Connecticut State Regulation Analysis
The Department of Consumer Protection in Connecticut has released proposed rules for different licenses, Producers and Dispensary Facilities. Requirements to open a dispensary in Connecticut have very high fees and proof of capitalization, in addition to traditional state requirements. The state has indicated that there will only issue up to 3 licenses of each issued during the progression of the states program start, until more are issued at the discretion of the state department.
Producer licenses have much higher fees than dispensary licenses in Connecticut.
Applications to apply for these licenses will be available at this link: Applications
New added regulations were posted on the department’s website that added sections 21a-408-1 to 21a-408-70
Below is a basic analysis of what to expect when applying for a dispensary or cultivation license in Connecticut.
CANNA PROPOSALS analysis on application requirements to open a dispensary
- Proposal submission will require a specific set of Dispensary Business Plans once RFP applications are issued. (To be determined until finalized regulations)
- Bill will require any medical marijuana establishments to be sited at least 1,000 feet from existing schools and at least 1000 feet or more from certain existing community facilities. All establishments will be in industrial zones.
- Bill will require medical marijuana establishments to maintain a completely integrated electronic verification and inventory control system. Insofar as is practicable,to monitor the chain of custody and current whereabouts, in real time, of medical marijuana from the point that it is harvested at a cultivation facility and MIP facility until it is sold at a medical marijuana dispensary.
- Licenses are transferrable upon the commissioner’s approval.
- There will be a two million dollar escrow account term for a producer license.
- Laboratory testing is required on products for pesticides/mildew, THC/CBD content, overall quality, and potency.
- Marijuana must be cultivated in an enclosed, locked facility and only by Producers. Dispensaries must received all products from Producers and cannot cultivate the medicine.
- (MIP) Marijuana-Infused Products are allowed to be dispensed.
State financial requirements to open a dispensary in Connecticut
Marijuana Dispensary License
- There will be a non-refundable application fee for dispensaries: $1,000.00
- If dispensary license is approved, there will be an additional fee: $5,000.00
- There will be a non-refundable application fee for each dispensary agent or employee of dispensary or producer facility: $50.00
- If dispensary license is approved there will be a yearly renewal fee: $5,000.00
Marijuana Producers License
- There wll be non-refundable fee for producers: $25,000.00
- If producers license is approved, there will be an additional fee: $75,000.00
- If producers license is approved there will be a yearly renewal fee: $75,000.00
- Non-refundable application fee for each producer agent or employee of cultivation site: $100.00
- Non-refundable fee to register each marijuana brand name: $25.00
- The producer’s two million dollar escrow account, letter of credit or surety bond shall be payable to the State in the event the commissioner determines, after ahearing pursuant to the Uniform Administrative Procedure Act, sections 4-166 to 4-189,inclusive, of the Connecticut General Statutes, that the producer has failed to timely andsuccessfully complete the construction of a production facility or to continue to operate such facility in a manner that provides a substantially uninterrupted supply to its usual dispensary facility customers during the term of the license.
Total: $2,000.000.00 in proof of capitalization plus $25,000.00 is REQUIRED to submit proposal and application form including additional fees for all agents.
$75,000.00 additional fee if your organization receives a license.
CANNA PROPOSALS recommends that between $3,000,000.00 – $5,000,000.00 in starting capital could be necessary to pay the expenses involved with development of your dispensary business plans and paying all state financial requirements.
This may or may not include the amount needed for retail location and cultivation site. It is imperative to have the necessary operations costs covered for up to 2-4 months during initial cultivation cycle after receiving a dispensary license to operate. Please contact us for more information on how to open a dispensary in Connecticut.