MJBizMag January 2022 - 38

OPEN FOR
BUSINESS
Half of cannabis
business licenses
will go to social equity
applicants; regulators
offer discounted fees
By Omar Sacirbey
Ballot initiative or legislation:
The Connecticut General Assembly passed
S.B. 1201 on June 17, 2021. Gov. Ned Lamont
signed it into law June 22.
Regulatory agency: Department of
Consumer Protection (DCP)
Business license types: Cultivator, microcultivator,
retailer and hybrid retailer,
product manufacturer, food and beverage
manufacturer, product packager and
delivery.
License caps: The law specifies that the DCP
will determine how many licenses should be
issued in each category and that 50% must be
held by social equity applicants. If more than
the DCP-designated number of applications
are filed, the agency will hold two lotteries:
the first for social equity applicants and
the second for general, non-social equity
applicants. Licenses will not be awarded to
any lottery applicant who has two or more
licenses of the same type through June 30,
2025. The Legislature has not set limits on the
number of applications an applicant
may submit.
Out-of-state applicants: There are
no restrictions, provided applicants are
authorized to do business in the state of
Connecticut.
Product types: Infused chocolates and
candies are prohibited.
38 January 2022 | MJBizMagazine
CONNECTICUT
C
Anticipated sales launch: Estimates range
from spring 2022 to late 2022.
2021 estimated medical sales:
$165 million-$200 million
2021 state population and patient
numbers: With 3.6 million residents and
54,000 medical marijuana cardholders,
patients make up about 1.5% of the
population.
Predicted size of market: MJBizDaily predicts
Connecticut's adult-use marijuana sales could
total as much as $250 million in the first full
year and $750 million by the fourth year.
Local control and opt-in/opt-out rules:
Any municipality wishing to prohibit
cannabis businesses can opt out by holding
a referendum. Municipalities that elect to
permit marijuana businesses will retain local
zoning control over locations.
Only one retailer and one micro-cultivator
will be allowed for each 25,000 residents in
any municipality. This threshold is subject to
reevaluation by the DCP on July 1, 2024.
Social equity provisions: Social equity
applicants will receive 50% of all licenses
awarded for each license type, while general
applicants will be awarded the remaining
50% of licenses
Any person qualifying as a social equity
applicant will receive a 50% discount on all
fees for the first three renewal cycles.
onnecticut has the potential to
be a lucrative market. With 3.6
million residents and borders
that touch New York and Rhode Island-states
that have yet to begin recreational
cannabis sales-the market is
considered " a very promising program "
by observers.
" Connecticut certainly has a very
robust population and a really good
medical program, " said Brian Ward,
the chief financial officer at Verano
Holdings, an Illinois-based multistate
operator that in November bought CT
Pharma, a major cultivator in the state,
and two dispensaries.
How promising that market will be
depends on the extent the Department
of Consumer Protection caps the
number of cannabis business
licenses-something not yet decided.
Cap or no cap, Connecticut's
recreational program makes a
solid effort to provide licensing
opportunities for social equity and
small-business applicants with a
variety of tools, including:
* A regulation stipulating that 50%
of all licenses will be awarded
to social equity applicants. Also,
social equity applicants will
be selected ahead of general
applicants, giving them an early
mover advantage.
* Microbusiness licenses for small
entrepreneurs.
MJBizMag January 2022

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