Cannabis Business Licensing Elligibility in CT
Connecticut’s Senate Bill 1201: An Act Concerning Responsible and Equitable Regulation of Adult-Use Cannabis, legalizes cannabis for adults and expunges thousands of records. As a result, Connecticut is the 18th state to legalize adult-use cannabis. In particular, the bill replaces an illegal cannabis market with a taxed and regulated system. However, to enter into this market, all businesses must be licensed through the Connecticut Department of Consumer Protection (DCP).
Cannabis licenses are awarded by lottery. Therefore, all eligible applicants have an equal chance, preventing unsuccessful applicants from paying large amounts of money. Lottery winners receive a provisional license. Nevertheless, this licensee must have zoning approval from the town to be fully licensed and begin operating. Notably, half of the newly issued cannabis business licenses will be to social equity applicants. Defined as individuals from communities disproportionately impacted by the enforcement of cannabis prohibition, social equity applicants may receive technical assistance, workforce training, and start-up funds. Moreover, starting September 1, 2021, licensing applications from medical dispensaries to serve adult-use will be accepted. However, those that have been convicted within the past ten years of certain crimes are ineligible for cannabis licensing.
Licensing in Connecticut for cannabis will be under new subsections, including cultivator, micro cultivator, retailer, hybrid retailer, food and beverage manufacturer, product manufacturer, product packager, and delivery services. Furthermore, each of these has its own subsection of what defines them as an entity. Here are the subsection’s definitions and licensing fees:
Licensing Fees in CT
- Cannabis cultivation involves any business growing cannabis on a commercial level. Cultivator fees include a $1,000 lottery fee, a $25,000 provisional license fee, and a $75,000 final license or renewal fee.
- Micro cultivators are a license category meant to allow smaller-scale growers to enter the market. Micro-cultivator fees include a $250 lottery fee, a $500 provisional license fee, and a $1,000 final license or renewal fee.
- Retailers are dispensaries selling cannabis products. Retailer or hybrid retailer fees include a $500 lottery fee, a $5,000 provisional license fee, and a $25,000 final license or renewal fee.
- Food and beverage manufacture products that include cannabis-infused edibles. These fees include a $250 lottery fee, a $1,000 provisional license fee, and a $5,000 final license or renewal fee. Likewise, these are the exact fees for cannabis delivery services and transportation companies.
- Businesses producing non-food or beverage cannabis products would be in the subsection of the product manufacturer. These fees include a $750 lottery fee, a $5,000 provisional license fee, and a $25,000 final license or renewal fee.
- Any business packaging cannabis products will also need licensure. Product packager fees include a $500 lottery fee, a $5,000 provisional license fee, and a $25,000 final license or renewal fee.
Contact Schleidt Works today to learn how we can help your cannabis business thrive!