Connecticut’s cannabis market is poised for notable changes following a 2025 legislative session that saw text amendments being made into the 11th hour. The proposed updates have passed both legislative chambers and now await the Governor’s signature. Below is an initial reaction to the headline amendments, with more analysis to come:
- Starting October 1, 2025, the THC potency cap can rise —from 60% to 70% for concentrates and from 30% to 35% for cannabis flower.
- Retailers may convert to Hybrid Retailers.
- Effective January 1, 2026, cultivator license holders may establish cultivation facilities outside of Disproportionately Impacted Areas (DIAs), subject to substantial restrictions including that all manufacturing activity (e.g., drying operations) must still take place within a DIA; they must cover employee transportation costs beginning at the time of hire (effectively introducing a signing bonus); and they are required to contribute to the Social Equity Fund. Cultivators and micro-cultivators can now also elect to operate their cultivation facility on a hemp farm outside a DIA, provided they lease the space from a hemp producer who must relinquish their hemp license and cannot have any ownership or control in the cannabis business. These licensees can create one Equity Joint Venture (EJV), but the grow operation must be operational before launching it.
- Cultivator licensees, whether final or provisional, are allowed to convert to a micro-cultivator license if they still meet Social Equity Applicant (SEA) requirements. Those who previously paid the $3 million fee may form up to two EJVs; others may form one.
- A High-THC beverage endorsement has been introduced, which will allow infused beverage manufacturers to manufacture high-potency drinks for sale exclusively outside of Connecticut.
- For hybrid retailers, pharmacist requirements have been eased. A licensed pharmacist must be on-site only eight consecutive hours per week, with telehealth access required during other hours of operation.
- Connecticut has added a new license category for infused beverage wholesalers.
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