The high cost of cannabis licenses in Connecticut

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Getting into the medical cannabis industry as a license holder in Connecticut wasn’t cheap and is based on the Adult Legalization Act (CT SB 1201) passed by the Governor on the 22nd Owner fees and financial requirements will be equally high.

Let’s take a look at the fees businesses and individuals must pay to become part of the Connecticut cannabis industry.

Connecticut Adult Cannabis Use License Fees for Business

Based on the language in CT SB 1201, there are 9 types of licenses for adult use:

• Retailer (only sells adult cannabis)
• Hybrid Dealer (sells adult cannabis and medicinal cannabis)
• Cultivator (growing at 15,000 sq. Ft. Or more)
• Micro cultivator (growth 2,000-10,000 sq. Ft.)
• Product manufacturer
• Food and beverage manufacturers
• Product packer
• Delivery service
• Transporter

The following are the royalties for entering the Connecticut adult cannabis market under CT SB 1201 for existing licensees and new licensees enrolling in the license lottery:

Existing pharmacies are expanding adult use to become hybrid retailers

• $ 1 million fee that can be reduced to $ 500,000 if they create an “equity joint venture” for an existing medical pharmacy to also sell as a hybrid adult retailer

Existing producers (breeders / processors)

• $ 3 million fee that can be reduced to $ 1.5 million if you create two “equity joint ventures” that cannot be breeders
• $ 500,000 fee paid to Social Justice Account (or giving 5% of its growth space to a social justice applicant whom they mentor for five years, covering all of the social justice applicant’s business expenses, and 100% of profits flow to social justice) Applicant)

New retailer or hybrid dealer: 50% lower for applicants for social justice

• $ 500 lottery entry fee
• $ 5,000 preliminary license fee
• $ 25,000 final royalty
• $ 25,000 annual license renewal fee

New cultivator: 50% lower for applicants for social justice

• $ 1,000 lottery entry fee
• $ 25,000 preliminary license fee
• $ 75,000 final royalty
• $ 75,000 annual license renewal fee

New micro cultivator: 50% lower for applicants for social justice

• $ 250 lottery entry fee
• $ 500 preliminary license fee
• $ 1,000 final license fee
• $ 1,000 annual license renewal fee

New product manufacturer: 50% lower for applicants for social justice

• $ 750 lottery entry fee
• $ 5,000 preliminary license fee
• $ 25,000 final royalty
• $ 25,000 annual license renewal fee

New food and beverage manufacturer: 50% lower for applicants for social justice

• $ 250 lottery entry fee
• $ 1,000 preliminary license fee
• $ 5,000 final royalty
• $ 5,000 annual license renewal fee

Packager for new products: 50% lower for applicants for social justice

• $ 500 lottery entry fee
• $ 5,000 preliminary royalty
• $ 25,000 final royalty
• $ 25,000 annual license renewal fee

New delivery service: 50% lower for applicants for social justice

• $ 250 lottery entry fee
• $ 1,000 preliminary license fee
• $ 5,000 final royalty
• $ 5,000 annual license renewal fee

New transporter: 50% lower for applicants for social justice

• $ 250 lottery entry fee
• $ 1,000 preliminary license fee
• $ 5,000 final royalty
• $ 5,000 annual license renewal fee

Connecticut Adult Cannabis Use Royalty Fees for Individuals

Pursuant to CT SB 1201, the following fees are payable by persons participating in the state adult market:

New supporter (For individuals)

• $ 100 royalty for a backer or key contributor

New employees (For individuals)

• $ 50 employee registration fee

Connecticut Medical Cannabis Corporate Royalty Fees

The following are the cannabis royalties for companies operating in the established Connecticut medical cannabis market:

producer: Produces marijuana for pharmacies.

• $ 25,000 registration fee (non-refundable)
• $ 75,000 initial registration fee (non-refundable)
• $ 75,000 annual registration renewal fee (non-refundable)

pharmacy: Distributes marijuana to patients.

• $ 1,000 registration fee (non-refundable)
• $ 5,000 application fee (non-refundable)
• $ 5,000 annual registration renewal fee (non-refundable)

brand: A marijuana product made by a manufacturer.

• $ 25 application fee
• No annual registration renewal fee

Connecticut Medical Cannabis Royalty Fees for Individuals

The following are the cannabis license fees for individuals wishing to participate in Connecticut’s established medical cannabis market:

Producer Backer: A person who has a financial interest in a producer.

• $ 100 application fee
• $ 100 annual renewal fee for registration

Employee of the production facility: A person who is employed by a manufacturer or who has access to the production facility (e.g. an independent contractor).

• $ 100 application fee
• $ 100 annual renewal fee for registration

Supporter of the pharmacy establishment: A person who has a financial interest in a pharmacy.

• $ 100 application fee
• $ 100 annual renewal fee for registration

Pharmacy employee: A person who is employed by or has access to a pharmacy (e.g. an independent contractor).

• $ 50 registration fee
• $ 50 annual renewal fee for registration

Pharmacy technician: A person who dispenses marijuana to patients in a pharmacy.

• $ 50 registration fee
• $ 50 annual renewal fee for registration

pharmacy: A person qualified to purchase, own, distribute, and dispense marijuana to patients in a pharmacy (must have a valid pharmacist license).

• $ 100 application fee
• $ 100 annual renewal fee for registration

doctor: A person who prescribes medical marijuana to patients.

• No application fee
• No annual registration renewal fee

Patient: A person who buys medical marijuana from pharmacies.

• $ 100 registration fee
• No annual registration renewal fee

Primary caregiver: A person who purchases medical marijuana for a patient from a pharmacy.

• $ 25 application fee
• No annual registration renewal fee

Connecticut Medical Cannabis Licenses in Numbers

That’s a lot of fees, and some of them are very high! Now let’s take a closer look at how all of these fees compare in the state’s operational medical cannabis industry.

License fees for year 1

When a company or individual applies for a medical cannabis license in Connecticut (or, in the case of patients, signs up for a license) in the first year, fees range from $ 25,000 to $ 100,000, as shown in the table below.

(Click on the diagram to enlarge the diagram)

Years 2+ royalties

After the first year that a company or individual participates in the Connecticut licensed cannabis industry, the entry fee may decrease or stay the same, ranging from $ 0 to $ 75,000, as shown in the table below.

(Click on the diagram to enlarge the diagram)

Comparison of license fees

It is clear that the barrier to entry for producers and pharmacies in entering the Connecticut cannabis industry is huge. It will be interesting to see how the state’s adult market develops after its inception.

In the meantime, you can keep track of all cannabis licenses in Connecticut, the US, and international markets by subscribing to the Cannabiz Media License Database. Schedule a demo to see how it can change the way you do business.

Originally published on 12/12/15. Updated 8/6/21.