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OLR Bill Analysis
sHB 6930
AN ACT CONCERNING THE SOCIAL EQUITY COUNCIL'S
RECOMMENDATIONS REGARDING SOCIAL EQUITY PLANS,
STRATEGIC PLANNING, ETHICS, LICENSE RENEWAL FEES AND
FINANCIAL ASSISTANCE APPLICATIONS.
SUMMARY
This bill requires each cannabis establishment to maintain an active
social equity plan and submit an annual report on the plan to the Social
Equity Council for review. It also requires the council to (1) develop a
three-year strategic plan outlining its goals, planned actions, and
priorities for the period, and (2) adopt a code of ethics and require its
staff to complete an annual ethics training course.
By law, certain social equity applicants pay 50% of the renewal fees
of other cannabis establishments for the first three renewal cycles.
Under the bill, a cannabis establishment licensee is not entitled to pay a
reduced license renewal fee if (1) the business is sold or ownership
changes during the three years after a final license is issued, and (2) the
sale or change is made to anyone other than a social equity applicant.
Finally, the bill sets a 120-day deadline for the Department of
Economic and Community Development (DECD) and the council to
approve or deny an application for financial assistance for certain low-
interest loans to social equity applicants under the Canna-Business
Revolving Loan Fund.
EFFECTIVE DATE: Upon passage
§ 1 — ACTIVE SOCIAL EQUITY PLANS
The bill requires each licensed cannabis establishment to (1) maintain
an active social equity plan while the establishment is in operation and
(2) starting by March 1, 2026, annually submit to the Social Equity
Council a report on the plan’s impact during the prior year on the 2025HB-06930-R000592-BA.DOCX
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disproportionately impacted area where the establishment is located.
By law, all cannabis establishments seeking to apply for a final license
must submit a social equity plan to the council for review and approval.
Generally, a cannabis establishment’s social equity plan must address
social, economic, and cultural needs in locations identified as being
disproportionally impacted by drug laws.
Under the bill, the council must review each submitted report and
may, within 60 days of completing the review, request that an
establishment revise its social equity plan to ensure that the plan
furthers the principles of equity.
By law, a “cannabis establishment” is a cannabis producer,
dispensary facility, cultivator, micro-cultivator, retailer, hybrid retailer
(one licensed to sell both recreational cannabis and medical marijuana),
food and beverage manufacturer, product manufacturer or packager,
delivery service, or transporter.
§ 1 — STRATEGIC PLAN AND ETHICAL CODE OF CONDUCT
The bill requires the Social Equity Council, by October 1, 2025, to
develop and submit a strategic plan to the governor and the
Appropriations and General Law committees. The plan must include a
framework that outlines the council’s goals, planned actions, and
priorities for the three-year period from October 1, 2025, through
September 30, 2028.
The bill also requires the council, by October 1, 2025, to develop and
adopt an ethical code of conduct for council members and staff. Starting
by January 1, 2026, the council members and staff must annually
complete an ethics training course on disproportionately impacted areas
and the cannabis industry.
§ 2 — SALE OR CHANGE IN OW NERSHIP
Existing law requires the Social Equity Council to adopt regulations
to prevent a cannabis establishment license awarded to a social equity
applicant from being sold to someone other than another social equity
applicant during the provisional licensure period and for three years 2025HB-06930-R000592-BA.DOCX
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after final licensure, except where the backer has died or has a condition
(e.g., a physical or mental illness) that would interfere with the backer’s
ability to operate.
Under the bill, if the council approves any sale or change of
ownership or control of a license awarded to a social equity applicant
during the three years following a final license issuance, and the sale or
change in ownership or control is to someone other than a social equity
applicant, then the licensee must be treated like one without social
equity status starting on the approval date. The new licensee is no longer
eligible to pay reduced license renewal fees.
§ 3 — CANNA-BUSINESS REVOLVING LOAN FUND
Existing law requires DECD and the council to jointly establish a
revolving loan program to provide, among other things, low-interest
loans to social equity applicants, municipalities, or nonprofits to
rehabilitate, renovate, or develop unused or underused real property for
use as a cannabis establishment.
The bill requires DECD and the council to approve or deny a
completed application within 120 days after receiving the application
with all the required information and documentation. If DECD and the
council deny an application, the applicant may reapply without
prejudice and may submit a new application.
BACKGROUND
Social Equity Council
By law, the Social Equity Council is charged with, among other
duties, promoting and encouraging full participation in the cannabis
industry by people from communities disproportionately harmed by
cannabis prohibition.
Related Bill
sHB 7178, favorably reported by the General Law Committee, among
other things, allows certain cannabis establishments backers to increase
their ownership in an equity joint venture to more than 50% if at least
three years have passed and with the Social Equity Council’s approval. 2025HB-06930-R000592-BA.DOCX
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COMMITTEE ACTION
General Law Committee
Joint Favorable
Yea 21 Nay 0 (03/21/2025)