Adult-Use Cannabis Sales: Expectations for Next Year – NBC Connecticut

– In its first year of recreational marijuana sales, Connecticut has seen a growth from $5 million in January to over $15 million by November. Medical marijuana sales also increased from $8 million to over $10 million in the same period.
– The Social Equity Council, led by executive director Ginne-Rae Clay, was set up to ensure social equity in the cannabis industry. They have reinvested into communities, with $6 million allocated to programs such as after-school activities and drug prevention efforts in areas disproportionately impacted by marijuana laws.
– To encourage local entrepreneurship in the cannabis industry and avoid domination by large hedge funds, a loan fund was established to provide working capital for approved social equity cannabis supply chain applicants at low interest rates. The initial fund is $10 million, with plans to increase to $30 million.

Recreational and Medical Marijuana Sales Boost in Connecticut

In one year, recreational marijuana sales have surged in Connecticut, starting from around $5 million in January to over $15 million by November. Over the same period, medical marijuana sales rose about 20% from $8 million to over $10 million.

Impacts and Protections of Connecticut’s Marijuana Sales

Ginne-Rae Clay, the executive director of the Social Equity Council, reveals how social equity measures have been implemented in the marijuana industry. These measures are set up to monitor businesses and ensure fair practices.

Innovating for Social Equity

Clay shares that the Council has learned from their first year of operation and made changes to the criteria for social equity applicants. They’ve also managed to assist the state of Maryland by sharing their best practices.

Reinvesting in Communities

Reinvestment in the community has been a priority from the start. Clay mentions how the Council launched a pilot program, investing $6 million into several communities such as Stamford, Bridgeport, and Hartford. The funds were primarily directed towards programs that the council believed would address immediate community needs.

Supporting Local Entrepreneurs

The Social Equity Council is also concerned about potential domination of the market by hedge fund money. They are committed to ensuring that communities and local entrepreneurs can participate in the market. Clay notes that they have had successful conversations with communities and social equity applicants, leading to the opening of new businesses, and more applicants moving forward to get licenses.

Overcoming Entry Barriers

Addressing initial entry barriers like the hefty $3 million cultivation license fee, the Council set up the Canna-business Revolving Loan Fund for approved social equity cannabis supply chain applicants. This fund provides a low-interest loan of between 6 and 9% to help new companies establish themselves.

Improving the Application Process

In the new year, the Council plans to enhance the application process for the lottery. They aim to better educate potential applicants in disproportionately impacted areas on how to apply. Clay stated that the first round of the lottery offered valuable lessons and they are now focusing on reinvesting in communities.

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