Compensation and Equity

Connecticut Implements Rigorous Cannabis Regulations with New Product Categories and Licensing Requirements


Regulations for New Product Categories and Licensing

As Connecticut ushers in comprehensive regulations for adult-use cannabis, Public Act 24-76 brings significant changes to the cannabis industry. Among the noteworthy amendments is the introduction of new product categories, including refined definitions for High-THC and Moderate-THC Hemp products. These categories help delineate the permissible potency of cannabis products that can be sold within the state, ensuring consumer safety and legal compliance.

Infused beverages have also gained particular attention under the new regulations. By October 1, 2024, these beverages will only be available through licensed outlets such as cannabis dispensaries and retail facilities. The state has set strict compliance protocols to ensure these products aren’t distributed indirectly, maintaining a robust monitoring system throughout the sales process.

Inventory Management and Licensing Fees

A key requirement for businesses currently dealing with infused beverages is conducting a thorough inventory by May 14, 2024. This inventory is critical as it must be reported to the Department of Consumer Protection (DCP) by June 15, 2024, accompanied by a $1 fee per container. Non-licensed retailers face the deadline of June 30, 2024, to clear their stock, while licensed vendors can extend sales until September 30, 2024, with DCP consent.

The path to continued sales post-October 2024 necessitates obtaining a valid license from the DCP. The licensing fee is set at $5,000 per year, making it a vital cost consideration for businesses planning to stay competitive in the market. Cultivators and manufacturers planning to produce infused beverages must secure DCP approval, aligning with the state’s goal of maintaining stringent consumer protection standards.

THC Concentration Standards and Packaging Guidelines

The regulations also address THC concentration, establishing clear boundaries for High-THC and Moderate-THC hemp products. High-THC products are characterized by 1 milligram of THC per serving, while Moderate-THC products have between 0.5 and 5 milligrams per container. This differentiation is crucial in controlling the psychoactive impact these products have on consumers.

Additionally, packaging requirements enforce critical safety standards, capped to a maximum of 12 fluid ounces per container and permitting a maximum of four containers per package. This measure helps prevent misuse and ensures that only individuals aged 21 and up can purchase these products, thus safeguarding young people from potential accidental consumption.

Enforcement and Social Equity Measures

Failure to adhere to these new rules, particularly the unauthorized sale of infused beverages, now constitutes a violation of the Connecticut Unfair Trade Practices Act (CUTPA). The associated penalties are steep, with a $5,000 civil fine imposed for transactions executed without the required license. This measure underscores the state’s commitment to a regulated and fair-market environment.

Social equity provisions have also been woven into the new regulations, embodying an inclusive vision for the industry’s future. Public Act 24-151 extends relief to social equity applicants, granting them more time to meet required cultivation space conditions. This support is part of a broader initiative to foster fair participation in the cannabis sector.

Synthetic Cannabinoids and Compliance

In a significant move to enhance product integrity, synthetic cannabinoids have been banned from cannabis products through Public Act 24-115. This prohibition helps maintain product purity and consumer trust, while additional restrictions prevent Social Equity Council members from holding financial interests in cannabis activities, thus ensuring ethical governance practices.

Businesses must ensure that by June 15, 2024, they comply with all reporting and fee payment requirements. Moreover, applications for waivers to sell legacy infused beverages must be submitted by June 30, 2024, to maintain sales flexibility through September. By understanding and implementing these regulations, Connecticut’s cannabis sector can navigate the evolving legal landscape and capitalize on emerging opportunities while adhering to state mandates.