Connecticut cannabis license applications are now live for retailers and Section 149 Disproportionately Impacted Area cultivators. Applications can be found here and must be completed through the online portal. Information about what is required to apply for each license type is available here. Here is what you need to know:
On February 1, 2022, the Department of Consumer Protection ("DCP") and Social Equity Council ("SEC") hosted a meeting to walk through the application. The application period for each of the eight license types will open on a staggered basis and last for a period of 90 days, beginning on February 3, 2022.
Applications for each license type will be posted here on the opening date of each application period. Applicants can create an account and will receive login credentials. Applicants will need to register an account as a business and create separate accounts for any backers/key employees included in the application. Applications can be saved, revised, and completed throughout the application period, but must be finalized and submitted by the corresponding deadline. Late applications will not be reviewed by the SEC. Applicants will receive a confirmation email once their application has been submitted. Within the next few weeks, the SEC plans to roll out technical assistance features to assist applicants.
Importantly, applicants will need to list all backers of their business in their application. A backer is someone with a financial interest in a cannabis establishment, and either (1) owns 5 percent or more of the cannabis establishment, in the aggregate with a spouse, parent and child, or (2) participates directly or indirectly in the control, management or operation of the cannabis establishment. Any backers must complete their own separate application prior to the submission of any retail application. Backers can change or add to an affiliation at any time in their individual backer applications, but first need permission from the business applicant.
Individuals who do not have a fully formed corporate entity can upload word documents indicating that they are currently pursuing formation. Required application documents include information pertaining to any backers, associations with any other potential or currently existing cannabis establishments, all available business establishment documentation, current organizational chart listing all ownership percentages (including any holding companies, subsidiaries, and investors), and any compensation agreements. A checklist of documents that applicants will need to upload is posted here.
Applicants for the Social Equity Lottery (who meet certain residency and income requirements) must also include additional items such as personal net worth statements, tax returns, proof of contributions, loan and security agreements, and employee/management information for the applicant, or backer. This applies to both retail and backer/key employee applications. Equity Joint Ventures are not subject to the lottery but must be approved by the Social Equity Council to apply for a provisional license. There is no window for license applications for Equity Joint Ventures and applicants may apply to the Social Equity Council once license applications have been posted.
Background checks will be run on all applicants during the evaluation period. Applicants should be aware of any potential disqualifications for both retail and backer/key employee applications. The list of disqualifying convictions is provided in the Key Dates section of the state's cannabis website.
Applications will be accepted for the duration of the 90-day period, and it is in each applicant's interest to fill out the application carefully and completely. Applicants will not be able to modify their application once submitted.
Finally, and perhaps most significantly, there is no limit on the number of applications a business can submit.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
