Chapter 420h

(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 (51) 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) “Infused beverage” has the same meaning as provided in section 21a-425;

(35) “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;

(36) “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;

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

(38) “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;

(39) “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;

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

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

(42) “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;

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

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

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

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

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

(48) “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;

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

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

(51) “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;

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

(53) “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;

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

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

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

(57) “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; P.A. 24-76, S. 4.)

*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; P.A. 24-76 amended Subdiv. (1) by redefining “Responsible and Equitable Regulation of Adult-Use Cannabis Act” and “RERACA” to include Secs. 21a-408w, 21a-420aa and 21a-421s, added Subdiv. (34) defining “infused beverage”, redesignated existing Subdivs. (34) to (56) as Subdivs. (35) to (57), and made technical and conforming changes in Subdivs. (21), (25) and (26), effective July 1, 2024.

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Sec. 21a-420a. Purchase, possession, display, sale or transportation of cannabis legal. Notwithstanding any provision of the general statutes, the purchase, possession, display, sale or transportation of cannabis by a cannabis establishment or employee thereof shall not be unlawful and shall not be an offense or a basis for seizure or forfeiture of assets so long as such purchase, possession, display, sale or transportation is within the scope of such person's employment or such person's license or registration and is in compliance with the laws and regulations that apply to such license or registration type.

(June Sp. Sess. P.A. 21-1, S. 52.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-420b. Enforcement of violations of federal law related to cannabis. (a) No agency or political subdivision of the state may rely on a violation of federal law related to cannabis as the sole basis for taking an adverse action against a person, except for any adverse action taken as required by federal law, including, but not limited to, the state's disqualification of a commercial driver's license, commercial learner's permit, commercial motor vehicle operator's privilege or hazardous materials endorsement for violations of federal law related to cannabis for which the Federal Motor Carrier Safety Regulations or the Hazardous Materials Regulations require disqualification, or for which the Federal Motor Carrier Safety Administration or the Pipeline and Hazardous Materials Safety Administration has, based upon such violation, issued a disqualification order.

(b) It is the public policy of this state that contracts related to the operation of a cannabis establishment business are enforceable.

(c) It is the public policy of this state that no contract entered into by a licensed cannabis establishment or its agents as authorized in accordance with a valid license, or by those who allow property to be used by a cannabis establishment, its employees, backers or its agents as authorized in accordance with a valid license, shall be unenforceable on the basis that cultivating, obtaining, manufacturing, distributing, dispensing, transporting, selling, possessing or using cannabis is prohibited by federal law.

(d) No law enforcement officer employed by an agency that receives state or local government funds shall expend state or local resources, including the officer's time, to effect any arrest or seizure of cannabis, or conduct any investigation, on the sole basis of activity the officer believes to constitute a violation of federal law if the officer has reason to believe that such activity is in compliance with this section and sections 21a-420a, 21a-420c to 21a-420i, inclusive, 21a-420l to 21a-420n, inclusive, 21a-420p to 21a-420t, inclusive, 21a-420v to 21a-421c, inclusive, 21a-421f, 21a-421g, 21a-421j to 21a-421q, inclusive, 21a-421aa to 21a-421dd, inclusive, 21a-422k and 53-247a and sections 23, 60 and 63 to 65, inclusive, of public act 21-1 of the June special session* or chapter 420f.

(e) An officer may not expend state or local resources, including the officer's time, to provide any information or logistical support to any federal law enforcement authority or prosecuting entity related to activity the officer believes to constitute a violation of federal law if the officer has reason to believe that such activity is in compliance with the provisions of this section and sections 21a-420a, 21a-420c to 21a-420i, inclusive, 21a-420l to 21a-420n, inclusive, 21a-420p to 21a-420t, inclusive, 21a-420v to 21a-421c, inclusive, 21-421f, 21a-421g, 21a-421j to 21a-421q, inclusive, 21a-421aa to 21a-421dd, inclusive, 21a-422k and 53-247a and sections 23, 60 and 63 to 65, inclusive, of public act 21-1 of the June special session* or chapter 420f.

(June Sp. Sess. P.A. 21-1, S. 25.)

*Note: Sections 23, 60 and 63 to 65, inclusive, of public act 21-1 of the June special session 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 July 1, 2021.

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Sec. 21a-420c. License required for sale, offering or delivery of cannabis. Penalties. Enforcement powers of commissioner, Attorney General and municipalities. (a) Except as provided in RERACA and chapter 420b or 420f, (1) no person, other than a retailer, hybrid retailer, micro-cultivator or delivery service, or an employee thereof in the course of such employee's employment, may sell or offer cannabis to a consumer, and (2) no person, other than a hybrid retailer, dispensary facility or a delivery service, or an employee thereof in the course of such employee's employment, may sell or offer cannabis to qualifying patients and caregivers.

(b) No person except a delivery service, or an employee of a delivery service, subject to the restrictions set forth in section 21a-420z, acting in the course of such employee's employment may deliver cannabis to consumers, patients or caregivers.

(c) Any violation of the provisions of this section shall be deemed an unfair or deceptive trade practice under subsection (a) of section 42-110b.

(d) (1) Any municipality may, by vote of its legislative body, prohibit the operation of any business within such municipality that is found to be in violation of the provisions of this section or if such operation poses an immediate threat to public health and safety.

(2) If the chief executive officer of a municipality determines that a business within the municipality is operating in violation of the provisions of this section or poses an immediate threat to public health and safety, the chief executive officer may apply to the Superior Court for an order under subdivision (3) of this subsection.

(3) Upon an application under subdivision (2) of this subsection, the Superior Court, upon a finding that a business within the municipality is operating in violation of the provisions of this section or poses an immediate threat to public health and safety, may issue forthwith, ex parte and without a hearing, an order that shall direct the chief law enforcement officer of the municipality to take from such business possession and control of any merchandise related to such violation or immediate threat to public health and safety, which merchandise shall include, but need not be limited to, (A) any cannabis or cannabis product, (B) any cigarette, tobacco or tobacco product, (C) any merchandise related to the merchandise described in subparagraphs (A) and (B) of this subdivision, and (D) any proceeds related to the merchandise described in subparagraphs (A) to (C), inclusive, of this subdivision.

(4) As used in this subsection, (A) “cigarette” has the same meaning as provided in section 4-28h, (B) “immediate threat to public health and safety” includes, but is not limited to, the presence of (i) any cannabis or cannabis product in connection with a violation of this section, or (ii) any cigarette or tobacco product alongside any cannabis or cannabis product, and (C) “operation” and “operating” mean engaging in the sale of, or otherwise offering for sale, goods and services to the general public, including, but not limited to, through indirect retail sales.

(e) (1) Any person who violates any provision of this section shall be assessed a civil penalty of thirty thousand dollars for each violation. Each day that such violation continues shall constitute a separate offense.

(2) Any person who aids or abets any violation of the provisions of this section shall be assessed a civil penalty of thirty thousand dollars for each violation. Each day that such person aids or abets such violation shall constitute a separate offense. For the purposes of this subdivision, no person shall be deemed to have aided or abetted a violation of the provisions of this section unless (A) such person was the owner, officer, controlling shareholder or in a similar position of authority that allowed such person to make command or control decisions regarding the operations and management of another person who (i) is prohibited from selling or offering any cannabis or cannabis product under this section, and (ii) sold or offered any cannabis or cannabis product in violation of this section, (B) such person knew that such other person (i) is prohibited from selling or offering any cannabis or cannabis product under this section, and (ii) sold or offered any cannabis or cannabis product in violation of this section, (C) such person provided substantial assistance or encouragement in connection with the sale or offer of such cannabis or cannabis product in violation of this section, and (D) such person's conduct was a substantial factor in furthering the sale or offer of such cannabis or cannabis product in violation of this section.

(3) Any person who manages or controls a commercial property, or who manages or controls a commercial building, room, space or enclosure, in such person's capacity as an owner, lessee, agent, employee or mortgagor, who knowingly leases, rents or makes such property, building, room, space or enclosure available for use, with or without compensation, for the purpose of any sale or offer of any cannabis or cannabis product in violation of this section shall be assessed a civil penalty of ten thousand dollars for each violation. Each day that such violation continues shall constitute a separate offense.

(4) No person other than the Attorney General, upon complaint of the Commissioner of Consumer Protection, or a municipality in which the violation of this section occurred shall assess any civil penalty under this subsection or institute a civil action to recover any civil penalty imposed under this subsection. If a municipality institutes a civil action to recover any civil penalty imposed under this subsection, such penalty shall be paid first to the municipality to reimburse such municipality for the costs incurred in instituting such action. One-half of the remainder, if any, shall be payable to the treasurer of such municipality and one-half of such remainder shall be payable to the Treasurer and deposited in the General Fund.

(f) Nothing in this section shall be construed to prohibit the imposition of any criminal penalty on any person who (1) is prohibited from selling or offering any cannabis or cannabis product under this section, and (2) sells or offers any cannabis or cannabis product in violation of this section.

(June Sp. Sess. P.A. 21-1, S. 21; P.A. 24-76, S. 7, 8.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 24-76 amended Subsec. (b) by deleting exception providing that retailers, hybrid retailers, micro-cultivators and dispensary facilities may utilize their own employees to deliver cannabis for a limited time, and made technical and conforming changes throughout section, effective July 1, 2024, and added Subsecs. (c) to (f) re unfair and deceptive trade practices, civil penalties and enforcement by commissioner, Attorney General and municipalities and effect on criminal penalties, effective October 1, 2024.

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Sec. 21a-420d. Social Equity Council established. Membership. Powers. Study. Recommendations. List of disproportionately impacted areas. Duties. Bylaws. Reports. (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 Social Equity Council shall consist of seventeen 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) Two appointed by the chairperson of the Black and Puerto Rican Caucus of the General Assembly, one of whom shall be designated by the chairperson of the Black Caucus of the General Assembly and one of whom shall be designated by the chairperson of the Puerto Rican and Latino Caucus of the General Assembly;

(8) Five 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) (1) 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.

(2) 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.

(3) (A) The Governor shall appoint an interim executive director to operationalize and support the Social Equity 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.

(B) Not later than July 1, 2024, the council shall adopt bylaws specifying which duties are retained by the members of the council and which duties are delegated to the executive director.

(C) The council may, by a simple majority vote of the members of the council, take any formal personnel action concerning the executive director for any reason.

(D) In addition to the council's authority under subparagraph (C) of this subdivision, if a final review board consisting of the chairperson and the members of the council appointed under subdivisions (1), (2), (5) and (6) of subsection (b) of this section determines, by a simple majority vote of the members of the final review board, that removing the executive director is in the best interest of serving the council's mission, such final review board shall issue a letter to the council recommending that the council remove the executive director.

(4) The Governor shall appoint the chairperson of the council from among the members of the council. The chairperson shall directly supervise, establish annual goals for and conduct an annual performance review of the executive director.

(5) The chairperson and executive director shall jointly develop, and the council shall review and approve, (A) the budgetary information that the council is required to annually submit to the Secretary of the Office of Policy and Management pursuant to subdivision (2) of subsection (c) of section 21a-420f, (B) allocations of moneys in the social equity and innovation account, established under section 21a-420f, that the council determines, under subparagraph (B) of subdivision (1) of subsection (b) of section 21a-420f, further the principles of equity, as defined in section 21a-420, and (C) any plans for expenditures 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, (iv) funding for community investments, and (v) funding for investments in disproportionately impacted areas.

(d) A majority of the members of the Social Equity 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 Social Equity 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 the council may deem necessary to carry out the duties of the council.

(f) The Social Equity 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 Social Equity 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 Social Equity 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 Social Equity 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 Social Equity 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 Social Equity Council shall develop criteria for evaluating the ownership and control of any equity joint venture created under section 21a-420m, 21a-420u,21a-420j or 21a-420aa 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,21a-420j or 21a-420aa. 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 (51) of section 21a-420, other than an individual owner in their capacity as a backer licensed under section 21a-420o.

(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 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.

(m) (1) The Social Equity Council shall review and either approve or deny, in writing, any social equity plan submitted by a cannabis establishment as part of the cannabis establishment's final license application. The council shall approve or deny such social equity plan not later than thirty days after such social equity plan is submitted to the council. If the council denies any such social equity plan, the applicant may revise and resubmit such social equity plan without prejudice.

(2) Not later than July 1, 2024, the council shall update the criteria for social equity plans described in subdivision (5) of subsection (h) of this section to include a specific, points-based rubric to evaluate social equity plans.

(n) The Social Equity Council shall approve the amounts, grantees and purposes of any grants made by the council from the social equity and innovation account or the Cannabis Social Equity and Innovation Fund, established under section 21a-420f, and any contract executed by and between the council and a grant maker shall require that the amounts, grantees and purposes of any subgrants made by such grant maker shall be approved by the council.

(o) Not later than July 1, 2024, and quarterly thereafter, the Social Equity Council shall prepare and submit a report, in accordance with the provisions of section 11-4a, to the Governor, the speaker of the House of Representatives, the president pro tempore of the Senate, the majority leader of the House of Representatives, the majority leader of the Senate, the minority leader of the House of Representatives, the minority leader of the Senate and the joint standing committees of the General Assembly having cognizance of matters relating to appropriations and consumer protection. The report shall include, but need not be limited to:

(1) The fiscal-year-to-date expenditures of the council, which expenditures shall disclose, at a minimum: (A) All expenditures made for personal services and the fringe benefit costs associated therewith; (B) all expenditures made for consultants retained for the purpose of reviewing applications for social equity applicant status; (C) all expenditures made to provide businesses with access to capital and the number of businesses that received access to such capital; (D) all expenditures made to provide technical assistance for the start-up and operation of businesses and the number of businesses that received such assistance; (E) all expenditures made to fund workforce education, the number of persons served by the workforce education programs supported by such expenditures and the number of persons successfully placed in relevant professional roles after completing such workforce education programs; (F) all expenditures made to fund community investment grants, the amounts, grantees and purposes of such grants and, if any of such grants were made to a grant maker, the amounts, grantees and purposes of any subgrants made by such grant maker; (G) all expenditures made for promotional or branding items and which promotional or branding items were purchased; (H) all expenditures made for advertising or marketing campaigns; (I) all expenditures made to advertising or marketing firms; (J) all expenditures made for sponsorships; (K) all expenditures made for other community outreach; (L) all expenditures made for travel; and (M) all other expenditures not described in subparagraphs (A) to (L), inclusive, of this subdivision; and

(2) The status of the council's performance of the council's responsibilities in the licensing process under RERACA, including, but not limited to: (A) The number of applications for social equity applicant status, social equity plans and workforce development plans pending before the council, categorized into the number of applications, social equity plans and workforce development plans pending before the council for (i) less than thirty days, (ii) at least thirty days but less than sixty days, (iii) at least sixty days but less than ninety days, and (iv) at least ninety days; (B) the number of applications for social equity applicant status, social equity plans and workforce development plans approved during the then current fiscal year, broken down by license type; and (C) the number of applications for social equity applicant status, social equity plans and workforce development plans denied during the then current fiscal year, broken down by license type.

(p) Not later than July 1, 2024, and monthly thereafter, the executive director of the council shall prepare and submit a report, in accordance with the provisions of section 11-4a, to the council and the Black and Puerto Rican Caucus of the General Assembly. The report shall include, but need not be limited to:

(1) The expenditures the council plans to make during the month immediately following submission of such report, which expenditures shall disclose, at a minimum: (A) All expenditures the council plans to make for consultants retained for the purpose of reviewing applications for social equity applicant status; (B) all expenditures the council plans to make to fund community investment grants, the amounts, grantees and purposes of such grants and, if any of such grants are to be made to a grant maker, the amounts, grantees and purposes of any subgrants to be made by such grant maker; (C) all expenditures the council plans to make for promotional or branding items, for advertising or marketing campaigns, to advertising or marketing firms and for sponsorships; (D) all expenditures the council plans to make for community outreach; and (E) all expenditures the council plans to make for travel; and

(2) The status of the council's performance of the council's responsibilities in the licensing process under RERACA, including, but not limited to, the following information for the date of such report: (A) The number of applications for social equity applicant status that are pending before the council and the date each such application was submitted, broken down by license type, municipality, assembly district and senate district; (B) the number of social equity plans that are pending before the council and the date each such social equity plan was submitted, broken down by license type; and (C) the number of workforce development plans that are pending before the council and the date each such workforce development plan was submitted, broken down by license type.

(June Sp. Sess. P.A. 21-1, S. 22; P.A. 22-103, S. 21; P.A. 23-79, S. 21; P.A. 24-76, S. 9; 24-151, S. 139.)

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; P.A. 24-76 amended Subsec. (k) by adding references to Sec. 21a-420aa, adding provision re individual owner in capacity as backer licensed under Sec. 21a-420o and making a conforming change, effective July 1, 2024; P.A. 24-151 substantially amended Subsec. (b) including by increasing membership of council from 15 to 17 and increasing number of appointments by chairperson of Black and Puerto Rican Caucus of General Assembly and Governor from 1 to 2 and 4 to 5, amended Subsec. (c) by designating existing provisions as Subdivs. (1) to (3)(A), adding Subdivs. (3)(B) to (5) re adoption of bylaws, personnel action re executive director and requirements re development, review and approval of budgetary information, allocations and plans for expenditures, added Subsecs. (m) to (p) re review and approval of social equity plan as part of final license application, approval of grants from social equity and innovation account and Cannabis Social Equity and Innovation Fund, quarterly report to Governor and General Assembly and monthly report by executive director, and made technical and conforming changes in Subsecs. (b) to (l), effective June 6, 2024.

See Sec. 4-38f for definition of “administrative purposes only”.

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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) (A) 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.

(B) For a product packager seeking authorization to expand the product packager's authorized activities to include the authorized activities of a product manufacturer, the application fee for such expanded authorization shall be thirty 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 lieu of the fees due under subparagraph (A) of this subdivision.

(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; P.A. 24-76, S. 10.)

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; P.A. 24-76 amended Subsec. (c)(7) by designating existing provisions as Subpara. (A) and adding Subpara. (B) re product packager seeking authorization to expand authorized activities to include authorized activities of product manufacturer, effective July 1, 2024.

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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 in any industry, (ii) technical assistance for the start-up and operation of a business in any industry, (iii) funding for workforce education in any industry, (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 in any industry; technical assistance for the start-up and operation of a business in any industry; funding for workforce education in any industry; 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.

(C) The estimates of expenditure requirements transmitted by the Social Equity Council to the Secretary of the Office of Policy and Management pursuant to subparagraph (A) of this subdivision shall, consistent with the requirements established in subsection (a) of section 4-77, include an estimate of the amount of funds required to be distributed among the permissible purposes for appropriations made from the Cannabis Social Equity and Innovation Fund as set forth in 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; P.A. 24-151, S. 140.)

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; P.A. 24-151 amended Subsecs. (b)(1)(B)(i) to (iii) and (c)(1) by adding “in any industry” and added Subsec. (c)(1)(C) re estimate of amount of funds required to be distributed among permissible purposes for appropriations from Cannabis Social Equity and Innovation Fund, effective June 6, 2024.

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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 sections 21a-420o and 21a-420aa, 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; P.A. 24-76, S. 11.)

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; P.A. 24-76 amended Subsec. (b) by adding reference to Sec. 21a-420aa, effective July 1, 2024.

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Sec. 21a-420h. Regulations re sale or change in ownership of control of cannabis establishment license awarded to social equity applicant. Policies and procedures. Enforcement. The Social Equity Council shall adopt regulations, in accordance with the provisions of chapter 54, to prevent the sale or change in ownership or control of a cannabis establishment license awarded to a social equity applicant to someone other than another qualifying social equity applicant during the period of provisional licensure, and for three years following the issuance of a final license, unless the backer of such licensee has died or 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. Notwithstanding the requirements of sections 4-168 to 4-172, inclusive, in order to effectuate this section, prior to adopting such regulations and not later than October 1, 2021, the council shall issue policies and procedures to implement the provisions of this section that shall have the force and effect of law. The council shall post all policies and procedures on its 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 the adoption of the policy or procedure as a final regulation under section 4-172 or forty-eight months from July 1, 2021, if such regulations have not been submitted to the legislative regulation review committee for consideration under section 4-170. Any violation of such policies and procedures or any violation of such regulations related to the sale or change in ownership may be referred by the Social Equity Council to the department for administrative enforcement action, which may result in a fine of not more than ten million dollars or action against the establishment's license.

(June Sp. Sess. P.A. 21-1, S. 36.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-420i. Restriction on holding, controlling or being a backer of two or more cannabis establishment licenses in the same license type or category. From July 1, 2021, until June 30, 2025, 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, provided an ownership interest in an equity joint venture or a social equity partner in accordance with subsection (c) of section 21a-420l shall not be considered for purposes of such cap. For purposes of this section, dispensary facility, retailer and hybrid retailer licenses shall be considered to be within the same license category and producer, cultivator and micro-cultivator licenses shall be considered to be within the same license category.

(June Sp. Sess. P.A. 21-1, S. 40.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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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-420k. Reserved for future use.

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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 (51) 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; P.A. 24-76, S. 12.)

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); P.A. 24-76 made a conforming change in Subsec. (b), effective July 1, 2024.

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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) (1) 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.

(2) (A) Notwithstanding the provisions of subdivision (1) of this subsection, during the period beginning on June 6, 2024, through December 31, 2025, the department may grant a final cultivator license to the holder of a provisional cultivator license issued under section 21a-420o who has not developed the capability to cultivate, grow and propagate cannabis at an establishment containing at least fifteen thousand square feet of grow space, and such holder may carry out the functions of a cultivator, if such holder submits to the department, in a form and manner prescribed by the commissioner:

(i) A completed application for a final cultivator license; and

(ii) Evidence that (I) such holder's licensed cultivation facility contains at least five thousand square feet of grow space, (II) such holder, and such holder's licensed cultivation facility, are in compliance with the provisions of this chapter and the regulations adopted, and policies and procedures issued, under this chapter, (III) such holder has a detailed business plan and buildout schedule to cultivate, grow and propagate cannabis at a licensed establishment containing at least fifteen thousand square feet of grow space on or before December 31, 2025, and (IV) such holder has paid the three-million-dollar fee required under subdivision (3) of subsection (a) of section 21a-420o.

(B) If the department issues a final cultivator license under this subdivision, and the licensee fails to cultivate, grow and propagate cannabis at a licensed establishment containing at least fifteen thousand square feet of grow space on or before December 31, 2025, such licensee shall pay to the department, in a form and manner prescribed by the commissioner, an extension fee in the amount of five hundred dollars for each day that such licensee's licensed establishment fails to satisfy such minimum grow space requirement. The department may, in addition to imposing such extension fee, exercise the department's enforcement authority under section 21a-421p if the licensee fails to satisfy such minimum grow space requirement on or before December 31, 2025.

(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 cannabis establishment, research program or cannabis testing laboratory 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; P.A. 24-115, S. 4; 24-151, S. 138.)

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; P.A. 24-115 amended Subsec. (d) by substituting reference to cannabis establishment for reference to dispensary facility, hybrid retailer, retailer, food and beverage manufacturer, product manufacturer or product packager, and made conforming changes therein, effective June 4, 2024; P.A. 24-151 amended Subsec. (b) by designating existing provisions as Subdiv. (1) and adding Subdiv. (2) re granting final cultivator license to holder of provisional cultivator license issued under Sec. 21a-420o who has not developed capability to cultivate, grow and propagate cannabis at establishment containing at least 15,000 feet of grow space, effective June 6, 2024.

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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. The department shall not grant an application for a provisional cultivator license under this subsection after December 31, 2025.

(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 the location at which the cultivation facility will be located, which location shall be situated (A) in a disproportionately impacted area, (B) on any reservation, as defined in section 47-63, of the Schaghticoke, Paucatuck Eastern Pequot or Golden Hill Paugussett indigenous tribe recognized by this state under subsection (b) of section 47-59a, provided such reservation includes at least ten acres of contiguous land and such land comprised part of such reservation on July 1, 2024, (C) on any parcel of land owned in fee simple by any indigenous tribe recognized by this state under subsection (b) of section 47-59a, provided such parcel includes at least ten acres of contiguous land and is located in a municipality that, prior to July 1, 2024, contained any portion of a disproportionately impacted area, or (D) in the case of an exclusively outdoor grow, in a municipality containing any portion of a disproportionately impacted area, provided (i) such outdoor grow is conducted on land that such municipality has approved for agricultural or farming uses, and (ii) all cultivation complies with the provisions of the regulations adopted, and policies and procedures issued, pursuant to section 21a-421j permitting the outdoor cultivation of cannabis; (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; P.A. 24-76, S. 13.)

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; P.A. 24-76 amended Subsec. (a) by adding provision prohibiting grant of provisional cultivator license after December 31, 2025, substantially amended Subsec. (b)(2) re location where cultivation facility may be located, and made technical and conforming changes throughout, effective July 1, 2024.

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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) (1) Subject to the requirements of this subsection and subsection (b) of section 21a-420c, a micro-cultivator may sell its own cannabis, including, but not limited to, its own cannabis seedlings, to consumers, excluding qualifying patients and care-givers, through a delivery service. No cannabis establishment other than a micro-cultivator shall sell cannabis seedlings to consumers, and no cannabis establishment other than a delivery service shall deliver cannabis seedlings sold by a micro-cultivator to consumers.

(2) No micro-cultivator shall sell a cannabis seedling to a consumer unless:

(A) The micro-cultivator cultivated the cannabis seedling in this state from seed or clone;

(B) The cannabis seedling (i) has a standing height of not more than six inches measured from the base of the stem to the tallest point of the plant, (ii) does not contain any bud or flower, and (iii) has been tested for pesticides and heavy metals in accordance with the laboratory testing standards established in the policies and procedures issued, and final regulations adopted, by the commissioner pursuant to section 21a-421j; and

(C) A label or informational tag is affixed to the cannabis seedling disclosing the following 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”:

(i) The name of the micro-cultivator;

(ii) A product description for the cannabis seedling;

(iii) One of the following chemotypes anticipated after flowering: (I) “High THC, Low CBD”; (II) “Low THC, High CBD”; or (III) “50/50 THC and CBD”;

(iv) The results of the testing required under subparagraph (B)(iii) of this subdivision;

(v) Directions for optimal care of the cannabis seedling;

(vi) Unobscured symbols, in a size of not less than one-half inch by one-half inch and in a format approved by the commissioner, which symbols shall indicate that the cannabis seedling contains THC and is not legal or safe for individuals younger than twenty-one years of age; and

(vii) 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 section 21a-421j.

(3) Notwithstanding section 21a-421j, no cannabis seedling shall be required to be sold in child-resistant packaging.

(4) No micro-cultivator shall knowingly sell more than three cannabis seedlings to a consumer in any six-month period.

(5) No micro-cultivator shall accept any returned cannabis seedling.

(June Sp. Sess. P.A. 21-1, S. 49; P.A. 23-79, S. 30; P.A. 24-76, S. 14.)

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; P.A. 24-76 substantially amended Subsec. (f) by eliminating provisions re cannabis delivery and adding provisions re cannabis seedlings, effective July 1, 2024.

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Sec. 21a-420q. Regulations re maximum grow space. Policies and procedures. The commissioner shall adopt regulations, in accordance with the provisions of chapter 54, to establish the maximum grow space permitted by a cultivator and micro-cultivator. In adopting such regulations, the commissioner shall seek to ensure an adequate supply of cannabis for the market. Notwithstanding the requirements of sections 4-168 to 4-172, inclusive, in order to effectuate this section, 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 the adoption of the policy or procedure as a final regulation under section 4-172 or forty-eight months from July 1, 2021, if such regulations have not been submitted to the legislative regulation review committee for consideration under section 4-170.

(June Sp. Sess. P.A. 21-1, S. 37.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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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-420t. Conversion of dispensary facility license to hybrid retailer license. Real-time uploads to prescription drug monitoring program required. Delivery of cannabis or medical marijuana. (a) A dispensary facility may apply to the department, on a form and in a manner prescribed by the commissioner, to convert its license to a hybrid retailer license on or after September 1, 2021, without applying through the lottery application system. The license conversion application shall require a dispensary facility to submit to, and obtain approval from the department for, a detailed medical preservation plan for how it will prioritize sales and access to medical marijuana products for qualifying patients, including, but not limited to, managing customer traffic flow, preventing supply shortages, providing delivery services and ensuring appropriate staffing levels.

(b) After October 1, 2021, qualifying patients shall not be required to designate a dispensary facility or hybrid retailer as its exclusive location to purchase cannabis or medical marijuana products, nor shall the department require any future change of designated dispensary facility applications. If all dispensary facilities demonstrate to the department's satisfaction that they are adhering to the real-time upload requirements set forth in subsection (c) of this section prior to October 1, 2021, the commissioner may eliminate the requirement for designated dispensary facilities prior to said date.

(c) On and after September 1, 2021, dispensary facilities and hybrid retailers shall be required to perform real-time uploads to the prescription drug monitoring program. Any cannabis or medical marijuana products sold to qualifying patients or caregivers shall be dispensed by a licensed pharmacist and shall be recorded into the 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.

(d) On and after September 1, 2021, a dispensary facility or hybrid retailer may apply to the department, in a form and in a manner prescribed by the commissioner, to provide delivery services through a delivery service or utilizing its own employees, subject to the provisions of subsection (b) of section 21a-420c, to qualifying patients, caregivers, research program subjects, as defined in section 21a-408, and hospice and 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 of Consumer Protection. A dispensary facility or hybrid retailer may deliver cannabis or medical marijuana products only from its own inventory to qualifying patients and caregivers. If such application is approved by the commissioner, the dispensary facility or hybrid retailer may commence delivery services on and after January 1, 2022, provided the commissioner may authorize dispensary facilities or hybrid retailers to commence delivery services prior to January 1, 2022, upon forty-five days advance written notice, published on the department's Internet web site.

(e) Hybrid retailers may commence delivery of cannabis directly to consumers as of the date the first adult use cannabis sales are permitted by the commissioner as set forth in subsection (f) of this section, through a delivery service, or utilizing their own employees, subject to the provisions of subsection (b) of section 21a-420c.

(f) Dispensary facilities that have been approved by the department and that have converted to hybrid retailers may open their premises to the general public and commence adult use cannabis sales on and after thirty days after the date that cannabis is available for purchase for purposes of adult use sales from producers or cultivators that have at least two hundred fifty thousand square feet of grow space and space used to manufacture cannabis products in the aggregate, which date shall be published on the department's Internet web site.

(June Sp. Sess. P.A. 21-1, S. 43.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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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 (51) 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; P.A. 24-76, S. 15.)

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); P.A. 24-76 made a conforming change in Subsec. (b), effective July 1, 2024.

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Sec. 21a-420v. Denial of change of location application of dispensary facility or hybrid retailer authorized. (a) Until June 30, 2023, the commissioner may deny a change of location application from a dispensary facility or hybrid retailer based on the needs of qualifying patients.

(b) Prior to June 30, 2022, the commissioner shall not approve the relocation of a dispensary facility or hybrid retailer to a location that is further than ten miles from its current dispensary facility or hybrid retailer location.

(June Sp. Sess. P.A. 21-1, S. 50.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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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, or obtain cannabis from a cannabis establishment, cannabis testing laboratory or research program for manufacturing purposes, provided such transportation is performed by utilizing its own 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; P.A. 24-76, S. 16.)

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; P.A. 24-76 amended Subsec. (d) by adding provisions re obtaining cannabis from cannabis establishment, cannabis testing laboratory or research program for manufacturing purposes and made a technical change, effective July 1, 2024.

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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, or obtain cannabis from a cannabis establishment, cannabis testing laboratory or research program for manufacturing purposes, 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; P.A. 24-76, S. 17.)

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; P.A. 24-76 amended Subsec. (d) by adding provisions re obtaining cannabis from cannabis establishment, cannabis testing laboratory or research program for manufacturing purposes, effective July 1, 2024.

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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.

(e) (1) A product packager may expand the product packager's authorized activities to include the authorized activities of a product manufacturer if: (A) The product packager 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 (7) of subsection (c) of section 21a-420e; and (B) the commissioner authorizes the product packager, in writing, to expand such product packager's authorized activities to include the authorized activities of a product manufacturer.

(2) A product packager that expands the product packager'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 product packagers 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. 46; P.A. 23-79, S. 36; P.A. 24-76, S. 18.)

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; P.A. 24-76 added Subsec. (e) re expansion of product packager's authorized activities to include authorized activities of product manufacturer, effective July 1, 2024.

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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-420aa. Social equity applicants. Withdrawal of cultivator application and submission of micro-cultivator application. (a)(1) During the period beginning July 1, 2024, and ending March 31, 2025, a social equity applicant that has submitted an application to the department for a cultivator license pursuant to subsection (a) of section 21a-420o may withdraw such application and apply for a micro-cultivator license pursuant to this section if:

(A) The Social Equity Council has verified that the applicant meets the criteria for a social equity applicant pursuant to subdivision (1) of subsection (a) of section 21a-420o;

(B) The social equity applicant is eligible to receive a provisional cultivator license pursuant to subsection (a) of section 21a-420o;

(C) The department has not already issued a provisional cultivator license to the social equity applicant pursuant to subsection (a) of section 21a-420o; and

(D) The social equity applicant submits to the department, in a form and manner prescribed by the commissioner, a written statement by the social equity applicant withdrawing the social equity applicant's application under subsection (a) of section 21a-420o.

(2) No social equity applicant that withdraws an application in the manner set forth in subdivision (1) of this subsection shall be eligible to receive a refund for any fee paid in connection with such withdrawn application.

(b) During the period beginning July 1, 2024, and ending December 31, 2025, the department shall issue a provisional micro-cultivator license to a social equity applicant pursuant to this section:

(1) If the social equity applicant meets the eligibility criteria established in subdivision (1) of subsection (a) of this section;

(2) If during the period beginning July 1, 2024, and ending March 31, 2025, the social equity applicant submits to the department, in a form and manner prescribed by the commissioner:

(A) A completed micro-cultivator license application and other documentation required to determine eligibility as set forth in subsections (e) to (l), inclusive, of section 21a-420g;

(B) A written statement by the social equity applicant disclosing whether any change occurred in the ownership or control of the social equity applicant after the Social Equity Council verified that the applicant met the criteria for a social equity applicant pursuant to subdivision (1) of subsection (a) of section 21a-420o; and

(3) If any change described in subparagraph (B) of subdivision (2) of this subsection has occurred:

(A) Such change in ownership or control is allowed under (i) section 21a-420g, and (ii) any regulation adopted, or policy or procedure issued, pursuant to section 21a-420g or 21a-420h; and

(B) Pursuant to subsection (d) of this section, (i) the Social Equity Council has determined that the social equity applicant continues to meet the criteria for a social equity applicant, and (ii) the department has received a written notice from the Social Equity Council affirming that the Social Equity Council has determined that the social equity applicant continues to meet the criteria for a social equity applicant.

(c) (1) A social equity applicant that submits a micro-cultivator license application pursuant to subsection (b) of this section shall submit to the department an application fee in the amount of five hundred thousand dollars. All application fees collected pursuant to this subdivision shall be deposited in the consumer protection enforcement account established in section 21a-8a.

(2) The fee to renew a final micro-cultivator license issued pursuant to this section shall be the same as the fee to renew a final micro-cultivator license as set forth in section 21a-420e. All renewal fees collected pursuant to this subdivision shall be paid to the State Treasurer and credited to the General Fund.

(d) If any change described in subparagraph (B) of subdivision (2) of subsection (b) of this section has occurred, the Social Equity Council shall (1) determine whether the social equity applicant continues to meet the criteria for a social equity applicant, and (2) submit to the department, in a form and manner prescribed by the commissioner, a written notice disclosing such determination.

(e) No social equity applicant that receives a micro-cultivator license under this section shall be eligible to apply for a provisional license and a final license to create more than one equity joint venture to be approved by the Social Equity Council under section 21a-420d, and no such social equity applicant shall operate any such equity joint venture unless such social equity applicant has received a micro-cultivator license under this section, commenced cultivation activities under such micro-cultivator license and submitted to the department both the application fee required under subdivision (1) of subsection (c) of this section and a conversion fee in the amount of five hundred thousand dollars. The conversion fee collected pursuant to this subsection shall be deposited in the Cannabis Social Equity and Innovation Fund established in section 21a-420f.

(f) Each application submitted to the department pursuant to subsection (b) of this section, and all information included in, or submitted with, any application submitted pursuant to said subsection, shall be subject to the provisions of subsection (g) of section 21a-420e.

(g) Notwithstanding any other provision of RERACA, and except as otherwise provided in subsections (a) to (f), inclusive, of this section:

(1) Each application submitted pursuant to subsection (b) of this section shall be processed as any other micro-cultivator application that has been selected through the lottery; and

(2) Each social equity applicant, application submitted pursuant to subsection (b) of this section and micro-cultivator license issued pursuant to this section shall be subject to subsections (e) to (l), inclusive, of section 21a-420g.

(P.A. 24-76, S. 5.)

History: P.A. 24-76 effective July 1, 2024.

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Sec. 21a-421. Age requirement to hold license or be backer or key employee of cannabis establishment. Registration and licensure requirements. (a) Any person shall be twenty-one years of age or older to: (1) Hold any cannabis establishment license issued pursuant to RERACA; or (2) be a backer or key employee of a cannabis establishment that is licensed pursuant to RERACA.

(b) Any person shall be eighteen years of age or older to (1) be an employee of a cannabis establishment that is licensed pursuant to RERACA; or (2) be employed by a cannabis establishment or a licensee pursuant to chapter 420f.

(c) All employees of a cannabis establishment shall obtain a registration and all key employees and backers of a cannabis establishment shall obtain a license from the department, on a form and in a manner prescribed by the commissioner, except for (1) delivery service or transporter employees who do not (A) engage in the transport, storage or distribution of, or have access to, cannabis, or (B) engage in security controls or contract management with other cannabis establishments; (2) product packager employees who do not (A) have access to cannabis, or (B) engage in physical packaging, security controls or contract management with other cannabis establishments; and (3) other employee categories, as determined by the commissioner, provided under no circumstances shall a key employee be exempt from the licensure requirements of this section.

(June Sp. Sess. P.A. 21-1, S. 24.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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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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Sec. 21a-421c. Third-party background checks for backer or key employee license applications. Notwithstanding the provisions of sections 21a-421a and 21a-421b, the commissioner may accept a third-party local and national criminal background check submitted by an applicant for a backer or key employee license or renewal in lieu of a fingerprint-based national criminal history records check. Any such third-party background check shall (1) be conducted by a third-party consumer reporting agency or background screening company that is in compliance with the federal Fair Credit Reporting Act and accredited by the Professional Background Screening Association, and (2) include a multistate and multi-jurisdiction criminal record locator or other similar commercial nation-wide database with validation, and other such background screening as the commissioner may require. The applicant shall request such background check not more than sixty days prior to submission of the application.

(June Sp. Sess. P.A. 21-1, S. 31.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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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-421e. Project labor agreement required. Civil action for enforcement. Penalty. (a) As used in this section:

(1) “Affiliated business entity” means a business entity that, either directly or indirectly through one or more intermediaries, is controlled by, or is under common control with, a cannabis establishment;

(2) “Control” means the power to direct, or cause the direction of, the management and policies of a business entity;

(3) “Covered project” means a project that is (A) for the construction or renovation of any facility for the operation of a cannabis establishment, (B) in an amount of at least five million dollars, and (C) performed by or on behalf of (i) a cannabis establishment, or (ii) an affiliated business entity;

(4) “Labor organization” (A) means any organization that exists and is constituted, in whole or in part, for the purpose of (i) collective bargaining, or (ii) dealing with employers concerning grievances, terms or conditions of employment or other mutual aid or protection, and (B) does not include a company union, as defined in section 31-101; and

(5) “Project labor agreement” means a prehire collective bargaining agreement that (A) is entered into by and between (i) a cannabis establishment or an affiliated business entity, (ii) one or more contractors or subcontractors at any tier, and (iii) one or more labor organizations, (B) establishes the terms and conditions of employment in connection with performance of a covered project, (C) binds each affiliated entity, contractor and subcontractor to adhere to the terms of such collective bargaining agreement through the inclusion of specifications in all relevant solicitation provisions and contract documents concerning performance of the covered project, (D) allows each contractor or subcontractor to compete for contracts and subcontracts on the covered project without regard to whether such contractor or subcontractor is otherwise a party to a collective bargaining agreement, (E) establishes uniform terms and conditions of employment for all construction labor employed in connection with performance of the covered project, (F) guarantees against strikes, lockouts and similar job disruptions in connection with performance of the covered project, (G) sets forth mutually binding procedures for resolving labor disputes arising during the term of such collective bargaining agreement, and (H) includes any other provisions as negotiated by the parties to such collective bargaining agreement to promote successful performance of the covered project.

(b) Each covered project shall be the subject of a project labor agreement. A contractor, subcontractor or labor organization may enforce the provisions of this section, or seek remedies for noncompliance with a project labor agreement entered into under this section, by commencing a civil action in the Superior Court in the judicial district in which the covered project is to be performed or is performed. The court, after hearing, may order penalties of not more than ten thousand dollars per day for each violation of the project labor agreement by the cannabis establishment or affiliated business entity. A failure of a cannabis establishment or affiliated business entity to comply with the provisions of this section shall not be the basis for any administrative action by the Department of Consumer Protection.

(June Sp. Sess. P.A. 21-1, S. 103; P.A. 24-76, S. 19.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 24-76 substantially revised section including by adding definitions of “affiliated business entity”, “control”, “covered project” and “labor organization”, deleting definition of “employee organization” and redefining “project labor agreement” in Subsec. (a), and adding provisions re affiliated business entities in Subsec. (b), effective July 1, 2024.

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Sec. 21a-421f. Cannabis business accelerator program. (a) The Social Equity Council, in coordination with the Departments of Consumer Protection and Economic and Community Development, shall develop a cannabis business accelerator program to provide technical assistance to participants by partnering participants with a cannabis establishment. The Social Equity Council may partner with a constituent unit of the state system of higher education in developing the program.

(b) Any individual who would qualify as a social equity applicant may apply to participate in the accelerator program under this section.

(c) On and after October 1, 2021, the Social Equity Council may accept applications from an individual described in subsection (b) of this section for the component of the accelerator program corresponding to each of the following license types: (1) Retailer, (2) cultivator, (3) product manufacturer, (4) food and beverage manufacturer, and (5) product packager.

(d) On and after July 1, 2022, the council may accept applications from (1) retailers, (2) cultivators, (3) product manufacturers, (4) food and beverage manufacturers, (5) product packagers, (6) hybrid-retailers, and (7) micro-cultivators, licensed pursuant to section 21a-420e, to partner with participants in the accelerator program component corresponding to the same license type, provided an accelerator retailer participant may be partnered with either a retailer or hybrid retailer and an accelerator cultivator participant may be partnered with either a cultivator or micro-cultivator.

(e) As part of the cannabis business accelerator program, accelerator participants may be required to participate in training on accounting methods, business services, how to access capital markets and financing opportunities and on regulatory compliance. Social equity applicants who have been awarded either a provisional license or a final license for a cannabis establishment may participate in the training programs made available under this section.

(f) The Social Equity Council shall facilitate opportunities for participants in the cannabis business accelerator program to meet with potential investors.

(g) A participant who has partnered with a cannabis establishment pursuant to subsection (d) of this section shall be allowed to participate in any activity of the cannabis establishment with the same privileges afforded by the cannabis establishment's license to employees of such cannabis establishment.

(h) Each participant shall annually apply for and obtain a registration, on a form and in a manner prescribed by the commissioner, prior to participating in any activity of a cannabis establishment. The Social Equity Council may charge a registration fee to participants.

(i) The Social Equity Council may determine the duration of the program and number of participants under this section.

(June Sp. Sess. P.A. 21-1, S. 38.)

History: June Sp. Sess. P.A. 21-1 effective June 22, 2021.

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Sec. 21a-421g. Workforce training program for cannabis industry. (a) The Social Equity Council, in coordination with the Department of Economic and Community Development and Labor Department, shall develop a workforce training program to further equity goals, ensure cannabis establishments have access to a well-trained employee applicant pool, and support individuals who live in a disproportionately impacted area to find employment in the cannabis industry.

(b) The Social Equity Council, in consultation with the Department of Economic and Community Development and Labor Department, shall:

(1) Consult with cannabis establishments on an ongoing basis to assess the hiring needs of their businesses;

(2) Develop a universal application for prospective enrollees in workforce training programs as part of the workforce training programs developed pursuant to this section;

(3) Partner with the regional workforce development boards and institutions of higher education to develop workforce training programs;

(4) Develop a series of cannabis career pathways so that workers have the ability to vertically advance their careers within the cannabis industry;

(5) Partner with associated training providers to track and report performance outcomes of participants entering a cannabis workforce training program. Performance outcomes shall include, but not be limited to, enrollment, completion and placement of each individual entering into a training program; and

(6) Explore the creation of a series of apprenticeship programs for cannabis workers across the state.

(c) Upon completion of a workforce training program, enrollees may opt to have their information provided to cannabis establishments as prospective employees.

(June Sp. Sess. P.A. 21-1, S. 39.)

History: June Sp. Sess. P.A. 21-1 effective June 22, 2021.

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Sec. 21a-421h. Bond authorization. (a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate fifty million dollars.

(b) The proceeds of the sale of such bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the Department of Economic and Community Development jointly with the Social Equity Council for the purposes of providing (1) low-interest loans to social equity applicants, municipalities or organizations exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, to facilitate the rehabilitation, renovation or development of unused, underused real property to be used as a cannabis establishment or as part of such establishment; (2) capital to social equity applicants seeking to start or maintain a cannabis establishment; (3) funding to assist in the development or ongoing expenses of the cannabis business accelerator program established under section 21a-421f; and (4) funding to assist in the development or ongoing expenses of workforce training programs developed by the Social Equity Council pursuant to section 21a-421g. As used in this subsection, “Social Equity Council”, “cannabis establishment” and “social equity applicant” have the same meanings as provided in section 21a-420.

(c) All provisions of section 3-20, or the exercise of any right or power granted thereby, that are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section. Temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of such bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization that is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Such bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on such bonds as the same become due, and accordingly and as part of the contract of the state with the holders of such bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.

(June Sp. Sess. P.A. 21-1, S. 134.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-421i. Revolving loan program. (a) As used in this section, “Social Equity Council”, “cannabis establishment” and “social equity applicant” have the same meanings as provided in section 21a-420.

(b) (1) The Department of Economic and Community Development and the Social Equity Council shall jointly develop and establish:

(A) A revolving loan program for the purposes of subdivision (1) of subsection (b) of section 21a-421h, including (i) requirements for loan eligibility under the program, (ii) an application form and the information and documentation required to be submitted with such application, (iii) the terms of the loans to be offered, including the rates of interest to be charged and the length of the loans, (iv) a plan for publicizing and marketing the program, and (v) any other requirements necessary to implement the program; and

(B) Application forms, applicant requirements and any other provisions the department and the council deem necessary for the purposes of subdivisions (2) to (4), inclusive, of subsection (b) of section 21a-421h.

(2) The department and the council shall post on the Internet web sites of the Department of Economic and Community Development and the Department of Consumer Protection information concerning the loan program and other available funding under this section.

(June Sp. Sess. P.A. 21-1, S. 135.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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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) Except as provided in subdivision (3) of subsection (f) of section 21a-420p, child-resistant, tamper-resistant and light-resistant packaging. 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) Except as provided in subdivision (3) of subsection (f) of section 21a-420p, (i) 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, and (ii) if packaging for cannabis intended for multiple servings contains any edible cannabis product, for each single standardized serving to be easily discernible and (I) individually wrapped, or (II) physically demarked and delineated as required under this subsection.

(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 and 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, consumer disclosures concerning mold and yeast in cannabis and permitted remediation practices.

(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.

(21) Prescribing signage to be prominently displayed at dispensary facilities, retailers and hybrid retailers disclosing (A) possible health risks related to mold, and (B) the use and possible health risks related to the use of mold remediation techniques.

(June Sp. Sess. P.A. 21-1, S. 32; P A. 23-79, S. 41; 23-166, S. 7; P.A. 24-76, S. 20; 24-115, S. 5.)

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; P.A. 24-76 amended Subsec. (b) by adding provision re Sec. 21a-420p(f)(3), and deleting provision re wrapping edible products, in Subdiv. (5)(E), substantially revising Subdiv. (5)(F) by adding provision re Sec. 21a-420p(f)(3), designating existing provisions as clause (i) and adding clause (ii) re discernability, wrapping, demarcation and delineation of standardized servings, substituting “state and federal law” for “state or federal law” in Subdiv. (5)(N)(ii)(X), adding provisions in Subdiv. (6) re consumer disclosures concerning mold, yeast and permitted remediation practices and adding Subdiv. (21) re signage disclosing use of mold remediation techniques and possible health risks related to mold and such techniques, effective July 1, 2024; P.A. 24-115 amended Subsec. (b)(5) by deleting requirement that edible product be individually wrapped in Subpara. (E), designating existing provisions of Subpara. (F) as Subpara. (F)(i), adding Subpara. (F)(ii) re packaging for cannabis intended for multiple servings and containing edible cannabis products and substituting “state and federal law” for “state or federal law” in Subpara. (N)(ii)(X), effective June 4, 2024.

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Sec. 21a-421k. Regulations to effectuate purposes of RERACA and protect public health and safety. Policies and procedures. (a) The commissioner may adopt regulations in accordance with chapter 54, including emergency regulations pursuant to section 4-168, to implement the provisions of RERACA.

(b) 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 implement policies and procedures to implement the provisions of RERACA that shall have the force and effect of law. The commissioner shall post all such 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 policies and procedures shall no longer be effective upon the earlier of either adoption of such policies and procedures 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.

(June Sp. Sess. P.A. 21-1, S. 59.)

History: June Sp. Sess. P.A. 21-1 effective June 22, 2021.

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Sec. 21a-421l. Policies and procedures re cultivation, processing, manufacture, security, storage, inventory and distribution of cannabis required of cannabis establishments. (a) Each cannabis establishment shall establish, maintain and comply with written policies and procedures for the cultivation, processing, manufacture, security, storage, inventory and distribution of cannabis, as applicable to the specific license type. Such policies and procedures shall include methods for identifying, recording and reporting diversion, theft or loss, and for correcting all errors and inaccuracies in inventories. Cannabis establishments shall include in their written policies and procedures a process for each of the following, if the establishment engages in such activity:

(1) Handling mandatory and voluntary recalls of cannabis. Such process shall be adequate to deal with recalls due to any order of the commissioner and any voluntary action by the cannabis establishment to remove defective or potentially defective cannabis from the market or any action undertaken to promote public health and safety by replacing existing cannabis with improved products or packaging;

(2) Preparing for, protecting against and handling any crisis that affects the security or operation of any facility used in the operation of a cannabis establishment in the event of a strike, fire, flood or other natural disaster, or other situations of local, state or national emergency;

(3) Ensuring that any outdated, damaged, deteriorated, misbranded or adulterated cannabis is segregated from all other inventory and destroyed. Such procedure shall provide for written documentation of the cannabis disposition; and

(4) Ensuring the oldest stock of a cannabis is sold, delivered or dispensed first. Such procedure may permit deviation from this requirement, if such deviation is temporary and approved by the commissioner.

(b) A cannabis establishment shall (1) store all cannabis in such a manner as to prevent diversion, theft or loss, (2) make cannabis accessible only to the minimum number of specifically authorized employees essential for efficient operation, and (3) return any cannabis to a secure location at the end of the scheduled business day. For the purposes of this subsection, a location shall be deemed to be secure if the location satisfies the requirements imposed in subsection (b) of section 21a-262-4 of the regulations of Connecticut state agencies for controlled substances listed in schedules III, IV and V of the Connecticut controlled substance scheduling regulations adopted pursuant to section 21a-243.

(June Sp. Sess. P.A. 21-1, S. 54; P.A. 24-76, S. 21.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 24-76 amended Subsec. (b) by adding provisions re when location shall be deemed secure, effective July 1, 2024.

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Sec. 21a-421m. Annual report by cannabis establishments re electricity usage. Each cannabis establishment shall annually report publicly in a manner prescribed by the commissioner: (1) Its annual usage of electricity, and (2) what fraction of its electricity usage is generated from Class I Renewable Portfolio Standards produced in the state per the Regional Greenhouse Gas Initiative agreement. Each cannabis establishment shall purchase electricity generated from Class I Renewable Portfolio Standards produced in the states that are party to the Regional Greenhouse Gas Initiative agreement, to the greatest extent possible.

(June Sp. Sess. P.A. 21-1, S. 62.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2022.

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Sec. 21a-421n. Recordkeeping requirements. Electronic tracking system. Information to be confidential. (a) Each cannabis establishment, licensed pursuant to chapter 420f or the provisions of RERACA shall maintain a record of all cannabis grown, manufactured, wasted and distributed between cannabis establishments and to consumers, qualifying patients and caregivers in a form and manner prescribed by the commissioner. The commissioner shall require each cannabis establishment to use an electronic tracking system to monitor the production, harvesting, storage, manufacturing, packaging and labeling, processing, transport, transfer and sale of cannabis from the point of cannabis cultivation inception through the point when the final product is sold to a consumer, qualifying patient, caregiver, research program or otherwise disposed of in accordance with chapter 420f or the provisions of RERACA, and the policies and procedures or regulations issued pursuant to RERACA. Cannabis establishments shall be required to utilize such electronic tracking system and enter the data points required by the commissioner to ensure cannabis is safe, secure and properly labeled for consumer or qualifying patient use. The commissioner may contract with one or more vendors for the purpose of electronically collecting such cannabis information.

(b) The electronic tracking system shall not collect information about any individual consumer, qualifying patient or caregiver purchasing cannabis.

(c) The electronic tracking system shall (1) track each cannabis seed, clone, seedling or other commencement of the growth of a cannabis plant or introduction of any cannabinoid intended for use by a cannabis establishment, and (2) collect the unit price and amount sold for each retail sale of cannabis.

(d) Information within the electronic tracking system shall be confidential and shall not be subject to disclosure under the Freedom of Information Act, as defined in section 1-200, except that (1) the commissioner may provide reasonable access to cannabis tracking data obtained under this section to: (A) State agencies and local law enforcement agencies for the purpose of investigating or prosecuting a violation of law; (B) public or private entities for research or educational purposes, provided no individually identifiable information may be disclosed; (C) as part of disciplinary action taken by the department, to another state agency or local law enforcement; (D) the office of the Attorney General for any review or investigation; and (E) in the aggregate, the Department of Public Health and Department of Mental Health and Addiction Services for epidemiological surveillance, research and analysis in conjunction with the Department of Consumer Protection; and (2) the commissioner shall provide access to the electronic tracking system to (A) the Department of Revenue Services for the purposes of enforcement of any tax-related investigations and audits, and (B) the Connecticut Agricultural Experiment Station for the purpose of laboratory testing and surveillance.

(June Sp. Sess. P.A. 21-1, S. 56.)

History: June Sp. Sess. P.A. 21-1 effective January 1, 2022.

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Sec. 21a-421o. Record retention requirements for cannabis establishments. Audits and inspections. Confidentiality of information. (a) Each cannabis establishment shall maintain all records necessary to fully demonstrate business transactions related to cannabis for a period covering the current taxable year and the three immediately preceding taxable years, all of which shall be made available to the department pursuant to subsection (c) of this section.

(b) The commissioner may require any licensee to furnish such information as the commissioner considers necessary for the proper administration of RERACA, and may require an audit of any cannabis establishment, the expense thereof to be paid by such cannabis establishment.

(c) Each cannabis establishment, and each person in charge, or having custody, of such documents, shall maintain such documents in an auditable format for the current taxable year and the three preceding taxable years. Upon request, such person shall make such documents immediately available for inspection and copying by the commissioner or any other enforcement agency or others authorized by RERACA, and shall produce copies of such documents to the commissioner or commissioner's authorized representative within two business days. Such documents shall be provided to the commissioner in electronic format, unless not commercially practical. In complying with the provisions of this subsection, no person shall use a foreign language, codes or symbols to designate cannabis or cannabis product types or persons in the keeping of any required document.

(d) For purposes of the supervision and enforcement of the provisions of RERACA, the commissioner may:

(1) Enter any place, including a vehicle, in which cannabis is held, sold, produced, delivered, transported, manufactured or otherwise disposed of;

(2) Inspect a cannabis establishment and all pertinent equipment, finished and unfinished material, containers and labeling, and all things in such place, including records, files, financial data, sales data, shipping data, pricing data, employee data, research, papers, processes, controls and facilities; and

(3) Inventory any stock of cannabis and obtain samples of any cannabis, any labels or containers, paraphernalia and of any finished or unfinished material.

(e) Except as otherwise provided in RERACA, all records maintained or kept on file related to RERACA by the department or the Social Equity Council shall be public records for purposes of the Freedom of Information Act, as defined in section 1-200. In addition to the nondisclosure provisions contained in sections 1-210, 21a-408d, 21a-408l, 21a-408v, 21a-420g, 21a-421n, 21a-421p and 21a-422k, any information related to (1) the physical security plans of a cannabis establishment or the criminal background of individual applicants that is obtained by the department through the licensing process, (2) the supply and distribution of cannabis by cannabis establishments, and (3) qualified patient and caregiver information, shall be confidential and shall not be subject to disclosure under the Freedom of Information Act, as defined in section 1-200.

(June Sp. Sess. P.A. 21-1, S. 57.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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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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Sec. 21a-421q. Purchase of cannabis by qualifying patients and caregivers. (a) Qualifying patients and caregivers registered pursuant to chapter 420f shall be permitted to purchase cannabis of higher potency, varied dosage form, and in a larger per transaction or per day amount than are generally available for retail purchase, as determined by the commissioner. Such determination, if any, shall be published on the Department of Consumer Protection's Internet web site or included in regulations adopted by the department.

(b) Notwithstanding any provision of the general statutes, the sale or delivery of drug paraphernalia to a qualifying patient or caregiver or person licensed pursuant to the provisions of RERACA or chapter 420f, shall not be considered a violation of the provisions of RERACA.

(June Sp. Sess. P.A. 21-1, S. 55.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-421r. Transmittal of dispensing information re cannabis sold to qualifying patient or caregiver. A licensed pharmacist working as an employee at a dispensary facility or hybrid retailer shall transmit dispensing information, in a manner prescribed by the commissioner, on any cannabis sold to a qualifying patient or caregiver 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.

(June Sp. Sess. P.A. 21-1, S. 82.)

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Sec. 21a-421s. Infused beverage and legacy infused beverage fee. Assessment and remittance by dispensary facilities, hybrid retailers and retailers. (a) For the purposes of this section:

(1) “Container” (A) means an object that is offered, intended for sale or sold to a consumer and directly contains an infused beverage or legacy infused beverage, and (B) does not include an object or packaging that indirectly contains, or contains in bulk for transportation purposes, an infused beverage or legacy infused beverage; and

(2) “Legacy infused beverage” has the same meaning as provided in section 21a-425.

(b) A fee of one dollar shall be assessed by a dispensary facility, hybrid retailer or retailer on each infused beverage container and legacy infused beverage container sold by such cannabis establishment. Such fee shall not be subject to any sales tax or treated as income pursuant to any provision of the general statutes.

(c) On October 1, 2024, and every six months thereafter, each dispensary facility, hybrid retailer or retailer shall remit payment to the department for each infused beverage container and legacy infused beverage container sold during the preceding six-month period. The funds received by the department from infused beverage sales and legacy infused beverage sales shall be deposited in the consumer protection enforcement account established in section 21a-8a for the purposes of (1) protecting public health and safety, (2) educating consumers and licensees, and (3) ensuring compliance with cannabis and liquor control laws.

(P.A. 24-76, S. 6.)

History: P.A. 24-76 effective July 1, 2024.

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PART II

PROHIBITIONS

Sec. 21a-421aa. Prohibitions re retailers, hybrid retailers, cannabis for animal use or consumption, cannabis plants, assignment or transfer of license or registration without approval, transfers to or from outside the state and synthetic cannabinoids. Per-transaction limits. (a) No cannabis retailer or hybrid retailer shall accept payment or other form of compensation directly or indirectly from a cultivator, micro-cultivator, producer, food and beverage manufacturer, product manufacturer or product packager to carry a cannabis product or for placement or promotion of such product in a retailer or hybrid retailer's establishment or through other promotional initiatives. No retailer or hybrid retailer shall enter into a contract with a cultivator, micro-cultivator, producer, food and beverage manufacturer, product manufacturer or product packager that requires or permits preferential treatment, exclusivity or near exclusivity or limits a retailer or hybrid retailer from purchasing from other cultivators, micro-cultivators, producers, food and beverage manufacturers or product manufacturers in any way.

(b) No cannabis establishment shall produce, manufacture or sell cannabis that is intended for use or consumption by animals.

(c) A retailer or hybrid retailer shall not knowingly sell to a consumer more than one ounce of cannabis or the equivalent amount of cannabis products or combination of cannabis and cannabis products, as set forth in subsection (i) of section 21a-279a, per day, except that a hybrid retailer or dispensary facility may sell up to five ounces of cannabis or the equivalent amount of cannabis products or combination of cannabis and cannabis products to a qualifying patient or caregiver per day. Notwithstanding the requirements of sections 4-168 to 4-172, inclusive, to avoid cannabis supply shortages or address a public health and safety concern, the commissioner may set temporary lower per-transaction limits, which shall be published on the department's Internet web site. Such limits shall become ineffective upon the commissioner's determination that a supply shortage or public health and safety concern no longer exists.

(d) No cannabis establishment, except a producer, cultivator or micro-cultivator, may acquire or possess a live cannabis plant.

(e) No person issued a license or registration pursuant to RERACA shall (1) assign or transfer such license or registration without the commissioner's prior approval, or (2) sell, transfer or transport cannabis to, or obtain cannabis from, a location outside of this state if such activity would be in violation of federal law.

(f) Synthetic cannabinoids, as defined in section 21a-240, are prohibited in cannabis, and no synthetic cannabinoid may be sold at any cannabis establishment.

(June Sp. Sess. P.A. 21-1, S. 28; P.A. 24-115, S. 6.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 24-115 added Subsec. (f) re synthetic cannabinoids, effective June 4, 2024.

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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;

(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; or

(15) Engage in advertising or marketing that includes a discounted price or other promotional offering as an inducement to purchase any cannabis or cannabis product that is not a medical marijuana product, except a discounted price or promotional offering may be offered, as an inducement to purchase cannabis, (A) within a dispensary facility, retailer or hybrid retailer, (B) through a delivery service, or (C) on an Internet web site maintained by or for a dispensary facility, retailer or hybrid retailer where cannabis or cannabis products may be lawfully ordered.

(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; P.A. 24-76, S. 22.)

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; P.A. 24-76 amended Subsec. (b) by adding Subdiv. (15) re advertising or marketing that includes discounted price or other promotional offering as inducement to purchase cannabis or cannabis product that is not medical marijuana product and making conforming changes, effective July 1, 2024.

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Sec. 21a-421cc. Prohibition re display of cannabis, cannabis products and drug paraphernalia by cannabis establishment. No cannabis establishment shall display cannabis, cannabis products or drug paraphernalia in a manner that is visible to the general public from a public right-of-way not on state lands or waters managed by the Department of Energy and Environmental Protection.

(June Sp. Sess. P.A. 21-1, S. 53.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-421dd. Restrictions on activities of certain state employees or members involved in the regulation of cannabis. Restrictions on former state employees, members or legislators obtaining a cannabis establishment license. (a) No member of the Social Equity Council and no employee of the Social Equity Council or department who carries out the licensing, inspection, investigation, enforcement or policy decisions authorized by this chapter, and any regulations enacted pursuant thereto, may, directly or indirectly, have any management or financial interest in the cultivation, manufacture, sale, transportation, delivery or testing of cannabis in this state, nor receive any commission or profit from nor have any financial interest in purchases or sales made by cannabis establishments that are licensed pursuant to this chapter and authorized to make such purchases or sales pursuant to such license. No provision of this section shall prevent any such member or employee from purchasing and keeping in his or her possession, for his or her personal use or the use of such member's or employee's family or guests, any cannabis which may be purchased or kept by any person by virtue of this chapter.

(b) No former member of the Social Equity Council and no former employee of the Social Equity Council or department described in subsection (a) of this section shall, within two years of leaving state service, be eligible to apply either individually or with a group of individuals for a cannabis establishment license.

(c) No member of the General Assembly or state-wide elected public official shall, within two years of leaving state service, be eligible to apply either individually or with a group of individuals for a cannabis establishment license.

(June Sp. Sess. P.A. 21-1, S. 51; P.A. 24-115, S. 7.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021; P.A. 24-115 amended Subsec. (a) by substituting references to Ch. 420h for references to RERACA, “financial interest” for “interest” and “cannabis establishments” for “persons”, and made conforming changes, effective June 4, 2024.

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Sec. 21a-421ee. Denial of professional licenses due to employment or affiliation with a cannabis establishment or legal possession, use or certain convictions for possession of cannabis restricted. Except when required by federal law, an agreement between the federal government and the state, or because of a substantial risk to public health or safety, no state entity shall deny a professional license because of an individual's: (1) Employment or affiliation with a cannabis establishment; (2) possession or use of cannabis that is legal under section 21a-279a, or chapter 420f; or (3) cannabis use or possession conviction for an amount less than four ounces.

(June Sp. Sess. P.A. 21-1, S. 12.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-421ff. Cannabis establishments, backers and employees not subject to arrest or certain other penalties. Exception. Notwithstanding any provision of the general statutes, no cannabis establishment, employee, or backer of a cannabis establishment may be subject to arrest or prosecution, penalized in any manner, including, but not limited to, being subject to any civil penalty, or denied any right or privilege, including, but not limited to, being subject to any disciplinary action by a professional licensing board, for the acquisition, distribution, possession, use or transportation of cannabis or paraphernalia related to cannabis in his or her capacity as a cannabis establishment, cannabis employee, or backer so long as such person's activity is in accordance with the laws and regulations for such person's license or registration type set forth in RERACA.

(June Sp. Sess. P.A. 21-1, S. 11.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Secs. 21a-421gg to 21a-421zz. Reserved for future use.

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Sec. 21a-421aaa. Sale or delivery of cannabis or cannabis paraphernalia to person under twenty-one. Any cannabis establishment licensee or any servant or agent of a licensee who sells or delivers cannabis or cannabis paraphernalia to any person under twenty-one years of age shall be guilty of a class A misdemeanor. For purposes of this section, “paraphernalia” has the same meaning as provided in section 21a-420.

(June Sp. Sess. P.A. 21-1, S. 105.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-421bbb. Inducement of person under twenty-one to procure cannabis. Any person who induces any person under twenty-one years of age to procure cannabis from any person licensed to sell such cannabis shall be guilty of a class A misdemeanor. The provisions of this section shall not apply to (1) the procurement of cannabis by a person over eighteen years of age who is an employee registered pursuant to the provisions of section 21a-421a where such procurement is made in the course of such person's employment or business, or (2) any such inducement in furtherance of an official investigation or enforcement activity conducted by a law enforcement agency. Nothing in this section shall be construed to prevent any action from being taken against any person permitted to sell cannabis who has sold cannabis to a person under twenty-one years of age who is participating in an official investigation or enforcement activity conducted by a law enforcement agency.

(June Sp. Sess. P.A. 21-1, S. 107.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-421ccc. Possession of cannabis in dwelling unit or private property by person under twenty-one. (a) No person having possession of, or exercising dominion and control over, any dwelling unit or private property shall: (1) Knowingly or recklessly permit any person under twenty-one years of age to possess cannabis in violation of section 21-279a, in such dwelling unit or on such private property, or (2) knowing that any person under twenty-one years of age possesses cannabis in violation of section 21-279a, in such dwelling unit or on such private property, fail to make reasonable efforts to halt such possession.

(b) Any person who violates the provisions of subsection (a) of this section shall be guilty of a class A misdemeanor.

(June Sp. Sess. P.A. 21-1, S. 109.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-421ddd. Sale, delivery, or giving of cannabis to person under twenty-one by person aged twenty-three or older. Any person twenty-three years of age or older who sells, delivers or gives cannabis, as defined in section 21a-420, to any person under twenty-one years of age, and who knew or should have known that such person was under twenty-one years of age, shall be guilty of a class A misdemeanor.

(June Sp. Sess. P.A. 21-1, S. 163.)

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Sec. 21a-421eee. Loitering on cannabis retailer or hybrid retailer premises. (a) No retailer or hybrid retailer or employee or agent of a retailer or hybrid retailer shall permit any person under twenty-one years of age to loiter on his or her premises where cannabis is kept for sale or be in any room on such premises where cannabis is consumed, unless such person is (1) an employee of the retailer or hybrid retailer, (2) in the case of hybrid retailer or employee or agent of a hybrid retailer, permitted under chapter 420f to possess or consume cannabis, or (3) accompanied by his or her parent or guardian.

(b) Any retailer or hybrid retailer or employee or agent of a retailer or hybrid retailer who violates the provisions of subsection (a) of this section shall be (1) fined not more than one thousand dollars for a first offense, and (2) guilty of a class B misdemeanor for any subsequent offense.

(June Sp. Sess. P.A. 21-1, S. 110.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-421fff. Use of motor vehicle operator's license or identity card as proof of age. Misrepresentation of age to procure cannabis. (a) Each person who attains the age of twenty-one years and has a motor vehicle operator's license or identity card issued in accordance with the provisions of section 1-1h, containing a full-face photograph of such person, may use, and each licensee may accept, such license as legal proof of the age of the person for the purposes of RERACA.

(b) Any person who, for the purpose of procuring cannabis, misrepresents his or her age or uses or exhibits an operator's license belonging to any other person shall for (1) a first offense, be fined not more than two hundred fifty dollars, and (2) any subsequent offense, be guilty of a class D misdemeanor.

(c) The provisions of this section shall not apply to any person employed by, or who has contracted directly or indirectly with, a state agency for the purposes of testing the age verification and product controls of cannabis retailers while performing such testing duties.

(June Sp. Sess. P.A. 21-1, S. 108.)

History: June Sp.Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-421ggg. Photographing person whose age is in question and photocopying such person's driver's license or identity card. Use of photograph or photography. Affirmative defense. Use of online age verification system. (a) A cannabis establishment issued a license pursuant to RERACA or an agent or employee of such licensee may require any person whose age is in question to have such person's photograph be taken by, and a photocopy of such person's driver's license or identity card issued in accordance with the provisions of section 1-1h be made by, such licensee, agent or employee as a condition of selling or delivering cannabis or cannabis products to such person.

(b) No licensee or agent or employee of a licensee shall use a photograph taken or a photocopy made pursuant to subsection (a) of this section for a purpose other than the purpose specified in said subsection.

(c) No licensee or agent or employee of a licensee shall sell or otherwise disseminate a photograph taken or a photocopy made pursuant to subsection (a) of this section, or any information derived from such photograph or photocopy, to any third party for any purpose including, but not limited to, any marketing, advertising or promotional activities, except that a licensee or an agent or employee of a licensee may release such photograph, photocopy or information pursuant to a court order.

(d) In any prosecution of a licensee or an agent or employee of a licensee for selling or delivering cannabis to a person under twenty-one years of age in violation of section 21a-421aaa, or for providing cannabis to a person under twenty-one years of age in violation of section 21a-421ddd, it shall be an affirmative defense that such licensee, agent or employee sold or delivered cannabis to such person in good faith and in reasonable reliance upon the identification presented by such person and, pursuant to subsection (a) of this section, photographed the person and made a photocopy of such identification. In support of such defense, such licensee, agent or employee may introduce evidence of such photograph and photocopy.

(e) The Commissioner of Consumer Protection may require a cannabis establishment to use an online age verification system.

(June Sp. Sess. P.A. 21-1, S. 106.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-421hhh. Certain gifts, sales and transfers of cannabis prohibited. Penalties. (a) Notwithstanding any provision of the general statutes, no person shall gift, sell or transfer cannabis to another person: (1) To induce, or in exchange for, any donation for any purpose, including, but not limited to, any charitable donation or any donation made to gain admission to any event; (2) at any location, other than a dispensary facility, retailer or hybrid-retailer, (A) where a consumer may purchase any item other than cannabis, a cannabis product or services related to cannabis, or (B) that requires consideration, including, but not limited to, membership in any club, in order to gain admission to such location; or (3) as part of any giveaway associated with attendance at any event, including, but not limited to, any giveaway made by way of a door prize, goodie bag or swag bag. The provisions of this subsection shall not be construed to prohibit any gift of cannabis between individuals with a bona fide social relationship, provided such gift is made without consideration and is not associated with any commercial transaction.

(b) Any person who violates the provisions of subsection (a) of this section shall, in addition to any other penalty provided by law: (1) Be subject to a fine imposed by a municipality under section 7-152f; (2) be fined one thousand dollars per offense, in accordance with the provisions of section 51-164n, by the Commissioner of Emergency Services and Public Protection; and (3) be subject to an administrative hearing held by the Commissioner of Revenue Services pursuant to chapter 54 for failure to pay taxes, which may result in a civil penalty of not more than one thousand dollars per violation. For the purposes of this subsection, “per offense” and “per violation” mean either per transaction or per day the violation continues, as determined by the Commissioner of Emergency Services and Public Protection for the purposes of subdivision (2) of this subsection or the Commissioner of Revenue Services for the purposes of subdivision (3) of this subsection.

(P.A. 22-103, S. 2.)

History: P.A. 22-103 effective May 24, 2022.

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PART III

MISCELLANEOUS PROVISIONS

Sec. 21a-422. Construction of positive drug test for 11-nor-9-carboxy-delta-9-tetrahydrocannabinol. A drug test of an individual that yields a positive result solely for 11-nor-9-carboxy-delta-9-tetrahydrocannabinol shall not be construed, without other evidence, as proof that such individual is under the influence of or impaired by cannabis.

(June Sp. Sess. P.A. 21-1, S. 93.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2022.

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Sec. 21a-422a. Cannabinoid metabolites in bodily fluids: Denial of medical care; actions or proceedings by the Department of Children and Families. The presence of cannabinoid metabolites in the bodily fluids of a person:

(1) With respect to a patient, shall not constitute the use of an illicit substance resulting in denial of medical care, including organ transplantation, and a patient's use of cannabis products may only be considered with respect to evidence-based clinical criteria; and

(2) With respect to a parent or legal guardian of a child or newborn infant, or a pregnant woman, shall not form the sole or primary basis for any action or proceeding by the Department of Children and Families, or any successor agencies provided, nothing in this subdivision shall preclude any action or proceeding by such department based on harm or risk of harm to a child or the use of information on the presence of cannabinoid metabolites in the bodily fluids of any person in any action or proceeding.

(June Sp. Sess. P.A. 21-1, S. 94.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-422b. Positive drug test of student and enrollment in educational institution. A drug test of a student that yields a positive result solely for 11-nor-9-carboxy-delta-9-tetrahydrocannabinol shall not form the sole basis for an educational institution to refuse to enroll or to continue to enroll, or otherwise penalize such student, unless failing to do so would put the educational institution in violation of a federal contract or cause it to lose federal funding, or such student is being drug tested as required by the National Collegiate Athletic Association and any such action is taken as required by the policies of the National Collegiate Athletic Association.

(June Sp. Sess. P.A. 21-1, S. 95.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-422c. Use or possession of cannabis plant material, cannabis or cannabis product at institution of higher education. Prohibitions re actions against student. Exception. No institution of higher education, as defined in section 10a-55, shall revoke any financial aid, student loans, or expel a student, solely for use or possession of less than (1) four ounces of cannabis plant material, (2) an equivalent amount of cannabis product, as provided in subsection (i) of section 21a-279a, or (3) an equivalent amount of a combination of cannabis and cannabis product, as provided in subsection (i) of section 21a-279a, unless complying with the provisions of this section would violate federal law or a federal contract, or failing to take the actions prohibited under this section would jeopardize an institution of higher education's federal funding.

(June Sp. Sess. P.A. 21-1, S. 96.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-422d. Reserved for future use.

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Sec. 21a-422e. Program re collection of public health information on cannabis. Report. (a) There is established, within the Department of Public Health, a program to collect and abstract timely public health information on cannabis associated illness and adverse events, nonfatal and fatal injuries and cannabis use poisoning data, from state and national data sources. Such program shall include, but need not be limited to, the following: (1) Serving as a data coordinator, analysis and reporting source of cannabis data and statistics that include, but are not limited to, illness, adverse events, injury, pregnancy outcomes, childhood poisoning, adult and youth use, cannabis-related emergency room visits and urgent care episodic mental health visits; (2) performing epidemiologic analysis on demographic, health and mortality data to identify risk factors and changes in trends; (3) working with the Departments of Consumer Protection and Mental Health and Addiction Services and any other entity that the Commissioner of Public Health deems necessary to disseminate public health alerts; and (4) sharing state-wide data to inform policy makers and citizens on the impact of cannabis legalization by posting public health prevention information and cannabis use associated morbidity and mortality statistics to the Department of Public Health's Internet web site.

(b) The Department of Public Health shall, not later than April 1, 2023, and annually thereafter, report in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly with cognizance relating to public health, human services, and appropriations and the budgets of state agencies about the public health information on cannabis collected by the department under subsection (a) of this section.

(June Sp. Sess. P.A. 21-1, S. 146.)

History: June Sp. Sess. P.A. 21-1 effective January 1, 2022.

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Sec. 21a-422f. Municipal authority re establishing cannabis establishments. Restrictions. Zoning. Special permits. (a) As used in this section, “municipality” means any town, city or borough, consolidated town and city or consolidated town and borough, and a district establishing a zoning commission under section 7-326.

(b) Any municipality may, by amendment to such municipality's zoning regulations or by local ordinance, (1) prohibit the establishment of a cannabis establishment, (2) establish reasonable restrictions regarding the hours and signage within the limits of such municipality, or (3) establish restrictions on the proximity of cannabis establishments to any of the establishments listed in subdivision (1) of subsection (a) of section 30-46. The chief zoning official of a municipality shall report, in writing, any zoning changes adopted by the municipality regarding cannabis establishments pursuant to this subsection to the Secretary of the Office of Policy and Management and to the department not later than fourteen days after the adoption of such changes.

(c) Unless otherwise provided for by a municipality through its zoning regulations or ordinances, a cannabis establishment shall be zoned as if for any other similar use, other than a cannabis establishment, would be zoned.

(d) Any restriction regarding hours, zoning and signage of a cannabis establishment adopted by a municipality shall not apply to an existing cannabis establishment located in such municipality if such cannabis establishment does not convert to a different license type, for a period of five years after the adoption of such prohibition or restriction.

(e) For purposes of ensuring compliance with this section, a special permit or other affirmative approval shall be required for any retailer or micro-cultivator seeking to be located within a municipality. When awarding final licenses for a retailer or micro-cultivator, the Department of Consumer Protection may assume that, if an applicant for such final license has obtained zoning approval, the approval of a final license for such applicant shall not result in a violation of this section or any municipal restrictions on the number or density of cannabis establishments.

(June Sp. Sess. P.A. 21-1, S. 148; P.A. 22-103, S. 9.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021 (Revisor's note: In Subsec. (b) “subsection (a) of subdivision (1)” was changed to “subdivision (1) of subsection (a)” for accuracy); P.A. 22-103 deleted former Subsecs. (e) and (f) re maximum number of retailers or micro-cultivators in municipality, redesignated existing Subsec. (g) as Subsec. (e) and amended same by deleting provision re special permits and maximum number of retailers or micro-cultivators in municipality, and made technical and conforming changes, effective May 24, 2022.

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Sec. 21a-422g. Vote re recreational sale of marijuana in a municipality. Prohibition on restricting delivery or transport of cannabis. Donations from cannabis establishments prohibited. Municipal costs re opening. (a) Upon the petition of not less than ten per cent of the electors of any municipality, lodged with the town clerk at least sixty days before the date of any regular election, as defined in section 9-1, the selectmen of the municipality shall warn the electors of such municipality that, at such regular election, a vote shall be taken to determine: (1) Whether or not the recreational sale of marijuana shall be permitted in such municipality, or (2) whether the sale of marijuana shall be permitted in such municipality in one or more of the classes of license of cannabis establishments. The ballot label designations in a vote upon the question of cannabis establishment license shall be “Shall the sale of recreational marijuana be allowed in .... (Name of municipality)?” or “Shall the sale of cannabis under (Specified license or Licenses) be allowed in .... (Name of municipality)?” or “Shall the sale of recreational marijuana be prohibited (No Licenses) in .... (Name of municipality)?” and shall be provided in accordance with the provisions of section 9-250. No elector shall vote for more than one designation. Such vote shall be taken in the manner prescribed in section 9-369 and shall become effective on the first Monday of the month next succeeding such election and shall remain in force until a new vote is taken; provided such vote may be taken at a special election called for the purpose in conformity with the provisions of section 9-164 and provided at least one year shall have elapsed since the previous vote was taken. The provisions of chapter 145 concerning absentee voting at referenda shall apply to all votes taken upon the question of cannabis establishment license. Any class of cannabis establishments already allowed in a municipality shall not be affected by any vote.

(b) No municipality shall prohibit delivery of cannabis to a consumer, qualifying patient or caregiver when the delivery is made by a retailer, hybrid retailer, dispensary facility, delivery service, micro-cultivator or other person authorized to make such delivery pursuant to RERACA. No municipality shall prohibit the transport of cannabis to, from or through such municipality by any person licensed or registered pursuant to RERACA to transport cannabis.

(c) No municipality or local official shall condition any official action, or accept any donation in moneys or in kind, from any cannabis establishment or from an individual or corporation that has applied for a license to open or operate a cannabis establishment in such municipality. No municipality shall negotiate or enter into a local host agreement with a cannabis establishment or a person that has applied for a license to open or operate a cannabis establishment in such municipality.

(d) For up to thirty days after the opening of a retailer or hybrid retailer, a municipality may charge such retailer or hybrid retailer for any necessary and reasonable costs incurred by the municipality for provision of public safety services in relation to such opening, including, but not limited to, public safety costs incurred to direct traffic, not to exceed fifty thousand dollars.

(June Sp. Sess. P.A. 21-1, S. 83.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Secs. 21a-422h and 21a-422i. Reserved for future use.

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Sec. 21a-422j. Compacts, memoranda of understanding or agreements with Mashantucket Pequot Tribe or Mohegan Tribe of Indians of Connecticut re RERACA and possession, delivery, production, processing or use of cannabis. (a) The Governor may enter into one or more compacts, amendments to existing compacts, memoranda of understanding or agreements with the Mashantucket Pequot Tribe or with the Mohegan Tribe of Indians of Connecticut, or both, to coordinate the administration and execution of laws and regulations of this state, as set forth in RERACA, and of laws and regulations of said tribes relating to the possession, delivery, production, processing or use of cannabis. Any such compact, amendment to existing compact, memorandum of understanding or agreement may contain provisions including, but not limited to, those relating to:

(1) Criminal and civil law enforcement;

(2) Laws and regulations relating to the possession, delivery, production, processing or use of cannabis; and

(3) Laws and regulations relating to taxation.

(b) Any compact, amendment to existing compact, memorandum of understanding or agreement entered into pursuant to subsection (a) of this section shall:

(1) Provide for the preservation of public health and safety;

(2) Ensure the security of any cannabis production, processing, testing or retail facilities on tribal land; and

(3) Regulate any business involving cannabis that passes between the reservation of the tribal nation that is a party to such compact, amendment to existing compact, memorandum of understanding or agreement, and other areas in the state.

(c) Notwithstanding the provisions of section 3-6c, any compact, amendment to existing compact, memorandum of understanding or agreement, or renewal thereof, entered into by the Governor with the Mashantucket Pequot Tribe or with the Mohegan Tribe of Indians of Connecticut pursuant to subsection (a) of this section, shall be considered approved by the General Assembly under section 3-6c upon the Governor entering into such compact, amendment to existing compact, memorandum of understanding or agreement, or renewal thereof, without any further action required by the General Assembly.

(June Sp. Sess. P.A. 21-1, S. 150.)

History: June Sp.Sess. P.A. 21-1 effective July 1, 2021.

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(1) “Material change” means: (A) The addition of a backer, (B) a change in the ownership interest of an existing backer, (C) the merger, consolidation or other affiliation of a cannabis establishment with another cannabis establishment, (D) the acquisition of all or part of a cannabis establishment by another cannabis establishment or backer, and (E) the transfer of assets or security interests from a cannabis establishment to another cannabis establishment or backer;

(2) “Cannabis establishment” has the same meaning as provided in section 21a-420;

(3) “Person” has the same meaning as provided in section 21a-420; and

(4) “Transfer” means to sell, transfer, lease, exchange, option, convey, give or otherwise dispose of or transfer control over, including, but not limited to, transfer by way of merger or joint venture not in the ordinary course of business.

(b) No person shall, directly or indirectly, enter into a transaction that results in a material change to a cannabis establishment, unless all parties involved in the transaction file a written notification with the Attorney General pursuant to subsection (c) of this section and the waiting period described in subsection (d) of this section has expired.

(c) The written notice required under subsection (b) of this section shall be in such form and contain such documentary material and information relevant to the proposed transaction as the Attorney General deems necessary and appropriate to enable the Attorney General to determine whether such transaction, if consummated, would violate antitrust laws.

(d) The waiting period required under subsection (b) of this section shall begin on the date of the receipt by the Attorney General's office of the completed notification required under subsection (c) of this section from all parties to the transaction and shall end on the thirtieth day after the date of such receipt, unless such time is extended pursuant to subsection (f) of this section.

(e) The Attorney General may, in individual cases, terminate the waiting period specified in subsection (d) of this section and allow any person to proceed with any transaction.

(f) The Attorney General may, prior to the expiration of the thirty-day waiting period, require the submission of additional information or documentary material relevant to the proposed transaction from a person required to file notification with respect to such transaction under subsection (b) of this section. Upon request for additional information under this subsection, the waiting period shall be extended until thirty days after the parties have substantially complied, as determined solely by the Attorney General, with such request for additional information.

(g) Any information or documentary material filed with the Attorney General pursuant to this section shall not be subject to disclosure under the Freedom of Information Act, as defined in section 1-200, and no such information or documentary material may be made public, except as may be relevant to any administrative or judicial action or proceeding. Such information or documentary material shall be returned to the person furnishing such information or documentary material upon the termination of the Attorney General's review or final determination of any action or proceeding commenced thereunder.

(h) (1) Any person, or any officer, director or partner thereof, who fails to comply with any provision of this section shall be liable to the state for a civil penalty of not more than twenty-five thousand dollars for each day during which such person is in violation of this section. Such penalty may be recovered in a civil action brought by the Attorney General.

(2) If any person, or any officer, director, partner, agent or employee thereof, fails substantially to comply with the notification requirement under subsection (b) of this section or any request for the submission of additional information or documentary material under subsection (f) of this section within the waiting period specified in subsection (d) of this section and as may be extended under subsection (f) of this section, the court:

(A) May order compliance;

(B) Shall extend the waiting period specified in subsection (d) of this section and as may have been extended under subsection (f) of this section until there has been substantial compliance, except that, in the case of a tender offer, the court may not extend such waiting period on the basis of a failure, by the person whose stock is sought to be acquired, to comply substantially with such notification requirement or any such request; and

(C) May grant such other equitable relief as the court in its discretion determines necessary or appropriate, upon application of the Attorney General.

(June Sp. Sess. P.A. 21-1, S. 61.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-422l. Possession and consumption of cannabis in hotels, motels or similar lodging. Smoking of cannabis and usage of electronic cannabis delivery system or vapor product. (a) As used in this section, “cannabis” has the same meaning as provided in section 21a-420 and “electronic cannabis delivery system” and “vapor product” have the same meanings as provided in section 19a-342a. No hotel, motel or similar lodging shall prohibit the legal possession or consumption of cannabis in any nonpublic area of such hotel, motel or similar lodging.

(b) Notwithstanding the provisions of subsection (a) of this section, a hotel, motel or similar lodging shall prohibit the smoking of cannabis and the use of an electronic cannabis delivery system or a vapor product containing cannabis in any location of such hotel, motel or similar lodging.

(June Sp. Sess. P.A. 21-1, S. 89.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2022.

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Sec. 21a-422m. Use of cannabis in hospitals. As used in this section, “hospital” has the same meaning as provided in section 19a-490 and “cannabis” has the same meaning as provided in section 21a-420. No hospital shall be required to allow a patient to use cannabis while at such hospital. A hospital may have a policy that sets forth restrictions patients shall follow regarding cannabis use.

(June Sp. Sess. P.A. 21-1, S. 104.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-422n. Possession of cannabis in Department of Correction facilities or halfway houses. The Commissioner of Correction may prohibit the possession of cannabis in any Department of Correction facility or halfway house.

(June Sp. Sess. P.A. 21-1, S. 92.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-422o. Regulation of cannabis in the workplace. Definitions. As used in this section and sections 21a-422p to 21a-422s, inclusive:

(1) “Employee” means any individual employed or permitted to work by an employer, or an independent contractor;

(2) “Employer” has the same meaning as provided in section 31-58;

(3) “Exempted employer” means an employer whose primary activity is (A) mining, including, but not limited to, an employer with a two-digit North American Industry Classification System code of 21, (B) utilities, including, but not limited to, any employer with a two-digit North American Industry Classification System code of 22, (C) construction, including, but not limited to, an employer with a two-digit North American Industry Classification System code of 23, (D) manufacturing, including, but not limited to, an employer with a two-digit North American Industry Classification System code of 31, 32 or 33, (E) transportation or delivery, including, but not limited to, an employer with a two-digit North American Industry Classification System code of 48 or 49, (F) educational services, including, but not limited to, an employer with a two-digit North American Industry Classification System code of 61, (G) health care or social services, including, but not limited to, an employer with a two-digit North American Industry Classification System code of 62, (H) justice, public order, and safety activities, including, but not limited to, an employer with a four-digit North American Industry Classification System code of 9221, or (I) national security and international affairs, including, but not limited to, those with a three-digit North American Industry Classification System code of 928. As used in this subdivision, “Employer” includes any subdivision of a business entity that is a standalone business unit, including, but not limited to, having its own executive leadership, having some or significant autonomy and having its own financial statements and results;

(4) “Exempted position” means a position:

(A) As a firefighter;

(B) As an emergency medical technician;

(C) As a police officer or peace officer, in a position with a law enforcement or investigative function at a state or local agency or in a position with the Department of Correction involving direct contact with inmates;

(D) Requiring operation of a motor vehicle, for which federal or state law requires any employee such position to submit to screening tests, including, but not limited to, any position requiring a commercial driver's license or any position subject to 49 CFR 40, 14 CFR 120 or 49 CFR 16;

(E) Requiring certification of completion of a course in construction safety and health approved by the federal Occupational Safety and Health Administration;

(F) Requiring a federal Department of Defense or Department of Energy national security clearance;

(G) For which the provisions of sections 21a-422p to 21a-422s, inclusive, are inconsistent or otherwise in conflict with the provisions of an employment contract or collective bargaining agreement;

(H) For which the provisions of sections 21a-422p to 21a-422s, inclusive, would be inconsistent or otherwise in conflict with any provision of federal law;

(I) Funded in whole or in part by a federal grant;

(J) Requiring certification of completion of a course in construction safety and health approved by the federal Occupational Safety and Health Administration;

(K) Requiring the supervision or care of children, medical patients or vulnerable persons;

(L) With the potential to adversely impact the health or safety of employees or members of the public, in the determination of the employer;

(M) At a nonprofit organization or corporation, the primary purpose of which is to discourage use of cannabis products or any other drug by the general public; or

(N) At an exempt employer;

(5) “Exempted employee” means an employee holding an exempted position or working for an exempted employer;

(6) “On call” means a period of time for which an employee (A) is scheduled with at least twenty-four hours' notice by his or her employer to be on standby or otherwise responsible for performing tasks related to his or her employment, either at the employer's premises or other previously designated location by his or her employer or supervisor to perform a work-related task, and (B) is being compensated for such scheduled time;

(7) “Work hours” means any period of time for which such employee is compensated by an employer and is performing job duties or is reasonably expected to be performing job duties; and

(8) “Workplace” means the employer's premises, including any building, real property, and parking area under the control of the employer, and area used by an employee while in the performance of the employee's job duties, and the employer's vehicles, whether leased, rented, or owned.

(June Sp. Sess. P.A. 21-1, S. 97.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2022.

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Sec. 21a-422p. Policies re employee possession, use or consumption of cannabis. (a) No employer shall be required to make accommodations for an employee or be required to allow an employee to: (1) Perform his or her duties while under the influence of cannabis, or (2) possess, use or otherwise consume cannabis while performing such duties or on the premises of the employer, except possession of palliative cannabis by a qualifying patient under chapter 420f.

(b) (1) An employer may implement a policy prohibiting the possession, use or other consumption of cannabis by an employee, except (A) as provided in section 21a-408p, and (B) for possession of palliative cannabis by a qualifying patient under chapter 420f, provided such policy is: (i) In writing in either physical or electronic form, and (ii) made available to each employee prior to the enactment of such policy. The employer shall make any such policy available to each prospective employee at the time the employer makes an offer or conditional offer of employment to the prospective employee.

(2) (A) No employer shall discharge from employment or take any adverse action against any employee with respect to compensation, terms, conditions or other privileges of employment because such employee does or does not smoke, vape, aerosolize or otherwise use cannabis products outside of the workplace, unless such employment action is made pursuant to a policy established under subdivision (1) of this subsection.

(B) No employer shall discharge from employment or take any adverse action against any employee or prospective employee with respect to compensation, terms, conditions, refusal to hire or other privileges of employment because such employee or prospective employee had or had not smoked, vaped, aerosolized or otherwise used cannabis products outside of the workplace before such employee or prospective employee was employed by such employer, unless failing to do so would put the employer in violation of a federal contract or cause it to lose federal funding.

(c) Nothing in sections 21a-422o to 21a-422s, inclusive: (1) Requires an employer to amend or repeal, or affect, restrict or preempt the rights and obligations of employers to maintain a drug and alcohol-free workplace, or (2) shall limit an employer from taking appropriate adverse or other employment action upon (A) reasonable suspicion of an employee's usage of cannabis while engaged in the performance of the employee's work responsibilities at the workplace or on call, or (B) determining that an employee manifests specific, articulable symptoms of drug impairment while working at the workplace or on call that decrease or lessen the employee's performance of the duties or tasks of the employee's job position, including, but not limited to, (i) symptoms of the employee's speech, physical dexterity, agility, coordination, demeanor, irrational or unusual behavior, or negligence or carelessness in operating equipment of machinery, (ii) disregard for the safety of the employee or others, or involvement in any accident that results in serious damage to equipment or property, (iii) disruption of a production or manufacturing process, or (iv) carelessness that results in any injury to the employee or others.

(d) (1) The provisions of subsection (b) of this section shall not apply to an exempted employer, an exempted employee or to any employee who holds or is applying for an exempted position.

(2) Nothing in sections 21a-422o to 21a-422s, inclusive, shall limit or prevent an employer from subjecting an employee or applicant to drug testing or a fitness for duty evaluation, or from taking adverse action, including, but not limited to, disciplining an employee, terminating the employment of an employee or rescinding a conditional job offer to a prospective employee pursuant to a policy established under subdivision (1) of subsection (b) of this section.

(June Sp. Sess. P.A. 21-1, S. 98.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2022.

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Sec. 21a-422q. Drug test of prospective and existing employees resulting in positive result for 11-nor-9-carboxy-delta-9-tetrahydrocannabinol. A drug test of a prospective or existing employee, other than a prospective or existing exempted employee, that yields a positive result solely for 11-nor-9-carboxy-delta-9-tetrahydrocannabinol, shall not form the sole basis for refusal to employ or to continue to employ or otherwise penalize such prospective or existing employee, unless (1) failing to do so would put the employer in violation of a federal contract or cause it to lose federal funding, (2) the employer reasonably suspects an employee's usage of cannabis while engaged in the performance of the employee's work responsibilities, (3) the employee manifests specific, articulable symptoms of drug impairment while working that decrease or lessen the employee's performance of the duties or tasks of the employee's job position, including, but not limited to, (A) symptoms of the employee's speech, physical dexterity, agility, coordination, demeanor, irrational or unusual behavior or negligence or carelessness in operating equipment of machinery, (B) disregard for the safety of the employee or others, or involvement in any accident that results in serious damage to equipment or property, (C) disruption of a production or manufacturing process, or (D) carelessness that results in any injury to the employee or others, or (4) except as provided in section 21a-408p, such drug test was pursuant to a random drug testing policy pursuant to subdivision (1) of subsection (b) of section 21a-422p or was of a prospective employee with a conditional job offer, and such employer has established in such policy that a positive drug test for 11-nor-9-carboxy-delta-9-tetrahydrocannabinol may result in an adverse employment action.

(June Sp. Sess. P.A. 21-1, S. 99.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2022.

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Sec. 21a-422r. Employer violations. Civil action. Remedies. Exemptions. Labor Department not to enforce. (a) Except as provided in subsection (b) of this section, if an employer has violated any provision of section 21a-422p or 21a-422q, an individual aggrieved by such violation may bring a civil action for judicial enforcement of such provision in the superior court for the judicial district where the violation is alleged to have occurred, or where the employer has its principal office, within ninety days of such alleged violation, except any action involving a state agency may be brought in the superior court for the judicial district of Hartford. Any individual who prevails in such civil action may be awarded reinstatement of the individual's previous employment or job offer, back wages and reasonable attorney's fees and costs, to be taxed by the court.

(b) Nothing in this section shall be construed to create or imply a cause of action for any person against an employer: (1) For actions taken based on the employer's good faith belief that an employee used or possessed cannabis, except possession of palliative cannabis by a qualifying patient under chapter 420f, in the employer's workplace, while performing the employee's job duties, during work hours, or while on call in violation of the employer's employment policies; (2) for actions taken, including discipline or termination of employment, based on the employer's good faith belief that an employee was unfit for duty or impaired as a result of the use of cannabis, or under the influence of cannabis, while at the employer's workplace, while performing the employee's job duties, during work hours or while on call in violation of the employer's workplace drug policy; (3) for injury, loss or liability to a third party if the employer neither knew nor had reason to know that the employee was impaired by cannabis; (4) for subjecting an employee to drug testing or a fitness for duty evaluation, pursuant to a policy established under subdivision (1) of subsection (b) of section 21a-422p; (5) for subjecting a prospective employee to drug testing or taking adverse action against a prospective employee, including, but not limited to, rescission of a conditional job offer, based on the results of a drug test, so long as no employer takes adverse action against a prospective employee in regard to a drug test that is solely positive for 11-nor-9-carboxy-delta-9-tetrahydrocannabinol unless such employer is an exempted employer, such prospective employee is applying for an exempted position, or the employer has established in an employment policy pursuant to subdivision (1) of subsection (b) of section 21a-422p that a positive drug test for 11-nor-9-carboxy-delta-9-tetrahydrocannabinol may result in adverse employment action; or (6) if such employer is an exempted employer or the claims are regarding an exempted position.

(c) Notwithstanding the provisions of chapter 557, no employer, officer, agent or other person who violates any provision of sections 21a-422p to 21a-422s, inclusive, shall be liable to the Labor Department for a civil penalty, nor shall the Labor Department undertake an investigation of an employer, officer, agent or other person based solely on an allegation that such employer, officer, agent or other person violated the provisions of this section.

(June Sp. Sess. P.A. 21-1, S. 100.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2022.

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Sec. 21a-422s. RERACA not applicable to drug testing or conditions of continued employment or for hiring employees in certain cases. (a) Notwithstanding the provisions of sections 21a-422p to 21a-422r, inclusive, nothing in RERACA shall be construed to apply to drug testing, conditions of continued employment or conditions for hiring employees required pursuant to:

(1) Any regulation of the federal Department of Transportation, if such regulation requires testing of a prospective employee in accordance with 49 CFR 40 or any regulations of state agencies that adopt a federal regulation for purposes of enforcing the requirements of such regulation with respect to intrastate commerce;

(2) Any contract entered into between the federal government and an employer or any grant of financial assistance from the federal government to an employer that requires drug testing of prospective employees as a condition of receiving the contract or grant;

(3) Any federal law or state statute, regulation or order that requires drug testing of prospective employees for safety or security purposes; or

(4) Any applicant whose prospective employer is a party to a valid collective bargaining agreement that specifically addresses drug testing, conditions of hiring, or conditions of continued employment of such applicant.

(b) Nothing in sections 21a-422p to 21a-422r, inclusive, shall apply to the privileges, qualifications, credentialing, review or discipline of nonemployee, licensed healthcare professionals on the medical staff of a hospital or other medical organization.

(June Sp. Sess. P.A. 21-1, S. 101.)

History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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Sec. 21a-422t. Sign re storage and disposal of cannabis and cannabis products. Not later than January 1, 2023, each retailer, as defined in section 21a-420, and hybrid retailer, as defined in section 21a-420, shall post a sign in a conspicuous place on the premises of such retailer or hybrid retailer notifying consumers that they may visit the Internet web site of the Department of Consumer Protection for information concerning the safe storage of cannabis and cannabis products and disposal of unused and expired cannabis and cannabis products.

(P.A. 22-81, S. 20.)

History: P.A. 22-81 effective July 1, 2022.

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Secs. 21a-423 and 21a-424. Reserved for future use.

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