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This article, written by our Connecticut marijuana consultant, will show you how to win a cannabis license in Connecticut and start your adult-use marijuana business. But if you prefer to have a conversation with our cannabis license application writers in Connecticut, fill out a contact form to schedule a free consultation today.
Cannabis Consultant in Connecticut
Laws and Regulations
For you to win a license, it is essential that you read the laws and regulations that govern the Connecticut cannabis industry. This will help you understand the types of licenses available, the application process, and operational requirements.
Thus, our cannabis consultant in Connecticut recommends that you read Senate Bill 1201. Here is a summary of the bill.
You should also regularly check the State of Connecticut’s Cannabis Website regularly. Here is where you will find the latest updates regarding the program. Our Connecticut marijuana business consultants will update this post as more information is released.
Timeline for Cannabis Licensing in Connecticut
Below are the first applications periods for Connecticut cannabis business licenses:
- Disproportionately Impacted Area Cultivator: February 3, 2022 – May 3, 2022
- Micro-cultivator: February 10, 2022 – May 11, 2022
- Retailer: February 3, 2022 – May 4, 2022
- Hybrid Retailer: February 24, 2022 – May 25, 2022
- Product Manufacturer: March 10, 2022 – June 8, 2022
- Food and Beverage: March 3, 2022 – June 1, 2022
- Product Packager: March 17, 2022 – June 15, 2022
- Delivery Service: February 17, 2022 – May 18, 2022
- Transporter: March 24, 2022 – June 22, 2022
The initial number of licenses listed above is not a cap. In fact, the DCP states that additional cannabis licensing rounds in Connecticut will occur in late 2022.
Types of Cannabis Business Licenses in Connecticut
After you’ve read the bill, the next step is to decide on the type of cannabis license you want to apply for.
There are a variety of adult-use cannabis business licenses in Connecticut, and our cannabis license experts can help you win each type. The types of adult-use Connecticut cannabis licenses include:
- Cultivators (non-lottery)
- Micro-cultivators (4 available)
- Retailers (12 available)
- Hybrid Retailers (Adult-Use & Medical) (4 available)
- Product manufacturers (10 available)
- Food and beverage manufacturers (10 available)
- Product Packagers (6 available)
- Delivery service (10 available)
- Transporters (4 available)
Are you familiar with these various license types and what they allow you to do? Our cannabis license consultants in Connecticut provide you with a brief overview of each Adult-Use Cannabis Business License in Connecticut at the end of this article. You can read about it here.
The Connecticut cannabis license application is a pure lottery. You’ll have to pay the non-refundable application fee (detailed below) and submit information regarding your business and owners.
You can choose to apply as a Social Equity Applicant (defined below) or a General Applicant.
Connecticut will ensure that 50% of all licenses are awarded to Social Equity Applicants.
General Applicant Requirements
If you decide to apply as a general applicant, you’ll have to submit:
- A list of all backers including full name, date of birth, home address, social security number, and email.
- List of any other Connecticut cannabis establishments you are associated with, applied for or plan to apply for.
- If available, business establishment documents such as, but not limited to, the articles of incorporation, articles of association, charter, by-laws, partnership agreement, agreements between any two or more members.
- A current organizational chart showing the ownership of the applicant, including but not limited to holding companies, subsidiaries, and investors. Such a chart shall list each ownership percentage.
- All compensation agreements, if applicable.
Social Equity Applicant Requirements
If you decide to apply as a social equity applicant, you’ll also have to submit:
- Organization Chart (including affiliates)
- List of owners and ownership interest
- List of Affiliates
- Resumes (that include places of employment with corresponding dates), for all owners, officers, and key personnel of the applicant firm
- Personal Net Worth Statement for each social equity applicant, Backer and anyone owning five percent or more of the total ownership or interest rights in such cannabis establishment
- Personal Federal tax returns for the past 3 years, for each social equity applicant, backer and anyone owning five percent or more of the total ownership or interest rights in such cannabis establishment
- Federal tax returns (and requests for extensions) filed by social equity applicant, backer and anyone owning five per cent or more of the total ownership or interest rights in such cannabis establishment
- Federal tax returns (and requests for extensions) filed by any affiliate companies, with related schedules, for the past 3 years
- Documented proof of contributions used to acquire ownership interest rights in such cannabis establishment, for each owner (e.g., both sides of cancelled checks, letters of credit, financial agreements, bank statements etc.)
- Signed loan and security agreements, and bonding forms related to ownership or interest rights in such cannabis establishment
- Documented proof of any transfers of assets to/from your firm and/or to/from any of its owners over the past 2 years
- DBE/ACDBE and SBA 8(a), SDB, MBE/WBE certifications, denials, and/or decertification’s, if applicable; and any appeal decisions on these actions
- Bank authorization and signatory cards
- Schedule of salaries (or other remuneration) paid to all officers, managers, owners, and/or directors of the company
- List of all employees, job titles, and dates of employment (including affiliates) □ Management Agreements (if available; required for full license)
- Operating Agreements (if available; required for full license)
- Option Agreements (if available; required for full license)
If you have any questions about the license application process, make sure to click on the button below to talk to our expert cannabis consultants in Connecticut.
Social Equity Applicants in Connecticut
Half of the licenses will be reserved for social equity applicants, which are businesses that at least 65 % owned by, or under the day-to-day control of individuals who:
- Had an average household income of less than 300% of the state median household income over the three tax years immediately preceding such individual’s application (i.e. less than $235,000 a year); AND
- Was a resident of a disproportionately impacted area for not less than five of the ten years immediately preceding the date of such application; OR
- Was a resident of a disproportionately impacted area for not less than nine years prior to attaining the age of 18.
Our Connecticut cannabis consultants want to emphasize that a “disproportionately impacted area” means a census tract in Connecticut that has a historical conviction rate for drug-related offenses greater than one-tenth, or an unemployment rate greater than 10%.
Below is a map showing the approved disproportionately impacted areas in Connecticut. You can plug in your address to the map and it will let you know if the address is located in a disproportionately impacted area.
Here is a document showing what you would need to provide to prove social equity status.
Fees for Connecticut Cannabis Business Applications
The fees for Connecticut cannabis licenses and applications vary based on what license type you apply for. In each case, you will have to pay three fees: Lottery fee, Provisional License Fee, and Final License Fee.
The license fees for different license types in the Adult Use Cannabis program are as follows:
|Non-Social Equity Fees||Social Equity Fees|
|Cultivator License||$ 1,000||$ 25,000||$ 75,000||$ 500||$ 12,500||$ 37,500|
|Micro-cultivator License||$ 250||$ 500||$ 1,000||$ 125||$ 250||$ 500|
|Retailer License||$ 500||$ 5,000||$ 25,000||$ 250||$ 2,500||$ 12,500|
|Product Manufacturer License||$ 750||$ 5,000||$ 25,000||$ 375||$ 2,500||$ 12,500|
|Food and Beverage License||$ 250||$ 1,000||$ 5,000||$ 125||$ 500||$ 2,500|
|Delivery/Transport License||$ 250||$ 1,000||$ 5,000||$ 125||$ 500||$ 2,500|
|Product Packager License||$ 500||$ 5,000||$ 25,000||$ 500||$ 2,500||$ 12,500|
|Hybrid License||$ 500||$ 5,000||$ 25,000||$ 500||$ 2,500||$ 12,500|
Conclusions from our Cannabis Consultant in Connecticut
All in all, the adult-use cannabis market in Connecticut is bound with opportunities for entrepreneurs and investors alike. It is never too early to take a look at the application process. Talk to our cannabis consultants for more information about winning a license and starting a cannabis business in Connecticut.
Lastly, we have the highest success rate (90.12%) in the industry and are eager to help you win a cannabis business license. Take a look at our services here and feel free to reach out to speak with our Connecticut Cannabis Consultants:
Supplemental information from our Cannabis Consultant in Connecticut
Live Tracker of cannabis license applications submitted
Below, our Connecticut marijuana business consultants added a live tracker of the number of license applications submitted:
Connecticut will have limitations on the number of licenses an applicant may hold.
More specifically, the department shall not award a cannabis establishment license to any lottery applicant who, at the time the lottery is conducted, has two or more licenses or includes a backer that has managerial control of, or is a backer of, two or more licensees in the same license type or category for which the applicant has entered the lottery.
For purposes of this section, the Connecticut dispensary facility, retailer, and hybrid retailer licenses shall be considered to be within the same license category. Similarly, the Connecticut cannabis producer, cultivator, and micro-cultivator licenses shall be considered to be within the same license category.
HOWEVER, YOU CAN APPLY FOR MULTIPLE LICENSES AND LICENSE TYPES.
Change of Ownership in Adult-Use Cannabis Licenses and Business Establishments in Connecticut
Our Connecticut Cannabis Consultants want to emphasize this point. It’s important to understand regulations regarding the change of ownership in Connecticut cannabis licenses. In short, Social Equity Applicants cannot sell or change the ownership of their adult-use cannabis license for a period of 3 years following the issuance of their final license, unless it is to another qualifying social equity applicant.
Put differently, a Social Equity Applicant can sell or change the ownership of their cannabis business license in Connecticut if:
- an owner died;
- has a condition, including, but not limited to, a physical illness or loss of skill or deterioration due to the aging process, emotional disorder or mental illness that would interfere with the backer’s ability to operate; or
- selling to another qualified social equity applicant.
Description of Cannabis Licenses in Connecticut
Below, our Connecticut cannabis consultant describes the authorized activities for each type of marijuana business license in Connecticut.
An adult-use cannabis cultivator license in Connecticut allows you to cultivate, grow, and propagate cannabis at your licensed facility. Additionally, an adult-use cannabis Cultivator Licensee in Connecticut can perform extractions and infuse products with cannabis, including food and beverages. A cultivator can also package and label their products at their facility.
As far as sales go, a cultivator can sell, transfer, or transport its cannabis using its employees or transporter to the following:
- dispensary facility;
- hybrid retailer;
- product manufacturer;
- food and beverage manufacturer;
- research program;
- laboratory; or
- product packager.
Importantly, a cultivator shall not sell, transfer or deliver to consumers, qualifying patients or caregivers, directly or through a delivery service.
Our Cannabis Consultant in Connecticut would like to point out that there is a size restriction for cultivator licenses in Connecticut. You must have more than 15,000 square feet of growing space to qualify for a Cultivator License (anything less is considered a micro-cultivator license, which we discuss below).
Similarly, a Connecticut Cannabis Micro-Cultivator License allows you to conduct the same activities as a Cultivator License, but you CAN sell cannabis and products directly to consumers.
Also, a micro-cultivator differs from a cultivator in that the micro-cultivator is limited to a grow space between 2,000 – 10,000 square feet. Fortunately, the cannabis micro-cultivators in Connecticut can apply to expand their grow space in increments of 5,000 square feet per year. The micro-cultivator can apply for expansion annually until it reaches maximum marijuana grow space of 25,000 square feet.
As eluded to above, another MAJOR difference is that the micro-cultivator license allows you to sell and deliver cannabis directly to consumers (using its own employees or delivery services).
An Adult-Use Cannabis Retail License in Connecticut is basically what you think of when someone says dispensary. More specifically, a Connecticut cannabis retail license allows you to:
- 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;
- Sell, transport or transfer cannabis or cannabis products to a delivery service, laboratory, or research program; and
- Sell cannabis to a consumer or research program.
Conversely, an adult-use cannabis retailer in Connecticut may not:
- Conduct sales of medical marijuana products nor offer discounts or other inducements to qualifying patients or caregivers; and
- Not gift or transfer cannabis at no cost to a consumer as part of a commercial transaction.
Hybrid Retail License
Similar to the adult-use retail license in Connecticut, the Hybrid Retail license can conduct the same activities mentioned above for the Retailer License. However, in addition to conducting general retail sales, a hybrid retailer may sell cannabis and medical marijuana products, to qualifying patients and caregivers.
Our Cannabis Consultant in Connecticut would like to emphasize that any cannabis or medical marijuana products sold to qualifying patients and caregivers must be dispensed by a licensed pharmacist. Also, the Hybrid Retailer must have a private consultation space for the pharmacist to meet with patients.
Product Manufacturer License
An Adult-Use Cannabis Product Manufacturer License in Connecticut allows you to perform cannabis extractions, chemical synthesis, and all other manufacturing activities authorized by the commissioner and published on the department’s website. Additionally, the Product Manufacturing License allows you to:
- Package and label cannabis products manufactured at its facility; and
- Sell, transfer or transport its own products to a cannabis establishment, laboratory, or research program, provided such transportation is performed by utilizing its own employees or a transporter.
In contrast, the Product Manufacturer is prohibited from delivering any cannabis to a consumer directly or through a delivery service.
Food and Beverage Manufacturer License
The Food and Beverage Manufacturer License in Connecticut is similar to the “Infuser” license in Illinois. For instance, Connecticut’s Food and Beverage Manufacturer License allows you to:
- Incorporate cannabis into foods or beverages as an ingredient;
- Package or label any food or beverage prepared at its facility;
- Sell, transfer or transport its own products to a cannabis establishment, laboratory or research program, utilizing its employees or a transporter.
However, the adult-use cannabis Food and Beverage Manufacturer License does not allow you to:
- perform cannabis extractions;
- deliver any cannabis, cannabis products or food or beverage incorporating cannabis to a consumer, directly or through a delivery service.
Thus, our cannabis license application writers point out that Food and Beverage Manufacturer Licensees must obtain their starting cannabis material from marijuana Cultivators, Micro-cultivators, and Product Manufactures.
Product Packager License
Unique to Connecticut, the State will issue Adult-Use Cannabis Product Packager Licenses. Our Cannabis Consultants in Connecticut believe this is the first of its class.
The cannabis Product Packager License in Connecticut allows you to:
- Obtain cannabis from a producer, cultivator, micro-cultivator, food and beverage manufacturer, or a product manufacturer; and
- Sell, transfer or transport cannabis to any cannabis establishment, laboratory, or research program, provided the product packager only transports cannabis packaged at its licensed establishment and utilizing its own employees or a transporter.
Also, the Cannabis Product Packager must ensure cannabis products are labeled and packaged in compliance with the provisions of RERACA.
The Cannabis Transporter License in Connecticut allows a business to transport cannabis and cannabis products between cannabis establishments, research programs, and laboratories. However, according to our cannabis consulting firm in Connecticut, the Transporter Licensee is not allowed to possess or store cannabis for more than 24 hours.
On the other hand, a cannabis Transporter Licensee in Connecticut cannot deliver cannabis directly to consumers, patients, or caregivers.
Similar to the Transporter License, Connecticut will issue Cannabis Delivery Licenses that will allow businesses to:
- Deliver cannabis from a micro-cultivator, retailer, or hybrid retailer directly to a consumer; and
- 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.
On the other hand, the Delivery Licensee may not store or maintain control of cannabis or medical marijuana products for more than twenty-four hours. This includes the time 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.
In this section, our Connecticut Cannabis Consulting Firm will show you how to apply for an adult-use cannabis business license in Connecticut.
First, you must submit an application to enter the cannabis license lottery, which is summarized below:
- The Department of Consumer Protection will announce the total number of applications to be selected and allocate 50% of them to a Social Equity Applicant lottery.
- An application period for each license type will be opened for a specific period of time, to be determined by the Department of Consumer Protection.
- A list of all applications received for each lottery will be randomized and sent to the third-party lottery operator.
- The third-party lottery operator will randomize the list of applications and identify the applications selected through the lottery.
- The applications will be reviewed and if an application is denied, the next application in the list will be accepted until the total number is selected or there are no additional applications remaining.
- The selected applicants will have to complete a provisional application and submit the appropriate fee.
- The provisional licensee has 14 months to obtain a fully operational license.
We understand that the process is a bit confusing. Why risk your chances of winning? Reach out today to learn how our Connecticut marijuana consulting team can take the complexity out of applying.
Lottery Process Details
Step 1: Lottery
Once received, the Social Equity Council will review each application to determine if it qualifies for Social Equity Applicant Status.
The department will select 50% of the maximum number of Connecticut recreational cannabis license applications through a social equity lottery. Also, the department will award 50% of each license type to Social Equity Applicants.
If there are more applications than the maximum number, a third-party lottery operator shall conduct the lottery. The department will also conduct a separate lottery for the remaining 50% of applicants who do not qualify for Social Equity Status in Connecticut.
The lottery (whether done by the department or a third-party vendor) will identify applications for the department to review further.
If a social equity applicant is reviewed by the social equity council and it is found that the applicant does not qualify for social equity, the state will enter the applicant into the other lottery for general applicants.
Step 2: Confirming if the application is complete and qualifies
Afterward, the department will then verify that the lottery winners have submitted complete applications. The department will also determine if any of the owners or financial backers of the Connecticut adult-use cannabis license applicant have any disqualifying conditions (such as felonies, violating the license caps on ownership, etc.). If the applicant is denied, then the entire application for the Connecticut Adult-use cannabis business license is disqualified.
Our cannabis consultants in Connecticut recommend ensuring your investors and owners will not disqualify you. More specifically, ask your investors about their criminal background, disqualifying convictions, and any ownership they may have in other cannabis companies.
Step 3: Provisional License Application
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. Luckily, applicants will have 60 days to complete their provisional license application in Connecticut. If the department determines your provisional license application is complete and meets their standards, they will award you a provisional license.
According to our Connecticut Cannabis License Consultants, the provisional license will expire within 14 months and you cannot renew it. Prior to receiving final license approval, a provisional licensee shall not possess, distribute, manufacture, sell or transfer cannabis.
Step 4: Final License Application
At this point, the provisional license holder can submit a final license application for the original license type they applied for. In order to do so, you will use a form provided by the department that will include information on:
- A contract with an electronic tracking system;
- Rights to occupy the proposed location;
- Local zoning approval;
- Labor peace agreement with a bona fide labor organization;
- Certification by the applicant that a project labor agreement will be entered into by the cannabis establishment prior to construction of the facility;
- Social Equity Plan approved by Social Equity Council;
- Workforce Development Plan approved by Social Equity Council;
- Written policies for preventing diversion, misuse, and sales of cannabis to underage persons; and
- Security requirements for the license type.
Finally, once the Final License is received, the cannabis establishment can begin operations.
We understand that applying for an adult-use cannabis business license in Connecticut can get confusing and time-consuming. Therefore, we encourage you to reach out and speak with one of our Connecticut cannabis consultants to learn how we can make winning a license a breeze for you.
Useful Resources related to Applying for Adult-use Cannabis Licenses in Connecticut:
- Link to the State’s Cannabis website
- Link to the governing body (Connecticut’s Department of Consumer Protection)
- Link to the bill legalizing adult-use cannabis in Connecticut
- Summary of the bill by MPP
- Link to our Connecticut Cannabis Consulting Team