The final application deadline passed for Connecticut’s emerging cannabis industry: 37,293 business hopefuls vie for 56 licenses
More than 37,000 applications for 56 cannabis business licenses in Connecticut have been submitted before the final deadline passed last week, with most seeking to do business in underrepresented communities.
The state Department of Consumer Protection received 13,806 applications for the general lottery and 23,487 for the social equity license established by the General Assembly for communities hardest hit by the government’s war on drugs. Among eight categories, retail operations drew the most applications, at 15,606.
Several other categories include food and beverage manufacturers, cultivators and delivery service. The last 90-day deadline passed Wednesday.
“I think it’s a higher number than most people expected,” said Sarah Westby, co-chair of the Cannabis Team at the Shipman & Goodwin law firm and member of its employment and labor practice group.
Observers of Connecticut’s developing cannabis industry have expected larger operators to submit applications in several categories, she said. Future lottery rounds could be in the summer or early fall, Westby said.
The 56 licenses available are split evenly between general licenses and those for Social Equity businesses. Twelve will be available for retailers; four each for micro-cultivators and hybrid (adult and medical use) retailers, 10 each for delivery service and food and beverage businesses, six each for packagers and manufacturers and four for transporters.
Michelle Bodian, a lawyer at the cannabis law firm Vicente Sederberg, said the state made nearly $1 million in application fees in the first lottery round. Although Connecticut’s fees are among the least expensive among states with cannabis businesses, ranging from $128 to $750, other states rely on merit-based applications rather than a lottery, she said.
Cannabis industry lawyers helped clients with a “flurry of activities filling out applications and complying with regulatory aspects” at the start of the process, Westby said. “Now the existing medical dispensaries are putting the pieces in place and most others are waiting to see how the lottery works out.”
Medical marijuana became legal in Connecticut in 2012 and it became the 19th state last year to legalize adult-use cannabis. Since July 1, 2021, adults 21 or older could purchase and possess up to 1.5 ounces of marijuana, or up to 5 ounces locked at home or in a vehicle’s glove box or trunk.
The Social Equity Council is scheduled to meet July 12 to begin sorting through cannabis applications. Those not selected will be moved to the general lottery.
Stephen Singer can be reached at ssinger@courant.com.
