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Everything to Know about Connecticut Cannabis Legalization

Everything to Know about Connecticut Cannabis Legalization

Connecticut cannabis legalization starts July 1st

Connecticut cannabis legalization has been signed into law by Governor Ned Lamont, setting the date for the law to take effect on July 1, 2021.

Connecticut joins 19 other states plus the District of Columbia in legalizing adult use recreational cannabis after the state legislature passed multiple revised versions of the Connecticut cannabis legalization bill, finally sitting at over 300 pages.

While Connecticut will follow in the steps of other states in regards to some popular aspects of cannabis legalization, such as expungement of criminal records for cannabis and setting up enforcement for intoxicated driving, they are also adding some of their own changes.

Cannabis may be officially legal in Connecticut starting July 1st, but that doesn’t mean dispensaries will be open by then, or that consumers will even be able to purchase cannabis legally. Here’s everything to know about what actually changes when Connecticut cannabis legalization takes effect on July 1st.

When Connecticut cannabis legalization takes effect

Cannabis legalization takes effect in Connecticut on July 1st, 2021. This means that all rules and regulations proposed in the legislation signed by the governor will be official on that date.

Cannabis possession limits

The new law will allow and individual to possess up to 1.5 ounces on their person, and up to 5 ounces in a locked container, glove box or trunk of a car.

Home growing

Home growing is permitted in the Connecticut cannabis legalization bill, however it will not be allowed immediately. The bill says anyone 21 and older can grow up to six plants in their home (three mature and three immature plants) as of July 1, 2023. Households can grow no more than 12 cannabis plants at any given time.

In other words, while cannabis use and possession will be legal in 2021, home growing will not be allowed until 2023.

Cannabis consumption

Smoking cannabis would generally not be allowed in places where cigarette smoke is already prohibited, including restaurants, health care facilities, state or municipal buildings and most workplaces.

The use of cannabis is banned in state parks, with $250 fines for offenders. Hotels are also required to prohibit guests from smoking cannabis, but they cannot ban possession and use of other forms of the drug in nonpublic areas. Cannabis use is illegal in motor vehicles by both drivers and passengers as well.

When dispensaries will open

The Connecticut cannabis legalization bill does not include a specific date in which dispensaries will be permitted to open. Legislators have said that May 2022 is the current deadline for allowing dispensaries to being operations. However due to the legislation being delayed and approved late in the legislative session, this deadline could end up being pushed further.

Connecticut cannabis business licensing

Business licensing for dispensaries or grow operations will be given out in a lottery system. Fees to enter the lottery for a license range from $250 for a food and beverage manufacturer or delivery license to $1,000 for a cultivator license.

If an applicant is selected, additional licensing fees must be paid. Half of the licenses would be reserved for “social equity applicants” that come from economically disadvantaged areas that have been most harmed by the war on drugs. Those applicants would pay reduced licensing fees.

Businesses involved in the state’s existing medical marijuana program could pay to enter the recreational market, with fees ranging between $1 million and $3 million.

Cannabis taxes

Connecticut expects to pull in over $26 million in tax revenue in its first full year of operation, which will start July 1, 2022 and end June 30, 2023. Currently cannabis sales will be subject to the state sales tax of 6.35%, with additional state and municipal cannabis taxes that have yet to be finalized.

The state anticipates over $76 million in revenue by the end of 2026.

Resolving prior cannabis convictions

Who is eligible to have a prior conviction expunged depends on the specific charge and when the individual was charged. People charged with possession of 4 ounces or less of cannabis before Jan. 1, 2000, or from Oct. 1, 2015 through June 30, 2021, can petition a court beginning July 1, 2022, to have their criminal record erased.

Those charged with that same offense from Jan. 1, 2000, through Sept. 30, 2015, will have their records automatically erased on Jan. 1, 2023. More serious marijuana charges would not be eligible for erasure.

Conclusion

Connecticut cannabis legalization follows in the footsteps of other legal states when it comes to some of their regulations, while making their own rules in regards to other aspects of the industry. The final bill approved by the governor went through numerous revisions, which is can be seen as a sign that the legislators does not have a hardened, solid plan for implementing a legal industry.

Setting a deadline for 2023 will allow the state to thoroughly plan and establish an adult use cannabis industry, giving more time to focus on the application and licensing process, one of the most common roadblocks that cause issues in a new cannabis industry. Issues will likely arise when individuals can possess cannabis, but cannot grow it themselves or buy it from a licensed dispensary for two years. With no access to legal cannabis many will resort to the black market to obtain their cannabis, which is completely unregulated, and potentially harmful to consumers.

The District of Columbia resolved this same issue by creating a gift/donation grey market for cannabis. Due to a rider in the District’s legalization bill, no government funds can be used to establish a recreational cannabis industry, leaving consumers to “gift” cannabis to each other in exchange for a “donation”, skirting around the legal language of the bill.

It is likely that we see a similar trend develop over the next year in Connecticut as consumers seek out reliable cannabis without access to legal dispensaries.

Weedmaps joins Nasdaq with $579 million infusion

Weedmaps joins Nasdaq with $579 million infusion

Weedmaps has been listed on thr NASDAQ

Cannabis advertising platform Weedmaps started trading on the Nasdaq on Wednesday in the wake of the completion of its merger with special purpose acquisition company Silver Spike Acquisition Corp.

The transaction brought California-based Weedmaps, a leading but sometimes controversial online marketplace for cannabis consumers and businesses, $579 million in gross proceeds, according to a news release.

In connection with the closing of the deal, Silver Spike changed its name to WM Technology. Its Nasdaq ticker symbol is MAPS.

Shares were up 9% Wednesday at more than $20 each.

The transaction was approved unanimously by Silver Spike’s board of directors. It also was approved by stockholders at a special meeting last week.

Chris Beals, Weedmaps chief executive officer, said in a release that the merger will enable the company to accelerate its growth as it benefits from ongoing legalization across the country.

For the year ended Dec. 31, 2020, the company generated net income of $39 million on $162 million in revenue.

Weedmaps, which has been operating as WM Holding Co., has run into issues with regulators in recent years.

In early 2018, California regulators ordered the company to stop carrying advertising from illegal cannabis retailers.

Weedmaps also was the focus of a federal investigation at least partially tied to its relationships with licensed and apparently illicit California companies.

California offers $100 million to rescue struggling legal marijuana industry

California offers $100 million to rescue struggling legal marijuana industry

California legal marijuana industry is getting $100 million from government for support

The California Legislature on Monday approved a $100-million plan to bolster California’s legal marijuana industry, which continues to struggle to compete with the large illicit pot market nearly five years after voters approved sales for recreational use.

Los Angeles will be the biggest beneficiary of the money, which was proposed by Gov. Gavin Newsom to be provided as grants to cities and counties to help cannabis businesses transition from provisional to regular licenses.

“California voters approved Proposition 64 five years ago and entrusted the Legislature with creating a legal, well-regulated cannabis market,” said Assemblyman Phil Ting (D-San Francisco), the chairman of the Assembly Budget Committee. “We have yet to reach that goal.”

Many legal marijuana growers, retailers and manufacturers have struggled to make the transition from a provisional, temporary license to a permanent one renewed on an annual basis — a process that requires a costly, complicated and time-consuming review of the negative environmental effects involved in a business and a plan for reducing those harms.

As a result, about 82% of the state’s cannabis licensees still held provisional licenses as of April, according to the governor’s office.

The funds, including $22 million earmarked for L.A., would help cities hire experts and staff to assist legal marijuana businesses in completing the environmental studies and transitioning the licenses to “help legitimate businesses succeed,” Ting said.

The grant program is endorsed by Los Angeles Mayor Eric Garcetti, who said in a letter to legislators that the money is “essential in supporting a well-regulated, equitable, and sustainable cannabis market.”

Separately, the governor wants to give legal marijuana businesses a six-month extension beyond a Jan. 1 deadline to transition from provisional licenses by complying with mandates of the California Environmental Quality Act. That extension, which faces opposition for delaying promised environmental safeguards, was not included in the state budget bill approved Monday and is still being negotiated with lawmakers.

The governor’s proposal to extend provisional licenses has drawn objections from a coalition of seven environmental groups including Sierra Club California, Defenders of Wildlife and the Nature Conservancy.

They said in a letter to Newsom that the proposal allowing the extension of provisional licenses and interim alternatives to CEQA rules goes against what voters were promised and is “wholly inadequate to protect local communities and the environment.”

 
Nevada Governor Signs Multiple Marijuana Reform Bills

Nevada Governor Signs Multiple Marijuana Reform Bills

nevada governor passed more cannabis reform bills last week

Carson City, NV: Democrat Gov. Steve Sisolak has signed multiple marijuana reform bills into law.

On Monday, the Governor signed Assembly Bill 341. The new law, which takes effect on October 1, 2021, provides regulations for the establishment of on-site “cannabis consumption lounges” for those ages 21 and older. Regulators must still determine the specific types of cannabis products that are “appropriate for consumption” in the facilities.

Alaska and Colorado have previously enacted legislation explicitly permitting social consumption sites for cannabis, and New York’s nascent adult-use law also regulates on-site facilities. Similar legislation is currently pending in California.

Late last week, the Governor signed Assembly Bill 400 into law. It amends the state’s traffic safety statutes so that the operation of a motor vehicle with trace amounts of either THC or its metabolite is no longer a per se violation of law. The new law takes effect on October 1, 2021.

Under the state’s existing traffic safety laws, it is illegal to operate a motor vehicle with low levels of either THC or the 11-hydroxy-THC metabolites in one’s blood or urine, even absent any further evidence of psychomotor impairment. The revised measure eliminates the application of those limits in certain circumstances.

NORML has consistently opposed the imposition of THC per se limits, opining that such thresholds are not evidence-based and that they may lead to the criminal prosecution of people who consumed cannabis several days previously but are no longer under its influence.

Also on Friday, the Governor signed Assembly Bill 158, which revises first-time penalties imposed upon minors who possess small quantities of cannabis. It reduces existing penalties — which include up to six-months in jail and a $1,000 fine — to community service. The measure also requires courts to automatically seal records for these offenses if the offender completes the term of their sentence. The new law takes effect on July 1, 2021.

Cannabis growing facility proposed for former New York prison

Cannabis growing facility proposed for former New York prison

A New York prison that closed in 2011 may be repurposed for cannabis and hemp production.

When Mid-Hudson Correctional Facility closed in 2011, it freed up 740 acres of prime property that its host community, Warwick, readily bought for $3.1 million.

During the past decade, the town has actively worked to repurpose the property and has seen positive results from its efforts. With Covid-19 fading and the state reopening, business is again percolating on the former prison property, now known as Wickham Woodlands.

Along with a new Warwick Valley Office and Technology Corporate Park on the campus, where the town’s business accelerator is working with three-startup companies, business is growing along its winding State School Road: a former administration building has become the trendy Drowned Lands Brewery; the prison’s old guard tower is now the gateway to Hudson Sports Complex; and the land surrounding Wickham Lake, which inmates could view from behind barbed wire fencing, has been turned into a town park.

The Warwick Valley’s fertile landscape also offers ample opportunities for those who grow hemp and its soon-to-be-street legal counterpart, marijuana, and is seeing that business beginning to boom within Wickham Woods’ borders.

When the United States eased federal regulations on growing hemp in 2018, the floodgates of products produced from hemp’s byproduct, cannabidiol — better known to the public as CBD — started hitting the shelves.

Medical marijuana has been legal since 2016, and the state also relaxed its regulations for CBD-infused food and beverages. In April, 2021, the New York state Legislature approved the legalization of recreational marijuana, which has opened a whole new revenue stream for cultivators.

Those measures have propelled Wickham Woods into the spotlight for those with a vested interest in both legal hemp/cannabis cultivation and CBD production.

Chicago-based Fiorello Pharmaceuticals/Green Thumb Industries is poised to build a 100,000-square-foot cannabis growing and processing facility on 40 acres in the technology park.

The company received approval in May from the Orange County Industrial Development Agency for subsidies that include a sales and tax use exemption, mortgage recording tax exemption and a 15-year payment in lieu of taxes, as well as approval for the issuance of taxable revenue bonds.

Biden’s proposed budget keeps a block on recreational weed sales in Washington, DC

Biden’s proposed budget keeps a block on recreational weed sales in Washington, DC

A rider that has effectively blocked recreational cannabis for years in Washington, DC appears in President Joe Biden’s proposed 2022 budget, which may keep weed on the back burner yet again.

Even though residents of DC voted to legalize possession of recreational marijuana in 2014, the measure has been in limbo since then, derailed by a rider to DC’s appropriations bill first introduced by Rep. Andy Harris (R-MD), that prohibits the District from spending its local funds on commercialization of recreational cannabis, such as dispensaries. And Biden’s proposed 2022 budget includes the rider’s language yet again.

Del. Eleanor Holmes Norton (D-DC) said in a statement she was having a hard time reconciling the Biden administration’s support for DC statehood with its budget that would prevent DC from commercializing recreational cannabis. “With Democrats controlling the White House, House and Senate, we have the best opportunity in over a decade to enact a D.C. appropriations bill that does not contain any anti-home-rule riders,” Norton said.

Asked if the president plans to remove the language from the proposed budget, a Biden administration official said in an email to The Verge that the president “continues to strongly support DC statehood, under which the people of DC could make policy choices just like other states.”

DC has long had a so-called “gray market” for marijuana, with medical cannabis legal, and recreational cannabis technically legal, but unable to be taxed or regulated because of the Harris rider. DC voters first approved medical marijuana in 1998, but it too was initially blocked, by the Barr Amendment, legislation that Congress finally overturned in 2009.

Biden, once a leading voice in the “War on Drugs” of the 1980s and ’90s, said during the 2020 presidential campaign that it was “time to decriminalize” marijuana use, but so far during his administration there’s been little action to do so at the federal level. Dozens of US states have legalized medical marijuana, recreational marijuana, or both, and public opinion supporting legal weed is at an all-time high. And Senate Majority Leader Chuck Schumer (D-NY), and Sens. Cory Booker (D-NJ) and Ron Wyden (D-OR), have said they would work together to advance comprehensive cannabis reform.

In February, DC Mayor Muriel Bowser proposed legislation “to create an equitable adult-use cannabis program” in DC, which would impose a 17 percent tax on cannabis sales. But it’s unlikely to take effect if the rider remains in Biden’s proposed 2022 budget.