Cannabis Business in Connecticut

Connecticut's cannabis industry is comprised of medical and adult-use marijuana, CBD, and hemp. As of 2020, around 20.5% of Connecticut residents used cannabis. The state saw nearly $274 million in medical and adult-use cannabis sales in 2023.

Cannabis Business Licensing in Connecticut

The Connecticut Department of Consumer Protection (DCP) is responsible for regulating medical and adult-use cannabis businesses. All cannabis businesses must obtain the appropriate licenses from the DCP before beginning operations.

The Connecticut Department of Agriculture (DOAG) is responsible for the state's hemp program. Businesses and individuals looking to grow or process hemp in Connecticut must obtain the appropriate licenses from the DOAG.

Types of Cannabis Business Licenses

The DCP issues various types of cannabis business licenses and registrations. You may find an existing cannabis business for sale that you can purchase. Here are the different types of licenses:

• Growing
  • Cultivator: Grows cannabis for medical and adult use (requires at least 15,000 square feet of grow space)
  • Micro-cultivator: Grows cannabis for medical and adult use (between 2,000 and 10,000 square feet of grow space with potential expansion)
  • Producer: Grows cannabis for medical use only (no new licenses being issued currently)
• Manufacturing
  • Product Manufacturer: Performs extraction, chemical synthesis, and permitted manufacturing activities
  • Food and Beverage Manufacturer: Incorporates cannabis into food or beverages for human consumption
  • Product Packager: Labels and packages cannabis products
  • Infused Beverage Manufacturer: Manufactures non-alcoholic, THC-infused beverages
• Sales
  • Retailer: Sells cannabis to adult-use consumers only
  • Hybrid Retailer: Sells cannabis to adult-use consumers and medical marijuana patients and caregivers
  • Dispensary Facility: Sells cannabis to qualifying patients and caregivers for medical use only (no new licenses being issued currently)
  • Infused Beverage Sales: Sells THC-infused beverages
• Delivery and Transportation
  • Delivery Service: Delivers cannabis from establishments to consumers, patients, and caregivers
  • Transporter: Transports cannabis between establishments, laboratories, and research programs
• Laboratories
  • Testing Laboratory: Tests and analyzes cannabis
• Individual Licenses and Registrations
  • Backer: Has a financial interest in and owns at least 5% of a cannabis business or participates in the control, management, or operation of a cannabis business
  • Key Employee: Holds a specific managerial position within a cannabis business
  • Employee: Any person employed by a cannabis business or who has access to the establishment, including board members of a company with an ownership interest in a cannabis business
• Labor Organization Approval
  • Bona Fide Labor Organizations: Required for provisional cannabis establishment licensees to enter into a labor peace agreement

Hemp and CBD in Connecticut

Hemp cultivation and processing is legal in Connecticut. Connecticut's hemp program adheres to the 2018 Farm Bill, which removed hemp from the list of controlled substances. Hemp must contain less than 0.3% THC to be considered legal. Individuals and businesses interested in selling hemp-derived CBD products do not require a license. However, a license is required to process or manufacture hemp into CBD before selling it.

Hemp-derived CBD oil is legal in Connecticut, as long as it contains less than 0.3% THC. The sale and possession of marijuana-derived CBD is illegal for recreational purposes but can be used by patients registered with the state's medical marijuana program. There is no possession limit for hemp-derived CBD. However, medical marijuana cardholders are limited to purchasing 2.5 ounces of cannabis-based CBD products within a 30-day period. It is illegal to advertise or market hemp-derived CBD products as having medicinal or mental benefits.

Connecticut's cannabis industry is growing. Potential investors and entrepreneurs can find cannabis businesses for sale as the market expands. The Social Equity Council offers technical assistance webinars to support potential applicants in the licensing process. Recordings of these webinars can be found on the Social Equity Council's YouTube page.