What You Need to Know Before Connecticut Adult-Use Cannabis Licensing Applications Open

Since Gov. Lamont signed Connecticut's adult-use cannabis bill into law last summer, the Department of Consumer Protection and the Social Equity Council have been hard at work setting up the infrastructure to create a vibrant adult-use cannabis market. With the first round of cannabis licensing applications opening early next month, we prepared a recap of the crucial information you need to know before clicking the submit button.

1. When do lottery application windows open?

All applications via lottery unless otherwise stated.

• Disproportionately Impacted Area Cultivator: February 3, 2022 (non-lottery)

• Retailer: February 3, 2022

• Micro-cultivator: February 10, 2022

• Delivery Service: February 17, 2022

• Hybrid Retailer: February 24, 2022

• Food and Beverage: March 3, 2022

• Product Manufacturer: March 10, 2022

• Product Packager: March 17, 2022

• Transporter: March 24, 2022

Source: How many licenses will be available in Connecticut through the lottery?

2. What are the license caps?

• Disproportionately Impacted Area Cultivator: Unlimited

• Retailer: 6 general licenses, 6 Social Equity licenses

• Micro-cultivator: 2 general licenses, 2 Social Equity licenses

• Delivery Service: 5 general licenses, 5 Social Equity licenses

• Hybrid Retailer: 2 general licenses, 2 Social Equity licenses

• Food and Beverage: 5 general licenses, 5 Social Equity licenses

• Product Manufacturer: 3 general licenses, 3 Social Equity licenses

• Product Packager: 3 general licenses, 3 Social Equity licenses

• Transporter: 2 general licenses, 2 Social Equity licenses

Source: How many licenses will be available in Connecticut through the lottery?

3. What are the lottery entry fees?

Source: What are the license fees? (ct.gov)

4. Where can you locate a retailer or micro-cultivation facility?

Facilities can be located in towns with no zoning prohibition or moratorium on your cannabis establishment license type. There is also a limit on the number of retailer and micro cultivator licenses per 25,000 residents until June 30, 2024.

Source: Is there a limit to the number of retailers or micro-cultivators a town or city can have (ct.gov)

5. Where are the Disproportionately Impacted Areas?

Disproportionately Impact Areas are in regions of, or the entirety of: Stamford, Norwalk, Bridgeport, Stratford, Ansonia, Derby, Shelton, New Haven, East Haven, Beacon Falls, Wallingford, Meriden, Middleton, Waterbury, Morris, Torrington, Bristol, Plainville, New Britain, Hartford, East Hartford, Bloomfield, Windsor, Manchester, Vernon, Enfield, Windham, Norwich, New London, Hamden, and Groton.

Source: Disproportionately Impacted Areas, Identified for Public Act 21-1, An Act Concerning Responsible and Equitable Regulation of Adult-Use Cannabis

6. Who qualifies as a social equity applicant?

To submit a social equity application, the potential licensee must be a business that is at least 65% owned and controlled by an individual (or individuals) who had an average household income of less than 300% of the state median household income (SMHI) over the three tax years immediately preceding the application. (For instance, the SMHI in 2021 is approximately $74,000.)

Source: SEC---OWNERSHIP--CONTROL-REQUIREMENTS.pdf (ct.gov)

7. What documentation is required to demonstrate residency and income to qualify as a social equity applicant?

There is an exhaustive list of documents required to prove income and residency. To demonstrate income, the applicant must provide a notarized proof of income letter, plus one of the following:

• Pay stubs from the past 3 years

• Tax returns from the past 3 years

• Wage and tax statements from the past 3 years (originals)

• Social Security documents which include the applicant's name, such as:

  • Proof of Income letter

  • Pension Distribution Statement

  • Annuity Statement

  • Retirement Distribution Statement

To demonstrate residency, the applicant must provide their Connecticut driver's license or state-issued ID card, their Social Security Card or Long-form Birth Certificate, and one of the following (which must include name and address):

• A signed, notarized lease agreement

• School records

• Residential property deed

• Bank records

• Housing authority records (family name accepted)

• Utility bills, such as electric, gas, or water (family name accepted)

• Dated notices or correspondence from a local or state government entity (i.e., DCF, DSS, DMHAS) (family name accepted)

Source: SEC---PROOF-OF-RES-INCOME-REQUIREMENTS.pdf (ct.gov)

8. What ownership control documents are required to qualify as a social equity applicant?

• Organizational chart

• List of the cannabis establishment's owners, who must also provide:

  • Their percentage of ownership interest

  • Documented proof of contributions used to acquire ownership interest rights

  • Signed loan and security agreements

  • Bonding forms

  • Resume

• The applicant, backer, and anyone with 5% or more of the total ownership or interest rights must also provide:

  • Personal net-worth statement

  • Personal and federal tax returns

• List of affiliates and their resumes

• In order to apply for a full license, the following info is required (if available):

  • Management agreements

  • Operating agreements

  • Option agreements

Source: SEC---OWNERSHIP--CONTROL-REQUIREMENTS.pdf (ct.gov)

9. Where are the operational policies posted?

The policies and procedures implementing the adult-use law are available here.

10. When will licensed retailers be able to sell adult-use cannabis?

Sales of adult-use cannabis could begin as soon as late 2022.

Source: Retail Sales (ct.gov)

11. Where will applications be submitted?

Cannabis entity applicants will submit their materials on Connecticut's e-license platform.

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