A medical marijuana program is currently legal in Connecticut, and we may see a booming adult-use market in the near future. Connecticut’s medical marijuana program is projected to reach nearly $200 million in 2021. As neighboring states are legalizing adult-use marijuana programs, Connecticut is hopping on the bandwagon to create and regulate an adult-use cannabis program in the state. Our cannabis consultants in Connecticut explain the current and future marijuana market. Finally, we can expect cannabis business licenses in Connecticut to be available by next year. So, if you have an interest in a cannabis business in Connecticut, make sure to contact our cannabis consultants at Quantum 9.
Adult-Use Marijuana in Connecticut
Senate Bill 888 lays out some of the rules and regulations for a potential adult-use market in Connecticut. If all goes well, recreational marijuana sales in Connecticut would begin in May 2022.
The governor of Connecticut proposed a framework for the cultivation, manufacture, sale, possession, use, and taxation of adult-use cannabis. Also, the adult-use marijuana bill prioritizes public health, public safety, and social justice.
Marijuana Business Daily predicts that an adult-use market in Connecticut could generate $250 million in sales by its first full year and $750 million in annual sales by its fourth.
Cannabis Business Licenses in Connecticut
We can expect a variety of cannabis licenses in Connecticut. This proposal establishes licenses for the following:
- Hybrid medical/adult-use retailers
- Product manufacturers
- Food and beverage manufacturers
- Product packagers
- Delivery service
Connecticut offers some unique licensing opportunities. For example, cannabis licenses for delivery services, micro-cultivators, and food and beverage have lower barriers to entry. Additionally, this promotes equity in the market, which is a major priority for Connecticut.
Also, licenses are to be rewarded by lottery and medical cannabis businesses will be able to convert to adult-use cannabis businesses with a fee. A cannabis consultant in Connecticut can guide you through these licenses so you can choose the one that best meets your needs. Find out how scoring works here.
License Fees for a Cannabis Business in Connecticut
The fees for cannabis licenses and applications vary based on what license type you apply for.
For example, a retailer/hybrid retailer fee, or product packager fee is $500 to enter the lottery.
Additionally, the fee for a provisional license is $5,000 and the fee for a final license is $25,000
The lottery fee for a cultivation license in Connecticut is $1,000.
- Provisional license fee: $25,000
- Final license fee: $75,ooo
The lottery fee for a micro-cultivator license is $250.
- Provisional license fee: $500
- Final license fee: $1,000
The lottery fee for a product manufacturer is $750.
- Provisional license fee: $5,000
- Final license fee: $25,000
Lastly, the lottery fee for a food and beverage manufacturer is $250.
- The provisional license fee is $1,000
- The final license fee is $5,000
Additionally, a provisional license expires after 14 months and is not renewable. With that, if you have a provisional license you can apply for a final license during the initial application period.
Final Licensing Requirements in Connecticut
Within the final license period, you need to include the following information within your cannabis business application in Connecticut:
- First, a contract with a seed-to-sale vendor. Talk to us about our services to help you find a seed-to-sale vendor.
- Secondly, you need a right to occupy the location where the marijuana business will be
- You also need local zoning approval from the municipality
- The application also requires that you have written policies about preventing diversion and the misuse of cannabis and sales to underage persons’
- With that, a social equity plan is also required. We explain how you can qualify for social equity in Connecticut later in this article.
- You also need to be compliant with all security requirements from the board
- Lastly, you need to have a Labor Peace Agreement between your cannabis business and a bona fide labor organization
If you have any additional questions about license fees or raising capital for a marijuana business, make sure to click on the button below to talk to our expert cannabis consultants in Connecticut.
Social Equity for Cannabis Businesses in Connecticut
Creating social equity is a priority for cannabis businesses in Connecticut. With that, the state created rules and exceptions if you have a social equity applicant within your application for a license.
First, the DCP reserves 40 percent of the maximum number of applications that are considered for eligible license types for social equity applicants.
Additionally, social equity applicants receive a 50 percent reduction of license fees.
What is a Social Equity Applicant?
A social equity applicant in Connecticut has to be at least 51 percent owned by, or under the day-to-day control of individuals who:
- Have a prior arrest or conviction for the sale, possession, use, manufacture, or cultivation of cannabis
- Have a parent, spouse, or child who has such an arrest
- Is a resident or has been a resident of a disproportionately affected community for at least five of the 10 years immediately before applying for the license
- Resides on tribal land
- Lastly, social equity applicants’ primary address has to be in Connecticut for at least 5 years
Changes to Medical Marijuana Market in Connecticut
As for the medical marijuana market in Connecticut, rules and regulations will change if adult-use sales are legal. For example, the possession limit for patients and caregivers will increase to 5 ounces. Additionally, patients can purchase from any dispensary or hybrid retailer. Also, new conditions will be added to the medical program.
As for the adult-use cannabis market in Connecticut, the rules and regulations focus on creating a safe market for the state. Additionally, the governor plans to have high-quality products and limit marketing. Also, the governor shall update the clean air act to include cannabis use.
All in all, the chance of an adult-use cannabis market in Connecticut is very likely. It is never too early to take a look at the application process. Talk to our cannabis consultants for more information about a cannabis business in Connecticut or any other state.
Lastly, we have the highest success rate in the industry and are eager to help you win a cannabis business license. Take a look at our services here.