Yesterday, Connecticut Governor Ned Lamont passed laws aimed at creating a recreational (“adult use”) cannabis market in the state. The governor’s proposal would create a licensing process for cultivators, retailers, micro-cultivators, product manufacturers, food and beverage manufacturers, product packers, and delivery services. The sale would begin in May 2022, with expected government revenues of $ 33.6 million in fiscal 2023 and $ 97 million through fiscal 2026.
In part, this proposal is in response to legalization of adult use in nearby states such as Massachusetts and New Jersey, with New York nearby. “The Massachusetts pharmacies advertise extensively here in Connecticut,” Lamont said, “and instead of turning this market over to the non-state, or worse, the unregulated underground market, our budget is to legalize recreational marijuana.” This move is also designed to address the revenue shortfalls caused by the COVID-19 pandemic and is part of a series of proposals from the governor, including sports games and new traffic-related fees, designed to increase the state’s revenue without recourse to excessive tax increases. If enacted, the revenue from taxes on the adult entertainment industry would be used to support needy communities in the state. The proposal would also allow cities and towns to increase revenue through a 3% local excise tax on sales.
With regard to the next steps, the governor’s proposal will be presented to the state parliament. Connecticut House spokesman Matt Ritter pointed out that legalizing adult use will be a “priority” for House Democrats in 2021. However, he warned that he believed the bill had a “50/50” chance of passing legislation failing in 2021, advocates could also pursue legalization of adult use through an electoral question. However, legislative enactment offers the industry the best means of legalization in the near future, as the voting process in Connecticut can take more than four years.