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OLR Bill Analysis
sHB 5150 (as amended by House "A")*
AN ACT CONCERNING CANNABIS AND HEMP REGULATION.
TABLE OF CONTENTS:
SUMMARY
§§ 1, 4, 6, 23 & 26-35 — 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;
generally requires infused beverage manufacturers to be licensed; only allows certain
cannabis establishments and package stores to sell these beverages; prohibits sales to
anyone under age 21; sets various requirements for testing, signs, packages, and labels;
allows the sale of “legacy infused beverages” until September 30, 2024; imposes a $1
assessment per container; makes it a CUTPA violation to violate certain provisions
§ 1 — MARIJUANA, CANNABIS, CANNABIS-TYPE SUBSTANCES,
AND SYNTHETIC AND MA NUFACTURED CANNABINO IDS
Narrows the definition of “marijuana” and “cannabis” by removing from the definition
(1) the seeds and (2) synthetic cannabinoids; correspondingly deletes references to seeds in
the “cannabis-type substances” definition; redefines “synthetic cannabinoids” by
specifically excluding manufactured cannabinoids and redefines “manufactured
cannabinoids” to specify how they are created rather than basing the definition on their
natural structure or the effect they have
§§ 1, 31 & 32 — HIGH- AND MODERATE-THC HEMP PRODUCTS
Simplifies the THC thresholds for when a product is considered a high-THC hemp product
by imposing a uniform threshold regardless of the product type; establishes the category of
“moderate-THC hemp product” and places various requirements on sales (e.g., only to
those age 21 and above and only from cannabis establishments or places with a DCP
certificate) and requires it to meet many of the requirements for manufacturer hemp
products
§§ 2 & 3 — 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
§§ 5, 9, 11, 14 & 20 — MICRO-CULTIVATORS
Allows certain social equity cultivator applicants to apply for a micro-cultivator license;
eliminates the ability for a micro-cultivator to use its own employees to deliver cannabis;
allows micro-cultivators to sell cannabis seedlings
§§ 7 & 8 — SELLING AND DELIVERING CANNAB IS OR MEDICAL
MARIJUANA 2024HB-05150-R01-BA.DOCX
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Beginning October 1, 2024, allows municipalities to apply for a court order to take certain
merchandise from stores that violate the cannabis or medical marijuana sales and delivery
law; makes violations CUTPA violations and adds additional penalties
§ 9 — BACKER EXCEPTION
Allows an equity joint venture to share an individual owner with another equity joint
venture that meets social equity applicant criteria if the individual owner is a backer for
certain social equity cultivators
§§ 10 & 18 — PRODUCT PACKAGER EXPANDED A CTIVITIES
Allows a product packager to expand its authorized activities to include the authorized
activities of a product manufacturer
§§ 12 & 15 — TECHNICAL AND CONFORMING CHANGES
Makes various technical and conforming changes
§ 13 — SOCIAL EQUITY CULTIVATORS, STATE-RECOGNIZED
TRIBAL LAND, AND OUTDOOR CULTIVATION
Allows certain social equity cultivator applicants to locate (1) a facility on a state
recognized tribe’s reservation or land or (2) an exclusively outdoor grow facility outside a
disproportionately impacted area if it is in a municipality that has one; prohibits DCP
from granting an application for certain social equity provisional cultivator licenses after
December 31, 2025
§§ 14 & 21 — STORING CANNABIS
Deems a location to be secure for storing cannabis if it satisfies the requirements for
securing certain controlled substances
§§ 16 & 17 — 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
§ 19 — PROJECT LABOR AGREEMENT
Expands “project labor agreements” to include affiliated business entities and labor
organizations; allows the court to issue penalties for affiliated business entities for project
labor agreement violations
§ 20 — PACKAGING AND SIGNAGE
Allows edible cannabis products to be packaged for multiple servings under certain
requirements; requires DCP to establish disclosures for mold and yeast and signage for
mold and their remediation practices
§ 22 — ADVERTISING
Generally prohibits cannabis establishments from advertising or marketing a discounted
price or other promotional offer to buy cannabis; allows a discounted price or promotion
within a dispensary facility, retailer, or hybrid retailer building, or through a delivery
service to induce cannabis purchases
§ 24 — 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 2024HB-05150-R01-BA.DOCX
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§ 24 — MANUFACTURER HEMP PRODUCTS
Specifies out-of-state licensees may apply for a DCP manufacturer hemp license; increases
various fines; removes certain manufacturer hemp product violations from being CUTPA
violations; requires a police training bulletin to be done annually; specifies that hemp that
is lawfully produced under federal law may be transported or shipped through the state
§ 25 — FOOD AND BEVERAGE MANUFACTURER TR ACKING HEMP
Requires food and beverage manufacturers to track third-party purchases of hemp or hemp
products
§ 36 — CONSUMER PROTECTION ENFORCEMENT A CCOUNT
Requires the DCP commissioner to provide OAG with funds from the consumer
protection enforcement account to pay for OAG’s expenses for enforcing the law on selling
and delivering cannabis or medical marijuana
BACKGROUND
SUMMARY
This bill makes various changes to the laws on adult-use cannabis,
hemp, and medical marijuana as summarized in the section-by-section
analysis below. It also makes various other minor, technical, and
conforming changes.
*House Amendment “A” (1) removes provisions from the underlying
bill on social equity applicants partnering with hemp producers,
transporter licenses, hemp manufacturers, and dispensary or hybrid
retailer relocations; (2) adds provisions redefining certain terms (e.g.,
cannabis and marijuana), moderate THC-hemp products, and project
labor agreements; (3) makes revisions to the provisions on high-THC
thresholds and infused beverages, including requiring licensure for
manufacturers, adding legacy infused beverages and package store
endorsements, and increasing the container fee amount; and (4) makes
various minor, technical, and conforming changes.
EFFECTIVE DATE: July 1, 2024, unless otherwise stated.
§§ 1, 4, 6, 23 & 26-35 — INFUSED BEVERAG ES
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;
generally requires infused beverage manufacturers to be licensed; only allows certain
cannabis establishments and package stores to sell these beverages; prohibits sales to
anyone under age 21; sets various requirements for testing, signs, packages, and labels; 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 4 5/1/24
allows the sale of “legacy infused beverages” until September 30, 2024; imposes a $1
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 and the beverages may only be
sold at package stores or cannabis dispensary facilities, hybrid retailers
(i.e., licensed to sell both recreational cannabis and medical marijuana),
or retailers.
The bill deems any violation of the manufacturing infused beverages
provisions a Connecticut Unfair Trade Practices Act (CUTPA) violation
(see BACKGROUND). It also makes technical and conforming changes.
Infused Beverages (§ 26)
An “infused beverage” is a beverage that is not alcoholic; is intended
for human consumption; and contains or is advertised, labeled, or
offered for sale as containing, a total THC content of less than three
milligrams (mg) per container that is at least 12 fluid ounces. It is not
considered cannabis, marijuana, or a high-or moderate-THC product.
Manufacturing (§ 27)
License. Regardless of the law on manufacturing, cultivating, and
storing hemp by certain cannabis establishments, the bill generally
requires, on and after October 1, 2024, anyone who manufactures any
infused beverage intended to be sold or offered for sale in Connecticut
to have a Department of Consumer Protection (DCP) license.
A person seeking an infused beverage manufacturer license must
submit to DCP, in a commissioner-prescribed way, an application with
a $5,000 application fee. Each license is valid for one year and must be
renewed annually upon submitting a renewal application with a $5,000
renewal fee. All fees are deposited in the consumer protection
enforcement account. Under existing law, money from this account
must be used to fund positions and other related expenses for enforcing
DCP licensing and registration laws (also see § 36, below).
Exemption. Under the bill, certain cannabis establishments may, 2024HB-05150-R01-BA.DOCX
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beginning October 1, 2024, manufacture infused beverages intended to
be sold or offered for sale in the state with DCP approval. To do so, a
cultivator, micro-cultivator, food and beverage manufacturer, product
manufacturer, or a producer with expanded authorization must submit
a written request to DCP for the department’s approval.
The cannabis establishments that receive DCP approval are subject to
all of the bill’s infused beverage provisions and all regulations and
policies and procedures adopted that are applicable to infused beverage
manufacturers, except they are not subject to the license requirement.
Hemp. The bill requires, beginning October 1, 2024, infused beverage
manufacturers to obtain hemp oil under certain conditions for the
purpose of manufacturing infused beverages. The hemp oil must:
1. be derived from hemp;
2. have been extracted from hemp grown by certain individuals (see
below); and
3. have been extracted from hemp by using a (a) Class 3 residual
solvent within the meaning of the most recent United States
Pharmacopeia, (b) solvent generally recognized as safe under the
federal Food, Drug and Cosmetic Act, or (c) DCP-approved
solvent that is posted on the department’s website.
The hemp oil must have been:
1. extracted from hemp grown by a (a) hemp producer, as
evidenced by a producer-issued certificate of authenticity or (b)
licensed hemp grower regulated by a state, territory, or federally
recognized Indian tribe, and in accordance with a state or tribal
plan the U.S. Department of Agriculture (USDA) approved, as
evidenced by a grower-issued certificate of authenticity; or
2. extracted (a) by a person who is actively credentialed by a state
or federally recognized Indian tribe to extract hemp and (b) in a
facility that a state or federally recognized Indian tribe
credentials. 2024HB-05150-R01-BA.DOCX
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Prohibitions and Requirements. Beginning October 1, 2024, the bill
sets certain prohibitions and requirements for manufacturing infused
beverages as described below.
Prohibitions. The bill prohibits infused beverages sold or offered to
be sold in the state:
1. from including any additive that is psychotropic, or could
increase the infused beverage’s potency, toxicity, or addictive
properties, including caffeine other than those naturally
occurring in chocolate, or total THC that exceeds three mgs per
container;
2. unless they meet (a) the laboratory testing standards for cannabis
under the state’s cannabis law and the regulations and policies
and procedures adopted under that law or (b) other DCP-
approved testing standards that are also posted on the
department’s website; and
3. from being packaged, labeled, or advertised in any way that is
likely to mislead an individual by incorporating any statement,
brand, design, representation, picture, illustration, or other
depiction that (a) bears a reasonable resemblance to trademarked
or characteristic packaging of cannabis offered for sale in the state
by a cannabis establishment, or on tribal land by a tribal-
credentialed cannabis entity, or a commercially available product
other than a cannabis product; or (b) appeals to individuals who
are under age 21, by, among other things, making use of any
spokesperson or celebrity who appeals to these individuals;
depicting any individual who is under age 25 consuming
cannabis or an infused beverage; including any object, such as a
toy, character, or cartoon character, which suggests the presence
of anyone under age 21; or making use of any other method that
is designed to appeal to anyone under age 21.
Manufacturer Requirements. The bill requires each infused
beverage manufacturer that manufactures any infused beverage
intended to be sold or offered for sale in the state to: 2024HB-05150-R01-BA.DOCX
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1. only manufacture beverages with total THC that does not exceed
three mgs per container;
2. manufacture beverages using equipment that is exclusively used
to manufacture a beverage or prepared in accordance with good
manufacturing practices set under federal law (21 C.F.R. Parts
110 and 111); and
3. ensure that all hemp oil the manufacturer possesses for
manufacturing beverages is (a) stored in a secure, locked location
separate from any cannabis, and (b) clearly and conspicuously
labeled as hemp oil solely for use in manufacturing infused
beverages, and (c) solely used for the purpose of manufacturing
infused beverages.
Testing. The bill also requires each lot of an infused beverage in its
final form to be tested by a cannabis testing laboratory. A statistically
significant number of samples must be collected from the lot and
submitted for final product testing in a DCP-approved manner. The
sampling and final product testing must be conducted by using a
representative sample of the lot and by collecting a minimum number
of sample increments relative to the lot size.
Symbols. Under the bill, each infused beverage container sold or
offered for sale in Connecticut must prominently display a symbol, in a
size of at least one-half inch by one-half inch and be in a DCP-approved
format, that indicates the beverage is not legal or safe for anyone who is
under age 21.
Sales. The bill requires infused beverage manufacturers to only sell
infused beverages to a dispensary facility, hybrid retailer, retailer, or
wholesale permittee or wholesale permittee for beer.
Verification. For infused beverages manufactured in and regulated
by another state, and by a person who is regulated as a food or
nonalcoholic beverage manufacturer, the bill requires certain
verifications before the beverages may be sold. 2024HB-05150-R01-BA.DOCX
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Before the specified cannabis establishments sell to a consumer or a
wholesaler sells to a package store, they must, based on a representative
sample of the infused beverage containers included in the shipment, (1)
verify that the included beverages satisfy the packaging, labeling, and
advertising requirements above, and (2) for the purposes of preserving
public health and safety, verify that the beverages in the shipment were
manufactured with the requirements that are substantially similar to the
bill’s infused beverage prohibitions and manufacturing, testing, and
symbol requirements. In addition to making sure these requirements
follow the bill’s provisions, they must also satisfy any implementing
DCP regulations or policies or procedures.
Gift Prohibition. The bill also prohibits cannabis establishments or
infused beverage manufacturers, or their agents or employees, from
gifting or transferring any infused beverage to a consumer for free as
part of a commercial transaction.
Documentation. The bill allows the DCP commissioner to request
that an infused beverage manufacturer submit to DCP, in a way he
prescribes, documentation sufficient to demonstrate the manufacturer
is in compliance with the bill’s provisions. The manufacturer must
promptly provide the requested documentation.
Investigations and Enforcement. The bill subjects each infused
beverage manufacturer to investigation and enforcement provisions of
cannabis establishment licenses. By law, the DCP commissioner, for
sufficient cause, may take certain disciplinary actions, including
suspending or revoking a credential or issuing fines of up to $25,000 per
violation, and accepting an offer in compromise (CGS § 21a-421p).
Federal Conflict Report. Under the bill, if the DCP commissioner
determines, after consulting the attorney general, that the federal
Agricultural Improvement Act of 2018 has been amended in a way that
conflicts with these provisions, the commissioner must prepare and
submit a report, in coordination with the attorney general, to the
General Law Committee.
The report must at least set the scope of the conflict and 2024HB-05150-R01-BA.DOCX
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recommendations for a resolution. The commissioner must submit the
report (1) within 30 days after the USDA announces the amendment, if
the General Assembly is in session, or (2) within 60 days after the
announcement, if the General Assembly is not in session.
Regulations, Policies, and Procedures. The bill allows the DCP
commissioner to adopt regulations to implement these provisions.
Before adopting the required regulations, the commissioner must issue
policies and procedures to implement the bill’s provisions. These
policies and procedures have the force and effect of law.
At least 15 days before the policies and procedures take effect, the bill
requires the commissioner to post them on DCP’s website and submit
them to the secretary of the state (SOTS) to be posted on the
eRegulations system. A policy or procedure is no longer effective once
SOTS codifies the final regulation or, if the regulations have not been
submitted to the Regulation Review Committee, July 1, 2028, whichever
occurs earlier.
Penalties. Under the bill, following a hearing conducted under the
Uniform Administrative Procedure Act (UAPA), the DCP commissioner
may impose an administrative civil penalty of up to $5,000 per violation,
and suspend, revoke, or place conditions on any infused beverage
manufacturer that violates any of these provisions or any implementing
regulation. All administrative civil penalties must be deposited in the
consumer protection enforcement account.
The commissioner may also summarily suspend, in accordance with
the UAPA, any DCP credential that he has issued to a person who
violates this provision.
Under the bill, beginning July 1, 2024, anyone who violates these
infused beverage provisions is deemed to have violated CUTPA.
Retail Sales (§ 28)
Age Requirement. Beginning July 1, 2024, the bill prohibits infused
beverages from being sold or offered for sale to anyone under age 21. It
does so by prohibiting a package store owner, agent, or employee; 2024HB-05150-R01-BA.DOCX
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dispensary facility, hybrid retailer, or retailer from selling these
beverages without first verifying the individual’s age with a valid
driver’s license or identification card.
Sales and Sign Requirements. Under the bill, beginning October 1,
2024, an infused beverage may only be sold and distributed if it is sold
at a (1) package store that buys from a wholesaler, or (2) 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 and
2. being distributed or sold without certain packaging and labeling
(e.g., scannable bar code and product expiration or best-by date
if applicable).
Indirect Sales. Beginning July 1, 2024, the bill prohibits infused
beverages from being sold, or offered for sale, at retail to anyone in the
state by any indirect means, including by mail, telephone, or other
electronic means.
Packaging and Labeling Requirements. Beginning October 1, 2024,
the bill prohibits anyone from selling, or offering for sale, these
beverages in any container containing less than 12 fluid ounces or in
packages that have more than four containers.
Penalty. Under the bill, anyone who violates these infused beverage
provisions is deemed to have violated CUTPA.
Legacy Infused Beverages (§ 30)
The bill allows a dispensary facility, hybrid retailer, retailer, or 2024HB-05150-R01-BA.DOCX
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package store to sell legacy infused beverages until September 30, 2024,
after receiving a DCP waiver. A “legacy infused beverage” is a beverage
that (1) is not an alcoholic beverage, (2) is intended for human
consumption, and (3) contains or is advertised, labeled, or offered for
sale as containing, THC. The beverage must also, as of June 30, 2024,
comply with the Responsible and Equitable Regulation of Adult-Use
Cannabis Act (RERACA) and the corresponding DCP policies and
procedures and regulations.
Until June 30, 2024, the bill allows these cannabis establishments and
package store permittees to submit to DCP, on a commissioner-
prescribed form, a waiver application to sell the legacy infused
beverages they possess, including their inventory, until September 30,
2024.
A DCP waiver allows these cannabis establishments and package
stores to sell legacy infused beverages they possess when the bill passes,
as long as all sales are to individuals age 21 or older and in compliance
with all applicable provisions of RERACA and implementing
regulations and policies and procedures.
EFFECTIVE DATE: Upon passage
Inventory (§ 29)
The bill requires, beginning May 15, 2024, businesses, other than the
specified cannabis establishments above and package stores, to take
certain actions before they are able to sell any infused or legacy infused
beverages. They must, (1) by May 14, 2024, take inventory of the
containers they own and possess, and (2) by June 15, 2024, submit to
DCP, in a way the commissioner prescribes, a report with the inventory
results and a fee of $1 per container in the inventory.
Under the bill, a “business” means any individual or sole
proprietorship, partnership, firm, corporation, trust, limited liability
company, limited liability partnership, joint stock company, joint
venture, association, or other legal entity through which business for
profit or not-for-profit is conducted. 2024HB-05150-R01-BA.DOCX
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If a business does not submit the report and pay the fee by June 15,
2024, the commissioner must:
1. make a good faith estimate, based on the information available to
him, of the number of containers that the business owned and
possessed on May 14, 2024; and
2. invoice the business $1 per container based on the estimate.
All fees DCP receives from these inventories must be deposited into
the consumer protection enforcement account.
Additionally, the DCP commissioner may, subject to the UAPA,
revoke, place conditions on, or suspend any certificate, license, permit,
registration, or other credential DCP has issued to any business that fails
to submit the report and pay the fee before June 15, 2024.
EFFECTIVE DATE: Upon passage
Package Store Endorsement (§ 33)
The bill requires a package store permittee to annually pay DCP $500
for an infused beverage endorsement, which the department must
deposit in the consumer protection enforcement account.
Container Assessment (§§ 6 & 35)
The bill requires a $1 assessment on every infused and legacy 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 2024HB-05150-R01-BA.DOCX
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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.
§ 1 — MARIJUANA, CANNABIS, CANNABIS-TYPE SUBSTANCES,
AND SYNTHETIC AND MA NUFACTURED CANNABINO IDS
Narrows the definition of “marijuana” and “cannabis” by removing from the definition
(1) the seeds and (2) synthetic cannabinoids; correspondingly deletes references to seeds in
the “cannabis-type substances” definition; redefines “synthetic cannabinoids” by
specifically excluding manufactured cannabinoids and redefines “manufactured
cannabinoids” to specify how they are created rather than basing the definition on their
natural structure or the effect they have
Marijuana, Cannabis, and Cannabis-Type Substances
The bill narrows the statutory definition of “marijuana” and
“cannabis” by removing from the definition (1) the seeds and (2)
synthetic cannabinoids, including in the exemptions.
Under current law, the terms “marijuana” and “cannabis” have the
same meaning, which is all parts of a plant or species of the genus
cannabis, whether growing or not, and including its seeds and resin; its
compounds, manufactures, salts, derivatives, mixtures, and
preparations; high-THC hemp products, manufactured cannabinoids,
and certain synthetic cannabinoids, except those not included below; or
cannabinon, cannabinol, cannabidiol (CBD), and similar compounds
unless derived from hemp, except CBD derived from hemp.
Marijuana and cannabis do not include the following:
1. a plant’s mature stalks; fiber made from the stalks; oil or cake
made from the seeds; a compound, manufacture, salt, derivative,
mixture, or preparation made from the stalks, except the
extracted resin;
2. sterilized seeds incapable of germination;
3. hemp with a total THC concentration of up to 0.3% on a dry-
weight basis that is not a high-THC product;
4. any substance the federal Food and Drug Administration
approves as a drug and that is reclassified in any controlled 2024HB-05150-R01-BA.DOCX
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substance schedule, or that the federal Drug Enforcement
Administration unschedules; or
5. synthetic cannabinoids that the DCP commissioner designates as
controlled substances and classifies in the appropriate schedule
through regulations.
The bill also makes conforming changes to the “cannabis-type
substances” definition by correspondingly deleting references to seeds.
Synthetic Cannabinoids
The bill redefines “synthetic cannabinoid” to mean any substance
converted by a chemical process to create a cannabinoid or cannabinoid-
like substance that has (1) structural features that allow interaction with
at least one of the known cannabinoid-specific receptors and (2) any
physiological or psychotropic response on at least one cannabinoid
specific receptor. It includes hexahydrocannabinol (HHC and HXC) and
hydrox4phc (PHC) but does not include manufactured cannabinoids,
(see below).
Under current law, “synthetic cannabinoid” means any material,
compound, mixture, or preparation containing any quantity of a
substance having a psychotropic response primarily by agonist activity
at cannabinoid-specific receptors affecting the central nervous system
that is produced artificially and not derived from an organic source that
naturally contains cannabinoids, unless listed in another controlled
substance schedule.
Manufactured Cannabinoids
The bill redefines “manufactured cannabinoids” to specify how they
are created rather than basing the definition on their natural structure
or the effect they have.
Under the bill, “manufactured cannabinoids” mean cannabinoids
created by converting one cannabinoid directly to a different
cannabinoid through (1) the application of light or heat, (2)
decarboxylation of naturally occurring acidic forms of cannabinoids, or
(3) an alternate extraction or conversion process that DCP approves and 2024HB-05150-R01-BA.DOCX
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publishes on its website.
Under current law, manufactured cannabinoids are cannabinoids
naturally occurring from a source other than marijuana that are similar
in chemical structure or physiological effect to marijuana-derived
cannabinoids, but that are derived by a chemical or biological process.
§§ 1, 31 & 32 — HIGH- AND MODERATE -THC HEMP PRODUCTS
Simplifies the THC thresholds for when a product is considered a high-THC hemp product
by imposing a uniform threshold regardless of the product type; establishes the category of
“moderate-THC hemp product” and places various requirements on sales (e.g., only to
those age 21 and above and only from cannabis establishments or places with a DCP
certificate) and requires it to meet many of the requirements for manufacturer hemp
products
High-THC Hemp Products (§ 1)
Beginning October 1, 2024, the bill simplifies the THC threshold for
when a product is 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 does so by imposing a
uniform THC threshold of one mg per-serving, with up to five mgs per-
container, 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 mgs 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 mgs on a per-serving basis or (b) 25
mgs 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 mgs on a per-container
basis; or 2024HB-05150-R01-BA.DOCX
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4. for a manufacturer hemp product not described above: (a) one
mg on a per-serving basis, (b) five mgs on a per-container basis,
or (c) 0.3% on a dry-weight basis for cannabis flower or cannabis
trim.
Moderate-THC Hemp Product (§§ 31 & 32)
The bill establishes the category of “moderate-THC hemp product”
and places various restrictions on sales (e.g., only sold to those age 21
and over).
Beginning January 1, 2025, the bill only allows moderate-THC hemp
products to be sold at a cannabis establishment or by a person who holds
a DCP certificate of registration. A “moderate-THC hemp product”
means a manufacturer hemp product, that has total THC of between
one-half mg and five mgs, on a per-container basis.
Certificate of Registration. A person seeking a certificate of
registration as a moderate-THC hemp product vendor must submit to
DCP, in a form and manner the commissioner prescribes, an application
with a $2,000 non-refundable application fee. At a minimum, the
application must disclose the place the person sells the moderate-THC
hemp product and enough information for the DCP commissioner to
determine if (1) in the preceding year, if at least 85% of the average
monthly gross revenue generated at the existing location was from retail
sales of moderate-THC hemp products to consumers or (2) it is
reasonably likely that at least 85% of the average monthly gross revenue
at the proposed location will be from retail sales of moderate-THC hemp
products to consumers.
The bill generally prohibits the commissioner from issuing the
certificate unless he has determined that the applicant satisfies, or is
reasonably likely to satisfy, the minimum sales threshold. However, the
bill does not require a vendor to (1) meet the minimum sales threshold
if it manufactures the products at its registered retail location or (2)
disclose the information. The commissioner may issue a certificate to
vendors that satisfy this criterion even if they do not satisfy the
minimum sales threshold. 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 17 5/1/24
Under the bill, the certificate must be renewed annually. Each vendor
seeking renewal must submit a renewal application with a $2,000
nonrefundable renewal application fee and the same sales information
as required for the initial certificate. Except for certain vendors who are
also manufacturers, DCP must only renew the certificate if the vendor
meets the same minimum sales threshold.
DCP must deposit these fees into the consumer protectio n
enforcement account.
Prohibitions. The bill prohibits:
1. anyone from acting as or representing himself or herself as a
vendor, unless the person actively holds a DCP certificate of
registration;
2. anyone selling these products that are intended for human
ingestion in packaging that includes more than two containers;
3. cannabis establishments or vendors, or their agents or
employees, from gifting or transferring any product for free to a
consumer as part of a commercial transaction; and
4. cannabis establishments or vendors, or their agents or
employees, from selling moderate-THC hemp products to
anyone under age 21. (Before selling these products, they must
first verify the individual’s age with a valid government-issued
driver’s license or identity card to establish the person is age 21
or older.)
Standards, Testing, and Labeling. The bill requires all moderate-
THC hemp products to meet the same standards, testing, and container
labeling as THC-infused beverages (see above).
Investigations and Enforcement. Like infused beverage
manufacturers, the bill subjects each moderate-THC hemp product
vendor to the investigation and enforcement provisions of cannabis
establishment licenses. 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 18 5/1/24
Hearing and Penalty. After a hearing under the UAPA, the DCP
commissioner may impose an administrative civil penalty of up to
$5,000 per violation, and suspend, revoke, or place conditions on a
vendor that violates the bill’s provisions or any related adopted
regulation. Any administrative civil penalty collected must be deposited
in the consumer protection enforcement account.
Regulations. The bill requires the DCP commissioner to adopt
regulations to implement these provisions. Before adopting the
regulations and in order to implement these provisions, he may issue
policies and procedures that have the force and effect of law. At least 15
days before the policies and procedures take effect, the bill requires the
commissioner to post them on DCP’s website and submit them to the
secretary of the state (SOTS) to be posted on the eRegulations system. A
policy or procedure is no longer effective once the final regulation is
adopted or, if the regulations have not been submitted to the Regulation
Review Committee, after July 1, 2028, whichever occurs earlier.
Food, Drug and Cosmetic Act. The bill adds unauthorized sales of
moderate-THC hemp products as a prohibited act under the state
Uniform Food, Drug and Cosmetic Act. Under the Food, Drug, and
Cosmetic Act, first violations are generally punishable by up to six
months in prison, a fine of up to $500, or both. A subsequent violation
is punishable by up to one year in prison, a fine of up to $1,000, or both
(CGS § 21a-95).
EFFECTIVE DATE: January 1, 2025, for the moderate THC-hemp
product provisions.
§§ 2 & 3 — 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
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, 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 19 5/1/24
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 Association of Official Analytical
Collaboration International, or a comparable national or
international standards organization 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
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 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 20 5/1/24
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 requires the maximum quantity and number of marijuana
samples to be sufficient to ensure representative sampling of the
corresponding batch size.
§§ 5, 9, 11, 14 & 20 — MICRO-CULTIVATORS
Allows certain social equity cultivator applicants to apply for a micro-cultivator license;
eliminates the ability for a micro-cultivator to use its own employees to deliver cannabis;
allows micro-cultivators to sell cannabis seedlings
Social Equity Applicants (§§ 5 & 11)
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 allows these social equity applicants to apply for a new
micro-cultivator license without any partners.
Application. Under the bill, between July 1, 2024, and March 31, 2025,
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
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 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 21 5/1/24
4. the applicant submits an application to DCP with a written
statement withdrawing the cultivation application.
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. Between July 1, 2024, and December 31, 2025,
DCP must issue a provisional micro-cultivator license to a social equity
applicant if he or she:
1. meets eligibility criteria and submits a timely, completed
application and other documentation required to determine
eligibility under the social equity applicant process;
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.
These application fees must be deposited into the consumer
protection enforcement account.
Changes to Social Equity Status. Under the bill, 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-
cultivators). These fees must be paid to the state treasurer to be credited
to the General Fund. 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 22 5/1/24
Equity Joint Venture. The bill prohibits social equity applicants that
receive a micro-cultivator license from being eligible to apply for a
provisional and final license to create more than one equity joint venture
that the council approves. It also prohibits these applicants from
operating the equity joint venture unless the applicant has received the
new license, started cultivation activities, and submitted to DCP both
the application fee and a conversion fee, which are both $500,000. The
conversion fee 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 costs for regulating
cannabis (CGS § 21a-420f).
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.
Delivery Service (§ 14)
The bill eliminates the ability for a micro-cultivator to use its own
employees to deliver cannabis. Under current law, a micro-cultivator
may sell its own cannabis to consumers either through a delivery service
or using its own employees.
Seedlings (§§ 14 & 20)
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 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 23 5/1/24
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;
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.
§§ 7 & 8 — SELLING AND DELIVERING CANNAB IS OR MEDICAL
MARIJUANA 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 24 5/1/24
Beginning October 1, 2024, allows municipalities to apply for a court order to take certain
merchandise from stores that violate the cannabis or medical marijuana sales and delivery
law; makes violations CUTPA violations and adds additional penalties
Municipal Prohibition
By law, only certain specified cannabis establishments may sell or
deliver adult-use cannabis to consumers and medical marijuana to
patients or caregivers.
Beginning October 1, 2024, 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
(2) cigarette or tobacco product alongside any cannabis or cannabis
product.
Penalties
Beginning October 1, 2024, under the bill, a violation of the law on
selling, offering, or delivering cannabis is deemed a CUTPA violation. 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 25 5/1/24
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
assess any civil penalty or institute a civil 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 does so.
EFFECTIVE DATE: October 1, 2024, for the municipal prohibition 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 26 5/1/24
and penalties provision.
§ 9 — BACKER EXCEPTION
Allows an equity joint venture to share an individual owner with another equity joint
venture that meets social equity applicant criteria if the individual owner is a backer for
certain social equity cultivators
Under current law, the Social Equity Council is prohibited from
approving an equity joint venture applicant that shares any individual
owner with another equity joint venture that meets the social equity
applicant criteria. The bill makes an exception for an individual owner
in their capacity as a backer for certain social equity cultivators.
§§ 10 & 18 — 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. 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 $25,000. This renewal fee is instead of the product
packager renewal fee, which is $25,000.
§§ 12 & 15 — TECHNICAL AND CONFORMING CH ANGES
Makes various technical and conforming changes
The bill makes various technical and conforming changes. 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 27 5/1/24
§ 13 — SOCIAL EQUITY CULTIVATORS, STATE -RECOGNIZED
TRIBAL LAND, AND OUTDOOR CULTIVATION
Allows certain social equity cultivator applicants to locate (1) a facility on a state
recognized tribe’s reservation or land or (2) an exclusively outdoor grow facility outside a
disproportionately impacted area if it is in a municipality that has one; 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 these applicants to provide evidence that they
will locate (1) a facility on state-recognized tribal land or (2) an
exclusively outdoor grow facility outside a disproportionately impacted
area if it is in a municipality that has one.
State Tribal Land
Under the bill, the facility may be located on any reservation of the
Schaghticoke, Paucatuck Eastern Pequot, or Golden Hill Paugussett
tribes that includes at least 10 acres of contiguous land that was part of
the reservation on July 1, 2024, or (2) on any land any state-recognized
tribe owns in fee simple if the parcel is at least 10 acres of 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 the 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).
Outdoor Cultivation 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 28 5/1/24
Under the bill, an exclusively outdoor grow facility may 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.
Provisional Cultivator License Prohibition
Additionally, the bill prohibits DCP from granting an application for
provisional cultivator licenses after December 31, 2025.
§§ 14 & 21 — 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).
§§ 16 & 17 — 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.
§ 19 — PROJECT LABOR AGREEMENT
Expands “project labor agreements” to include affiliated business entities and labor
organizations; allows the court to issue penalties for affiliated business entities for project
labor agreement violations
Existing law requires certain construction and renovation projects for
the operation of a cannabis establishment to be subject to a project labor
agreement. Under current law, a project labor agreement is an 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 29 5/1/24
agreement between a subcontractor or contractor and a cannabis
establishment that binds them to certain conditions. The bill expands
the agreement to include affiliate businesses and labor organizations.
Under the bill, an agreement is a prehire collective bargaining
agreement that is entered into by and between:
1. a cannabis establishment or affiliate business entity (i.e., one that
directly, or indirectly through intermediaries, is controlled by, or
is under control with, a cannabis establishment);
2. one or more contractors or subcontractors; and
3. one or more labor organizations (i.e., exists for the purpose of
collective bargaining or dealing with employers concerning
grievances, employment terms or conditions, or other mutual aid
or protection, but does not include a company union).
Under the bill, the plan must also establish the terms and conditions
of employment in connection with performance of a covered project
(i.e., constructing or renovating a facility to operate a cannabis
establishment, that is at least $5 million, and performed by or on behalf
of a cannabis establishment, or an affiliated business entity).
Under current law, an agreement binds all project contractors and
subcontractors by making specifications in all relevant solicitation
provisions and contract documents. The bill instead binds each affiliated
entity, contractor, and subcontractor to follow the collective bargaining
agreement terms by making specifications in all relevant solicitation
provisions and contract documents concerning performance of the
covered project.
Additionally, under current law, an agreement must establish
uniform employment terms and conditions for all construction labor
employed on the projects. The bill instead specifies the terms and
conditions to apply to construction labor employed in connection with
performance of the covered project.
The bill also makes various minor, technical, and conforming 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 30 5/1/24
changes.
Employee Organization and Labor Organization
Under current law, an employee organization may enforce the project
labor agreement provisions or seek remedies for noncompliance. The
bill instead allows a labor organization to take these actions.
Under current law, an “employee organization” is any lawful
association, labor organization, federation, or council with a primary
purpose of improving wages, hours, and other conditions of
employment for cannabis establishments’ employees.
Civil Actions
The bill allows a civil action to be brought in the Superior Court
where the covered project is to be performed. Under current law, these
actions may only be brought where the project is located.
Current law allows the court, after holding a hearing, to order
penalties of up to $10,000 per day for each project labor agreement
violation by the cannabis establishment. The bill extends this to an
affiliated business entity.
Like under current law for a cannabis establishment, an affiliate
business entity’s failure to comply with the project labor agreement
provisions must not be the basis for any administrative action by DCP.
§ 20 — PACKAGING AND SIGNAGE
Allows edible cannabis products to be packaged for multiple servings under certain
requirements; 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
individually wrapped. The bill allows these products to be packaged for 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 31 5/1/24
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.
§ 22 — ADVERTISING
Generally prohibits cannabis establishments from advertising or marketing a discounted
price or other promotional offer to buy cannabis; allows a discounted price or promotion
within a dispensary facility, retailer, or hybrid retailer building, or through a delivery
service to induce cannabis purchases
The bill generally 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. However, it allows a discounted price or
promotional offering, as an inducement to purchase cannabis, (1) within
a dispensary facility, retailer, hybrid retailer building; (2) through a
delivery service; or (3) on the dispensary facility, retailer, or hybrid
retailer’s website where cannabis or cannabis products may be lawfully
ordered.
§ 24 — SUMMARILY SUSPENDING CERTAIN CRED ENTIALS
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 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 32 5/1/24
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 UAPA procedures for matters involving licenses.
§ 24 — MANUFACTURER HEMP PRODUCT S
Specifies out-of-state licensees may apply for a DCP manufacturer hemp license; increases
various fines; removes certain manufacturer hemp product violations from being CUTPA
violations; requires a police training bulletin to be done annually; specifies that hemp that
is lawfully produced under federal law may be transported or shipped through the state
Out-of-State Licensees Getting Connecticut License
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
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.
CUTPA 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 33 5/1/24
The bill removes certain manufacturer hemp product violations as
CUTPA violations, which they are under current law. These include
provisions allowing certain types of sales without a license, prohibiting
synthetic cannabinoids, and requiring certain packaging and labeling
for different manufacturer hemp products.
Police Training Bulletin on High-THC Hemp Products
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.
Hemp Transportation
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)).
§ 25 — FOOD AND BEVERAGE MANUFACTURER TRACKI NG
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. 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 34 5/1/24
§ 36 — CONSUMER PROT ECTION ENFORCEMENT ACCOUNT
Requires the DCP commissioner to provide OAG with funds from the consumer
protection enforcement account to pay for OAG’s expenses for enforcing the law on selling
and delivering cannabis or medical marijuana
The bill requires the DCP commissioner, upon the attorney general’s
request, to execute an agreement with the attorney general to provide
the Office of the Attorney General (OAG) with funds from the consumer
protection enforcement account as the commissioner and attorney
general agree OAG needs to pay for personal services and other
enforcement expenses incurred by the office in enforcing the law on
selling and delivering cannabis or medical marijuana (CGS § 21a-420c).
BACKGROUND
CUTPA
By law, CUTPA prohibits businesses from engaging in unfair and
deceptive acts or practices. It allows the DCP commissioner to issue
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 Bills
sHB 5235, as amended by House “A,” has substantially similar
provisions (1) redefining “cannabis,” “marijuana,” “synthetic
cannabinoids,” and “manufactured cannabinoids”; (2) allowing
multiple-serving edibles; and (3) specifically allowing the transport of
hemp through the state if it was lawfully produced under federal law.
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 2024HB-05150-R01-BA.DOCX
Researcher: DC Page 35 5/1/24
General Law Committee
Joint Favorable Substitute
Yea 21 Nay 1 (03/12/2024)
Finance, Revenue and Bonding Committee
Joint Favorable
Yea 32 Nay 15 (04/29/2024)