Connecticut’s governor signs legislation banning the gifting of cannabis

Another legal weed state is cracking down on unregulated cannabis dealers. This time, it’s Connecticut lawmakers who are embracing the practice of “gift giving,” whereby illegal weed shops sell a product (e.g., a t-shirt) that comes with a cannabis “gift.”

Now, following a bill signed into law by the state’s Democratic Gov. Ned Lamont last week, that gap could be exacerbated.

According to the Connecticut Post, cities in the state “can now fine residents up to $1,000 if they give another person a cannabis plant or other cannabis-related product in exchange for any type of donation, including an entry fee, or as part of a donation, give away giveaways like a swag bag,” while the state itself “can also separately issue fines of up to $1,000 for not paying sales taxes.”

“Gifting” has become a common practice for marijuana dealers who have not gone through the proper regulatory channels to obtain a license or who operate in states where adult-use cannabis is legal but have not yet entered the regulated market became.

The Associated Press reported that unregulated “cannabis bazaars have emerged [in Connecticut] since the drug was legalized last year” and “[t]Thousands of people attended the events, often paying an entry fee, and exchanging cannabis products for other items or receiving them with the purchase of an item such as a t-shirt.”

In New York, where adult use of cannabis has been legal since March last year, regulators have targeted companies alleged to have participated in “gift-giving,” warning them the legal retail market won’t officially start until later this year .

The New York City Bureau of Cannabis Management in March sent cease and desist letters to a number of companies it suspected of engaging in the practice, saying continuing to do so could jeopardize their prospects for retail licenses.

“New York State is building a legal, regulated cannabis market that ensures products are tested and safe for consumers, while providing opportunities for those in communities most impacted by the over-criminalization of cannabis prohibition and illegal operations undermine our ability to do so. We encourage New Yorkers not to engage in illegal sales where products may not be safe, and we will continue to work to ensure New Yorkers have a way to legally sell in the new industry,” OCM said -CEO Chris Alexander in a statement at the time.

And in Washington, DC, where voters approved a ballot initiative to legalize recreational cannabis in 2014, medical cannabis providers have objected to the practice of “gifting,” arguing that the illegal companies are violating their own legitimate businesses.

Despite the legal status of cannabis in the nation’s capital, selling weed remains illegal there due to an ongoing congressional ban on the commercialization of marijuana.

Connecticut’s gift control bill was proposed earlier this year.

While the measure was supported by some cannabis entrepreneurs in the state, other cannabis advocates opposed it. Businessmen engaged in gift giving have also defended the practice.

“I don’t deserve to be punished for this, and neither does anyone else,” said Justin Welch, a member of CT CannaWarriors and the New England Craft Cannabis Alliance, in defense of the practice at the time the bill was introduced. “For too long, good people have been persecuted for their use of cannabis. The grassroots cannabis community that exists here in Connecticut will not cease to exist whether you pass this law or not. Going forward we need a sensible cannabis policy that looks more like a craft beer policy.”