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OLR Bill Analysis
sHB 5150
AN ACT CONCERNING CANNABIS AND HEMP REGULATION.
TABLE OF CONTENTS:
SUMMARY
§§ 1-2, 5, 9-10 & 29-31 — INFUSED BEVERAGES
Establishes a new category of THC product, which it classifies as an “infused beverage”
and requires it to meet many of the requirements for manufacturer hemp products;
prohibits sales to anyone under age 21; sets various requirements for signs, packages, and
labels; imposes a 50-cent assessment per container; makes it a CUTPA violation to violate
certain provisions
§ 2 — HIGH-THC HEMP PRODUCTS
Generally lowers the amount of THC for a product to be considered a high-THC hemp
product; removes the differing thresholds depending on the type of product and instead
imposes a uniform threshold
§§ 3 & 4 — MARIJUANA TESTING
Requires each cannabis establishment to submit marijuana (i.e., cannabis) samples to a
cannabis testing laboratory for testing; sets testing and retesting method standards and
procedures; sets maximum marijuana sample batch sizes and when an establishment must
dispose of an entire batch
§§ 5 & 6 — SOCIAL EQUITY APPLICANTS PARTNERING WITH HEMP
PRODUCERS
Allows certain social equity cultivator applicants to partner with hemp producers to
receive either a cultivator or micro-cultivator license that allows cultivation outside a
disproportionately impacted area, under certain conditions
§§ 5 & 12 — STATE-RECOGNIZED TRIBAL RESERVATIONS DEEMED
DISPROPORTIONATELY IMPACTED AREA
Expands what is considered a disproportionately impacted area to include state tribal
reservations and other land they own
§§ 5 & 23 — TRANSPORTER LICENSE
Expands what a transporter licensee may transport by allowing him or her to deliver
manufacturer hemp products between cannabis establishments, among other places
§§ 7, 17 & 24 — MICRO-CULTIVATORS
Allows certain social equity cultivator applicants to apply for a micro-cultivator license
and allows micro-cultivators to sell cannabis seedlings 2024HB-05150-R000199-BA.DOCX
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§§ 8 & 21 — HEMP MANUFACTURER GETTING A PRODUCT
MANUFACTURER LICENSE
Allows a hemp manufacturer to get a product manufacturer license under certain
conditions (e.g., must have been licensed before a certain time and apply during a specific
time period, agree to certain terms, and pay certain fees); allows a manufacturer to get
cannabis from the places it is already allowed to sell, transfer, or transport to
§§ 8 & 27 — SUMMARILY SUSPENDING CERTAIN CREDENTIALS
Expands the DCP and revenue services commissioners’ powers to summarily suspend a
credential for any violation of the laws on manufacturer hemp, cannabis tax, marijuana
and controlled substances tax, medical marijuana, and adult-use cannabis
§ 11 — DELIVERING CANNABIS OR MEDICAL MA RIJUANA
Expands medical marijuana delivery to patients or caregivers by allowing hybrid retailers
or dispensary facilities and their employees to make these deliveries; allows municipalities
to apply for a court order to take certain merchandise from stores that violate this
provision; makes violations CUTPA violations and adds additional penalties
§§ 13 & 22 — PRODUCT PACKAGER EXPANDED A CTIVITIES
Allows a product packager to expand its authorized activities to include the authorized
activities of a product manufacturer
§§ 14-15 & 18 — TECHNICAL AND CONFORMING CHANGES
Makes various technical and conforming changes
§ 16 — SOCIAL EQUITY CULTIVATOR LICENSEES AND OUTDOOR
GROW FACILITY
Allows certain social equity cultivator applicants to locate an exclusively outdoor grow
facility outside a disproportionately impacted area if it is in a municipality that has one,
and prohibits DCP from granting an application for certain social equity provisional
cultivator licenses after December 31, 2025
§ 19 — RELOCATION OF DISPENSARY OR HYBRID RETAILER
Requires certain information be included in a dispensary facility’s or hybrid retailer’s
application to relocate their facility or retail location and, by eliminating the sunset date;
allows the DCP commissioner to deny these applications
§§ 20 & 21 — CERTAIN MANUFACTURERS GETTIN G CANNABIS
Allows a product manufacturer and food and beverage manufacturer to get cannabis from
the places it is already allowed to sell, transfer, or transport to
§ 24 — PACKAGING AND SIGNAGE
Allows edible cannabis products to be packaged for multiple servings under certain
requirements and requires DCP to establish disclosures for mold and yeast and signage for
mold and their remediation practices
§ 25 — STORING CANNABIS
Deems a location to be secure for storing cannabis if it satisfies the requirements for
securing certain controlled substances
§ 26 — ADVERTISING
Generally prohibits cannabis establishments from advertising or marketing a discounted
price or other promotional offer to buy cannabis 2024HB-05150-R000199-BA.DOCX
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§ 27 — MANUFACTURER HEMP PRODUCTS
Specifies out-of-state licensees may apply for a DCP manufacturer hemp license; increases
various fines; limits manufacturer hemp THC levels and sales to establishments that only
sell other hemp products; allows municipalities to prohibit certain businesses from
operating if found in violation of these hemp laws; makes additional actions CUTPA
violations
§ 28 — FOOD AND BEVERAGE MANUFACTURER TR ACKING HEMP
Requires food and beverage manufacturers to track third-party purchases of hemp or hemp
products
BACKGROUND
SUMMARY
This bill makes various changes to the laws around adult-use
cannabis, hemp, and medical marijuana. Among other things, it:
1. establishes a new category of high-tetrahydrocannabinol (THC)
product, which it classifies as an “infused beverage” and requires
it to meet many of the requirements for manufacturer hemp
products (i.e., intended for human ingestion, inhalation,
absorption, or other internal consumption) and prohibits sales to
anyone under age 21;
2. generally lowers the amount of THC for a product to be
considered a high-THC hemp product and removes the differing
thresholds depending on the type of product, instead setting a
uniform threshold;
3. requires each cannabis establishment to submit marijuana (i.e.,
cannabis) samples to a cannabis testing laboratory for testing;
4. allows certain social equity cultivator applicants to (a) partner
with hemp producers to receive either a cultivator or micro-
cultivator license that allows cultivation outside a
disproportionately impacted area, (b) apply for a micro-
cultivator license, and (c) locate an exclusively outdoor grow
facility outside a disproportionately impacted area;
5. expands what is considered a disproportionately impacted area
to include state tribal reservations and other land tribes own; 2024HB-05150-R000199-BA.DOCX
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6. expands what certain licensees (e.g., a product packager allowed
to do product manufacturer activities) can do under their licenses
and allows them to apply to the Department of Consumer
Protection (DCP) to do expanded activities;
7. expands the DCP and revenue services commissioners’ powers
to summarily suspend a credential for certain violations;
8. allows edible cannabis products to be packaged for multiple
servings under certain requirements and requires DCP to
establish disclosures and signs for mold and yeast;
9. generally prohibits cannabis establishments from advertising or
marketing a discounted price or other promotional offer to buy
cannabis;
10. limits the amount of THC in manufacturer hemp products and
requires it to be sold in establishments that only sell other hemp
products; and
11. makes various other minor, technical, and conforming changes.
EFFECTIVE DATE: July 1, 2024
§§ 1-2, 5, 9-10 & 29-31 — INFUSED BEVERAGES
Establishes a new category of THC product, which it classifies as an “infused beverage”
and requires it to meet many of the requirements for manufacturer hemp products;
prohibits sales to anyone under age 21; sets various requirements for signs, packages, and
labels; imposes a 50-cent assessment per container; makes it a CUTPA violation to violate
certain provisions
The bill establishes a new category of THC product, which it classifies
as an “infused beverage” and requires it to meet many of the
requirements for manufacturer hemp products. It prohibits sales of
these beverages to anyone under age 21.
Infused Beverages (§§ 2, 5, 9, 29 & 30)
An “infused beverage” is a beverage that is not alcoholic; is intended
for human consumption; and is advertised, labeled, or offered for sale
as having a total THC content of less than 2.5 milligrams (mg) per
container that is at least 12 fluid ounces. It is not considered cannabis, 2024HB-05150-R000199-BA.DOCX
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marijuana, or a high-THC product.
Age Requirement. The bill prohibits infused beverages from being
sold to anyone under age 21. It does so by prohibiting a package store
owner, agent, or employee; dispensary facility, hybrid retailer (i.e.,
licensed to sell both recreational cannabis and medical marijuana), or
retailer from selling these beverages without first verifying the
consumer’s age with a valid driver’s license or identification card.
Sales and Sign Requirements. Under the bill, an infused beverage
may only be sold and distributed if it is sold at a package store that buys
from a wholesaler, dispensary facility, hybrid retailer, or retailer. If sold
at a dispensary, hybrid retailer, or retailer, the beverage must be stored
and displayed separately from cannabis in the same way as
manufacturer hemp products (i.e., displayed with a DCP-approved
sign, clearly labeled to distinguish them as a different product, and
subject to different testing standards).
Standards. Infused beverages must also meet certain standards of
manufacturer hemp products. These standards prohibit these beverages
from:
1. having any synthetic cannabinoid;
2. being packaged, presented, or advertised in a way that is likely
to mislead a consumer (e.g., using a statement or depiction that
resembles cannabis or implying it is a cannabis product); and
3. being distributed or sold without certain packaging and labeling
(e.g., scannable bar code and product expiration or best by date
if applicable).
The bill requires infused beverages to meet the testing standards for
manufacturer hemp products required by law or regulation or other
testing standards for these products the DCP commissioner or his
designee may require.
Packaging and Labeling Requirements. The bill prohibits these
beverages from being sold in packages that have more than two 2024HB-05150-R000199-BA.DOCX
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containers.
It also requires each beverage container to prominently display a
symbol of at least one-half inch by one-half inch in a DCP commissioner-
approved format that indicates the beverage is not legal for sale to
people under age 21.
Penalty. Under the bill, anyone who makes an unauthorized sale of
infused beverages is deemed to have violated the Connecticut Unfair
Trade Practices Act (CUTPA, see BACKGROUND), which the attorney
general must enforce.
For other violations (e.g., underage sales or violations of the sales,
standards, or labeling requirements), violators are deemed to have
committed a CUTPA violation.
The bill specifies that CUTPA’s provision for a private right of action,
class actions, equitable relief, and jury trials applies to these violations.
Container Assessment (§§ 1, 10 & 31)
The bill requires a 50-cent assessment on every infused beverage
container sold that must be remitted to DCP every six months for certain
public health and safety purposes.
Under the bill, a cannabis establishment (i.e., dispensary facility,
hybrid retailer, or retailer) and alcohol liquor wholesaler permittee or
beer wholesaler permittee must assess this on each container sold. For
cannabis establishments, it is on sales to a consumer. For wholesalers, it
is on sales to a package store. These assessments are not subject to any
sales tax or treated as income tax.
The bill begins the required remittances on different dates, but
requires they all occur every six months. For cannabis establishments, it
begins October 1, 2024, and for wholesalers it begins January 2, 2025. For
both, they must remit payment to DCP for each infused beverage
container sold during the preceding six months, and the funds must be
deposited into the consumer protection enforcement account. This
money must be used for the purpose of (1) protecting public health and 2024HB-05150-R000199-BA.DOCX
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safety, (2) educating consumers and licensees, and (3) ensuring
compliance with cannabis and liquor control laws.
§ 2 — HIGH-THC HEMP PRODUCTS
Generally lowers the amount of THC for a product to be considered a high-THC hemp
product; removes the differing thresholds depending on the type of product and instead
imposes a uniform threshold
The bill generally lowers the amount of THC for a product to be
considered a high-THC hemp product and classifying it as marijuana or
cannabis, subjecting it to various licensing and regulatory requirements
(e.g., it must be sold only by licensed establishments, tested, and sold
only to those age 21 or older except under the medical marijuana
program). It also removes the differing thresholds depending on the
type of product and instead imposes a uniform threshold.
Under the bill, the new THC thresholds are 2.5 mg per container of
any manufacturer hemp product or 0.3% on a dry-weight basis for
cannabis flower or cannabis trim.
Under current law the thresholds are:
1. for a hemp edible, topical, or transdermal patch: (a) one mg on a
per-serving basis or (b) five mg on a per-container basis;
2. for a hemp tincture, including oil intended for ingestion by
swallowing, buccal administration (i.e., between the gums and
mouth cheek), or sublingual absorption (i.e., placing under
tongue to dissolve): (a) one mg on a per-serving basis or (b) 25
mg on a per-container basis;
3. for a hemp concentrate or extract, including a vape oil, wax, or
shatter (a type of cannabis extract): 25 mg on a per-container
basis; or
4. for a manufacturer hemp product not described above: (a) one
mg on a per-serving basis, (b) five mg on a per-container basis, or
(c) 0.3% on a dry-weight basis for cannabis flower or cannabis
trim. 2024HB-05150-R000199-BA.DOCX
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§§ 3 & 4 — MARIJUANA TESTING
Requires each cannabis establishment to submit marijuana (i.e., cannabis) samples to a
cannabis testing laboratory for testing; sets testing and retesting method standards and
procedures; sets maximum marijuana sample batch sizes and when an establishment must
dispose of an entire batch
Testing Samples
The bill requires each cannabis establishment to submit marijuana
(i.e., cannabis) samples to a cannabis testing laboratory for testing, as
required by this provision. By law, a cannabis establishment is a
producer, dispensary facility, cultivator, micro-cultivator, retailer,
hybrid retailer, food and beverage manufacturer, product
manufacturer, product packager, delivery service, or transporter.
Under the bill, a cannabis testing laboratory must test each marijuana
sample for (1) microbiological contaminants, mycotoxins, heavy metals,
and pesticide chemical residue and (2) an active ingredient analysis, if
applicable. The microbiological testing must include, as a minimum,
testing for the Aspergillus species, as set and posted on DCP’s website.
(Presumably, DCP will set acceptable limits for all of these tests.)
Testing Methods
When conducting the microbiological testing, the marijuana sample
must be tested using a molecular method that:
1. includes quantitative polymerase chain reaction;
2. is certified for identifying microbiological DNA; and
3. is approved by the Asso ciation of Official Analytical
Collaboration International, or a comparable national research
and standard-making agency the DCP commissioner designates.
The bill also allows alternative testing methods if DCP approves them
and posts them on the department’s website.
Repeat Testing After Failure
Under the bill, if a sample does not pass the testing, the cannabis
establishment that submitted the failing sample must repeat testing on
the marijuana batch where the sample was taken, in a DCP-approved 2024HB-05150-R000199-BA.DOCX
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way. If the repeat test provides satisfactory results, the entire batch may
be released for sale.
The bill also allows a cannabis establishment to submit a remediation
plan that is sufficient to ensure public health and safety to the
commissioner and, if he approves it, the establishment may remediate
the batch where the sample was taken and repeat the testing in a DCP-
approved way. If all the repeat testing provides satisfactory results, the
entire batch may be released for sale.
Disposing of Batches
If a cannabis establishment does not retest, or if repeat laboratory
testing does not provide satisfactory results, the establishment must
dispose of the entire marijuana batch where the sample was taken
according to DCP commissioner-established procedures, as published
on the agency’s website.
Marijuana Batch Size
The bill sets the maximum quantity and number of marijuana
samples to be sufficient to ensure representative sampling of the
corresponding batch size. The size of the corresponding marijuana batch
size must not exceed the lesser of:
1. 25 pounds or
2. a smaller marijuana batch size, if the DCP commissioner (a) has
determined the smaller size is needed to protect public health
and safety and (b) posts the smaller size on DCP’s website within
30 days before the first date the commissioner requires the
smaller size.
§§ 5 & 6 — SOCIAL EQUITY APPLICANTS PART NERING WITH
HEMP PRODUCERS
Allows certain social equity cultivator applicants to partner with hemp producers to
receive either a cultivator or micro-cultivator license that allows cultivation outside a
disproportionately impacted area, under certain conditions
The bill provides an additional option for certain social equity
cultivator applicants by allowing them to partner with hemp producers 2024HB-05150-R000199-BA.DOCX
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to cultivate outside a disproportionately impacted area.
By law, DCP opened a three-month application period for social
equity applicants to apply for a provisional and final cultivator license
for a facility located in a disproportionately impacted area without
participating in a lottery or request for proposals.
The bill sets a time period of between July 1, 2024, and December 31,
2025, for these social equity applicants to partner with a hemp producer
to receive a cultivator or micro-cultivator license that may grow outside
a disproportionately impacted area, under certain conditions.
Under current policies and procedures, among other things,
cultivators must have a grow space and outdoor grow space of between
15,000 and 250,000 square feet in the aggregate, and micro-cultivators
must have between 2,000 and 10,000 square feet in the aggregate, before
any authorized expansion.
Conditions for New License
To qualify under the bill, the social equity applicant must have
submitted an application before July 1, 2024, and also reapply under the
terms of the bill between July 1, 2024, and March 31, 2025.
Applied for Prior License. The bill requires a social equity applicant
to have submitted a completed cultivator application to locate the
cultivation facility in a disproportionately impacted area before July 1,
2024. Additionally, the applicant must have been either:
1. verified by the Social Equity Council to have met the social equity
applicant criteria or
2. issued a provisional, but not final, cultivator license by DCP.
Applying for New License With Hemp Producer. The bill requires
the applicant to (1) apply to DCP between July 1, 2024, and March 31,
2025, by submitting a completed application for a new cultivator or
micro-cultivator license on a DCP-prescribed form and (2) meet the bill’s
requirements. 2024HB-05150-R000199-BA.DOCX
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The bill requires the applicant to submit:
1. a copy of the agreement between the applicant and a hemp
producer that has been continually licensed as a hemp producer
since January 1, 2023 (see below);
2. an acknowledgement from the applicant and a separate
acknowledgement from the hemp producer of the steps that take
place after the license is issued (see below);
3. evidence that is sufficient for DCP that the hemp producer has
been continuously licensed since January 1, 2023;
4. a written statement from the applicant disclosing whether he or
she have had any change of ownership or control since being
verified by the Social Equity Council as a social equity applicant;
and
5. the application fee, which unless the applicant has already
received a provisional cultivator license or paid the fee, is either
(a) $3 million for a cultivator license or (b) $500,000 for a micro-
cultivator license.
Requirements of Hemp Producer Agreement. The agreement must
require the use of the hemp producer’s cultivation lot, which may be
located outside of a disproportionately impacted area. It must also
provide that if DCP issues a provisional cultivator or micro-cultivator
license to the applicant the:
1. provisional license automatically replaces both the provisional
cultivator license application the applicant submitted and any
provisional cultivator license DCP may have issued, and both are
immediately deemed to have been automatically withdrawn or
surrendered, and
2. hemp producer must immediately be deemed to have
automatically surrendered his or her hemp producer license.
Acknowledgements. Under the bill, the applicant must also submit 2024HB-05150-R000199-BA.DOCX
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an acknowledgment by both the applicant and hemp producer that
upon approval under the bill the new license replaces any existing
application and license, and both are automatically considered
withdrawn or surrendered (as mentioned above).
Additionally, the applicant must acknowledge that he or she will be
(1) eligible to create only one equity joint venture after receiving a
cultivator license and begins cultivation activities and (2) ineligible to
create an equity joint venture after receiving a micro-cultivator license.
Changes to Social Equity Status. Under the bill, if applicable, if the
applicant provided a written statement on changes in ownership or
control, the Social Equity Council must determine if the changes are
allowed under the laws and regulations governing its application
review process. Additionally, the council must also review the
agreement between the applicant and hemp producer.
For both reviews, the council must determine whether the applicant
continues to meet the social equity applicant criteria and submit to DCP
a written notice disclosing its determination.
Harvesting Hemp. Before a new license may be issued, the bill
requires all hemp to be harvested from the cultivation lot. All harvested
hemp continues to be deemed hemp until DCP issues a final cultivator
or micro-cultivator license to the applicant. (Hemp and cannabis are
regulated under different laws in Connecticut.) After the final license is
issued, the harvested hemp is deemed cannabis and subject to all
cannabis cultivation, testing, labeling, tracking, reporting, and
manufacturing laws that apply to cultivators and micro-cultivators.
License Renewal Fee
Under the bill, a renewal fee for a final cultivator and micro-cultivator
license are the same as existing law (i.e., $75,000 for cultivators and
$1,000 for micro-cultivators). All of these fees must be deposited in the
Cannabis Social Equity and Innovation Fund. By law, this fund may be
used as access to capital for businesses, technical assistance for start-ups,
workforce education and community investment funding, and paying 2024HB-05150-R000199-BA.DOCX
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costs for regulating cannabis (CGS § 21a-420f).
Equity Joint Venture
In a provision that is substantially similar to the acknowledgement
requirements above, the bill only allows a social equity applicant to
create one equity joint venture and it may not be created until the
applicant has received a cultivator license and begins cultivation
activities. It also prohibits social equity applicants receiving a micro-
cultivator license from creating an equity joint venture.
Application Information Disclosure
The bill extends existing law’s prohibition on application information
disclosure to these applications. Existing law generally prohibits current
or former state officers or employees, or employees of anyone who had
access to a submitted application, to disclose the application or any
information included in or submitted with it (CGS § 21a-420e(g)).
Application Process
Regardless of any provision of the Responsible and Equitable
Regulation of Adult-Use Cannabis Act and unless otherwise provided
in these provisions, the bill requires each submitted application to be
processed as other cultivator or micro-cultivator applications selected
through the lottery and subject to the process set in existing laws.
§§ 5 & 12 — STATE-RECOGNIZED TRIBAL RESE RVATIONS
DEEMED DISPROPORTION ATELY IMPACTED AREA
Expands what is considered a disproportionately impacted area to include state tribal
reservations and other land they own
The bill expands what is considered a “disproportionately impacted
area” to include state tribal reservations of the Schaghticoke, Paucatuck
Eastern Pequot, or Golden Hill Paugusset.
On and after July 1, 2024, the bill deems any of these state tribal
reservations as a disproportionately impacted areas, as long as the
reservation includes at least 10 acres of contiguous land, and the land
was part of the reservation on July 1, 2024. On and after January 1, 2025,
any land parcel the state-recognized tribes own in fee simple is deemed
a disproportionately impacted area if the parcel is at least 10 acres of 2024HB-05150-R000199-BA.DOCX
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contiguous land and is in a municipality that contained a
disproportionately impacted area before July 1, 2024.
Under existing law, a disproportionately impacted area is a U.S.
census track in the state that Social Equity Council identifies using a
statutory process. Additionally, the adult-use cannabis laws provide
certain advantages to residents of disproportionately impacted areas
(e.g., social equity applicants). And certain cultivators with social equity
applicants could have received a license without participating in a
lottery if they located their facilities in a disproportionately impacted
area (CGS §§ 21a-420(48) & -420o).
§§ 5 & 23 — TRANSPORTER LICENSE
Expands what a transporter licensee may transport by allowing him or her to deliver
manufacturer hemp products between cannabis establishments, among other places
The bill expands what a transporter licensee may transport by
allowing a licensee to deliver manufacturer hemp products between
cannabis establishments, research programs, and cannabis testing
laboratories. It also makes a conforming change requiring applicants to
indicate the type of transport they will be applying for.
§§ 7, 17 & 24 — MICRO-CULTIVATORS
Allows certain social equity cultivator applicants to apply for a micro-cultivator license
and allows micro-cultivators to sell cannabis seedlings
Social Equity Applicants (§ 7)
Similar to how the bill allows certain social equity applicants to
partner with a hemp producer (see §§ 5 & 6 above) to apply for a new
cultivator or micro-cultivator license after applying for a cultivator
license in a disproportionately impacted area without a lottery or
request for proposal, the bill also allows these applicants to apply for a
new micro-cultivator license without any partners.
Application. Under the bill, between July 1, 2024, and December 31,
2024, a social equity applicant that had submitted an application for
these cultivator licenses may withdraw the application and apply for a
micro-cultivator license. The applicant may do so if:
1. the Social Equity Council verifies the applicant meets the social 2024HB-05150-R000199-BA.DOCX
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equity criteria;
2. the applicant is eligible to receive a provisional cultivator license
(e.g., passes criminal background check);
3. DCP has not already issued a provisional cultivator license; and
4. the applicant submits an application to DCP with a written
statement (a) withdrawing the cultivation application, and (b)
acknowledging that with the withdrawal, the applicant will be
ineligible to create an equity joint venture.
Withdrawals. The bill specifies that applicants that withdraw an
application are not eligible for a refund on any fee connected to that
application.
Issuance of License. During this period, DCP must issue a micro-
cultivator license to a social equity applicant if he or she:
1. meets eligibility criteria and submits a completed application,
2. submits a written statement disclosing whether any change in
ownership or control has occurred since the applicant was
verified by the Social Equity Council as a social equity applicant,
and
3. submits the $500,000 application fee and $500,000 conversion fee.
Changes to Social Equity Status. Under the bill, if applicable, if the
applicant provided a written statement on changes in ownership or
control, then the Social Equity Council must determine if the changes
are allowed under the laws and regulations governing its application
review process.
The council must determine whether the applicant continues to meet
the social equity applicant criteria and submit to DCP a written notice
disclosing its determination.
License Renewal Fee. Under the bill, a renewal fee for a final micro-
cultivator license is the same as existing law (i.e., $1,000 for micro- 2024HB-05150-R000199-BA.DOCX
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cultivators). These fees must be deposited in the Cannabis Social Equity
and Innovation Fund (see above).
Equity Joint Venture. Under the bill, an applicant that withdraws an
application in the process above, is ineligible to create an equity joint
venture.
Application Disclosure and Process. Like the provision allowing
applicants to partner with hemp producers, the bill applies the same
prohibition on application disclosure and requires submitted
applications to be processed as other applications selected through the
lottery.
Seedlings (§§ 17 & 24)
The bill allows a micro-cultivator, and no other cannabis
establishment, to sell its own cannabis seedlings to consumers. But a
micro-cultivator may only sell a seedling to a consumer if:
1. the micro-cultivator cultivated the seedling in the state from a
seed or clone;
2. the seedling has a standing height of up to six inches measured
from the base of the stem to the tallest point, does not contain any
bud or flower, and has been tested for pesticides and heavy
metals based on laboratory testing standards set by policies and
procedures and final regulations; and
3. there is a label or informational tag on the seedling disclosing
certain information.
The bill requires the label or informational tag to include the
following in legible English, black lettering, Times New Roman font, flat
regular typeface, on a contrasting background, and in uniform size of at
least one-tenth of one inch, based on a capital letter “K”:
1. the micro-cultivator’s name;
2. a product description for the seedling; 2024HB-05150-R000199-BA.DOCX
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3. one of the following chemotypes anticipated after flowering:
“High THC, Low CBD,” “Low THC, High CBD,” or “50/50 THC
and CBD;”
4. the results of the required testing;
5. directions for the optimal care of the seedling;
6. unobscured symbols, in a size of at least one-half inch by one-half
inch and in a DCP commissioner-approved format, where the
symbols indicate the seedling contains THC and is not legal or
safe for individuals under age 21; and
7. a unique identifier that a cannabis analytic tracking generates
and DCP maintains to track cannabis under policies, procedures,
and final regulations.
Exempts Seedlings From Child-Resistant Packaging and
Creates Limit on Sales. The bill exempts micro-cultivators selling
seedlings from having to sell them in child-resistant packaging. It also
prohibits micro-cultivators from (1) selling more than three seedlings to
a consumer in any six-month period and (2) accepting any returned
seedlings.
§§ 8 & 21 — HEMP MANUFACTURER GETTING A PRODUCT
MANUFACTURER LICENSE
Allows a hemp manufacturer to get a product manufacturer license under certain
conditions (e.g., must have been licensed before a certain time and apply during a specific
time period, agree to certain terms, and pay certain fees); allows a manufacturer to get
cannabis from the places it is already allowed to sell, transfer, or transport to
The bill allows a hemp manufacturer to get a product manufacturer
license from DCP. By law, a product manufacturer may:
1. perform cannabis extractions, chemical synthesis, and all other
manufacturing activities the DCP commissioner allows and
publishes on DCP’s website;
2. package and label cannabis manufactured at its establishment
subject to its license; and 2024HB-05150-R000199-BA.DOCX
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3. sell, transfer, or transport its own products to a cannabis
establishment, laboratory, or research program if the
transportation is done using its own employees or a transporter.
Under the bill, a product manufacturer may also get cannabis from a
cannabis establishment, laboratory, or research program.
License Requirement
The bill requires DCP to issue a product manufacturer license to a
hemp manufacturer if:
1. the manufacturer (a) has a DCP hemp manufacturer license; (b)
continually held this license since January 1, 2022; and (c) is not a
Department of Agriculture licensed hemp producer;
2. during the period between July 1, 2024, and December 31, 2024,
the manufacturer submits a completed application to DCP with
a $25,000 application fee as well as social equity and workforce
development plans approved by the Social Equity Council; and
3. the manufacturer submits an acknowledgement that if DCP
issues a final license to the manufacturer, the manufacturer will
immediately be deemed to have automatically surrendered its
hemp manufacturer license.
Hemp
The bill allows a provisional product manufacturer licensee to
maintain an active hemp manufacturer license, provided the
manufacturer must immediately be deemed to have automatically
surrendered the hemp manufacturer license when DCP issues a final
license.
Under the bill, hemp and hemp products in the manufacturer’s
possession continues to be deemed hemp while he or she has an active
hemp manufacturer license. But once DCP issues the final product
manufacturer license and the hemp manufacturer license is
automatically surrendered, all of these hemp and hemp products are
deemed cannabis and subject to all applicable laws and regulations. 2024HB-05150-R000199-BA.DOCX
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Fees
As under existing law, each final product manufacturer license and
renewal fee is $25,000. These fees are nonrefundable and must be
deposited in the Cannabis Social Equity and Innovation Fund (see
above).
Application Process
The bill requires each complete application to be processed like a
product manufacturer application selected through the lottery and
subject to certain similar application requirements and procedures (e.g.,
limited disclosure of application information, no backers being added
during certain periods, and how provisional and final licenses are
issued).
Sufficient Cause
Existing law allows the DCP commissioner, for sufficient cause, to
suspend or revoke a license or registration, issue fines of up to $25,000
per violation, accept an offer in compromise, refuse to grant or renew a
license or registration, place a licensee or registrant on probation, place
conditions on a licensee or registrant, or take other actions the law
permits. The bill deems violations of any of the bill’s product
manufacturer provisions as sufficient cause.
§§ 8 & 27 — SUMMARILY SUSPENDING CERTAIN CREDENTIALS
Expands the DCP and revenue services commissioners’ powers to summarily suspend a
credential for any violation of the laws on manufacturer hemp, cannabis tax, marijuana
and controlled substances tax, medical marijuana, and adult-use cannabis
Under current law, the DCP and revenue services commissioners
may summarily suspend any credential their respective department
issues to anyone who violates certain provisions on selling
manufacturer hemp products (e.g., selling hemp that contains synthetic
cannabinoid and failing to follow labeling or packaging guidelines). The
bill expands the power to summarily suspend a credential to apply to
any violation of the laws on manufacturer hemp, cannabis tax,
marijuana and controlled substances tax, medical marijuana, and adult-
use cannabis. As under existing law, these suspensions must be done
under the Uniform Administrative Procedure Act (UAPA) procedures 2024HB-05150-R000199-BA.DOCX
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for matters involving licenses.
§ 11 — DELIVERING CANNABIS OR MEDICAL MA RIJUANA
Expands medical marijuana delivery to patients or caregivers by allowing hybrid retailers
or dispensary facilities and their employees to make these deliveries; allows municipalities
to apply for a court order to take certain merchandise from stores that violate this
provision; makes violations CUTPA violations and adds additional penalties
Medical Marijuana Deliveries
Current law generally prohibits anyone except delivery services or
their employees from delivering cannabis to consumers, patients, or
caregivers. The bill expands who may deliver medical marijuana to
patients or caregivers by allowing hybrid retailers or dispensary
facilities and their employees, who are acting as part of their
employment, to make these deliveries.
Municipal Prohibition
The bill allows any municipality, by legislative vote, to prohibit any
business from operating within the municipality if the business (1) is
found to be illegally selling, offering, or delivering cannabis or (2) poses
an immediate threat to public health and safety (see below).
If a municipality’s chief executive officer determines that a business
in the municipality is operating (i.e., offering sales of goods and services
to the general public, including through indirect sales) in this way, he
or she may apply to Superior Court for an order to take certain
merchandise from the business. If the Superior Court finds that a
business is in violation or poses a threat, then it may issue an ex parte
(i.e., only one party involved) order without a hearing directing the
municipality’s chief law enforcement officer to take possession and
control of merchandise related to the violation or immediate threat to
public health and safety. These items include any cannabis or cannabis
product; any cigarette, tobacco, or tobacco product; any merchandise
related to these products; and any proceeds related to these products
and merchandise.
Under the bill, “immediate threat to public health and safety”
includes the presence of any (1) cannabis or cannabis product in
connection with any law on selling, offering, or delivering cannabis, or 2024HB-05150-R000199-BA.DOCX
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(2) cigarette or tobacco product alongside any cannabis or cannabis
product.
Penalties
Under the bill, a violation of the law on selling, offering, or delivering
cannabis is deemed a CUTPA violation, which the attorney general
must enforce. It also specifies that CUTPA’s provision for a private right
of action, class actions, equitable relief, and jury trials apply to these
violations.
Additionally, anyone who aids or abets these violations is assessed a
$30,000 civil fine for each violation, where each day the violation
continues is a separate offense. A person is not deemed to have aided or
abetted a violation, unless he or she:
1. was the owner, officer, controlling shareholder, or in a similar
position of authority over a person who is prohibited from selling
or offering cannabis and then sold or offered it in violation of
these provisions;
2. knew that the person was prohibited and still sold or offered the
sale;
3. gave substantial assistance or encouragement for the sale or offer
of sale; and
4. the person’s conduct was a substantial factor in furthering the
sale or offer of sale.
It also imposes a $10,000 civil fine for each violation by anyone who
manages or controls a commercial property, building, room, space, or
enclosure, in the person’s capacity as owner, lessee, agent, employee, or
mortgagor, who knowingly makes the commercial area available for use
in these violations. Each day a violation continues is a separate offense.
Under the bill, only the attorney general, upon the complaint of the
DCP commissioner or a municipality where the violation occurred, may
investigate these violations, assess any civil penalty, or institute a civil 2024HB-05150-R000199-BA.DOCX
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action to recover any imposed civil penalties. If a municipality institutes
a civil action to recover an imposed civil penalty, the penalty must be
paid to the municipality first to reimburse it for the costs for instituting
the action. Half of the remainder, if any, is paid to the municipality’s
treasurer and half is paid to the state treasurer for deposit into the
General Fund.
Lastly, the bill specifies that it does not prohibit criminal penalties on
anyone prohibited from selling or offering cannabis or cannabis
products who sells or offers to sell it.
§§ 13 & 22 — PRODUCT PACKAGER EXPANDED A CTIVITIES
Allows a product packager to expand its authorized activities to include the authorized
activities of a product manufacturer
The bill allows a product packager to expand its authorized activities
to include the authorized activities of a product manufacturer under
certain conditions (see § 8 above for product manufacturer abilities). In
order for this to happen the:
1. packager must submit to DCP a completed license expansion
application and a $30,000 application fee; and
2. commissioner must authorize the packager, in writing, to
perform the expanded activities of a product manufacturer.
The bill requires a product packager that expands its authorized
activities to comply with all the laws, regulations, policies, and
procedures for product manufacturers. If there is a conflict between the
packager requirements and the manufacturer requirements, the more
stringent public health and safety standard prevails.
Under the bill, the renewal fee for a product packager’s expanded
authorization is $30,000. This renewal fee is instead of the product
packager renewal fee, which is $25,000.
§§ 14-15 & 18 — TECHNICAL AND CONFORMING CHANGES
Makes various technical and conforming changes
The bill makes various technical and conforming changes. 2024HB-05150-R000199-BA.DOCX
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§ 16 — SOCIAL EQUITY CULTIVATOR LICENSEE S AND OUTDOOR
GROW FACILITY
Allows certain social equity cultivator applicants to locate an exclusively outdoor grow
facility outside a disproportionately impacted area if it is in a municipality that has one,
and prohibits DCP from granting an application for certain social equity provisional
cultivator licenses after December 31, 2025
By law, in order for a social equity applicant who applied for a
cultivator license without participating in a lottery to get a final
cultivator license, the applicant must provide evidence of certain
information, including a right to exclusively occupy a location in a
disproportionately impacted area where the cultivation facility will be
located (CGS § 21a-420o).
The bill also allows the applicant to provide evidence that an
exclusively outdoor grow facility will be located outside of a
disproportionately impacted area if the facility is in a municipality that
has any portion of a disproportionately impacted area. The outdoor
grow must be done on land the municipality has approved for
agricultural or farming uses and all cultivation must comply with all
regulations, policies, and procedures on outdoor cannabis cultivation.
Additionally, the bill prohibits DCP from granting an application for
these provisional cultivator licenses after December 31, 2025.
§ 19 — RELOCATION OF DISPENSARY OR HYBRI D RETAILER
Requires certain information be included in a dispensary facility’s or hybrid retailer’s
application to relocate their facility or retail location and, by eliminating the sunset date;
allows the DCP commissioner to deny these applications
The bill allows a dispensary facility or hybrid retailer to submit an
application to DCP, in a form the commissioner prescribes, to relocate
its current facility or retail location. The application must include, at
least:
1. the size of the qualifying patient population that the applicant
served during the six-month period before the application,
broken down by month and indicating whether the qualifying
patient population increased or decreased during that time;
2. evidence of accessible alternatives in the area around the 2024HB-05150-R000199-BA.DOCX
Researcher: DC Page 24 4/2/24
applicant, before the proposed relocation, where qualifying
patients can get medical marijuana products;
3. whether the applicant will provide delivery services to the
qualifying patients it serves before the proposed relocation and,
if so, the length of time and geographic scope of the services; and
4. a plan to communicate (a) the proposed relocation to the
qualifying patients, including the communication methods and
timeframes, and (b) with nearby dispensary facilities and hybrid
retailers on the proposed relocation and the needs of the
qualifying patients the applicant serves.
Prior law allowed the DCP commissioner to deny a dispensary
facility’s or hybrid retailer’s change of location application based on the
needs of qualifying patients until June 30, 2023. The bill eliminates this
sunset date, allowing the commissioner to deny relocations.
§§ 20 & 21 — CERTAIN MANUFACTURERS GETTI NG CANNABIS
Allows a product manufacturer and food and beverage manufacturer to get cannabis from
the places it is already allowed to sell, transfer, or transport to
Current law allows a product manufacturer and food and beverage
manufacturer to sell, transfer, or transport its own products to a
cannabis establishment, cannabis testing laboratory, or research
program using its own employees or a transporter. The bill also allows
these manufacturers to get cannabis from these places.
§ 24 — PACKAGING AND SIGNAGE
Allows edible cannabis products to be packaged for multiple servings under certain
requirements and requires DCP to establish disclosures for mold and yeast and signage for
mold and their remediation practices
Under existing law, the cannabis-related regulations that the DCP
commissioner must adopt must include specified labeling and
packaging requirements. The bill modifies a few of these requirements
and adds another.
Edible Cannabis Packaging
Current law requires packaging for edible cannabis products to be 2024HB-05150-R000199-BA.DOCX
Researcher: DC Page 25 4/2/24
individually wrapped. The bill allows these products to be packaged for
multiple servings if each single standardized serving is easily
discernable and is individually wrapped or physically demarked and
delineated.
Mold and Yeast
Existing law requires DCP to set laboratory testing standards. The bill
requires DCP to:
1. establish consumer disclosures on mold and yeast in cannabis
and allowed remediation practices and
2. prescribe signage for dispensary facilities, retailers, and hybrid
retailers to prominently display that discloses (a) possible health
risks related to mold and (b) the use and possible health risks
related to using mold remediation techniques.
§ 25 — STORING CANNABIS
Deems a location to be secure for storing cannabis if it satisfies the requirements for
securing certain controlled substances
By law, among other things, a cannabis establishment must store all
cannabis in a way to prevent diversion, theft, or loss. Under the bill, a
location is deemed to be secure if the location satisfies the state
regulations for securing controlled substances (i.e., schedule III, IV, and
V, which require storage in an approved vault, safe, or separate secure
locked area, among other requirements) (Conn. Agencies Regs., § 21a-
262-4).
§ 26 — ADVERTISING
Generally prohibits cannabis establishments from advertising or marketing a discounted
price or other promotional offer to buy cannabis
The bill prohibits cannabis establishments from advertising or
marketing that includes a discounted price or other promotional offer
as an inducement to buy cannabis or a cannabis product that is not
medical marijuana.
§ 27 — MANUFACTURER HEMP PRODUCTS
Specifies out-of-state licensees may apply for a DCP manufacturer hemp license; increases
various fines; limits manufacturer hemp THC levels and sales to establishments that only 2024HB-05150-R000199-BA.DOCX
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sell other hemp products; allows municipalities to prohibit certain businesses from
operating if found in violation of these hemp laws; makes additional actions CUTPA
violations
Out-of-State Licensees Getting Connecticut License (§ 27(a))
Existing law prohibits anyone from manufacturing hemp in
Connecticut without a DCP license. But the bill specifies that the
manufacturer hemp laws should not be construed to prohibit anyone
who is licensed in another state to manufacture, handle, store, and
market manufacturer hemp products from applying for or getting a
DCP license.
Fine Increase (§ 27(e) & (f))
The bill increases the following fines, from:
1. up to $2,500 to up to $5,000, for a manufacturer licensee who
violates the manufacturer hemp law or regulations;
2. up to $2,500 to up to $5,000, for any entity who manufactures in
the state without getting a license or does so when its license is
suspended; and
3. $250 to $10,000, for anyone who manufactures in the state
without a license or when the entity’s license is suspended or
revoked, payable by mail to the Centralized Infractions Bureau
without appearing in court.
For the first two fines, a hearing conducted under the UAPA must be
held first.
Police Training on High-THC Hemp Products (§ 27(z))
Current law required the Department of Emergency Services and
Public Protection, in consultation with DCP, to publish a training
bulletin by October 31, 2023, informing local law enforcement agencies
and officers of the investigation and enforcement standards for cannabis
and high-THC hemp products. The bill makes this an annual
requirement with the same October 31 deadline.
THC Limit (§ 27(bb) & (cc)) 2024HB-05150-R000199-BA.DOCX
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The bill limits the amount of THC a manufacturer hemp product may
have by requiring it to be lower than the high-THC hemp product
threshold. Specifically, it prohibits manufacturer hemp products from
containing a total THC concentration of (1) greater than 0.3% on a dry-
weight basis or (2) 2.5 mg of total THC on a per-container basis. It also
prohibits these products from being sold in packaging that contains
more than two containers per package.
The bill limits the amount someone under age 21 may purchase to 0.5
mg of total THC. It prohibits any individual or entity from selling to a
consumer without first verifying the consumer’s age with a valid
driver’s license or identification card.
Sales Only at Stores Selling Hemp (§ 27(dd))
The bill limits manufacturer hemp product sales to establishments
that sell only other hemp products.
Municipal Prohibition (§ 27 (ff))
Like the provisions for selling, offering, or delivering cannabis, but
adding manufacturer hemp (see § 11 above), the bill allows
municipalities to apply to Superior Court for an order to take certain
merchandise (e.g., cannabis, manufacturer hemp, cigarettes, and
associated merchandise) from a business that violates the bill’s
manufacturer hemp provisions.
Penalties (§ 27(ee) & (gg))
Manufacturer Hemp THC Limits and Hemp Establishment Sales.
Under the bill, a violation of the provisions on manufacturer hemp THC
limits and sales only at hemp establishments is (1) deemed a CUTPA
violation, which the attorney general must enforce and (2) subject to a
$30,000 civil penalty for each violation where each day the violation
continues is a separate offense.
Additionally, like those who aid and abet the illegal selling, offering,
or delivering of cannabis, anyone who aids or abets these hemp-related
violations is assessed a $30,000 civil fine for each violation, where each
day the violation continues is a separate offense (see § 11 above). 2024HB-05150-R000199-BA.DOCX
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Similarly, the bill (1) imposes a $10,000 civil fine for each violation by
those who manage or control certain commercial buildings and (2) gives
the attorney general and municipalities the same enforcement and
disciplinary powers (see § 11 above).
Private Right of Action. The bill also specifies that CUTPA’s
provisions for a private right of action, class actions, equitable relief, and
jury trials apply to the violations related to sales, packaging, labeling,
and THC amount, among other things.
Hemp Transportation (§ 27(hh))
The bill specifies that nothing in the state hemp laws should be
construed to prohibit any hemp shipment or transport through the state
if it was lawfully produced under federal law.
The federal law allowing hemp explicitly prohibits states from
prohibiting the transportation or shipment of hemp or hemp products
produced in accordance with federal law through the state (P. L. 115-
334, § 10114(b)).
§ 28 — FOOD AND BEVE RAGE MANUFACTURER TR ACKING
HEMP
Requires food and beverage manufacturers to track third-party purchases of hemp or hemp
products
As under existing law for certain cannabis establishments, the bill
requires that hemp or hemp products purchased by a food and beverage
manufacturer from a third party be tracked as a separate batch
throughout the manufacturing process. Once the manufacturer receives
the hemp or hemp product, it is deemed cannabis and the licensee must
comply with all the cannabis laws and regulations. Manufacturers must
keep a copy of the certificate of analysis for the purchased hemp or
hemp products and the invoice and transport documents that show the
quantity purchased and date received.
BACKGROUND
CUTPA
By law, CUTPA prohibits businesses from engaging in unfair and
deceptive acts or practices. It allows the DCP commissioner to issue 2024HB-05150-R000199-BA.DOCX
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regulations defining an unfair trade practice, investigate complaints,
issue cease and desist orders, order restitution in cases involving less
than $10,000, enter into consent agreements, ask the attorney general to
seek injunctive relief, and accept voluntary statements of compliance. It
also allows individuals to sue. Courts may issue restraining orders;
award actual and punitive damages, costs, and reasonable attorney’s
fees; and impose civil penalties of up to $5,000 for willful violations and
up to $25,000 for a restraining order violation.
Related Bill
sHB 5235 (File 102), favorably reported by the General Law
Committee, has a substantially similar provision specifically allowing
the transport of hemp through the state if it was lawfully produced
under federal law. It also effectively prohibits synthetic cannabinoids,
by making them Schedule I drugs.
sHB 5236 (File 103), favorably reported by the General Law
Committee, among other things, allows DCP to impose a civil penalty
of up to $5,000 for CUTPA violations, after an administrative hearing.
COMMITTEE ACTION
General Law Committee
Joint Favorable Substitute
Yea 21 Nay 1 (03/12/2024)