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Getting into the medical cannabis industry as a license holder in Connecticut hasn’t been cheap, and based on the state’s adult-use legalization bill (CT SB 1201), which the governor signed into law on June 22, 2021, adult-use license holder fees and financial requirements will be equally expensive.
Let’s take a look at the fees businesses and individuals have to pay to be a part of the Connecticut cannabis industry.
Based on the language in CT SB 1201, there will be 9 types of adult-use licenses:
Following are licensing fees to participate in Connecticut’s adult-use cannabis market as stated in CT SB 1201 for existing license holders and new license holders who will enter the license lottery:
Existing Dispensaries Adding Adult-Use to Become Hybrid Retailers
Existing Producers (Growers/Processors)
New Retailer or Hybrid Retailer: 50% lower for social equity applicants
New Cultivator: 50% lower for social equity applicants
New Micro-Cultivator: 50% lower for social equity applicants
New Product Manufacturer: 50% lower for social equity applicants
New Food and Beverage Manufacturer: 50% lower for social equity applicants
New Product Packager: 50% lower for social equity applicants
New Delivery Service: 50% lower for social equity applicants
New Transporter: 50% lower for social equity applicants
According to CT SB 1201, following are fees individuals participating in the state’s adult-use market will be required to pay:
New Backer (For Individuals)
New Staff (For Individuals)
Following are cannabis license fees for businesses to operate in Connecticut’s established medical cannabis market:
Producer: Produces marijuana for dispensaries.
Dispensary Facility: Dispenses marijuana to patients.
Brand: A marijuana product produced by a producer.
Following are cannabis license fees for individuals to participate in Connecticut’s established medical cannabis market:
Producer Backer: A person who has a financial interest in a producer.
Production Facility Employee: A person who is employed by a producer or has access to the production facility (such as an independent contractor).
Dispensary Facility Backer: A person who has a financial interest in a dispensary facility.
Dispensary Facility Employee: A person who is employed by a dispensary facility or has access to a dispensary facility (such as an independent contractor).
Dispensary Technician: A person who dispenses marijuana to at a dispensary facility to Patients.
Dispensary: A person who is qualified to acquire, possess, distribute, and dispense marijuana at a dispensary facility to patients (must have an active pharmacist license in good standing).
Physician: A person who prescribes medical marijuana to patients.
Patient: A person who purchases medical marijuana from dispensary facilities.
Primary Caregiver: A person who purchases medical marijuana for a patient from a dispensary facility.
That’s a lot of fees, and some of them are very high! Now, let’s take a closer look at how all of these fees compare in the state’s operational medical cannabis industry.
In the first year, when a business or individual applies for (or registers for in the case of patients) a medical cannabis license in Connecticut, they’ll incur fees anywhere from $25 to $100,000 as shown in the chart below.
After the first year that a business or individual participates in the Connecticut licensed cannabis economy, the fee to participate might drop or stay the same, ranging anywhere from $0 to $75,000 as shown in the chart below.
Clearly, the barrier to entry for producers and dispensary facilities to enter Connecticut’s cannabis industry is big. It will be interesting to watch how the state’s adult-use market progresses after it launches.
In the meantime, you can keep track of all cannabis licenses in Connecticut, across the United States, and in international markets by subscribing to the Cannabiz Media License Database. Schedule a demo to see how it can transform the way you do business.
Originally published 12/12/15. Updated 8/6/21.