Breaking news! Connecticut legalized recreational marijuana by passing comprehensive legislation that addresses decriminalization, licensing, marketing, and taxation.  Governor Lamont announced that he plans to sign the bill once it reaches his desk. Earlier this week, legislators added -- then promptly deleted -- a controversial provision of the bill that would have expanded the pool of applicants eligible for priority licenses in a special legislative session after the Governor vowed to veto the bill.  The expanded definition would have included individuals with prior marijuana convictions, regardless of wealth or ties to communities disproportionately impacted by marijuana prohibition.

The final bill retains the definition of "social equity applicant" that we reported on last week.  Key features of the final bill include the following:

  • The bill allows individuals age 21 or older to possess, use, or otherwise consume recreational marijuana and other cannabis products.
  • It limits possession to 1.5 ounces of cannabis plant material and 5 ounces of such material in a locked container in the person's residence or locked vehicle glove box or trunk.
  • Homegrown marijuana will be permitted starting October 1, 2021 for medical marijuana patients age 18 and older, and July 1, 2023 for all individuals age 21 and older.
  • Applications from dispensary facilities that wish to convert to hybrid retailers will be accepted on or after July 1, 2021.
  • All other applications will be accepted no later than 30 days from the date in which the Social Equity Council posts application criteria on its website, which must occur by September 1, 2021.
  • The Department of Consumer Protection will reserve 50% of the license applications accepted for social equity applicants.
  • License fees will range from $1,000 to $3 million, depending on business size and type, with a 50% discount to social equity applicants in the first 3 fee cycles.
  • The bill prohibits employers from penalizing an employee for the employee's use of marijuana prior to employment, but permits the employer to restrict the possession and use of cannabis in the workplace, except for medical marijuana. Certain employers and positions are exempt from these requirements.
  • It imposes taxes on cannabis products according to THC content, including a tax on retail sales of cannabis (0.625 cents per milligram of total THC for cannabis plant material; 2.75 cents per milligram of total THC for cannabis edible products; and 0.9 cents per milligram of total THC for cannabis, other than cannabis plant material or cannabis edible products).
  • It imposes a 3% municipal tax on the sale of cannabis in addition to the state cannabis tax and the state's 6.35% sales tax.

The final bill has significant implications for employees, schools, municipalities, and the criminal justice system.  We will publish an in-depth analysis once the bill is signed into law in the coming days.  The full text of the bill can be viewed here. 

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