Connecticut Adult Use Cannabis: Retail Sales By 2023?

connecticut cannabis

When we last reported on Connecticut’s adult-use cannabis regulations, Governor Ned Lamont had only recently signed S.B. 1201, making Connecticut the nation’s 19th state to embrace full marijuana legalization. Since then, the pace of preparations—including those for retail sales, which may begin as soon as the end of 2022—has only ramped up. As it stands, Connecticut may even beat neighboring New York’s highly anticipated, adult-use program to market.

What’s in store for the state’s legal cannabis program and where does the license application process stand? Here’s what Connecticut cannabusiness hopefuls know.

connecticut cannabis

CT Marijuana Update: The Race to Market, With a Focus on Social Equity

In an effort to craft a regional approach to adult-use cannabis, New York, New Jersey, Pennsylvania, and Connecticut coordinated their efforts towards full marijuana legalization. Since then, Connecticut also took matters into its own hands—especially when it came to the issue of social equity in cannabis.

As we reported in 2021, the state made it clear that at least half of all Connecticut cannabis business licenses would be allocated to applicants who met the state’s social equity criteria. But some details remained to be worked out, leading to a request from the state’s Social Equity Council for a 30-day extension of the deadline for the licensing process. Adding to the delay, some of the Council’s early policies—such as caps on annual income for social equity license applicants—proved controversial.

In addition to this 50% goal regarding social-equity initiatives, state law permits the creation of “hybrid”—that is, medical and adult-use—production and retail facilities through a fee-based system, currently set at $3 million for producers and $1 million for dispensaries. These fee minimums are halved for existing businesses, provided the formerly medical-only business partners with a social equity business.

Finally, Connecticut instituted two lotteries for license applications. The first one awards licenses to approved social equity applicants. The second is designed to serve unsuccessful social equity applicants, as well as all applicants not designated as such. The goal of the lottery system is to avoid forcing applicants to pay large and nonrefundable fees, even if their applications are ultimately unsuccessful.

connecticut cannabis

CT Marijuana Legalization: License Applications Begin

Aforementioned complaints with the Social Equity Council aside, the state officially began accepting cannabis license applications in early February of 2022. As of that date, the approved application categories included:

  • Lottery applications for adult-use cannabis retailers
  • Non-lottery applications for cultivators located in a disproportionately impacted area (DIA)
  • Equity joint ventures
  • Non-lottery applications for conversion from medical cannabis producer to expanded (i.e. medical and adult-use) producer
  • Non-lottery applications for conversion from medical cannabis dispensary to hybrid (i.e. medical and adult-use) retailer

CT Marijuana Legalization: Leveraging Experience and Expertise for Your Enterprise

Connecticut processes cannabis business license applications through the Department of Consumer Protection (DPA). As of this writing, the department hasn’t determined the total number of licenses the state will issue in each category. This means that all applicants must—in addition to being familiar with the regulatory framework—be highly focused on the type of license they’re pursuing.

The launch of full CT marijuana legalization represents a very special opportunity for entrepreneurs able to correctly position themselves. Are you one of them? Since 2009, Bridge West has helped more than 400 license holders find their path to success. If you’re ready to join this fast-moving and exciting moment in cannabis history, we’d love to help you achieve your dreams. Reach out anytime.

How to Get Licensed in New Mexico’s Medical Cannabis Market

new mexico cannabis

If you follow cannabis news in New Mexico, you know it’s been a heady few months: After years of speculation, adult-use cannabis has officially crossed the finish line. With Governor Michelle Lujan Grisham (D) having convened a special legislative session, in June of 2021 the Land of Enchantment officially threw open the doors for adult-use cannabis cultivation and possession.

You’ll note that “adult-use cannabis sales” aren’t on that list. That’s because the state’s Cannabis Control Division was granted a three-month delay in order to formulate adult-use cannabis licensing requirements in New Mexico. But as of September 1, 2021 at the latest, the state is slated to begin processing license applications. And once those adult-use dispensary licenses are issued and cannabis training programs get underway, the state is tasked with beginning adult-use sales no later than April 1, 2022.

What does this mean for those looking to enter the New Mexico cannabis industry? With some sources estimating that the state’s legal cannabis industry is poised to generate some 11,000 new jobs and $300 million in annual sales, it’s Go Time for New Mexico cannabis entrepreneurs. And that means the competition is going to be fierce, with the state scrutinizing each and every application to weed out those deemed unqualified or unprepared.

If you’re looking for a foot in the door, we’d like to help. We’re Bridge West, a team of seasoned cannabis industry veterans with decades of combined experience and a proven approach to cannabis business licensing. We offer our clients an unparalleled advantage in terms of start-up business planning, licensing and advisory services, and much, much more. We invite you to begin your education with this overview of the regulations governing the cannabis licensing requirements in New Mexico.

Adult-Use Cannabis Licensing Requirements in New Mexico: The Regulatory Framework

New Mexico administers its cannabis program through the Cannabis Control Division. And while the state currently offers a number of cannabis business licenses, we’ll narrow our focus to New Mexico’s adult-use cannabis licensing requirements for today’s purposes.

New Mexico Adult-Use Producer License: This license permits the cultivation of cannabis plants (including the testing of unprocessed cannabis products by a licensed cannabis testing laboratory). License-holders may transport unprocessed cannabis products to other licensed cannabis establishments, as well as sell cannabis products wholesale.

Licensing Fees: $2,500/year; $1,000/year for each additional licensed premises.

New Mexico Adult-Use Manufacturer License: This license permits the holder to process cannabis into edibles, oils, and other products; package cannabis products; have cannabis products tested by a testing facility; and purchase, acquire, sell, and transport wholesale cannabis products to other licensed establishments.

Licensing Fees: $2,500/year; $1,000/year for each additional licensed premises

New Mexico Adult-Use Retailer License: This license allows the holder to sell cannabis products to consumers, qualified patients, primary caregivers, and reciprocal participants.

Licensing Fees: $2,500/year; $1,000/year for each additional licensed premises

New Mexico Adult-Use Cannabis Courier: This license permits the holder to transport cannabis products directly to consumers, qualified patients, primary caregivers, and reciprocal participants.

Licensing fees: $1,500/year; $1,000/year for each additional licensed premises

New Mexico Cannabis Consumption Area: Regulated in a similar manner to a microbrewery, these are areas where cannabis products (but not alcohol; that’s a separate license) may be consumed.

Licensing fees: $2,500/year

New Mexico Adult-Use Cannabis Testing Laboratory: This license permits the holder to sample, collect, test, and transport cannabis products for the purpose of testing and assessment.

Licensing Fees: $2,500/year; $1,000/year for each additional licensed premises

In addition, New Mexico will issue licenses to cannabis servers, cannabis training and education programs, and several types of vertically integrated cannabis businesses.

Now that you know your breadth of options, let’s turn our focus to a few of the key points you’ll need to keep top of mind if you’re preparing to apply for a New Mexico cannabis license.

Cannabis Licensing Requirements in New Mexico: General Considerations

Following the lead of other states intent on redressing the inequities of the War on Drugs, New Mexico is demonstrating a commitment to social equity in its legal cannabis industry. This means, among other things, that while applicants may not have prior convictions “substantially related to the qualifications, functions or duties” implicit in their roles, this does not necessarily include prior cannabis convictions. At present, disqualifying felony convictions include fraud, embezzlement, deceit, or ‘involving a minor’ in drug sales.

As implied by our comments earlier in this article, New Mexico has also signalled an openness to vertical integration. At present, multiple licensees may occupy a single licensed premises, and the CCD may not place restrictions on the number of licensees occupying a single licensed premises, or on the number of locations of a single licensed cannabis business.

Cannabis Licensing Requirements in New Mexico: Business and Operations Plans

Yes, a business plan is required to be submitted with cannabis license applications. Importantly, it is also the case that a strong and clear-eyed business plan is one of the most important foundational tools for you and your stakeholders. And when the CCD is reviewing your application, your business plan will provide a singular opportunity for you to demonstrate your strong grasp of the New Mexico cannabis industry, your understanding of the legal and regulatory playing field, and the ways you plan for your business to positively impact the community you serve.

Over and above this, having a solid business plan is a major factor in your ability to attract investors, partners, banking and other related financial institutions, and additional key players.

If a business plan is a strategic roadmap for your enterprise, an operations plan is its more tactical counterpart. Submitting a solid operations plan will signal to the license review board how you’ll ensure that your facility will be in compliance with the state’s security, diversion, public safety, and other requirements. We encourage you to envision your operations plan as an “operator’s manual” for running a successful, compliant, and profitable cannabis business.

Cannabis Licensing Requirements in New Mexico: In Conclusion

If you’re interested in gaining entrance to the New Mexico cannabis industry, we can help. As a partner filled with highly-skilled and seasoned cannabis industry consultants and guides, Bridge West is ready to help new and emerging cannabis companies find financial and banking solutions, connect with potential stakeholders, and chart a course for success in this exciting—yet challenging—new landscape. We invite you to reach out anytime to schedule a consultation.