Connecticut General Statutes
Chapter 420h - Regulation of Adult-Use Cannabis
Section 21a-420m. - Creation of equity joint ventures by producer. Requirements. Fee.

(a) In order to pay a reduced license expansion authorization fee as described in subsection (b) of section 21a-420l, a producer shall commit to create two equity joint ventures to be approved by the Social Equity Council under section 21a-420d and licensed by the department under this section.

(b) The equity joint venture shall be in any cannabis establishment licensed business, other than a cultivator license, provided the social equity applicant shall own at least fifty per cent of such business.
(c) The producer or social equity applicant of an equity joint venture shall submit an application to the Social Equity Council that may include, but need not be limited to, evidence of business formation, ownership allocation, terms of ownership and financing and proof of social equity applicant involvement. The producer or social equity applicant of an equity joint venture shall submit to the Social Equity Council information including, but not limited to, the organizing documents of the entity that outline the ownership stake of each backer, initial backer investment and payout information to enable the council to determine the terms of ownership.
(d) Upon obtaining the written approval of the Social Equity Council for an equity joint venture, the producer or social equity applicant of the equity joint venture shall apply for a license from the department in the same form as required by all other licensees of the same license type, except that such application shall not be subject to the lottery.
(e) A producer, including the backer of such producer, shall not increase its ownership in an equity joint venture in excess of fifty per cent during the seven-year period after a license is issued by the department under this section.
(f) Equity joint ventures that share a common producer or producer backer and that are retailers or hybrid retailers shall not be located within twenty miles of another commonly owned equity joint venture.
(g) If a producer had paid a reduced conversion fee as described in subsection (b) of section 21a-420l, and subsequently did not create two equity joint ventures under this section, the producer shall be liable for the full conversion fee of three million dollars.
(June Sp. Sess. P.A. 21-1, S. 27.)
History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.

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