Hartford Business Journal

15 HARTFORDBUSINESS.COM | JULY 26, 2021 might want to review," Glissman said. "[DCP] could do a lot or they could do a little" in requirements for provisional licenses. DCP will also approve or deny current medical cannabis businesses trying to convert their licenses to adult-use, or hybrid medical/adult- use, Seagull said. Additionally, the department will provide oversight for packaging and safety standards, and set up an electronic tracking system for all marijuana sold in Connecticut, among other responsibilities. Seagull said DCP's health and safety standards for the medical cannabis industry — which DCP also oversees — will serve as a guidepost to how the agency approaches the adult-use market. "We're certainly using [medical cannabis standards] as a starting point," Seagull said. "But we recognize that a medical product is different from a product that's intended for more recreational use." Bay State comparisons In addition to representing cannabis industry players in Connecticut, Glissman has taken on marijuana business clients in Massachusetts for years. The lottery process defi nitely sets Connecticut apart from its northern neighbor, which operates on a rolling fi rst- come, fi rst-serve basis, Glissman said. The social equity components in Connecticut's law are also far more extensive than in Massachusetts. It took the Bay State about two years from the time voters passed cannabis legalization via ballot referendum to when the state's fi rst adult-use cannabis stores opened to the public. However, Glissman pointed out, Massachusetts lawmakers spent months following the vote writing specifi c legislation to set up a retail market and form the Cannabis Control Commission, which regulates the state's marijuana industry. Glissman predicts adult-use sales will likely begin in Connecticut by late 2022, or early 2023. "I could defi nitely see that timeline here in Connecticut," Glissman said. "I could also see it happening quicker." That falls in line with Seagull's expectation that the market will likely open by the end of 2022. Andrew Glassman, an attorney for law fi rm Pullman & Comely who represented some of Connecticut's fi rst medical cannabis business license applicants, said the state's success in setting up the medical marijuana market bodes well for the recreational industry. While there are still plenty of details for regulators to fi ll in, Glassman said the nearly 300- page law indicates the state will take very seriously its role in overseeing the market. "It's the beginning of a brand new industry in Connecticut," Glassman said. "My hope is that people who get into it understand that it's a serious business." It's a tight timeline, Lehman admits. "I do think there's a chance of meeting these dates," Lehman said. "We're working as fast as we can." DECD is also tasked with helping develop a cannabis business accelerator program for prospective social equity businesses, and an industry workforce training program. The law dedicates $50 million to put these programs into action. A large part of the SEC's and DECD's mandates are to make sure large multistate operators don't completely dominate market share in Connecticut's adult-use cannabis industry, Lehman said. "It is clear established players that have access to capital have a real advantage," Lehman said. "We already know larger, established players are going to be aggressive." Licensing requirements Outside of equity concerns, the Department of Consumer Protection will serve as the cannabis industry's primary regulator. Once the SEC is formed and lays out its standards for equity measures, DCP will accept cannabis business license applications, decide how many licenses the state will allow for each of the nine license categories and oversee a lottery process that decides which applicants it will consider, Commissioner Seagull said. Licensing will likely be a complicated process, but the statute covers what it will look like in broad strokes. After DCP sets the maximum number of licenses, the state will hold two lotteries for each license category: one for social equity applicants, and the other for general applicants. DCP, at fi rst, will issue a provisional license to qualifi ed business operators, which will then have 14 months to get everything in order for fi nal approval. Prospective cannabis businesses should keep an eye on the standards DCP develops for provisional licensure and have certain ducks in a row, including a business plan and a location amenable to cannabis businesses, said Daniel Glissman, an attorney with Hartford law fi rm MacDermid, Reynolds & Glissman PC. "There's just a laundry list of policies and procedures [applicants] Here are the types of licenses that will be available in CT's adult-use marijuana industry • Retailer • Hybrid retailer • Cultivator • Micro-cultivator • Product manufacturer • Food and beverage manufacturer • Product packager • Delivery service • Transporter Andrew Glassman Here's how CT's marijuana industry lottery will work By Sean Teehan steehan@hartfordbusiness.com U nder Connecticut's cannabis legalization law, most businesses applying for licenses will only be considered if they're picked in a lottery drawing. Under the law, the Department of Consumer Protection must choose a neutral third-party to conduct the lottery. After DCP specifi es the maximum number of licenses it will approve, applicants for each of the nine types of licenses will be divided into two groups: equity applicants and general applicants. Connecticut's law says 50% of cannabis companies must qualify as social equity businesses — qualifi cations for which the Social Equity Council will fi nalize. Businesses currently licensed to produce and/or sell cannabis to the medical market will not be subject to the lottery. If these businesses want to expand to produce or sell to the adult-use market, they have to go through a separate license conversion process. (Top and bottom photos) CTPharma staff members trim dried marijuana fl owers. PHOTO | YEHYUN KIM/CTMIRROR.ORG

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