State businesses can apply for recreational pot licenses next month
Connecticut’s Social Equity Council on Tuesday approved a plan to provide technical assistance for applicants to the recreational-use cannabis program, marking the panel’s last step before the state can open applications for new business licenses.
Now that the assistance is approved, the first application period is set to start in 30 days.
Following the decision, the state Department of Consumer Protection said Tuesday that it will initially issue licenses for 12 retailers, four micro-cultivators, 10 delivery services, four hybrid retailers, 10 food and beverage, six product packagers, six product manufacturers and four transporters.
The state will set aside half of the licenses in each category for social equity applicants. The state will have two lotteries for each license type — one for social equity applicants and the other for general applicants.
“The initial number of available licenses is not a cap, but a starting point for opening the adult-use cannabis market in an effective, measured and thoughtful way,” department Commissioner Michelle H. Seagull said in a statement. “We know people are anxious to apply and see this market open, and we are hopeful that making this information available will help applicants as they begin to prepare for the lottery process.”
The state said it will have multiple lotteries on an ongoing basis and will announce the number of licenses available ahead of each round.
“We encourage applicants to be thorough, and complete their applications carefully and thoughtfully,” state Consumer Protection Drug Control Director Rod Marriott said in a statement. “Applications for most license types will be entered into a lottery. There is no advantage for applicants who submit their lottery applications first. Applicants should prioritize submitting the best application they can.”
Social equity applicants are determined through income and whether the applicant lives in a disproportionately impacted area.
Each application period is 90 days. The first, for disproportionately impacted area cultivators, begins Feb. 3, and is not subject to a lottery process. The period for retailers also opens Feb. 3.
Dispensaries and producers that are already a part of the medical program will be exempt from the lottery and can apply for hybrid licenses that allow them to participate in both the medical and the recreational markets.
All medical product providers will be required to maintain their medical programs.
Start dates for application periods for other license types include:
⏩ Micro-cultivator: Feb. 10
⏩ Delivery Service: Feb. 17
⏩ Hybrid Retailer: Feb. 24
⏩ Food and Beverage: March 3
⏩ Product Manufacturer: March 10
⏩ Product Packager: March 17
⏩ Transporter: March 24
The council, which is charged with ensuring the recreational cannabis market benefits those who have been disproportionately harmed by the war on drugs, unanimously approved the technical assistance plan during Tuesday’s meeting.
During their December meeting, council members approved the requirements for applicants to prove their social equity status, contingent upon two conditions: Tuesday’s adoption of the technical assistance plan and the state keeping the application window open for 90 days instead of 60.
In a Dec. 8 letter to the council, the state Department of Consumer Protection agreed to the council’s request for a longer application window.
Members said technical assistance was key to ensuring their votes to approve the documentation required to prove social equity status.
Member Christine Shaw said in December that the assistance was important “so that we can ensure a level playing field and so that we can encourage participation by those who want to participate in this program.”
Programs funded through the federal government such as the SCORE program, which provides mentorship to small businesses, are not available to cannabis businesses because the substance isn’t legal on a national level.
The technical assistance the council approved Tuesday includes plans for outreach to provide general information about the process, education about the lottery process and provisional licenses, resources for businesses preparing to launch and assistance for growing businesses.
“We will tap every resource available to ensure that disproportionately impacted residents have the information and assistance that they need to enter the cannabis market,” interim director Ginne-Rae Clay said during Tuesday’s meeting.
The council plans to partner with local chambers of commerce and other community groups as well as tap existing state contracts for help, Clay told council members.
Much of the assistance will occur through online education materials, webinars, expos, in-person workshops and call center support. The Social Equity Council plans to hire more staff to assist with this and work with third-party, contracted vendors, Clay said.
The first programs will begin this month, documents show. Targeted locations for outreach and later “business accelerator programs include Bridgeport, Stamford, Hartford, New Haven, New London, Danbury and Norwich, pending COVID spread levels,” according to meeting documents.
The council is also planning for a March expo, according to meeting documents.
In preparation for full license launches, the council aims to have “business accelerator” programs available in May, documents state.
It’s set to be funded with $1 million from the fiscal year 2023 budget, which does not include access to money for applicants who need help paying application fees or start-up costs, Clay said.
That money will come from a different fund, she added.
During the public comment period, some speakers criticized what they said were prohibitively high fees.
Lottery fees range from $250 for a micro cultivator to $1,000 for a cultivator for non-social equity applicants. Social equity applicants pay from $125 for a micro cultivator to $500 for a cultivator, according to the Consumer Protection website.
The state anticipates that consumers can begin to purchase recreational marijuana by the end of the year, according to Tuesday’s news release.