2023 Connecticut General Statutes › Title 21a - Consumer Protection › Chapter 420h - Regulation of Adult-Use Cannabis › Section 21a-420u. - Workforce development plan required for conversion to dispensary facility to hybrid retailer. Equity joint ventures: Application, approval requirements. Fee.

(a) In order for a dispensary facility to convert its license to a hybrid-retailer license, a dispensary facility shall have a workforce development plan that has been approved by the Social Equity Council under section 21a-420d and shall either pay the fee of one million dollars established in section 21a-420e or, if such dispensary facility has committed to create one equity joint venture to be approved by the Social Equity Council for ownership purposes under section 21a-420d and subsequent to obtaining such approval, approved by the department for licensure under this section, pay a reduced fee of five hundred thousand dollars.
(b) Any equity joint venture created under this section shall be created for the development of a cannabis establishment business with a social equity applicant that owns at least fifty per cent of such business and where the dispensary facility owns at most fifty per cent of such business.
(c) An equity joint venture applicant 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 dispensary facility 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 dispensary facility 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 receipt of written approval of the equity joint venture by the Social Equity Council, the dispensary facility 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 and subject to the same fees as required by all other licensees of the same license type.
(e) A dispensary facility, including the backers of such dispensary facility, 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 are retailers or hybrid retailers that share a common dispensary facility or dispensary facility backer owner shall not be located within twenty miles of another commonly owned equity joint venture.
(g) If a dispensary facility has paid the reduced conversion fee in accordance with subsection (a) of this section, and did not subsequently create one equity joint venture under this section, the dispensary facility shall be liable for the full conversion fee of one million dollars, established under section 21a-420e.
(June Sp. Sess. P.A. 21-1, S. 145.)
History: June Sp. Sess. P.A. 21-1 effective July 1, 2021.