New CT marijuana proposal favors poor residents for retail licenses

Connecticut--Medical marijuana. Photo by Brad Horrigan/New Haven Register-03.05.11. Connecticut--Medical marijuana. Photo by Brad Horrigan/New Haven Register-03.05.11. Image 1 of / 20 Caption Close New CT marijuana proposal favors poor residents for retail licenses 1 / 20 Back to Gallery

HARTFORD — Proponents of recreational cannabis want to use legalization as a tool for lifting people out of poverty, a new draft of proposed legislation shows.

A revised version of the General Law Committee’s cannabis legislation would allow people who have lived for five years in impoverished census tracks with high employment to be among the first to obtain licenses to own cannabis retailers and get those licenses at a discounted rate.

This is a new addition to the legislature’s definition of an “equity applicant” for a cannabis retailer license. The change is likely to apply to residents of urban areas, but also could apply to some poor rural parts of the state.

The revision will pair with legislation passed out of the Finance, Revenue and Bonding Committee that directs some of the revenue collected through the taxation of recreational pot to be sent to these same needy census tracks.

“We are going to look not at the city level, but at actual street, line-by-line, neighborhood-by-neighborhood data, census track information,” said Rep. Michael D’Agostino, a Hamden Democrat who chairs the General Law Committee and spearheaded the revision of the legislation. “Where is there high unemployment? Where is there high poverty? These are the areas that have been underserved and that’s anywhere in the state — cities or rural communities, black or white, we don’t care.”

The revised equity applicant definition is a further demonstration of Democrats’ desire to address the impact of the War on Drugs through the legalization of recreational marijuana. Like in previous versions of the bill, people who were arrested or convicted of the possession, sale or cultivation of marijuana or who have a parent or child who was arrested or convicted of the same will also be considered “equity applicant.”

The revised version of the bill, made public on Tuesday, also includes a new provision that allows an equity applicant to have a backer who owns 49 percent of their business.

“That lets you as a new applicant — and you don’t have the start-up costs — you can get a big partner behind you to get off the ground,” said D’Agostino. “We’re trying to address the issue they had in Massachusetts where nobody applied because of the start-up costs.”

The new draft also includes language which requires retailers to have an electronic “seed-to-sale” tracking system. Economists who study legal marijuana markets say these systems are important so states have the data to adjust their tax policies or regulatory structures in the future.

“The question is does that impose too high of a (cost) burden on new retailers?” D’Agostino said.

D’Agostino said he believes this new General Law bill will win more supporters because it amps up the legislature commitment to addressing equity and poverty, while increasing the regulation of the drug.

But the bill is not the final legislation on recreational marijuana that the House and Senate would vote on. This bill still needs to be combined with proposed legislation from the Finance Committee detailing the tax structure and state uses of recreational cannabis revenue and with legislation from the Judiciary Committee regarding the criminal records of those previously convicted on cannabis-related charges.

“I hope we will have a conference in a week where we can get together and do it,” said D’Agostino. “It shouldn’t be too hard to bolt them all together and eliminate duplication.”

This revised General Law bill still does not permit Connecticut residents to grow their own cannabis, but like previous versions, it says grow-your-own should be studied. That provision may change before final passage, however.

“We’re still talking about that,” said D’Agostino. “I personally would like to see it at least for medical patients, but it’s one of those issues we really need to discuss it among those members to see if these is enough support to include it.”

The revised bill maintains the same structure of cannabis cultivators, manufacturers and retailers overseen by a Cannabis Commission and the state Department of Consumer Protection. The legislation makes many technical changes to spell out regulations that the cannabis industry must comply with — for example, rules about how cannabis products must be packaged. The legislation also strengthens the ability of the Department of Consumer Protection to enforce those regulations.

Only adults 21 years and older will be allowed to purchase recreational cannabis. Purchases will be limited to one ounce per transaction.

emunson@hearstmediact.com; Twitter: @emiliemunson