HB 7181 — AN ACT CONCERNING THE REGULATION OF TOBACCO, CANNABIS, HEMP AND RELATED PRODUCTS, CONDUCT AND ESTABLISHMENTS.

7181 the laws of this state concerning the cultivation, manufacturing, distribution, transportation, display, purchase, sale, dispensing, possession and use of cannabis, cannabis products, manufacturer hemp products, infused beverages and moderate-THC hemp products.

The Commissioner of Consumer Protection may, within available appropriations, appoint a director and such other personnel as the commissioner deems necessary to perform the duties of the division, in addition to utilizing existing department staff assigned to cannabis and manufacturer hemp product licensing and enforcement activities.

(c) The division shall be authorized to conduct any investigation authorized by this section at any place within this state as may be deemed necessary.

The division may request and receive from any federal, state or local agency cooperation and assistance in the performance ofthedivision'sduties.The divisionmay enter into mutual assistance and cooperation agreements with other states pertaining to cannabis, cannabis product, manufacturer hemp product, infused beverage and moderate-THC hemp product law enforcement matters extending across state boundaries, and may consult and exchange information and personnel with agencies of other states concerning cannabis, cannabis product, manufacturer hemp product, infused beverage and moderate-THC hemp product law enforcement problems of mutual concern.

(d) (1) The division shall organize and conduct comprehensive compliance initiatives concerning the cultivation, manufacturing, distribution, transportation, display, purchase, sale, dispensing, possession and use of cannabis, cannabis products, manufacturer hemp products, infused beverages and moderate-THC hemp products in this state.

To effectuate such comprehensive compliance initiatives, the commissioner or the commissioner's designee shall coordinate with the Attorney General, the Chief State's Attorney, the Commissioner of Emergency Services and Public Protection, the Commissioner of Public Public Act No.

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7181 Health, the Commissioner of Revenue Services and municipal officials.

(2) Not later than April 1, 2026, and annually thereafter, the Department of Consumer Protection shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the Governor and the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding and consumer protection.

Such report shall contain the following information for the preceding calendar year:

(A) The number of comprehensive compliance initiatives that the division conducted during such calendar year;

(B) the number of businesses that were involved in such initiatives during such calendar year;

(C) the types of alleged violations that were discovered in the course of such initiatives during such calendar year;

and (D) the agencies and departments that were involved in such initiatives during such calendar year.

(NEW) (Effective July 1, 2025) Any(a) municipalThere policeshall officer,be whilea assignedState-Wide toCannabis duty with the state-wide cannabis and hempHemp enforcementEnforcement taskPolicy forceBoard establishedconsisting underof sectionthe 2Attorney ofGeneral, thisthe actChief andState's workingAttorney, at the directionCommissioner of Consumer Protection, the Commissioner of Emergency Services and Public ProtectionProtection, or the directorCommissioner of theMental taskHealth force,and ifAddiction any,Services, shall, when acting within the scopeCommissioner of hisPublic orHealth, her authority, have the sameCommissioner powers,of duties,Revenue privilegesServices and immunitiesthe asexecutive aredirector conferredof uponthe himSocial orEquity herCouncil, asor atheir LCOdesignees. 3 of 14 Substitute Bill No.

7181(b) stateThe policepolicy officer.board shall convene quarterly to (1) identify areas of need and enforcement opportunities concerning illegal cannabis sales and intoxicating hemp product sales, (2) examine scientific developmentsandpublichealthstudiesconcerning cannabisandhemp, (3) examine developments in national trends and best practices concerning cannabis and hemp regulation and enforcement, and (4) examine developments in the cannabis and hemp industries.

(NEW)Section (Effective21a-415 July 1, 2025) (a) There shall be a State-Wide Cannabis and Hemp Enforcement Task Force Policy Board, within the Department of Consumer Protection for administrative purposes only, consisting of the Commissionergeneral ofstatutes Consumeris Protection,repealed the Commissioner of Emergency Services and Public Protection, the CommissionerPublic ofAct RevenueNo. Services, the Attorney General and the Chief State's Attorney.

(b)25-166 The6 policy board shall direct and supervise the formulation of policies122 andSubstitute operatingHouse procedures,Bill andNo. coordinate the activities, of the state-widecannabis andhempenforcement task force established under section 2 of this act with law enforcement agencies within and without the state.

(c)7181 Thefollowing policyis boardsubstituted mayin applylieu for,thereof and(Effective shallOctober administer,1, any2025): federal, state, local or private appropriations or grant funds made available for the operation of the task force.

(a) As used in this chapter and section [53-344] 6 of this act:

(1) "Authorized owner" means the owner or authorized designee of a business entity that is applying for a registration or is registered with the Department of Consumer Protection pursuant to this chapter;

(2) "Business entity" means any corporation, limited liability company, association, partnership, sole proprietorship, government, governmental subdivision or agency, business trust, estate, trust or any other legal entity;

(3) "Cigarette" has the same meaning as provided in subsection (b) of section 12-285;

[(3)] (4) "Dealer registration" means an electronic nicotine delivery system certificate of dealer registration issued by the Commissioner of Consumer Protection pursuant to this section;

(5) "Deliver" or "delivering" means transferring, or offering or attempting to transfer, physical possession or control of an electronic nicotine delivery system or vapor product by any person, whether done as principal, proprietor, agent, servant or employee;

[(4)"Manufacturer registration"meansanelectronicnicotine delivery system certificate of manufacturer registration issued by the Commissioner of Consumer Protection pursuant to section 21a-415a to any person who mixes, compounds, repackages or resizes any nicotine- containing electronic nicotine delivery system or vapor product;] (6) "Drug paraphernalia" has the same meaning as provided in section 21a-240;

[(5)] (7) "Electronic cigarette liquid" means a liquid that, when used in an electronic nicotine delivery system or vapor product, produces a Public Act No.

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7181 vapor that may or may not include nicotine and is inhaled by the user of such electronic nicotine delivery system or vapor product;

[(6)] (8) "Electronic nicotine delivery system" means an electronic device used in the delivery of nicotine or other substances to [a person] an individual inhaling from the device, and includes, but is not limited to, an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe or electronic hookah and any related device and any cartridge or other component of such device, including, but not limited to, electronic cigarette liquid;

(9) "Manufacturer registration" means an electronic nicotine delivery system certificate of manufacturer registration issued by the Commissioner of Consumer Protection pursuant to section 21a-415a to any person who mixes, compounds, repackages or resizes any nicotine- containing electronic nicotine delivery system or vapor product;

(10) "Sale" or "sell" means transferring, or offering or attempting to transfer, for consideration, including bartering or exchanging, or offering to barter or exchange by any person,whether done as principal, proprietor, agent, servant or employee;

(11) "Tobacco products" has the same meaning as provided in section 12-330a;

and [(7)] (12) "Vapor product" means any product that employs a heating element, power source, electronic circuit or other electronic, chemical or mechanical means, regardless of shape or size, to produce a vapor that may include nicotine and is inhaled by the user of such product.

"Vapor product" does not include a medicinal or therapeutic product that is (A) used by a licensed health care provider to treat a patient in a health care setting, (B) used by a patient, as prescribed or directed by a licensed health care provider in any setting, or (C) any drug or device, as defined in the federal Food, Drug and Cosmetic Act, 21 USC 321, as amended Public Act No.

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7181 from time to time, any combination product, as described in said act, 21 USC 353(g), as amended from time to time, or any biological product, as described in 42 USC 262, as amended from time to time, and 21 CFR 600.3, as amended from time to time, authorized for sale by the United States Food and Drug Administration.

[;] [(8) "Sale" or "sell" means an act done intentionally by any person, whether done as principal, proprietor, agent, servant or employee, of transferring, or offering or attempting to transfer, for consideration, includingbarteringorexchanging,orofferingto barterorexchange;and (9) "Deliver" or "delivering" means an act done intentionally by any person, whether as principal, proprietor, agent, servant or employee, of transferring, or offering or attempting to transfer, physical possession or control of an electronic nicotine delivery system or vapor product.] (b) (1) No person in this state may sell [, offer for sale] or possess with intent to sell an electronic nicotine delivery system or a vapor product unlesssuchperson isemployedby, anagentofor directly affiliatedwith a business entity that maintains a dealer registration issued by the Commissioner of Consumer Protection pursuant to this section.

A separate dealer registration shall be required for each place of business where such system or product is sold, offered for sale or possessed with the intent to sell.

A dealer registration shall allow the sale of electronic nicotine delivery systems or vapor products at such place of business.

A holderofadealerregistrationshallpostsuchregistrationinaprominent location adjacent to electronic nicotine delivery system products or vapor products offered for sale.

(2) The holder of a dealer registration shall maintain a sign, in a form and manner prescribed by the commissioner and posted on the Department of Consumer Protection's Internet web site, on all external entry doors of the location operated under such dealer registration, which shall clearly disclose that cannabis may not be sold at such Public Act No.

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7181 location.

(3) Each holder of a dealer registration that derives at least fifty per cent of its annual gross revenue from sales of cigarettes, drug paraphernalia, electronic nicotine delivery systems, nicotine products, synthetic nicotine, tobacco products and vapor products shall verify, with a valid government-issued driver's license or identity card, the age of each individual entering the location operated under such dealer registration, and shall prohibit any individual younger than twenty-one years of age from entering such location.

(4) Each holder of a dealer registration shall maintain a complete set of records required pursuant to this section, and all financial records necessary to verify whether such holder derives at least fifty per cent of its annual gross revenue from sales of cigarettes, drug paraphernalia, electronic nicotine delivery systems, nicotine products, synthetic nicotine, tobacco products and vapor products, for the then current tax year and the three immediately preceding tax years.

Such holder shall make such records immediately available to the department, upon a request made by the department, for inspection and copying by the department.

Such holder shall produce such records to the department not later than three days after the department requests such records.

Such holder shall produce such records to the department in an electronic format, unless it is commercially impractical to produce such records to the department in an electronic format.

No person shall use any foreign language, code or symbol in maintaining the records required under this section.

(c) (1) Any applicant for a dealer registration or a renewal of a dealer registration shall apply to the Department of Consumer Protection, in a form and manner prescribed by the Commissioner of Consumer Protection, which application shall include, at a minimum:

[, the] (A) The name, address and electronic mail address of the applicant;

Public Act No.

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7181 [, the] (B) The location [of the business entity] that is to be operated under such dealer registration;

[, the] (C) The name of, [an authorized owner and such authorized owner's contact information, the] and contact information for, each individual who has a direct or indirect financial interest in such applicant, unless (i) such applicant is a publicly traded company listed on a national stock exchange,or(ii)thefinancialinterestheldbysuchindividualownerand such individual's spouse, parents and children, in the aggregate, does not exceed ten per cent of the total ownership or interest rights in such applicant;

(D) A third-party local and national criminal background check for each owner listed on such application, which background check shall (i) be conducted by a third-party consumer reporting agency or background screening company that is in compliance with the federal Fair Credit Reporting Act and accredited by the Professional Background Screening Association, (ii) include a multistate and multijurisdiction criminal record locator or other similar commercial nation-wide database with validation and such other background screening as the commissioner may require, and (iii) be requested by such applicant not more than sixty days prior to submission of such application;

(E) The name of the individual who shall serve as the fiduciary agent and guarantor for such applicant, which individual shall be personally liable in the event of any noncompliance that results in a debt owed to the department;

(F) A disclosure of any enforcement action against, and any negotiated settlement entered into by, such applicant or any owner disclosed pursuant to this subsection, which action or settlement is Public Act No.

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7181 related to the sale of cigarettes, electronic nicotine delivery systems, tobacco products or vapor products;

(G) The name of a manager or supervisor who is or will be physically present at [the] such applicant's location or proposed location;

[,] and [a] (H) A certification that an authorized owner or named designee of [the] such applicant has successfully completed the online prevention education program administered by the Department of Mental Health and Addiction Services pursuant to section 17a-719.

(2) The Department of Consumer Protection:

(A) May require that an applicant submit documents sufficient to establish that state and local building, fire and zoning requirements will be met at the location of any sale;

(B) may, in the department's discretion, conduct an investigation to determine whether a dealer registration shall be issued to an applicant;

and (C) shall not issue a dealer registration or a renewal of a dealer registration to an applicant unless the applicant certifies that an authorized owner or named designee of the applicant has successfully completed the online prevention education program administered by the Department of Mental Health and Addiction Services pursuant to section 17a-719.

[(2)] (3)The commissioner shallissueadealer registrationto any such applicant not later than thirty days after the date of application unless the commissioner finds:

(A) The applicant has [wilfully] made a materially false or misleading statement in such application or in any other application made to the commissioner;

(B) the applicant has neglected to pay any taxes due to this state;

[or] (C) the authorized owner or named designee of the applicant has not successfully completed the online prevention education program administered by the Department of Mental Health and Addiction Services pursuant to section 17a-719;

(D) the applicant has a criminal history that is a sufficient basis for denial under section 46a-80;

or (E) the applicant has Public Act No.

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7181 violated any other provision of this section.

[(3)] (4) A dealer registration issued under this section shall be renewed annually and may be suspended or revoked at the discretion of the Department of Consumer Protection.

[Any applicant or business entity aggrieved by a denial of an application, refusal to renew a dealer registration or suspension or revocation of a dealer registration may appeal in the manner prescribed for permits under section 30-55.] A dealer registration shall not constitute property, nor shall it be subject to attachment and execution, nor shall it be alienable.

Each holder of a dealer registration shall annually attest in each renewal application as to whether such holder derived at least fifty per cent of its annual gross revenue from sales of cigarettes, drug paraphernalia, electronic nicotine delivery systems, nicotine products, synthetic nicotine, tobacco products and vapor products.

[(4)] (5) The applicant shall pay to the department a nonrefundable applicationfeeof [seventy-five]onethousand dollars,whichfee shall be in addition to the annual fee prescribed in subsection (d) of this section.

An application fee shall not be charged for an application to renew a dealer registration.

(d) The annual fee for a dealer registration shall be eight hundred dollars.

[, except that the annual fee shall be four hundred dollars for any person holding a dealer registration who also holds any additional dealer registrations issued by the department under this chapter.] (e)The [department]DepartmentofConsumerProtection mayrenew a dealer registration issued under this section that has expired if the applicant pays to the department any late fee imposed by the [commissioner] Commissioner of Consumer Protection pursuant to subsection [(c)] (d) of section 21a-4, which late fee shall be in addition to the fees prescribed in this section for the dealer registration applied for.

[The provisions of this subsection shall not apply to any dealer Public Act No.

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7181 registration which is the subject of administrative or court proceedings.] (f) (1) Any business entity in the state that sells, offers for sale or possesses with intent to sell an electronic nicotine delivery system or vapor product without a dealer registration as required under this section shall, after a hearing conducted pursuant to chapter 54, be fined not more than [fifty] five thousand dollars [for each day of such] per violation.

[, except that the commissioner may waive all or any part of such fine if it is proven to the commissioner's satisfaction that the failure toobtainorrenewsuchdealerregistrationwasduetoreasonablecause.] (2) Notwithstanding the provisions of subdivision (1) of this subsection, any business entity with a dealer registration that has expiredforaperiodofninetycalendardaysorlessandthat,during such ninety-day period, sells, offers for sale or possesses with intent to sell an electronic nicotine delivery system or vapor product shall [have committed an infraction and shall] be fined [ninety] not more than five hundred dollars for each day such business entity is in violation of the provisions of this subdivision.

[(3) Notwithstanding the provisions of subdivisions (1) and (2) of this subsection,no penalty shallbeimposedunder thissubsectionunlessthe commissioner sends written notice of any violation to the authorized owner of the business entity is subject to a penalty under subdivision (1) or (2) of this subsection and allows such business entity sixty days from the date such notice was sent to cease such violation and comply with the requirements of this section.] (3) A person holding a dealer registration shall update, through the Department of Consumer Protection's online licensing system, any application information such person has provided to the department pursuant to this section, including, but not limited to, any contact information, ownership information or criminal histories of the individual owners of the business entity, not later than thirty days after Public Act No.

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7181 any change in such information.

(g) (1) For sufficient cause found as set forth in subdivision (2) of this subsection, the Commissioner of Consumer Protection may suspend or revoke a dealer registration, issue fines of not more than ten thousand dollars per violation, accept an offer in compromise or refuse to grant or renew a dealer registration, or place the registrant on probation, place conditions on such registrant or take other actions authorized by law.

No information derived from an inspection or investigation conducted by the Department of Consumer Protection related to an administrative complaint or case shall be subject to disclosure under the Freedom of Information Act, as defined in section 1-200, unless the department has entered into a settlement agreement, or otherwise concluded its investigation or inspection as evidenced by case closure.

Nothing in this subdivision shall be construed to prevent the department from sharing any information with another state or federal agency or law enforcement insofar as such information relates to an investigation of any suspected violation of applicable law.

(2) Any of the following shall constitute sufficient cause for the purposes of subdivision (1) of this subsection:

(A) Furnishing any false or fraudulent information in an application or any failure to comply with the representations made in an application;

(B) A civil judgment against, or conviction of, an owner or applicant, after reviewandapplicationofthedenialcriteriaset forthinsection46a- 80;

(C) Any failure to maintain effective controls against diversion, theft or loss of electronic nicotine delivery systems and vapor products;

(D) Any denial, suspension or revocation of a license or registration related to the sale of cigarettes, electronic nicotine delivery systems, Public Act No.

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7181 tobacco products or vapor products, or any denial of a renewal of a license or registration related to the sale of cigarettes, electronic nicotine delivery systems, tobacco products or vapor products, by any federal, state or local government or a foreign jurisdiction;

(E) Any false, misleading or deceptive representation made to the public or to the department;

(F) Any involvement in a fraudulent or deceitful practice or transaction;

(G) The possession,offer or saleofany illegalor controlledsubstance, unless otherwise permitted by applicable law;

(H) Any failure to register a trade name of the business entity with the town in which the registrant engages in business;

(I) Any failure to notify the department of any change in the information concerning the business entity, owners, ownership information or designated manager or supervisor;

(J) Any adverse administrative decision or delinquency assessment against the registrant by the Department of Revenue Services;

(K) Any failure to cooperate, provide unfettered access to the location or provide information to the department, local law enforcement authorities or any other enforcement agency concerning any matter arising out of conduct in connection with a licensee or registrant;

(L) Advertising an electronic nicotine delivery system or vapor product in any manner that (i) is designed to appeal to individuals who are younger than twenty-one years of age by, among other things, (I) making use ofany spokespersonor celebritywho appealsto individuals who are under the legal age to purchase electronic nicotine delivery systemsor vapor products,(II) depicting any individualwho is younger Public Act No.

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7181 than twenty-five years of age using an electronic nicotine delivery system or vapor product, (III) including any object, such as a toy, character or cartoon character, that suggests the presence of an individual who is younger than twenty-one years of age, or (IV) making use of any other depiction or method that is designed in any manner to be appealing to an individual who is younger than twenty-one years of age, or (ii) claims or implies that (I) any electronic nicotine delivery system or vapor product has any curative or therapeutic effect, or (II) any medical claim is true;

(M) Allowing an employee to promote any electronic nicotine delivery system or vapor product for a wellness purpose;

or (N) Any failure to comply with any provision of this chapter or any regulation adopted pursuant to this chapter.

(h) Upon refusal to issue or renew a dealer registration, the Commissioner of Consumer Protection shall notify the applicant of the denial and of the applicant's right to request a hearing not later than ten days after the applicant receives the notice of denial.

If the applicant requests a hearing within such ten-day period, the commissioner shall give notice of the grounds for the commissioner's refusal and shall conduct a hearing concerning such refusal in accordance with the provisions of chapter 54 concerning contested cases.

If the commissioner's denial is sustained after such hearing, the applicant shallnotapplyforanewdealerregistrationforaperiodofoneyearafter the date on which such denial was sustained.

(i) No person whose dealer registration has been revoked, including the owners of such registrant, shall apply for a dealer registration under this section for a period of one year after the date of such revocation.

(j) The voluntary surrender of a dealer registration, or the failure to renew a dealer registration, shall not prevent the Commissioner of Public Act No.

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7181 Consumer Protection from suspending or revoking such dealer registration or imposing other penalties permitted by applicable law.

(k) All fees, settlement amounts and fines collected under this section shall be deposited in the consumer protection enforcement account established in section 21a-8a.

Subdivision(NEW) (6)(Effective October 1, 2025) (a) No person engaged in the business of sectionshipping 54-41aor transporting electronic nicotine delivery systemsorvaporproductsshallshiportransport,orcausetobeshipped or transported, any electronicnicotine delivery systemor vapor product to any person in this state except to (1) a person who holds a dealer registration or a manufacturer registration, or (2) a person who is an officer, employee or agent of the generalUnited statutesStates isgovernment, repealedthis andstate or a department, agency, instrumentality or political subdivision of the followingUnited States or of this state, when such person is substitutedacting in lieuaccordance thereofwith (Effectivesuch Julyperson's 1,official 2025):duties.

(6)The "InvestigativeCommissioner officer" means (A) any officer of theConsumer ConnecticutProtection stateshall police,publish, (B)on the chiefDepartment inspector or any inspector in the Division of CriminalConsumer JusticeProtection's whoInternet isweb empoweredsite, bya lawlist to conduct investigations of oreach toperson make arrests for offenses enumerated in this chapter, (C) any municipal police officer who (i)holds has been duly sworn as a specialdealer stateregistration police officer under theprovisionsofsection29-177 [andwho]or section 3 of this act, (ii) is currently assigned to the state-wide narcotics task force, [or] the state-wide organized crime investigative task force or thea state-widemanufacturer cannabisregistration. and hemp enforcement task force, and (iii) is acting under the direct authority of the Connecticut state police, and (D) any attorney authorized by law to prosecute or participate in the prosecution of offenses enumerated in this chapter;

LCO(b) 4No common or contract carrier shall knowingly transport any electronic nicotine delivery system or vapor product to a residential dwelling or to any person in this state who the common or contract carrier reasonably believes is not a person described in subdivision (1) or (2) of 14subsection Substitute(a) Billof No.this section.

7181No Sec.person other than a common or contract carrier shall knowingly transport any electronic nicotine delivery system or vapor product to any person in this state who is not a person described in subdivision (1) or (2) of subsection (a) of this section.

(c) When a person engaged in the business of selling or delivering electronic nicotine delivery systems or vapor products ships or transports, or causes to be shipped or transported, any electronic Public Act No.

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7181 nicotine delivery system or vapor product to any person described in subdivision (1) or (2) of subsection (a) of this section, other than in the electronic nicotine delivery system or vapor product manufacturer's original container or wrapping, the container or wrapping shall be plainly and visibly marked with the words "electronic nicotine delivery system" or "vapor product", as applicable.

Any person engaged in the business of selling or delivering electronic nicotine delivery systems or vapor products who ships, or causes to be shipped, any electronic nicotine delivery system or vapor product to any person described in subdivision (1) or (2) of subsection (a) of this section (1) shall require, as a condition of such sale or delivery, such person to sign an acknowledgment of receipt and provide proper proof of age, and (2) may not sell or deliver such electronic nicotine delivery system or vapor producttosuchpersonunlesssuchpersonprovidesproperproofofage.

(d) Any electronic nicotine delivery system or vapor product shipped or transported in violation of this section is a common nuisance and is subject to immediate seizure by the state or local police.

The authorized officer shall hold such electronic nicotine delivery system or vapor product subject to confiscation and destruction by order of a court of competent jurisdiction.

All costs of such seizure, confiscation and destruction shall be borne by the shipper or transporter.

(e) The Commissioner of Consumer Protection may impose a civil penalty of not more than ten thousand dollars for each violation of subsections (a) to (d), inclusive, of this section.

For purposes of this subsection, each shipment or transport of electronic nicotine delivery systems or vapor products shall constitute a separate violation.

The Attorney General, upon request of the commissioner, may bring an action in the superior court for the judicial district of Hartford to collect such civilpenalty and for any injunctive or equitablerelief.In any action brought by the Attorney General to enforce the provisions of this section, the state shall be entitled to recover, when the state is the Public Act No.

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7181 prevailing party, the costs of investigation, expert witness fees, costs of the action and reasonable attorneys' fees.

(f) A violation of subsections (a) to (d), inclusive, of this section shall be an unfair or deceptive act or practice pursuant to subsection (a) of section 42-110b of the general statutes.

Sec.

Subdivision (1) of section 21a-420 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(1) "Responsible and Equitable Regulation of Adult-Use Cannabis Act" or "RERACA" means this section, sections 2-56j, 7-294kk, 7-294ll, 12-330ll to 12-330nn, inclusive, 14-227p, 21a-278b, 21a-278c, 21a-279c, 21a-279d, 21a-420a to 21a-420j, inclusive, as amended by this act, 21a- 420l to 21a-421r, inclusive, 21a-421aa to 21a-421ff, inclusive, 21a-421aaa to 21a-421hhh, inclusive, as amended by this act, 21a-422 to 21a-422c, inclusive, 21a-422e to21a-422g,inclusive, 21a-422jto 21a-422s,inclusive, 22-61n,23-4b,47a-9a,53-247a,53a-213a,53a-213b,54-33p,54-56q,54-56r, 54-125k and 54-142u, sections 23, 60, 63 to 65, inclusive, 124, 144 and 165 of public act 21-1 of the June special session, and the amendments in public act 21-1 of the June special session to sections 7-148, 10-221, 12- 30a, 12-35b, 12-412, 12-650, 12-704d, 14-44k, 14-111e, 14-227a to 14-227c, inclusive, 14-227j, 15-140q, 15-140r, 18-100h, 19a-342, 19a-342a, 21a-267, 21a-277, 21a-279, 21a-279a, 21a-408 to 21a-408f, inclusive, 21a-408h to 21a-408p, inclusive, 21a-408r to 21a-408w, inclusive, 21a-420aa, 21a- 421s, 30-89a, 31-40q, 32-39, 46b-120, 51-164n, 53-394, 53a-39c, 54-1m, 54- 33g, 54-41b, 54-56e, 54-56g, 54-56i, 54-56k, 54-56n, 54-63d, 54-66a and 54- 142e, section 20 of public act 23-79 and sections 8 to 10, inclusive, and 41 of this act;

Sec.

8.

(NEW) (Effective July 1, 2025) (a) (1) During the period beginning July 1, 2025, and ending December 31, 2026, a social equity applicant that has submitted an application to the department for a Public Act No.

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7181 cultivator license, or has received a provisional cultivator license, pursuant to subsection (a) of section 21a-420o of the general statutes, as amended by this act, may withdraw such application and apply for a micro-cultivator license pursuant to this section if:

(A) The Social Equity Council has verified that the applicant meets the criteria for a social equity applicant pursuant to subdivision (1) of subsection (a) of section 21a-420o of the general statutes, as amended by this act;

(B) The social equity applicant is eligible to receive a provisional cultivator license pursuant to subsection (a) of section 21a-420o of the general statutes, as amended by this act;

and (C) The social equity applicant submits to the department, in a form and manner prescribed by the commissioner, a written statement by the social equity applicant withdrawing the social equity applicant's application submitted, or provisional cultivator license issued, under subsection (a) of section 21a-420o of the general statutes, as amended by this act.

(2) No social equity applicant that withdraws an application or provisional cultivator license in the manner set forth in subdivision (1) of this subsection shall be eligible to receive a refund for any fee paid in connection with such withdrawn application.

(b) During the period beginning July 1, 2025, and ending March 31, 2027, the department shall issue a provisional micro-cultivator license to a social equity applicant pursuant to this section:

(1) If the social equity applicant meets the eligibility criteria established in subdivision (1) of subsection (a) of this section;

(2) If during the period beginning July 1, 2025, and ending December 31, 2026, thesocial equity applicant submitsto thedepartment,inaform Public Act No.

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7181 and manner prescribed by the commissioner:

(A) A completed micro-cultivator license application and other documentation required to determine eligibility as set forth in subsections (e) to (l), inclusive, of section 21a-420g of the general statutes, as amended by this act;

(B) A written statement by the social equity applicant disclosing whether any change occurred in the ownership or control of the social equity applicant after the Social Equity Council verified that the applicant met the criteria for a social equity applicant pursuant to subdivision (1) of subsection (a) of section 21a-420o of the general statutes, as amended by this act;

and (C) The application fee required under subdivision (1) of subsection (c) of this section;

and (3) If any change described in subparagraph (B) of subdivision (2) of this subsection has occurred:

(A) Such change in ownership or control is allowed under (i) section 21a-420g of the general statutes, as amended by this act, and (ii) any regulation adopted, or policy or procedure issued, pursuant to section 21a-420g of the general statutes, as amended by this act, or 21a-420h of the general statutes, as amended by this act;

and (B) Pursuant to subsection (d) of this section, (i) the Social Equity Council has determined that the social equity applicant continues to meet the criteria for a social equity applicant, and (ii) the department has received a written notice from the Social Equity Council affirming that the Social Equity Council has determined that the social equity applicant continues to meet the criteria for a social equity applicant.

(c) (1) A social equity applicant that has not obtained a provisional cultivator license under subsection (a) of section 21a-420o of the general Public Act No.

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7181 statutes, as amended by this act, and submits a micro-cultivator license application pursuant to subsection (b) of this section shall submit to the department an application fee in the amount of five hundred thousand dollars.

The three-million-dollar fee paid by the social equity applicant pursuant to section 21a-420o of the general statutes, as amended by this act, to receive a provisional cultivator license shall be considered the application fee to convert to a micro-cultivator license pursuant to this section.

All application fees collected pursuant to this subdivision shall be deposited in the consumer protection enforcement account established in section 21a-8a of the general statutes.

(2) The fee to renew a final micro-cultivator license issued pursuant to this section shall be the same as the fee to renew a final micro- cultivator license as set forth in section 21a-420e of the general statutes, as amended by this act.

All renewal fees collected pursuant to this subdivision shall be paid to the State Treasurer and credited to the General Fund.

(d) If any change described in subparagraph (B) of subdivision (2) of subsection (b) of this section has occurred, the Social Equity Council shall(1)determinewhetherthesocialequityapplicantcontinuestomeet the criteria for a social equity applicant, and (2) submit to the department, in a form and manner prescribed by the commissioner, a written notice disclosing such determination.

(e) No social equity applicant that receives a micro-cultivator license under this section shall be eligible to apply for a provisional license and a final license to create more than one equity joint venture to be approved by the Social Equity Council under section 21a-420d of the general statutes, as amended by this act, and no such social equity applicant shall operate any such equity joint venture unless such social equity applicant has received a micro-cultivator license under this section, commenced cultivation activities under such micro-cultivator license and submitted to the department both the application fee Public Act No.

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7181 required under subdivision (1) of subsection (c) of this section and a conversion fee in the amount of five hundred thousand dollars.

The conversion fee collected pursuant to this subsection shall be deposited in the social equity and innovation account established in section 21a- 420f of the general statutes.

The three-million-dollar fee paid by the social equity applicant pursuant to section 21a-420o of the general statutes, as amended by this act, to receive a provisional cultivator license shall be considered the conversion fee to convert to a micro- cultivator license pursuant to this section.

Cultivators that paid the three-million-dollar fee under section 21a-420o of the general statutes, as amended by this act, and received license conversion approval under section 21a-420aa of the general statutes may create not more than two equity joint ventures.

No such cultivator shall apply for, or create, any additional equity joint venture if, on July 1, 2025, such cultivator has created at least two equity joint ventures that have each received a provisional license.

(f) Each application submitted to the department pursuant to subsection (b) of this section, and all information included in, or submitted with, any application submitted pursuant to said subsection, shall be subject to the provisions of subsection (g) of section 21a-420e of the general statutes.

(g) A micro-cultivator licensed under this section, including the backer of such micro-cultivator, shall not increase its ownership in an equity joint venture in excess of fifty per cent during the seven-year period beginning on the date on which a final micro-cultivator license is issued by the department under this section.

(h) Notwithstanding any other provision of RERACA, and except as otherwise provided in subsections (a) to (g), inclusive, of this section:

(1) Each application submitted pursuant to subsection (b) of this section shall be processed as any other micro-cultivator application that Public Act No.

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7181 has been selected through the lottery;

and (2) Each social equity applicant, application submitted pursuant to subsection (b) of this section and micro-cultivator license issued pursuanttothissectionshallbesubjecttosubsections(e)to(l),inclusive, of section 21a-420g of the general statutes, as amended by this act.

Sec.

9.

(NEW) (Effective from passage) (a) During the period beginning January 1, 2026, and ending December 31, 2027, the department shall issue a cultivator license or micro-cultivator license to a social equity applicant, which permits such applicant to locate such applicant's cultivator or micro-cultivator facility outside of a disproportionately impacted area, provided:

(1) On or before July 1, 2026, the social equity applicant submits to the department a complete application for a provisional cultivator or micro-cultivator license pursuant to subsection (a) of section 21a-420o of the general statutes, as amended by this act;

(2) On or before June 30, 2027, the Social Equity Council verifies, pursuant to subdivision (1) of subsection (a) of section 21a-420o of the general statutes, as amended by this act, that such applicant meets the criteria established for a social equity applicant;

(3) On or before June 30, 2027, the department issues a provisional cultivator or micro-cultivator license to the social equity applicant pursuant to section 21a-420o of the general statutes, as amended by this act;

and (4) On or before July 1, 2027, the provisional licensee submits to the department a complete application for a final cultivator or micro- cultivator license, as prescribed in section 21a-420g of the general statutes, as amended by this act, which application shall include:

(A) A copy of a fully executed lease agreement between the Public Act No.

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7181 provisional licensee and a hemp producer, which hemp producer has been continually licensed under section 22-61l of the general statutes since January 1, 2024, and which agreement provides:

(i) For the use of the hemp producer's lot, as defined in section 22-61l of the general statutes, that is on record with the Department of Agriculture on January 1, 2024, and may be located outside of a disproportionately impacted area;

and (ii) That the hemp producer does not currently hold a position of ownership, control or management of the provisional licensee, and if a final cultivator or micro-cultivator license is issued to the provisional licensee pursuant to this section, the hemp producer shall not hold a position of ownership, control or management of the licensee for a period of seven years commencing on the date on which such final license is issued pursuant to this section;

and (iii)An expressacknowledgment by thepartiesthat ifthedepartment issues a final cultivator or micro-cultivator license to the provisional licensee pursuant to this section, the hemp producer shall immediately be deemed to have automatically surrendered such hemp producer's license;

(B) Evidence sufficient for the department to verify that the hemp producer that is a party to the lease has been continually licensed as a hemp producer since January 1, 2024;

(C) An acknowledgment by the provisional licensee that, if the department issues a final cultivator or micro-cultivator license to such provisional licensee pursuant to this section, such licensee shall (i) in the case of a final cultivator license, be eligible to create not more than one equity joint venture after such licensee receives such license and commences cultivation activities under such license, or (ii) in the case of a final micro-cultivator license, be ineligible to create an equity joint Public Act No.

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7181 venture after such licensee receives such license;

and (D) An attestation by the provisional licensee that (i) the hemp producerfromwhichsuchprovisionallicenseeisleasinglandshallhave no ownership interest in, or managerial control over, such licensee, other than any ownership interest or control previously disclosed to the Social Equity Council for the purpose of determining that the social equity applicant meets the criteria for a social equity applicant pursuant to subdivision (1) of subsection (a) of section 21a-420o of the general statutes, as amended by this act, and (ii) all hemp has been harvested from the lot subject to the lease between the provisional licensee and the hemp producer.

(b) During the seven-year period commencing on the date on which a final cultivator license or final micro-cultivator license is issued pursuant to this section, the cultivator or micro-cultivator issued such final license shall:

(1)Not enter into any businessarrangement withthehempproducer, other than for the lease of the hemp producer's lot, or any affiliate, subsidiary or entity controlled by the hemp producer if such business arrangement may result in such hemp producer, affiliate, subsidiary or entity holding a position of ownership, control or management of the cultivator or micro-cultivator;

and (2) Disclose any direct or indirect business interest or relationship between the cultivator or micro-cultivator and the hemp producer or any affiliate, subsidiary or entity controlled by the hemp producer or any key participant, as defined in section 22-61l of the general statutes.

(c) The fee to renew a final cultivator license or final micro-cultivator license issued pursuant to this section shall be the same as the fee to renew a final cultivator license or final micro-cultivator license as set forth in section 21a-420e of the general statutes, as amended by this act.

Public Act No.

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7181 (d)Allhemplocatedonthelotsubjecttotheleaseagreementbetween the provisional licensee and the hemp producer shall continue to be deemed hemp until the department issues a final cultivator license or final micro-cultivator license to such licensee.

After the department issues a final cultivator license or final micro-cultivator license pursuant to this section, such hemp shall be deemed to be cannabis and shall be subject to all cannabis cultivation, testing, labeling, tracking, reporting and manufacturing provisions of RERACA as such provisions apply to cultivators and micro-cultivators.

(e) No provisional licensee that receives a final cultivator license under this section shall be eligible to create more than one equity joint venture,andnosuchlicenseeshallcreateanyequityjointventureunless such licensee has received a final cultivator license under this section and commenced cultivation activities under such cultivator license.

No provisional licensee that receives a micro-cultivator license under this section shall be eligible to create an equity joint venture.

(f) Each application submitted to the department pursuant to subsection (a) of this section, and all information included in or submitted with such application, shall be subject to the provisions of subsection (g) of section 21a-420e of the general statutes.

Sec.

10.

(NEW) (Effective October 1, 2025) (a) The Department of Consumer Protection shall develop signage containing a quick response code, or a comparable electronic identifier, that verifies whether the person displaying such signage holds an active cannabis establishment license issued by the department.

Such signage shall be displayed in the form and manner prescribed by the Commissioner of Consumer Protection.

(b)No person shall display thesignage developedby theDepartment of Consumer Protection pursuant to subsection (a) of this section, or any substantially similar signage, unless such person holds an active Public Act No.

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7181 cannabis establishment license issued by the department.

(c) No cannabis establishment shall display the signage developed by the Department of Consumer Protection pursuant to subsection (a) of this section in any form or manner other than the form and manner prescribed by the Commissioner of Consumer Protection pursuant to subsection (a) of this section.

(d) Any violation of the provisions of subsection (b) or (c) of this section shall be deemed an unfair or deceptive trade practice under subsection (a) of section 42-110b of the general statutes.

Any cannabis establishmentthatviolatestheprovisionsofsubsection(c)ofthissection may besubject to additionalenforcement actionpursuant to section21a- 421p of the general statutes, as amended by this act.

Sec.

11.

(4) "Immediate threat to public health and safety" includes, but is not limited to, the presence of (A) any cannabis or cannabis product in connection with a violation of this section, or (B) any cigarette, tobacco product, electronic cigarette liquid, electronic nicotine delivery system or liquidnicotineliquid nicotine container alongsideanystored cannabisoror cannabisproduct;displayed adjacent or proximate to any cannabis or cannabis product or otherwise being sold unlawfully;

(5) "Liquid nicotine container" has the same meaning as provided in sectionPublic 19a-342a;Act No.

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7181 section 19a-342a;

[(b)] (c) No person except a delivery service, or an employee of a delivery service, subject to the restrictions set forth in section 21a-420z, as amended by this act, acting in the course of such employee's employmentemployment, may deliver any LCOcannabis 5or ofcannabis 14product Substituteto Bill[consumers, No.patients or caregivers] a consumer, qualifying patient or caregiver.

7181 cannabis or cannabis product to [consumers, patients or caregivers] a consumer, qualifying patient or caregiver.

(2) If the chief executive officer of a municipality determines that a business within the municipality is operating in violation of the provisions of this section or poses an immediate threat to public health and safety, the chief executive officer may apply to the Superior Court forPublic anAct orderNo. under subdivision (3) of this subsection and, upon making such application, submit a written copy of such application to the Attorney General.

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7181 for an order under subdivision (3) of this subsection and, upon making such application, submit a written copy of such application to the Attorney General and the Commissioner of Consumer Protection.

(4) As used in this subsection, [(A) "cigarette" has the same meaning LCOas 6provided in section 4-28h, (B) "immediate threat to public health and safety" includes, but is not limited to, the presence of 14(i) Substituteany Billcannabis No.or cannabis product in connection with a violation of this section, or (ii) any cigarette or tobacco product alongside any cannabis or cannabis product, and (C)] "operation" and "operating"mean engaging in the sale of [, or otherwise offering for sale,] goods and services to the general public, including, but not limited to, through indirect retail sales.

7181 as provided in section 4-28h, (B) "immediate threat to public health and safety" includes, but is not limited to, the presence of (i) any cannabis or cannabis product in connection with a violation of this section, or (ii) any cigarette or tobacco product alongside any cannabis or cannabis product, and (C)] "operation" and "operating"mean engaging in the sale of, or otherwise offering for sale, goods and services to the general public, including, but not limited to, through indirect retail sales.

(2)Public AnyAct personNo. who aids or abets any violation of the provisions of this section shall be assessed a civil penalty of thirty thousand dollars for eachviolation.Eachday that suchpersonaidsor abetssuchviolation shall constitute a separate offense.

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7181 (2) Any person who aids or abets any violation of the provisions of this section shall be assessed a civil penalty of thirty thousand dollars for eachviolation.Eachday that suchpersonaidsor abetssuchviolation shall constitute a separate offense.

(3) Any person who manages or controls a commercial property, or who manages or controls a commercial building, room, space or enclosure, in such person's capacity as an owner, lessee, agent, LCOemployee 7or mortgagor, who knowingly leases, rents or makes such property, building, room, space or enclosure available for use, with or without compensation, for the purpose of 14any Substitutesale Billor No.offer of any cannabis or cannabis product in violation of this section shall be assessed a civil penalty of ten thousand dollars for each violation.

7181 employee or mortgagor, who knowingly leases, rents or makes such property, building, room, space or enclosure available for use, with or without compensation, for the purpose of any sale or offer of any cannabis or cannabis product in violation of this section shall be assessed a civil penalty of ten thousand dollars for each violation.

(4)No personother thantheAttorney General,uponcomplaint ofthe Commissioner of Consumer Protection, or a municipality in which the violationofthissectionoccurredshallassessanycivilpenaltyunderthis subsectionPublic orAct instituteNo. a civil action to recover any civil penalty imposed underthissubsection.Ifamunicipalityinstitutesacivilactiontorecover any civil penalty imposed under this subsection, such penalty shall be paid [first] to the municipality.

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7181 subsection or institute a civil action to recover any civil penalty imposed underthissubsection.Ifamunicipalityinstitutesacivilactiontorecover any civil penalty imposed under this subsection, such penalty shall be paid [first] to the municipality.

8.12.

SubdivisionSubsections (1)(h) ofto subsection(k), (f)inclusive, of section 21a-420p21a-420d of the general statutes isare repealed and the following is substituted in lieu thereof (Effective Octoberfrom 1,passage): 2025):

(f)(h) (1)Not Subjectlater tothan January 1, 2022, the requirementsSocial Equity Council shall, taking into account the results of thisthe subsectionstudy andconducted in accordance with subsection [(b)](g) (c)of this section, make written recommendations, in accordance with the provisions of section 21a-420c,11-4a, asto amendedthe byGovernor thisandthe act,joint astanding micro-cultivatorcommittees maysellitsowncannabis,including,butnotlimitedto,itsowncannabisof seedlings,the General Assembly having cognizance of matters relating to consumers,finance, excludingrevenue qualifyingand patientsbonding, consumer protection and caregivers,the throughjudiciary aregarding deliverylegislation service.to implement the provisions of this section.

NoThe cannabiscouncil establishment other than a micro-cultivator shall sellmake cannabisrecommendations seedlingsregarding: to consumers, and no cannabis establishment other than a delivery service shall deliver LCO 8 of 14 Substitute Bill No.

7181(1) cannabisCreating seedlingsprograms soldto ensure that individuals from communities that have been disproportionately harmed by acannabis micro-cultivatorprohibition and enforcement are provided equal access to consumers.licenses for cannabis establishments;

Public Act No.

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7181 (2) Specifying additional qualifications for social equity applicants;

(3) Providing for expedited or priority license processing for each license as a retailer, hybrid retailer, cultivator, micro-cultivator, product manufacturer, food and beverage manufacturer, product packager, transporter and delivery service license for social equity applicants;

(4) Establishing minimum criteria for any cannabis establishment licensed on or after January 1, 2022, [that is not owned by a social equity applicant,] to comply with an approved workforce development plan to reinvest or provide employment and training opportunities for individuals in disproportionately impacted areas;

(5) Establishing criteria for a social equity plan for any cannabis establishment licensed on or after January 1, 2022, to further the principles of equity, as defined in section 21a-420, as amended by this act;

(6) Recruiting individuals from communities that have been disproportionately harmed by cannabis prohibition and enforcement to enrollintheworkforcetraining programestablishedpursuant to section 21a-421g;

(7) Potential uses for revenue generated under RERACA to further equity;

(8) Encouraging participation of investors, cannabis establishments [,] and entrepreneurs in the cannabis business accelerator program established pursuant to section 21a-421f;

(9) Establishing a process to best ensure that social equity applicants have access to the capital and training needed to own and operate a cannabis establishment;

and (10) Developing a vendor list of women-owned and minority-owned Public Act No.

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7181 businessesthatcannabisestablishmentsmay contractwithfornecessary services, including, but not limited to, office supplies, information technology infrastructure and cleaning services.

(i)(1)Not later thanAugust 1,2021,andannually thereafter untilJuly 31, 2023, the Social Equity Council shall use the most recent five-year United States Census Bureau American Community Survey estimates or any successor data to determine one or more United States census tracts in the state that are a disproportionately impacted area and shall publish a list of such tracts on the council's Internet web site.

(2) Not later than August 1, 2023, the council shall use poverty rate data from the most recent five-year United States Census Bureau American Community Survey estimates, population data from the most recent decennial census and conviction information from databases managed by the Department of Emergency Services and Public Protection to identify all United States census tracts in the state that are disproportionately impacted areas and shall publish a list of such tracts on the council's Internet web site.

In identifying which census tracts in this state are disproportionately impacted areas and preparing such list, the council shall:

(A) Not deem any census tract with a poverty rate that is less than the state-wide poverty rate to be a disproportionately impacted area;

(B) After eliminating the census tracts described in subparagraph (A) of this subdivision, rank the remaining census tracts in order from the census tract with the greatest historical conviction rate for drug-related offenses to the census tract with the lowest historical conviction rate for drug-related offenses;

and (C) Include census tracts in the order of rank described in subparagraph (B) of this subdivision until including the next census tract would cause the total population of all included census tracts to Public Act No.

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7181 exceed twenty-five per cent of the state's population.

(j) After developing criteria for workforce development plans as described in subdivision (4) of subsection (h) of this section, the Social Equity Council shall review and approve or deny in writing any such plan submitted by [a producer under section 21a-420l or a hybrid- retailer under section 21a-420u] an applicant for a final license.

If the Social Equity Council does not approve a workforce development plan for a cannabis establishment on or before July 1, 2025, the cannabis establishment shall submit a workforce development plan to the council not later than October 1, 2025, or sixty days prior to the next renewal date for such cannabis establishment's license, whichever is earlier.

Not later than sixty days after the cannabis establishment submits the workforce development planto thecouncil,thecouncil shall sendnotice to the cannabis establishment disclosing whether such workforce development planhas beenapproved,rejectedor requiresmodification.

(k) The Social Equity Council shall develop criteria for evaluating the ownership and control of any equity joint venture created under section 21a-420m, asamended by thisact,21a-420u,asamendedby thisact,21a- 420j, as amended by this act, [or] 21a-420aa, section 8 of this act or section 9 of this act and shall review and approve or deny in writing such equity joint venture prior to such equity joint venture being licensed under section 21a-420m, as amended by this act, 21a-420u, as amended by this act, 21a-420j, as amended by this act, [or] 21a-420aa, section 8 of this act or section 9 of this act.

The council shall not approve any equity joint venture applicant which shares with an equity joint venture any individual owner who meets the criteria established in subparagraphs (A) and (B) of subdivision (51) of section 21a-420, other than an individual owner in their capacity as a backer licensed under section 21a-420o, as amended by this act.

9.13.

Subsection (c) of section 21a-420e of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, Public Act No.

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7181 2025):

(c) Except as provided in subsection (d) of this section, the following fees shall be paid by each applicant:

(1) For a retailer license, the fee to enter the lottery shall be five hundred dollars, the fee to receive a provisional license shall be five thousand dollars and the fee to receive a final license or a renewal of a final license shall be twenty-five thousand dollars.

(2)For a hybridretailerlicense, thefeeto enter thelottery shallbe five hundred dollars, the fee to receive a provisional license shall be five thousand dollars and the fee to receive a final license or a renewal of a final license shall be twenty-five thousand dollars.

(3) For a cultivator license, the fee to enter the lottery shall be one thousand dollars, the fee to receive aprovisional license shall be twenty- five thousand dollars and the fee to receive a final license or a renewal of a final license shall be seventy-five thousand dollars.

(4) For a micro-cultivator license, the fee to enter the lottery shall be two hundred fifty dollars, the fee to receive a provisional license shall be five hundred dollars and the fee to receive a final license or a renewal of a final license shall be one thousand dollars.

(5) (A) For a product manufacturer license, the fee to enter the lottery shall be seven hundred fifty dollars, the fee to receive a provisional license shall befive thousanddollarsandthefee to receive afinallicense or a renewal of a final license shall be twenty-five thousand dollars.

(B) For a product manufacturer seeking authorization to expand the product manufacturer's authorized activities to include the authorized activities of a food and beverage manufacturer, the application fee for such expanded authorization shall be five thousand dollars and the fee to renew such expanded authorization shall be five thousand dollars.

Public Act No.

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7181 The fees due under this subparagraph shall be in addition to the fees due under subparagraph (A) of this subdivision.

(6) (A) For a food and beverage manufacturer license, the fee to enter the lottery shall be two hundred fifty dollars, the fee to receive a provisional license shall be one thousand dollars and the fee to receive a final license or a renewal of a final license shall be five thousand dollars.

(B) For a food and beverage manufacturer seeking authorization to expand the food and beverage manufacturer's authorized activities to include the authorized activities of a product manufacturer, the application fee for such expanded authorization shall be twenty-five thousand dollars and the fee to renew such expanded authorization shall be twenty-five thousand dollars.

The fees due under this subparagraph shall be in addition to the fees due under subparagraph (A) of this subdivision.

(7) (A) For a product packager license, the feeto enter the lottery shall be five hundred dollars, the fee to receive a provisional license shall be five thousand dollars and the fee to receive a final license or a renewal of a final license shall be twenty-five thousand dollars.

(B) For a product packager seeking authorization to expand the product packager's authorized activities to include the authorized activities of a product manufacturer, the application fee for such expanded authorization shall be thirty thousand dollars and the fee to renew such expanded authorization shall be twenty-five thousand dollars.

The [fees] renewal fee due under this subparagraph shall be in lieu of the [fees] renewal fee due under subparagraph (A) of this subdivision.

(8) For a delivery service or transporter license, the fee to enter the lottery shall be two hundred fifty dollars, the fee to receive a provisional Public Act No.

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7181 license shall be one thousand dollars and the fee to receive a final license or a renewal of a final license shall be five thousand dollars.

(9) For an initial or renewal of a backer license, the fee shall be one hundred dollars.

(10) For an initial or renewal of a key employee license, the fee shall be one hundred dollars.

(11) For an initial or renewal of a registration of an employee who is not a key employee, the fee shall be fifty dollars.

(12) The license conversion fee for a dispensary facility to become a hybrid retailer shall be one million dollars, except as provided in section 21a-420u, as amended by this act.

(13) The license conversion fee for a producer to engage in the adult use cannabis market shall be three million dollars, except as provided in section 21a-420l.

(14) For a dispensary facility license, the fee to enter the lottery shall be five hundred dollars, the fee to receive a provisional license shall be five thousand dollars and the fee to receive a final license or a renewal of a final license shall be five thousand dollars.

(15) For a producer license, the fee to enter the lottery shall be one thousand dollars, the fee to receive aprovisional license shall be twenty- five thousand dollars and the fee to receive a final license or a renewal of a final license shall be seventy-five thousand dollars.

Sec.

14.

Subsections (b) to (j), inclusive, of section 21a-420g of the general statutes are repealed and the following is substituted in lieu thereof (Effective from passage):

(b) Except as provided in sections 21a-420o, as amended by this act, and 21a-420aa and sections 8 and 9 of this act, prior to the first date that Public Act No.

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7181 the department begins accepting applications for a license type, the department shall determine the maximum number of applications that shall be considered for such license type and post such information on its Internet web site.

Fifty per cent of the maximum number of applications that shall be considered for each license type (1) shall be selected through a social equity lottery for such license type, and (2) shallbe reserved by thedepartment for socialequity applicants.If, upon the close of the application period for a license type, the department receives more applications than the maximum number to be considered in total or to be reserved for social equity applicants as set forth in this subsection, a third-party lottery operator shall conduct a lottery to identify applicationsfor reviewby thedepartment andtheSocialEquity Council.

(c) (1) The third-party lottery operator shall:

(A) Not be provided any application received after the close of the application period;

(B) Give equal weight to every complete application submitted during the application period;

and (C) Conduct multiple, separate geographic lotteries if required by the department.

(2) For purposes of the lottery, the third-party lottery operator shall:

(A) Conduct an independent social equity lottery and general lottery for each license type that results in each application being randomly ranked starting with one and continuing sequentially;

and (B) Rank all applications in each lottery numerically according to the order in which they were drawn, including those that exceed the number to be considered, and identify for the department all applications to be considered.

Public Act No.

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7181 (d) (1) Prior to submitting an application, an applicant that is a business entity shall register such business entity with the Secretary of the State to do business in this state, and include with such application an attestation that such applicant has so registered.

(2)No applicant shallapply more thanonce in any applicationperiod to the social equity lottery round, if applicable, or the general lottery round.

The department shall review the list of all lottery applicants in the social equity lottery round and the general lottery round, independently for eachsuch round, to determine whether any applicant has submitted more than one application under the same applicant name.

Except as provided in subdivision (3) of this subsection, if the department determines that any applicant has submitted more than one application in the social equity lottery round or the general lottery round, all applications submitted in such round by such applicant shall be disqualified and the department shall remove all such applications from the pool of eligible applications the department provides to the third-party lottery operator for selection in such round.

(3) If a social equity application is entered into the general lottery round pursuant to subdivision (4) of subsection (e) of this section, thereby resulting in two entries by the same social equity applicant in the general lottery round, such entries shall not result in disqualification under subdivision (2) of this subsection.

Such social equity applicant shall not be eligible to receive more than one license from any round of the general lottery.

If such social equity applicant is selected twice for consideration in any general lottery round, the department shall disqualify the second such selection and request that the third-party lottery operator identify the next-ranked application in the applicable lottery.

(4) No disqualification under this subsection shall result in any refund of lottery fees.

Public Act No.

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7181 (5)Forthepurposeofthissubsection:(A)"Applicationperiod"means the established period of time within which the department may accept applications for a specific license type for the social equity or general lottery;

and (B) "round" means each time a lottery is run to determine the ranking of applicants after the conclusion of an application period, either for the social equity lottery or the general lottery.

(e) (1) Upon receipt of an application for social equity consideration or, in the case where a social equity lottery is conducted, after such lottery applicants are selected, the department shall provide to the Social Equity Council the documentation received by the department during the application process that is required under subsection (a) of this section.

No identifying information beyond what is necessary to establish social equity status shall be provided to the Social Equity Council.

The Social Equity Council shall review the social equity applications to be considered as identified by the third-party lottery operator to determine whether the applicant meets the criteria for a social equity applicant.

If the Social Equity Council determines that an applicant does not qualify as a social equity applicant, the application shall not be reviewed further for purposes of receiving a license designated for social equity applicants.

The application shall be entered into the general lottery for the applicable license type and may be reviewed further if selected through such lottery, provided the applicant pays the additional amount necessary to pay the full fee for entry into such lottery within five business days of being notified by the Social Equity Council that such applicant does not qualify as a social equity applicant.

Not later than thirty days after the Social Equity Council notifies an applicant of the Social Equity Council's determination that the applicant does not meet the criteria for a social equity applicant, the applicant may appeal from such determination to the Superior Court in accordance with section 4-183.

(2) Upon determination by the Social Equity Council that an Public Act No.

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7181 application selected through the lottery process does not qualify for consideration as a social equity applicant, the department shall request that thethird-party lotteryoperator identifythe next-rankedapplication in the social equity lottery.

This process may continue until the Social Equity Council has identified for further consideration the number of applications set forth on the department's web site pursuant to subsection(b)ofthissectionor untilthere areno remaining socialequity applications to be considered.

(3) For each license type, the Social Equity Council shall identify for the department the social equity applications that qualify as social equity applicants and that should be reviewed by the department for purposes of awarding a provisional license.

(4) Any application entered into, but not selected through, the social equity lottery shall not be reviewed as a social equity application, but shall be entered into the general lottery for the applicable license type.

(5) After receiving the list of selected social equity applications reviewed and approved by the Social Equity Council, the department shall notify the third-party lottery operator, which shall then conduct the independent general lottery for all remaining applicants for each license type, rank all general lottery applications numerically including those that exceed the number to be considered, and identify for the department all of the selected applications to be reviewed.

The number of applications to be reviewed by the department shall consist of the applications ranked numerically one through the maximum number necessary to ensure that fifty per cent of the applications for each license type identified through the lottery process are selected from the social equity lottery and approved by the Social Equity Council.

(6)Thenumericalrankingscreatedbythethird-partylotteryoperator shall be confidential and shall not be subject to disclosure under the Freedom of Information Act, as defined in section 1-200.

Public Act No.

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7181 (f) The department shall review each application to be considered, as identified by the third-party lottery operator or Social Equity Council, as applicable, to confirm such application is complete and to determine whether any application:

(1) Includes a backer with a disqualifying conviction;

(2) exceeds the cap set forth in section 21a-420i;

or (3) has a backer who individually or in connection with a cannabis business in another state or country has an administrative finding or judicial decision that may substantively compromise the integrity of the cannabis program, as determined by the department, or that precludes its participation in this state's cannabis program.

(g) No additional backers may be added to a cannabis establishment application between the time of lottery entry, or any initial application for a license, and when a final license is awarded to the cannabis establishment, except, if a backer of an applicant or provisional licensee dies, the applicant or provisional licensee may apply to the commissionertoreplacethedeceasedbacker,providedifsuchapplicant is a social equity applicant, the Social Equity Council shall review ownership to ensure such replacement would not cause the applicant to no longer qualify as a social equity applicant.

A backer may be removed from a cannabis establishment application selected through the general lottery at any time upon notice to the department.

(h) If an applicant is disqualified on the basis of any of the criteria set forth in subsection (f) of this section, the entire application shall be denied, and such denial shall be a final decision of the department unless the applicant removes from such application all backers that would cause such denial not later than thirty days after the department sends notice to the applicant disclosing such denial.

Any change to a social equity applicant shall be reviewed and approved by the Social Equity Council before such change is reviewed by the department.

Not later than thirty days after the department sends notice to the applicant disclosing such denial, the applicant may appeal such denial to the Public Act No.

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7181 Superior Court.

(i) For each application denied pursuant to subsection (f) of this section,thedepartmentmay,withinitsdiscretion,requestthatthethird- party lottery operator identify the next-ranked application in the applicable lottery.

If the applicant that was denied was a social equity applicant, the next ranked social equity applicant shall first be reviewed by the Social Equity Council to confirm that the applicant qualifies as a social equity applicant prior to being further reviewed by the department.

This process may continue until the department has identified for further consideration the number of applications equivalent to the maximum number set forth on its Internet web site pursuant to subsection (b) of this section.

If the number of applications remaining is less than the maximum number posted on the department's Internet web site, the department shall award fewer licenses.

To the extent the denials result in less than fifty per cent of applicants being social equity applicants, the department shall continue to review and issue provisional and final licenses for the remaining applications, but shall reopen the application period only for social equity applicants.

(j) All applicants selected in the lottery and not denied shall be provided a provisional license application, which shall be submitted in a form and manner prescribed by the commissioner.

Lottery applicants shall have sixty days from the date they receive their provisional application to complete the application.

The right to apply for a provisional license is nontransferable.

Upon receiving a provisional application from an applicant, the department shall review the application for completeness and to confirm that all information provided is acceptable and in compliance with this section and any regulations adopted under this section.

If a provisional application does not meet the standards set forth in this section, the applicant shall not be provided a provisional license.

A provisional license issued by the Public Act No.

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7181 department to an applicant, [on or before June 30, 2023,] other than a provisional license issued pursuant to section 21a-420o, as amended by this act, shall expire twenty-four months after the date on which the department issued such provisional license and shall not be renewed.

[A provisional license issued by the department to an applicant on or after July 1, 2023, other than a provisional license issued pursuant to section 21a-420o, shall expire after fourteen months and shall not be renewed.] Upon granting a provisional license, the department shall notify the applicant of the project labor agreement requirements of section 21a-421e.

A provisional licensee may apply for a final license of the license type for which the licensee applied during the initial application period.

A provisional license shall be nontransferable.

If the provisional application does not meet the standards set forth in this section or is not completed within sixty days, the applicant shall not receive a provisional license.

The decision of the department not to award a provisional license shall be final and may be appealed in accordance with section 4-183.

Nothing in this section shall prevent a provisional applicant from submitting an application for a future lottery.

Sec.

15.

Section 21a-420h of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

The Social Equity Council shall adopt regulations, in accordance with the provisions of chapter 54, to prevent the sale or change in ownership or control of a cannabis establishment license awarded to a social equity applicant to someone other than another qualifying social equity applicant during the period of provisional licensure, and for three years following the issuance of a final license, unless the backer of such licensee has died or has a condition, including, but not limited to, a physical illness or loss of skill or deterioration due to the aging process, emotional disorder or mental illness that would interfere with the backer's ability to operate.

If the council approves any sale or change in Public Act No.

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7181 ownership or control of a cannabis establishment license awarded to a social equity applicant during the three-year period following issuance of a final license, and such sale or change in ownership or control is made to anyone other than another qualifying social equity applicant, the cannabis establishment licensee shall be treated as a cannabis establishment licensee without social equity status beginning on the date of such approval and such cannabis licensee shall no longer be eligible to pay a reduced license renewal fee.

Notwithstanding the requirements of sections 4-168 to 4-172, inclusive, in order to effectuate this section, prior to adopting such regulations and not later than October 1, 2021, the council shall issue policies and procedures to implement the provisions of this section that shall have the force and effect of law.

The council shall post all policies and procedures on its Internet web site and submit such policies and procedures to the Secretary of the State for posting on the eRegulations System, at least fifteen days prior to the effective date of any policy or procedure.

Any such policy or procedure shall no longer be effective upon the earlier of either theadoptionofthepolicy or procedureasafinalregulationunder section 4-172 or [forty-eight] sixty-three months from July 1, 2021.

[, if such regulations have not been submitted to the legislative regulation review committee for consideration under section 4-170.] Any violation of such policies and procedures or any violation of such regulations related to the sale or change in ownership may be referred by the Social Equity Council to the department for administrative enforcement action, which may result in a fine of not more than ten million dollars or action against the establishment's license.

Sec.

16.

Subsection (d) of section 21a-420j of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(d) [A] (1) Except as provided in subdivision (2) of this subsection, a cultivator licensed under section 21a-420o, as amended by this act, Public Act No.

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7181 including the backer of such cultivator, shall not increase its ownership in an equity joint venture in excess of fifty per cent during the seven- yearperiodafteralicenseisissuedbythedepartmentunderthissection.

(2) A cultivator licensed under section 21a-420o, as amended by this act, who satisfies the criteria established in subparagraph (A) of subdivision (2) of subsection (b) of section 21a-420o, as amended by this act, including the backer of such cultivator, shall not increase its ownership in an equity joint venture in excess of fifty per cent during the seven-year period beginning on the date on which a final license is issued by the department under subdivision (2) of subsection (b) of section 21a-420o, as amended by this act.

Sec.

17.

Subsection (g) of section 21a-420m of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(g) If a producer has paid a reduced conversion fee, as described in subsection (b) of section 21a-420l, and subsequently did not create two equity joint ventures under this section that, not later than [fourteen] twenty-four months after the Department of Consumer Protection approved the producer's license expansion application under section 21a-420l, eachreceiveda finallicense fromthedepartment,theproducer shall be liable for the full conversion fee of three million dollars established in section 21a-420l minus such paid reduced conversion fee.

Sec.

18.

Subsection (b) of section 21a-420n of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(b) (1) A cultivator is authorized to cultivate, grow and propagate cannabis at an establishment containing not less than fifteen thousand square feet of grow space, provided such cultivator complies with the provisions of any regulations adopted under section 21a-420q, as Public Act No.

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7181 amended by this act, concerning grow space.

A cultivator establishment shall meet physical security controls and protocols set forth and required by the commissioner.

(2) (A) Notwithstanding the provisions of subdivision (1) of this subsection, during the period beginning on June 6, 2024, through December 31, [2025] 2027, the department may grant a final cultivator license to the holder of a provisional cultivator license issued under section 21a-420o, as amended by this act, who has not developed the capabilitytocultivate,growandpropagatecannabisatanestablishment containing at least fifteen thousand square feet of grow space, and such holder may carryout thefunctionsofacultivator,ifsuchholder submits to the department, in a form and manner prescribed by the commissioner:

(i) A completed application for a final cultivator license;

and (ii) Evidence that (I) such holder's licensed cultivation facility contains at least five thousand square feet of grow space, (II) such holder, and such holder's licensed cultivation facility, are in compliance with the provisions of this chapter and the regulations adopted, and policies and procedures issued, under this chapter, (III) such holder has a detailed business plan and buildout schedule to cultivate, grow and propagate cannabis at a licensed establishment containing at least fifteen thousand square feet of grow space on or before December 31, [2025] 2027, and (IV) such holder has paid the three-million-dollar fee required under subdivision (3) of subsection (a) of section 21a-420o, as amended by this act.

(B) If the department issues a final cultivator license under this subdivision, and the licensee fails to cultivate, grow and propagate cannabis at a licensed establishment containing at least fifteen thousand square feet of grow space on or before December 31, [2025] 2027, such licensee shall pay to the department, in a form and manner prescribed Public Act No.

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7181 by the commissioner, an extension fee in the amount of five hundred dollars for each day that such licensee's licensed establishment fails to satisfy such minimum grow space requirement.

The department may, in addition to imposing such extension fee, exercise the department's enforcement authority under section 21a-421p, as amended by this act, if the licensee fails to satisfy such minimum grow space requirement on or before December 31, [2025] 2027.

Sec.

19.

Section 21a-420o of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Thirty days after the Social Equity Council posts the criteria for social equity applicants on its Internet web site, the department shall open up a three-month application period for cultivators during which a social equity applicant may apply to the department for a provisional cultivator license and final license for a cultivation facility located in a disproportionately impacted area, or at another location described in subparagraph (B) of subdivision (1) of subsection (b) of this section, without participating in a lottery or request for proposals.

Such application for a provisional license shall be granted upon:

(1) Verification by the Social Equity Council that the applicant meets the criteria for a social equity applicant;

(2) the applicant submitting to and passing a criminal background check;

and (3) payment of a three- million-dollar fee to be deposited in the Cannabis Social Equity and Innovation Fund established in section 21a-420f.

Upon granting such provisional license, the department shall notify the applicant of the project labor agreement requirements of section 21a-421e.

The department shall not grant an application for a provisional cultivator license under this subsection after December 31, [2025] 2026.

(b) (1) To obtain a final cultivator license under this section, the social equity applicant shall provide evidence of [:

(1) A] (A) a contract with anentity providing anapprovedelectronictracking systemasdescribed in section 21a-421n, [;

(2)] (B) a right to exclusively occupy the location Public Act No.

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7181 at which the cultivation facility will be located, which location shall be situated [(A)] (i) in a disproportionately impacted area, [(B)] (ii) on any reservation, as defined in section 47-63, of the Schaghticoke, Paucatuck Eastern Pequot or Golden Hill Paugussett indigenous tribe recognized by this state under subsection (b) of section 47-59a, provided such reservation includes at least ten acres of contiguous land and such land comprised part of such reservation on July 1, 2024, [(C)] (iii) on any parcel of land owned in fee simple by any indigenous tribe recognized by thisstate under subsection(b) ofsection47-59a,providedsuch parcel includes at least ten acres of contiguous land and is located in a municipality that, prior to July 1, 2024, contained any portion of a disproportionately impacted area, [or (D)] (iv) in the case of an exclusively outdoor grow, in a municipality containing any portion of a disproportionately impacted area, provided [(i)] (I) such outdoor grow is conducted on land that such municipality has approved for agricultural or farming uses, and [(ii)] (II) all cultivation complies with the provisions of the regulations adopted, and policies and procedures issued, pursuant to section 21a-421j, as amended by this act, permitting the outdoor cultivation of cannabis, [;

(3)] or (v) at a location within this state outside of a disproportionately impacted area, provided the Social Equity Councilhas verifiedthat suchsocialequity applicant satisfies the criteria established in subdivision (2) of this subsection, (C) any necessary localzoning approvaland building permitsfor thecultivation facility, [;

(4)] (D) a business plan, [;

(5)] (E) a social equity plan and a workforce development plan approved by the [Social Equity Council;

(6)] council, (F) written policies for preventing diversion and misuse of cannabis and sales of cannabis to underage persons, [;] and [(7)] (G) blueprints of the facility and all other security requirements of the department.

(2) (A) Beginning on or after October 1, 2025, a social equity applicant that obtains a final cultivator license pursuant to subdivision (1) of this subsection may conduct all activities authorized in section 21a-420n, as Public Act No.

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7181 amendedby this act, except for manufacturing or extractionofcannabis, at a location within this state outside of a disproportionately impacted area as set forth in subparagraph (B)(v) of subdivision (1) of this subsection, provided the social equity applicant agrees to comply with the provisions of this subdivision and submits a written request for verification of compliance to the Social Equity Council, and the council determines and verifies based on evidence deemed sufficient by the council, that (i) in the event such social equity applicant engages in manufacturing or extraction of cannabis, such applicant shall engage in such manufacturing or extraction exclusively at a location situated in a disproportionately impacted area in accordance with the provisions of this chapter and the regulations adopted, and policies and procedures issued, under this chapter, (ii) at least fifty per cent of the employees employed by such social equity applicant to engage in manufacturing or extraction of cannabis shall reside in a disproportionately impacted area, (iii) of the employees employed by such social equity applicant to engage in any activity other than manufacturing or extraction of cannabis, (I) at least twenty-five per cent of such employees shall reside in a disproportionately impacted area during the first year after such social equity applicant obtains a final cultivator license and commences cultivation activities under such license, (II) at least fifty per cent of such employees shall reside in a disproportionately impacted area during the second year after such social equity applicant obtains a final cultivator license and commences cultivation activities under such license, and (III) at least seventy-five per cent of such employees shall reside in a disproportionately impacted area during each year beginning with the third year after such social equity applicant obtains a final cultivator license and commences cultivation activities under such license, (iv) such social equity applicant shall, at such social equity applicant's expense, (I) make transportation available to each of its employees who resides in a disproportionately impacted area in order to transport such employee from such employee's residence to such employee's place of work and from such employee's place of work to such employee's Public Act No.

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7181 residence, or (II) make advance payment to each of its employees who resides in a disproportionately impacted area for the cost of traveling from such employee's residence to such employee's place of work and from such employee's place of work to such employee's residence, and (v) such social equity applicant shall periodically pay to the Social Equity Council, in a form and manner prescribed by the council, on payment dates established by the council and for deposit in the social equity and innovation account established in section 21a-420f, (I) for the first year after such social equity applicant obtains a final cultivator license and commences cultivation activities under such license, one- half per cent of the licensee's gross revenue derived from such licensee's sales to unaffiliated third parties for such year, (II) for the second year after such social equity applicant obtains a final cultivator license and commences cultivation activities under such license, one per cent of the licensee's gross revenue derived from such licensee's sales to unaffiliated third parties for such year, and (III) for each year beginning with the third year after such social equity applicant obtains a final cultivator license and commences cultivation activities under such license, one and one-half per cent of the licensee's gross revenue derived from such licensee's sales to unaffiliated third parties for such year.

(B) The evidence required to be submitted in a written request for verification as set forth in subparagraph (A) of this subdivision shall be submitted to the Social Equity Council in a form and manner prescribed by the council.

Upon receipt of a written request for verification under subparagraph (A) of this subdivision, the council shall review the request to determine whether the social equity applicant satisfies the criteria set forth in subparagraph (A) of this subdivision.

If the council determines that the social equity applicant does not satisfy such criteria, the council may accept an amended written request for verification or deny such request.

Not later than thirty days after the council notifies the social equity applicant that the council has determined that the applicant does not satisfy the criteria set forth in subparagraph (A) of Public Act No.

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7181 this subdivision, the applicant may appeal from such determination to the Superior Court in accordance with section 4-183.

(C) The Social Equity Council shall identify for the department each social equity applicant that has submitted a written request for verificationassetforthinsubparagraph(A)ofthissubdivision,qualifies as a social equity applicant and should be reviewed by the department forpurposesofawardingafinalcultivatorlicense.Afterreceivingnotice from the council that a provisional licensee has been verified and identified by the council pursuant to this subdivision, the department shall proceed with review and processing of such applicant's final license.

The Commissioner of Consumer Protection shall not issue a final license to a provisional licensee pursuant to this subdivision unless the council has notified the department of the results of such verification.

(D) Each cultivator issued a final license pursuant to this subdivision shall (i) attest that such cultivator satisfies the criteria set forth in subparagraph (A) of this subdivision at each license renewal, and (ii) comply withallrequestsfor informationfromtheSocialEquity Council, and produce copies of all documents necessary for the council to confirm that such cultivator satisfies the criteria set forth in subparagraph (A) of this subdivision, in a form and manner prescribed by the council and not later than two business days after such request.

In the event the council determines and verifies that the licensee does not satisfy the criteria set forth in subparagraph (A) of this subdivision, the council shall, after a cure period established by the council, provide to the department a detailed report outlining the basis for the council's determination of noncompliance and any evidence supporting such determination.

The council shall concurrently produce a copy of such report to the applicable licensee.

Upon receipt of the noncompliance report issued by the council, the department shall schedule a hearing on such matter within forty-five days.

Public Act No.

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7181 (E) Prior to engaging in any manufacturing or extraction of cannabis, a cultivator licensed pursuant to this subdivision shall apply to the department, in a form and manner prescribed by the commissioner, for an off-site manufacturing endorsement to be issued on or after October 1, 2025.

The department may require the cultivator to submit to an inspection of the cultivator's facility prior to issuing such endorsement to ensure that such facility satisfies the provisions of this chapter and the regulations adopted, and policies and procedures issued, under this chapter.

(F) On and after July 1, 2026, any person that holds a final cultivator license issued pursuant to this subdivision shall (i) weigh all cannabis, excluding the leaves or stem of such plant, harvested at such facility not later than twenty-four hours after cutting or trimming such plant and (I) record such weight in an approved electronic tracking system as set forth in section 21a-421n, (II) annually reserve at least eighty per cent of allcannabisweighedpursuanttosubparagraph(F)(i)ofthissubdivision for the purpose of manufacturing or extraction of such cannabis into a cannabis product or cannabis concentrate, and (III) annually sell not more than twenty per cent of all cannabis harvested at such facility, based on the weight recorded pursuant to subparagraph (F)(i) of this subdivision, for distribution as cannabis flower, and (ii) upon each renewal of such final cultivator license, attest that during the then preceding calendar year, such cultivator (I) caused at least eighty per cent of all cannabis weighed and recorded pursuant to subparagraph (F)(i) of this subdivision to be used for the purpose of manufacturing or extraction of such cannabis into a cannabis product or cannabis concentrate, and (II) sold not more than twenty per cent of all cannabis harvested at such facility, based on the weight recorded pursuant to subparagraph (F)(i) of this subdivision, for distribution as cannabis flower.

(c) If the department grants a provisional cultivator license to any Public Act No.

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7181 person under subsection (a) of this section, such person may apply to the department, in a form and manner prescribed by the commissioner, to convert theprovisionalcultivator license toamicro-cultivator license, without paying any conversion fee or additional provisional license fee, provided such person has not created more than two equity joint ventures that have obtained final licensure.

As part of such application, such person shall attest that such person shall:

(1) Surrender such provisional cultivator license effective immediately upon the department issuing the micro-cultivator license;

(2) Be entitled to create two equity joint ventures, which shall include anyequityjointventurecreatedpriortoconversiontoamicro-cultivator license;