Connecticut Lawmakers Advance Bill Creating Pathway for Hemp Growers to Enter Cannabis Industry

The Connecticut Legislature’s General Law Committee on Tuesday approved a measure to allow hemp growers to apply for state cultivator or micro-cultivator licenses which would allow them to sell cannabis in the state’s licensed retailers, CT Insider reports. Under the proposal, growers would pay $12 per square foot of growing space. Micro-cultivation sites would be capped at 10,000 square feet.

If approved by lawmakers and signed into law by the governor, hemp producers could apply for the licenses between October 1 and December 31, giving the Department of Consumer Protection time to prepare for the application process.

During a hearing on the proposal, State Rep. Mike D’Agostino (D) said the state’s adult-use licensing fees – between $1 million and $3 million – priced hemp farmers out of the industry.

“We’re trying to be mindful of a new entrant into the market; still having plenty of square-foot space for other applicants who are out there as part of the regular (application) process; making sure we’re not flooding the market but also still adding to the existing market. That was also based on input from the hemp farmers in terms of, frankly, what they could meet anyway.” — D’Agostino via CT Insider

At one point, there were around 200 hemp growers licensed in the state, but that number has been reduced to fewer than 40 due to reduced demand for, and an oversupply of, hemp-based products, such as CBD, the report says.

The measure moves next to the House.