Connecticut

Equity Project State Briefing

Social Equity

Social Equity Definition / Criteria

  • i. Previous Cannabis Conviction:
  • ii. Income:
  • iii. State Residency:
  • iv. Qualifying Neighborhood / Municipal Residency:

Connecticut has a social equity program which was created in 2021 through the state’s adult use legislation. In Connecticut’s adult use cannabis sector, an individual is eligible to be a social equity applicant if they own at least 65% of their cannabis establishment and 

(A) Had an average household income of less than three hundred percent of the state median household income over the three tax years immediately preceding the application; and

(B)

 (i) Was a resident of a disproportionately impacted area for at least  five of the ten years immediately before the  the date the application; or

(ii) Was a resident of a disproportionately impacted area for  at least than nine years prior to attaining the age of eighteen.

Source:

Connecticut Public Act No. 21-1, § 1. Subsection 48. Social equity applicant

Social Equity Provisions

Connecticut will offer several benefits through its social equity program. In Connecticut, fifty percent of the adult use cannabis licenses in each license type must be reserved for social equity applicants. While Connecticut’s social equity program is still being developed, the law states the program should extend expedited or priority license processing for social equity applicants and establish a process to best ensure that social equity applicants have access to the capital and training needed to own and operate a cannabis establishment.Additionally the department will develop a cannabis business accelerator program to provide technical assistance to participants by partnering participants with a larger cannabis establishment.

The Social Equity Council will develop a program to assist Social Equity Applicants in opening two micro-cultivator establishments. The program is still in development and is contingent on current Medical Marijuana Producers converting their licenses to also serve the Adult-Use Cannabis market.

Source:

Connecticut Public Act No. 21-35. Subsection (b)(2)
Connecticut Public Act No. 21-1, § 22. Subsection (h)
Connecticut Public Act No. 21-1, § 38. Subsection (a)

License Priorities and Set Asides

  • License Priorities / Set Asides:
Yes

In Connecticut, fifty percent of the adult use cannabis licenses in each license type must be reserved for social equity applicants. While Connecticut’s adult use program has not been fully developed, the law states that social equity applicants will receive expedited or priority license processing for each of the following license types: retailer, hybrid retailer, cultivator, micro-cultivator, product manufacturer, food and beverage manufacturer, product packager, transporter and delivery service license.

Source:

Connecticut Public Act No. 21-1, § 22. Subsection (h)(3)
Connecticut Public Act No. 21-1, § 25. Subsection (b)(2)

Fee Waivers and Reductions

  • Fee Waivers / Reductions:
Yes

In Connecticut social equity applicants are given a 50% discount on application fees and licensure fees for the first three renewal cycles. After three cycles social equity applicants are required to pay the full fees which are as follows: 

  1. A retailer or hybrid retailer fee to enter the lottery is $250, the fee for a provisional license is $2,500, and the fee for a final license or renewal is $12,500;
  2. A cultivator fee to enter the lottery is $500, the fee for a provisional license is $12,500, and the fee for a final license or renewal is $37,500;
  3. A micro-cultivator fee to enter the lottery is $125, the fee for a provisional license is $250, and the fee for a final license or renewal is $500;
  4. A product manufacturer fee to enter the lottery is $375, the fee for a provisional license is $2,500, and the fee for a final license or renewal is $12,500;
  5. A food and beverage manufacturer fee or delivery service fee to enter the lottery is $125, the fee for a provisional license is $500, and the fee for a final license or renewal is $2,500; and
  6. A product packager fee to enter the lottery is $250, the fee for a provisional license is $2,500, and the fee for a final license or renewal is $12,500.

Source:

Connecticut Public Act No. 21-1, § 34. Subsection (d)

Other Financial Support for Social Equity Applicants and Licensees

Connecticut law designates up $50 million in bonding for initial funding for start-up capital for social equity applicants, the cannabis business accelerator program, and workforce training developed by the Social Equity Council.

Beginning on July 1, 2023, 60% to 75% of the cannabis excise tax revenue will be directed to the Social Equity and Innovation Fund. Those funds can be used to promote social equity in relation to access to capital for businesses, funding workforce education, and funding for community investments.

Source:

Connecticut Public Act No. 21-1, § 134. Subsection b
Connecticut Public Act No. 21-1, § 125. Subsection (i) (2)

Other Licensing Provisions

License Caps

  • License Caps:
Yes

Connecticut is a limited license state and has adult use licensing caps based on population density at a rate of one retailer and one micro-cultivator for every 25,000 residents. Additionally, municipalities can opt out of participating in the adult use cannabis sector by holding a town wide referendum. However, there is a carve out protecting pre existing medical cannabis businesses, as no existing cannabis establishments will be impacted by a vote.

Source:

Connecticut Public Act No. 21-1, § 148. Subsection e
Connecticut Public Act No. 21-1, § 83. Municipality election; vote taken to determine whether sale of recreational sale of marijuana shall be permitted

Application Selection Process

  • Selection System:
Lottery

Connecticut distributes adult-use cannabis licenses through a lottery system. The state conducts an independent lottery for each license type and a separate lottery for social equity applicants of each license type.

Source:

Connecticut Public Act No. 21-1, § 35. Subsection (c)(2)(A)

Felony Disqualification on Ownership

  • Ownership Exclusion for Felony Convictions:
Yes
  • Exemption for Cannabis Offenses:
No

Connecticut’s adult use framework disqualifies applicants for cannabis licensure and potential employment on the basis of certain convictions. In Connecticut, an adult use license applicant or employee will be denied a license/worker’s license if their background check reveals they have a disqualifying conviction.

“Disqualifying conviction” means a conviction within the last ten years which has not been pardoned, for any of the following offenses: money laundering; Vendor fraud; Insurance fraud ; Forgery; Filing a false record; Bribery, tampering with a witness, rigging and similar items; telephone fraud; identity theft; and willful violation of taxation.

Source:

Connecticut Public Act No. 21-1, § 29. Subsection(b)
Connecticut Public Act No. 21-1, § 29. Subsection(d)
Connecticut Public Act No. 21-1, § 1. Subsections(2) and (18)

Employee Criminal Records

  • Conviction Restrictions for Employees:
Yes
  • Exemption for Cannabis Offenses:
No

Connecticut’s adult use framework disqualifies applicants for cannabis licensure and potential employment on the basis of certain convictions. In Connecticut, an adult use license applicant or employee will be denied a license/worker’s license if their background check reveals they have a disqualifying conviction.

“Disqualifying conviction” means a conviction within the last ten years which has not been pardoned, for any of the following offenses: money laundering; Vendor fraud; Insurance fraud; Forgery; Filing a false record; Bribery, tampering with a witness, rigging and similar items; telephone fraud;  identity theft; and willful violation of taxation.

Source:

Connecticut Public Act No. 21-1, § 29. Subsection(b)
Connecticut Public Act No. 21-1, § 29. Subsection(d)
Connecticut Public Act No. 21-1, § 1. Subsections(2) and (18)

Availability of Expungements

  • Expungements:
Yes, Automatic

Connecticut offers automatic record cleaning for certain qualified cannabis convictions. Those convicted of possession from January 1, 2000 through September 30, 2015 will have their records automatically cleared by 2023. People with certain other convictions outside of this time period can apply to have their records expunged starting July 2022.

Source:

Connecticut Public Act No. 21-1, § 8.