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General Assembly Substitute Bill No. 6930
January Session, 2025
AN ACT CONCERNING THE SOCIAL EQUITY COUNCIL'S
RECOMMENDATIONS REGARDING SOCIAL EQUITY PLANS,
STRATEGIC PLANNING, ETHICS, LICENSE RENEWAL FEES AND
FINANCIAL ASSISTANCE APPLICATIONS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 21a-420d of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective from passage): 2
(a) There is established a Social Equity Council, which shall be within 3
the Department of Economic and Community Development for 4
administrative purposes only. 5
(b) The Social Equity Council shall consist of seventeen members as 6
follows: 7
(1) One appointed by the speaker of the House of Representatives, 8
who has a professional background of not less than five years working 9
in the field of either social justice or civil rights; 10
(2) One appointed by the president pro tempore of the Senate, who 11
has a professional background of not less than five years working in the 12
field of either social justice or civil rights; 13
(3) One appointed by the majority leader of the House of 14
Representatives, who has a professional background of not less than five 15 Substitute Bill No. 6930
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years working in the field of economic development to help minority-16
owned businesses; 17
(4) One appointed by the majority leader of the Senate, who has a 18
professional background of not less than five years in providing access 19
to capital to minorities, as defined in section 32-9n; 20
(5) One appointed by the minority leader of the House of 21
Representatives, who is from a community that has been 22
disproportionately harmed by cannabis prohibition and enforcement; 23
(6) One appointed by the minority leader of the Senate, who has a 24
professional background of not less than five years in providing access 25
to capital to minorities, as defined in section 32-9n; 26
(7) Two appointed by the chairperson of the Black and Puerto Rican 27
Caucus of the General Assembly, one of whom shall be designated by 28
the chairperson of the Black Caucus of the General Assembly and one of 29
whom shall be designated by the chairperson of the Puerto Rican and 30
Latino Caucus of the General Assembly; 31
(8) Five appointed by the Governor, one who is from a community 32
that has been disproportionately harmed by cannabis prohibition and 33
enforcement, one who has a professional background of not less than 34
five years working in the field of economic development and one who 35
is an executive branch official focused on workforce development; 36
(9) The Commissioner of Consumer Protection, or the commissioner's 37
designee; 38
(10) The Commissioner of Economic and Community Development, 39
or the commissioner's designee; 40
(11) The State Treasurer, or the State Treasurer's designee; and 41
(12) The Secretary of the Office of Policy and Management, or the 42
secretary's designee. 43 Substitute Bill No. 6930
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(c) (1) In making the appointments in subsection (b) of this section, 44
the appointing authority shall use best efforts to make appointments 45
that reflect the racial, gender and geographic diversity of the population 46
of the state. 47
(2) Members appointed by the Governor shall serve a term of four 48
years from the time of appointment and members appointed by any 49
other appointing authority shall serve a term of three years from the 50
time of appointment. The appointing authority shall fill any vacancy for 51
the unexpired term. 52
(3) (A) The Governor shall appoint an interim executive director to 53
operationalize and support the Social Equity Council until, 54
notwithstanding the provisions of section 4-9a, the council appoints an 55
executive director. Subject to the provisions of chapter 67, and within 56
available appropriations, the council may thereafter appoint an 57
executive director and such other employees as may be necessary for the 58
discharge of the duties of the council. 59
(B) Not later than July 1, 2024, the council shall adopt bylaws 60
specifying which duties are retained by the members of the council and 61
which duties are delegated to the executive director. 62
(C) The council may, by a simple majority vote of the members of the 63
council, take any formal personnel action concerning the executive 64
director for any reason. 65
(D) In addition to the council's authority under subparagraph (C) of 66
this subdivision, if a final review board consisting of the chairperson 67
and the members of the council appointed under subdivisions (1), (2), 68
(5) and (6) of subsection (b) of this section determines, by a simple 69
majority vote of the members of the final review board, that removing 70
the executive director is in the best interest of serving the council's 71
mission, such final review board shall issue a letter to the council 72
recommending that the council remove the executive director. 73
(4) The Governor shall appoint the chairperson of the council from 74 Substitute Bill No. 6930
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among the members of the council. The chairperson shall directly 75
supervise, establish annual goals for and conduct an annual 76
performance review of the executive director. 77
(5) The chairperson and executive director shall jointly develop, and 78
the council shall review and approve, (A) the budgetary information 79
that the council is required to annually submit to the Secretary of the 80
Office of Policy and Management pursuant to subdivision (2) of 81
subsection (c) of section 21a-420f, (B) allocations of moneys in the social 82
equity and innovation account, established under section 21a-420f, that 83
the council determines, under subparagraph (B) of subdivision (1) of 84
subsection (b) of section 21a-420f, further the principles of equity, [as 85
defined in section 21a-420,] and (C) any plans for expenditures to 86
provide (i) access to capital for businesses, (ii) technical assistance for 87
the start-up and operation of a business, (iii) funding for workforce 88
education, (iv) funding for community investments, and (v) funding for 89
investments in disproportionately impacted areas. 90
(d) A majority of the members of the Social Equity Council shall 91
constitute a quorum for the transaction of any business. The members 92
of the council shall serve without compensation, but shall, within 93
available appropriations, be reimbursed for expenses necessarily 94
incurred in the performance of their duties. Any member who fails to 95
attend three consecutive meetings held after May 24, 2022, or who fails 96
to attend fifty per cent of all meetings held during any calendar year 97
beginning on or after January 1, 2023, shall be deemed to have resigned 98
from office. The appointing authority shall fill the vacancy for the 99
unexpired term of any member who is deemed to have resigned from 100
office under this subsection, and shall use best efforts to ensure such 101
appointment reflects the racial, gender and geographic diversity of the 102
population of the state. 103
(e) The Social Equity Council may (1) request, and shall receive, from 104
any state agency such information and assistance as the council may 105
require, (2) use such funds as may be available from federal, state or 106
other sources and may enter into contracts to carry out the purposes of 107 Substitute Bill No. 6930
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the council, including, but not limited to, contracts or agreements with 108
Connecticut Innovations, Incorporated, constituent units of the state 109
system of higher education, regional workforce development boards 110
and community development financial institutions, (3) utilize voluntary 111
and uncompensated services of private individuals, state or federal 112
agencies and organizations as may, from time to time, be offered and 113
needed, (4) accept any gift, donation or bequest for the purpose of 114
performing the duties of the council, (5) hold public hearings, (6) 115
establish such standing committees, as necessary, to perform the duties 116
of the council, and (7) adopt regulations, in accordance with chapter 54, 117
as the council may deem necessary to carry out the duties of the council. 118
(f) The Social Equity Council shall promote and encourage full 119
participation in the cannabis industry by persons from communities 120
that have been disproportionately harmed by cannabis prohibition and 121
enforcement. 122
(g) Not later than forty-five days after June 22, 2021, or at a later date 123
determined by the Social Equity Council, the council shall establish 124
criteria for proposals to conduct a study under this section and the 125
Secretary of the Office of Policy and Management shall post on the State 126
Contracting Portal a request for proposals to conduct a study, and shall 127
select an independent third party to conduct such study and provide 128
detailed findings of fact regarding the following matters in the state or 129
other matters determined by the council: 130
(1) Historical and present-day social, economic and familial 131
consequences of cannabis prohibition, the criminalization and 132
stigmatization of cannabis use and related public policies; 133
(2) Historical and present-day structures, patterns, causes and 134
consequences of intentional and unintentional racial discrimination and 135
racial disparities in the development, application and enforcement of 136
cannabis prohibition and related public policies; 137
(3) Foreseeable long-term social, economic and familial consequences 138
of unremedied past racial discrimination and disparities arising from 139 Substitute Bill No. 6930
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past and continued cannabis prohibition, stigmatization and 140
criminalization; 141
(4) Existing patterns of racial discrimination and racial disparities in 142
access to entrepreneurship, employment and other economic benefits 143
arising in the lawful palliative use cannabis sector as established 144
pursuant to chapter 420f; and 145
(5) Any other matters that the council deems relevant and feasible for 146
study for the purpose of making reasonable and practical 147
recommendations for the establishment of an equitable and lawful 148
adult-use cannabis business sector in this state. 149
(h) Not later than January 1, 2022, the Social Equity Council shall, 150
taking into account the results of the study conducted in accordance 151
with subsection (g) of this section, make written recommendations, in 152
accordance with the provisions of section 11-4a, to the Governor and the 153
joint standing committees of the General Assembly having cognizance 154
of matters relating to finance, revenue and bonding, consumer 155
protection and the judiciary regarding legislation to implement the 156
provisions of this section. The council shall make recommendations 157
regarding: 158
(1) Creating programs to ensure that individuals from communities 159
that have been disproportionately harmed by cannabis prohibition and 160
enforcement are provided equal access to licenses for cannabis 161
establishments; 162
(2) Specifying additional qualifications for social equity applicants; 163
(3) Providing for expedited or priority license processing for each 164
license as a retailer, hybrid retailer, cultivator, micro-cultivator, product 165
manufacturer, food and beverage manufacturer, product packager, 166
transporter and delivery service license for social equity applicants; 167
(4) Establishing minimum criteria for any cannabis establishment 168
licensed on or after January 1, 2022, that is not owned by a social equity 169 Substitute Bill No. 6930
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applicant, to comply with an approved workforce development plan to 170
reinvest or provide employment and training opportunities for 171
individuals in disproportionately impacted areas; 172
(5) Establishing criteria for a social equity plan for any cannabis 173
establishment licensed on or after January 1, 2022, to further the 174
principles of equity; [, as defined in section 21a-420;] 175
(6) Recruiting individuals from communities that have been 176
disproportionately harmed by cannabis prohibition and enforcement to 177
enroll in the workforce training program established pursuant to section 178
21a-421g; 179
(7) Potential uses for revenue generated under RERACA to further 180
equity; 181
(8) Encouraging participation of investors, cannabis establishments, 182
and entrepreneurs in the cannabis business accelerator program 183
established pursuant to section 21a-421f; 184
(9) Establishing a process to best ensure that social equity applicants 185
have access to the capital and training needed to own and operate a 186
cannabis establishment; and 187
(10) Developing a vendor list of women-owned and minority-owned 188
businesses that cannabis establishments may contract with for necessary 189
services, including, but not limited to, office supplies, information 190
technology infrastructure and cleaning services. 191
(i) (1) Not later than August 1, 2021, and annually thereafter until July 192
31, 2023, the Social Equity Council shall use the most recent five-year 193
United States Census Bureau American Community Survey estimates 194
or any successor data to determine one or more United States census 195
tracts in the state that are a disproportionately impacted area and shall 196
publish a list of such tracts on the council's Internet web site. 197
(2) Not later than August 1, 2023, the council shall use poverty rate 198
data from the most recent five-year United States Census Bureau 199 Substitute Bill No. 6930
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American Community Survey estimates, population data from the most 200
recent decennial census and conviction information from databases 201
managed by the Department of Emergency Services and Public 202
Protection to identify all United States census tracts in the state that are 203
disproportionately impacted areas and shall publish a list of such tracts 204
on the council's Internet web site. In identifying which census tracts in 205
this state are disproportionately impacted areas and preparing such list, 206
the council shall: 207
(A) Not deem any census tract with a poverty rate that is less than the 208
state-wide poverty rate to be a disproportionately impacted area; 209
(B) After eliminating the census tracts described in subparagraph (A) 210
of this subdivision, rank the remaining census tracts in order from the 211
census tract with the greatest historical conviction rate for drug-related 212
offenses to the census tract with the lowest historical conviction rate for 213
drug-related offenses; and 214
(C) Include census tracts in the order of rank described in 215
subparagraph (B) of this subdivision until including the next census 216
tract would cause the total population of all included census tracts to 217
exceed twenty-five per cent of the state's population. 218
(j) After developing criteria for workforce development plans as 219
described in subdivision (4) of subsection (h) of this section, the Social 220
Equity Council shall review and approve or deny in writing any such 221
plan submitted by a producer under section 21a-420l or a hybrid-retailer 222
under section 21a-420u. 223
(k) The Social Equity Council shall develop criteria for evaluating the 224
ownership and control of any equity joint venture created under section 225
21a-420m, 21a-420u, 21a-420j or 21a-420aa and shall review and approve 226
or deny in writing such equity joint venture prior to such equity joint 227
venture being licensed under section 21a-420m, 21a-420u, 21a-420j or 228
21a-420aa. The council shall not approve any equity joint venture 229
applicant which shares with an equity joint venture any individual 230
owner who meets the criteria established in subparagraphs (A) and (B) 231 Substitute Bill No. 6930
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of subdivision (51) of section 21a-420, other than an individual owner in 232
their capacity as a backer licensed under section 21a-420o. 233
(l) The Social Equity Council shall, upon receipt of funds from 234
producers in accordance with subdivision (5) of subsection (b) of section 235
21a-420l, develop a program to assist social equity applicants to open 236
not more than two micro-cultivator establishment businesses in total. 237
Producers shall provide mentorship to such social equity applicants. 238
The council shall, with the department, determine a system to select 239
social equity applicants to participate in such program without 240
participating in a lottery or request for proposals. 241
(m) (1) The Social Equity Council shall review and either approve or 242
deny, in writing, any social equity plan submitted by a cannabis 243
establishment as part of the cannabis establishment's final license 244
application. The council shall approve or deny such social equity plan 245
not later than thirty days after such social equity plan is submitted to 246
the council. If the council denies any such social equity plan, the 247
applicant may revise and resubmit such social equity plan without 248
prejudice. 249
(2) (A) Each licensed cannabis establishment shall (i) maintain an 250
active social equity plan at all times while such cannabis establishment 251
is in operation, and (ii) not later than March 1, 2026, and annually 252
thereafter, submit to the council a report disclosing the impact such 253
social equity plan had on the disproportionately impacted area in which 254
such cannabis establishment is located during the preceding calendar 255
year. 256
(B) The council shall review each report submitted pursuant to 257
subparagraph (A)(ii) of this subdivision and may, not later than sixty 258
days after completing such review, request that the licensed cannabis 259
establishment that submitted such report revise such cannabis 260
establishment's social equity plan to ensure that such social equity plan 261
furthers the principles of equity. 262
[(2)] (3) Not later than July 1, 2024, the council shall update the criteria 263 Substitute Bill No. 6930
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for social equity plans described in subdivision (5) of subsection (h) of 264
this section to include a specific, points-based rubric to evaluate social 265
equity plans. 266
(n) The Social Equity Council shall approve the amounts, grantees 267
and purposes of any grants made by the council from the social equity 268
and innovation account or the Cannabis Social Equity and Innovation 269
Fund, established under section 21a-420f, and any contract executed by 270
and between the council and a grant maker shall require that the 271
amounts, grantees and purposes of any subgrants made by such grant 272
maker shall be approved by the council. 273
(o) Not later than July 1, 2024, and quarterly thereafter, the Social 274
Equity Council shall prepare and submit a report, in accordance with 275
the provisions of section 11-4a, to the Governor, the speaker of the 276
House of Representatives, the president pro tempore of the Senate, the 277
majority leader of the House of Representatives, the majority leader of 278
the Senate, the minority leader of the House of Representatives, the 279
minority leader of the Senate and the joint standing committees of the 280
General Assembly having cognizance of matters relating to 281
appropriations and consumer protection. The report shall include, but 282
need not be limited to: 283
(1) The fiscal-year-to-date expenditures of the council, which 284
expenditures shall disclose, at a minimum: (A) All expenditures made 285
for personal services and the fringe benefit costs associated therewith; 286
(B) all expenditures made for consultants retained for the purpose of 287
reviewing applications for social equity applicant status; (C) all 288
expenditures made to provide businesses with access to capital and the 289
number of businesses that received access to such capital; (D) all 290
expenditures made to provide technical assistance for the start-up and 291
operation of businesses and the number of businesses that received such 292
assistance; (E) all expenditures made to fund workforce education, the 293
number of persons served by the workforce education programs 294
supported by such expenditures and the number of persons successfully 295
placed in relevant professional roles after completing such workforce 296 Substitute Bill No. 6930
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education programs; (F) all expenditures made to fund community 297
investment grants, the amounts, grantees and purposes of such grants 298
and, if any of such grants were made to a grant maker, the amounts, 299
grantees and purposes of any subgrants made by such grant maker; (G) 300
all expenditures made for promotional or branding items and which 301
promotional or branding items were purchased; (H) all expenditures 302
made for advertising or marketing campaigns; (I) all expenditures made 303
to advertising or marketing firms; (J) all expenditures made for 304
sponsorships; (K) all expenditures made for other community outreach; 305
(L) all expenditures made for travel; and (M) all other expenditures not 306
described in subparagraphs (A) to (L), inclusive, of this subdivision; and 307
(2) The status of the council's performance of the council's 308
responsibilities in the licensing process under RERACA, including, but 309
not limited to: (A) The number of applications for social equity applicant 310
status, social equity plans and workforce development plans pending 311
before the council, categorized into the number of applications, social 312
equity plans and workforce development plans pending before the 313
council for (i) less than thirty days, (ii) at least thirty days but less than 314
sixty days, (iii) at least sixty days but less than ninety days, and (iv) at 315
least ninety days; (B) the number of applications for social equity 316
applicant status, social equity plans and workforce development plans 317
approved during the then current fiscal year, broken down by license 318
type; and (C) the number of applications for social equity applicant 319
status, social equity plans and workforce development plans denied 320
during the then current fiscal year, broken down by license type. 321
(p) Not later than July 1, 2024, and monthly thereafter, the executive 322
director of the council shall prepare and submit a report, in accordance 323
with the provisions of section 11-4a, to the council and the Black and 324
Puerto Rican Caucus of the General Assembly. The report shall include, 325
but need not be limited to: 326
(1) The expenditures the council plans to make during the month 327
immediately following submission of such report, which expenditures 328
shall disclose, at a minimum: (A) All expenditures the council plans to 329 Substitute Bill No. 6930
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make for consultants retained for the purpose of reviewing applications 330
for social equity applicant status; (B) all expenditures the council plans 331
to make to fund community investment grants, the amounts, grantees 332
and purposes of such grants and, if any of such grants are to be made to 333
a grant maker, the amounts, grantees and purposes of any subgrants to 334
be made by such grant maker; (C) all expenditures the council plans to 335
make for promotional or branding items, for advertising or marketing 336
campaigns, to advertising or marketing firms and for sponsorships; (D) 337
all expenditures the council plans to make for community outreach; and 338
(E) all expenditures the council plans to make for travel; and 339
(2) The status of the council's performance of the council's 340
responsibilities in the licensing process under RERACA, including, but 341
not limited to, the following information for the date of such report: (A) 342
The number of applications for social equity applicant status that are 343
pending before the council and the date each such application was 344
submitted, broken down by license type, municipality, assembly district 345
and senate district; (B) the number of social equity plans that are 346
pending before the council and the date each such social equity plan was 347
submitted, broken down by license type; and (C) the number of 348
workforce development plans that are pending before the council and 349
the date each such workforce development plan was submitted, broken 350
down by license type. 351
(q) Not later than October 1, 2025, the council shall develop and 352
submit a strategic plan to the Governor and the joint standing 353
committees of the General Assembly having cognizance of matters 354
relating to appropriations and consumer protection. The strategic plan 355
shall include a framework that outlines the council's goals, planned 356
actions and priorities for the three-year period beginning October 1, 357
2025, and ending September 30, 2028. 358
(r) Not later than October 1, 2025, the council shall develop and adopt 359
an ethical code of conduct for council members and staff. 360
(s) Not later than January 1, 2026, and annually thereafter, the 361 Substitute Bill No. 6930
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members of the council and council staff shall complete an ethics 362
training course focusing on disproportionately impacted areas and the 363
cannabis industry. 364
Sec. 2. Section 21a-420h of the general statutes is repealed and the 365
following is substituted in lieu thereof (Effective from passage): 366
The Social Equity Council shall adopt regulations, in accordance with 367
the provisions of chapter 54, to prevent the sale or change in ownership 368
or control of a cannabis establishment license awarded to a social equity 369
applicant to someone other than another qualifying social equity 370
applicant during the period of provisional licensure, and for three years 371
following the issuance of a final license, unless the backer of such 372
licensee has died or has a condition, including, but not limited to, a 373
physical illness or loss of skill or deterioration due to the aging process, 374
emotional disorder or mental illness that would interfere with the 375
backer's ability to operate. If the council approves any sale or change in 376
ownership or control of a cannabis establishment license awarded to a 377
social equity applicant during the three-year period following issuance 378
of a final license, and such sale or change in ownership or control is 379
made to anyone other than another qualifying social equity applicant, 380
the cannabis establishment licensee shall be treated as a cannabis 381
establishment licensee without social equity status beginning on the 382
date of such approval and such cannabis licensee shall no longer be 383
eligible to pay a reduced license renewal fee. Notwithstanding the 384
requirements of sections 4-168 to 4-172, inclusive, in order to effectuate 385
this section, prior to adopting such regulations and not later than 386
October 1, 2021, the council shall issue policies and procedures to 387
implement the provisions of this section that shall have the force and 388
effect of law. The council shall post all policies and procedures on its 389
Internet web site and submit such policies and procedures to the 390
Secretary of the State for posting on the eRegulations System, at least 391
fifteen days prior to the effective date of any policy or procedure. Any 392
such policy or procedure shall no longer be effective upon the earlier of 393
either the adoption of the policy or procedure as a final regulation under 394
section 4-172 or forty-eight months from July 1, 2021, if such regulations 395 Substitute Bill No. 6930
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have not been submitted to the legislative regulation review committee 396
for consideration under section 4-170. Any violation of such policies and 397
procedures or any violation of such regulations related to the sale or 398
change in ownership may be referred by the Social Equity Council to the 399
department for administrative enforcement action, which may result in 400
a fine of not more than ten million dollars or action against the 401
establishment's license. 402
Sec. 3. Section 21a-421i of the general statutes is repealed and the 403
following is substituted in lieu thereof (Effective from passage): 404
[(a) As used in this section, "Social Equity Council", "cannabis 405
establishment" and "social equity applicant" have the same meanings as 406
provided in section 21a-420.] 407
[(b)] (a) (1) The Department of Economic and Community 408
Development and the Social Equity Council shall jointly develop and 409
establish: 410
(A) A revolving loan program for the purposes of subdivision (1) of 411
subsection (b) of section 21a-421h, including (i) requirements for loan 412
eligibility under the program, (ii) an application form and the 413
information and documentation required to be submitted with such 414
application, (iii) the terms of the loans to be offered, including the rates 415
of interest to be charged and the length of the loans, (iv) a plan for 416
publicizing and marketing the program, and (v) any other requirements 417
necessary to implement the program; and 418
(B) Application forms, applicant requirements and any other 419
provisions the department and the council deem necessary for the 420
purposes of subdivisions (2) to (4), inclusive, of subsection (b) of section 421
21a-421h. 422
(2) The department and the council shall post on the Internet web 423
sites of the Department of Economic and Community Development and 424
the Department of Consumer Protection information concerning the 425
loan program and other available funding under this section. 426 Substitute Bill No. 6930
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(b) (1) The Department of Economic and Community Development 427
and the Social Equity Council shall approve or deny an application 428
described in subdivision (1) of subsection (a) of this section not later 429
than one hundred twenty days after the department and the council 430
receive a completed application form and all information and 431
documentation required to be submitted with such application form. 432
(2) If the department and the council deny an application as set forth 433
in subdivision (1) of this subsection, the applicant may reapply without 434
prejudice by submitting a new application as set forth in subdivision (1) 435
of subsection (a) of this section. 436
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 21a-420d
Sec. 2 from passage 21a-420h
Sec. 3 from passage 21a-421i
Statement of Legislative Commissioners:
In Section 1(c)(5)(B), "as defined in section 21a-420," was bracketed for
consistency; in Section 1(h)(5), "equity, as defined in section 21a-420;"
was changed to "equity; [as defined in section 21a-420;]" for consistency;
and in Section 1(q), "ending on September" was changed to "ending
September" for consistency.
GL Joint Favorable Subst. -LCO