Sec.21a-408-20. Producer selection

(a) The department shall publish on its Internet web site, and in such other places as the department deems appropriate, a notice of open applications for producer licenses. Such notice shall include, but not be limited to:

(1) The maximum number of producer licenses to be awarded; and

(2) The criteria that shall be considered in awarding the producer license.

(b) Following the deadline for receipt of applications, the department shall evaluate each complete and timely submitted application and award producer licenses on a competitive basis based on the criteria set out in the notice for applications. In the event the commissioner determines that there are an insufficient number of qualified applicants to award all of the producer licenses that the commissioner has determined are desirable, the department may republish, in accordance with this section, a notice of open applications for producer licenses.

(c) The department shall consider, but is not limited to, the following criteria in evaluating producer license applications:

(1) The location for the proposed production facility to be owned or leased and operated by the producer including, but not limited to:

(A) Whether the proximity of the proposed production facility will have a detrimental effect upon any place used primarily for religious worship, public or private school, convent, charitable institution, whether supported by private or public funds, hospital or veterans' home or any camp or military establishment;

(B) Whether the number of production facilities in the locality is such that the granting of an additional license is detrimental to the public interest. In reaching a conclusion in this respect, the commissioner may consider the population of, the number of like licenses and number of all licenses existent in, the particular town and the immediate neighborhood concerned and the effect that a new license may have on such town or neighborhood or on like licenses existent in such town or neighborhood; and

(C) If the production facility is leased, whether the lease agreement limits access to the facility by the owner of the facility, or a representative or agent of the owner, except on conditions permitted by the Act and section 21a-408-55 of the Regulations of Connecticut State Agencies;

(2) The character and fitness of the producer, producer backers, and any other person who may have control or influence over the producer or production facility;

(3) Detailed information regarding the applicant’s financial position, indicating all assets, liabilities, income and net worth, to demonstrate the financial capacity of the applicant to build and operate a production facility;

(4) The applicant’s ability to maintain adequate control against the diversion, theft and loss of marijuana produced or manufactured at the production facility;

(5) The applicant’s ability to produce pharmaceutical grade marijuana for palliative use in a secure, indoor facility;

(6) The applicant’s expertise in agriculture and other production techniques required to produce pharmaceutical grade marijuana or to manufacture marijuana products;

(7) Proof acceptable to the commissioner that the applicant can establish and maintain an escrow account in a financial institution in Connecticut, a letter of credit drawn from a financial institution in Connecticut or a surety bond issued by a surety company licensed by the state of Connecticut Department of Insurance and of a capacity and rating acceptable to the commissioner, in the secured amount of two million dollars. Any escrow account agreement, letter of credit or surety bond shall adhere to the terms and conditions set forth by the commissioner in the request for applications. The establishment of such escrow account, letter of credit or surety bond shall be required prior to issuance of a producer license;

(8) The extent to which the applicant or any of the applicant’s producer backers have a financial interest in another licensee, registrant or applicant under the Act or sections 21a-408-1 to 21a-408-72 of the Regulations of Connecticut State Agencies; and

(9) Any other factors provided by Connecticut state or federal statute or Connecticut or federal regulation that are not inconsistent with the Act or sections 21a-408-1 to 21a-408-72, inclusive, of the Regulations of Connecticut State Agencies and that warrant consideration.

(d) The commissioner shall have the right to amend the notice of open applications prior to the deadline for submitting an application. The commissioner shall publish such amended notice in the same manner as the original notice of open applications.

(e) The commissioner shall have the right to cancel a notice of open applications prior to the award of a producer license.

(f) The commissioner may disqualify any applicant who:

(1) Submits an incomplete, false, inaccurate or misleading application;

(2) Fails to submit an application by the published deadline; or

(3) Fails to pay all applicable fees.

(g) The decision of the commissioner not to award a producer license to an applicant shall be final.

(h) If an applicant has been awarded a producer license and has not commenced operation of a production facility within 180 days of being notified of the producer license award, the commissioner may, in the commissioner’s discretion, rescind such producer license unless such delay was caused by force majeure. A producer shall be deemed to have commenced operation if the production facility is fully constructed and capable of operating in accordance with the producer’s approved application. In the event a producer license is rescinded pursuant to this subsection, the commissioner may award a producer license by selecting among the qualified applicants who applied for the producer license subject to rescission.

(Effective September 6, 2013; Amended August 28, 2018)