Connecticut Recreational Cannabis Clients

On June 23, 2021, Governor Lamont signed into law the Responsible and Equitable Regulation of Adult-Use Cannabis Act (“RERACA”) which establishes Connecticut’s adult-use marijuana industry.  Under the bill, certain cannabis convictions are expunged, licensing for marijuana businesses is established, limitations from the local government are permitted, and taxes on marijuana are established. The Department of Consumer Protection (“DCP”) will oversee the state’s adult-use marijuana industry and will establish the number of licenses it plans to issue. While the total number of licenses to be issued has not yet been determined, the DCP will only allow a maximum of one retailer and one marijuana micro-cultivator (which can sell at retail) per 25,000 residents, as determined by the most recent census until June 30, 2024, which is about 144 licenses each. Thereafter, a new limit will be established.

The state plans to offer several types of cannabis licenses. Mr. Cannabis Law assists clients in securing all types of licenses being offered in Connecticut. As a full-service law firm, we help our recreational cannabis business clients with everything they need, including company formation, application drafting, and review, property and land acquisition, municipal and state government interface, intellectual property protection, sourcing and logistics, bookkeeping and accounting, reporting and testing compliance, packaging, employment matters, and business litigation.

There are several types of licenses that will be offered by the DCP, which include:

• Retailer – A retailer sells adult-use marijuana directly to customers. For a social equity applicant, the retailer fee to enter the lottery is $250, the fee for a provisional license is $2,500, and the fee for a final license or renewal is $12,500. For all other applicants, the retailer fee to enter the lottery is $500, the fee for a provisional license is $5,000, and the fee for a final license or renewal is $25,000.
• Hybrid Retailer – A hybrid retailer sells both adult-use and medical marijuana. For a social equity applicant, the hybrid retailer fee to enter the lottery is $250, the fee for a provisional license is $2,500, and the fee for a final license or renewal is $12,500. For all other applicants, the hybrid retailer fee to enter the lottery is $500, the fee for a provisional license is $5,000, and the fee for a final license or renewal is $25,000.
• Cultivator – A cultivator grows marijuana in a facility with at least 15,000 square feet of grow space. For a social equity applicant, the cultivator fee to enter the lottery is $500, the fee for a provisional license is $12,500, and the fee for a final license or renewal is $37,500. For all other applicants, the cultivator fee to enter the lottery is $1,000, the fee for a provisional license is $25,000, and the fee for a final license or renewal is $75,000.
• Micro-Cultivator – A micro-cultivator grows marijuana in a facility that is between 2,000 and 10,000 square feet. The DCP will determine the starting size based on the projected marijuana supply. Subsequently, micro-cultivators can apply to expand their grow space by 5,000 square feet per year. The maximum size for a micro-cultivator is 25,000 square feet. After a micro-cultivation facility reaches 25,000 square feet, the business can apply for a cultivator license. The application for a cultivator license will not be conducted via a lottery. For a social equity applicant, the micro-cultivator fee to enter the lottery is $125, the fee for a provisional license is $250, and the fee for a final license or renewal is $500. For all other applicants, the micro-cultivator fee to enter the lottery is $250, the fee for a provisional license is $500, and the fee for a final license or renewal is $1,000.
• Product Manufacturer – A product manufacturer creates marijuana products through cannabis extractions. For a social equity applicant, the product manufacturer fee to enter the lottery is $375, the fee for a provisional license is $2,500, and the fee for a final license or renewal is $12,500. For all other applicants, the product manufacturer fee to enter the lottery is $750, the fee for a provisional license is $5,000, and the fee for a final license or renewal is $25,000.
• Food and Beverage Manufacturer – A food and beverage manufacturer creates cannabis-infused food and drink products. For a social equity applicant, the food and beverage manufacturer fee or delivery service fee to enter the lottery is $125, the fee for a provisional license is $500, and the fee for a final license or renewal is $2,500. For all other applicants, the transporter fee to enter the lottery is $250, the fee for a provisional license is $1,000, and the fee for a final license or renewal is $5,000.
• Product Packager – A product packager is a person or company that is licensed to package and label marijuana products. For a social equity applicant, the product packager fee to enter the lottery is $250, the fee for a provisional license is $2,500, and the fee for a final license or renewal is $12,500. For all other applicants, the product packager fee to enter the lottery is $500, the fee for a provisional license is $5,000, and the fee for a final license or renewal is $25,000.
• Delivery Service – Delivery service is a person or company licensed to deliver marijuana products from micro-cultivators, retailers, and hybrid retailers to customers and patients. For a social equity applicant, the fee to enter the lottery is $125, the fee for a provisional license is $500, and the fee for a final license or renewal is $2,500. For all other applicants, the fee to enter the lottery is $250, the fee for a provisional license is $1,000, and the fee for a final license or renewal is $5,000.
• Transporter – A transporter is a person licensed to transport marijuana between licensed marijuana businesses, laboratories, and research programs. For a social equity applicant, the fee to enter the lottery is $125, the fee for a provisional license is $500, and the fee for a final license or renewal is $2,500. For all other applicants, the fee to enter the lottery is $250, the fee for a provisional license is $1,000, and the fee for a final license or renewal is $5,000.