The High Cost of Cannabis Licenses in Connecticut

Getting into the medical cannabis industry as a license holder in Connecticut hasn’t been cheap, and based on the state’s adult-use legalization bill (CT SB 1201), which the governor signed into law on June 22, 2021, adult-use license holder fees and financial requirements will be equally expensive. 

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

Connecticut Adult-Use Cannabis License Fees for Businesses

Based on the language in CT SB 1201, there will be 9 types of adult-use licenses: 

• Retailer (sells adult-use cannabis only)
• Hybrid retailer (sells adult-use and medical cannabis)
• Cultivator (growing 15,000 sq. ft. or more)
• Micro-cultivator (growing 2,000-10,000 sq. ft.)
• Product manufacturer
• Food and beverage manufacturer
• Product packager
• Delivery service
• Transporter

Following are licensing fees to participate in Connecticut’s adult-use cannabis market as stated in CT SB 1201 for existing license holders and new license holders who will enter the license lottery: 

Existing Dispensaries Adding Adult-Use to Become Hybrid Retailers

• $1 million fee which can be reduced to $500,000 if they create one “equity joint venture” for an existing medical dispensary facility to also sell adult-use as a hybrid retailer

Existing Producers (Growers/Processors)

• $3 million fee which can be reduced to $1.5 million if they create two “equity join ventures” which cannot be cultivators
• $500,000 fee paid to the social equity account (or provide 5% of their grow space to a social equity applicant who they mentor for five years, cover all of the social equity applicant’s business costs, and give 100% of the profits to the social equity applicant)

New Retailer or Hybrid Retailer: 50% lower for social equity applicants

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

New Cultivator: 50% lower for social equity applicants

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

New Micro-Cultivator: 50% lower for social equity applicants

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

New Product Manufacturer: 50% lower for social equity applicants

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

New Food and Beverage Manufacturer: 50% lower for social equity applicants

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

New Product Packager: 50% lower for social equity applicants

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

New Delivery Service: 50% lower for social equity applicants

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

New Transporter: 50% lower for social equity applicants

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

Connecticut Adult-Use Cannabis License Fees for Individuals

According to CT SB 1201, following are fees individuals participating in the state’s adult-use market will be required to pay: 

New Backer (For Individuals)

• $100 license fee for a backer or key employee

New Staff (For Individuals)

• $50 employee registration fee

Connecticut Medical Cannabis License Fees for Businesses

Following are cannabis license fees for businesses to operate in Connecticut’s established medical cannabis market:

Producer: Produces marijuana for dispensaries.

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

Dispensary Facility: Dispenses marijuana to patients.

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

Brand: A marijuana product produced by a producer.

• $25 application fee
• No annual registration renewal fee

Connecticut Medical Cannabis License Fees for Individuals

Following are cannabis license fees for individuals to participate in Connecticut’s established medical cannabis market:

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

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

Production Facility Employee: A person who is employed by a producer or has access to the production facility (such as an independent contractor).

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

Dispensary Facility Backer: A person who has a financial interest in a dispensary facility.

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

Dispensary Facility Employee: A person who is employed by a dispensary facility or has access to a dispensary facility (such as an independent contractor).

• $50 application fee
• $50 annual registration renewal fee

Dispensary Technician: A person who dispenses marijuana to at a dispensary facility to Patients.

• $50 application fee
• $50 annual registration renewal fee

Dispensary: A person who is qualified to acquire, possess, distribute, and dispense marijuana at a dispensary facility to patients (must have an active pharmacist license in good standing).

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

Physician: A person who prescribes medical marijuana to patients.

• No application fee
• No annual registration renewal fee

Patient: A person who purchases medical marijuana from dispensary facilities.

• $100 registration fee
• No annual registration renewal fee

Primary Caregiver: A person who purchases medical marijuana for a patient from a dispensary facility.

• $25 registration fee
• No annual registration renewal fee

Connecticut Medical Cannabis Licenses by the Numbers

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

Year 1 License Fees

In the first year, when a business or individual applies for (or registers for in the case of patients) a medical cannabis license in Connecticut, they’ll incur fees anywhere from $25 to $100,000 as shown in the chart below.

Years 2+ License Fees

After the first year that a business or individual participates in the Connecticut licensed cannabis economy, the fee to participate might drop or stay the same, ranging anywhere from $0 to $75,000 as shown in the chart below.

Comparing License Fees

Clearly, the barrier to entry for producers and dispensary facilities to enter Connecticut’s cannabis industry is big. It will be interesting to watch how the state’s adult-use market progresses after it launches. 

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

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