Who will be responsible for overseeing the Cannabis Market on Mashantucket Pequot land?
The Tribe will have a Cannabis Regulatory Commission and will designate a Compliance Manager to be responsible for managing compliance issues and reporting issues to DCP. Unlike state licensees, the tribal enterprise may operate a consumption lounge.
The Department of Consumer Protection will not have direct jurisdiction to regulate the tribal enterprises but will work closely with the Tribe and any Tribe-regulated businesses to help ensure public health and safety.
Who can participate in Mashantucket Pequot-regulated cannabis industry?
The licensees in this industry will be tribal enterprises controlled by the Tribe. Tribal members will not be permitted to operate their own cannabis entities. Prior to a tribal enterprise commencing operation, the tribe’s Compliance Manager will provide notice to the Department of Consumer Protection.
Will cannabis produced and sold through the tribe’s cannabis market meet Connecticut state safety regulations?
Yes. The Tribe will put in place regulations that meet or exceed the state’s standards for safety. Testing standards for cannabis produced and sold by Tribal enterprises must meet or exceed Connecticut state testing standards. The compact allows for some differences in packaging and labeling.
How will tribal cannabis enterprises be licensed?
Licenses will be issued by the Tribe’s Cannabis Regulatory Commission.
Additionally, Tribal enterprises may apply for state licenses to transport cannabis between state licensees and tribal lands, to deliver cannabis from tribal lands to customers outside tribal lands, and to operate a testing laboratory. These licenses will be issued by DCP, and will not be subject to a lottery-system or licensing fees.
Will cannabis produced and sold on tribal land be tracked in a Seed-to-Sale tracking program?
Yes. The tribal regulations will require that tribal enterprises enter all transactions into the state seed-to-sale tracking system.
How will cannabis produced and sold by Tribe-regulated businesses be tested?
All testing will be conducted using a state-licensed testing service. Tribal enterprises may apply for an independent testing laboratory license from DCP and comply with all state regulations related to testing. Testing standards for cannabis produced and sold by Tribal enterprises must meet or exceed Connecticut state testing standards.
How will cannabis produced and sold in the Tribal-regulated industry be taxed?
The Tribe will charge its own taxes at a rate at least as high as the state’s, to prevent a race to the bottom on taxation. Those taxes are not transferred to the state of Connecticut.
Does the State of Connecticut receive any money from the production and sale of cannabis on Tribal lands?
No, the state of Connecticut does not receive any percentage of cannabis sales that occur in the Tribal-regulated industry.
How will cannabis be transported to or from tribal lands?
Tribal enterprises may use a state-licensed tribal transporter or another state-licensed transporter to transport cannabis from state licensees to or from tribal lands.
What if there is a dispute between the state and the tribe about the Compact?
There is a procedure to discuss alleged violations of the compact, including a meet-and-confer and mediation process. There is no appropriate judicial forum to hear litigation between the parties, and so there is no judicial enforcement of the compact. Because both parties are governments, they each have sovereign immunity that allows them to avoid lawsuits and neither party is waving their sovereign immunity.
If adulterated or dangerous cannabis is discovered, whether produced by the tribe or a state licensee, DCP may require the tribe to embargo the affected cannabis.
How will the Tribe prevent sales to minors?
The Tribe must conduct annual “premises checks” and compliance checks for sales to minors on the tribal enterprises and report the results to DCP. DCP can also conduct scheduled and unscheduled “premises checks” on the tribal enterprises.
Can the compact be terminated?
Yes, either party may terminate with 60 days’ notice.