishment 302 applicant; 303 [(53)] (56) "Transfer" means to transfer, change, give or otherwise 304 dispose of control over or interest in; 305 [(54)] (57) "Transport" means to physically move from one place to 306 another; 307 [(55)] (58) "Transporter" means a person licensed to transport 308 cannabis between cannabis establishments, cannabis testing 309 laboratories and research programs; and 310 [(56)] (59) "Unemployment rate" means, in a given area, the number 311 of people sixteen years of age or older who are in the civilian labor force 312 and unemployed divided by the number of people sixteen years of age 313 or older who are in the civilian labor force. 314 Sec. 3. (NEW) (Effective July 1, 2024) (a) During the period beginning 315 July 1, 2024, and ending December 31, 2025, the department shall issue 316 a cultivator license to a social equity applicant: 317 (1) If prior to July 1, 2024, the social equity applicant submitted to the 318 department a completed cultivator license application pursuant to 319 subsection (a) of section 21a-420o of the general statutes, as amended by 320 this act, and: 321 Raised Bill No. 5150 LCO No. 886 12 of 55 (A) The Social Equity Council verified, pursuant to subdivision (1) of 322 subsection (a) of section 21a-420o of the general statutes, as amended by 323 this act, that the applicant met the criteria established for a social equity 324 applicant; or 325 (B) The department issued a provisional cultivator license, but not a 326 final cultivator license, to the social equity applicant pursuant to section 327 21a-420o of the general statutes, as amended by this act; 328 (2) If during the period beginning July 1, 2024, and ending March 31, 329 2025, the social equity applicant submits to the department, in a form 330 and manner prescribed by the commissioner: 331 (A) A completed application for a cultivator license; 332 (B) A copy of an agreement, between the social equity applicant and 333 a hemp producer that has been continually licensed under section 22-334 61l of the general statutes since January 1, 2023, which provides: 335 (i) For the use of the hemp producer's cultivation lot, which may be 336 located outside a disproportionately impacted area; and 337 (ii) That if the department issues a provisional cultivator license to 338 the social equity applicant pursuant to this section: 339 (I) Such provisional cultivator license shall immediately be deemed 340 to have automatically replaced both the provisional cultivator license 341 application the social equity applicant submitted and any provisional 342 cultivator license the department issued to the social equity applicant 343 pursuant to subsection (a) of section 21a-420o of the general statutes, as 344 amended by this act, and such previously submitted provisional 345 cultivator license application and previously issued provisional 346 cultivator license shall immediately be deemed to have been 347 automatically withdrawn or surrendered, as applicable, as set forth in 348 subparagraph (C)(i) of this subdivision; and 349 (II) The hemp producer shall immediately be deemed to have 350 automatically surrendered such hemp producer's license under section 351 Raised Bill No. 5150 LCO No. 886 13 of 55 22-61l of the general statutes, as set forth in subparagraph (D) of this 352 subdivision; 353 (C) An acknowledgment by the social equity applicant that, if the 354 department issues a provisional cultivator license to the social equity 355 applicant pursuant to this section: 356 (i) Such provisional cultivator license shall immediately be deemed 357 to have automatically replaced both the provisional cultivator license 358 application the social equity applicant submitted and any provisional 359 cultivator license the department issued to the social equity applicant 360 pursuant to subsection (a) of section 21a-420o of the general statutes, as 361 amended by this act, and such previously submitted provisional 362 cultivator license application and previously issued cultivator license 363 shall immediately be deemed to have been automatically withdrawn or 364 surrendered, as applicable; and 365 (ii) The social equity applicant shall no longer be eligible to create an 366 equity joint venture, as prohibited under subsection (e) of this section; 367 (D) An acknowledgment by the hemp producer which is a party to 368 the agreement described in subparagraph (B) of this subdivision that, if 369 the department issues a provisional cultivator license to the social equity 370 applicant pursuant to this section, the hemp producer shall immediately 371 be deemed to have automatically surrendered such hemp producer's 372 license under section 22-61l of the general statutes; 373 (E) Evidence that is sufficient for the department to verify that the 374 hemp producer which is a party to the agreement described in 375 subparagraph (B) of this subdivision has been continually licensed 376 under section 22-61l of the general statutes since January 1, 2023; 377 (F) A written statement by the social equity applicant disclosing 378 whether any change occurred in the ownership or control of the social 379 equity applicant after the Social Equity Council verified that the social 380 equity applicant met the criteria for a social equity applicant pursuant 381 to subdivision (1) of subsection (a) of section 21a-420o of the general 382 Raised Bill No. 5150 LCO No. 886 14 of 55 statutes, as amended by this act; and 383 (G) The application fee required under subsection (b) of this section; 384 (3) If any change described in subparagraph (F) of subdivision (2) of 385 this subsection has occurred which is: 386 (A) Allowed under (i) section 21a-420g of the general statutes, as 387 amended by this act, or (ii) any regulation adopted, or policy or 388 procedure issued, pursuant to section 21a-420g of the general statutes, 389 as amended by this act, or 21a-420h of the general statutes; and 390 (B) Allowed under subdivision (1) of subsection (c) of this section, 391 whereby (i) the Social Equity Council has determined that the social 392 equity applicant continues to meet the criteria for a social equity 393 applicant, and (ii) the department has received a written notice from the 394 Social Equity Council disclosing that the Social Equity Council has 395 determined that the social equity applicant continues to meet the criteria 396 for a social equity applicant; 397 (4) If pursuant to subdivision (2) of subsection (c) of this section, (A) 398 the Social Equity Council has reviewed the agreement described in 399 subparagraph (B) of subdivision (2) of this subsection, and (B) the 400 department has received a written notice from the Social Equity Council 401 disclosing that the Social Equity Council has determined that the social 402 equity applicant continues to meet the criteria for a social equity 403 applicant; and 404 (5) If all hemp, as defined in section 22-61l of the general statutes, has 405 been harvested from the cultivation lot described in subparagraph (B)(i) 406 of subdivision (2) of this subsection. 407 (b) (1) A social equity applicant shall submit to the department a 408 three-million-dollar application fee unless the social equity applicant 409 has (A) received a provisional cultivator license under subsection (a) of 410 section 21a-420o of the general statutes, as amended by this act, and (B) 411 paid the fee required under subdivision (3) of subsection (a) of section 412 Raised Bill No. 5150 LCO No. 886 15 of 55 21a-420o of the general statutes, as amended by this act. 413 (2) The fee to renew a final cultivator license issued pursuant to this 414 section shall be the same as the fee to renew a final cultivator license as 415 set forth in section 21a-420e of the general statutes, as amended by this 416 act. 417 (3) All fees collected by the department under this section shall be 418 deposited in the Cannabis Social Equity and Innovation Fund 419 established in subsection (c) of section 21a-420f of the general statutes. 420 (c) (1) If any change described in subparagraph (F) of subdivision (2) 421 of subsection (a) of this section has occurred, the Social Equity Council 422 shall (A) determine whether the social equity applicant continues to 423 meet the criteria for a social equity applicant, and (B) submit to the 424 department, in a form and manner prescribed by the commissioner, a 425 written notice disclosing such determination. 426 (2) The Social Equity Council shall (A) review the agreement 427 described in subparagraph (B) of subdivision (2) of subsection (a) of this 428 section, and (B) submit to the department, in a form and manner 429 prescribed by the commissioner, a written notice disclosing whether the 430 social equity applicant continues to meet the criteria for a social equity 431 applicant. 432 (d) All harvested hemp described in subdivision (5) of subsection (a) 433 of this section shall continue to be deemed hemp until the department 434 issues a final cultivator license to the social equity applicant pursuant to 435 this section. After the department issues a final cultivator license to the 436 social equity applicant pursuant to this section, such harvested hemp 437 shall be deemed to be cannabis and shall be subject to all cannabis 438 cultivation, testing, labeling, tracking, reporting and manufacturing 439 provisions of RERACA as such provisions apply to cultivators. For the 440 purposes of this subsection, "hemp" has the same meaning as provided 441 in section 22-61l of the general statutes. 442 (e) No social equity applicant that receives a cultivator license 443 Raised Bill No. 5150 LCO No. 886 16 of 55 pursuant to this section shall be eligible to create an equity joint venture. 444 (f) Each application submitted to the department pursuant to 445 subsection (a) of this section, and all information included in, or 446 submitted with, any application submitted pursuant to said subsection, 447 shall be subject to the provisions of subsection (g) of section 21a-420e of 448 the general statutes. 449 (g) Notwithstanding any other provision of RERACA, and except as 450 otherwise provided in subsections (a) to (f), inclusive, of this section: 451 (1) Each application submitted pursuant to subsection (a) of this 452 section shall be processed as any other cultivator application that has 453 been selected through the lottery; and 454 (2) Each social equity applicant, application submitted pursuant to 455 subsection (a) of this section and cultivator license issued pursuant to 456 this section shall be subject to subsections (e) to (l), inclusive, of section 457 21a-420g of the general statutes, as amended by this act. 458 Sec. 4. (NEW) (Effective July 1, 2024) (a) (1) During the period 459 beginning July 1, 2024, and ending December 31, 2024, a social equity 460 applicant that has submitted an application to the department for a 461 cultivator license pursuant to subsection (a) of section 21a-420o of the 462 general statutes, as amended by this act, may withdraw such application 463 and apply for a micro-cultivator license pursuant to this section if: 464 (A) The Social Equity Council has verified that the applicant meets 465 the criteria for a social equity applicant pursuant to subdivision (1) of 466 subsection (a) of section 21a-420o of the general statutes, as amended by 467 this act; 468 (B) The social equity applicant is eligible to receive a provisional 469 cultivator license pursuant to subsection (a) of section 21a-420o of the 470 general statutes, as amended by this act; 471 (C) The department has not already issued a provisional cultivator 472 license to the social equity applicant pursuant to subsection (a) of section 473 Raised Bill No. 5150 LCO No. 886 17 of 55 21a-420o of the general statutes, as amended by this act; and 474 (D) The social equity applicant submits to the department, in a form 475 and manner prescribed by the commissioner, a written statement by the 476 social equity applicant: 477 (i) Withdrawing the social equity applicant's application under 478 subsection (a) of section 21a-420o of the general statutes, as amended by 479 this act; and 480 (ii) Acknowledging that if the social equity applicant withdraws the 481 application submitted under subsection (a) of section 21a-420o of the 482 general statutes, as amended by this act, the social equity applicant shall 483 no longer be eligible to create an equity joint venture, as prohibited 484 under subsection (e) of this section. 485 (2) No social equity applicant that withdraws an application in the 486 manner set forth in subdivision (1) of this subsection shall be eligible to 487 receive a refund for any fee paid in connection with such withdrawn 488 application. 489 (b) During the period beginning July 1, 2024, and ending December 490 31, 2025, the department shall issue a micro-cultivator license to a social 491 equity applicant pursuant to this section: 492 (1) If the social equity applicant meets the eligibility criteria 493 established in subdivision (1) of subsection (a) of this section; 494 (2) If during the period beginning July 1, 2024, and ending December 495 31, 2024, the social equity applicant submits to the department, in a form 496 and manner prescribed by the commissioner: 497 (A) A completed micro-cultivator license application; 498 (B) A written statement by the social equity applicant disclosing 499 whether any change occurred in the ownership or control of the social 500 equity applicant after the Social Equity Council verified that the 501 applicant met the criteria for a social equity applicant pursuant to 502 Raised Bill No. 5150 LCO No. 886 18 of 55 subdivision (1) of subsection (a) of section 21a-420o of the general 503 statutes, as amended by this act; and 504 (C) The application and conversion fees required under subdivision 505 (1) of subsection (c) of this section; and 506 (3) If any change described in subparagraph (B) of subdivision (2) of 507 this subsection has occurred: 508 (A) Such change in ownership or control is allowed under (i) section 509 21a-420g of the general statutes, as amended by this act, or (ii) any 510 regulation adopted, or policy or procedure issued, pursuant to section 511 21a-420g of the general statutes, as amended by this act, or 21a-420h of 512 the general statutes; and 513 (B) Pursuant to subsection (d) of this section, (i) the Social Equity 514 Council has determined that the social equity applicant continues to 515 meet the criteria for a social equity applicant, and (ii) the department 516 has received a written notice from the Social Equity Council disclosing 517 that the Social Equity Council has determined that the social equity 518 applicant continues to meet the criteria for a social equity applicant. 519 (c) (1) A social equity applicant that submits a micro-cultivator license 520 application pursuant to subsection (b) of this section shall submit to the 521 department (A) an application fee in the amount of five hundred 522 thousand dollars, and (B) a conversion fee in the amount of five hundred 523 thousand dollars. 524 (2) The fee to renew a final micro-cultivator license issued pursuant 525 to this section shall be the same as the fee to renew a final micro-526 cultivator license as set forth in section 21a-420e of the general statutes, 527 as amended by this act. 528 (3) All fees collected by the department under this section shall be 529 deposited in the Cannabis Social Equity and Innovation Fund 530 established in subsection (c) of section 21a-420f of the general statutes. 531 (d) If any change described in subparagraph (B) of subdivision (2) of 532 Raised Bill No. 5150 LCO No. 886 19 of 55 subsection (b) of this section has occurred, the Social Equity Council 533 shall (1) determine whether the social equity applicant continues to meet 534 the criteria for a social equity applicant, and (2) submit to the 535 department, in a form and manner prescribed by the commissioner, a 536 written notice disclosing such determination. 537 (e) A social equity applicant that withdraws an application in the 538 manner set forth in subdivision (1) of subsection (a) of this section shall 539 no longer be eligible to create an equity joint venture. 540 (f) Each application submitted to the department pursuant to 541 subsection (b) of this section, and all information included in, or 542 submitted with, any application submitted pursuant to said subsection, 543 shall be subject to the provisions of subsection (g) of section 21a-420e of 544 the general statutes. 545 (g) Notwithstanding any other provision of RERACA, and except as 546 otherwise provided in subsections (a) to (f), inclusive, of this section: 547 (1) Each application submitted pursuant to subsection (b) of this 548 section shall be processed as any other micro-cultivator application that 549 has been selected through the lottery; and 550 (2) Each social equity applicant, application submitted pursuant to 551 subsection (b) of this section and micro-cultivator license issued 552 pursuant to this section shall be subject to subsections (e) to (l), inclusive, 553 of section 21a-420g of the general statutes, as amended by this act. 554 Sec. 5. Subsections (i) to (k), inclusive, of section 21a-420d of the 2024 555 supplement to the general statutes are repealed and the following is 556 substituted in lieu thereof (Effective July 1, 2024): 557 (i) (1) Not later than August 1, 2021, and annually thereafter until July 558 31, 2023, the council shall use the most recent five-year United States 559 Census Bureau American Community Survey estimates or any 560 successor data to determine one or more United States census tracts in 561 the state that are a disproportionately impacted area and shall publish a 562 Raised Bill No. 5150 LCO No. 886 20 of 55 list of such tracts on the council's Internet web site. 563 (2) Not later than August 1, 2023, the council shall use poverty rate 564 data from the most recent five-year United States Census Bureau 565 American Community Survey estimates, population data from the most 566 recent decennial census and conviction information from databases 567 managed by the Department of Emergency Services and Public 568 Protection to identify all United States census tracts in the state that are 569 disproportionately impacted areas and shall publish a list of such tracts 570 on the council's Internet web site. In identifying which census tracts in 571 this state are disproportionately impacted areas and preparing such list, 572 the council shall: 573 (A) Not deem any census tract with a poverty rate that is less than the 574 state-wide poverty rate to be a disproportionately impacted area; 575 (B) After eliminating the census tracts described in subparagraph (A) 576 of this subdivision, rank the remaining census tracts in order from the 577 census tract with the greatest historical conviction rate for drug-related 578 offenses to the census tract with the lowest historical conviction rate for 579 drug-related offenses; and 580 (C) Include census tracts in the order of rank described in 581 subparagraph (B) of this subdivision until including the next census 582 tract would cause the total population of all included census tracts to 583 exceed twenty-five per cent of the state's population. 584 (3) On and after July 1, 2024, any reservation, as defined in section 47-585 63, of the Schaghticoke, Paucatuck Eastern Pequot or Golden Hill 586 Paugussett indigenous tribe recognized by this state under subsection 587 (b) of section 47-59a shall be deemed to be a disproportionately 588 impacted area, provided such reservation includes at least ten acres of 589 contiguous land and such land comprised part of such reservation on 590 July 1, 2024. 591 (j) After developing criteria for workforce development plans as 592 described in subdivision (4) of subsection (h) of this section, the council 593 Raised Bill No. 5150 LCO No. 886 21 of 55 shall review and approve or deny in writing any such plan submitted 594 by a producer under section 21a-420l or a hybrid-retailer under section 595 21a-420u, as amended by this act. 596 (k) The council shall develop criteria for evaluating the ownership 597 and control of any equity joint venture created under section 21a-420m, 598 as amended by this act, 21a-420u, as amended by this act, or 21a-420j 599 and shall review and approve or deny in writing such equity joint 600 venture prior to such equity joint venture being licensed under section 601 21a-420m, as amended by this act, 21a-420u, as amended by this act, or 602 21a-420j. After developing criteria for social equity plans as described in 603 subdivision (5) of subsection (h) of this section, the council shall review 604 and approve or deny in writing any such plan submitted by a cannabis 605 establishment as part of its final license application. The council shall 606 not approve any equity joint venture applicant which shares with an 607 equity joint venture any individual owner who meets the criteria 608 established in subparagraphs (A) and (B) of subdivision [(50)] (52) of 609 section 21a-420, as amended by this act, other than an individual owner 610 in their capacity as a backer licensed under section 21a-420o, as 611 amended by this act. 612 Sec. 6. Subsection (c) of section 21a-420e of the 2024 supplement to 613 the general statutes is repealed and the following is substituted in lieu 614 thereof (Effective July 1, 2024): 615 (c) Except as provided in subsection (d) of this section, the following 616 fees shall be paid by each applicant: 617 (1) For a retailer license, the fee to enter the lottery shall be five 618 hundred dollars, the fee to receive a provisional license shall be five 619 thousand dollars and the fee to receive a final license or a renewal of a 620 final license shall be twenty-five thousand dollars. 621 (2) For a hybrid retailer license, the fee to enter the lottery shall be five 622 hundred dollars, the fee to receive a provisional license shall be five 623 thousand dollars and the fee to receive a final license or a renewal of a 624 final license shall be twenty-five thousand dollars. 625 Raised Bill No. 5150 LCO No. 886 22 of 55 (3) For a cultivator license, the fee to enter the lottery shall be one 626 thousand dollars, the fee to receive a provisional license shall be twenty-627 five thousand dollars and the fee to receive a final license or a renewal 628 of a final license shall be seventy-five thousand dollars. 629 (4) For a micro-cultivator license, the fee to enter the lottery shall be 630 two hundred fifty dollars, the fee to receive a provisional license shall 631 be five hundred dollars and the fee to receive a final license or a renewal 632 of a final license shall be one thousand dollars. 633 (5) (A) For a product manufacturer license, the fee to enter the lottery 634 shall be seven hundred fifty dollars, the fee to receive a provisional 635 license shall be five thousand dollars and the fee to receive a final license 636 or a renewal of a final license shall be twenty-five thousand dollars. 637 (B) For a product manufacturer seeking authorization to expand the 638 product manufacturer's authorized activities to include the authorized 639 activities of a food and beverage manufacturer, the application fee for 640 such expanded authorization shall be five thousand dollars and the fee 641 to renew such expanded authorization shall be five thousand dollars. 642 The fees due under this subparagraph shall be in addition to the fees 643 due under subparagraph (A) of this subdivision. 644 (6) (A) For a food and beverage manufacturer license, the fee to enter 645 the lottery shall be two hundred fifty dollars, the fee to receive a 646 provisional license shall be one thousand dollars and the fee to receive 647 a final license or a renewal of a final license shall be five thousand 648 dollars. 649 (B) For a food and beverage manufacturer seeking authorization to 650 expand the food and beverage manufacturer's authorized activities to 651 include the authorized activities of a product manufacturer, the 652 application fee for such expanded authorization shall be twenty-five 653 thousand dollars and the fee to renew such expanded authorization 654 shall be twenty-five thousand dollars. The fees due under this 655 subparagraph shall be in addition to the fees due under subparagraph 656 (A) of this subdivision. 657 Raised Bill No. 5150 LCO No. 886 23 of 55 (7) (A) For a product packager license, the fee to enter the lottery shall 658 be five hundred dollars, the fee to receive a provisional license shall be 659 five thousand dollars and the fee to receive a final license or a renewal 660 of a final license shall be twenty-five thousand dollars. 661 (B) For a product packager seeking authorization to expand the 662 product packager's authorized activities to include the authorized 663 activities of a product manufacturer, the application fee for such 664 expanded authorization shall be thirty thousand dollars and the fee to 665 renew such expanded authorization shall be thirty thousand dollars. 666 The fees due under this subparagraph shall be in lieu of the fees due 667 under subparagraph (A) of this subdivision. 668 (8) For a delivery service or transporter license, the fee to enter the 669 lottery shall be two hundred fifty dollars, the fee to receive a provisional 670 license shall be one thousand dollars and the fee to receive a final license 671 or a renewal of a final license shall be five thousand dollars. 672 (9) For an initial or renewal of a backer license, the fee shall be one 673 hundred dollars. 674 (10) For an initial or renewal of a key employee license, the fee shall 675 be one hundred dollars. 676 (11) For an initial or renewal of a registration of an employee who is 677 not a key employee, the fee shall be fifty dollars. 678 (12) The license conversion fee for a dispensary facility to become a 679 hybrid retailer shall be one million dollars, except as provided in section 680 21a-420u, as amended by this act. 681 (13) The license conversion fee for a producer to engage in the adult 682 use cannabis market shall be three million dollars, except as provided in 683 section 21a-420l. 684 (14) For a dispensary facility license, the fee to enter the lottery shall 685 be five hundred dollars, the fee to receive a provisional license shall be 686 five thousand dollars and the fee to receive a final license or a renewal 687 Raised Bill No. 5150 LCO No. 886 24 of 55 of a final license shall be five thousand dollars. 688 (15) For a producer license, the fee to enter the lottery shall be one 689 thousand dollars, the fee to receive a provisional license shall be twenty-690 five thousand dollars and the fee to receive a final license or a renewal 691 of a final license shall be seventy-five thousand dollars. 692 Sec. 7. Subsection (b) of section 21a-420g of the 2024 supplement to 693 the general statutes is repealed and the following is substituted in lieu 694 thereof (Effective July 1, 2024): 695 (b) Except as provided in section 21a-420o, as amended by this act, 696 and sections 3 and 4 of this act, prior to the first date that the department 697 begins accepting applications for a license type, the department shall 698 determine the maximum number of applications that shall be 699 considered for such license type and post such information on its 700 Internet web site. Fifty per cent of the maximum number of applications 701 that shall be considered for each license type (1) shall be selected 702 through a social equity lottery for such license type, and (2) shall be 703 reserved by the department for social equity applicants. If, upon the 704 close of the application period for a license type, the department 705 receives more applications than the maximum number to be considered 706 in total or to be reserved for social equity applicants as set forth in this 707 subsection, a third-party lottery operator shall conduct a lottery to 708 identify applications for review by the department and the Social Equity 709 Council. 710 Sec. 8. Subsection (b) of section 21a-420m of the 2024 supplement to 711 the general statutes is repealed and the following is substituted in lieu 712 thereof (Effective July 1, 2024): 713 (b) The equity joint venture shall be in any cannabis establishment 714 licensed business, other than a cultivator license, provided such equity 715 joint venture is at least fifty per cent owned and controlled by an 716 individual or individuals who meet, or the equity joint venture 717 applicant is an individual who meets, the criteria established in 718 subparagraphs (A) and (B) of subdivision [(50)] (52) of section 21a-420, 719 Raised Bill No. 5150 LCO No. 886 25 of 55 as amended by this act. 720 Sec. 9. Section 21a-420o of the 2024 supplement to the general statutes 721 is repealed and the following is substituted in lieu thereof (Effective July 722 1, 2024): 723 (a) Thirty days after the Social Equity Council posts the criteria for 724 social equity applicants on its Internet web site, the department shall 725 open up a three-month application period for cultivators during which 726 a social equity applicant may apply to the department for a provisional 727 cultivator license and final license for a cultivation facility located in a 728 disproportionately impacted area without participating in a lottery or 729 request for proposals. Such application for a provisional license shall be 730 granted upon: (1) [verification] Verification by the Social Equity Council 731 that the applicant meets the criteria for a social equity applicant; (2) the 732 applicant submitting to and passing a criminal background check; and 733 (3) payment of a three-million-dollar fee to be deposited in the Cannabis 734 Social Equity and Innovation Fund established in section 21a-420f. Upon 735 granting such provisional license, the department shall notify the 736 applicant of the project labor agreement requirements of section 21a-737 421e. The department shall not grant an application for a provisional 738 cultivator license under this subsection after December 31, 2025. 739 (b) To obtain a final cultivator license under this section, the social 740 equity applicant shall provide evidence of: (1) [a] A contract with an 741 entity providing an approved electronic tracking system as described in 742 section 21a-421n; (2) a right to exclusively occupy [a] the location [in a 743 disproportionately impacted area] at which the cultivation facility will 744 be located, which location shall be situated (A) in a disproportionately 745 impacted area, or (B) in the case of an exclusively outdoor grow, in a 746 municipality containing any portion of a disproportionately impacted 747 area, provided (i) such outdoor grow is conducted on land that such 748 municipality has approved for agricultural or farming uses, and (ii) all 749 cultivation complies with the provisions of the regulations adopted, and 750 policies and procedures issued, pursuant to section 21a-421j, as 751 amended by this act, permitting the outdoor cultivation of cannabis; (3) 752 Raised Bill No. 5150 LCO No. 886 26 of 55 any necessary local zoning approval and permits for the cultivation 753 facility; (4) a business plan; (5) a social equity plan approved by the 754 Social Equity Council; (6) written policies for preventing diversion and 755 misuse of cannabis and sales of cannabis to underage persons; and (7) 756 blueprints of the facility and all other security requirements of the 757 department. 758 Sec. 10. Section 21a-420p of the 2024 supplement to the general 759 statutes is repealed and the following is substituted in lieu thereof 760 (Effective July 1, 2024): 761 (a) On and after July 1, 2021, the department may issue or renew a 762 license for a person to be a micro-cultivator. No person may act as a 763 micro-cultivator or represent that such person is a licensed micro-764 cultivator unless such person has obtained a license from the 765 department pursuant to this section. 766 (b) A micro-cultivator is authorized to cultivate, grow, propagate, 767 manufacture and package the cannabis plant at an establishment 768 containing not less than two thousand square feet and not more than ten 769 thousand square feet of grow space, prior to any expansion authorized 770 by the commissioner, provided such micro-cultivator complies with the 771 provisions of any regulations adopted under section 21a-420q 772 concerning grow space. A micro-cultivator business shall meet physical 773 security controls set forth and required by the commissioner. 774 (c) A micro-cultivator may apply for expansion of its grow space, in 775 increments of five thousand square feet, on an annual basis, from the 776 date of initial licensure, if such licensee is not subject to any pending or 777 final administrative actions or judicial findings. If there are any pending 778 or final administrative actions or judicial findings against the licensee, 779 the department shall conduct a suitability review to determine whether 780 such expansion shall be granted, which determination shall be final and 781 appealable only to the Superior Court. The micro-cultivator may apply 782 for an expansion of its business annually upon renewal of its credential 783 until such licensee reaches a maximum of twenty-five thousand square 784 Raised Bill No. 5150 LCO No. 886 27 of 55 feet of grow space. If a micro-cultivator desires to expand beyond 785 twenty-five thousand square feet of grow space, the micro-cultivator 786 licensee may apply for a cultivator license one year after its last 787 expansion request. The micro-cultivator licensee shall not be required to 788 apply through the lottery application process to convert its license to a 789 cultivator license. If a micro-cultivator maintains its license and meets 790 all of the application and licensure requirements for a cultivator license, 791 including payment of the cultivator license fee established under section 792 21a-420e, as amended by this act, the micro-cultivator licensee shall be 793 granted a cultivator license. 794 (d) A micro-cultivator may label, manufacture, package and perform 795 extractions on any cannabis cultivated, grown and propagated at its 796 licensed establishment provided it meets all licensure and application 797 requirements for a food and beverage manufacturer, product 798 manufacturer or product packager, as applicable. 799 (e) A micro-cultivator may sell, transfer or transport its cannabis to a 800 dispensary facility, hybrid retailer, retailer, delivery service, food and 801 beverage manufacturer, product manufacturer, research program, 802 cannabis testing laboratory or product packager, provided the cannabis 803 is cultivated, grown and propagated at the micro-cultivator's licensed 804 establishment and transported utilizing the micro-cultivator's own 805 employees or a transporter. A micro-cultivator shall not gift or transfer 806 cannabis or cannabis products at no cost to a consumer as part of a 807 commercial transaction. 808 (f) [A] (1) Subject to the requirements of this subsection and 809 subsection (b) of section 21a-420c, a micro-cultivator may sell its own 810 cannabis, including, but not limited to, its own cannabis seedlings, to 811 consumers, excluding qualifying patients and caregivers, either through 812 a delivery service or utilizing its own employees. [, subject to the 813 requirements of subsection (b) of section 21a-420c] No cannabis 814 establishment other than a micro-cultivator shall sell cannabis seedlings 815 to consumers. 816 Raised Bill No. 5150 LCO No. 886 28 of 55 (2) No micro-cultivator shall sell a cannabis seedling to a consumer 817 unless: 818 (A) The micro-cultivator cultivated the cannabis seedling in this state 819 from seed or clone; 820 (B) The cannabis seedling (i) has a standing height of not more than 821 six inches measured from the base of the stem to the tallest point of the 822 plant, (ii) does not contain any bud or flower, and (iii) has been tested 823 for pesticides and heavy metals in accordance with the laboratory 824 testing standards established in the policies and procedures issued, and 825 final regulations adopted, by the commissioner pursuant to section 21a-826 421j, as amended by this act; and 827 (C) A label or informational tag is affixed to the cannabis seedling 828 disclosing the following in legible English, black lettering, Times New 829 Roman font, flat regular typeface, on a contrasting background and in 830 uniform size of not less than one-tenth of one inch, based on a capital 831 letter "K": 832 (i) The name of the micro-cultivator; 833 (ii) A product description for the cannabis seedling; 834 (iii) One of the following chemotypes anticipated after flowering: (I) 835 "High THC, Low CBD"; (II) "Low THC, High CBD"; or (III) "50/50 THC 836 and CBD"; 837 (iv) The results of the testing required under subparagraph (B)(iii) of 838 this subdivision; 839 (v) Directions for optimal care of the cannabis seedling; 840 (vi) Unobscured symbols, in a size of not less than one-half inch by 841 one-half inch and in a format approved by the commissioner, which 842 symbols shall indicate that the cannabis seedling contains THC and is 843 not legal or safe for individuals younger than twenty-one years of age; 844 and 845 Raised Bill No. 5150 LCO No. 886 29 of 55 (vii) A unique identifier generated by a cannabis analytic tracking 846 system maintained by the department and used to track cannabis under 847 the policies and procedures issued, and final regulations adopted, by 848 the commissioner pursuant to section 21a-421j, as amended by this act. 849 (3) Notwithstanding section 21a-421j, as amended by this act, no 850 cannabis seedling shall be required to be sold in child-resistant 851 packaging. 852 (4) No micro-cultivator shall knowingly sell more than three cannabis 853 seedlings to a consumer in any six-month period. 854 (5) No micro-cultivator shall accept any returned cannabis seedling. 855 (6) Any micro-cultivator that engages in the delivery of cannabis as 856 set forth in subdivision (1) of this subsection shall maintain a secure 857 location, in a manner approved by the commissioner, at the micro-858 cultivator's premises where cannabis that is unable to be delivered may 859 be returned to the micro-cultivator. Such secure cannabis return location 860 shall meet specifications set forth by the commissioner and published 861 on the department's Internet web site or included in regulations adopted 862 by the department. A micro-cultivator shall cease delivery of cannabis 863 to consumers if [it] the micro-cultivator converts to being a cultivator. 864 Sec. 11. Subsections (d) and (e) of section 21a-420s of the 2024 865 supplement to the general statutes are repealed and the following is 866 substituted in lieu thereof (Effective July 1, 2024): 867 (d) A hybrid retailer shall [maintain] provide access to a licensed 868 pharmacist, either on premises or through telehealth, at all times when 869 the hybrid retail location is open to the public or to qualifying patients 870 and caregivers. 871 (e) The hybrid retailer location shall include a private consultation 872 space for pharmacists to meet with qualifying patients and caregivers 873 either on premises or through telehealth. Additionally, the hybrid 874 retailer premises shall accommodate an expedited method of entry that 875 Raised Bill No. 5150 LCO No. 886 30 of 55 allows for priority entrance into the premises for qualifying patients and 876 caregivers. 877 Sec. 12. Subsection (b) of section 21a-420u of the 2024 supplement to 878 the general statutes is repealed and the following is substituted in lieu 879 thereof (Effective July 1, 2024): 880 (b) Any equity joint venture created under this section shall be 881 created for the development of a cannabis establishment, other than a 882 cultivator, provided such equity joint venture is at least fifty per cent 883 owned and controlled by an individual or individuals who meet, or the 884 equity joint venture applicant is an individual who meets, the criteria 885 established in subparagraphs (A) and (B) of subdivision [(50)] (52) of 886 section 21a-420, as amended by this act. 887 Sec. 13. Section 21a-420v of the general statutes is repealed and the 888 following is substituted in lieu thereof (Effective July 1, 2024): 889 (a) A dispensary facility or hybrid retailer may submit an application 890 to the department, in a form and manner prescribed by the 891 commissioner, to relocate its current dispensary facility or hybrid 892 retailer location. Such relocation application shall include: 893 (1) The number of qualifying patients the applicant served during the 894 six-month period preceding the date of such relocation application, 895 broken down by month, and indicating whether such number increased 896 or decreased over such six-month period; 897 (2) Evidence of (A) alternative dispensary facilities and hybrid 898 retailers located within a ten-mile radius of the applicant, prior to the 899 proposed relocation, where qualifying patients may obtain medical 900 marijuana products, and (B) available public transportation to the 901 alternative dispensary facilities and hybrid retailers described in 902 subparagraph (A) of this subdivision; 903 (3) A statement disclosing whether the applicant will continue to 904 provide delivery services to the qualifying patients the applicant serves 905 Raised Bill No. 5150 LCO No. 886 31 of 55 prior to the proposed relocation and, if so, the duration and geographic 906 scope of such delivery services; 907 (4) A plan to communicate the proposed relocation to qualifying 908 patients, including, but not limited to, the content and methods of, and 909 timeframes and target audiences for, such communications; and 910 (5) A plan to communicate with nearby dispensary facilities and 911 hybrid retailers concerning the proposed relocation and the needs of the 912 qualifying patients served by the applicant. 913 [(a) Until June 30, 2023, the] (b) The commissioner may deny a 914 [change of location] relocation application from a dispensary facility or 915 hybrid retailer based on the needs of qualifying patients. 916 [(b)] (c) Prior to June 30, 2022, the commissioner shall not approve the 917 relocation of a dispensary facility or hybrid retailer to a location that is 918 further than ten miles from its current dispensary facility or hybrid 919 retailer location. 920 Sec. 14. Section 21a-420y of the 2024 supplement to the general 921 statutes is repealed and the following is substituted in lieu thereof 922 (Effective July 1, 2024): 923 (a) On and after July 1, 2021, the department may issue or renew a 924 license for a person to be a product packager. No person may act as a 925 product packager or represent that such person is a product packager 926 unless such person has obtained a license from the department pursuant 927 to this section. 928 (b) A product packager may obtain cannabis from a producer, 929 cultivator, micro-cultivator, food and beverage manufacturer or a 930 product manufacturer, provided the product packager utilizes its own 931 employees or a transporter. The product packager may sell, transfer or 932 transport cannabis to and from any cannabis establishment, cannabis 933 testing laboratory or research program, provided the product packager 934 only transports cannabis packaged at its licensed establishment and 935 Raised Bill No. 5150 LCO No. 886 32 of 55 utilizing its own employees or a transporter. 936 (c) A product packager shall be responsible for ensuring that 937 cannabis products are labeled and packaged in compliance with the 938 provisions of RERACA and the policies and procedures issued by the 939 commissioner to implement, and any regulations adopted pursuant to, 940 RERACA. 941 (d) A product packager shall ensure all equipment utilized for 942 processing and packaging cannabis is sanitary and inspected regularly 943 to deter the adulteration of cannabis. 944 (e) (1) A product packager may expand the product packager's 945 authorized activities to include the authorized activities of a product 946 manufacturer if: (A) The product packager submits to the department 947 (i) a completed license expansion application on a form and in a manner 948 prescribed by the commissioner, and (ii) the fee prescribed in 949 subparagraph (B) of subdivision (7) of subsection (c) of section 21a-420e, 950 as amended by this act; and (B) the commissioner authorizes the product 951 packager, in writing, to expand such product packager's authorized 952 activities to include the authorized activities of a product manufacturer. 953 (2) A product packager that expands the product packager's 954 authorized activities to include the authorized activities of a product 955 manufacturer under this subsection shall comply with all provisions of 956 this chapter, and all regulations, policies and procedures prescribed 957 pursuant to this chapter, concerning product manufacturers. In the 958 event of a conflict between any provision of this chapter, or any 959 regulation, policy or procedure prescribed pursuant to this chapter, 960 concerning product packagers and any such provision, regulation, 961 policy or procedure concerning product manufacturers, the provision, 962 regulation, policy or procedure imposing the more stringent public 963 health and safety standard shall prevail. 964 Sec. 15. Subsection (b) of section 21a-421j of the 2024 supplement to 965 the general statutes is repealed and the following is substituted in lieu 966 thereof (Effective July 1, 2024): 967 Raised Bill No. 5150 LCO No. 886 33 of 55 (b) The commissioner shall adopt regulations in accordance with 968 chapter 54 to implement the provisions of RERACA. Notwithstanding 969 the requirements of sections 4-168 to 4-172, inclusive, in order to 970 effectuate the purposes of RERACA and protect public health and 971 safety, prior to adopting such regulations the commissioner shall issue 972 policies and procedures to implement the provisions of RERACA that 973 shall have the force and effect of law. The commissioner shall post all 974 policies and procedures on the department's Internet web site and 975 submit such policies and procedures to the Secretary of the State for 976 posting on the eRegulations System, at least fifteen days prior to the 977 effective date of any policy or procedure. The commissioner shall also 978 provide such policies and procedures, in a manner prescribed by the 979 commissioner, to each licensee. Any such policy or procedure shall no 980 longer be effective upon the earlier of either the adoption of the policy 981 or procedure as a final regulation under section 4-172 or forty-eight 982 months from June 22, 2021, if such regulations have not been submitted 983 to the legislative regulation review committee for consideration under 984 section 4-170. The commissioner shall issue policies and procedures and 985 thereafter final regulations that include, but are not limited to, the 986 following: 987 (1) Setting appropriate dosage, potency, concentration and serving 988 size limits and delineation requirements for cannabis, provided a 989 standardized serving of edible cannabis product or beverage, other than 990 a medical marijuana product, shall contain not more than five 991 milligrams of THC. 992 (2) Requiring that each single standardized serving of cannabis 993 product in a multiple-serving edible product or beverage is physically 994 demarked in a way that enables a reasonable person to determine how 995 much of the product constitutes a single serving and a maximum 996 amount of THC per multiple-serving edible cannabis product or 997 beverage. 998 (3) Requiring that, if it is impracticable to clearly demark every 999 standardized serving of cannabis product or to make each standardized 1000 Raised Bill No. 5150 LCO No. 886 34 of 55 serving easily separable in an edible cannabis product or beverage, the 1001 product, other than cannabis concentrate or medical marijuana product, 1002 shall contain not more than five milligrams of THC per unit of sale. 1003 (4) Establishing, in consultation with the Department of Mental 1004 Health and Addiction Services, consumer health materials that shall be 1005 posted or distributed, as specified by the commissioner, by cannabis 1006 establishments to maximize dissemination to cannabis consumers. 1007 Consumer health materials may include pamphlets, packaging inserts, 1008 signage, online and printed advertisements and advisories and printed 1009 health materials. 1010 (5) Imposing labeling and packaging requirements for cannabis sold 1011 by a cannabis establishment that include, but are not limited to, the 1012 following: 1013 (A) Inclusion of universal symbols to indicate that cannabis, or a 1014 cannabis product, contains THC and is not legal or safe for individuals 1015 younger than twenty-one years of age, and prescribe how such product 1016 and product packaging shall utilize and exhibit such symbols. 1017 (B) A disclosure concerning the length of time it typically takes for 1018 the cannabis to affect an individual, including that certain forms of 1019 cannabis take longer to have an effect. 1020 (C) A notation of the amount of cannabis the cannabis product is 1021 considered the equivalent to. 1022 (D) A list of ingredients and all additives for cannabis. 1023 (E) [Child-resistant] Except as provided in subdivision (3) of 1024 subsection (f) of section 21a-420p, as amended by this act, child-1025 resistant, tamper-resistant and light-resistant packaging. [, including 1026 requiring that an edible product be individually wrapped.] For the 1027 purposes of this subparagraph, packaging shall be deemed to be (i) 1028 child-resistant if the packaging satisfies the standard for special 1029 packaging established in 16 CFR 1700.1(b)(4), as amended from time to 1030 Raised Bill No. 5150 LCO No. 886 35 of 55 time, (ii) tamper-resistant if the packaging has at least one barrier to, or 1031 indicator of, entry that would preclude the contents of such packaging 1032 from being accessed or adulterated without indicating to a reasonable 1033 person that such packaging has been breached, and (iii) light-resistant if 1034 the packaging is entirely and uniformly opaque and protects the entirety 1035 of the contents of such packaging from the effects of light. 1036 (F) [Packaging for] Except as provided in subdivision (3) of 1037 subsection (f) of section 21a-420p, as amended by this act, (i) packaging 1038 for cannabis intended for multiple servings to be resealable in such a 1039 manner so as to render such packaging continuously child-resistant, as 1040 described in subparagraph (E)(i) of this subdivision, and preserve the 1041 integrity of the contents of such packaging, and (ii) if packaging for 1042 cannabis intended for multiple servings contains any edible cannabis 1043 product, for each single standardized serving to be easily discernible 1044 and (I) individually wrapped, or (II) physically demarked and 1045 delineated as required under this subsection. 1046 (G) Impervious packaging that protects the contents of such 1047 packaging from contamination and exposure to any toxic or harmful 1048 substance, including, but not limited to, any glue or other adhesive or 1049 substance that is incorporated in such packaging. 1050 (H) Product tracking information sufficient to determine where and 1051 when the cannabis was grown and manufactured such that a product 1052 recall could be effectuated. 1053 (I) A net weight statement. 1054 (J) A recommended use by or expiration date. 1055 (K) Standard and uniform packaging and labeling, including, but not 1056 limited to, requirements (i) regarding branding or logos, (ii) that all 1057 packaging be opaque, and (iii) that amounts and concentrations of THC 1058 and cannabidiol, per serving and per package, be clearly marked on the 1059 packaging or label of any cannabis product sold. 1060 Raised Bill No. 5150 LCO No. 886 36 of 55 (L) For any cannabis concentrate cannabis product that contains a 1061 total THC percentage greater than thirty per cent, a warning that such 1062 cannabis product is a high-potency product and may increase the risk 1063 of psychosis. 1064 (M) Chemotypes, which shall be displayed as (i) "High THC, Low 1065 CBD" where the ratio of THC to CBD is greater than five to one and the 1066 total THC percentage is at least fifteen per cent, (ii) "Moderate THC, 1067 Moderate CBD" where the ratio of THC to CBD is at least one to five but 1068 not greater than five to one and the total THC percentage is greater than 1069 five per cent but less than fifteen per cent, (iii) "Low THC, High CBD" 1070 where the ratio of THC to CBD is less than one to five and the total THC 1071 percentage is not greater than five per cent, or (iv) the chemotype 1072 described in clause (i), (ii) or (iii) of this subparagraph that most closely 1073 fits the cannabis or cannabis product, as determined by mathematical 1074 analysis of the ratio of THC to CBD, where such cannabis or cannabis 1075 product does not fit a chemotype described in clause (i), (ii) or (iii) of 1076 this subparagraph. 1077 (N) A requirement that, prior to being sold and transferred to a 1078 consumer, qualifying patient or caregiver, cannabis packaging be 1079 clearly labeled, whether printed directly on such packaging or affixed 1080 by way of a separate label, other than an extended content label, with: 1081 (i) A unique identifier generated by a cannabis analytic tracking 1082 system maintained by the department and used to track cannabis under 1083 the policies and procedures issued, and final regulations adopted, by 1084 the commissioner pursuant to this section; and 1085 (ii) The following information concerning the cannabis contained in 1086 such packaging, which shall be in legible English, black lettering, Times 1087 New Roman font, flat regular typeface, on a contrasting background 1088 and in uniform size of not less than one-tenth of one inch, based on a 1089 capital letter "K", which information shall also be available on the 1090 Internet web site of the cannabis establishment that sells and transfers 1091 such cannabis: 1092 Raised Bill No. 5150 LCO No. 886 37 of 55 (I) The name of such cannabis, as registered with the department 1093 under the policies and procedures issued, and final regulations adopted, 1094 by the commissioner pursuant to this section. 1095 (II) The expiration date, which shall not account for any refrigeration 1096 after such cannabis is sold and transferred to the consumer, qualifying 1097 patient or caregiver. 1098 (III) The net weight or volume, expressed in metric and imperial 1099 units. 1100 (IV) The standardized serving size, expressed in customary units, and 1101 the number of servings included in such packaging, if applicable. 1102 (V) Directions for use and storage. 1103 (VI) Each active ingredient comprising at least one per cent of such 1104 cannabis, including cannabinoids, isomers, esters, ethers and salts and 1105 salts of isomers, esters and ethers, and all quantities thereof expressed 1106 in metric units and as a percentage of volume. 1107 (VII) A list of all known allergens, as identified by the federal Food 1108 and Drug Administration, contained in such cannabis, or the denotation 1109 "no known FDA identified allergens" if such cannabis does not contain 1110 any allergen identified by the federal Food and Drug Administration. 1111 (VIII) The following warning statement within, and outlined by, a red 1112 box: 1113 "This product is not FDA-approved, may be intoxicating, cause long-1114 term physical and mental health problems, and have delayed side 1115 effects. It is illegal to operate a vehicle or machinery under the influence 1116 of cannabis. Keep away from children." 1117 (IX) At least one of the following warning statements, rotated 1118 quarterly on an alternating basis: 1119 "Warning: Frequent and prolonged use of cannabis can contribute to 1120 Raised Bill No. 5150 LCO No. 886 38 of 55 mental health problems over time, including anxiety, depression, 1121 stunted brain development and impaired memory." 1122 "Warning: Consumption while pregnant or breastfeeding may be 1123 harmful." 1124 "Warning: Cannabis has intoxicating effects and may be habit-1125 forming and addictive." 1126 "Warning: Consuming more than the recommended amount may 1127 result in adverse effects requiring medical attention.". 1128 (X) All information necessary to comply with labeling requirements 1129 imposed under the laws of this state or federal law, including, but not 1130 limited to, sections 21a-91 to 21a-120, inclusive, and 21a-151 to 21a-159, 1131 inclusive, the Federal Food, Drug and Cosmetic Act, 21 USC 301 et seq., 1132 as amended from time to time, and the federal Fair Packaging and 1133 Labeling Act, 15 USC 1451 et seq., as amended from time to time, for 1134 similar products that do not contain cannabis. 1135 (XI) Such additional warning labels for certain cannabis products as 1136 the commissioner may require and post on the department's Internet 1137 web site. 1138 (6) Establishing laboratory testing standards. 1139 (7) Restricting forms of cannabis products and cannabis product 1140 delivery systems to ensure consumer safety and deter public health 1141 concerns. 1142 (8) Prohibiting certain manufacturing methods, or inclusion of 1143 additives to cannabis products, including, but not limited to, (A) added 1144 flavoring, terpenes or other additives unless approved by the 1145 department, or (B) any form of nicotine or other additive containing 1146 nicotine. 1147 (9) Prohibiting cannabis product types that appeal to children. 1148 Raised Bill No. 5150 LCO No. 886 39 of 55 (10) Establishing physical and cyber security requirements related to 1149 build out, monitoring and protocols for cannabis establishments as a 1150 requirement for licensure. 1151 (11) Placing temporary limits on the sale of cannabis in the adult-use 1152 market, if deemed appropriate and necessary by the commissioner, in 1153 response to a shortage of cannabis for qualifying patients. 1154 (12) Requiring retailers and hybrid retailers to make best efforts to 1155 provide access to (A) low-dose THC products, including products that 1156 have one milligram and two and a half milligrams of THC per dose, and 1157 (B) high-dose CBD products. 1158 (13) Requiring producers, cultivators, micro-cultivators, product 1159 manufacturers and food and beverage manufacturers to register brand 1160 names for cannabis, in accordance with the policies and procedures and 1161 subject to the fee set forth in, regulations adopted under chapter 420f. 1162 (14) Prohibiting a cannabis establishment from selling, other than the 1163 sale of medical marijuana products between cannabis establishments 1164 and the sale of cannabis to qualified patients and caregivers, (A) 1165 cannabis flower or other cannabis plant material with a total THC 1166 concentration greater than thirty per cent on a dry-weight basis, and (B) 1167 any cannabis product other than cannabis flower and cannabis plant 1168 material with a total THC concentration greater than sixty per cent on a 1169 dry-weight basis, except that the provisions of subparagraph (B) of this 1170 subdivision shall not apply to the sale of prefilled cartridges for use in 1171 an electronic cannabis delivery system, as defined in section 19a-342a 1172 and the department may adjust the percentages set forth in 1173 subparagraph (A) or (B) of this subdivision in regulations adopted 1174 pursuant to this section for purposes of public health or to address 1175 market access or shortage. As used in this subdivision, "cannabis plant 1176 material" means material from the cannabis plant, as defined in section 1177 21a-279a. 1178 (15) Permitting the outdoor cultivation of cannabis. 1179 Raised Bill No. 5150 LCO No. 886 40 of 55 (16) Prohibiting packaging that is (A) visually similar to any 1180 commercially similar product that does not contain cannabis, or (B) used 1181 for any good that is marketed to individuals reasonably expected to be 1182 younger than twenty-one years of age. 1183 (17) Allowing packaging to include a picture of the cannabis product 1184 and contain a logo of one cannabis establishment, which logo may be 1185 comprised of not more than three colors and provided neither black nor 1186 white shall be considered one of such three colors. 1187 (18) Requiring packaging to (A) be entirely and uniformly one color, 1188 and (B) not incorporate any information, print, embossing, debossing, 1189 graphic or hidden feature, other than any permitted or required label. 1190 (19) Requiring that packaging and labeling for an edible cannabis 1191 product, excluding the warning labels required under this subsection 1192 and a picture of the cannabis product described in subdivision (17) of 1193 this subsection but including, but not limited to, the logo of the cannabis 1194 establishment, shall only be comprised of black and white or a 1195 combination thereof. 1196 (20) (A) Except as provided in subparagraph (B) of this subdivision, 1197 requiring that delivery device cartridges be labeled, in a clearly legible 1198 manner and in as large a font as the size of the device reasonably allows, 1199 with only the following information (i) the name of the cannabis 1200 establishment where the cannabis is grown or manufactured, (ii) the 1201 cannabis brand, (iii) the total THC and total CBD content contained 1202 within the delivery device cartridge, (iv) the expiration date, and (v) the 1203 unique identifier generated by a cannabis analytic tracking system 1204 maintained by the department and used to track cannabis under the 1205 policies and procedures issued, and final regulations adopted, by the 1206 commissioner pursuant to this section. 1207 (B) A cannabis establishment may emboss, deboss or similarly print 1208 the name of the cannabis establishment's business entity, and one logo 1209 with not more than three colors, on a delivery device cartridge. 1210 Raised Bill No. 5150 LCO No. 886 41 of 55 Sec. 16. Section 21a-421r of the general statutes is repealed and the 1211 following is substituted in lieu thereof (Effective July 1, 2024): 1212 A licensed pharmacist working as an employee [at] of a dispensary 1213 facility or hybrid retailer shall transmit dispensing information, in a 1214 manner prescribed by the commissioner, on any cannabis sold to a 1215 qualifying patient or caregiver in real-time or immediately upon 1216 completion of the transaction, unless not reasonably feasible for a 1217 specific transaction, but in no case longer than one hour after completion 1218 of the transaction. 1219 Sec. 17. Subsection (b) of section 21a-421bb of the 2024 supplement to 1220 the general statutes is repealed and the following is substituted in lieu 1221 thereof (Effective July 1, 2024): 1222 (b) Except as provided in subsection (d) of this section, cannabis 1223 establishments shall not: 1224 (1) Advertise, including, but not limited to, through a business name 1225 or logo, cannabis, cannabis paraphernalia or goods or services related to 1226 cannabis: 1227 (A) In ways that target or are designed to appeal to individuals under 1228 twenty-one years of age, including, but not limited to, spokespersons or 1229 celebrities who appeal to individuals under the legal age to purchase 1230 cannabis or cannabis products, depictions of a person under twenty-five 1231 years of age consuming cannabis, or, the inclusion of objects, such as 1232 toys, characters or cartoon characters, suggesting the presence of a 1233 person under twenty-one years of age, or any other depiction designed 1234 in any manner to be appealing to a person under twenty-one years of 1235 age; or 1236 (B) By using any image, or any other visual representation, of the 1237 cannabis plant or any part of the cannabis plant, including, but not 1238 limited to, the leaf of the cannabis plant; 1239 (2) Engage in any advertising by means of any form of billboard 1240 Raised Bill No. 5150 LCO No. 886 42 of 55 within one thousand five hundred feet of an elementary or secondary 1241 school ground or a house of worship, recreation center or facility, child 1242 care center, playground, public park or library, or engage in any 1243 advertising by means of a billboard between the hours of six o'clock a.m. 1244 and eleven o'clock p.m.; 1245 (3) Engage in advertising by means of any television, radio, Internet, 1246 mobile application, social media or other electronic communication, 1247 billboard or other outdoor signage, or print publication unless the 1248 cannabis establishment has reliable evidence that at least ninety per cent 1249 of the audience for the advertisement is reasonably expected to be 1250 twenty-one years of age or older; 1251 (4) Engage in advertising or marketing directed toward location-1252 based devices, including, but not limited to, cellular phones, unless the 1253 marketing is a mobile device application installed on the device by the 1254 owner of the device who is twenty-one years of age or older and 1255 includes a permanent and easy opt-out feature and warnings that the 1256 use of cannabis is restricted to persons twenty-one years of age or older; 1257 (5) Advertise cannabis or cannabis products in a manner claiming or 1258 implying, or permit any employee of the cannabis establishment to 1259 claim or imply, that such products have curative or therapeutic effects, 1260 or that any other medical claim is true, or allow any employee to 1261 promote cannabis for a wellness purpose unless such claims are 1262 substantiated as set forth in regulations adopted under chapter 420f or 1263 verbally conveyed by a licensed pharmacist or other licensed medical 1264 practitioner in the course of business in, or while representing, a hybrid 1265 retail or dispensary facility; 1266 (6) Sponsor charitable, sports, musical, artistic, cultural, social or 1267 other similar events or advertising at, or in connection with, such an 1268 event unless the cannabis establishment has reliable evidence that (A) 1269 not more than ten per cent of the in-person audience at the event is 1270 reasonably expected to be under the legal age to purchase cannabis or 1271 cannabis products, and (B) not more than ten per cent of the audience 1272 Raised Bill No. 5150 LCO No. 886 43 of 55 that will watch, listen or participate in the event is expected to be under 1273 the legal age to purchase cannabis products; 1274 (7) Advertise cannabis, cannabis products or cannabis paraphernalia 1275 in any physical form visible to the public within five hundred feet of an 1276 elementary or secondary school ground or a recreation center or facility, 1277 child care center, playground, public park or library; 1278 (8) Cultivate cannabis or manufacture cannabis products for 1279 distribution outside of this state in violation of federal law, advertise in 1280 any way that encourages the transportation of cannabis across state lines 1281 or otherwise encourages illegal activity; 1282 (9) Except for dispensary facilities and hybrid retailers, exhibit within 1283 or upon the outside of the facility used in the operation of a cannabis 1284 establishment, or include in any advertisement, the word "dispensary" 1285 or any variation of such term or any other words, displays or symbols 1286 indicating that such store, shop or place of business is a dispensary; 1287 (10) Exhibit within or upon the outside of the premises subject to the 1288 cannabis establishment license, or include in any advertisement the 1289 words "drug store", "pharmacy", "apothecary", "drug", "drugs" or 1290 "medicine shop" or any combination of such terms or any other words, 1291 displays or symbols indicating that such store, shop or place of business 1292 is a pharmacy; 1293 (11) Advertise on or in public or private vehicles or at bus stops, taxi 1294 stands, transportation waiting areas, train stations, airports or other 1295 similar transportation venues including, but not limited to, vinyl-1296 wrapped vehicles or signs or logos on transportation vehicles not 1297 owned by a cannabis establishment; 1298 (12) Display cannabis, cannabis products or any image, or any other 1299 visual representation, of the cannabis plant or any part of the cannabis 1300 plant, including, but not limited to, the leaf of the cannabis plant, so as 1301 to be clearly visible to a person from the exterior of the facility used in 1302 the operation of a cannabis establishment, or display signs or other 1303 Raised Bill No. 5150 LCO No. 886 44 of 55 printed material advertising any brand or any kind of cannabis or 1304 cannabis product, or including any image, or any other visual 1305 representation, of the cannabis plant or any part of the cannabis plant, 1306 including, but not limited to, the leaf of the cannabis plant, on the 1307 exterior of any facility used in the operation of a cannabis establishment; 1308 (13) Utilize radio or loudspeaker, in a vehicle or in or outside of a 1309 facility used in the operation of a cannabis establishment, for the 1310 purposes of advertising the sale of cannabis or cannabis products; [or] 1311 (14) Operate any web site advertising or depicting cannabis, cannabis 1312 products or cannabis paraphernalia unless such web site verifies that 1313 the entrants or users are twenty-one years of age or older; or 1314 (15) Engage in advertising or marketing that includes a discounted 1315 price or other promotional offering as an inducement to purchase 1316 cannabis or any cannabis product. 1317 Sec. 18. Section 22-61m of the 2024 supplement to the general statutes 1318 is repealed and the following is substituted in lieu thereof (Effective July 1319 1, 2024): 1320 (a) No person shall manufacture in the state without a license to 1321 manufacture issued by the Commissioner of Consumer Protection. 1322 (b) Each applicant for a manufacturer license shall submit an 1323 application on a form and in a manner prescribed by the Commissioner 1324 of Consumer Protection. 1325 (c) The following fees shall apply for a license to manufacture: 1326 (1) A nonrefundable license application fee of seventy-five dollars; 1327 and 1328 (2) A nonrefundable licensing fee of three hundred seventy-five 1329 dollars for a license to manufacture hemp. 1330 (d) A license to manufacture issued by the Commissioner of 1331 Raised Bill No. 5150 LCO No. 886 45 of 55 Consumer Protection pursuant to this section shall expire triennially on 1332 June thirtieth. Such licenses shall not be transferable. 1333 (e) In accordance with a hearing held pursuant to chapter 54, the 1334 Commissioner of Consumer Protection may deny, suspend or revoke a 1335 manufacturer license, issue fines of not more than two thousand five 1336 hundred dollars per violation and place conditions upon a 1337 manufacturer licensee who violates the provisions of this section and 1338 any regulation adopted pursuant to this section. 1339 (f) (1) Any individual who manufactures in this state without 1340 obtaining a license pursuant to this section or who manufactures in this 1341 state after such entity's license is suspended or revoked shall be fined 1342 two hundred fifty dollars in accordance with the provisions of section 1343 51-164n. 1344 (2) Any entity who manufactures in this state without obtaining a 1345 license pursuant to this section, or who manufactures in this state after 1346 having a license suspended, shall be fined not more than two thousand 1347 five hundred dollars per violation after a hearing conducted in 1348 accordance with the provisions of chapter 54. 1349 (g) Nothing in this chapter or any regulations adopted pursuant to 1350 this chapter shall be construed to apply to persons licensed pursuant to 1351 section 21a-408i nor to require persons licensed pursuant to said section 1352 to obtain a license pursuant to this chapter. 1353 (h) The Commissioner of Consumer Protection may inspect and shall 1354 have access to the buildings, equipment, supplies, vehicles, records, real 1355 property and other information of any manufacturer applicant or 1356 licensee that the commissioner deems necessary to carry out the 1357 commissioner's duties pursuant to this section. 1358 (i) (1) Each manufacturer shall follow the protocol in this subsection 1359 for disposing of cannabis in the event that any hemp or hemp product 1360 is deemed to exceed the prescribed THC concentration, as determined 1361 by the Commissioner of Consumer Protection, or a manufacturer 1362 Raised Bill No. 5150 LCO No. 886 46 of 55 licensee in possession of hemp or hemp products who desires to dispose 1363 of obsolete, misbranded, excess or otherwise undesired product. Each 1364 manufacturer licensee shall be responsible for all costs of disposal of 1365 hemp samples and any hemp produced by such licensee that violates 1366 the provisions of this section or any regulation adopted pursuant to this 1367 section. Any cannabis that exceeds the prescribed THC concentration 1368 allowable in hemp or hemp products shall be immediately embargoed 1369 by such manufacturer and clearly labeled as adulterated by such 1370 licensee and such licensee shall immediately notify both the Department 1371 of Consumer Protection and the Department of Agriculture, in writing, 1372 of such adulterated product. Such adulterated product shall be 1373 destroyed and disposed of by the following method, as determined by 1374 the Commissioner of Consumer Protection: 1375 (A) Surrender, without compensation, of such hemp or hemp product 1376 to the Commissioner of Consumer Protection who shall be responsible 1377 for the destruction and disposal of such adulterated product; or 1378 (B) By disposal in a manner prescribed by the Commissioner of 1379 Consumer Protection. 1380 (2) Notwithstanding the provisions of subdivision (1) of this 1381 subsection, upon written request of a manufacturer, the Commissioner 1382 of Consumer Protection may permit such manufacturer to combine 1383 different batches of raw hemp plant material to achieve a THC 1384 concentration of 0.3 per cent on a dry weight basis, in lieu of embargo 1385 or destruction. 1386 (j) The manufacturer or manufacturer's authorized designee 1387 disposing of the hemp or hemp products shall maintain and make 1388 available to the Commissioner of Consumer Protection a record of each 1389 such disposal or destruction of product indicating: 1390 (1) The date, time and location of disposal or destruction; 1391 (2) The manner of disposal or destruction; 1392 Raised Bill No. 5150 LCO No. 886 47 of 55 (3) The batch or lot information and quantity of hemp or hemp 1393 product disposed of or destroyed; and 1394 (4) The signatures of the persons disposing of the hemp or hemp 1395 products, the authorized representative of the Commissioner of 1396 Consumer Protection and any other persons present during the 1397 disposal. 1398 (k) Any hemp intended to be manufactured by a manufacturer into a 1399 manufacturer hemp product shall be tested by an independent testing 1400 laboratory located in this state. A manufacturer licensee shall make 1401 available samples, in an amount and type determined by th e 1402 Commissioner of Consumer Protection, of hemp for an independent 1403 testing laboratory employee to select random samples. The independent 1404 testing laboratory shall test each sample in accordance with the 1405 laboratory testing standards established in policies, procedures and 1406 regulations adopted by the commissioner pursuant to section 21a-421j, 1407 as amended by this act. 1408 (l) Once a batch of hemp, intended to be sold as a manufacturer hemp 1409 product, has been homogenized for sample testing and eventual 1410 packaging and sale, until the independent testing laboratory provides 1411 the results from its tests and analysis, the manufacturer shall segregate 1412 and withhold from use the entire batch of hemp that is intended for use 1413 as a manufacturer hemp product, except the samples that have been 1414 removed by the independent testing laboratory for testing. During this 1415 period of segregation, the manufacturer licensee shall maintain the 1416 hemp batch in a secure, cool and dry location, as prescribed by the 1417 Commissioner of Consumer Protection, so as to prevent the hemp from 1418 becoming adulterated. Such manufacturer shall not manufacture or sell 1419 a manufacturer hemp product prior to the time that the independent 1420 testing laboratory completes testing and analysis and provides such 1421 results, in writing, to the manufacturer licensee who initiated such 1422 testing. 1423 (m) An independent testing laboratory shall immediately return or 1424 Raised Bill No. 5150 LCO No. 886 48 of 55 dispose of any hemp or manufacturer hemp product upon the 1425 completion of any testing, use or research. If an independent testing 1426 laboratory disposes of hemp or manufacturer hemp products, the 1427 laboratory shall dispose of such hemp in the following manner, as 1428 determined by the Commissioner of Consumer Protection: 1429 (1) By surrender, without compensation, of such hemp or 1430 manufacturer hemp product to the Commissioner of Consumer 1431 Protection who shall be responsible for the destruction and disposal of 1432 such hemp or hemp product; or 1433 (2) By disposal in a manner prescribed by the Commissioner of 1434 Consumer Protection. 1435 (n) If a sample does not pass the microbiological, mycotoxin, heavy 1436 metal or pesticide chemical residue test, based on the laboratory testing 1437 standards established in policies, procedures and regulations adopted 1438 by the Commissioner of Consumer Protection pursuant to section 21a-1439 421j, as amended by this act, the manufacturer licensee who sent such 1440 batch for testing shall: 1441 (1) Retest and reanalyze the hemp from which the sample was taken 1442 by having an employee from the same laboratory randomly select 1443 another sample from the same hemp batch. If the sample used to retest 1444 or reanalyze such hemp yields satisfactory results for all testing 1445 required under this section, an employee from a different laboratory 1446 shall randomly select a different sample from the same hemp batch for 1447 testing. If both samples yield satisfactory results for all testing required 1448 under this section, the hemp batch from which the samples were taken 1449 shall be released for manufacturing, processing and sale; 1450 (2) If a remediation plan sufficient to ensure public health and safety 1451 is submitted to and approved by the commissioner, remediate the hemp 1452 batch from which the sample was taken and have a laboratory employee 1453 randomly select a sample from such remediated hemp batch for testing. 1454 If such randomly selected sample yields satisfactory results for any 1455 testing required under this section, an employee from a different 1456 Raised Bill No. 5150 LCO No. 886 49 of 55 laboratory shall randomly select a different sample from the same hemp 1457 batch for testing. If both samples yield satisfactory results for all testing 1458 required under this section, the hemp batch from which the samples 1459 were taken may be released for manufacturing, processing or sale; or 1460 (3) If the manufacturer does not retest or remediate, or if any 1461 subsequent laboratory testing does not yield satisfactory results for any 1462 testing required under this section, dispose of the entire batch from 1463 which the sample was taken in accordance with procedures established 1464 by the Commissioner of Consumer Protection pursuant to subdivision 1465 (1) of subsection (i) of this section. 1466 (o) If a sample passes the microbiological, mycotoxin, heavy metal 1467 and pesticide chemical residue test, the independent testing laboratory 1468 shall release the entire batch for manufacturing, processing or sale. 1469 (p) The independent testing laboratory shall file with the Department 1470 of Consumer Protection an electronic copy of each laboratory test result 1471 for any batch that does not pass the microbiological, mycotoxin, heavy 1472 metal or pesticide chemical residue test, at the same time that it 1473 transmits such results to the manufacturer licensee who requested such 1474 testing. Each independent testing laboratory shall maintain the test 1475 results of each tested batch for a period of three years and shall make 1476 such results available to the Department of Consumer Protection upon 1477 request. 1478 (q) Manufacturers shall maintain records required by the federal act, 1479 this section, any regulation adopted pursuant to this section and the 1480 policies, procedures and regulations adopted by the Commissioner of 1481 Consumer Protection pursuant to section 21a-421j, as amended by this 1482 act. Each manufacturer shall make such records available to the 1483 Department of Consumer Protection immediately upon request and in 1484 electronic format, if available. 1485 (r) The Commissioner of Consumer Protection may adopt 1486 regulations, in accordance with the provisions of chapter 54, to 1487 implement the provisions of this section including, but not limited to, 1488 Raised Bill No. 5150 LCO No. 886 50 of 55 establishing sampling and testing procedures to ensure compliance 1489 with this section, prescribing storage and disposal procedures for hemp, 1490 marijuana and manufacturer hemp products that fail to pass 1491 Department of Consumer Protection prescribed independent testing 1492 laboratory testing standards and establishing advertising and labeling 1493 requirements for manufacturer hemp products. 1494 (s) Any claim of health impacts, medical effects or physical or mental 1495 benefits shall be prohibited on any advertising for, labeling of or 1496 marketing of manufacturer hemp products regardless of whether such 1497 manufacturer hemp products were manufactured in this state or 1498 another jurisdiction. Any violation of this subsection shall be deemed an 1499 unfair or deceptive trade practice under subsection (a) of section 42-1500 110b. 1501 (t) Not later than February 1, 2020, the Commissioners of Agriculture 1502 and Consumer Protection shall submit a report, in accordance with 1503 section 11-4a, to the joint standing committee of the general assembly 1504 having cognizance of matters relating to the environment on the status 1505 of the pilot program, the development of the state plan and any 1506 regulations for such pilot program or state plan. Such report shall also 1507 include any legislative recommendations, including, but not limited to, 1508 any recommendations for requiring the registration of any 1509 manufacturer hemp product offered for sale in this state. 1510 (u) (1) Any person who sells manufacturer hemp products shall not 1511 be required to be licensed, provided such person only engages in: (A) 1512 The retail or wholesale sale of manufacturer hemp products in which no 1513 further manufacturing of hemp occurs, provided such manufacturer 1514 hemp products are acquired from a person authorized to manufacture 1515 the manufacturer hemp products under the laws of this state or another 1516 state, territory or possession of the United States or another sovereign 1517 entity; (B) the acquisition of manufacturer hemp products for the sole 1518 purpose of product distribution for resale; and (C) the retail sale of 1519 manufacturer hemp products that is authorized under federal or state 1520 law. 1521 Raised Bill No. 5150 LCO No. 886 51 of 55 (2) The Commissioner of Consumer Protection or Commissioner of 1522 Revenue Services may, pursuant to section 4-182, summarily suspend 1523 any credential the Department of Consumer Protection or Department 1524 of Revenue Services, respectively, issued to any person who [sells 1525 manufacturer hemp products in violation of subdivision (1) of this 1526 subsection or subsections (v) to (y), inclusive, of this section] violates 1527 any provision of this section or chapter 214c, 228d, 420f or 420h. 1528 (v) No manufacturer hemp product offered for sale in this state, or to 1529 a consumer in this state, shall contain any synthetic cannabinoid, as 1530 defined in section 21a-240, as amended by this act. 1531 (w) No manufacturer hemp product offered for sale in this state, or 1532 to a consumer in this state, shall be packaged, presented or advertised 1533 in a manner that is likely to mislead a consumer by incorporating any 1534 statement, brand, design, representation, picture, illustration or other 1535 depiction that: (1) Bears a reasonable resemblance to trademarked or 1536 characteristic packaging of (A) cannabis offered for sale (i) in this state 1537 by a cannabis establishment licensed in this state, or (ii) on tribal land 1538 by a tribal-credentialed cannabis entity, or (B) a commercially available 1539 product other than a cannabis product, as defined in section 21a-420, as 1540 amended by this act; or (2) implies that the manufacturer hemp product 1541 (A) is a cannabis product, as defined in section 21a-420, as amended by 1542 this act, (B) contains a total THC concentration greater than three-tenths 1543 per cent on a dry-weight basis, or (C) is a high-THC hemp product, as 1544 defined in section 21a-240, as amended by this act. 1545 (x) No manufacturer hemp product that is a food, beverage, oil or 1546 other product intended for human ingestion shall be distributed or sold 1547 in this state unless such product is contained within a package, or a label 1548 is affixed to such package, that includes: 1549 (1) A scannable barcode, Internet web site address or quick response 1550 code that is linked to the certificate of analysis of the final form product 1551 batch by an independent testing laboratory and discloses: 1552 (A) The name of such product; 1553 Raised Bill No. 5150 LCO No. 886 52 of 55 (B) The name, address and telephone number of such product's 1554 manufacturer, packer and distributor, as applicable; 1555 (C) The batch number, which shall match the batch number on such 1556 package or label; and 1557 (D) The concentration of cannabinoids present in such product, 1558 including, but not limited to, total THC and any cannabinoids or active 1559 ingredients comprising at least one per cent of such product; 1560 (2) The expiration or best by date for such product, if applicable; 1561 (3) A clear and conspicuous statement disclosing that: 1562 (A) Children, or those who are pregnant or breastfeeding, should 1563 avoid using such product prior to consulting with a health care 1564 professional concerning such product's safety; 1565 (B) Products containing cannabinoids should be kept out of reach of 1566 children; and 1567 (C) The federal Food and Drug Administration has not evaluated 1568 such product for safety or efficacy; and 1569 (4) If such product is intended to be inhaled, a clear and conspicuous 1570 warning statement disclosing that smoking or vaporizing is hazardous 1571 to human health. 1572 (y) No manufacturer hemp product that is a topical, soap or cosmetic, 1573 as defined in section 21a-92, shall be distributed or sold in this state 1574 unless such product is contained within a package, or a label is affixed 1575 to such package, that includes: 1576 (1) A scannable barcode, Internet web site address or quick response 1577 code that is linked to the certificate of analysis of the final form extract 1578 or final form product batch by an independent testing laboratory and 1579 discloses: 1580 (A) The name of such product; 1581 Raised Bill No. 5150 LCO No. 886 53 of 55 (B) The name, address and telephone number of such product's 1582 manufacturer, packer and distributor, as applicable; 1583 (C) The batch number, which shall match the batch number on such 1584 package or label; and 1585 (D) The concentration of cannabinoids present in such batch, 1586 including, but not limited to, total THC and any marketed cannabinoids; 1587 (2) The expiration or best by date for such product, if applicable; and 1588 (3) A clear and conspicuous statement disclosing the following: 1589 "THE FDA HAS NOT EVALUATED THIS PRODUCT FOR SAFETY 1590 OR EFFICACY.". 1591 (z) Any violation of subsections (u) to (y), inclusive, of this section 1592 shall be deemed an unfair or deceptive trade practice under subsection 1593 (a) of section 42-110b. 1594 (aa) Not later than October 31, 2023, the Department of Emergency 1595 Services and Public Protection shall, in consultation with the 1596 Department of Consumer Protection, publish a training bulletin to 1597 inform local law enforcement agencies and officers regarding the 1598 investigation and enforcement standards concerning cannabis and high-1599 THC hemp products. 1600 (bb) Notwithstanding any provision of the general statutes: (1) CBD 1601 that is found in manufacturer hemp products shall not be considered a 1602 controlled substance, as defined in section 21a-240, as amended by this 1603 act, or legend drug, as defined in section 20-571; and (2) CBD derived 1604 from hemp and contained in manufacturer hemp products shall not be 1605 considered a controlled substance or adulterant. 1606 (cc) No manufacturer hemp product shall be sold in packaging that 1607 contains more than one serving per container. 1608 Sec. 19. Subsection (c) of section 22-61n of the 2024 supplement to the 1609 Raised Bill No. 5150 LCO No. 886 54 of 55 general statutes is repealed and the following is substituted in lieu 1610 thereof (Effective July 1, 2024): 1611 (c) Hemp or hemp products purchased by a producer, cultivator, 1612 micro-cultivator, [or] product manufacturer or food and beverage 1613 manufacturer from a third party shall be tracked as a separate batch 1614 throughout the manufacturing process in order to document the 1615 disposition of such hemp or hemp products. Once hemp or hemp 1616 products are received by a producer, cultivator, micro-cultivator, [or] 1617 product manufacturer or food and beverage manufacturer, such hemp 1618 or hemp products shall be deemed cannabis and shall comply with the 1619 requirements for cannabis contained in the applicable provisions of the 1620 general statutes and any regulations adopted pursuant to such 1621 provisions. A producer, cultivator, micro-cultivator, [and] product 1622 manufacturer or food and beverage manufacturer shall retain a copy of 1623 the certificate of analysis for purchased hemp or hemp products and 1624 invoice and transport documents that evidence the quantity purchased 1625 and date received. 1626 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2024 21a-240(63) Sec. 2 July 1, 2024 21a-420 Sec. 3 July 1, 2024 New section Sec. 4 July 1, 2024 New section Sec. 5 July 1, 2024 21a-420d(i) to (k) Sec. 6 July 1, 2024 21a-420e(c) Sec. 7 July 1, 2024 21a-420g(b) Sec. 8 July 1, 2024 21a-420m(b) Sec. 9 July 1, 2024 21a-420o Sec. 10 July 1, 2024 21a-420p Sec. 11 July 1, 2024 21a-420s(d) and (e) Sec. 12 July 1, 2024 21a-420u(b) Sec. 13 July 1, 2024 21a-420v Sec. 14 July 1, 2024 21a-420y Sec. 15 July 1, 2024 21a-421j(b) Sec. 16 July 1, 2024 21a-421r Raised Bill No. 5150 LCO No. 886 55 of 55 Sec. 17 July 1, 2024 21a-421bb(b) Sec. 18 July 1, 2024 22-61m Sec. 19 July 1, 2024 22-61n(c) Statement of Purpose: To: (1) Redefine "high-THC hemp product" and "disproportionately impacted area"; (2) enable certain social equity applicants to engage in additional cultivation activities and apply for additional licenses; (3) modify certain common ownership requirements concerning equity joint ventures; (4) enable product packagers to expand their authorized activities; (5) limit the licensing period for certain provisional cultivator licenses; (6) modify requirements concerning the location of cultivation facilities; (7) authorize micro-cultivators to sell cannabis seedlings; (8) authorize hybrid retailers to provide access to pharmacists through telehealth; (9) establish additional requirements concerning dispensary facility and hybrid retailer relocations; (10) alter certain requirements applicable to packaging containing (A) multiple servings of cannabis, or (B) manufacturer hemp products; (11) provide that no cannabis establishment shall engage in certain advertising; and (12) make various minor, technical and conforming changes to statutes concerning cannabis and hemp regulation. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]