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New Haven Biz-August 2021

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n e w h a v e n b i z . c o m | A u g u s t 2 0 2 1 | n e w h a v e n B I Z 13 cannabis businesses, said Daniel Glissman, an attorney with Hartford law firm MacDermid, Reynolds & Glissman PC. "ere's just a laundry list of policies and procedures [applicants] 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 recreational-use, or hybrid medical/ recreational-use, Seagull said. e department will also 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 it 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. e lottery process definitely sets Connecticut apart from its northern neighbor, which operates on a rolling first-come, first-serve basis, Glissman said. e 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 first adult-use cannabis stores opened to the public. However, Glissman pointed out, Massachusetts lawmakers spent months following the vote writing specific 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 definitely see that timeline here in Connecticut," Glissman said. "I could also see it happening quicker." at falls in line with Seagull's expectation that the market will likely open by the end of 2022. Andrew Glassman, an attorney for law firm Pullman & Comley who represented some of Connecticut's first medical cannabis business license applicants, said the state's success in setting up the medical marijuana market bodes well for Daniel Glissman Andrew Glassman is an attorney for law firm Pullman & Comley who represented some of Connecticut's first medical cannabis business license applicants. the recreational industry. While there are still plenty of details for regulators to fill in, Glassman said the nearly 300-page law indicates the state will take very seriously its role in overseeing the market. Here's how CT's marijuana industry lottery will work Under 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 specifies 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 — qualifications for which the Social Equity Council will finalize. 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. By Sean Teehan • July 22, 2021: Members of the Social Equity Council appointed. • Sept. 1, 2021: Social Equity Council must post the documentation necessary to apply for and qualify as a social equity applicant. • 30 days after this date is the earliest DCP can begin accepting applications for all license types. • 60 days after Sept. 1 social equity applicants are authorized to apply for a cultivator license for three months, not subject to the lottery. • Sept. 1, 2021: Medical dispensary facilities can apply to convert to hybrid retailer licenses and apply for delivery of medical marijuana products, with delivery starting after Jan. 1, 2022, or earlier as approved by the DCP. • No later than Jan. 1, 2022: The Social Equity Council must finalize its recommendations to implement its mandates. 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 Key deadlines for recreational marijuana industry roll out A cannabis business must have these requirements in place to get a final license in CT's adult-use recreational market • A contract with an entity providing an approved electronic tracking system. • A right to occupy the location where the cannabis establishment will be located. • Any necessary local zoning approvals. • A council-approved social equity plan and workforce development plan. • Written policies for preventing diversion and misuse of cannabis and sales to underage people. • All other security requirements DCP sets based on the specific license type. • A labor peace agreement with a bona fide labor organization. "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." n CTPharma employees work on packaging medical marijuana products. PHOTO | CONTRIBUTED PHOTO | YEHYUN KIM/CTMIRROR.ORG

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