Chapter 420h

(1) “Responsible and Equitable Regulation of Adult-Use Cannabis Act” or “RERACA” means this section, sections 2-56j, 7-294kk, 7-294ll, 12-330ll to 12-330nn, inclusive, 14-227p, 21a-278b, 21a-278c, 21a-279c, 21a-279d, 21a-420a to 21a-420j, inclusive, 21a-420l to 21a-421r, inclusive, 21a-421aa to 21a-421ff, inclusive, 21a-421aaa to 21a-421hhh, inclusive, 21a-422 to 21a-422c, inclusive, 21a-422e to 21a-422g, inclusive, 21a-422j to 21a-422s, inclusive, 22-61n, 23-4b, 47a-9a, 53-247a, 53a-213a, 53a-213b, 54-33p, 54-56q, 54-56r, 54-125k and 54-142u, sections 23, 60, 63 to 65, inclusive, 124, 144 and 165 of public act 21-1 of the June special session*, and the amendments in public act 21-1 of the June special session to sections 7-148, 10-221, 12-30a, 12-35b, 12-412, 12-650, 12-704d, 14-44k, 14-111e, 14-227a to 14-227c, inclusive, 14-227j, 15-140q, 15-140r, 18-100h, 19a-342, 19a-342a, 21a-267, 21a-277, 21a-279, 21a-279a, 21a-408 to 21a-408f, inclusive, 21a-408h to 21a-408p, inclusive, 21a-408r to 21a-408v, inclusive, 30-89a, 31-40q, 32-39, 46b-120, 51-164n, 53-394, 53a-39c, 54-1m, 54-33g, 54-41b, 54-56e, 54-56g, 54-56i, 54-56k, 54-56n, 54-63d, 54-66a and 54-142e and section 20 of public act 23-79*;

(2) “Backer” means any individual with a direct or indirect financial interest in a cannabis establishment. “Backer” does not include an individual with an investment interest in a cannabis establishment if (A) the interest held by such individual and such individual's spouse, parent or child, in the aggregate, does not exceed five per cent of the total ownership or interest rights in such cannabis establishment, and (B) such individual does not participate directly or indirectly in the control, management or operation of the cannabis establishment;

(3) “Cannabis” means marijuana, as defined in section 21a-240;

(4) “Cannabis establishment” means a producer, dispensary facility, cultivator, micro-cultivator, retailer, hybrid retailer, food and beverage manufacturer, product manufacturer, product packager, delivery service or transporter;

(5) “Cannabis flower” means the flower, including abnormal and immature flowers, of a plant of the genus cannabis that has been harvested, dried, cured, chopped or ground, and prior to any processing whereby the flower material is transformed into a cannabis product. “Cannabis flower” does not include (A) the leaves or stem of such plant, or (B) hemp, as defined in section 22-61l;

(6) “Cannabis testing laboratory” means a laboratory that (A) is located in this state, (B) is licensed by the department to analyze cannabis, and (C) meets the licensure requirements established in section 21a-408r and the regulations adopted pursuant to subsection (d) of section 21a-408r;

(7) “Cannabis testing laboratory employee” means an individual who is (A) employed at a cannabis testing laboratory, and (B) registered pursuant to section 21a-408r and the regulations adopted pursuant to subsection (d) of section 21a-408r;

(8) “Cannabis trim” means all parts, including abnormal or immature parts, of a plant of the genus cannabis, other than cannabis flower, that have been harvested, dried and cured, and prior to any processing, excluding chopping or grinding, whereby the plant material is transformed into a cannabis product. “Cannabis trim” does not include hemp, as defined in section 22-61l;

(9) “Cannabis product” means cannabis, intended for use or consumption, that is in the form of (A) a cannabis concentrate, or (B) a product that contains cannabis and at least one other cannabis or noncannabis ingredient or component, excluding cannabis flower;

(10) “Cannabis concentrate” means any form of concentration, including, but not limited to, extracts, oils, tinctures, shatter and waxes, that is extracted from cannabis;

(11) “Cannabis-type substances” have the same meaning as “marijuana”, as defined in section 21a-240;

(12) “Commissioner” means the Commissioner of Consumer Protection and includes any designee of the commissioner;

(13) “Consumer” means an individual who is twenty-one years of age or older;

(14) “Control” means the power to direct, or cause the direction of, the management and policies of a cannabis establishment, regardless of whether such power is possessed directly or indirectly;

(15) “Cultivation” has the same meaning as provided in section 21a-408;

(16) “Cultivator” means a person that is licensed to engage in the cultivation, growing and propagation of the cannabis plant at an establishment with not less than fifteen thousand square feet of grow space;

(17) “Delivery service” means a person that is licensed to deliver cannabis from (A) micro-cultivators, retailers and hybrid retailers to consumers and research program subjects, and (B) hybrid retailers and dispensary facilities to qualifying patients, caregivers and research program subjects, as defined in section 21a-408, or to hospices or other inpatient care facilities licensed by the Department of Public Health pursuant to chapter 368v that have a protocol for the handling and distribution of cannabis that has been approved by the department, or a combination thereof;

(18) “Department” means the Department of Consumer Protection;

(19) “Dispensary facility” means a place of business where cannabis may be dispensed, sold or distributed in accordance with chapter 420f and any regulations adopted pursuant to said chapter, to qualifying patients and caregivers, and to which the department has issued a dispensary facility license pursuant to chapter 420f and any regulations adopted pursuant to said chapter;

(20) “Disproportionately impacted area” means (A) for the period beginning July 1, 2021, and ending July 31, 2023, a United States census tract in the state that has, as determined by the Social Equity Council under subdivision (1) of subsection (i) of section 21a-420d, (i) a historical conviction rate for drug-related offenses greater than one-tenth, or (ii) an unemployment rate greater than ten per cent, and (B) on and after August 1, 2023, a United States census tract in this state that has been identified by the Social Equity Council pursuant to subdivision (2) of subsection (i) of section 21a-420d;

(21) “Disqualifying conviction” means a conviction within the last ten years which has not been the subject of an absolute pardon under the provisions of section 54-130a, or an equivalent pardon process under the laws of another state or the federal government, for an offense under (A) section 53a-276, 53a-277 or 53a-278; (B) section 53a-291, 53a-292 or 53a-293; (C) section 53a-215; (D) section 53a-138 or 53a-139; (E) section 53a-142a; (F) sections 53a-147 to 53a-162, inclusive; (G) sections 53a-125c to 53a-125f, inclusive; (H) section 53a-129b, 53a-129c or 53a-129d; (I) subsection (b) of section 12-737; (J) section 53a-48 or 53a-49, if the offense which is attempted or is an object of the conspiracy is an offense under the statutes listed in subparagraphs (A) to (I), inclusive, of this subdivision; or (K) the law of any other state or of the federal government, if the offense on which such conviction is based is defined by elements that substantially include the elements of an offense under the statutes listed in subparagraphs (A) to (J), inclusive, of this subdivision;

(22) “Dispensary technician” means an individual who has had an active pharmacy technician or dispensary technician registration in this state within the past five years, is affiliated with a dispensary facility or hybrid retailer and is registered with the department in accordance with chapter 420f and any regulations adopted pursuant to said chapter;

(23) “Edible cannabis product” means a cannabis product intended for humans to eat or drink;

(24) “Employee” means any person who is not a backer, but is a member of the board of a company with an ownership interest in a cannabis establishment, and any person employed by a cannabis establishment or who otherwise has access to such establishment or the vehicles used to transport cannabis, including, but not limited to, an independent contractor who has routine access to the premises of such establishment or to the cannabis handled by such establishment;

(25) “Equity” and “equitable” means efforts, regulations, policies, programs, standards, processes and any other functions of government or principles of law and governance intended to: (A) Identify and remedy past and present patterns of discrimination and disparities of race, ethnicity, gender and sexual orientation; (B) ensure that such patterns of discrimination and disparities, whether intentional or unintentional, are neither reinforced nor perpetuated; and (C) prevent the emergence and persistence of foreseeable future patterns of discrimination or disparities of race, ethnicity, gender and sexual orientation;

(26) “Equity joint venture” means a business entity that is controlled, and at least fifty per cent owned, by an individual or individuals, or such applicant is an individual, who meets the criteria of subparagraphs (A) and (B) of subdivision (50) of this section;

(27) “Extract” means the preparation, compounding, conversion or processing of cannabis, either directly or indirectly by extraction or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis to produce a cannabis concentrate;

(28) “Financial interest” means any right to, ownership, an investment or a compensation arrangement with another person, directly, through business, investment or family. “Financial interest” does not include ownership of investment securities in a publicly-held corporation that is traded on a national exchange or over-the-counter market, provided the investment securities held by such person and such person's spouse, parent or child, in the aggregate, do not exceed one-half of one per cent of the total number of shares issued by the corporation;

(29) “Food and beverage manufacturer” means a person that is licensed to own and operate a place of business that acquires cannabis and creates food and beverages;

(30) “Grow space” means the portion of a premises owned and controlled by a producer, cultivator or micro-cultivator that is utilized for the cultivation, growing or propagation of the cannabis plant, and contains cannabis plants in an active stage of growth, measured starting from the outermost wall of the room containing cannabis plants and continuing around the outside of the room. “Grow space” does not include space used to cure, process, store harvested cannabis or manufacture cannabis once the cannabis has been harvested;

(31) “Historical conviction count for drug-related offenses” means, for a given area, the number of convictions of residents of such area (A) for violations of sections 21a-267, 21a-277, 21a-278, 21a-279 and 21a-279a, and (B) who were arrested for such violations between January 1, 1982, and December 31, 2020, inclusive, where such arrest was recorded in databases maintained by the Department of Emergency Services and Public Protection;

(32) “Historical conviction rate for drug-related offenses” means, for a given area, the historical conviction count for drug-related offenses divided by the population of such area, as determined by the five-year estimates of the most recent American Community Survey conducted by the United States Census Bureau;

(33) “Hybrid retailer” means a person that is licensed to purchase cannabis and sell cannabis and medical marijuana products;

(34) “Key employee” means an employee with the following management position or an equivalent title within a cannabis establishment: (A) President or chief officer, who is the top ranking individual at the cannabis establishment and is responsible for all staff and overall direction of business operations; (B) financial manager, who is the individual who reports to the president or chief officer and who is responsible for oversight of the financial operations of the cannabis establishment, which financial operations include one or more of the following: (i) Revenue and expense management; (ii) distributions; (iii) tax compliance; (iv) budget development; and (v) budget management and implementation; or (C) compliance manager, who is the individual who reports to the president or chief officer and who is generally responsible for ensuring the cannabis establishment complies with all laws, regulations and requirements related to the operation of the cannabis establishment;

(35) “Labor peace agreement” means an agreement between a cannabis establishment and a bona fide labor organization under section 21a-421d pursuant to which the owners and management of the cannabis establishment agree not to lock out employees and that prohibits the bona fide labor organization from engaging in picketing, work stoppages or boycotts against the cannabis establishment;

(36) “Manufacture” means to add or incorporate cannabis into other products or ingredients or create a cannabis product;

(37) “Medical marijuana product” means cannabis that may be exclusively sold to qualifying patients and caregivers by dispensary facilities and hybrid retailers and which are designated by the commissioner as reserved for sale to qualifying patients and caregivers and published on the department's Internet web site;

(38) “Micro-cultivator” means a person licensed to engage in the cultivation, growing and propagation of the cannabis plant at an establishment containing not less than two thousand square feet and not more than ten thousand square feet of grow space, prior to any expansion authorized by the commissioner;

(39) “Municipality” means any town, city or borough, consolidated town and city or consolidated town and borough;

(40) “Paraphernalia” means drug paraphernalia, as defined in section 21a-240;

(41) “Person” means an individual, partnership, limited liability company, society, association, joint stock company, corporation, estate, receiver, trustee, assignee, referee or any other legal entity and any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination thereof;

(42) “Producer” means a person that is licensed as a producer pursuant to section 21a-408i and any regulations adopted pursuant to said section;

(43) “Product manufacturer” means a person that is licensed to obtain cannabis, extract and manufacture products;

(44) “Product packager” means a person that is licensed to package and label cannabis;

(45) “Qualifying patient” has the same meaning as provided in section 21a-408;

(46) “Research program” has the same meaning as provided in section 21a-408;

(47) “Retailer” means a person, excluding a dispensary facility and hybrid retailer, that is licensed to purchase cannabis from producers, cultivators, micro-cultivators, product manufacturers and food and beverage manufacturers and to sell cannabis to consumers and research programs;

(48) “Sale” or “sell” has the same meaning as provided in section 21a-240;

(49) “Social Equity Council” or “council” means the council established under section 21a-420d;

(50) “Social equity applicant” means a person that has applied for a license for a cannabis establishment, where such applicant is controlled, and at least sixty-five per cent owned, by an individual or individuals, or such applicant is an individual, who:

(A) Had an average household income of less than three hundred per cent of the state median household income over the three tax years immediately preceding such individual's application; and

(B) (i) Was a resident of a disproportionately impacted area for not less than five of the ten years immediately preceding the date of such application; or

(ii) Was a resident of a disproportionately impacted area for not less than nine years prior to attaining the age of eighteen;

(51) “THC” has the same meaning as provided in section 21a-240;

(52) “Third-party lottery operator” means a person, or a constituent unit of the state system of higher education, that conducts lotteries pursuant to section 21a-420g, identifies the cannabis establishment license applications for consideration without performing any review of the applications that are identified for consideration, and that has no direct or indirect oversight of or investment in a cannabis establishment or a cannabis establishment applicant;

(53) “Transfer” means to transfer, change, give or otherwise dispose of control over or interest in;

(54) “Transport” means to physically move from one place to another;

(55) “Transporter” means a person licensed to transport cannabis between cannabis establishments, cannabis testing laboratories and research programs; and

(56) “Unemployment rate” means, in a given area, the number of people sixteen years of age or older who are in the civilian labor force and unemployed divided by the number of people sixteen years of age or older who are in the civilian labor force.

(June Sp. Sess. P.A. 21-1, S. 1; P.A. 22-70, S. 9; 22-103, S. 1; P.A. 23-79, S. 19.)

*Note: Sections 23, 60, 63 to 65, inclusive, 124, 144 and 165 of public act 21-1 of the June special session and section 20 of public act 23-79 are special in nature and therefore have not been codified but remain in full force and effect according to their terms.

History: June Sp. Sess. P.A. 21-1 effective June 22, 2021; P.A. 22-70 made a technical change in Subdiv. (21)(C); P.A. 22-103 amended Subdiv. (1) by redefining “Responsible and Equitable Regulation of Adult-Use Cannabis Act” and “RERACA” to include Secs. 21a-421hhh and 21a-420j, effective May 24, 2022; P.A. 23-79 amended Subdiv. (1) by redefining “Responsible and Equitable Regulation of Adult-Use Cannabis Act” and “RERACA” to include P.A. 23-79, S. 20, amended Subdiv. (5) by redefining “cannabis flower” to include “chopped or ground”, added Subdivs. (6) and (7) defining “cannabis testing laboratory” and “cannabis testing laboratory employee”, respectively, redesignated existing Subdivs. (6) to (11) as Subdivs. (8) to (13), amended Subdiv. (8) by redefining “cannabis trim” to exclude chopping or grinding, substantially amended Subdiv. (9) by redefining “cannabis product”, added new Subdiv. (14) defining “control”, redesignated existing Subdivs. (12) to (19) as Subdivs. (15) to (22), amended Subdiv. (20) defining “disproportionately impacted area” by designating existing provisions as new Subpara. (A), adding provision re period beginning July 1, 2021, and ending July 31, 2023, in new Subpara. (A), redesignating existing Subparas. (A) and (B) as Subpara. (A)(i) and (ii) and adding new Subpara. (B) re period beginning August 1, 2023, added Subdiv. (23) defining “edible cannabis product”, redesignated existing Subdivs. (20) to (30) as Subdivs. (24) to (34), substantially amended Subdiv. (34) defining “key employee”, deleted former Subdivs. (31) and (32) defining “laboratory” and “laboratory employee”, respectively, redesignated existing Subdivs. (33) to (54) as Subdivs. (35) to (56), amended Subdiv. (43) defining “product manufacturer” by deleting “exclusive to such license type”, amended Subdiv. (55) defining “transporter” by substituting “cannabis testing laboratories” for “laboratories”, and made technical and conforming changes throughout, effective July 1, 2023.

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Sec. 21a-420d. Social Equity Council established. Membership. Powers. Study. Recommendations. List of disproportionately impacted areas. Duties. (a) There is established a Social Equity Council, which shall be within the Department of Economic and Community Development for administrative purposes only.

(b) The council shall consist of fifteen members as follows:

(1) One appointed by the speaker of the House of Representatives, who has a professional background of not less than five years working in the field of either social justice or civil rights;

(2) One appointed by the president pro tempore of the Senate, who has a professional background of not less than five years working in the field of either social justice or civil rights;

(3) One appointed by the majority leader of the House of Representatives, who has a professional background of not less than five years working in the field of economic development to help minority-owned businesses;

(4) One appointed by the majority leader of the Senate, who has a professional background of not less than five years in providing access to capital to minorities, as defined in section 32-9n;

(5) One appointed by the minority leader of the House of Representatives, who is from a community that has been disproportionately harmed by cannabis prohibition and enforcement;

(6) One appointed by the minority leader of the Senate, who has a professional background of not less than five years in providing access to capital to minorities, as defined in section 32-9n;

(7) One appointed by the chairperson of the Black and Puerto Rican Caucus of the General Assembly;

(8) Four appointed by the Governor, one who is from a community that has been disproportionately harmed by cannabis prohibition and enforcement, one who has a professional background of not less than five years working in the field of economic development and one who is an executive branch official focused on workforce development;

(9) The Commissioner of Consumer Protection, or the commissioner's designee;

(10) The Commissioner of Economic and Community Development, or the commissioner's designee;

(11) The State Treasurer, or the State Treasurer's designee; and

(12) The Secretary of the Office of Policy and Management, or the secretary's designee.

(c) In making the appointments in subsection (b) of this section, the appointing authority shall use best efforts to make appointments that reflect the racial, gender and geographic diversity of the population of the state. All appointments shall be made not later than July 30, 2021, and the Governor shall appoint the chairperson of the council from among the members of the council. Members appointed by the Governor shall serve a term of four years from the time of appointment and members appointed by any other appointing authority shall serve a term of three years from the time of appointment. The appointing authority shall fill any vacancy for the unexpired term. The Governor shall appoint an interim executive director to operationalize and support the council until, notwithstanding the provisions of section 4-9a, the council appoints an executive director. Subject to the provisions of chapter 67, and within available appropriations, the council may thereafter appoint an executive director and such other employees as may be necessary for the discharge of the duties of the council.

(d) A majority of the members of the council shall constitute a quorum for the transaction of any business. The members of the council shall serve without compensation, but shall, within available appropriations, be reimbursed for expenses necessarily incurred in the performance of their duties. Any member who fails to attend three consecutive meetings held after May 24, 2022, or who fails to attend fifty per cent of all meetings held during any calendar year beginning on or after January 1, 2023, shall be deemed to have resigned from office. The appointing authority shall fill the vacancy for the unexpired term of any member who is deemed to have resigned from office under this subsection, and shall use best efforts to ensure such appointment reflects the racial, gender and geographic diversity of the population of the state.

(e) The council may (1) request, and shall receive, from any state agency such information and assistance as the council may require; (2) use such funds as may be available from federal, state or other sources and may enter into contracts to carry out the purposes of the council, including, but not limited to, contracts or agreements with Connecticut Innovations, Incorporated, constituent units of the state system of higher education, regional workforce development boards and community development financial institutions; (3) utilize voluntary and uncompensated services of private individuals, state or federal agencies and organizations as may, from time to time, be offered and needed; (4) accept any gift, donation or bequest for the purpose of performing the duties of the council; (5) hold public hearings; (6) establish such standing committees, as necessary, to perform the duties of the council; and (7) adopt regulations, in accordance with chapter 54, as it may deem necessary to carry out the duties of the council.

(f) The council shall promote and encourage full participation in the cannabis industry by persons from communities that have been disproportionately harmed by cannabis prohibition and enforcement.

(g) Not later than forty-five days after June 22, 2021, or at a later date determined by the council, the council shall establish criteria for proposals to conduct a study under this section and the Secretary of the Office of Policy and Management shall post on the State Contracting Portal a request for proposals to conduct a study, and shall select an independent third party to conduct such study and provide detailed findings of fact regarding the following matters in the state or other matters determined by the council:

(1) Historical and present-day social, economic and familial consequences of cannabis prohibition, the criminalization and stigmatization of cannabis use and related public policies;

(2) Historical and present-day structures, patterns, causes and consequences of intentional and unintentional racial discrimination and racial disparities in the development, application and enforcement of cannabis prohibition and related public policies;

(3) Foreseeable long-term social, economic and familial consequences of unremedied past racial discrimination and disparities arising from past and continued cannabis prohibition, stigmatization and criminalization;

(4) Existing patterns of racial discrimination and racial disparities in access to entrepreneurship, employment and other economic benefits arising in the lawful palliative use cannabis sector as established pursuant to chapter 420f; and

(5) Any other matters that the council deems relevant and feasible for study for the purpose of making reasonable and practical recommendations for the establishment of an equitable and lawful adult-use cannabis business sector in this state.

(h) Not later than January 1, 2022, the council shall, taking into account the results of the study conducted in accordance with subsection (g) of this section, make written recommendations, in accordance with the provisions of section 11-4a, to the Governor and the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding, consumer protection and the judiciary regarding legislation to implement the provisions of this section. The council shall make recommendations regarding:

(1) Creating programs to ensure that individuals from communities that have been disproportionately harmed by cannabis prohibition and enforcement are provided equal access to licenses for cannabis establishments;

(2) Specifying additional qualifications for social equity applicants;

(3) Providing for expedited or priority license processing for each license as a retailer, hybrid retailer, cultivator, micro-cultivator, product manufacturer, food and beverage manufacturer, product packager, transporter and delivery service license for social equity applicants;

(4) Establishing minimum criteria for any cannabis establishment licensed on or after January 1, 2022, that is not owned by a social equity applicant, to comply with an approved workforce development plan to reinvest or provide employment and training opportunities for individuals in disproportionately impacted areas;

(5) Establishing criteria for a social equity plan for any cannabis establishment licensed on or after January 1, 2022, to further the principles of equity, as defined in section 21a-420;

(6) Recruiting individuals from communities that have been disproportionately harmed by cannabis prohibition and enforcement to enroll in the workforce training program established pursuant to section 21a-421g;

(7) Potential uses for revenue generated under RERACA to further equity;

(8) Encouraging participation of investors, cannabis establishments, and entrepreneurs in the cannabis business accelerator program established pursuant to section 21a-421f;

(9) Establishing a process to best ensure that social equity applicants have access to the capital and training needed to own and operate a cannabis establishment; and

(10) Developing a vendor list of women-owned and minority-owned businesses that cannabis establishments may contract with for necessary services, including, but not limited to, office supplies, information technology infrastructure and cleaning services.

(i) (1) Not later than August 1, 2021, and annually thereafter until July 31, 2023, the council shall use the most recent five-year United States Census Bureau American Community Survey estimates or any successor data to determine one or more United States census tracts in the state that are a disproportionately impacted area and shall publish a list of such tracts on the council's Internet web site.

(2) Not later than August 1, 2023, the council shall use poverty rate data from the most recent five-year United States Census Bureau American Community Survey estimates, population data from the most recent decennial census and conviction information from databases managed by the Department of Emergency Services and Public Protection to identify all United States census tracts in the state that are disproportionately impacted areas and shall publish a list of such tracts on the council's Internet web site. In identifying which census tracts in this state are disproportionately impacted areas and preparing such list, the council shall:

(A) Not deem any census tract with a poverty rate that is less than the state-wide poverty rate to be a disproportionately impacted area;

(B) After eliminating the census tracts described in subparagraph (A) of this subdivision, rank the remaining census tracts in order from the census tract with the greatest historical conviction rate for drug-related offenses to the census tract with the lowest historical conviction rate for drug-related offenses; and

(C) Include census tracts in the order of rank described in subparagraph (B) of this subdivision until including the next census tract would cause the total population of all included census tracts to exceed twenty-five per cent of the state's population.

(j) After developing criteria for workforce development plans as described in subdivision (4) of subsection (h) of this section, the council shall review and approve or deny in writing any such plan submitted by a producer under section 21a-420l or a hybrid-retailer under section 21a-420u.

(k) The council shall develop criteria for evaluating the ownership and control of any equity joint venture created under section 21a-420m, 21a-420u or 21a-420j and shall review and approve or deny in writing such equity joint venture prior to such equity joint venture being licensed under section 21a-420m, 21a-420u or 21a-420j. After developing criteria for social equity plans as described in subdivision (5) of subsection (h) of this section, the council shall review and approve or deny in writing any such plan submitted by a cannabis establishment as part of its final license application. The council shall not approve any equity joint venture applicant which shares with an equity joint venture any individual owner who meets the criteria established in subparagraphs (A) and (B) of subdivision (50) of section 21a-420.

(l) The Social Equity Council shall, upon receipt of funds from producers in accordance with subdivision (5) of subsection (b) of section 21a-420l, develop a program to assist social equity applicants to open not more than two micro-cultivator establishment businesses in total. Producers shall provide mentorship to such social equity applicants. The Social Equity Council shall, with the department, determine a system to select social equity applicants to participate in such program without participating in a lottery or request for proposals.

(June Sp. Sess. P.A. 21-1, S. 22; P.A. 22-103, S. 21; P.A. 23-79, S. 21.)

History: June Sp. Sess. P.A. 21-1 effective June 22, 2021; P.A. 22-103 amended Subsec. (d) by adding provisions re default resignation of members for failure to attend meetings and filling of resulting vacancies, Subsec. (k) by adding provisions re Sec. 21a-420j and prohibition re approval of equity joint venture applicant which shares with equity joint venture any individual owner who meets criteria established in Sec. 21a-420(48)(A) and (B), and made technical and conforming changes, effective May 24, 2022; P.A. 23-79 amended Subsec. (i) by designating existing provisions as Subdiv. (1), adding “until July 1, 2023,” in Subdiv. (1) and adding Subdiv. (2) re identifying census tracts in state that are disproportionately impacted areas, and made technical and conforming changes in Subsecs. (i) and (k), effective July 1, 2023.

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Sec. 21a-420e. Timeline for initial applications for licensure. Fees for licenses. Disclosure of application information. (a) Not later than thirty days after the date that the Social Equity Council identifies the criteria and the necessary supporting documentation for social equity applicants and posts such information on its Internet web site, the department may accept applications for the following cannabis establishment license types: (1) Retailer, (2) hybrid retailer, (3) cultivator, (4) micro-cultivator, (5) product manufacturer, (6) food and beverage manufacturer, (7) product packager, (8) delivery service, (9) transporter, (10) dispensary facility, and (11) producer. Each application for licensure shall require the applicant to indicate whether the applicant wants to be considered for treatment as a social equity applicant.

(b) On and after July 1, 2021, the department may accept applications from any dispensary facility to convert its license to a hybrid-retailer license and any producer for expanded authorization to engage in the adult use cannabis market under its license issued pursuant to section 21a-408i.

(1) For a retailer license, the fee to enter the lottery shall be five hundred dollars, the fee to receive a provisional license shall be five thousand dollars and the fee to receive a final license or a renewal of a final license shall be twenty-five thousand dollars.

(2) For a hybrid retailer license, the fee to enter the lottery shall be five hundred dollars, the fee to receive a provisional license shall be five thousand dollars and the fee to receive a final license or a renewal of a final license shall be twenty-five thousand dollars.

(3) For a cultivator license, the fee to enter the lottery shall be one thousand dollars, the fee to receive a provisional license shall be twenty-five thousand dollars and the fee to receive a final license or a renewal of a final license shall be seventy-five thousand dollars.

(4) For a micro-cultivator license, the fee to enter the lottery shall be two hundred fifty dollars, the fee to receive a provisional license shall be five hundred dollars and the fee to receive a final license or a renewal of a final license shall be one thousand dollars.

(5) (A) For a product manufacturer license, the fee to enter the lottery shall be seven hundred fifty dollars, the fee to receive a provisional license shall be five thousand dollars and the fee to receive a final license or a renewal of a final license shall be twenty-five thousand dollars.

(B) For a product manufacturer seeking authorization to expand the product manufacturer's authorized activities to include the authorized activities of a food and beverage manufacturer, the application fee for such expanded authorization shall be five thousand dollars and the fee to renew such expanded authorization shall be five thousand dollars. The fees due under this subparagraph shall be in addition to the fees due under subparagraph (A) of this subdivision.

(6) (A) For a food and beverage manufacturer license, the fee to enter the lottery shall be two hundred fifty dollars, the fee to receive a provisional license shall be one thousand dollars and the fee to receive a final license or a renewal of a final license shall be five thousand dollars.

(B) For a food and beverage manufacturer seeking authorization to expand the food and beverage manufacturer's authorized activities to include the authorized activities of a product manufacturer, the application fee for such expanded authorization shall be twenty-five thousand dollars and the fee to renew such expanded authorization shall be twenty-five thousand dollars. The fees due under this subparagraph shall be in addition to the fees due under subparagraph (A) of this subdivision.

(7) For a product packager license, the fee to enter the lottery shall be five hundred dollars, the fee to receive a provisional license shall be five thousand dollars and the fee to receive a final license or a renewal of a final license shall be twenty-five thousand dollars.

(8) For a delivery service or transporter license, the fee to enter the lottery shall be two hundred fifty dollars, the fee to receive a provisional license shall be one thousand dollars and the fee to receive a final license or a renewal of a final license shall be five thousand dollars.

(9) For an initial or renewal of a backer license, the fee shall be one hundred dollars.

(10) For an initial or renewal of a key employee license, the fee shall be one hundred dollars.

(11) For an initial or renewal of a registration of an employee who is not a key employee, the fee shall be fifty dollars.

(12) The license conversion fee for a dispensary facility to become a hybrid retailer shall be one million dollars, except as provided in section 21a-420u.

(13) The license conversion fee for a producer to engage in the adult use cannabis market shall be three million dollars, except as provided in section 21a-420l.

(14) For a dispensary facility license, the fee to enter the lottery shall be five hundred dollars, the fee to receive a provisional license shall be five thousand dollars and the fee to receive a final license or a renewal of a final license shall be five thousand dollars.

(15) For a producer license, the fee to enter the lottery shall be one thousand dollars, the fee to receive a provisional license shall be twenty-five thousand dollars and the fee to receive a final license or a renewal of a final license shall be seventy-five thousand dollars.

(d) For any dispensary facility that has become a hybrid retailer, the renewal fee shall be the same as the fee for a hybrid retailer set forth in subdivision (2) of subsection (c) of this section. For any producer approved for expanded authorization to engage in the adult use cannabis market, the renewal fee shall be seventy-five thousand dollars. A social equity applicant shall pay fifty per cent of the amount of any of the fees specified in subsection (c) of this section for the first three renewal cycles of the applicable cannabis establishment license applied for, and the full amount thereafter, provided in the case of the fees set forth in subdivisions (12) and (13) of subsection (c) of this section, a social equity applicant shall pay the full amount of the fee.

(e) For the fiscal year ending June 30, 2023, and thereafter, fees collected by the department under this section shall be paid to the State Treasurer and credited to the General Fund, except that the fees collected under subdivisions (12) and (13) of subsection (c) of this section shall be deposited in the Cannabis Social Equity and Innovation Fund established under section 21a-420f.

(f) For each license type:

(1) Applicants shall apply on a form and in a manner prescribed by the commissioner, which form shall include a method for the applicant to request consideration as a social equity applicant; and

(2) The department shall post on its Internet web site the application period, which shall specify the first and last date that the department will accept applications for that license type. The first date that the department shall accept applications shall be no sooner than thirty days after the date the Social Equity Council posts the criteria and supporting documentation necessary to qualify for consideration as a social equity applicant as set forth in section 21a-420g. Only complete license applications received by the department during the application period shall be considered.

(g) (1) No current or former state officer or employee, or employee of any other person who at any time had access to an application submitted to the department pursuant to this section, may disclose such application, or any information included in or submitted with such application, unless such disclosure is authorized under this subsection.

(2) The commissioner may disclose the following information concerning an application submitted to the department pursuant to this section:

(A) The applicant's name;

(B) The license type for which such application was submitted;

(D) The applicant's address;

(E) The name, electronic mail address and telephone number of the applicant's owner;

(F) The ownership interest that an owner of a social equity applicant holds in such applicant, expressed as a percentage of all ownership interests in such applicant;

(G) The name and address of the person who serves as the applicant's primary business contact;

(H) The application number assigned to such application;

(I) The date such application was submitted to the department;

(J) Information concerning the applicant's formation, including, but not limited to, the applicant's business entity type, formation date and place, and business registration number as such number appears on the electronic business portal established by the Commercial Recording Division of the office of the Secretary of the State pursuant to section 3-99d; and

(K) The name of all cannabis businesses associated with the applicant and listed on such application.

(3) (A) In addition to the information described in subdivision (2) of this subsection, the commissioner may, in the commissioner's sole discretion, disclose any personal information or financial document associated with an application submitted to the department pursuant to this section to:

(i) A federal, state or local government agency acting in the course of such agency's governmental functions, or a person acting on behalf of such agency in performing such functions;

(ii) A college or university conducting research or assisting the state in reviewing such applications, provided such college or university agrees to not disclose any personally identifying information or confidential business information and to deidentify any personal or financial information such college or university receives from the department before releasing any report, study, survey or similar document concerning such information;

(iii) An officer of the court in connection with an administrative, arbitral, civil or criminal proceeding in a court of competent jurisdiction or before a government agency or self-regulatory body, including, but not limited to, the service of process, an investigation performed in anticipation of litigation, an order issued by such court or the execution or enforcement of a judgment or order issued by such court, provided the person to whom the commissioner discloses such information or document is a party in interest to such proceeding;

(iv) A state marshal in the course of performing such marshal's duties under section 6-38a; or

(v) The applicant or the applicant's owner to confirm that any such information or document such applicant or owner submitted to the department in connection with such application is accurate.

(B) Any personal information or financial document the commissioner discloses pursuant to subparagraph (A) of this subdivision shall remain confidential, and no person described in subparagraphs (A)(i) to (A)(iv), inclusive, of this subdivision shall further disseminate such information or document in a manner that would enable another person to identify any person referenced in, and related to, such information or document unless such disclosure is required under other applicable law.

(June Sp. Sess. P.A. 21-1, S. 34; P.A. 23-79, S. 22, 23; 23-204, S. 122.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 23-79 amended Subsec. (a) by adding Subdiv. (10) re dispensary facility licenses and Subdiv. (11) re producer licenses, amended Subsec. (c) by adding Subdiv. (14) re dispensary facility licenses and Subdiv. (15) re producer licenses, amended Subsec. (d) by substituting provision re $75,000 renewal fee for producer approved for expanded authorization to engage in adult use cannabis market for provision re renewal fee for producer, added Subsec. (g) establishing requirements re disclosure of application information, and made technical and conforming changes in Subsecs. (a) and (c), effective June 26, 2023, and amended Subsec. (c)(5) by designating existing provisions as Subpara. (A) and adding Subpara. (B) re product manufacturer seeking authorization to expand authorized activities to include authorized activities of food and beverage manufacturer, and amended Subsec. (c)(6) by designating existing provisions as Subpara. (A) and adding Subpara. (B) re food and beverage manufacturer seeking authorization to expand authorized activities to include authorized activities of product manufacturer, effective July 1, 2023; P.A. 23-204 amended Subsec. (e) by substituting “Cannabis Social Equity and Innovation Fund” for “Social Equity and Innovation Fund”, effective July 1, 2023.

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Sec. 21a-420f. Accounts and funds. Deposits. Transfers. Estimates and adjustments of expenditure requirements. (a)(1) There is established an account to be known as the “cannabis regulatory and investment account” which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. Moneys in the account shall be allocated by the Secretary of the Office of Policy and Management, in consultation with the Social Equity Council, as defined in section 21a-420, to state agencies for the purpose of paying costs incurred to implement the activities authorized under RERACA, as defined in section 21a-420.

(2) Notwithstanding the provisions of section 21a-420e, for the fiscal years ending June 30, 2022, and June 30, 2023, the following shall be deposited in the cannabis regulatory and investment account: (A) All fees received by the state pursuant to section 21a-421b and subdivisions (1) to (11), inclusive, of subsection (c) of section 21a-420e; (B) the tax received by the state under section 12-330ll; and (C) the tax received by the state under chapter 219 from a cannabis retailer, hybrid retailer or micro-cultivator, as those terms are defined in section 12-330ll.

(3) At the end of the fiscal year ending June 30, 2023, all moneys remaining in the cannabis regulatory and investment account shall be transferred to the General Fund.

(b) (1) There is established an account to be known as the “social equity and innovation account” which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account.

(A) During the fiscal years ending June 30, 2022, and June 30, 2023, moneys in the account shall be allocated by the Secretary of the Office of Policy and Management, in consultation with the Social Equity Council, to state agencies for the purpose of (i) paying costs incurred by the Social Equity Council, (ii) administering programs under RERACA to provide (I) access to capital for businesses, (II) technical assistance for the start-up and operation of a business, (III) funding for workforce education, and (IV) funding for community investments, and (iii) paying costs incurred to implement the activities authorized under RERACA.

(B) During the fiscal year ending June 30, 2024, moneys in the account shall be allocated by the Secretary of the Office of Policy and Management for purposes that the Social Equity Council determines, in the Social Equity Council's sole discretion, further the principles of equity, as defined in section 21a-420, which purposes may include, but need not be limited to, providing (i) access to capital for businesses, (ii) technical assistance for the start-up and operation of a business, (iii) funding for workforce education, (iv) funding for community investments, and (v) funding for investments in disproportionately impacted areas.

(2) Notwithstanding the provisions of sections 21a-420e and 21a-420o, for the fiscal years ending June 30, 2022, and June 30, 2023, the following shall be deposited in the social equity and innovation account: All fees received by the state pursuant to sections 21a-420l, 21a-420o and 21a-420u and subdivisions (12) and (13) of subsection (c) of section 21a-420e.

(3) At the end of the fiscal year ending June 30, 2023, five million dollars shall be transferred from the social equity and innovation account to the General Fund, or, if the account contains less than five million dollars, all remaining moneys in the account. At the end of the fiscal year ending June 30, 2024, all remaining moneys in the account shall be transferred to the Social Equity and Innovation Fund established under subsection (c) of this section.

(c) (1) On and after July 1, 2022, there is established a fund to be known as the “Cannabis Social Equity and Innovation Fund”. The fund shall contain any moneys required by law to be deposited in the fund and shall be held by the Treasurer separate and apart from all other moneys, funds and accounts. Amounts in the fund may be expended only pursuant to appropriation by the General Assembly. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fund for the fiscal year next succeeding. Moneys in the fund shall be appropriated for the purposes of providing the following: Access to capital for businesses; technical assistance for the start-up and operation of a business; funding for workforce education; funding for community investments; and paying costs incurred to implement the activities authorized under RERACA. All such appropriations shall be dedicated to expenditures that further the principles of equity, as defined in section 21a-420.

(2) (A) For the purposes of subdivision (1) of this subsection, for the fiscal year ending June 30, 2023, and for each fiscal year thereafter, the Social Equity Council shall transmit, for even-numbered years, estimates of expenditure requirements and for odd-numbered years, recommended adjustments and revisions, if any, of such estimates, to the Secretary of the Office of Policy and Management, in the manner prescribed for a budgeted agency under subsection (a) of section 4-77.

(B) The Office of Policy and Management may not make adjustments to any such estimates or adjustments and revisions of such estimates transmitted by the council. Notwithstanding any provision of the general statutes or any special act, the Governor shall not reduce the allotment requisitions or allotments in force pursuant to section 4-85 or make reductions in allotments in order to achieve budget savings in the General Fund, concerning any appropriations made by the General Assembly for the purposes of subdivision (1) of this subsection.

(d) On and after July 1, 2022, there is established a fund to be known as the “Cannabis Prevention and Recovery Services Fund”. The fund shall contain any moneys required by law to be deposited in the fund and shall be held by the Treasurer separate and apart from all other moneys, funds and accounts. Amounts in the fund may be expended only pursuant to appropriation by the General Assembly. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fund for the fiscal year next succeeding. Moneys in the fund shall be appropriated for the purposes of (1) substance abuse prevention, treatment and recovery services, which may include, but need not be limited to, the (A) provision of youth cannabis use prevention services by the local advisory councils on drug use and prevention established by municipalities pursuant to subsection (a) of Section 4126 of the Drug Free Schools and Communities Act of 1986, as amended from time to time, regional behavioral health action organizations described in section 17a-484f, or youth service bureaus established pursuant to section 10-19m, and (B) development of a public awareness campaign to raise awareness of the mental and physical health risks of youth cannabis use and cannabis use by pregnant persons, and (2) collection and analysis of data regarding substance use. The Social Equity Council may make recommendations to any relevant state agency regarding expenditures to be made for the purposes set forth in this subsection.

(e) On and after July 1, 2023, there is established a fund to be known as the “Cannabis Regulatory Fund” which shall be a separate, nonlapsing fund. The fund shall contain any moneys required by law to be deposited in the fund and shall be held by the Treasurer separate and apart from all other moneys, funds and accounts. Moneys in the fund shall be appropriated to state agencies for the purposes of paying costs incurred to implement the activities authorized under RERACA, as defined in section 21a-420.

(June Sp. Sess. P.A. 21-1, S. 128; P.A. 22-118, S. 129; 22-146, S. 4; P.A. 23-79, S. 24; 23-204, S. 88, 120, 124, 356.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 22-118 amended Subsecs. (a)(1) and (b)(1) by adding provisions re consultations with Social Equity Council as defined in Sec. 21a-420, added Subsec. (b)(1)(C), and amended Subsec. (c)(1) by adding provision, re paying costs incurred to implement activities authorized under RERACA, amended Subsec. (d) by adding provision re recommendations by Social Equity Council, and made technical and conforming changes, effective May 7, 2022; P.A. 22-146 amended Subsecs. (a)(2) and (b)(2) by adding provisions re fiscal year ending June 30, 2023, added Subsecs. (a)(3) and (b)(3) re transfers and made conforming changes, effective May 7, 2022; P.A. 23-79 amended Subsec. (d)(1) by adding Subparas. (A) and (B) re purposes of appropriations of moneys in fund and making a conforming change, effective July 1, 2023; P.A. 23-204 amended Subsec. (b) by designating provisions re allocation of moneys in social equity and innovation account as new Subdiv. (1)(A) and adding provision therein re fiscal years ending June 30, 2022, and June 30, 2023, redesignating existing Subdiv. (1)(A) to (C) as Subdiv. (1)(A)(i) to (iii) and existing Subdiv. (1)(B)(i) to (iv) as Subdiv. (1)(A)(ii)(I) to (IV), adding new Subdiv. (1)(B) re allocations during fiscal year ending June 30, 2024, adding provision in Subdiv. (3) extending date of transfer of moneys remaining in social equity and innovation account from end of fiscal year ending June 30, 2023, to end of fiscal year ending June 30, 2024, and directing transfer to Social Equity and Innovation Fund instead of General Fund, and making technical and conforming changes throughout Subsec. (b), effective June 12, 2023, and amended Subsec. (c) by substituting “Cannabis Social Equity and Innovation Fund” for “Social Equity and Innovation Fund”, deleting “which shall be a separate, nonlapsing fund” and adding provision requiring expenditure be made pursuant to appropriation of General Assembly and provision concerning carry forward in Subsec. (c)(1), deleting provision re recommendation for funding for credits payable to angel investors that invest in cannabis businesses in Subsec. (c)(2), amended Subsec. (d) by substituting “Cannabis Prevention and Recovery Services Fund” for “Prevention and Recovery Services Fund”, deleting “which shall be a separate, nonlapsing fund” and adding provision requiring expenditure be made pursuant to appropriation of General Assembly and provision concerning carry forward, and added Subsec. (e) establishing the Cannabis Regulatory Fund, effective July 1, 2023.

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Sec. 21a-420g. Review of applications by Social Equity Council. Maximum number of applications. Lotteries. Rankings to be confidential. Disqualification. Provisional license. Final license. (a) The Social Equity Council shall review the ownership information and any other information necessary to confirm that an applicant qualifies as a social equity applicant for all cannabis establishment license type applications submitted to the department and designated by the applicant as a social equity applicant. The Social Equity Council shall prescribe the documentation necessary for applicants to submit to establish that the ownership, residency and income requirements for social equity applicants are met. On or before September 1, 2021, the Social Equity Council shall post such necessary documentation requirements on its Internet web site to inform applicants of such requirements prior to the start of the application period.

(b) Except as provided in section 21a-420o, prior to the first date that the department begins accepting applications for a license type, the department shall determine the maximum number of applications that shall be considered for such license type and post such information on its Internet web site. Fifty per cent of the maximum number of applications that shall be considered for each license type (1) shall be selected through a social equity lottery for such license type, and (2) shall be reserved by the department for social equity applicants. If, upon the close of the application period for a license type, the department receives more applications than the maximum number to be considered in total or to be reserved for social equity applicants as set forth in this subsection, a third-party lottery operator shall conduct a lottery to identify applications for review by the department and the Social Equity Council.

(A) Not be provided any application received after the close of the application period;

(B) Give equal weight to every complete application submitted during the application period; and

(2) For purposes of the lottery, the third-party lottery operator shall:

(A) Conduct an independent social equity lottery and general lottery for each license type that results in each application being randomly ranked starting with one and continuing sequentially; and

(B) Rank all applications in each lottery numerically according to the order in which they were drawn, including those that exceed the number to be considered, and identify for the department all applications to be considered.

(d) (1) Prior to submitting an application, an applicant that is a business entity shall register such business entity with the Secretary of the State to do business in this state, and include with such application an attestation that such applicant has so registered.

(2) No applicant shall apply more than once in any application period to the social equity lottery round, if applicable, or the general lottery round. The department shall review the list of all lottery applicants in the social equity lottery round and the general lottery round, independently for each such round, to determine whether any applicant has submitted more than one application under the same applicant name. Except as provided in subdivision (3) of this subsection, if the department determines that any applicant has submitted more than one application in the social equity lottery round or the general lottery round, all applications submitted in such round by such applicant shall be disqualified and the department shall remove all such applications from the pool of eligible applications the department provides to the third-party lottery operator for selection in such round.

(3) If a social equity application is entered into the general lottery round pursuant to subdivision (4) of subsection (e) of this section, thereby resulting in two entries by the same social equity applicant in the general lottery round, such entries shall not result in disqualification under subdivision (2) of this subsection. Such social equity applicant shall not be eligible to receive more than one license from any round of the general lottery. If such social equity applicant is selected twice for consideration in any general lottery round, the department shall disqualify the second such selection and request that the third-party lottery operator identify the next-ranked application in the applicable lottery.

(4) No disqualification under this subsection shall result in any refund of lottery fees.

(5) For the purpose of this subsection: (A) “Application period” means the established period of time within which the department may accept applications for a specific license type for the social equity or general lottery; and (B) “round” means each time a lottery is run to determine the ranking of applicants after the conclusion of an application period, either for the social equity lottery or the general lottery.

(e) (1) Upon receipt of an application for social equity consideration or, in the case where a social equity lottery is conducted, after such lottery applicants are selected, the department shall provide to the Social Equity Council the documentation received by the department during the application process that is required under subsection (a) of this section. No identifying information beyond what is necessary to establish social equity status shall be provided to the Social Equity Council. The Social Equity Council shall review the social equity applications to be considered as identified by the third-party lottery operator to determine whether the applicant meets the criteria for a social equity applicant. If the Social Equity Council determines that an applicant does not qualify as a social equity applicant, the application shall not be reviewed further for purposes of receiving a license designated for social equity applicants. The application shall be entered into the general lottery for the applicable license type and may be reviewed further if selected through such lottery, provided the applicant pays the additional amount necessary to pay the full fee for entry into such lottery within five business days of being notified by the Social Equity Council that such applicant does not qualify as a social equity applicant. Not later than thirty days after the Social Equity Council notifies an applicant of the Social Equity Council's determination that the applicant does not meet the criteria for a social equity applicant, the applicant may appeal from such determination to the Superior Court in accordance with section 4-183.

(2) Upon determination by the Social Equity Council that an application selected through the lottery process does not qualify for consideration as a social equity applicant, the department shall request that the third-party lottery operator identify the next-ranked application in the social equity lottery. This process may continue until the Social Equity Council has identified for further consideration the number of applications set forth on the department's web site pursuant to subsection (b) of this section or until there are no remaining social equity applications to be considered.

(3) For each license type, the Social Equity Council shall identify for the department the social equity applications that qualify as social equity applicants and that should be reviewed by the department for purposes of awarding a provisional license.

(4) Any application entered into, but not selected through, the social equity lottery shall not be reviewed as a social equity application, but shall be entered into the general lottery for the applicable license type.

(5) After receiving the list of selected social equity applications reviewed and approved by the Social Equity Council, the department shall notify the third-party lottery operator, which shall then conduct the independent general lottery for all remaining applicants for each license type, rank all general lottery applications numerically including those that exceed the number to be considered, and identify for the department all of the selected applications to be reviewed. The number of applications to be reviewed by the department shall consist of the applications ranked numerically one through the maximum number necessary to ensure that fifty per cent of the applications for each license type identified through the lottery process are selected from the social equity lottery and approved by the Social Equity Council.

(6) The numerical rankings created by the third-party lottery operator shall be confidential and shall not be subject to disclosure under the Freedom of Information Act, as defined in section 1-200.

(f) The department shall review each application to be considered, as identified by the third-party lottery operator or Social Equity Council, as applicable, to confirm such application is complete and to determine whether any application: (1) Includes a backer with a disqualifying conviction; (2) exceeds the cap set forth in section 21a-420i; or (3) has a backer who individually or in connection with a cannabis business in another state or country has an administrative finding or judicial decision that may substantively compromise the integrity of the cannabis program, as determined by the department, or that precludes its participation in this state's cannabis program.

(g) No additional backers may be added to a cannabis establishment application between the time of lottery entry, or any initial application for a license, and when a final license is awarded to the cannabis establishment, except, if a backer of an applicant or provisional licensee dies, the applicant or provisional licensee may apply to the commissioner to replace the deceased backer, provided if such applicant is a social equity applicant, the Social Equity Council shall review ownership to ensure such replacement would not cause the applicant to no longer qualify as a social equity applicant. A backer may be removed from a cannabis establishment application selected through the general lottery at any time upon notice to the department.

(h) If an applicant is disqualified on the basis of any of the criteria set forth in subsection (f) of this section, the entire application shall be denied, and such denial shall be a final decision of the department unless the applicant removes from such application all backers that would cause such denial not later than thirty days after the department sends notice to the applicant disclosing such denial. Any change to a social equity applicant shall be reviewed and approved by the Social Equity Council before such change is reviewed by the department. Not later than thirty days after the department sends notice to the applicant disclosing such denial, the applicant may appeal such denial to the Superior Court.

(i) For each application denied pursuant to subsection (f) of this section, the department may, within its discretion, request that the third-party lottery operator identify the next-ranked application in the applicable lottery. If the applicant that was denied was a social equity applicant, the next ranked social equity applicant shall first be reviewed by the Social Equity Council to confirm that the applicant qualifies as a social equity applicant prior to being further reviewed by the department. This process may continue until the department has identified for further consideration the number of applications equivalent to the maximum number set forth on its Internet web site pursuant to subsection (b) of this section. If the number of applications remaining is less than the maximum number posted on the department's Internet web site, the department shall award fewer licenses. To the extent the denials result in less than fifty per cent of applicants being social equity applicants, the department shall continue to review and issue provisional and final licenses for the remaining applications, but shall reopen the application period only for social equity applicants.

(j) All applicants selected in the lottery and not denied shall be provided a provisional license application, which shall be submitted in a form and manner prescribed by the commissioner. Lottery applicants shall have sixty days from the date they receive their provisional application to complete the application. The right to apply for a provisional license is nontransferable. Upon receiving a provisional application from an applicant, the department shall review the application for completeness and to confirm that all information provided is acceptable and in compliance with this section and any regulations adopted under this section. If a provisional application does not meet the standards set forth in this section, the applicant shall not be provided a provisional license. A provisional license issued by the department to an applicant on or before June 30, 2023, other than a provisional license issued pursuant to section 21a-420o, shall expire twenty-four months after the date on which the department issued such provisional license and shall not be renewed. A provisional license issued by the department to an applicant on or after July 1, 2023, other than a provisional license issued pursuant to section 21a-420o, shall expire after fourteen months and shall not be renewed. Upon granting a provisional license, the department shall notify the applicant of the project labor agreement requirements of section 21a-421e. A provisional licensee may apply for a final license of the license type for which the licensee applied during the initial application period. A provisional license shall be nontransferable. If the provisional application does not meet the standards set forth in this section or is not completed within sixty days, the applicant shall not receive a provisional license. The decision of the department not to award a provisional license shall be final and may be appealed in accordance with section 4-183. Nothing in this section shall prevent a provisional applicant from submitting an application for a future lottery.

(k) Final license applications shall be submitted on a form and in a manner approved by the commissioner and shall include, but not be limited to, the information set forth in this section, as well as evidence of the following:

(1) A contract with an entity providing an approved electronic tracking system as set forth in section 21a-421n;

(2) A right to occupy the location at which the cannabis establishment operation will be located;

(3) Any necessary local zoning approval for the cannabis establishment operation;

(4) A labor peace agreement complying with section 21a-421d has been entered into between the cannabis establishment and a bona fide labor organization, as defined in section 21a-421d;

(5) A certification by the applicant that a project labor agreement complying with section 21a-421e will be entered into by the cannabis establishment prior to construction of any facility to be used in the operation of a cannabis establishment;

(6) A social equity plan approved by the Social Equity Council;

(7) A workforce development plan approved by the Social Equity Council;

(8) Written policies for preventing diversion and misuse of cannabis and sales to underage persons; and

(9) All other security requirements set forth by the department based on the specific license type.

(l) At any point prior to the expiration of the provisional license, the department may award a provisional licensee a final license for the license type for which the licensee applied. Prior to receiving final license approval, a provisional licensee shall not possess, distribute, manufacture, sell or transfer cannabis. The department may conduct site inspections prior to issuing a final license.

(m) At any time after receiving a final license, a cannabis establishment may begin operations, provided all other requirements for opening a business in compliance with the laws of this state are complete and all employees have been registered and all key employees and backers have been licensed, with the department.

(June Sp. Sess. P.A. 21-1, S. 35; P.A. 23-79, S. 25.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 23-79 amended Subsec. (a) by substituting “cannabis establishment license type” for “license type”, amended Subsec. (c)(2)(A) by substituting “independent social equity lottery and general lottery” for “independent lottery”, amended Subsec. (c)(2)(B) by deleting provision re numerical ranking of applications, added new Subsec. (d) requiring applicant business entities to register with Secretary of the State, establishing maximum number of applications per lottery round and establishing additional procedural requirements re each lottery round, redesignated existing Subsec. (d) as Subsec. (e) and substantially amended same including provisions re conduct of lotteries, redesignated existing Subsec. (e) as Subsec. (f), redesignated existing Subsec. (f) as Subsec. (g) and added provision to same re removal of backer from cannabis establishment application selected through general lottery, redesignated existing Subsec. (g) as Subsec. (h) and substantially amended same including provisions re removal of disqualified backer from denied application, redesignated existing Subsec. (h) as Subsec. (i), redesignated existing Subsec. (i) as Subsec. (j) and substantially amended same including provisions re expiration of provisional licenses, redesignated existing Subsecs. (j) to (l) as Subsecs. (k) to (m), and made technical and conforming changes throughout, effective June 26, 2023.

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Sec. 21a-420j. Creation of equity joint ventures by cultivator. Requirements. Limitations. Fees. (a) A cultivator licensed under section 21a-420o may create not more than two equity joint ventures to be approved by the Social Equity Council under section 21a-420d, and licensed by the department under this section. The equity joint venture shall be in any cannabis establishment licensed business, other than a cultivator license.

(b) The equity joint venture applicant shall submit an application to the Social Equity Council that may include, but need not be limited to, evidence of business formation, ownership allocation, terms of ownership and financing and proof of social equity status. The equity joint venture applicant shall submit to the Social Equity Council information including, but not limited to, the organizing documents of the entity that outline the ownership stake of each backer, initial backer investment and payout information to enable the council to determine the terms of ownership.

(c) Upon obtaining the written approval of the Social Equity Council for an equity joint venture, the equity joint venture applicant shall apply for a license from the department in the same form as required by all other licensees of the same license type, except that such application shall not be subject to the lottery.

(d) A cultivator licensed under section 21a-420o, including the backer of such cultivator, shall not increase its ownership in an equity joint venture in excess of fifty per cent during the seven-year period after a license is issued by the department under this section.

(e) Equity joint ventures that are retailers or hybrid retailers that share a common cultivator backer or owner shall not be located within twenty miles of each other.

(f) An equity joint venture applicant shall pay fifty per cent of the amount of any applicable fee specified in subsection (c) of section 21a-420e for the first three renewal cycles of the applicable cannabis establishment license applied for, and shall pay the full amount of such fee thereafter.

(P.A. 22-103, S. 5; P.A. 23-79, S. 26.)

History: P.A. 22-103 effective May 24, 2022; P.A. 23-79 amended Subsec. (e) by establishing requirements re proximity of equity joint ventures that are retailers or hybrid retailers and share a common cultivator backer or owner, effective July 1, 2023.

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Sec. 21a-420l. Authorization for expanded activity of producer. Social equity partnership. (a) In addition to activity permitted under chapter 420f, a producer may sell, deliver, transfer, transport, manufacture or package cannabis utilizing a transporter or the producer's own employees, to cannabis establishments, upon authorization for such expanded activity in writing by the commissioner, provided a producer may not transport any cannabis to consumers, patients or caregivers directly or through a delivery service.

(b) To obtain approval from the commissioner to engage in expanded activity as described in subsection (a) of this section, a producer shall submit (1) a complete license expansion application on a form prescribed by the commissioner, (2) a medical cannabis preservation plan, to ensure against supply shortages of medical marijuana products, which shall be approved or denied at the commissioner's discretion, (3) payment of a conversion fee of three million dollars, provided, if the producer participates in at least two approved equity joint ventures as described in section 21a-420m, such fee shall be one million five hundred thousand dollars, (4) a workforce development plan in accordance with requirements developed by the Social Equity Council, that has been reviewed and approved by the Social Equity Council in accordance with section 21a-420d, and (5) (A) a contribution of five hundred thousand dollars to the Social Equity Council for the program established by the council in accordance with subsection (l) of section 21a-420d, or (B) evidence of an agreement with a social equity partner pursuant to subsection (c) of this section.

(c) Any producer seeking to obtain approval under subsection (b) of this section may enter into an agreement with a social equity partner to provide such partner five per cent of the grow space associated with the expanded activity of the producer, to establish a social equity business. The producer shall provide to the social equity partner, for a period of not less than five years, mentorship and all overhead costs that are necessary to ensure success, as determined by the Social Equity Council and codified in an agreement between the social equity partner and producer. The producer shall ensure that the social equity partner complies with the cannabis cultivation, testing, labeling, tracking, reporting and manufacturing provisions of RERACA as they apply to cultivators. The social equity partner shall own, and be entitled to, one hundred per cent of the profits of the social equity business established under this subsection. The Social Equity Council may require evidence of a social equity partnership that includes, but need not be limited to, evidence of business formation, ownership allocation, terms of ownership and financing and proof of social equity applicant involvement. The producer or social equity partner shall submit to the Social Equity Council information including, but not limited to, the organizing documents of the entity that outline the ownership stake of each backer, initial backer investment and payout information to enable the council to determine the terms of ownership. Prior to submitting the agreement to the department, the social equity partner and business agreement shall be approved by the Social Equity Council.

(d) For purposes of this section, “social equity partner” means a person that is controlled, and at least sixty-five per cent owned, by an individual or individuals, or such applicant is an individual, who:

(1) Had an average household income of less than three hundred per cent of the state median household income over the three tax years immediately preceding such individual's application; and

(2) (A) Was a resident of a disproportionately impacted area for not less than five of the ten years immediately preceding the date of such application; or

(B) Was a resident of a disproportionately impacted area for not less than nine years prior to attaining the age of eighteen.

(June Sp. Sess. P.A. 21-1, S. 26; P.A. 23-79, S. 27.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 23-79 made a conforming change in Subsec. (d), effective July 1, 2023.

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Sec. 21a-420m. Creation of equity joint ventures by producer. Requirements. Limitations. Fees. (a) In order to pay a reduced license expansion authorization fee as described in subsection (b) of section 21a-420l, a producer shall commit to create two equity joint ventures to be approved by the Social Equity Council under section 21a-420d and licensed by the department under this section.

(b) The equity joint venture shall be in any cannabis establishment licensed business, other than a cultivator license, provided such equity joint venture is at least fifty per cent owned and controlled by an individual or individuals who meet, or the equity joint venture applicant is an individual who meets, the criteria established in subparagraphs (A) and (B) of subdivision (50) of section 21a-420.

(c) The equity joint venture applicant shall submit an application to the Social Equity Council that may include, but need not be limited to, evidence of business formation, ownership allocation, terms of ownership and financing and proof of social equity status. The equity joint venture applicant shall submit to the Social Equity Council information including, but not limited to, the organizing documents of the entity that outline the ownership stake of each backer, initial backer investment and payout information to enable the council to determine the terms of ownership.

(d) Upon obtaining the written approval of the Social Equity Council for an equity joint venture, the equity joint venture applicant shall apply for a license from the department in the same form as required by all other licensees of the same license type, except that such application shall not be subject to the lottery.

(e) A producer, including the backer of such producer, shall not increase its ownership in an equity joint venture in excess of fifty per cent during the seven-year period after a license is issued by the department under this section.

(f) Equity joint ventures that are retailers or hybrid retailers that share a common producer backer or owner shall not be located within twenty miles of each other.

(g) If a producer has paid a reduced conversion fee, as described in subsection (b) of section 21a-420l, and subsequently did not create two equity joint ventures under this section that, not later than fourteen months after the Department of Consumer Protection approved the producer's license expansion application under section 21a-420l, each received a final license from the department, the producer shall be liable for the full conversion fee of three million dollars established in section 21a-420l minus such paid reduced conversion fee.

(h) No producer that receives license expansion authorization under section 21a-420l shall create more than two equity joint ventures. No such producer shall apply for, or create, any additional equity joint venture if, on July 1, 2021, such producer has created at least two equity joint ventures that have each received a provisional license.

(i) An equity joint venture applicant shall pay fifty per cent of the amount of any applicable fee specified in subsection (c) of section 21a-420e for the first three renewal cycles of the applicable cannabis establishment license applied for, and shall pay the full amount of such fee thereafter.

(June Sp. Sess. P.A. 21-1, S. 27; P.A. 22-103, S. 6; P.A. 23-79, S. 28.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 22-103 amended Subsec. (b) by adding provision re equity joint venture be at least 50 per cent owned or controlled by individual or individuals who meet, or equity joint venture applicant be individual who meets, criteria established in Sec. 21a-420(48)(A) and (B), Subsecs. (c) and (d) by substituting references to equity joint venture applicant for references to producer and social equity applicant and Subsec. (g) by adding provisions re 14 month period for receipt of final license and deduction for paid reduced conversion fee, added Subsec. (h) limiting number of equity joint ventures and Subsec. (i) re reduced fees, and made technical and conforming changes, effective May 24, 2022; P.A. 23-79 substantially amended Subsec. (f) re proximity of equity joint ventures that are retailers or hybrid retailers, and made technical and conforming changes in Subsecs. (b) and (f), effective July 1, 2023; (Revisor's note: In 2024, a reference to “the effective date of this section” in Subsec. (h) was changed editorially by the Revisors to “July 1, 2021” for accuracy).

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Sec. 21a-420n. Cultivator license. (a) On and after July 1, 2021, the department may issue or renew a license for a person to be a cultivator. No person may act as a cultivator or represent that such person is a licensed cultivator unless such person has obtained a license from the department pursuant to this section.

(b) A cultivator is authorized to cultivate, grow and propagate cannabis at an establishment containing not less than fifteen thousand square feet of grow space, provided such cultivator complies with the provisions of any regulations adopted under section 21a-420q concerning grow space. A cultivator establishment shall meet physical security controls and protocols set forth and required by the commissioner.

(c) A cultivator may label, manufacture, package and perform extractions on any cannabis cultivated, grown or propagated at its licensed establishment, including food and beverage products incorporating cannabis and cannabis concentrates, provided the cultivator meets all licensure and application requirements for a food and beverage manufacturer and a product manufacturer.

(d) A cultivator may sell, transfer or transport its cannabis to a dispensary facility, hybrid retailer, retailer, food and beverage manufacturer, product manufacturer, research program, cannabis testing laboratory or product packager utilizing its own employees or a transporter. A cultivator shall not sell, transfer or deliver to consumers, qualifying patients or caregivers, directly or through a delivery service.

(June Sp. Sess. P.A. 21-1, S. 48; P.A. 23-79, S. 29.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 23-79 amended Subsec. (d) by substituting “cannabis testing laboratory” for “laboratory”, effective July 1, 2023.

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Sec. 21a-420o. Provisional cultivator license for social equity applicants. Final license for facility in disproportionately impacted area. (a) Thirty days after the Social Equity Council posts the criteria for social equity applicants on its Internet web site, the department shall open up a three-month application period for cultivators during which a social equity applicant may apply to the department for a provisional cultivator license and final license for a cultivation facility located in a disproportionately impacted area without participating in a lottery or request for proposals. Such application for a provisional license shall be granted upon (1) verification by the Social Equity Council that the applicant meets the criteria for a social equity applicant; (2) the applicant submitting to and passing a criminal background check; and (3) payment of a three-million-dollar fee to be deposited in the Cannabis Social Equity and Innovation Fund established in section 21a-420f. Upon granting such provisional license, the department shall notify the applicant of the project labor agreement requirements of section 21a-421e.

(b) To obtain a final cultivator license under this section, the social equity applicant shall provide evidence of (1) a contract with an entity providing an approved electronic tracking system as described in section 21a-421n; (2) a right to exclusively occupy a location in a disproportionately impacted area at which the cultivation facility will be located; (3) any necessary local zoning approval and permits for the cultivation facility; (4) a business plan; (5) a social equity plan approved by the Social Equity Council; (6) written policies for preventing diversion and misuse of cannabis and sales of cannabis to underage persons; and (7) blueprints of the facility and all other security requirements of the department.

(June Sp. Sess. P.A. 21-1, S. 149; P.A. 23-204, S. 123.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 23-204 amended Subsec. (a) by substituting “Cannabis Social Equity and Innovation Fund” for “Social Equity and Innovation Fund”, effective July 1, 2023.

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Sec. 21a-420p. Micro-cultivator license. (a) On and after July 1, 2021, the department may issue or renew a license for a person to be a micro-cultivator. No person may act as a micro-cultivator or represent that such person is a licensed micro-cultivator unless such person has obtained a license from the department pursuant to this section.

(b) A micro-cultivator is authorized to cultivate, grow, propagate, manufacture and package the cannabis plant at an establishment containing not less than two thousand square feet and not more than ten thousand square feet of grow space, prior to any expansion authorized by the commissioner, provided such micro-cultivator complies with the provisions of any regulations adopted under section 21a-420q concerning grow space. A micro-cultivator business shall meet physical security controls set forth and required by the commissioner.

(c) A micro-cultivator may apply for expansion of its grow space, in increments of five thousand square feet, on an annual basis, from the date of initial licensure, if such licensee is not subject to any pending or final administrative actions or judicial findings. If there are any pending or final administrative actions or judicial findings against the licensee, the department shall conduct a suitability review to determine whether such expansion shall be granted, which determination shall be final and appealable only to the Superior Court. The micro-cultivator may apply for an expansion of its business annually upon renewal of its credential until such licensee reaches a maximum of twenty-five thousand square feet of grow space. If a micro-cultivator desires to expand beyond twenty-five thousand square feet of grow space, the micro-cultivator licensee may apply for a cultivator license one year after its last expansion request. The micro-cultivator licensee shall not be required to apply through the lottery application process to convert its license to a cultivator license. If a micro-cultivator maintains its license and meets all of the application and licensure requirements for a cultivator license, including payment of the cultivator license fee established under section 21a-420e, the micro-cultivator licensee shall be granted a cultivator license.

(d) A micro-cultivator may label, manufacture, package and perform extractions on any cannabis cultivated, grown and propagated at its licensed establishment provided it meets all licensure and application requirements for a food and beverage manufacturer, product manufacturer or product packager, as applicable.

(e) A micro-cultivator may sell, transfer or transport its cannabis to a dispensary facility, hybrid retailer, retailer, delivery service, food and beverage manufacturer, product manufacturer, research program, cannabis testing laboratory or product packager, provided the cannabis is cultivated, grown and propagated at the micro-cultivator's licensed establishment and transported utilizing the micro-cultivator's own employees or a transporter. A micro-cultivator shall not gift or transfer cannabis or cannabis products at no cost to a consumer as part of a commercial transaction.

(f) A micro-cultivator may sell its own cannabis to consumers, excluding qualifying patients and caregivers, either through a delivery service or utilizing its own employees, subject to the requirements of subsection (b) of section 21a-420c. Any micro-cultivator that engages in the delivery of cannabis shall maintain a secure location, in a manner approved by the commissioner, at the micro-cultivator's premises where cannabis that is unable to be delivered may be returned to the micro-cultivator. Such secure cannabis return location shall meet specifications set forth by the commissioner and published on the department's Internet web site or included in regulations adopted by the department. A micro-cultivator shall cease delivery of cannabis to consumers if it converts to being a cultivator.

(June Sp. Sess. P.A. 21-1, S. 49; P.A. 23-79, S. 30.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 23-79 amended Subsec. (e) by substituting “cannabis testing laboratory” for “laboratory”, effective July 1, 2023.

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Sec. 21a-420r. Retailer license. (a) On and after July 1, 2021, the department may issue or renew a license for a person to be a retailer. No person may act as a retailer or represent that such person is a retailer unless such person has obtained a license from the department pursuant to this section.

(b) A retailer may obtain cannabis from a cultivator, micro-cultivator, producer, product packager, food and beverage manufacturer, product manufacturer or transporter or an undeliverable return from a delivery service. A retailer may sell, transport or transfer cannabis or cannabis products to a delivery service, cannabis testing laboratory or research program. A retailer may sell cannabis to a consumer or research program. A retailer may not conduct sales of medical marijuana products nor offer discounts or other inducements to qualifying patients or caregivers. A retailer shall not gift or transfer cannabis at no cost to a consumer as part of a commercial transaction.

(c) Retailers shall maintain a secure location, in a manner approved by the commissioner, at the licensee's premises where cannabis that is unable to be delivered by an employee or delivery service may be returned to the retailer. Such secure cannabis return location shall meet specifications set forth by the commissioner and published on the department's Internet web site or included in regulations adopted by the department.

(d) A retailer may deliver cannabis through a delivery service or by utilizing its own employees, subject to the provisions of subsection (b) of section 21a-420c.

(e) Manufacturer hemp products, as defined in section 22-61l, may be sold within a retailer facility, provided such manufacturer hemp products are:

(1) Stored separately from cannabis and cannabis products;

(2) Separated, by a physical separation, from cannabis and cannabis products in any display area;

(3) Displayed with signage approved by the department;

(4) Tested by a laboratory that meets the standards for accreditation and testing, and sampling methods, set forth for an independent testing laboratory in section 22-61m, which laboratory may be located outside of this state;

(5) Clearly labeled to distinguish the product as (A) a manufacturer hemp product, (B) subject to different testing standards than cannabis, and (C) not cannabis or a cannabis product; and

(6) Sold in accordance with this chapter, chapter 424 and any regulations adopted pursuant to said chapters.

(June Sp. Sess. P.A. 21-1, S. 41; P.A. 23-79, S. 31; 23-166, S. 2.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 23-79 amended Subsec. (b) by substituting “cannabis testing laboratory” for “laboratory”, effective July 1, 2023; P.A. 23-166 added Subsec. (e) re sales of manufacturer hemp products, effective July 1, 2023.

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Sec. 21a-420s. Hybrid retailer license. (a) On and after July 1, 2021, the department may issue or renew a license for a hybrid retailer. No person may act as a hybrid retailer or represent that such person is a hybrid retailer unless such person has obtained a license from the department pursuant to this section.

(b) A hybrid retailer may obtain cannabis from a cultivator, micro-cultivator, producer, product packager, food and beverage manufacturer, product manufacturer or transporter. In addition to the activities authorized under section 21a-420t, a hybrid retailer may sell, transport or transfer cannabis to a delivery service, cannabis testing laboratory or research program. A hybrid retailer may sell cannabis products to a consumer or research program. A hybrid retailer shall not gift or transfer cannabis at no cost to a consumer, qualifying patient or caregiver as part of a commercial transaction.

(c) In addition to conducting general retail sales, a hybrid retailer may sell cannabis and medical marijuana products, to qualifying patients and caregivers. Any cannabis or medical marijuana products sold to qualifying patients and caregivers shall be dispensed by a licensed pharmacist and shall be recorded in the electronic prescription drug monitoring program, established pursuant to section 21a-254, in real-time or immediately upon completion of the transaction, unless not reasonably feasible for a specific transaction, but in no case longer than one hour after completion of the transaction. Only a licensed pharmacist or dispensary technician may upload or access data in the prescription drug monitoring program.

(d) A hybrid retailer shall maintain a licensed pharmacist on premises at all times when the hybrid retail location is open to the public or to qualifying patients and caregivers.

(e) The hybrid retailer location shall include a private consultation space for pharmacists to meet with qualifying patients and caregivers. Additionally, the hybrid retailer premises shall accommodate an expedited method of entry that allows for priority entrance into the premises for qualifying patients and caregivers.

(f) Hybrid retailers shall maintain a secure location, in a manner approved by the commissioner, at the licensee's premises where cannabis that is unable to be delivered may be returned to the hybrid retailer. Such secure cannabis return location shall meet specifications set forth by the commissioner and published on the department's Internet web site or included in regulations adopted by the department.

(g) Cannabis dispensed to a qualifying patient or caregiver that are unable to be delivered and are returned by the delivery service to the hybrid retailer shall be returned to the licensee inventory system and removed from the prescription drug monitoring program not later than forty-eight hours after receipt of the cannabis from the delivery service.

(h) A hybrid retailer may not convert its license to a retailer license. To obtain a retailer license, a hybrid retailer shall apply through the lottery application process. A hybrid retailer may convert to a dispensary facility if the hybrid retailer complies with all applicable provisions of chapter 420f, and upon written approval by the department.

(i) Manufacturer hemp products, as defined in section 22-61l, may be sold within a hybrid retailer facility, provided such manufacturer hemp products are:

(1) Stored separately from cannabis and cannabis products;

(2) Separated, by a physical separation, from cannabis and cannabis products in any display area;

(3) Displayed with signage approved by the department;

(5) Clearly labeled to distinguish the product as (A) a manufacturer hemp product, (B) subject to different testing standards than cannabis, and (C) not cannabis or a cannabis product; and

(6) Sold in accordance with this chapter, chapter 424 and any regulations adopted pursuant to said chapters.

(June Sp. Sess. P.A. 21-1, S. 42; P.A. 23-79, S. 32; 23-166, S. 3.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 23-79 amended Subsec. (b) by substituting “cannabis testing laboratory” for “laboratory”, effective July 1, 2023; P.A. 23-166 added Subsec. (i) re sales of manufacturer hemp products, effective July 1, 2023.

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Sec. 21a-420u. Workforce development plan required for conversion to dispensary facility to hybrid retailer. Equity joint ventures: Application, approval requirements and limitations. Fees. (a) In order for a dispensary facility to convert its license to a hybrid-retailer license, a dispensary facility shall have a workforce development plan that has been approved by the Social Equity Council under section 21a-420d and shall either pay the fee of one million dollars established in section 21a-420e or, if such dispensary facility has committed to create one equity joint venture to be approved by the Social Equity Council for ownership purposes under section 21a-420d and subsequent to obtaining such approval, approved by the department for licensure under this section, pay a reduced fee of five hundred thousand dollars.

(b) Any equity joint venture created under this section shall be created for the development of a cannabis establishment, other than a cultivator, provided such equity joint venture is at least fifty per cent owned and controlled by an individual or individuals who meet, or the equity joint venture applicant is an individual who meets, the criteria established in subparagraphs (A) and (B) of subdivision (50) of section 21a-420.

(c) An equity joint venture applicant shall submit an application to the Social Equity Council that may include, but need not be limited to, evidence of business formation, ownership allocation, terms of ownership and financing and proof of social equity status. The equity joint venture applicant shall submit to the Social Equity Council information including, but not limited to, the organizing documents of the entity that outline the ownership stake of each backer, initial backer investment and payout information to enable the council to determine the terms of ownership.

(d) Upon receipt of written approval of the equity joint venture by the Social Equity Council, the equity joint venture applicant shall apply for a license from the department in the same form as required by all other licensees of the same license type and subject to the same fees as required by all other licensees of the same license type, except that such application shall not be subject to the lottery process.

(e) A dispensary facility, including the backers of such dispensary facility, shall not increase its ownership in an equity joint venture in excess of fifty per cent during the seven-year period after a license is issued by the department under this section.

(f) Equity joint ventures that are retailers or hybrid retailers that share a common dispensary facility backer or owner, or hybrid retailer backer or owner, shall not be located within twenty miles of each other.

(g) If a dispensary facility has paid the reduced conversion fee, in accordance with subsection (a) of this section, and did not subsequently create one equity joint venture under this section that, not later than fourteen months after the Department of Consumer Protection approved the dispensary facility's license conversion application under section 21a-420t, receives a final license from the department, the dispensary facility shall be liable for the full conversion fee of one million dollars established in section 21a-420e minus such paid reduced conversion fee.

(h) No dispensary facility that receives approval to convert the dispensary facility's license to a hybrid-retailer license under section 21a-420t shall create more than two equity joint ventures. No such dispensary facility shall apply for, or create, any additional equity joint venture if, on July 1, 2021, such dispensary facility has created at least two equity joint ventures that have each received a provisional license.

(June Sp. Sess. P.A. 21-1, S. 145; P.A. 22-103, S. 7; P.A. 23-79, S. 33.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 22-103 amended Subsec. (b) by adding provision re equity joint venture not be cultivator and be at least 50 per cent owned or controlled by individual or individuals who meet, or equity joint venture applicant be individual who meets, criteria established in Sec. 21a-420(48)(A) and (B), Subsec. (c) by deleting provisions re social equity applicant involvement, evidence of business formation, ownership allocation and terms of ownership and financing, Subsec. (d) by substituting reference to equity joint venture applicant for reference to dispensary facility and social equity applicant and Subsec. (g) by adding provisions re 14 month period for receipt of final license and deduction for paid reduced conversion fee, added Subsec. (h) limiting number of equity joint ventures and Subsec. (i) re reduced fees, and made technical and conforming changes, effective May 24, 2022; P.A. 23-79 amended Subsec. (d) by adding provision re exception to lottery process, amended Subsec. (f) re proximity of equity joint ventures that are retailers or hybrid retailers, and made technical and conforming changes in Subsecs. (b) and (f), effective July 1, 2023; (Revisor's note: In 2024, a reference to “the effective date of this section” in Subsec. (h) was changed editorially by the Revisors to “July 1, 2021” for accuracy).

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Sec. 21a-420w. Food and beverage manufacturer license. (a) On and after July 1, 2021, the department may issue or renew a license for a person to be a food and beverage manufacturer. No person may act as a food and beverage manufacturer or represent that such person is a licensed food and beverage manufacturer unless such person has obtained a license from the department pursuant to this section.

(b) A food and beverage manufacturer may incorporate cannabis into foods or beverages as an ingredient. A food and beverage manufacturer shall not perform extraction of cannabis into a cannabis concentrate nor create any product that is not a food or beverage intended to be consumed by humans.

(c) A food and beverage manufacturer may package or label any food or beverage prepared by the food and beverage manufacturer at the establishment subject to the license.

(d) A food and beverage manufacturer may sell, transfer or transport its own products to a cannabis establishment, cannabis testing laboratory or research program, utilizing its employees or a transporter. A food and beverage manufacturer may not deliver any cannabis, cannabis products or food or beverage incorporating cannabis to a consumer, directly or through a delivery service.

(e) All products created by a food and beverage manufacturer shall be labeled in accordance with the policies and procedures issued by the commissioner to implement, and any regulations adopted pursuant to, RERACA as well as federal Food and Drug Administration and United States Department of Agriculture requirements.

(f) A food and beverage manufacturer shall ensure all equipment utilized for manufacturing, processing and packaging cannabis is sanitary and inspected regularly to deter the adulteration of cannabis in accordance with RERACA as well as federal Food and Drug Administration and United States Department of Agriculture requirements.

(g) (1) A food and beverage manufacturer may expand the food and beverage manufacturer's authorized activities to include the authorized activities of a product manufacturer if: (A) The food and beverage manufacturer submits to the department (i) a completed license expansion application on a form and in a manner prescribed by the commissioner, and (ii) the fee prescribed in subparagraph (B) of subdivision (6) of subsection (c) of section 21a-420e; and (B) the commissioner authorizes the food and beverage manufacturer, in writing, to expand such food and beverage manufacturer's authorized activities to include the authorized activities of a product manufacturer.

(2) A food and beverage manufacturer that expands the food and beverage manufacturer's authorized activities to include the authorized activities of a product manufacturer under this subsection shall comply with all provisions of this chapter, and all regulations, policies and procedures prescribed pursuant to this chapter, concerning product manufacturers. In the event of a conflict between any provision of this chapter, or any regulation, policy or procedure prescribed pursuant to this chapter, concerning food and beverage manufacturers and any such provision, regulation, policy or procedure concerning product manufacturers, the provision, regulation, policy or procedure imposing the more stringent public health and safety standard shall prevail.

(June Sp. Sess. P.A. 21-1, S. 44; P.A. 23-79, S. 34.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 23-79 amended Subsec. (d) by substituting “cannabis testing laboratory” for “laboratory” and added Subsec. (g) re expansion of food and beverage manufacturer's authorized activities to include authorized activities of product manufacturer, effective July 1, 2023.

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Sec. 21a-420x. Product manufacturer license. (a) On and after July 1, 2021, the department may issue or renew a license for a person to be a product manufacturer. No person may act as a product manufacturer or represent that such person is a licensed product manufacturer unless such person has obtained a license from the department pursuant to this section.

(b) A product manufacturer may perform cannabis extractions, chemical synthesis and all other manufacturing activities authorized by the commissioner and published on the department's Internet web site.

(d) A product manufacturer may sell, transfer or transport its own products to a cannabis establishment, cannabis testing laboratory or research program, provided such transportation is performed by utilizing its own employees or a transporter. A product manufacturer may not deliver any cannabis to a consumer directly or through a delivery service.

(e) All products created by a product manufacturer shall be labeled in accordance with the policies and procedures issued by the commissioner to implement, and any regulations adopted pursuant to, RERACA as well as federal Food and Drug Administration requirements.

(f) A product manufacturer shall ensure all equipment utilized for manufacturing, extracting, processing and packaging cannabis is sanitary and inspected regularly to deter the adulteration of cannabis in accordance with RERACA as well as federal Food and Drug Administration requirements.

(g) (1) A product manufacturer may expand the product manufacturer's authorized activities to include the authorized activities of a food and beverage manufacturer if: (A) The product manufacturer submits to the department (i) a completed license expansion application on a form and in a manner prescribed by the commissioner, and (ii) the fee prescribed in subparagraph (B) of subdivision (5) of subsection (c) of section 21a-420e; and (B) the commissioner authorizes the product manufacturer, in writing, to expand such product manufacturer's authorized activities to include the authorized activities of a food and beverage manufacturer.

(2) All equipment that a product manufacturer utilizes to manufacture edible cannabis products shall be sanitary and regularly inspected in accordance with all applicable requirements established: (A) In this chapter and the regulations, policies and procedures adopted pursuant to this chapter; (B) by the United States Department of Agriculture; and (C) by the United States Food and Drug Administration.

(3) A product manufacturer shall label all edible cannabis products that such product manufacturer manufactures in accordance with all applicable requirements established: (A) In this chapter and the regulations, policies and procedures adopted pursuant to this chapter; (B) by the United States Department of Agriculture; and (C) by the United States Food and Drug Administration.

(4) A product manufacturer that expands the product manufacturer's authorized activities to include the authorized activities of a food and beverage manufacturer under this subsection shall comply with all provisions of this chapter, and all regulations, policies and procedures prescribed pursuant to this chapter, concerning food and beverage manufacturers. In the event of a conflict between any provision of this chapter, or any regulation, policy or procedure prescribed pursuant to this chapter, concerning product manufacturers and any such provision, regulation, policy or procedure concerning food and beverage manufacturers, the provision, regulation, policy or procedure imposing the more stringent public health and safety standard shall prevail.

(June Sp. Sess. P.A. 21-1, S. 45; P.A. 23-79, S. 35.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 23-79 amended Subsec. (d) by substituting “cannabis testing laboratory” for “laboratory” and added Subsec. (g) re expansion of product manufacturer's authorized activities to include authorized activities of food and beverage manufacturer, effective July 1, 2023.

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Sec. 21a-420y. Product packager license. (a) On and after July 1, 2021, the department may issue or renew a license for a person to be a product packager. No person may act as a product packager or represent that such person is a product packager unless such person has obtained a license from the department pursuant to this section.

(b) A product packager may obtain cannabis from a producer, cultivator, micro-cultivator, food and beverage manufacturer or a product manufacturer, provided the product packager utilizes its own employees or a transporter. The product packager may sell, transfer or transport cannabis to and from any cannabis establishment, cannabis testing laboratory or research program, provided the product packager only transports cannabis packaged at its licensed establishment and utilizing its own employees or a transporter.

(c) A product packager shall be responsible for ensuring that cannabis products are labeled and packaged in compliance with the provisions of RERACA and the policies and procedures issued by the commissioner to implement, and any regulations adopted pursuant to, RERACA.

(d) A product packager shall ensure all equipment utilized for processing and packaging cannabis is sanitary and inspected regularly to deter the adulteration of cannabis.

(June Sp. Sess. P.A. 21-1, S. 46; P.A. 23-79, S. 36.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 23-79 amended Subsec. (b) by adding provision re product packager utilize its own employees or transporter, adding “and from” and substituting “cannabis testing laboratory” for “laboratory”, effective July 1, 2023.

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Sec. 21a-420z. Delivery service and transporter licenses. Regulations and policies and procedures. Registration of delivery service employees. (a) On and after July 1, 2021, the department may issue or renew a license for a person to be a delivery service or a transporter. No person may act as a delivery service or transporter or represent that such person is a licensed delivery service or transporter unless such person has obtained a license from the department pursuant to this section.

(b) Upon application for a delivery service or transporter license, the applicant shall indicate whether the applicant is applying to transport cannabis (1) between cannabis establishments, in which case the applicant shall apply for a transporter license, or (2) from certain cannabis establishments to consumers or qualifying patients and caregivers, or a combination thereof, in which case the applicant shall apply for a delivery service license.

(c) A delivery service may (1) deliver cannabis from a micro-cultivator, retailer, or hybrid retailer directly to a consumer, and (2) deliver cannabis and medical marijuana products from a hybrid retailer or dispensary facility directly to a qualifying patient, caregiver, or hospice or other inpatient care facility licensed by the Department of Public Health pursuant to chapter 368v that has protocols for the handling and distribution of cannabis that have been approved by the Department of Consumer Protection. A delivery service may not store or maintain control of cannabis or medical marijuana products for more than twenty-four hours between the point when a consumer, qualifying patient, caregiver or facility places an order, until the time that the cannabis or medical marijuana product is delivered to such consumer, qualifying patient, caregiver or facility.

(d) A transporter may deliver cannabis between cannabis establishments, research programs and cannabis testing laboratories and shall not store or maintain control of cannabis for more than twenty-four hours from the time the transporter obtains the cannabis from a cannabis establishment, research program or cannabis testing laboratory until the time such cannabis is delivered to the destination.

(e) The commissioner shall adopt regulations, in accordance with chapter 54, to implement the provisions of RERACA. Notwithstanding the requirements of sections 4-168 to 4-172, inclusive, in order to effectuate the purposes of RERACA and protect public health and safety, prior to adopting such regulations the commissioner shall issue policies and procedures to implement the provisions of this section that shall have the force and effect of law. The commissioner shall post all policies and procedures on the department's Internet web site, and submit such policies and procedures to the Secretary of the State for posting on the eRegulations System, at least fifteen days prior to the effective date of any policy or procedure. Any such policy or procedure shall no longer be effective upon the earlier of either adoption of such policy or procedure as a final regulation under section 4-172 or forty-eight months from July 1, 2021, if such final regulations have not been submitted to the legislative regulation review committee for consideration under section 4-170. The commissioner shall issue policies and procedures, and thereafter adopt final regulations, requiring that: (1) The delivery service and transporter meet certain security requirements related to the storage, handling and transport of cannabis, the vehicles employed, the conduct of employees and agents, and the documentation that shall be maintained by the delivery service, transporter and its drivers; (2) a delivery service that delivers cannabis to consumers maintain an online interface that verifies the age of consumers ordering cannabis for delivery and meets certain specifications and data security standards; and (3) a delivery service that delivers cannabis to consumers, qualifying patients or caregivers, and all employees and agents of such licensee, to verify the identity of the qualifying patient, caregiver or consumer and the age of the consumer upon delivery of cannabis to the end consumer, qualifying patient or caregiver, in a manner acceptable to the commissioner. The individual placing the cannabis order shall be the individual accepting delivery of the cannabis except, in the case of a qualifying patient, the individual accepting the delivery may be the caregiver of such qualifying patient.

(f) A delivery service shall not gift or transfer cannabis at no cost to a consumer or qualifying patient or caregiver as part of a commercial transaction.

(g) A delivery service that employs twelve or more individuals to deliver cannabis pursuant to subsection (c) of this section may only use individuals employed on a full-time basis, not less than thirty-five hours a week, to deliver cannabis pursuant to subsection (c) of this section. Any delivery service employees who deliver cannabis shall be registered with the department, and a delivery service shall not employ more than twenty-five such delivery employees at any given time.

(h) No provision of this section shall be construed to excuse any delivery service from the requirement that such delivery service enter into a labor peace agreement with a bona fide labor organization under section 21a-421d.

(June Sp. Sess. P.A. 21-1, S. 47; P.A. 22-70, S. 10; P.A. 23-79, S. 37.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 22-70 made a technical change in Subsec. (e)(3); P.A. 23-79 amended Subsec. (d) by substituting “cannabis testing laboratory” for “laboratory”, amended Subsec. (g) by adding provision re employment of twelve or more individuals to deliver cannabis pursuant to Subsec. (c) and added Subsec. (h) re labor peace agreements, effective July 1, 2023.

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Sec. 21a-421a. Registration requirement for employees of cannabis establishment, cannabis testing laboratory or research program. Licensure requirement for backers and key employees. Application requirements. Notice requirements. Regulations. (a) Each employee of a cannabis establishment, cannabis testing laboratory or research program, other than a key employee, shall annually apply for and obtain a registration, on a form and in a manner prescribed by the commissioner, prior to commencing employment at the cannabis establishment business.

(b) No person shall act as a backer or key employee, or represent that such person is a backer or key employee, unless such person has obtained a license from the department pursuant to this subsection. Such person shall apply for a license on a form and in a manner prescribed by the commissioner. Such form may require the applicant to: (1) Submit to a state and national criminal history records check conducted in accordance with section 29-17a, which may include a financial history check if requested by the commissioner, to determine the character and fitness of the applicant for the license, (2) provide information sufficient for the department to assess whether the applicant has an ownership interest in any other cannabis establishment, cannabis establishment applicant or cannabis-related business nationally or internationally, (3) provide demographic information, and (4) obtain such other information as the department determines is consistent with the requirements of RERACA or chapter 420f. A backer or key employee shall be denied a license in the event his or her background check reveals a disqualifying conviction.

(c) Except as provided in subsection (d) of this section, any person who receives a cannabis establishment license, backer or key employee license or employee registration issued pursuant to subsection (a) of this section shall notify the department, in writing, of any changes to the information supplied on the application for such license or registration not later than five business days after such change.

(d) Any person who receives a cannabis establishment license or backer or key employee license shall notify the department, in a manner prescribed by the department, of any arrest or conviction of such person for an offense that would constitute a disqualifying conviction, as defined in section 21a-420, not later than forty-eight hours after such arrest or conviction.

(e) The department may adopt regulations in accordance with the provisions of chapter 54 to implement the provisions of this section, or may adopt policies and procedures as set forth in section 21a-421j, prior to adopting such final regulations.

(June Sp. Sess. P.A. 21-1, S. 29; P.A. 23-79, S. 38.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 23-79 amended Subsec. (a) by substituting “cannabis testing laboratory” for “laboratory”, effective July 1, 2023.

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Sec. 21a-421b. Criminal history records checks required for licensure. Fees. (a) For the purposes of this section:

(1) “Applicant” means an entity applying for an initial or renewal cannabis establishment or cannabis testing laboratory license;

(2) “Entity” means an association, company, corporation, organization, partnership, sole proprietorship or trust;

(3) “Executive managerial control” means, with respect to an individual, the authority or power to direct or influence the direction or operation of an applicant through agreement, board membership, contract or voting power;

(4) “Manager” means an individual who is not a key employee and has (A) an ownership interest in an applicant, and (B) executive managerial control of an applicant;

(5) “Owner” means an individual who has more than a five per cent ownership interest in an applicant; and

(6) “Ownership interest” means the possession of equity in the assets, capital, profits or stock of an applicant.

(b) The commissioner shall require that a fingerprint-based state and national criminal history records check be conducted in accordance with section 29-17a for each key employee, manager and owner of an applicant. The commissioner may require such key employees, managers and owners to submit to a state and national criminal history records check conducted in accordance with section 29-17a before issuing a license renewal.

(c) A key employee, manager or owner shall be denied a license in the event that the key employee's background check reveals a disqualifying conviction.

(d) The department shall charge the applicant a fee equal to the amount charged to the department to conduct a state and national criminal history records check of the applicant.

(June Sp. Sess. P.A. 21-1, S. 30; P.A. 23-79, S. 39.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 23-79 added new Subsec. (a) defining “applicant”, “entity”, “executive managerial control”, “manager”, “owner” and “ownership interest”, redesignated existing Subsec. (a) as Subsec. (b) and substantially amended same by modifying list of persons subject to state and national criminal history records checks, added Subsec. (c) re denial of license to key employee, manager or owner due to disqualifying conviction and redesignated existing Subsec. (b) as Subsec. (d), effective July 1, 2023.

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(1) “Bona fide labor organization” means (A) with respect to a labor peace agreement entered into on or before September 30, 2023, a labor union that (i) represents employees in this state with regard to wages, hours and working conditions, (ii) whose officers have been elected by a secret ballot or otherwise in a manner consistent with federal law, (iii) is free of domination or interference by any employer and has received no improper assistance or support from any employer, and (iv) is actively seeking to represent cannabis workers in the state, and (B) with respect to a labor peace agreement entered into on or after October 1, 2023, a labor union that is included on the list established and periodically updated by the department pursuant to subsection (b) of this section;

(2) “Labor peace agreement” means an agreement between a cannabis establishment and a bona fide labor organization under this section pursuant to which the owners and management of the cannabis establishment agree not to lock out employees and that prohibits the bona fide labor organization from engaging in picketing, work stoppages or boycotts against the cannabis establishment;

(3) “Cannabis establishment”, “dispensary facility” and “producer” have the same meanings as provided in section 21a-420; and

(4) “Licensee” means a cannabis establishment licensee, dispensary facility or producer.

(b) (1) Not later than October 1, 2023, the department shall establish and periodically update a list of labor unions that (A) are actively seeking to represent cannabis workers in this state, and (B) satisfy the criteria established in subdivision (2) of this subsection.

(2) Not later than September 1, 2023, the department shall accept applications for inclusion on the list established pursuant to subdivision (1) of this subsection. Any labor union that wishes to be included on such list shall submit an application to the department, in a form and manner prescribed by the department. As part of such application, such labor union shall attest, under penalty of false statement, that such labor union:

(A) Is actively seeking to represent cannabis workers in this state;

(B) Satisfies at least two of the following criteria:

(i) Such labor union represents employees in this state with regard to wages, hours and working conditions;

(ii) Such labor union has been recognized or certified as the bargaining representative for cannabis employees employed at cannabis establishments in this state;

(iii) Such labor union has executed one or more collective bargaining agreements with cannabis establishment employers in this state, which agreement or agreements remain effective on the date of such labor union's application under this subsection; or

(iv) Such labor union has spent resources as part of one or more attempts to organize and represent cannabis workers employed at cannabis establishments in the state, which attempt or attempts remain active on the date of such labor union's application under this subsection;

(C) Has filed the annual report required by 29 USC 431(b) for the three years immediately preceding the date of such labor union's application under this subsection;

(D) Has audited financial reports covering the three years immediately preceding the date of such labor union's application under this subsection;

(E) Was governed by a written constitution or bylaws for the three years immediately preceding the date of such labor union's application under this subsection;

(F) Is affiliated with regional or national associations of unions, including, but not limited to, central labor councils;

(G) Is overseen by officers elected by secret ballot or otherwise in a manner consistent with federal law;

(H) Is free from domination or interference by any employer; and

(I) Has not received any improper assistance or support from any employer.

(3) In the event of any change in the information that a labor union submits to the department under this subsection, the labor union shall correct or update such information, in a form and manner prescribed by the department, not later than thirty days after the date of such change.

(4) In the event that a labor union no longer satisfies the criteria established in subdivision (2) of this subsection, the labor union shall notify the department, in a form and manner prescribed by the department and not later than thirty days after such labor union no longer satisfies such criteria, that such labor union no longer satisfies such criteria. The department shall remove such labor union from the list prepared pursuant to subdivision (1) of this subsection.

(c) Any provisional cannabis establishment licensee, dispensary facility or producer shall, as a condition of its final license approval, license conversion or approval for expanded authorization, respectively, enter into a labor peace agreement with a bona fide labor organization. Any such labor peace agreement shall contain a clause that the parties agree that final and binding arbitration by a neutral arbitrator will be the exclusive remedy for any violation of such agreement.

(d) Notwithstanding the provisions of chapter 54, if an arbitrator finds that a licensee failed to comply with an order issued by the arbitrator to correct a failure to abide by such agreement, upon receipt of a written copy of such finding, the department shall suspend the licensee's license without further administrative proceedings or formal hearing.

(e) A licensee or bona fide labor organization may commence a civil action in the Superior Court in the judicial district where the facility used in the operation of a cannabis establishment is located to enforce the arbitration award or to lift the license suspension. The license shall remain suspended until such time that: (1) The arbitrator notifies, or both of the parties to the arbitration notify, the department that the licensee is in compliance with the arbitration award; (2) both of the parties to the arbitration notify the department that they have satisfactorily resolved their dispute; (3) the court, after hearing, lifts the suspension; or (4) the court, after hearing, orders alternative remedies, which may include, but need not be limited to, ordering the department to revoke the license or ordering the appointment of a receiver to properly dispose of any cannabis inventory. Except as provided in subsection (f) of this section, during such time that a license is suspended pursuant to this section, the licensee may engage in conduct necessary to maintain and secure the cannabis inventory, but may not sell, transport or transfer cannabis to another cannabis establishment, consumer or laboratory, unless such sale or transfer is associated with a voluntary surrender of license and a cannabis disposition plan approved by the commissioner.

(f) A producer, cultivator or micro-cultivator may sell, transport or transfer cannabis to a product packager, food or beverage manufacturer, product manufacturer, dispensary facility or hybrid retailer for the sale of products to qualified patients or caregivers, which products shall be labeled “For Medical Use Only”.

(June Sp. Sess. P.A. 21-1, S. 102; P.A. 23-79, S. 40.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 23-79 amended Subsec. (a)(1) by redefining “bona fide labor organization”, added new Subsec. (b) re list of bona fide labor organizations, redesignated existing Subsecs. (b) to (e) as Subsecs. (c) to (f), and made conforming changes in Subsec. (e), effective July 1, 2023.

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Sec. 21a-421j. Regulations required to implement RERACA. Policies and procedures. (a) As used in this section, “total THC” has the same meaning as provided in section 21a-240.

(b) The commissioner shall adopt regulations in accordance with chapter 54 to implement the provisions of RERACA. Notwithstanding the requirements of sections 4-168 to 4-172, inclusive, in order to effectuate the purposes of RERACA and protect public health and safety, prior to adopting such regulations the commissioner shall issue policies and procedures to implement the provisions of RERACA that shall have the force and effect of law. The commissioner shall post all policies and procedures on the department's Internet web site and submit such policies and procedures to the Secretary of the State for posting on the eRegulations System, at least fifteen days prior to the effective date of any policy or procedure. The commissioner shall also provide such policies and procedures, in a manner prescribed by the commissioner, to each licensee. Any such policy or procedure shall no longer be effective upon the earlier of either the adoption of the policy or procedure as a final regulation under section 4-172 or forty-eight months from June 22, 2021, if such regulations have not been submitted to the legislative regulation review committee for consideration under section 4-170. The commissioner shall issue policies and procedures and thereafter final regulations that include, but are not limited to, the following:

(1) Setting appropriate dosage, potency, concentration and serving size limits and delineation requirements for cannabis, provided a standardized serving of edible cannabis product or beverage, other than a medical marijuana product, shall contain not more than five milligrams of THC.

(2) Requiring that each single standardized serving of cannabis product in a multiple-serving edible product or beverage is physically demarked in a way that enables a reasonable person to determine how much of the product constitutes a single serving and a maximum amount of THC per multiple-serving edible cannabis product or beverage.

(3) Requiring that, if it is impracticable to clearly demark every standardized serving of cannabis product or to make each standardized serving easily separable in an edible cannabis product or beverage, the product, other than cannabis concentrate or medical marijuana product, shall contain not more than five milligrams of THC per unit of sale.

(4) Establishing, in consultation with the Department of Mental Health and Addiction Services, consumer health materials that shall be posted or distributed, as specified by the commissioner, by cannabis establishments to maximize dissemination to cannabis consumers. Consumer health materials may include pamphlets, packaging inserts, signage, online and printed advertisements and advisories and printed health materials.

(5) Imposing labeling and packaging requirements for cannabis sold by a cannabis establishment that include, but are not limited to, the following:

(A) Inclusion of universal symbols to indicate that cannabis, or a cannabis product, contains THC and is not legal or safe for individuals younger than twenty-one years of age, and prescribe how such product and product packaging shall utilize and exhibit such symbols.

(B) A disclosure concerning the length of time it typically takes for the cannabis to affect an individual, including that certain forms of cannabis take longer to have an effect.

(D) A list of ingredients and all additives for cannabis.

(E) Child-resistant, tamper-resistant and light-resistant packaging, including requiring that an edible product be individually wrapped. For the purposes of this subparagraph, packaging shall be deemed to be (i) child-resistant if the packaging satisfies the standard for special packaging established in 16 CFR 1700.1(b)(4), as amended from time to time, (ii) tamper-resistant if the packaging has at least one barrier to, or indicator of, entry that would preclude the contents of such packaging from being accessed or adulterated without indicating to a reasonable person that such packaging has been breached, and (iii) light-resistant if the packaging is entirely and uniformly opaque and protects the entirety of the contents of such packaging from the effects of light.

(F) Packaging for cannabis intended for multiple servings to be resealable in such a manner so as to render such packaging continuously child-resistant, as described in subparagraph (E)(i) of this subdivision, and preserve the integrity of the contents of such packaging.

(G) Impervious packaging that protects the contents of such packaging from contamination and exposure to any toxic or harmful substance, including, but not limited to, any glue or other adhesive or substance that is incorporated in such packaging.

(H) Product tracking information sufficient to determine where and when the cannabis was grown and manufactured such that a product recall could be effectuated.

(I) A net weight statement.

(J) A recommended use by or expiration date.

(K) Standard and uniform packaging and labeling, including, but not limited to, requirements (i) regarding branding or logos, (ii) that all packaging be opaque, and (iii) that amounts and concentrations of THC and cannabidiol, per serving and per package, be clearly marked on the packaging or label of any cannabis product sold.

(L) For any cannabis concentrate cannabis product that contains a total THC percentage greater than thirty per cent, a warning that such cannabis product is a high-potency product and may increase the risk of psychosis.

(M) Chemotypes, which shall be displayed as (i) “High THC, Low CBD” where the ratio of THC to CBD is greater than five to one and the total THC percentage is at least fifteen per cent, (ii) “Moderate THC, Moderate CBD” where the ratio of THC to CBD is at least one to five but not greater than five to one and the total THC percentage is greater than five per cent but less than fifteen per cent, (iii) “Low THC, High CBD” where the ratio of THC to CBD is less than one to five and the total THC percentage is not greater than five per cent, or (iv) the chemotype described in clause (i), (ii) or (iii) of this subparagraph that most closely fits the cannabis or cannabis product, as determined by mathematical analysis of the ratio of THC to CBD, where such cannabis or cannabis product does not fit a chemotype described in clause (i), (ii) or (iii) of this subparagraph.

(N) A requirement that, prior to being sold and transferred to a consumer, qualifying patient or caregiver, cannabis packaging be clearly labeled, whether printed directly on such packaging or affixed by way of a separate label, other than an extended content label, with:

(i) A unique identifier generated by a cannabis analytic tracking system maintained by the department and used to track cannabis under the policies and procedures issued, and final regulations adopted, by the commissioner pursuant to this section; and

(ii) The following information concerning the cannabis contained in such packaging, which shall be in legible English, black lettering, Times New Roman font, flat regular typeface, on a contrasting background and in uniform size of not less than one-tenth of one inch, based on a capital letter “K”, which information shall also be available on the Internet web site of the cannabis establishment that sells and transfers such cannabis:

(I) The name of such cannabis, as registered with the department under the policies and procedures issued, and final regulations adopted, by the commissioner pursuant to this section.

(II) The expiration date, which shall not account for any refrigeration after such cannabis is sold and transferred to the consumer, qualifying patient or caregiver.

(III) The net weight or volume, expressed in metric and imperial units.

(IV) The standardized serving size, expressed in customary units, and the number of servings included in such packaging, if applicable.

(V) Directions for use and storage.

(VI) Each active ingredient comprising at least one per cent of such cannabis, including cannabinoids, isomers, esters, ethers and salts and salts of isomers, esters and ethers, and all quantities thereof expressed in metric units and as a percentage of volume.

(VII) A list of all known allergens, as identified by the federal Food and Drug Administration, contained in such cannabis, or the denotation “no known FDA identified allergens” if such cannabis does not contain any allergen identified by the federal Food and Drug Administration.

(VIII) The following warning statement within, and outlined by, a red box:

“This product is not FDA-approved, may be intoxicating, cause long-term physical and mental health problems, and have delayed side effects. It is illegal to operate a vehicle or machinery under the influence of cannabis. Keep away from children.”

(IX) At least one of the following warning statements, rotated quarterly on an alternating basis:

“Warning: Frequent and prolonged use of cannabis can contribute to mental health problems over time, including anxiety, depression, stunted brain development and impaired memory.”

“Warning: Consumption while pregnant or breastfeeding may be harmful.”

“Warning: Cannabis has intoxicating effects and may be habit-forming and addictive.”

“Warning: Consuming more than the recommended amount may result in adverse effects requiring medical attention.”.

(X) All information necessary to comply with labeling requirements imposed under the laws of this state or federal law, including, but not limited to, sections 21a-91 to 21a-120, inclusive, and 21a-151 to 21a-159, inclusive, the Federal Food, Drug and Cosmetic Act, 21 USC 301 et seq., as amended from time to time, and the federal Fair Packaging and Labeling Act, 15 USC 1451 et seq., as amended from time to time, for similar products that do not contain cannabis.

(XI) Such additional warning labels for certain cannabis products as the commissioner may require and post on the department's Internet web site.

(6) Establishing laboratory testing standards.

(7) Restricting forms of cannabis products and cannabis product delivery systems to ensure consumer safety and deter public health concerns.

(8) Prohibiting certain manufacturing methods, or inclusion of additives to cannabis products, including, but not limited to, (A) added flavoring, terpenes or other additives unless approved by the department, or (B) any form of nicotine or other additive containing nicotine.

(9) Prohibiting cannabis product types that appeal to children.

(10) Establishing physical and cyber security requirements related to build out, monitoring and protocols for cannabis establishments as a requirement for licensure.

(11) Placing temporary limits on the sale of cannabis in the adult-use market, if deemed appropriate and necessary by the commissioner, in response to a shortage of cannabis for qualifying patients.

(12) Requiring retailers and hybrid retailers to make best efforts to provide access to (A) low-dose THC products, including products that have one milligram and two and a half milligrams of THC per dose, and (B) high-dose CBD products.

(13) Requiring producers, cultivators, micro-cultivators, product manufacturers and food and beverage manufacturers to register brand names for cannabis, in accordance with the policies and procedures and subject to the fee set forth in, regulations adopted under chapter 420f.

(14) Prohibiting a cannabis establishment from selling, other than the sale of medical marijuana products between cannabis establishments and the sale of cannabis to qualified patients and caregivers, (A) cannabis flower or other cannabis plant material with a total THC concentration greater than thirty per cent on a dry-weight basis, and (B) any cannabis product other than cannabis flower and cannabis plant material with a total THC concentration greater than sixty per cent on a dry-weight basis, except that the provisions of subparagraph (B) of this subdivision shall not apply to the sale of prefilled cartridges for use in an electronic cannabis delivery system, as defined in section 19a-342a and the department may adjust the percentages set forth in subparagraph (A) or (B) of this subdivision in regulations adopted pursuant to this section for purposes of public health or to address market access or shortage. As used in this subdivision, “cannabis plant material” means material from the cannabis plant, as defined in section 21a-279a.

(15) Permitting the outdoor cultivation of cannabis.

(16) Prohibiting packaging that is (A) visually similar to any commercially similar product that does not contain cannabis, or (B) used for any good that is marketed to individuals reasonably expected to be younger than twenty-one years of age.

(17) Allowing packaging to include a picture of the cannabis product and contain a logo of one cannabis establishment, which logo may be comprised of not more than three colors and provided neither black nor white shall be considered one of such three colors.

(18) Requiring packaging to (A) be entirely and uniformly one color, and (B) not incorporate any information, print, embossing, debossing, graphic or hidden feature, other than any permitted or required label.

(19) Requiring that packaging and labeling for an edible cannabis product, excluding the warning labels required under this subsection and a picture of the cannabis product described in subdivision (17) of this subsection but including, but not limited to, the logo of the cannabis establishment, shall only be comprised of black and white or a combination thereof.

(20) (A) Except as provided in subparagraph (B) of this subdivision, requiring that delivery device cartridges be labeled, in a clearly legible manner and in as large a font as the size of the device reasonably allows, with only the following information (i) the name of the cannabis establishment where the cannabis is grown or manufactured, (ii) the cannabis brand, (iii) the total THC and total CBD content contained within the delivery device cartridge, (iv) the expiration date, and (v) the unique identifier generated by a cannabis analytic tracking system maintained by the department and used to track cannabis under the policies and procedures issued, and final regulations adopted, by the commissioner pursuant to this section.

(B) A cannabis establishment may emboss, deboss or similarly print the name of the cannabis establishment's business entity, and one logo with not more than three colors, on a delivery device cartridge.

(June Sp. Sess. P.A. 21-1, S. 32; P A. 23-79, S. 41; 23-166, S. 7.)

History: June Sp. Sess. P.A. 21-1 effective June 22, 2021; P.A. 23-79 added Subsec. (a) to relocate existing definition of “total THC” from existing Subdiv. (14), redesignated existing provisions as Subsec. (b), added provision re provision of policies and procedures to each licensee in Subsec. (b), amended Subsec. (b)(5)(A) by adding provisions re inclusion of universal symbols indicating that cannabis or cannabis product contains THC and is not legal or safe for individuals younger than 21 years of age, substantially amended Subsec. (b)(5)(E) by adding provisions re child-resistant, tamper-resistant and light-resistant packaging, added Subsec. (b)(5)(F) and (G) re packaging for cannabis intended for multiple servings and impervious packaging, respectively, redesignated existing Subdiv. (5)(F) to (I) as Subsec. (b)(5)(H) to (K), added Subsec. (b)(5)(L) to (N) re high-potency products, chemotypes and packaging and labeling requirements, added Subsec. (b)(16) to (20) with additional provisions re packaging and labeling, and made technical and conforming changes throughout Subsec. (b), effective July 1, 2023; P.A. 23-166 changed effective date of P.A. 23-79, S. 41, from July 1, 2023, to October 1, 2023.

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Sec. 21a-421p. Suspension or revocation of, refusal to grant or placement of conditions on, license or registration. Imposition of fines. Certain information exempt from disclosure. Notice and hearing. Restrictions on timing of reapplication for license or registration. (a) For sufficient cause found pursuant to subsection (b) of this section, the commissioner may suspend or revoke a license or registration, issue fines of not more than twenty-five thousand dollars per violation, accept an offer in compromise or refuse to grant or renew a license or registration issued pursuant to RERACA, or place such licensee or registrant on probation, place conditions on such licensee or registrant or take other actions authorized by law. Information from inspections and investigations conducted by the department related to administrative complaints or cases shall not be subject to disclosure under the Freedom of Information Act, as defined in section 1-200, except after the department has entered into a settlement agreement, or concluded its investigation or inspection as evidenced by case closure, provided nothing in this section shall prevent the department from sharing information with other state and federal agencies and law enforcement as it relates to investigating violations of law.

(b) Any of the following shall constitute sufficient cause for such action by the commissioner, including, but not limited to:

(1) Furnishing of false or fraudulent information in any application or failure to comply with representations made in any application, including, but not limited to, medical preservation plans and security requirements;

(2) A civil judgment against or disqualifying conviction of a cannabis establishment licensee, backer, key employee or license applicant;

(3) Failure to maintain effective controls against diversion, theft or loss of cannabis, cannabis products or other controlled substances;

(4) Discipline by, or a pending disciplinary action or an unresolved complaint against a cannabis establishment licensee, registrant or applicant regarding any professional license or registration of any federal, state or local government;

(5) Failure to keep accurate records and to account for the cultivation, manufacture, packaging or sale of cannabis;

(6) Denial, suspension or revocation of a license or registration, or the denial of a renewal of a license or registration, by any federal, state or local government or a foreign jurisdiction;

(7) False, misleading or deceptive representations to the public or the department;

(8) Return to regular stock of any cannabis where:

(A) The package or container containing the cannabis has been opened, breached, tampered with or otherwise adulterated; or

(B) The cannabis has been previously sold to an end user or research program subject;

(9) Involvement in a fraudulent or deceitful practice or transaction;

(10) Performance of incompetent or negligent work;

(11) Failure to maintain the entire cannabis establishment premises or cannabis testing laboratory and contents in a secure, clean, orderly and sanitary condition;

(12) Allowing another person to use the licensee's license;

(13) Failure to properly register employees or license key employees, or failure to notify the department of a change in key employees or backers;

(14) An adverse administrative decision or delinquency assessment against the cannabis establishment from the Department of Revenue Services;

(15) Failure to cooperate or give information to the department, local law enforcement authorities or any other enforcement agency upon any matter arising out of conduct in connection with a research program or at the premises of a cannabis establishment or a cannabis testing laboratory;

(16) Advertising in a manner prohibited by section 21a-421bb; or

(17) Failure to comply with any provision of RERACA, or any policies and procedures issued by the commissioner to implement, or regulations adopted pursuant to, RERACA.

(c) Upon refusal to issue or renew a license or registration, the commissioner shall notify the applicant of the denial and of the applicant's right to request a hearing within ten days from the date of receipt of the notice of denial. If the applicant requests a hearing within such ten-day period, the commissioner shall give notice of the grounds for the commissioner's refusal and shall conduct a hearing concerning such refusal in accordance with the provisions of chapter 54 concerning contested cases. If the commissioner's denial of a license or registration is sustained after such hearing, an applicant may not apply for a new cannabis establishment, cannabis testing laboratory, backer or key employee license, or employee registration or cannabis testing laboratory employee registration, for a period of one year after the date on which such denial was sustained.

(d) No person whose license or registration has been revoked may apply for a cannabis establishment, backer or key employee license or an employee registration for a period of one year after the date of such revocation.

(e) The voluntary surrender of a license or registration, or failure to renew a license or registration, shall not prevent the commissioner from suspending or revoking such license or registration or imposing other penalties permitted by RERACA.

(June Sp. Sess. P.A. 21-1, S. 58; P.A. 23-79, S. 42.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 23-79 amended Subsec. (a) by substituting “authorized” for “permitted”, amended Subsec. (b) by substituting “cannabis testing laboratory” for “laboratory” in Subdivs. (11) and (15) and substituting “allowing” for “permitting” in Subdiv. (12), amended Subsec. (c) by adding provisions re cannabis testing laboratories and cannabis testing laboratory employees, and made technical and conforming changes in Subsecs. (a), (b)(15) and (e), effective July 1, 2023.

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PART II

PROHIBITIONS

Sec. 21a-421bb. Prohibitions re advertisement of cannabis and cannabis products. Registration of cannabis brand names. (a) No person, other than the holder of a cannabis establishment license issued pursuant to this chapter or a person who provides professional services related to the purchase, sale or use of cannabis, shall advertise any cannabis or services related to cannabis in this state.

(b) Except as provided in subsection (d) of this section, cannabis establishments shall not:

(1) Advertise, including, but not limited to, through a business name or logo, cannabis, cannabis paraphernalia or goods or services related to cannabis:

(A) In ways that target or are designed to appeal to individuals under twenty-one years of age, including, but not limited to, spokespersons or celebrities who appeal to individuals under the legal age to purchase cannabis or cannabis products, depictions of a person under twenty-five years of age consuming cannabis, or, the inclusion of objects, such as toys, characters or cartoon characters, suggesting the presence of a person under twenty-one years of age, or any other depiction designed in any manner to be appealing to a person under twenty-one years of age; or

(B) By using any image, or any other visual representation, of the cannabis plant or any part of the cannabis plant, including, but not limited to, the leaf of the cannabis plant;

(2) Engage in any advertising by means of any form of billboard within one thousand five hundred feet of an elementary or secondary school ground or a house of worship, recreation center or facility, child care center, playground, public park or library, or engage in any advertising by means of a billboard between the hours of six o'clock a.m. and eleven o'clock p.m.;

(3) Engage in advertising by means of any television, radio, Internet, mobile application, social media or other electronic communication, billboard or other outdoor signage, or print publication unless the cannabis establishment has reliable evidence that at least ninety per cent of the audience for the advertisement is reasonably expected to be twenty-one years of age or older;

(4) Engage in advertising or marketing directed toward location-based devices, including, but not limited to, cellular phones, unless the marketing is a mobile device application installed on the device by the owner of the device who is twenty-one years of age or older and includes a permanent and easy opt-out feature and warnings that the use of cannabis is restricted to persons twenty-one years of age or older;

(5) Advertise cannabis or cannabis products in a manner claiming or implying, or permit any employee of the cannabis establishment to claim or imply, that such products have curative or therapeutic effects, or that any other medical claim is true, or allow any employee to promote cannabis for a wellness purpose unless such claims are substantiated as set forth in regulations adopted under chapter 420f or verbally conveyed by a licensed pharmacist or other licensed medical practitioner in the course of business in, or while representing, a hybrid retail or dispensary facility;

(6) Sponsor charitable, sports, musical, artistic, cultural, social or other similar events or advertising at, or in connection with, such an event unless the cannabis establishment has reliable evidence that (A) not more than ten per cent of the in-person audience at the event is reasonably expected to be under the legal age to purchase cannabis or cannabis products, and (B) not more than ten per cent of the audience that will watch, listen or participate in the event is expected to be under the legal age to purchase cannabis products;

(7) Advertise cannabis, cannabis products or cannabis paraphernalia in any physical form visible to the public within five hundred feet of an elementary or secondary school ground or a recreation center or facility, child care center, playground, public park or library;

(8) Cultivate cannabis or manufacture cannabis products for distribution outside of this state in violation of federal law, advertise in any way that encourages the transportation of cannabis across state lines or otherwise encourages illegal activity;

(9) Except for dispensary facilities and hybrid retailers, exhibit within or upon the outside of the facility used in the operation of a cannabis establishment, or include in any advertisement, the word “dispensary” or any variation of such term or any other words, displays or symbols indicating that such store, shop or place of business is a dispensary;

(10) Exhibit within or upon the outside of the premises subject to the cannabis establishment license, or include in any advertisement the words “drug store”, “pharmacy”, “apothecary”, “drug”, “drugs” or “medicine shop” or any combination of such terms or any other words, displays or symbols indicating that such store, shop or place of business is a pharmacy;

(11) Advertise on or in public or private vehicles or at bus stops, taxi stands, transportation waiting areas, train stations, airports or other similar transportation venues including, but not limited to, vinyl-wrapped vehicles or signs or logos on transportation vehicles not owned by a cannabis establishment;

(12) Display cannabis, cannabis products or any image, or any other visual representation, of the cannabis plant or any part of the cannabis plant, including, but not limited to, the leaf of the cannabis plant, so as to be clearly visible to a person from the exterior of the facility used in the operation of a cannabis establishment, or display signs or other printed material advertising any brand or any kind of cannabis or cannabis product, or including any image, or any other visual representation, of the cannabis plant or any part of the cannabis plant, including, but not limited to, the leaf of the cannabis plant, on the exterior of any facility used in the operation of a cannabis establishment;

(13) Utilize radio or loudspeaker, in a vehicle or in or outside of a facility used in the operation of a cannabis establishment, for the purposes of advertising the sale of cannabis or cannabis products; or

(14) Operate any web site advertising or depicting cannabis, cannabis products or cannabis paraphernalia unless such web site verifies that the entrants or users are twenty-one years of age or older.

(c) Except as provided in subsection (d) of this section, any advertisements from a cannabis establishment shall contain the following warning: “Do not use cannabis if you are under twenty-one years of age. Keep cannabis out of the reach of children.” In a print or visual medium, such warning shall be conspicuous, easily legible and shall take up not less than ten per cent of the advertisement space. In an audio medium, such warning shall be at the same speed as the rest of the advertisement and be easily intelligible.

(d) Any outdoor signage, including, but not limited to, any monument sign, pylon sign or wayfinding sign, shall be deemed to satisfy the audience requirement established in subdivision (3) of subsection (b) of this section, be exempt from the distance requirement established in subdivision (7) of subsection (b) of this section and not be required to contain the warning required under subsection (c) of this section, if such outdoor signage:

(1) Contains only the name and logo of the cannabis establishment;

(2) Does not include any image, or any other visual representation, of the cannabis plant or any part of the cannabis plant, including, but not limited to, the leaf of the cannabis plant;

(3) Is comprised of not more than three colors; and

(4) Is located:

(A) On the cannabis establishment's premises, regardless of whether such cannabis establishment leases or owns such premises; or

(B) On any commercial property occupied by multiple tenants including such cannabis establishment.

(e) The department shall not register, and may require revision of, any submitted or registered cannabis brand name that:

(1) Is identical to, or confusingly similar to, the name of an existing non-cannabis product;

(2) Is identical to, or confusingly similar to, the name of an unlawful product or substance;

(3) Is confusingly similar to the name of a previously approved cannabis brand name;

(4) Is obscene or indecent; and

(5) Is customarily associated with persons under the age of twenty-one.

(f) A violation of the provisions of subsections (a) to (c), inclusive, of this section shall be deemed to be an unfair or deceptive trade practice under subsection (a) of section 42-110b.

(June Sp. Sess. P.A. 21-1, S. 33; P.A. 22-103, S. 8; 22-104, S. 54; P.A. 23-79, S. 43.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 22-103 added new Subsec. (a) prohibiting persons other than cannabis establishments licensed in this state from advertising cannabis or cannabis services in this state, redesignated existing Subsec. (a) as Subsec. (b), amended redesignated Subsec. (b) by adding reference to new Subsec. (d), adding provision re advertising through business name or logo in Subdiv. (1), redesignating existing provisions re advertisements targeted to individuals under twenty-one years of age as Subdiv. (1)(A), adding Subdiv. (1)(B) re images or other visual representations of cannabis plant and Subdiv. (2) re electronic or illuminated billboard advertising and redesignating existing Subdivs. (2) to (13) as Subdivs. (3) to (14), amended redesignated Subsec. (b)(7) by substituting “one thousand five hundred feet” for “five hundred feet” and adding “or a house of worship” and redesignated Subsec. (b)(12) by adding provisions re images or other visual representations of cannabis plant, redesignated existing Subsec. (b) as Subsec. (c) and added reference to new Subsec. (d), added new Subsec. (d) re exception to audience and warning requirements, redesignated existing Subsecs. (c) and (d) as Subsecs. (e) and (f), amended redesignated Subsec. (f) by substituting reference to Subsecs. (a) to (c) for reference to Subsec. (a) or (b), and made technical and conforming changes, effective May 24, 2022; P.A. 22-104 amended Subsec. (b) by adding provision re advertising by means of any form of billboard within one thousand five hundred feet of elementary or secondary school ground, house of worship, recreation center or facility, child care center, playground, public park or library in Subdiv. (2), substituting five hundred feet for one thousand five hundred feet and deleting “house of worship” in Subdiv. (7), and making conforming changes, effective May 24, 2022; P.A. 23-79 amended Subsec. (a) by adding provision re persons who provide professional services related to purchase, sale or use of cannabis, amended Subsec. (b)(2) by substituting “a billboard” for “an electronic or illuminated billboard”, and amended Subsec. (d) by adding provision re exemption from distance requirement established in Subsec. (b)(7) and making a conforming change, effective July 1, 2023.

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